ASM Hub/ Ple Artisanat Minier (AM)

16 July 2013 4:00 6:00 pm Paris

Presentation distributed July 12, 2013

July 16 Agenda / 16 juillet - Ordre du jour

16:00 -16:30 Welcome / Introduction Calendar of calls / Calendrier des appels 16:30 -17:45 Todays Theme / Thme du jour
Basics of ASM (ARM presentation) / AM : les fondamentaux (prsentation ARM) Introduction and update of ASM efforts in-country / Prsentation et point dtape sur les progrs du secteur AM lchelon national : Government of Colombia / Gouvernement de la Colombie Government of DRC / Gouvernement de la RDC Participant reactions / Ractions des participants

Next steps / Prochaines tapes

Welcome / Introduction
Objective of the ASM Hub:
To share experiences on innovative models to build secure, transparent and sustainable conflict-free supply chains of gold from artisanal and small-scale gold mine sites, including through country-specific projects operationalising Appendix 1 of the Supplement on Gold

Objectif du Ple Artisanat Minier:

Sinspirer dexpriences innovantes pour inscrire les exploitations minires artisanales et petite chelle dans des chanes dapprovisionnement sres, transparentes, durables et vrifiables, notamment via la mise en oeuvre oprationnelle, au niveau tatique, de lAppendice 1 du Supplment sur lor (cibles : parties prenantes du secteur de lor exclusivement)
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ASM Hub Members ~ 60 organisations

Government
Canada Colombia DRC Rwanda Switzerland The United States ICGLR

Industry
AngloGold Ashanti Banro Cartier Emirates Gold Gulf Gold Refinery Jewelers of America LVMH MHI PAMP PT ABRG Indonesia Fair Trade Jewellery Co. Tony Goetz Valcambi Vieri

Civil Society
ACIDH ARM Artisanal Gold Council CCFD Terre Solidaire CEEC Sud Kivu CENADEP Antenne du Kivu Global Witness PAC Resolve Save Act Mine Solidaridad

Associations: DMCC, GJEPC, LBMA, RJC, WGC

BGR Channel Research Crisis Group Earthbeat Solutions Emery Mukendi & Assoc. Ernst & Young Estelle Levin Geneva Academy GIZ Burundi IIED IPIS iPoint Systems Kabemba & Assoc. Mineral Care Phuzumoya Consulting PWC Projekt Consult Quale RCS Global UL Responsible Sourcing Univ. of Antwerp (IOB) Univ. of British Columbia
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Other

Participants expectations ASM Hub

Reason for participating in the ASM Hub, feedback from ASM Hub participants
learn more about efforts and past experiences to build conflict-free supply chains and understand the specific issues that are encountered in this context identify a responsible and fully traceable gold supply understand formalisation of the ASM sector in the DRC learn about the Peruvian legal framework in the mining industry ASM and Security issues including Human Rights and the Voluntary Principles discuss topics such as import and taxation for improving distribution systems help raise standards, help create legitimate supply chains, and thus support miners and economies that depend on ASM implement new ideas early and quickly and provide to the ASM Hub the feedback from our experience to offer expertise and services to ASM Hub members in delivering responsible supply chains and other projects to support ASM by giving them access to international markets provided they can achieve international and customer diligence requirements and are able/willing to progress towards health & safety/ environmental/community support best practices

Ple AM : attentes des participants

Les membres du Ple AM expliquent les raisons de leur engagement :
Sinformer sur les progrs et les expriences passes en matire de chanes dapprovisionnement libres de conflit, ainsi que sur les obstacles rencontrs dans le cadre de leur dveloppement Identifier des fournisseurs en or responsables, respectant les exigences de traabilit Comprendre la manire dont a t formalis le secteur AM en RDC Se renseigner sur le cadre juridique et lgal de lindustrie minire au Prou Traiter les questions scuritaires propres au secteur AM - dont celle du respect des Droits de lHomme et des Principes Volontaires sur la Scurit et les Droits de lHomme Dbattre de sujets comme les taxes limportation pour amliorer les circuits de distribution Contribuer lamlioration des exigences rglementaires et la cration de chanes dapprovisionnement lgitimes afin de soutenir les AM et les conomies qui dpendent deux Acclrer la mise en uvre dides innovantes afin de les tester en amont et transmettre le bilan de ces expriences au Ple AM Faire profiter les autres membres du Ple AM de leur expertise et leur proposer leurs services pour les aider dvelopper des chanes dapprovisionnement responsables et dautres projets
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ASM Hub Goals and Themes

ASM Hub Goal
Goal 1: Expanding the ASM Hub knowledge about ASM issues Goal 2: Market access and engaging ASM miners

Theme/Webinar
1. ASM Basics

Led by
ARM, AGC, DRC & Colombia ??

