CONFLICT-FREE METALS
Concerned consumers, organisations, and governments around the world
continue to shine a light on conflict minerals. These tainted
commodities are traded by private armed groups for monetary gain to finance
civil conflicts and violence which contribute to the violation of human
rights. Thus, the quest for 'responsible' and ethically sourced minerals is
becoming more and more prevalent.
Conflict minerals, which can include gold ore, are smuggled out of
countries such as the Democratic Republic of the Congo, and parts of
Afghanistan, Columbia, and Zimbabwe, and shipped to smelters around the world
for refinement. Once processed, it is near impossible to trace their
origin. These minerals then enter global supply chains and end up being used
in many applications, including popular consumer products such as mobile
phones, televisions, laptops, and jewellery.
As companies become increasingly aware of the adverse effects of buying
conflict minerals they are endeavouring to examine and investigate their
supply chains, conducting due diligence in an effort to ensure they source
their minerals responsibly, thus preventing conflict minerals from entering
global markets.
The Perth Mint is
one such company that has implemented a Conflict Metals and Supply Chain
Policy.
Operating one of the largest gold refining operations in the world, The
Perth Mint is committed to boycotting conflict gold and other minerals, with
its supply chain due diligence systems and procedures compliant with the
'responsible' gold guidelines presented by the London Bullion Market
Association (LBMA) and the Organisation for Economic Cooperation and
Development (OECD).
In 2012, The Perth Mint also became one of the world's first three gold refiners
to be certified under the internationally recognised Conflict-Free Smelter
Program (CFSP) developed by the Electronic Industry Citizenship Coalition and
Global Sustainability Initiative (EICC) and Global e-Sustainability
Initiative. The voluntary program provides credible third-party valuation of
a smelter's procurement activities to verify that the refiner can be deemed
conflict-free.
In addition to refining the majority of Australia's newly mined gold, The
Perth Mint also processes gold doré from surrounding countries, and jewellery
scrap from Australia and Asia, and thus acknowledges it is extremely
difficult to determine the origins of all recycled, second-hand or scrap
gold.
"We are aware that gold mined in conflict countries has the
potential to indirectly make its way to our refinery, so we are vigilant in
our investigations into the credibility of our sources," said Perth
Mint Chief Operating Officer, David Woodford.
A positive assessment under the Conflict-Free Smelter Program's
authentication protocols gives Perth Mint customers assurance that the gold
which passes through its refining facility is obtained from trustworthy
sources.
Operating a fully integrated precious metals business, the refining of
gold is the initial stage in the production of The Perth Mint's extensive
range of bullion, commemorative and industrial products. With its
activities and the quality of its products and services guaranteed by the
Government of Western Australia, its ban of conflict metals is vital to its
success.
"With increasing institutional and private ownership of gold in
the form of bullion bars and coins, the issue of conflict minerals is
paramount for our investors, so we want to be sure we are providing them with
socially responsible products," he continued.
Today, there are now 80 conflict-free gold refiners across the world,
which are recognised by the CFSP.
This article was originally published by The Gold
Industry Goup, the independent industry body which promotes the
importance of the gold sector in Australia.