ASM Hub/ Pôle Artisanat Minier
16 July 2013
4:00 – 6:00 pm Paris
Presentation from July 16, 2013 webinar – distributed July 18, 2013
July 16 – Agenda /
16 juillet - Ordre du jour
16:00 -16:30
• Welcome / Introduction
• Webinar ground rules
• Calendar of calls / Calendrier des appels
16:30 -17:45
• Today’s Theme / Thème du jour
– Basics of ASM (ARM presentation) / AM : les fondamentaux (présentation ARM)
– Introduction and update of ASM efforts in-country / Présentation et point d’étape sur les progrès du secteur AM à l’échelon national :
• Government of Colombia / Gouvernement de la Colombie
– Participant reactions / Réactions des participants
• Next steps / Prochaines étapes
2
Welcome / Introduction
• Objective of the ASM Hub:
– To share experiences on innovative models to build secure, transparent and sustainable conflict-free supply chains of gold from artisanal and small-scale gold mine sites, including through country-specific projects operationalising Appendix 1 of the Supplement on Gold
• Objectif du Pôle Artisanat Minier:
– S’inspirer d’expériences innovantes pour inscrire les exploitations minières artisanales et à petite échelle dans des chaînes d’approvisionnement sûres, transparentes, durables et vérifiables, notamment via la mise en oeuvre opérationnelle, au niveau étatique, de l’Appendice 1 du Supplément sur l’or (cibles : parties prenantes du secteur de l’or exclusivement)
3
ASM Hub Members > 60 organisations
Government Industry • Canada • Colombia • DRC • Rwanda • Switzerland • The United States • ICGLR
• AngloGold Ashanti • Banro • Cartier • Emirates Gold • Gulf Gold Refinery • Hume Atelier • Jewelers of America • LVMH • MHI • PAMP • PT ABRG Indonesia • Fair Trade Jewellery Co. • Tony Goetz • Valcambi • Vieri • Associations: DMCC,
GJEPC, LBMA, RJC, WGC
Other • BGR • Channel Research • Crisis Group • Earthbeat Solutions • Emery Mukendi & Assoc. • Ernst & Young • Estelle Levin • Geneva Academy • GIZ Burundi • IIED • IPIS • iPoint Systems • Kabemba & Assoc. • Mineral Care • Phuzumoya Consulting • PWC • Projekt Consult • Quale • RCS Global • UL Responsible Sourcing • Univ. of Antwerp (IOB) • Univ. of British Columbia
Civil Society
• ACIDH • ARM • Artisanal Gold Council • CCFD Terre Solidaire • CEEC Sud Kivu • CENADEP Antenne du Kivu • Global Witness • PAC • PurProject • Resolve • Save Act Mine • Solidaridad
4
Participants expectations ASM Hub
• Reason for participating in the ASM Hub, feedback from ASM Hub participants – learn more about efforts and past experiences to build conflict-free supply
chains and understand the specific issues that are encountered in this context
– identify a responsible and fully traceable gold supply
– understand formalisation of the ASM sector in the DRC
– ASM and security issues –including Human Rights and the Voluntary Principles
– discuss topics such as import and taxation for improving distribution systems
– help raise standards, help create legitimate supply chains, and thus support miners and economies that depend on ASM
– implement new ideas early and quickly and provide to the ASM Hub the feedback from our experience
– to offer expertise and services to ASM Hub members in delivering responsible supply chains and other projects
– to support ASM by giving them access to international markets provided they can achieve international and customer diligence requirements and are able/willing to progress towards health & safety/ environmental/community support best practices
5
Pôle AM : attentes des participants
• Les membres du Pôle AM expliquent les raisons de leur engagement : – S’informer sur les progrès et les expériences passées en matière de chaînes
d’approvisionnement libres de conflit, ainsi que sur les obstacles rencontrés dans le cadre de leur développement
– Identifier des fournisseurs en or responsables, respectant les exigences de traçabilité
– Comprendre la manière dont a été formalisé le secteur AM en RDC
– Traiter les questions sécuritaires propres au secteur AM - dont celle du respect des Droits de l’Homme et des Principes Volontaires sur la Sécurité et les Droits de l’Homme
– Débattre de sujets comme les taxes à l’importation pour améliorer les circuits de distribution
– Contribuer à l’amélioration des exigences réglementaires et à la création de chaînes d’approvisionnement légitimes afin de soutenir les AM et les économies qui dépendent d’eux
– Accélérer la mise en œuvre d’idées innovantes afin de les tester en amont et transmettre le bilan de ces expériences au Pôle AM
– Faire profiter les autres membres du Pôle AM de leur expertise et leur proposer leurs services pour les aider à développer des chaînes d’approvisionnement responsables et d’autres projets
– Accéder les marches internationaux pour le secteur AM 6
ASM Hub Goals and Themes
ASM Hub Goal Theme/Webinar Led by Date
Goal 1: Expanding the ASM
Hub knowledge about ASM
issues
1. ASM Basics ARM, Colombia July 16,
2013
Goal 2: Market access and
engaging ASM miners
2. Closed pipeline projects, updates on ASM
projects and stakeholder support
3: Developing an ASM sourcing tool for
refiners/traders
4: The role of LSM/collaboration with ASM
5: The DD Guidance and ASM (Easy to Use
guides for ASM)
PAC, DRC
??
