Page 19 - Bullion World Volume 4 Issue 10 October 2024

Bullion World | Volume 4 | Issue 10 | October 2024

"Revitalizing

Artisanal Gold Mining:

Global Efforts and Challenges"

Mr Luca Maiotti
Policy Analyst, Extractive Sector, OECD Centre for Responsible Business Conduct

There seems to be a renewed energy around
artisanal and small-scale gold mining (ASGM).
Following the recommendations of a feasibility study
undertaken in 2022, the London Bullion Market
Association launched an initiative to increase
ASGM material as a share of members’ sourcing.
In 2024, a group of central banks with domestic
ASGM buying programmes convened by the World
Gold Council signed the London Principles, with
the central banks of Colombia, Ecuador, Mongolia
and the Philippines as inaugural signatories.
National multi-stakeholder groups of the Extractive
Industries Transparency Initiative (EITI) have also
begun using a Guidance Note co-developed with
the OECD to include ASGM in their reporting (e.g.
in Ghana, the DRC and Burkina Faso).

Unfortunately, this energy has not yet
translated into tangible results. ASGM continues
to suffer from informality, lack of access to finance, Mr Luca Maiotti
inadequate infrastructure - resulting in health and
safety issues, insecurity, and environmental harms
for both miners and communities. Existing efforts to
address ASGM issues have traditionally consisted When it comes to due diligence on these upstream
of ad hoc formalisation projects, closed-pipe offtake actors, companies are expected to implement
agreements and ecosystem restoration, which have the OECD Due Diligence Guidance for
not been effective nor scalable to date. Responsible Supply Chains of Minerals.

Governments and companies can do more to It includes an appendix on suggested measures to
ensure that legitimate ASGM can access the create economic and development opportunities for
market. Yet, in order to be effective, they need ASGM, and is accompanied by an FAQ document
to enhance their scrutiny on the sourcing on sourcing ASGM responsibly. The Guidance is
practices of local buyers, traders, aggregators the basis for due diligence regulations in producing
and exporters, who often provide direct (DRC, Colombia), processing (UAE) and importing
pre-financing to ASGM miners or transportation (EU, Switzerland, US) countries, and is consistent
and equipment, and a quick avenue for the gold to with the recommendations of the Financial Action
the market. Task Force.

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