Bringing Responsible and Conflict-Free Gold from Artisanal Mines to International Markets

The Context

Artisanal and small-scale mining is an important livelihood for millions around the world. Approximately 20 percent of the world’s gold is mined by artisanal miners.

Yet, artisanal gold mining remains largely informal and is prone to widespread corruption and violence. As an alternative to paper currency, gold is often favoured for money laundering and illicit trade. It is a high-value, easy-to-transport mineral, making it vulnerable to smuggling and an ideal target for armed groups. As a result, artisanal gold mining communities are often exploited by armed groups and other illicit actors.

Governments lose significant revenues from gold that is smuggled out of the country. According to the United Nations Security Council’s Group of Experts, 98 percent of artisanal gold production in Democratic Republic of Congo (DRC) is undeclared.

Internationally, private sector disclosure laws are drawing attention to supply chain transparency. Many companies are required to report on their 3T and gold supply chain, collecting data on the minerals, the people, and steps involved. Companies must also publicly report on weaknesses in their supply chain and actions they’ve taken to address identified risks. They must demonstrate that they are not inadvertently funding conflict and human rights violations, and proactively contribute in developing solutions where risks can be mitigated.

What We Are Doing

Through the Just Gold project, consumers are for the first-time ever able to buy traceable, legal, and conflict-free gold from artisanal mine sites in Democratic Republic of Congo. The Just Gold project was piloted in northeastern Democratic Republic of Congo’s Ituri Province, in Mambasa Territory, with the project proving a successful chain of custody from mine site to exporter in May 2017.

Over 1,000 miners across six mine sites have sold almost 17 kg of fully traceable gold to a verified exporter as part of the Just Gold project. In June 2017, Canadian-based jewellery company, Fair Trade Jewellery Co., made history by purchasing the first export of fully traceable, conflict-free artisanal gold from Democratic Republic of Congo and making it available to consumers in Canada.

IMPACT is supporting the traceability and due diligence implementation for the Just Gold project from mine site to export on the ground in Ituri Province. We are providing the local mining cooperative in Mambasa with capacity building and technical guidance to implement the traceability and due diligence system as part of the  project.

IMPACT also supports the integration of women’s economic empowerment , improving understanding of women’s rights in the communities involved in the project and fostering women’s leadership through skill-building and training.

Project Results

IMPACT first began developing a traceability and due diligence system for artisanal gold in Democratic Republic of Congo in 2012. The project picked up the name Just Gold in 2017. The first successful chain of custody from mine site to export was announced in June 2017. A month later, the first conflict-free, traceable, and legal artisanal gold from Democratic Republic of Congo hit the market in Canada.

The Just Gold project was funded by Global Affairs Canada as part of IMPACT’s Building Responsible Supply Chains for Development in Africa’s Great Lakes Region program. A previous pilot was launched in 2014 with the support of the Public Private Alliance to test an incentive-based model for artisanal gold traceability in eastern DRC. The one-year pilot and its lessons developed into the Just Gold project. The Just Gold project launched in 2015 and is funded by Global Affairs Canada, with additional funding previously provided by USAID, through their Capacity Building for Responsible Minerals Trade (CBRMT) project, and the International Organization for Migration. Funding for the project has also come from Apple and Humanity United.

Project Date (Start)

2015

Project Date (End)

2021

Country

Democratic Republic of Congo

Focus Area

Environmental Stewardship, Gender Equality, Illicit Trade and Financing, Supply Chain Transparency

Natural Resource

Gold

Donors

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