Date
July 16, 2013

2. Closed pipeline projects, updates on ASM projects and stakeholder support 3: Developing an ASM sourcing tool for refiners/traders 4: The role of LSM/collaboration with ASM 5: The DD Guidance and ASM (Easy to Use guides for ASM)

Sept 10

??

Oct 15

?? AGC ??

Nov 26 Feb 11, 2014 Mar 11

Goal 3: Reducing barriers to formalisation

6: Formalisation efforts (legal frameworks) what works, updates on projects on the ground, views from governments 7: Taxation

Apr 8 ?? May 2014 Forum

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Goal 4: Broadening positive messaging about ASM

8. What are the positive messages that can be told about ASM? How can this Hub coordinate on messaging

Objectifs du Ple AM et thmes abords

Objectif du Ple AM Objectif 1 : approfondir les connaissances du Ple sur les enjeux des AM Objectif 2 : accs au march et responsabilisation des AM Thme/Webinaire
1. Informations de base sur les AM

Pilot par
ARM, AGC, RDC et Colombie ??

Date
16 juillet 2013

2. Projets de filires fermes, suivi des projets dans le secteur des AM et appui des parties prenantes 3. Dveloppement dun outil de traabilit des AM pour les affineurs/ngociants.

10 sept

??

15 oct

?? 4. Rle des LSM et partenariats avec les AM AGC

26 nov 11 fvrier 2014 11 mars

5. Le Guide OCDE et les AM (guides pratiques lattention des AM)

Objectif 3 : dpasser les obstacles la formalisation

6. Efforts de formalisation (cadres juridiques et lgaux) bilan et succs, suivi des projets sur le terrain, avis des gouvernements 7. Taxation

??

8 avril ?? Forum de mai 2014

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Objectif 4 : promouvoir une image positive des AM auprs du public

8. Quels messages positifs peuvent-ils tre diffuss au sujet des AM ? Comment le Ple peut-il coordonner la diffusion de ces messages ?

July 16 Basics of ASM / 16 juillet Les fondamentaux des AM

Moderated by: Mr. Kevin Telmer, Artisanal Gold Council Basics of ASM - ARM presentation In-country efforts
Colombia (presentation to be inserted) DRC (presentation to be inserted)

Moderated discussion: Interventions/Q&A Modrateur : M. Kevin Telmer, Artisanal Gold Council Les fondamentaux des AM - prsentation ARM Progrs lchelon national
Colombie (prsentation intgrer) RDC (prsentation intgrer)

Dbat anim par le modrateur : Interventions / Questionsrponses

Presentation from ARM (Alliance for Responsible Mining)

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ASM: the human face of gold minin

90/10 sector. Artisanal mining has a high social impact 15-20M ASM miners => 100M+ depending Key economic employer concentrated in rural areas Social impact of ASM: for 1 kilo bar ASM provides 40 yearly job vs. 4 kg+ for 1 job for the industry leaders
ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

Lartisanat minier aurifre (AMA) Le visage du secteur extractif de l

le secteur 90/10. lAMA: un fort impact social 15-20M mineurs => +100M en dpendent Fournisseur demploi indispensable concentr en milieu rural Impact social de lAMA: un lingot d1kg dor issu de lAMA fournit 40 emplois annuels contre une production de 4 kg+ par emploi chez les leaders de lindustrie
ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

ASM Gold as a development tool

Important in-country economic impact : anchored in the local, regional & national economy Mostly not formalised but mostly legitimate Low environment footprint per job - low GHG emitter Mining communities are mostly kept in the poverty trap of informal economy
ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

LOr artisanal comme outil de dveloppement

Activit fort impact conomique tant au niveau local, rgional que national En majorit non formalis mais lgitime Faible empreinte cologique par emploi fourni faible metteur de GES LAMA est en majorit pris dans le pige de la pauvret de lconomie informelle

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

ASM is global and historically anchored

Over 50 countries concerned mostly in the South (map) Historically anchored (California) Historically linked to conflict

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

lAMA: une activit mondiale et historique

Prsente dans plus de 50 pays en majorit au Sud Activit ancre dans lhistoire (Californie) Historiquement lie au conflit

