Ethically Mined Gold Emily Andrews, Katinka Eikelenboom, Bryan - PowerPoint PPT Presentation

The Movement Toward Ethically Mined Gold Emily Andrews, Katinka Eikelenboom, Bryan Nicholson, Cate Owren & Nancy Rizkalla In partnership with Janet MacGillivray Make A Ripple

Make A Ripple’s Ethical Mined:  a US-based initiative for consumers that demands fair and ethical distribution of the earth’s resources by  1) fighting environmental and social harms to developing countries caused by irresponsible mining of our earth’s precious metals and gems, and  2) generating demand for responsibly mined materials from the earth that can support communities and break the poverty cycle

Methodology:  Internet research  Examination of NGO publications and programming  Literature review  Interviews with stakeholders, NGOs and activists

Deliverables:  A portfolio of research for the client including: - Assessment of standards - Report on the prospects of Fair Trade in gold - Jewelry retailers survey proposal - Proposal for comprehensive multi- stakeholder conference - Press release

Deliverables: Stakeholder Map Extraction Point Stakeholders Retail Stakeholders o Mine Workers (8) o Consumers (6) o Mine Community (3) o Manufacturers (1) o Local Ecosystems (4) o Retailers (16) o Local Government (7) o Designers o Mining Companies (2) o Refiners & Castors (13) o Shareholders (10) o Investment banks o Activists & NGOs (9) o Individual investors (11) o Adjacent Communities o Mining Companies o Activists & NGOs Production Stakeholders o Wholesalers Post-Extraction Stakeholders o Retailers o Designers o Mining Communities o Consumers o Shareholders o Trade & Labor o National Governments (5) Organizations (15) o Shipping Companies o Mining Companies o Wholesalers o Investment Banks o Jewelry Producers o Artisans o Investment Banks (12) o Manufacturers

Deliverables: Production and Reserves Map

Deliverables: Gold Event “Artisanal Gold Mining: Balancing environmental risks and human livelihoods”

Deliverables: Shareholders’ Resolution for Newmont 2007 – Newmont Mining Corporation WHEREAS , a rise in unfavorable press coverage resulting from increased community protests and state retaliation in response to the displacement of indigenous communities for mining projects, the environmental impact of mining operations, and the failure to fully restore land once used for mining have negatively impacted the image of the Newmont corporation; and WHEREAS , concerns for displacement, environmental degradation and land reclamation led more than 10,000 people to protest open-pit mining in 2004; and, WHEREAS , industrial gold mining leaves thousands of tons of waste in its wake and, cyanide combined with other toxic chemicals often contaminate surrounding water supplies; and, WHEREAS , the Newmont mining corporation has professed a desire to “leave a positive legacy for our communities and the environment” in areas surrounding mines which have ceased to be profitable; and WHEREAS , the Newmont mining corporation's Ahafo gold mine in Ghana will result in the economic displacement of over 20,000 residents, violating the International Finance Corporation's standards of involuntary resettlement; and, WHEREAS , the Newmont mining corporation has not provided a meaningful financial guarantee to ensure clean-up and reclamation of the Ahafo site; and, WHEREAS , the Newmont Corporation’s Minahasa Raya gold mine, which closed in 2003, discarded more than 4 million tons of tailings into Buyat Bay, THEREFORE, BE IT RESOLVED , Shareholders urge management to review its policies and financial commitment to land clean-up, community reclamation, and compensation for indigenous communities displaced due to mining activities, and report to the shareholders on the findings of this review prior to the 2009 annual meeting.

The Meaning of Gold:

The Meaning of Gold:  Gold has no intrinsic value  Socially and culturally constructed meaning of gold throughout history  Gold as a gender issue: representing independence, protection, luck, beauty  Gold as a gender issue: female gold miners, health risks, pregnancy risks  Significance of gold in developing countries: liquid asset, savings, mortgage, tourism

Investment:  In May 2006 price of gold hit 25-year high of $725 an ounce.  Represented 159% increase in value from 2001 when gold was traded at $280 an ounce.  Today price hovers around $650 an ounce, but analysts forecast significant spike in coming year.

