1. GEF Global Opportunities for the Long-term Development of the Artisanal and Small-Scale Gold Mining sector – GEF GOLD

2. Adverse effects on human health
Background: Mercury
Adverse effects on human health
Mercury Vapor
damages nervous system, kidneys; causes insomnia, tremors, depression, gum disease
Methyl Mercury - Minamata disease
causes severe neurological damage, ataxia, muscular atrophy, contraction of visual field, speech impairment, tremor, hearing impairment, mental disorder, infertility, spontaneous abortion or severe birth defects
But before we talk about Gold, we need to talk about a different element…Mercury.
Prolonged exposure to mercury is associated with a whole host of health complications, including organ damage, depression, neurological damage, fertility problems and severe birth defects
In 1956 the City of Minamata Japan experienced a devastating episode of mercury poisoning…the terrible disease of methylmercury poisoning is named after this city, as well as the Convention to protect humans and the environment from mercury releases, which entered into force in August of this year and convened its first Conference of Parties in Geneva last week.

3. Mercury releases from the sector
Mercury use in ASGM
Mercury releases from the sector
What is the largest souce of mercury releases in the world? Small Scale Gold Mining.
During amalgamation, mercury is added to the whole ore grinding process to amalgamate small particles of gold…and in this process, to produce 1 kilogram of gold, 30 kilograms of mercury will be released into waste waters. This mercury has the potential to be transformed into methyl mercury through reactions with plants and bacteria.
Then the gold-mercury amalgam is eventually burned, and mercury is released into the atmosphere…and at this stage, producing 1 kilogram of gold will release 1 kilogram of mercury vapor into the atmosphere.
Why are artisanal, small scale miners still using mercury?
It’s cheap, easy to use,
Its readily available –even in remote locations
And the returns are immediate…mercury based production methods yield gold on a daily basis
During amalgamation
During burning of the amalgam

4. Unique employment opportunity for rural population
Mercury use in ASGM
But ASGM is also…
Unique employment opportunity for rural population
Possible to do in a safe, environmentally friendly way
When well managed, a means of poverty alleviation
But artisanal, small-scale gold mining need not have devastating impacts on human health and the environment.
For about $80,000 –or the cost of 2 kilograms of gold– miners or rather, associations of miners, can invest in safe, clean gravimetric techniques which actually produce greater gold yields than mercury proccessing.
There is an opportunity to shift the artisanal small scale gold mining sector from dangerous or “dirty gold” as the President of Guyana said last week at the Minamata Convention COP…to “clean or safe Gold”
In adopting clean, safe gold processing practices, The GEF GOLD Partnership believes that the artisanal small scale gold mining sector can contribute to poverty alleviation and healthy, sustainable livelihoods.

5. Integrated Sound Management of Mercury in Colombia’s ASGM Sector
Global knowledge management and exchange of child project results through networking and outreach activities
Contribution toward the elimination of mercury and improvement of the gold value chain in the artisanal and small-scale gold mining sector
Integrated Sound Management of Mercury in Colombia’s ASGM Sector
A supply chain approach to eliminating mercury in Guyana’s ASGM sector: El Dorado Gold Jewelry – Made in Guyana
Integrated Sound Management of Mercury in Indonesia’s Artisanal and Small-scale Gold Mining (ASGM) or ISMIA
Integrated Sound Management of Mercury in Kenya’s ASGM (IMKA)
Contribution towards the elimination of mercury in the ASGM sector: from miners to refiners
Environmental Sound Management of Mercury in Artisanal Small-scale Gold Mining in Peru
This is an overview of the GEF GOLD program:
It includes a GEF Grant of US$45.5 million with US$136.2 million co-financing
Its working on the ground in 8 countries: Burkina Faso, Columbia, Guyana, Indonesia, Kenya, Mongolia/Philippines and Peru.
In addition, each child project contributes to a global knowledge management, coordination and outreach platform…the 8th child project at the top which is critical in reaching the private sector.
The GEF GOLD Program Concept was approved by GEF Council a year ago…the eight child projects are under development and will start coming in for circulation to Council & CEO endorsement by the end of the year