??
AGC
Sept 10
Oct 15
Nov 26
Feb 11,
2014
Goal 3: Reducing barriers to
formalisation
6: Formalisation efforts (legal frameworks) –
what works, updates on projects on the
ground, views from governments
7: Taxation
ARM
Mar 11
Apr 8
Goal 4: Broadening positive
messaging about ASM
8. What are the positive messages that can
be told about ASM? How can this Hub
coordinate on messaging
?? May
2014
Forum
7
Objectifs du Pôle AM et thèmes
abordés
Objectif du Pôle AM Thème/Webinaire Piloté par Date
Objectif 1 : Approfondir les
connaissances du Pôle sur les
enjeux des AM
1. Informations de base sur les AM ARM, et
Colombie
16 juillet
2013
Objectif 2 : Accès au marché
et responsabilisation des AM
2. Projets de filières fermées, suivi des projets
dans le secteur des AM et appui des parties
prenantes
3. Développement d’un outil de traçabilité des
AM pour les affineurs/négociants.
4. Rôle des LSM et partenariats avec les AM
5. Le Guide OCDE et les AM (guides pratiques
à l’attention des AM)
PAC, RDC
??
??
AGC
10 sept
15 oct
26 nov
11 février
2014
Objectif 3 : Dépasser les
obstacles à la formalisation
6. Efforts de formalisation (cadres juridiques et
légaux) – bilan et succès, suivi des projets sur
le terrain, avis des gouvernements
7. Taxation
ARM
11 mars
8 avril
Objectif 4 : Promouvoir une
image positive des AM auprès
du public
8. Quels messages positifs peuvent-ils être
diffusés au sujet des AM ? Comment le Pôle
peut-il coordonner la diffusion de ces
messages ?
?? Forum de
mai 2014
8
July 16 – Basics of ASM /
16 juillet – Les fondamentaux des AM
Moderated by: Mr. Kevin Telmer, Artisanal Gold Council
• Basics of ASM - ARM presentation
• In-country efforts
– Colombia
• Moderated discussion: Interventions/Q&A
Modérateur : M. Kevin Telmer, Artisanal Gold Council
• Les fondamentaux des AM - présentation ARM
• Progrès à l’échelon national
– Colombie
• Débat animé par le modérateur : Interventions / Questions-réponses
9
Presentation from ARM
(Alliance for Responsible Mining) Patrick Schein, Board member
10
ASM: the human face of gold
mining
• 90/10 sector. Artisanal mining has a high social impact
• 15-20M ASM miners => 100M+ depending
• Key economic employer concentrated in rural areas
• Social impact of ASM: for 1 kilo bar ASM provides 40 yearly job vs. 4 kg+ for 1 job for the industry leaders
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
L’artisanat minier aurifère (AMA) :
Le visage du secteur extractif de l’or
• le secteur 90/10. l’AMA: un fort impact social
• 15-20M mineurs => +100M en dépendent
• Fournisseur d’emploi indispensable concentré en milieu rural
• Impact social de l’AMA: un lingot d‘1kg d’or issu de l’AMA fournit 40 emplois annuels contre une production de 4 kg+ par emploi chez les leaders de l’industrie
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
ASM Gold as a development tool
• Important in-country economic impact : anchored in the local, regional & national economy
• Mostly not formalised but mostly legitimate
• Low environment footprint per job - low GHG emitter
• Mining communities are mostly kept in the «poverty trap» of informal economy
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
L’Or artisanal comme outil de
développement
• Activité à fort impact économique tant au niveau local, régional que national
• En majorité non formalisé mais légitime
• Faible empreinte écologique par emploi fourni - faible émetteur de GES
• L’AMA est en majorité pris dans le «piège de la pauvreté» de l’économie informelle
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
ASM is global and historically
anchored
• Over 50 countries concerned mostly in the South (map)
• Historically anchored (California)
• Historically linked to conflict
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
l’AMA: une activité mondiale et historique
• Présente dans plus de 50 pays en majorité au Sud
• Activité ancrée dans l’histoire (Californie)
• Historiquement liée au conflit
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
ASM challenges
• Child labour
• Mercury misuse
• Gender issue
• Conflict
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
Les défis de l’AMA
• Travail des enfants
• Mauvais usage du mercure
• Problématiques liées au genre
