1. Main Challenges for ASM in Fair Trade Labeling
Cristina Echavarria
Association for Responsible Mining
CASM VI Annual General Meeting,
Antsirabe, Madagascar November 11-15, 2006

2. Main Points Background to analysis Social challenges
Economic challenges
Labour challenges
Environmental challenges

3. Background to analysis
Experience in ASM
FLO-ARM Feasibility Study for Fair Trade Artisanal Gold and Precious Metals By-Products
Results emerging from consultation workshops with miner’s and support organisations in Peru and Colombia

4. Social Development 1
Legalisation is a necessary condition for certification
ARM-FLO will also take into account miner’s organisations that have requested legalisation.
Association with armed conflict and illegal activities will not be accepted
Challenges and opportunities in conflict and post-conflict situations
Reconstruction fund?
Case by case
GOVERNMENT RESPONSIBILITY
IN ENABLING FORMALISATION OF ASM
MINER’S INTERNAL CONTROLS AND HHRR
OMBUDSMAN FOR ASM

5. ORGANIZATIONAL STRENGTHENING
Social Development 2
Organisation and governance among ASM
The organisation must be an instrument for the social and economic development of the members, their families and the local community
Democratic decision making
Gender equity and multicultural approach
Transparency and accountability
CAPACITY BUILDING IN
ORGANIZATIONAL STRENGTHENING
OF ASM
LITERACY AND NUMERACY

6. Economic Development 1 Use of the Fair trade premium
Democratic decision making
Capacity to develop an annual plan for the use of the premium, involves collective identification of priorities for the organisation
Role of the organisation in the community
STRENGTHENING ADMINISTRATIVE CAPABILITIES, INCLUDING STRATEGIC PLANNING, ACCOUNTING AND DEMOCRATIC GOVERNANCE PRACTICES

7. Economic Development 2 Capacity to export
Developing economies of scale = volume to reduce cost of processing, refining, transport and export > commit to organisation and sufficient cash flow
Pre-financing schemes>cash flow to pay for produce and usual logistic and export costs
COP and COSP
TOOLS FOR WORKING OUT COSP
LONG TERM PARTNERSHIPS BETWEEN PRODUCERS AND CONSUMERS
BASED ON TRUST, RELIABILITY OF SUPPLY AND PREFINANCING BY FAIR TRADERS AND JEWELLERS

8. Economic Development 3
How to involve local traditional trading arrangements?
Interdependence of trading and credit, often bonded and asymmetrical
Fair traders can be involved, conflict management procedures with others on case by case basis
Chain of custody guarantee E.g. Green Gold
PARTICIPATORY TOOL TO ANALYSE SUPPLY CHAIN BOTTLENECKS, PLAYERS AND STRATEGY TO DEVELOP SUSTAINABLE PROCEDURES

9. TOOL TO IDENTIFY SUPPLY CHAIN BOTTLENECKS
Economic Development 4
Logistics and communications
Fluent communications are necessary for exporting directly to retailers in other countries
Potential of use of ICT’s tied to organisational and economic development processes E.g. Peru GAMA project and
Potential to obtain funding for closing the digital gap
Transport of metals to point of export
Security issues
Potential area for collaboration with established traders, refiners or mining companies (CSR) E.g. Green Gold
Partnerships with existing ATO’s
TRAINING IN NUMERACY, LITERACY AND INTERNET LITERACY, FACILITATING ACCESS TO INTERNET.
TOOL TO IDENTIFY SUPPLY CHAIN BOTTLENECKS

10. Economic Development 5 Efficiency through improved metal recovery
Added value through recovery and marketing of secondary minerals where feasible
Downstream economic linkages into FT jewellery for local markets
Fair trade scheme can be used to create credit programmes tied to a process of improved performance
ACCESS TO CREDIT AND TRAINING SUPPORT TECHNOLOGICAL IMPROVEMENTS FOR INCREASED METALS RECOVERY AND MARKET STUDY FOR SECONDARY MINERALS AND LOCAL/REGIONAL
FT JEWELLERY