6. 2. Access to finance and access to markets
GEF GOLD
Components – Involvement of the Private Sector
1. Formalisation
2. Access to finance and access to markets
3. Technology Transfer
4. Knowledge Management and Communication
Each of the country based projects has the same general structure:
Component 1 is about Formalization –Different countries may implement different actions, but they will all work, in Component 1, to organize and legitimize the ASGM sector in the countries. Miners associations will be formed and strengthened…a process that we’ve seen happen in the farming, forestry and fisheries sectors the past 20 years.
30% of the GEF grant is devoted to component 2, which has 2 purposes: first, the project will facilitate private sector support for groups or cooperatives of artisanal small scale miners to access finance for clean, gravimetric gold processing technologies. And then secondly, this component will help miners with more direct access to international markets for the ‘clean’ gold they are producing.
Component 3 will demonstrate clean, efficient, non-mercury based gold production techniques in the 7 country-based child projects
Component 4 will look at experiences and lessons learned at the national level and feed these into the larger global process.
I want to talk a bit more about component 2 on Access to Finance & Access to Markets

7. Current ASGM Supply Chain
Domestic ASM
International 10
Miners
70%
80%
90%
95%
98%
99%
LBMA
On Site Buyer
Region Buyer
Exporter
Intern. Trader
Refiner 30
Miners 5
Miners
10g
1kg
10kg
50kg
100kg
To understand what the GOLD Program is trying to do, let me first explain a bit about the standard ASGM supply chain. You’ve got individual and occasionally groups of ASGM miners who process their gold using mercury…who sell to an onsite buyer, who sells to a regional buyer, who sells to an exporter, who sells to an intermediate trader, who sells to a refiner…who sells to the LBMA. Along the bottom you can see the volumes of gold moving through these transactions and along the top you can see the cumulative revenue.
1000kg
LBMA = London Bullion Market Association…largest gold trader > 500,000 kilos of gold/day

8. Expected ASGM Supply Chain
GEF GOLD
Expected ASGM Supply Chain
Domestic ASM
On Site Buyer
Region Buyer
Exporter
Intern. Trader
Refiner
70%
95%
99%
LBMA
100g
1kg
10kg
50kg
100kg
1000+kg 10
Miners 30 5
International
90%
Private Sector supports ASGM associations to access ‘clean’ gold production technologies
Jewelry
Electronics
Computer and other Private Sector entities create & access market for ’clean’
gold
So the GEF GOLD Program will work to organize and formalize these miners into associations. And the project will facilitate private sector investment so that these associations can access ‘clean, safe’ gold production technologies.
The GEF GOLD program expects to shorten the supply chain…by removing some of the middlemen and providing miners with closer, more direct access to international markets. You can see that greater revenues are expected to accumulate at the level of the miners associations. And very importantly, private sector partners come in by playing a significant role in creating, accessing and strengthening the market for clean, safe gold.
LBMA = London Bullion Market Association…largest gold trader > 500,000 kilos of gold/day

9. CORPORATE PERSPECTIVE ON SUSTAINABLE COMMODITIES
GEF 7 REPLENISHMENT MEETING
Addis Ababa
Dr. Helen Crowley
Head of Sustainable Sourcing Innovation, Kering
4 October 2017

10. WHO WE ARE
A global Luxury group, Kering develops an ensemble of luxury houses in fashion, leather goods, jewelry and watches, as well as sport & lifestyle brands
We enable our customers to express their personality and to fulfil their dreams while making a positive contribution to:
People
Society
Environment
Gucci • Bottega Veneta • Saint Laurent
Alexander McQueen • Balenciaga • Brioni
Christopher Kane • McQ • Stella McCartney
Tomas Maier • Boucheron • Dodo • Girard-Perregaux
JeanRichard • Pomellato Qeelin • Ulysse Nardin
Kering Eyewear • Puma • Volcom • Cobra

11. Key figures €1 billion 20 brands 120 countries TOTAL REVENUE
RECURRING OPERATING INCOME
€1 billion
net income attributable to owners of the parent o/w net income from continuing operations excluding non-recurring items
over 40,000 employees
20 brands
120 countries
REVENUE BY REGION

12. ADVANCE 2025 VISION
“Kering and its brands will set the standard for best practices for the luxury industry to meet global environmental and social challenges.”

13. KERING GROUP EP&L RESULTS

14. We don’t just see this...

15. Title
...We ALSO see this