Page 12 - Bullion World Volume 3 Issue 10 October 2023

Bullion World | Volume 3 | Issue 10 | October 2023

Commitment to Responsible Mining,

Artisanal and Small-Scale Mining,

and Responsible Sourcing

Responsible sourcing is a theme of general relevance and impacts all of us, in every decision we make.
Precious metals, and particularly gold as one of the “conflict minerals”, is in demand of a thorough and tailor-made
enhanced due diligence, depending on its origin.

Implementing responsible sourcing may be difficult at times. Valcambi has continuously redefined and refined its criteria
and improved accessories and aids to assess compliant sourcing of precious metals of all origins.

Before engaging in a value chain, we assess the risks. We have ensured a systematic and repeatable approach with our
co-developed software tool Risk Management Application (RMA), which calculates the risk level of each value chain,
based on all the most up-to-date available verified data. New or other required data from recommended and recognised
data sources can be added at any time.

Upon the assessment of the overall risk level and the residual risks, we decide whether we will proceed with the value
chain or not. High-risk value chains are only pursued and opened if we have effective instruments to mitigate and
control the risks.

VGG Kilobar ASM Kilobar RECYCLED Kilobar

The value chain of mined Mined gold from Artisanal Fingerprinting of recycled gold is a difficult task. The
gold from a Large-Scale and Small-Scale Mines responsible sourcing practice of the intermediate
Mine is relatively easy to (ASMs) requires enhanced refineries is the key, but often not deemed to be sufficient.
control. Already in 2014, due diligence (EDD).
we created a method to The fingerprint will not For this reason, Valcambi asked since 2014 for a
analyse the fingerprint help to differentiate doré Statement of Conformance (SOC) to be issued by the
of the doré. For clients from two neighbouring intermediate refinery, in which they declare the origin
requiring a full metal small mines in the same of the gold used for their bars. A SOC is also able to fill
segregation, Valcambi country. To ensure the the gap between the Responsible Sourcing Guidelines
Green Gold is the perfect proper understanding of requirements and the OECD
product. Established all inherent risks, sourcing guidance. We also co-developed a
in 2008, there is no from ASMs requires software tool Secured Data Storage
commingling of gold, it is constant periodical visits (SDS), which ensures that the same
100% traceable from the to mine sites and the level of due diligence is adopted
origin to the bar, and it is surrounding areas. throughout the entire value chain. All
certified by a third-party data are regularly audited and must
audit. conform with the latest requirements
of the different regulators. The SDS
protects all commercially sensitive
information.

For several years, this holistic
approach, has enabled us to source
responsibly and to verify the origin of precious metals
exceeding the minimum requirements of the standards.

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