Page 31 - Bullion World Volume 4 Issue 7 January 2024
P. 31

Bullion World | Volume 4 | Issue 7 | July 2024


           5.  Progressive improvement: Considering the          for example, through licensed aggregators) is
              complex nature and characteristics of informal     accessible to those responsible ASGM actors who
              ASGM entities, DPPs should seek to establish       wish to participate.
              procedures which support progressive and
              constructive engagement with those miners who act
              responsibly and, in good faith, seek formalisation.   10. Access to ‘clean’ finance: Central banks with
              DPPs should seek to give a voice to legitimate     regulatory powers over the commercial banking
              ASGM actors and their representatives.             system should consider using it, or work with
                                                                 relevant regulatory agencies, to facilitate access
           6.  Formalisation: Formalisation should benefit       to banking services and investment capital by
              responsible ASGM actors through providing          responsible ASGM actors whilst guarding against
              greater security of tenure, and improved access to   money laundering.
              capital for investment in their operations. For public
              authorities, formalisation creates opportunities to   11. Refining purchased gold: Domestically-produced
              improve environmental performance, to combat       gold purchased in local currency from ASGM
              the loss of public revenues inherent in illegal mining   can strengthen confidence, financial stability and
              and illicit financial flows, and to combat corruption.   economic resilience. Gold purchased from DPPs
              For supply chain participants, formalisation makes   must be refined at LBMA Good Delivery List
              it easier to establish provenance, to bolster the   refineries.
              integrity of the gold market and to enhance end-user
              confidence.                                     12. International cooperation: Since ASGM
                                                                 production is susceptible to smuggling and misuse
           7.  Incentives: It is important to ensure that DPPs are   in money laundering, central bank DPPs may be
              based on realistic economic incentives, including   bolstered by cooperation with appropriate regulatory,
              in relation to the prices offered to attract the   fiscal and law enforcement agencies in neighbouring
              sale of material and the applicable fiscal regime.   countries and with international law enforcement
              Formalisation may involve additional costs and     agencies.
              responsibilities for ASGM producers. It is, therefore,
              important, to consider, in cooperation with fiscal
              authorities and other government agencies, the
              balancing potential of capacity-building measures
              and of access to more efficient infrastructure and
              processing technologies.

           8.  Rule of law: ASGM DPPs should aim to strengthen
              the rule of law and to promote accountability and
              appropriate transparency. Such programmes
              depend upon the provision of adequate security
              for producers and those involved in the purchase
              infrastructure. Observance of relevant human
              rights conventions is of fundamental importance in
              securing public confidence and the cooperation of
              ASGM entities.


           9.  Accessibility: Accessibility is fundamental to the
              success of ASGM DPPs. This includes facilitating
              responsible ASGM groups to fulfil relevant permitting
              and regulatory requirements. It also applies to
              ensuring that  the purchasing infrastructure  put
              in place (whether this be directly operated or,





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