December 16, 2020

The Swiss Better Gold Initiative

Despite a challenging year for all stakeholders involved in Artisanal and Small-Scale Mining value chains, there has been serious work done to increase the sustainability of the sector.

© BGI

Actions taken to combat the vulnerability of Artisanal and Small-Scale Miners

In our collective memory, 2020 will remain as the year in which a global pandemic caused immense impacts and disturbances across the planet. Among other sectors, the outbreak of Coronavirus exposed the already vulnerable Artisanal and Small-Scale Mining (ASM) group even more. Poverty, amplified insecurity, health issues and limited access to governmental services marked the year of many ASM miners.

The value chains were – and some still are – massively disturbed. Production, as well as the demand for responsible gold, have both been affected by the sanitary and economic crisis. Reacting to the threats from the Coronavirus outbreak in ASM, the Swiss Better Gold Initiative (BGI) has immediately responded with several emergency measures, whereby demonstrating not only the continued engagement for ASM, but also its flexibility, driven by mutual trust established among the stakeholders.

Within this complex and dynamic context, many measures on different levels have been implemented by the public-private partnership. The following list (non-exhaustive) shows several of the measures achieved in 2020.

Swiss Administration

1. Switzerland submitted a proposal to the World Customs Organization (WCO) regarding an amendment to the international customs duty classification for gold. The aim of the proposal is to improve transparency and traceability in the international gold trade by making it possible to distinguish between various classes of gold. Switzerland will implement the proposed amendment for gold imports into Switzerland from Friday, 1 January 2021. The existing competitive conditions for the Swiss gold sector will be maintained at an international level.

2. The Swiss Parliament approved the Swiss international cooperation strategy 2021–2024.[1] This strategy lays the legal ground for future interventions in the development cooperation, and hence also for the Better Gold Initiative.

3. The Swiss Government is in a close dialogue with various stakeholders, including civil society organizations, academics, refiners and commodity traders on the Swiss proposal for increasing transparency, competitiveness, innovation, sustainability and further dialogue for the sector.

4. The Federal Council adopted the revised CSR Action Plan 2020-2023 and hence confirmed the commitment to responsible business conduct. The CSR Action Plan sets out expectations of companies with regard to their conduct, as well as the Confederation’s CSR-related activities.

5. The Federal Council approved its anti-corruption strategy for the 2021–2024 period. [2] This strategy defines numerous objectives ranging from prevention and law enforcement to international cooperation.

© SBGA

Swiss Better Gold Association

1. The Swiss Better Gold Association (SBGA) is a non-profit industry association, which groups key players of the Swiss gold industry. As such, it represents the Swiss markets for responsible ASM gold, which is eager to support this sector in improving its social and environmental practices and facilitate access of ASM gold to the market.

2. From the very start of the Coronavirus outbreak, the association has put all its efforts and energy into keeping existing ASM supply chains operational, despite all of the logistical and sanitary obstacles resulting from the pandemic.

3. Further, the SBGA and the Swiss State Secretariat for Economic Affairs (SECO) co-implemented a range of extraordinary ASM support measures to mitigate the impact of the COVID-19 crisis on ASM miners.

4. In Colombia, eight small mining operations participating in the Better Gold Initiative received $100,000USD to alleviate the economic difficulties resulting from the confinement. These funds covered two main aspects: implementation of bio-security protocols at operations, and safeguarding jobs while facing this difficult period.

5. A similar support action was also deployed in Peru, where The Initiative focused on helping the small-scale gold mining operations to safely resume their activities, within the challenging COVID-19 context.

6. Further, The Initiative also urgently delivered 1,300 food parcels to the traditional artisanal gold panners, ‘barequeros’, from Chocó in Colombia and 570 parcels to small gold operations in Bolivia. Indeed, the negative effects of this crisis on local economies - where artisanal mining activities are impacted due to confinement and logistics restrictions - brought The Initiative to the conclusion that this type of urgent action is needed to support our ASM partners.

© Yirka Roldan BGI