We have provided a brief description of precious metal sourcing below including some of the issues existing in the industry and options for sourcing responsibly. This information is by no means exhaustive, but rather intends to provide a short introduction to precious metal mining operations. For suppliers of responsibly sources precious metals, visit our Supplier Directory.
Image by James Robertson
Precious metals including gold, silver, and platinum are mined predominantly in Africa, Asia, and South America. While it is not possible to simplify the global gold supply system into one supply ‘chain’, a common example of typical trade is provided below.
Precious metals are extracted from the earth using different methods depending on their natural occurrence and accessibility. The rough ore material is then processed to create metal bullion which is sold through traders that bring these materials to international markets. Metal refiners turn the metal bullion into products such as metal sheet or wire and sell these materials to industry.
Image courtesy of Fairmined
Metal mining occurs in both large and small-scale operations, each with different methods, conditions and access to markets. The two main types of mining are artisanal small-scale mining (ASM) and large-scale mining (LSM), sometimes called ‘industrial/corporate’ mining.
Large scale mining is highly mechanised, formalised and usually regulated with standardised systems in place for maximising production and decreasing risks. Small-scale mining is more physically demanding, informal, unregulated, and often lacks state/industry support. Small-scale mining is characterised by small groups of people living in poverty. These miners often do not have the resources to implement systems for maximising yields, for protecting their health and safety, or for inputting environmental protections.
As a result, artisanal small-scale miners are vulnerable to injury and over-exhaustion, as well as poisoning from improper handling of hazardous chemicals. Small-scale miners rely on precarious income and have limited access to international markets. They are therefore vulnerable to traders who may take advantage of this. Despite these challenges, small-scale mining occurs around the world, with more than 100 million people depending on the industry.
Precious metals are limited natural resources. The operating life of a mine can range from a year to several decades. There are examples of mining sites being deserted after their depletion, which can lead to toxic waste land. This puts the health of nearby ecosystems and communities at risk. There are many historical instances of actions within precious metal mining causing human rights violations, ecological disruption and degradation, and unfair work conditions.
Image courtesy of Fairmined
There are three widely accepted options for responsibly sourced precious metals: Fairtrade, Fairmined, and 100% recycled.
Fairtrade and Fairmined are the two major accreditation schemes that bring precious metals from artisanal, small-scale mines (ASM) to market and help to improve the lives of ASM workers and their surrounding communities and environments. They support artisanal small-scale miners by certifying that they employ responsible mining practices in compliance with their respective standards, and by conducting regular audits to ensure those standards are maintained. Fairtrade and Fairmined metals can be traced to their source and makers and consumers can trust that they have been mined by people who have been treated and paid fairly.
Because of the nature of the metal trade, most precious metals have already been recycled to some degree. However, you can choose to source 100% post-consumer recycled metals with traceable operations. Some suppliers will have a certification for their recycled metal content such as a Recycled Content Certification from Scientific Certification Systems. When purchasing recycled metals, ask suppliers where their recycled metals come from and if they have any certifications that prove it is 100% recycled.
For information about Fairtrade and Fairmined certification systems, including how to register with these initiatives to be able to source Fairtrade or Fairmined metals, visit the pages below.
Visit our Library section for more information about other the key organisations that work to improve the metal mining industry.
