While the United States, Australia, South Africa and China are among the top gold-producing countries in the world, there is a scrum in the third world countries to increase their prospecting and offering the chance for a better and cleaner company. Peru, Indonesia and Ghana are among many countries that the mining lake. Accelerated production rates, following the spike in gold prices since 2008 economic downturn, the incentive. At the same time there are concerns about the environment and human rights implications raised.
Gold mining creates both challenges and opportunities. Problems arise when the environment is degraded and forced labor occurs. But there are opportunities for companies that go beyond gold itself: durability standards can create companies that make mining more efficient, environmentally safer, and create better working conditions.
The World Gold Council has decided “conflict norms”, which a spokesman says that will be introduced this year. “The draft standard contains a demanding context of benchmarks and guidance, enabling companies to the adequacy of their systems to assess and analyze their impact on those around them,” said Justine McGuinness, a consultant for the World Gold Council in London.
The Gold Council, in consultation with governments, investors, community groups and industry representatives’ requests for input from a wide range of participants to accountability and transparency in the design and layout of the standard to promote, “he says. June last year unveiled its standards initiative to combat ‘conflict gold. ”
It is a must. And conflicting standards should be established sooner rather than later.
In Guatemala, the Philippines and Peru protests broke out in unsuitable conditions and durability. Mining is a dirty business – creating more toxic waste than any other company in the U.S., for example – and points to the local habitat. Only one ounce of gold requires tons of stone to be hacked and vats of hazardous chemicals. Moreover, gold mining often takes place in areas where rebels and other types of bad rule, employees have little or no rights.
The industry problems were so bad that retailers actually started speaking up and out.
Chief executive Mark Kowalski, Tiffany’s has gone so far as to take out full page advertisements in major publications, calls for a higher mining standards.
“Tiffany & Co. is committed to obtaining precious metals and gems and editing of our jewelry in a way that is socially and environmentally responsible. It’s simply the right thing to do, and our customers expect and deserve nothing less” Kowalski says.
Besides being the right thing to do, if true conflict standards are included within the gold industry, complementary businesses turn off. Investors, beware. Wastewater treatment and clean energy business operators are free when sitting its CSR reporting companies and due diligence audit firms. Indeed, I spoke with several South American consultants bait with anticipation for a conflict of standards be established.
Mining is an important source of income for many developing countries. But that does not mean that standards should be sacrificed and the locals have to suffer. Instead, new firms a better social and environmental impact to promote thrive on the coattails of the profits of the gold industry.
The Kimberley process – despite its flaws – went a long way toward making the world aware of the “blood diamonds” and setting the stage for better working conditions in the gemstone industry. Transparency and accountability throughout the supply chain should be de rigueur in any business, especially those companies that most damage to people and the planet.
Creating new standards. Creation of new firms. A better world, yea, the world.
source:marketwatch
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