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

ASM challenges

Child labour Mercury misuse Gender issue Conflict

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

Les dfis de lAMA

Travail des enfants Mauvais usage du mercure Problmatiques lies au genre Conflit

Alliance for Responsible Mining - ARM

Requisite for a responsible ASM

Organized Formalized Legalized Integrated in the community Responsible Virtuous ASM

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

Conditions pour une AMA responsable

Etre organise Etre formalise Sinscrire dans la lgalit Etre intgre dans la communaut Adopter des pratiques responsables AMA Vertueuse

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

But ASM is threatened

Minamata Treaty Mining titles availability Mining law not designed for ASM lack of government support Conflict Stigmatization, informality

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

lAMA est menace

Trait de Minamata Disponibilit des titres miniers Codes miniers non adapts Manque de support des autorits Conflit Stigmatisation, informalit

ASM HUB 16th July 2013 Alliance for Responsible Mining - ARM

Appendix 1 - Creating opportunities for artisanal and small-scale miners

The Guidance assumes that legitimate ASM has a key role to play to drive sector-wide change and focuses on means to create market based opportunities for value-creation and calls for governments, IGO, donors, companies in the supply chain, and civil society organisations to explore collaborative ways not to exclude ASM from supply chains. The Appendix to the Gold Supplement to the OECD Due Diligence Guidance offers an agreed roadmap to enable market access through collaborative efforts of all actors involved and to create economically viable development opportunities for artisanal and small-scale miners. The appendix invites stakeholders to: Assess the sector and the supply chain for conflict-related risks Formalise and legalise ASM Establish traceability and secure CoC systems and corridors Provide financial support for Appendix implementation 23 Promote and foster ASM gold

Annexe 1 - Crer des opportunits pour les artisans miniers

Le Guide part du principe que les AM responsables ont un rle cl et moteur jouer dans la transformation de lensemble du secteur et dans laccs de nouveaux marchs source de cration de valeur. Les gouvernements, les organisations intergouvernementales, les donateurs, les entreprises de la chane dapprovisionnement et les reprsentants de la socit civile sont invits tudier des solutions communes pour viter lexclusion des AM des chanes dapprovisionnement. Lappendice au Supplment sur lor du Guide OCDE sur le devoir de diligence propose une feuille de route concerte pour permettre lensemble des parties prenantes de joindre leurs forces, damliorer leur accs au march et, ainsi, de crer des opportunits de dveloppement conomique viable pour les AM. Lappendice encourage les parties prenantes : Evaluer les risques lis aux situations de conflit dans le secteur et dans les chanes dapprovisionnement Formaliser et lgaliser le secteur des AM Etablir la traabilit et consolider les chanes de contrle et leurs canaux Soutenir financirement la mise en uvre de lAppendice Promouvoir et encourager lachat dor produit par des AM 24

Presentation from Colombia

25

Presentation from DRC

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Next steps / Prochaines tapes

Next ASM webinar: Closed pipeline projects, update on ASM projects and stakeholder support - September 10, 2013 (4pm6pm Paris) Prochain webinaire Artisanat Minier : Projets de filires fermes, suivi des projets dans le secteur des AM et appui des parties prenantes 10 septembre 2013 (16 h -18 h Paris)

Thank you / Merci

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Additional Slides Background on ASM in the OECD Due Diligence Guidance

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OECD Guidance Appendix 1 - Creating opportunities for ASM

The Guidance assumes that legitimate ASM has a key role to play to drive sectorwide change and focuses on means to create market based opportunities for value-creation

The Appendix to the Gold Supplement to the OECD Due Diligence Guidance offers an agreed roadmap to enable market access through collaborative efforts of all actors involved and to create economically viable development opportunities for artisanal and small-scale miners
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Due diligence on gold produced by artisanal and small-scale miners

Risk assessment for ASM gold is more flexible because retrospectively (i.e. top-down) tracing ASM gold can be very challenging Companies that source ASM gold are expected to assist and enable Legitimate Artisanal and Small-Scale Mining producers to build secure, transparent and verifiable gold supply chains: Creates a bottom-up flow of information Detailed Appendix on how to create economic and development opportunities for artisanal miners All stakeholders encouraged to use the suggested measures in the Appendix

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Supplement on Gold: Application

Gold from artisanal source (ASM Gold) Gold from largescale mines (LSM Gold)

Mined Gold

Applies to

Recycled Gold

Grandfathered stocks

After 1 January 2012

Risks in the supply chain of gold from conflict areas

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