BACKGROUND INFORMATION ABOUT FAIR TRADE AND THE FAIRTRADE and FAIRMINED LABEL
Ethical Metalsmiths and Fair Jewelry Action, are investigating the potential market interest in Fairtrade and Fairmined gold in the US market.
Fairtrade and Fairmined certification for gold from artisanal and small scale mines is the result of a partnership between the Alliance for Responsible Mining (ARM) and Fairtrade International (FLO). A first step in being part of this exciting new alternative for US jewelers is to let us know your views so that we can accurately assess the potential demand for Fairtrade and Fairmined gold.
Regardless of how much recycled metals jewelers use, precious metal will continue to be mined. Fairtrade and Fairmined certification ensures that when consumers purchase jewelry they know that the gold it contains has contributed to improving the lives of gold miners – the fifteen million people who make up 90% of the miners but produce 10% of the global supply, many working for less than $2 / day. 1
Like other Fairtrade certified products on the market, miners receive a Fairtrade Premium, which the communities democratically decide how to spend on social development projects. Fairtrade and Fairmined gold already has a strong market in the UK and it is spreading to Europe and Canada.
Here are the financial facts involved in becoming a Fairtrade and Fairmined licensee. The Fairtrade Minimum Price is 95% of the London Bullion Market Association (LBMA) gold price on the date of purchase. Additionally miners receive a Fairtrade Premium of 10% of LBMA on top of the minimum price, which must be invested in their communities. These costs are paid by the buyer purchasing from the mine. Licensed jewelers are responsible for use of the FT and FM dual label, and place it on the product. They are also charged a license fee determined by the labeling initiative they are licensed by on a quarterly basis. This money is used to cover the costs of running the Fairtrade program and supporting miners working towards certification. The licensing fee is approximately 1.7% of the estimated wholesale value of the finished product.
In order to bring Fairtrade and Fairmined gold to the US, we need to determine who is interested in being part of these certified supply chains.
For more information, visit: www.fairgold.org, www.communitymining.org and www.fairtrade.net.
TERMS:
Fairtrade and Fairmined certified gold: Fairtrade and Fairmined certified gold is available only from artisanal and small-scale mining organizations meeting the Fairtrade and Fairmined gold standard. This means the gold has been responsibly mined and that miners received a Fairtrade minimum price and additional premium which assists in their communities’ social, environmental and economic development.
FAIRMINED Mark appears on jewelry and products that contain Fairtrade and Fairmined certified gold. It is a trademark of the Alliance for Responsible Mining (ARM), and an independent product certification label. FAIRTRADE Mark: appears on products meeting Fairtrade standards as defined by Fairtrade International (FLO). The FAIRTRADE Mark is a registered trademark and an independent product certification label. The FAIRTRADE and FAIRMINED is a dual label and the two marks will always be used together on certified products.
Fair Trade – The term Fair Trade broadly defines a trading partnership, based on dialogue, transparency and respect, that seeks greater equity in international trade. It contributes to sustainable development by offering better trading conditions to, and securing the rights of, marginalized producers and workers especially in developing countries. 2
1: Viega, M. & Baker, R (2004) Protocols for Environmental and Health Assessment of Mercury released by small-scale gold miners.Vancouver: UNIDO
2: From the Fair Trade Glossary (PDF) created by Fairtrade International, FLO-CERT and World Fair Trade Organization