• Conflit
Alliance for Responsible Mining - ARM
• Organized
• Formalized
• Legalized
• Integrated in the community
• Responsible
Virtuous ASM
Requisite for a responsible
ASM
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
• Etre organisée
• Etre formalisée
• S’inscrire dans la légalité
• Etre intégrée dans la communauté
• Adopter des pratiques responsables
AMA Vertueuse
Conditions pour une AMA
responsable
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
But ASM is threatened
• Minamata Treaty
• Mining titles availability
• Mining law not designed for ASM
• lack of government support
• Conflict
• Stigmatization, informality
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
l’AMA est menacée
• Traité de Minamata
• Disponibilité des titres miniers
• Codes miniers non adaptés
• Manque de support des autorités
• Conflit
• Stigmatisation, informalité
ASM HUB 16th July 2013 — Alliance for Responsible Mining - ARM
23
Appendix 1 - Creating opportunities
for artisanal and small-scale miners
• The Guidance assumes that legitimate ASM has a key role to play to drive sector-wide change and focuses on means to create market based opportunities for value-creation and calls for governments, IGO, donors, companies in the supply chain, and civil society organisations to explore collaborative ways not to exclude ASM from supply chains.
• The Appendix to the Gold Supplement to the OECD Due Diligence Guidance offers an agreed roadmap to enable market access through collaborative efforts of all actors involved and to create economically viable development opportunities for artisanal and small-scale miners. The appendix invites stakeholders to:
– Assess the sector and the supply chain for conflict-related risks
– Formalise and legalise ASM
– Establish traceability and secure CoC systems and corridors
– Provide financial support for Appendix implementation
– Promote and foster ASM gold
24
Annexe 1 - Créer des opportunités
pour les artisans miniers
• Le Guide part du principe que les AM responsables ont un rôle clé et moteur à jouer dans la transformation de l’ensemble du secteur et dans l’accès à de nouveaux marchés source de création de valeur. Les gouvernements, les organisations intergouvernementales, les donateurs, les entreprises de la chaîne d’approvisionnement et les représentants de la société civile sont invités à étudier des solutions communes pour éviter l’exclusion des AM des chaînes d’approvisionnement.
• L’appendice au Supplément sur l’or du Guide OCDE sur le devoir de diligence propose une feuille de route concertée pour permettre à l’ensemble des parties prenantes de joindre leurs forces, d’améliorer leur accès au marché et, ainsi, de créer des opportunités de développement économique viable pour les AM. L’appendice encourage les parties prenantes à :
– Evaluer les risques liés aux situations de conflit dans le secteur et dans les chaînes d’approvisionnement
– Formaliser et légaliser le secteur des AM
– Etablir la traçabilité et consolider les chaînes de contrôle et leurs canaux
– Soutenir financièrement la mise en œuvre de l’Appendice
– Promouvoir et encourager l’achat d’or produit par des AM
Promoting better standards for small scale mining: Colombia’s approach
Juan Guillermo Castro Vice-President Promotion and Development National Agency of Mining
July 2013
35%
65%
35%
65%
Accounting system Mining titles
Royalties
24.3%
75.7%
Environmental Licences
Small scale mining I
33.5%
66.5%
With
Without
With
Without
Pay
Unpay
44.80%
55.20% 64.00%
46.00%
Financial Assets Labor Contract
72%
28%
Health and Safety Strategy Educational Level
61.20% 22.80%
9.80% 6.20%
Small scale mining II
With
Without Cash
Others
Primary Secondary Illiterate High education Without H&S strategy
H&S strategy
Mining Formalization Program
Ministry of Mines and Energy (Directorate of Mining Formalization)
National Agency of Mining (Vice presidency of Promotion and Development)
Mining activity under a legal title
Human capital development
Financial support and productivity
Business strengthening and
associations
Objective: Increase the number of Small Scale Miners (SSM) operating with legal title, technical standards and business formality.
