From Mines to Markets Developing Feasible Systems of

From Mines to Markets Developing Feasible Systems of Fair Trade for Gems and Gold Sally Dickinson De. Leon The University of Vermont, Rubenstein School of Environment and Natural Resources Email: sarah. deleon@gmail. com

Looking at the Big Picture… The appropriate public policy question is not should we or should we not promote mining in the developing countries, but rather where should we encourage it and how can we ensure that it contributes as much as possible to economic development and poverty alleviation. ~ Davis & Tilton (2003: 2) Identify Key Variables that determine efficacy of CSR and ethical policies for social and environmental improvements in ASM gemstone and gold mining

ASM Jewelry Supply Chain

Different Rules for Different Jewels Diamonds Cannot easily be traced to origin Competition with other ethical models from large mines in developed countries) Colored Gemstones Primarily produced by small mines Rubies & Sapphires can often be traced Emeralds from Colombia can be traced Gold Flakes can be traced to mercury-free methods (gems

A Typical Sapphire Chain Photo Credits: S. Ali, V. Pardieu, L. Tilghman, CASM & AGTA

The Business of “Fair Trade” “In building my company’s marketing and branding plan, we looked at the mines we worked with, the people involved, the beauty and history of the products, the culture and clothing of the people who cut the stones, and, just as important, the needs and desires of the consumers who will buy them. ” ~ Eric Braunwart

Certification Standards A Learning Process Approach learning to be effective--> efficient --> and finally learning to expand (Korten 1980) Fair Trade Certified Coffee Maintenance of democratic governance structures in certified grower groups that allow for both business competitiveness and broad producer support that stems from transparency and broad participatory decision-making is difficult to achieve (Taylor 2005 a; 2005 b)

Auditing for Certification Business Supply-Chain Oriented Models Columbia Gem House, Inc: Fair Trade Gem Protocols Relies on vertical integration, communication, and executive leadership Other Models Coffee: producer cooperatives--> roasters --> retailers Timber: forest managers --> mills --> manufacturers --> retailers Diamonds: government --> govt. --> retailers Gold: ARM’s Standard Zero

Mineral Traceability Diamonds being a pure form of carbon cannot be traced to Origin (unless colored with impurities) Some colored stones can be traced using physical and chemical properties (cost consideration makes it feasible only for high-end stones) Gold can be traced to production method (mercuryfree) but not yet reliably to geographical origin

Conclusions Carefully designed Polices will be adapted for the opportunities and challenges presented by ASM Big Picture Understanding Localized solutions Colored Gems present a unique and complex opportunity if we can have a positive partnership between gemologists, traders and jewelry manufacturers

For More Information Sally Dickinson Deleon sarah. deleon@gmail. com Gems and the Environment www. gemecology. org Ecominerals Listserve: www. uvm. edu/~shali sign up for news at the bottom of webpage

Citations Davis, G. and Tilton, J. (2003). Should developing countries renounce mining? A perspective on the debate. Retrieved 17 March, 2007, from http: //www. icmm. com/uploads/62 Tilton. Davisfinalverson. pdf Hughes, R. W. (1997). Ruby & Sapphire. Fallbrook, California, USA: RWH Publishing. Hylander, L. D. & Plath, D. (2006). Microscopy and certification as tools for environmentally benign, mercury-free small-scale gold mining. Science of the Total Environment, 368: 371 -383. Korten, D. (1980). Community organization and rural development: A learning process approach. Public Administration Review, 480 -511. Roskin, G. (2006). Playing Fair. JCK-Jewelers Circular Keystone, May 1 st. Taylor, P. L. (2005 a). In the market but not of it: Fair Trade coffee and Forest Stewardship Council certification as market-based social change. World Development, 33(1): 129 -147. Taylor, P. L. (2005 b). A Fair Trade approach to community forest certification? A framework for discussion. Journal of Rural Studies, 21: 433 -447.