Page 30 - Bullion World Volume 4 Issue 7 January 2024
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Bullion World | Volume 4 | Issue 7 | July 2024
London Principles on Central Bank
Artisanal Small-scale Gold Mining
Domestic Purchase Programmes
Participating central banks affirm the following
operating Principles to guide this initiative:
1. Legal frameworks, resourcing and
transparency: Creating the infrastructure for a
successful ASGM DPP provides an opportunity for
central banks, and relevant government agencies,
to work together in increasing the formalisation
of responsible ASGM entities. It is essential that
programmes are based on appropriate legal and
London Principles on Central Bank Artisanal
Small-scale Gold Mining Domestic Purchase regulatory powers, adequate resourcing and strong
Programmes coordination between national and sub-national
governmental agencies. The operation of DPPs
Central bank purchases of gold produced by should be included in central bank public reporting
domestic artisanal and small-scale gold miners and opportunities considered for cooperation with
(ASGM) in local currency can be a cost-effective
means of building gold reserves or of acquiring national Extractive Industries Transparency Initiative
gold for subsequent sale in foreign currency on processes directed at building public understanding
international markets. These Domestic Purchase and accountability.
Programmes (DPPs) may contribute to financial
resilience and stability. 2. Community wellbeing: DPPs should seek to
raise mine health and safety standards and protect
ASGM is an important source of livelihood in
many gold-producing countries. But, while some miners, their families and communities from abusive
estimates suggest that 15 million people make labour practices including child labour and forced
their living from ASGM, the environmental, labour.
social and governance (ESG) as well as gender-
related practices widespread in this sector risk 3. Mercury reduction: ASGM is the principal source
perpetuating poverty. Progress in formalisation, of anthropogenic mercury pollution with grave
which is key to addressing such practices, has implications for water, soil and air pollution and
been limited.
human health. DPPs should complement Minamata
The participants in this initiative believe that Treaty National Action Plans, support a reduction in
well-structured ASGM DPPs have the potential to mercury use and seek to promote the adoption of
contribute to sustainable development, provide alternative, environmentally responsible technologies
a new impetus to formalisation and to raising for use in ASGM.
ESG standards. The aim of this initiative will be
to benefit the livelihoods of responsible small-
scale miners, the regulation of the sector and the 4. Due diligence: DPPs should conform with the
integrity of the gold market. framework provided by these Principles and reflect
risk-based, international due diligence standards[1],
The inaugural signatories are Banco de la designed to prevent the production of, and trade in,
República (Colombia), Banco Central del gold from fuelling conflict, funding organised crime
Ecuador, Bank of Mongolia, and Bangko Sentral or causing abuses of human rights. Due diligence
ng Pilipinas.
should also cover environmental risks.
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