Ethical Gold
If there has been any aspect of the jewellery supply chain that has seen genuine progress in the last 10 or so years then it’s gold. Jewellery accounts for roughly half of the demand for gold every year, and initiatives with their roots in the jewellery industry have been at the forefront of driving change in small-scale gold mining. Today, Fairtrade and Fairmined both supply gold from small-scale artisanal miners in South America, Africa, and Asia, offering a fully traceable source of gold. These mines must maintain high working and environmental standards and the mining communities benefit from a premium, as well as a guaranteed fair price for the metal they extract. These organisations represent the best option for buying gold that has a reduced impact on the planet and that benefits those who work to extract it.
Gold mining in the Amazon.
This isn't to say that everything is rosy; Fairtrade and Fairmined gold account for a tiny fraction of the gold that is mined every year and what progress that has been made has been hard fought for and is always somewhat fragile. The mining of gold is still responsible for environmental damage and people die mining for gold every day in some of the world's poorest countries.
There are an estimated 10 million people worldwide who rely on gold mining for a living, with many of them working in the artisanal mining sector, and more needs to be done to help them and to protect the areas in which they work.
In this article, we will look at the specific issues that gold mining causes and the solutions that have been implemented to improve the situation, as well as outline how you can make the best decision when it comes to buying gold jewellery.
The issues
There are both human and environmental issues created by the gold supply chain, and they all start at the mine. There are various different types of gold mines that are located in different countries around the world. The type of mine, as well as its location, have a bearing on the types of issues. For instance, a huge open-pit mine in Canada has different issues when compared to an individual miner panning for gold from a stream in Sierra Leone.
Dangerous working conditions
Mines are dangerous places to work, even with modern health and safety equipment and standards, a luxury miners in developing countries don’t have. Flooding, cave ins, falling rocks, slips and falls, lack of oxygen, these are just some of the pit falls that small scale miners face.
Women's rights & education
Picture a miner and you're probably imagining a man, face blackened by soot, wearing a helmet with a little light on the top; however, in the small-scale artisanal mining sector, women make up between 40-50 % of the workforce.
Women face the same tough conditions as men in mines, as well as specific gender-based challenges and discrimination. Research has shown that the money earned by women is often used for household needs and to support children. (as opposed to the money earnt by men which is often spent on other things)
Exploitation
Often people (especially women and children) who work in mines face exploitation. At worst this means forced labour without pay though often it means poor pay and long hours.
Enviornmental issues in gold mining
The Carbon Footprint of Gold Mining
In large-scale mines, a huge amount of energy is used to power large machines that dig, transport, and separate the rocks that contain gold. As most of the energy used comes from fossil fuels, this energy consumption comes with a significant carbon footprint. As the exact energy make-up of each country is different, the exact carbon footprint of each mine will be too, so it’s difficult to precisely quantify the impact.
As the world transitions to rely less on fossil fuels, this footprint will decrease. However, the actual energy consumption will likely remain high, as the mine will still require the same amount of energy.
In small-scale mines, little machinery is used and miners use simple hand tools to break rocks. Often, any machinery that is used is powered by a petrol generator.
Water Usage
Water use in gold mining dates back to the time of the Romans, who diverted streams and rivers to use the water to wash away the topsoil in order to reveal gold-bearing rock. Even today, a large amount of water is still used in gold mining.
Hydraulic mining is used today in both above and below-ground mining, and water is used to transport gravel and during the separation process.
As freshwater is an increasingly scarce resource in many parts of the world, its use in mining has an obvious impact. When water is being used in mining, it is not being used to irrigate crops, in hydroelectric plants, or being made available as drinking water.
Mercury
Mercury is often used by small-scale miners to help refine gold and the vapours, as well as liquid mercury that gets in soil, can have a damaging effect on the environment as well as people's health.
Human rights issues in gold mining
Gold mining is not only hard and dangerous work, but, because of the limited economic opportunities, often the only option for people to earn money in rural and underdeveloped areas. This means that miners are already at a disadvantage and unable to negotiate for better pay and better conditions.
Low Pay and Exploitation
Many small scale gold mines are located in developing countries where few other opportunities exist. And whilst its true that areas where gold mines
Supporting Conflict
Some gold mines are located in areas that are involved in conflict and in many cases gold from these regions help to fund these conflicts. The 2016 report ‘River of gold’, by Global Witness, detailed how gold from the DRC was used to fund conflict in the nation.
Whilst diamonds have got most of the attention when it comes to funding conflict (there was a film about it), gold has always had a role to play as well.
Ethical gold jewellery
Fairmined Gold
Fairmined gold is a certification body that began with small-scale mining collectives in South America and today the Fairmined standard ensures that mining communities receive a fair price for their gold, as well as an extra premium to maintain their mines and develop their communities.
Fairmined Eco gold
Fairmined Eco Gold adds another layer of environmental protection to the mining process, as miners do not use toxic chemicals, most notably mercury, native ecosystems are restored, and there are additional requirements to minimise ecological disruption.
Fairtrade Gold
Fairtrade gold is gold that is certified by the Fairtrade Foundation and comes from mines in South America, Africa, and Asia. Fairtrade gold can be traced back to the mine that it came from and mines must meet strict environmental and worker safety standards to be certified as Fairtrade.
Fairtrade gold miners do not use mercury to refine their gold.
Click here to learn more about Fairtrade gold.
Fairtrade Gold Jewellery
Fairtrade gold can be made into all types of jewellery and is a great ethical alternative to normally mined metals. The look and feel of Fairtrade gold is exactly the same as any other type of gold and is hallmarked in exactly the same way.
Who Benefits From It?
Predominantly, the miners benefit from being Fairtrade certified because they receive a Fairtrade premium on top of the fixed price they receive for their gold.
They also benefit from the support they receive to make their mine a safer place to work.
One observation is that the high standards required for Fairtrade and Fairmined certification leaves out miners in the very poorest regions and other schemes to help these people are being discussed.
Brushed finish 9ct Fairtrade yellow gold band
History of Gold Mining
Gold is the metal that is most widely used in jewellery and has been for centuries. For as long as gold has been mined, it has been used in objects that communicate wealth and prestige. The extraction of gold can be difficult and dangerous work and that has been recognised for millennia.
Around half of the demand for gold every year is for jewellery, so the jewellery industry can wield significant leverage in changing the face of how this gold is extracted. If it wants to, that is.
Is Recycled gold a good option?
In a word, no. Gold has always been recycled, not because of a deep commitment to sustainability, but because of its monetary value. This means that the ills of the gold industry continue despite a very high percentage of the gold ever mined either still being used for its original purpose or has been reused in some way.
It is the demand for gold that keeps gold mining going.
The misleading of ‘recycled’ gold as being more ethical or sustainable is the most significant greenwashing issue in the jewellery industry today and there is growing recognition within the industry. If you are interested in the issue then below are some good articles
As good as gold? Bullion funds grapple with ethical investing