Investment: What is Fueling These Gains?  Demand: - Jewelry sector’s demand for gold stable at around 70% - Investment demand has risen substantially in the past two years led by the economies of China and India. - As these economies continue to grow, price of gold will continue to rise.

The Effects of Endless Demand…  A single gold ring creates 20 tons of waste.

The Effects of Endless Demand…  Rio Tinto’s Bingham Canyon mine in Utah is so vast that it is visible to astronauts from outer space.

 images of Bingham Canyon mine in Utah

The Effects of Endless Demand…  Open pit gold mines ruin landscapes, typically producing 8 to 10 times more waste than underground mining.

The Effects of Endless Demand…  Metals mining employs 0.09% of global workforce but consumes an astonishing 10% of world energy.

The Effects of Endless Demand…  Industrial mining uses highly toxic cyanide and mercury.  Metals mining is the number one toxic polluter in US.

Opposition and Action!  Workers and community members have begun to organize against negative effects of industrial mining.

Miners Organize!  Workers from the Rio Tinto Global Network  Indonesian workers strike for better wages.

Community Action!  10,000 community members protest expansion of Cerro Quilish mine, Peru.

Community Action!  Police shot and killed one protester and injured three more in Akyen mine in Ghana.

Community Action!  Local residents burn down Elang exploration camp in Sumbawa, Indonesia.

Action!  Representatives from Ghana, Peru, Indonesia, Romania, and Nevada gather at Newmont Mining Corporation's headquarters in Denver.

Shareholder Activism:  Shareholder activism is a way for shareholders to influence a corporation's behavior.  Several shareholder resolutions have been submitted to the Newmont Corporation.

Shareholder Activism:  Newmont supported the resolution submitted by several advocacy organizations to encourage greater cooperation with local communities.  Newmont shareholders passed the resolution with a vote of 91.6%.  We are currently working with Christian Brotherhood Investment Services to submit a resolution regarding land reclamation.

Mining Pains:  70% of gold mining occurs in developing countries with lax labor laws and minimal enforcement of human rights.  The International Council of Metal and Mining (ICMM) does not recognize the right of miners to bargain collectively.

Endangered Communities:  Social Problems - Displacing Farmers - Disrupting Local Governance  Loss of Traditional Ways of Living  Public Health

Millions Affected:  In India alone 2.55 million people displaced.  Indigenous peoples' lands  120,000 tons of toxic waste spilled from the Baia Mare gold mine in Romania in 2000, contaminating the drinking water of 2.5 million people and killing 1,200 tons of fish.

Health Risks:  Birth defects  Skin diseases  Mental retardation  Chemical poisoning

Choco, Colombia:  "Certified Green Gold”  Criteria: no ecological disruption, no use of toxic chemicals, free and informed consent of community for all mining operations.  Miners receive a bonus from the social premium.  The Association for Responsible Mining (ARM) has taken up the Fair Trade certification campaign for Choco’s green gold.  So far, no certified Fair Trade gold is available.

Madagascar in the works…  Miners pay US$0.15 to the mayor for legal right to mine in certain area.  Gold is sold to a licensed buyer who is responsible for paying taxes.  No cyanide or mercury used in region; all “Fair Trade- like” standards are upheld.  The social premium attached to the gold will be reinvested in the community.  Working towards sustainability and replication with local government and NGO.

Movement Toward “Ethical” Gold:  Make A Ripple  No Dirty Gold: Oxfam & Earthworks  Association for Responsible Mining (ARM)  Global Mercury Project  Ethical Metalsmiths  Brilliant Earth  Choco  Council for Responsible Jewelry Practices

Fair Trade:  Ethical consumerism: +/- 30% of consumers strongly ethical  The ethical consumer: female, 30s-40s, highly educated, post-material values  Social premium: 10% would pay + 27% for Fair Trade coffee.

 Fair Trade global market: US$1.5 billion  Total increase: 37 %  US increase: 60%

On The Way to Fair Trade Gold…  Supply side obstacles → working conditions, environmental risks, community development and empowerment  Demand side obstacles → jewelry retailers, consumer demand, marketing, social premium, education and advocacy  Certification process → FLO’s standards, inspection, monitoring