Fair trade gold label

On March 17, 2010, the Fairtrade Labelling organisations International (FLO) and Alliance for Responsible Mining (ARM) associations announced the launch of the first independent gold label issued by a third party, whose mission is to promote social, environmental and economic development in communities of artisanal miners (see Objectives of the fair trade gold standards ).

This label is the fruit of the labour of the standards definition committee, launched by ARM and FLO in May 2009, and extensive public discussions with all stakeholders (mining communities, associations, refiners and jewellers).

Fairtrade & Fairmined, the joint label of the two associations, now introduces an official system to ensure that artisanal miners obtain a better price for their gold. The Fairtrade & Fairmined fair trade gold label guarantees that miners will:

• get a better price for their gold, thanks to the guaranteed minimum price. For unrefined gold, this minimum guaranteed price is set at 95% of the London Bullion Market Association (LBMA) gold fixing;
• receive a social premium equivalent to 10% of the LBMA fixing;
• gain access to pre-sales financing provided by buyers, to ensure a minimum price for their production and reduce the number of intermediaries. This will enhance competition in local markets and help improve trade relations in the miners' favour;
• adopt safe and responsible practices for the management of toxic chemicals. Producers of gold extracted without the use of chemicals and under strict environmental rehabilitation conditions will receive an additional eco premium equal to 5% of the LBMA fixing;
• contribute to social harmony through greater economic stability, and through the traceability and transparency of the fair trade gold industry.

Under the direction of ARM and with the help of nine producer organisations based in Bolivia, Colombia, Ecuador and Peru, the Fairtrade & Fairmined co-label is now available to artisanal mining communities in Latin America, who may request membership.

With this new gold co-label, interested companies can affix Fairtrade & Fairmined stamps to their certified gold products, such as jewellery, coins, commemorative medallions, ingots, medals, trophies and religious objects.

The sale of Fairtrade & Fairmined certified gold will be launched initially in the United Kingdom before being extended to other countries; the goal is to represent 5% of the gold jewellery market within the next 15 years, i.e. 15 tonnes of Fairtrade & Fairmined gold per year.