Earlier this year, the World Gold Council, published its Conflict-Free Gold Standard, an industry-led approach to combat the potential misuse of mined gold to fund unlawful armed conflict.

The World Gold Council developed the Conflict-Free Gold Standard with its member companies, comprising the world’s leading gold mining companies, and with extensive input from governments, civil society and supply chain participants.

The Council is an industry organization made up of 23 companies representing approximately 60 per cent of global corporate gold production.

Starting January 1, 2013, participating companies will be required to publicly account for their compliance with the Standard in the form of a Conflict-Free Gold Report, published either in company documents such as its annual financial or sustainability report, and this must appear on the company’s website.

These annual reports must cover activities over a 12-month period, and after 2013 external assurance will be required on these disclosures.

By following this Standard, gold miners can assess their operations and provide assurance that they do not cause, support or benefit unlawful armed conflict, nor contribute to serious human rights abuses, or breaches of international humanitarian law.

It is designed to increase trust and transparency in the gold supply chain. It provides further confidence that responsibly undertaken, gold mining is an important source of social and economic development.

Pierre Lassonde, Chairman of Franco-Nevada and the World Gold Council Board member responsible for leading the development of the Standard, said: “I’m proud to have led the work to design the Conflict-Free Gold Standard. The supply chain for gold is highly complex and this Standard represents a major step towards eradicating gold that fuels conflict from the legitimate supply chain.”

“I am particularly pleased by the extent to which we have been able to work with governments and civil society, as well as industry partners, in devising a framework that commands wide support and credibility,” he added.

Members’ active support of the World Gold Council represents their shared vision of ensuring a sustainable gold mining industry, based on a deeper understanding of gold’s role in society, now and in the future, notes the Council’s website.

Member companies include: African Barrick Gold plc, Agnico-Eagle Mines Limited, Alamos Gold Inc., AngloGold Ashanti Limited, Barrick Gold Corporation, Compania de Minas Buenaventura S.A.A., Centerra Gold Inc., Eldorado Gold Corporation, Goldcorp Inc., Gold Fields Limited, Golden Star Resources Ltd, IAMGOLD Corporation, Kinross Gold Corporation, Newcrest Mining Limited, New Gold Inc., Newmont Mining Corporation, Primero Mining Corp., Yamana Gold Inc.

Ian Telfer, Chairman of the World Gold Council and Goldcorp, noted: “Responsible gold mining is an important contributor to both economic growth and social development in gold-producing countries. We believe that, where it is responsibly undertaken, gold mining and its related activities can play a crucial role in achieving sustainable development and alleviating poverty, as well as contributing to sustained economic growth.”

Companies will be required to publicly report on their conformance, and external assurance will be required on this disclosure.

The Standard will act as an ‘Industry Programme’ to operationalise the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

It is also designed to complement and integrate with other industry-led initiatives including the London Bullion Market Association’s Responsible Gold Guidance.

Canada has been a world leader in the pursuit of higher standards of conduct for companies in the extractive industries sector.

In November, International Cooperation Minister Julian Fantino announced that the University of British Columbia (UBC), working in a coalition with Simon Fraser University (SFU), had been selected to operate the new Canadian International Institute for Extractive Industries and Development. (See GLOBE-Net article “UBC-SFU to partner on new Extractive Industries Institute”.)

The GLOBE Foundation is one of the Strategic Partners supporting the UBC-Simon Fraser coalition.

Canada’s approach to natural resource management is to help developing countries to improve the financial and economic management of their natural resources, including establishing sound taxation and revenue-management systems.

Helping to establish public policies that encourage private investment and reduce corruption through greater transparency and accountability will be part of the Institute for Extractive Industries and Development mandate.