Components:
FOR
MA
LIZA
TIO
N
ENVIRONMENTAL
SOCIAL AND LABOR
TECHNICAL
ECONOMIC AND FINANCIAL
Formalization phases
Mining activity under a legal title
Objective: Support SSM to work under a legal framework
• Decree 933 of 2013 allows informal miners in an untitled area to ask for a formal title for their operation with more flexible requirements than those necessary for regular mining
• If SSM are within the area of an existing mining title, the Ministry and the NAM will promote an agreement between the title holder and the SSM
• Special mining areas
Progress
Financial support and productivity
♦ Around 10 MM USD available resources for SSM modernization projects through subsidized loans
♦ MOU among National University of Antioquia, Antioquia’s Government and Regional Environmental Public Agency (Corantioquia) to develop the first gold formalization program in the Bajo Cauca Region
Objective: Create mechanisms for financing sustainable mining projects in order to improve technical, economic and social benefits
Progress
Human capital development
Objective: Building capabilities to develop human capital required for SSM Projects
• Workshops to reduce the use of mercury in gold SSM in Antioquia region
• Mining occupational health and safety management workshops • Training local public officials on mining regulation • Forums with Indigenous and Afro-Colombian communities in
Guainía, Vaupes, Cauca, Vichada, Caquetá, Putumayo and Amazonas on SSM developed by ethnic communities
• Workshops for miner’s safety and rescue mining teams
Progress
Business strengthening and associations
♦ Program to develop cooperative business models on SSM (Ministry of Labor - Special Administrative Unit for Solidarity Organizations)
♦ Work with large scale mining to promote associative agreements with SSM in their mining titles
Objective: Encourage mining associations of SSM with business formality and standards
Progress
Formalization pilots
Exploration Production
Public-Private initiatives to promote formalization of mining activities in areas of influence
Outcome
• Initiatives along the mining project cycle
• Customized programs
Progress to date
Formalization with higher social, technical and
environmental standards
Special mining regimes
Outcome
• 27 special mining areas • 17 indigenous mining zones • 19 Afro-Colombian mining zones
Progress to date
Protection of economic and cultural
legacy
• Special mining areas (artisanal miners)
• Indigenous mining zones • Afro-Colombian mining zones
Recognition of preferential rights to explore and exploit mining resources
Adherence to international initiatives
Revenue transparency and accountability in the extractive sector
• May 24/2013: announcement of Colombia’s intention to implement EITI at VI EITI Global Conference in Sydney
Extractive Industries Transparency Initiative - EITI
OECD
Due Diligence Guidance for responsible Supply Chains of Minerals
• May 2012: Formal adherence to the Due Diligence process
• May 2013: OECD’s decision to open membership talks with Colombia
Single Registration Form for Mineral Merchants - RUCOM: System to guarantee that buyers and sellers acquire mineral resources only from producers who have legal titles and valid environmental licenses
Progress in transparency and accountability of Colombian mining sector
Final remarks
♦ Colombia is at the beginning on the road to SSM formalization
♦ New legislation is needed to strengthen a differential approach to distinguish SSM vs. Large Scale Mining
♦ New approach to work with Indigenous and Afro-Colombian communities in ethnic mining areas
♦ Public-private partnerships and community involvement creates higher value
♦ Colombia is in the process to engage international initiatives in order to promote higher standards and better practices on SSM
♦ How to differentiate between informal and illegal mining?
Facilitated Discussion
38
Next steps / Prochaines étapes
• Next ASM webinar: DRC update, closed pipeline projects, update on ASM projects and stakeholder support - September 10, 2013 (4pm-6pm Paris)
• Prochain webinaire Artisanat Minier: présentation RDC, Projets de filières fermées, suivi des projets dans le secteur des AM et appui des parties prenantes – 10 septembre 2013 (16 h -18 h Paris)
• Thank you / Merci
39
Background on ASM in the OECD Due Diligence
Guidance
40
OECD Guidance Appendix 1 - Creating
opportunities for ASM
• The Guidance assumes that legitimate ASM has a key role to play to drive sector-wide change and focuses on means to create market based opportunities for value-creation
• The Appendix to the Gold Supplement to the OECD Due Diligence Guidance offers an agreed roadmap to enable market access through collaborative efforts of all actors involved and to create economically viable development opportunities for artisanal and small-scale miners
41
Due diligence on gold produced by
artisanal and small-scale miners
• Risk assessment for ASM gold is more flexible because retrospectively (i.e. “top-down”) tracing ASM gold can be very challenging
• Companies that source ASM gold are expected to “assist and enable Legitimate Artisanal and Small-Scale Mining producers to build secure, transparent and verifiable gold supply chains”: Creates a “bottom-up” flow of information
• Detailed Appendix on how to create economic and development opportunities for artisanal miners
• All stakeholders encouraged to use the suggested measures in the Appendix
42
Supplement on Gold: Application
•
Mined Gold
• Gold from artisanal source (ASM Gold)
• Gold from large-scale mines (LSM Gold)
Recycled Gold
Grand-fathered stocks
• After 1 January 2012
Applies to
Risks in the supply chain of gold from
conflict areas
44