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premuim 2nd consultation© Nigel Wright

 August 22 2013

Consumers purchase ethically certified gold on the belief they are contributing to making a difference in the mining communities. Only a decent FAIRMINED Premium can ensure that this positive impact really happens. Consultations with the miners clearly indicate the premium is the primary incentive for them to meet the standard requirements and the means by which they can aspire to attain their developmental goals to provide a better life for themselves and their families.

We are currently reviewing the FAIRMINED model to make it more cost-effective. Rather than lowering the premium and reducing the development impact for the miners, ARM is exploring alternatives to lower the costs of participating in the FAIRMINED supply chain:

  • ARM will not be charging licensees for the use of the FAIRMINED label. We are replacing the costly licensing fee with a lower FAIRMINED Development Fee, envisaged to be between $500-$700 USD/kg of certified gold.
  • FAIRMINED will explore partnerships with other responsible supply chain initiatives, to look into possibilities of lowering the systemic costs by recognizing relevant audits.
  •  We will add a flexible “Incorporating FAIRMINED Supply” model. This is a measure being introduced to reduce associated costs estimated at 2-3% and allow for the flow of larger volumes to be incorporated into purchasing policies.

Before significantly reducing the premium, all other alternatives should be exacerbated. We invite you to read the explanatory document “FAIRMINED Premium rationale and alternative cost-effective changes to the FAIRMINED model” and participate in the standard consultation to share your views on this topic

 

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Our vision is to transform the ASM in a formalized, organized and profitable activity that uses efficient technologies and is socially and environmentally responsible; that it progressively develops within a framework of good governance, legality, participation and respect for diversity;
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