The Conflict-Free Gold Standard: What is it & Why it Matters: Part 2

In a previous blog post, we explained why the Conflict-Free Gold Standard is important and how it benefits both gold mining companies and the regions in which they operate.

To provide guidance for companies on how to mine gold responsibly – especially in high risk regions – the Conflict-Free Gold Standard can be generally described as a five-part process.

Conflict Assessment

First and foremost, the geographic area where gold operations are to take place is assessed for international sanctions and civil conflict.

Company Assessment

This applies to the company proposing to extract and refine gold in the area. It must demonstrate that it has the right policies in place (security, commitment to human rights, community engagement, whistle-blower programs, and more) to operate responsibly in the area.

Commodity Assessment

This refers to tracking the gold produced in the area. The purpose of the commodity assessment is to create appropriate management systems to ensure that the gold is secure, that theft is minimized, and that transporters of the gold are vetted and committed to conflict-free gold.

Externally Sourced Gold Assessment

It isn’t common, but sometimes gold from somewhere else is brought onto the site in question. This part of the CFGS ensures that externally sourced gold is also conflict-free.

Statement of Conformance

Finally, the mining company makes a declaration to refiners and other gold industry members that they comply with the CFGS.

Corporate transparency is required to remain compliant with the CFGS. While the company is operating in the region, they must adhere to 3rd party auditing and transparent public disclosures. Because of this, if a company becomes non-conformant with the CFGS, every other member of the gold supply chain is notified – which can seriously impact business and profitability. Fortunately, miners, refiners, and international NGOs all describe the CFGS as a major step forward in providing trust and transparency in the gold supply chain.

 

 

Manhattan Gold & Silver Update

We’re currently open from 9:30am – 4:00pm Monday-Friday.  Customers are now allowed to enter the exchange with a mask and witness melts as usual.

If you have any questions you can still contact us at 212-398-1454 and sign up for our newsletter for further announcements.

Most importantly, please stay safe! 

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