11. Labour Development 1 Based on ILO concept of decent work
Rights at work
Employment
Social protection
Social dialogue
Applicable to organised miners and to small scale entrepreneurs or contractors with a significant number of labourers who are committed to improving the quality of life of their members and communities
SUPPORT BY ILO/IPEC, GOVERNMENTS, TRADE UNIONS OF MINING COMPANIES AND SUPPORT ORGANISATIONS

12. LEARN FROM OTHER SECTORS
Labour Development 2
Making traditional forms of labour arrangement compatible with the ILO concept of decent labour
Culturally engrained practices, not contemplated in the legal framework
Better “the luck of gold” than stable salary
REQUIRES INTERNAL PROCESS OF NEGOTIATION WITHIN OWN CULTURAL DYNAMICS (CF. PERU)
LEARN FROM OTHER SECTORS

13. Labour Development 3 Elimination of discrimination against women
Access to mineral resources and improved technology
Access to leadership through training and support from males and other females
Equal pay or participation in produce for the same task
Violence against women and sexual harassment
CAPACITY BUILDING, AWARENESS, EMPOWERMENT OF WOMEN (WITH THE PARTICIPATION OF MEN), AWARENESS RAISING, AND APPLICATION OF CULTURAL CONTROL MECHANISMS
BY BOTH MEN AND WOMEN

14. Labour Development 4 Progressive elimination of child labour
child labour in early childhood is directly related with the work of women miners who do not have alternative livelihoods or child care facilities available
Engrained belief that working is a way of learning a trade and becoming responsible
Must not sacrifice schooling
ECONOMIC DIVERSIFICATION TO GENERATE LIVELIHOOD ALTERNATIVES USING THE FAIRTRADE PREMIUM, MUCH CAPACITY AND AWARENESS BUILDING, CHILD CARE FACILITIES FOR MOTHER MINERS E.g. Filomena

15. Labour Development 5 Health and safety
Risk perception
basic personal protection, responsible use and handling of explosives and toxic substances, control of entries and exits from mines, register of events and accidents, and basic training in first aid in the organisation
Emergency preparedness and response
Identify risks and vulnerabilities
Mitigate
Have an emergency plan in place
Mine rescue services
AWARENESS BUILDING THOUGH PARTICIPATORY RISK EVALUATION, TRAINING, AND LOBBY SUPPORT ORGANISATIONS, FORMAL MINING COMPANIES AND GOVERNMENT

16. Labour development 6 Health and pension provision HIV/AIDS in Africa
Own solidarity funds
Access to health care. Lobby governments.
Explore pension provision opportunities
HIV/AIDS in Africa
Identify support organisations to do an HIV/AIDS prevalence evaluation
Lobby governments, support organisations and formal mining companies to set up an HIV/AIDS programme for the organisation and its community

17. Environmental Development 1
Responsible management of HG, CN and other toxic substances
Minimise the use of mercury and cyanide over an agreed upon period of time, through implementation of responsible practices and technologies
A green environmental premium based on the Green Gold criteria would ensure an extra premium, on top of the fair trade premium, for elimination of Hg and full implementation of stringent environmental practices
ECONOMIC INCENTIVES (GREEN PREMIUM), TRAINING IN MITIGATION AND MANAGEMENT, CLEAN TECHNOLIGIES, PARTNERSHIP WITH GMP, GOVERNMENTS AND CONCERNED ENVIRONMENTAL NGO’S

18. Environmental development 2
Ecological restoration
Tailings management
Mining in natural protected areas
CLEANER TECHNOLOGIES AND ENVIRONMENTAL MITIGATION PLANS
FOR ANY NEW TECHNOLOGY:
ACCESS TO CREDIT AND TRAINING FOR IMPROVED ENVIRONMENTAL MANAGEMENT
LICENCE TO OPERATE IN NPA IF THEY WANT TO BE CERTIFIED

19. Final reflections The challenges are enormous, but not new
What is new is the approach
A conscious consumer is the driver
Miners to become organised!!!
Governments to establish enabling and feasible legal frameworks for ASM formalisation
Credit to organised, responsible miners
Mining companies to include ASM in their CSR
Active support to the organised miners from all concerned stakeholders
We invite to build with existing efforts
Challenging…but what is the alternative?