Home » Gold Miners Pledge to Boost Transparency and Traceability of the Precious Metal

Gold Miners Pledge to Boost Transparency and Traceability of the Precious Metal

The World Gold Council members have agreed to publish their refining partners' names and locations and join a digital platform that tracks gold from mine to market.

by Motoni Olodun

The World Gold Council (WGC), the market development organization for the gold industry, has announced that its members have committed to providing enhanced transparency in the gold supply chain.

The WGC members, who represent the majority of the global large-scale gold mining industry, have agreed to publish the names and locations of their refining partners on at least an annual basis, including all operations where the primary revenue comes from the production of gold.

They have also agreed to join the Gold Bar Integrity (GBI) platform and supply, on a confidential basis, “core data” on the gold they have produced to their refining partners. This will ensure that gold enters the GBI platform “at source” and create a verifiable ledger of responsibly mined gold.

The GBI platform is a digital initiative that aims to provide greater assurance and traceability of gold across the supply chain, from mine to market. It will enable the gold industry to develop new products and services that appeal to existing and new investors and customers who value responsible sourcing and sustainability.

David Tait, CEO of the WGC, said: “I am delighted that our members have committed to lead the way in transparency. Pursuing enhanced supply chain transparency is good for the companies who produce, the communities who benefit from employment, training, and skills, and investors and consumers, who can be assured their gold has been responsibly produced and responsibly traded.”

He added: “The responsible gold mining industry should be rightly proud of the positive impact they have on the communities and countries where gold is mined.”

The WGC said that these measures have been taken to encourage further transparency around the global gold trade, which is often subject to scrutiny and criticism for its environmental and social impacts.

The WGC also said that all its members are committed to both these initiatives, and the implementation period is currently being defined. It urged all responsible gold miners to commit to enhanced supply chain transparency.

The WGC has 33 members with operating mines, producing about 1,300 t of gold annually, accounting for more than 40% of global annual mine production. The WGC also works with governments, central banks, jewelers, investors, and other stakeholders to promote the use and demand of gold.

Gold is one of the world’s most valuable and versatile metals, with applications in jewelry, technology, medicine, dentistry, aerospace, and other industries. It is also a safe-haven asset that can hedge against inflation, currency devaluation, and geopolitical risks.

According to the WGC, the total above-ground stock of gold was estimated at 201 296 t as of December 2020, of which about 50% was in jewelry, central banks and other official institutions held 22%, 19% was in private investment (bars, coins, and exchange-traded funds) and 9% was in other fabricated products.

The WGC said its members are committed to operating responsibly, respecting human rights, protecting the environment, and supporting social and economic development in host countries.

The WGC also said that it supports the implementation of internationally recognized standards and frameworks for responsible mining practices, such as the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, the UN Guiding Principles on Business and Human Rights, the Voluntary Principles on Security and Human Rights, the International Cyanide Management Code and the Extractive Industries Transparency Initiative.

The WGC said that by enhancing transparency in the gold supply chain, it hopes to contribute to a more sustainable and ethical gold industry that can benefit all stakeholders.

Source: mining weekly

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