Scottish gold mine receives more industry support
Plans to develop Scotland’s first commercial gold and silver mine at Cononish near Tyndrum have received a major boost following significant support for the proposed development during the consultation period.
A number of national and local Scottish organisations, as well as individuals including local residents, politicians and jewellers have offered their support to the planning application for the Scotgold gold mine, following the lodging of an application with Loch Lomond and the Trossachs National Park Authority in July.
The mine is expected to produce 20,000 ounces of gold and 80,000 ounces of silver per year, of which 5,000 ounces of gold will be extracted as unrefined gold bars and identifiable as Scottish Gold.
After the application was hit by a narrow refusal by the Park Board in August 2010, Scotgold – the company initiating the mine’s development – met several times with senior representatives of the park authority to discuss specific reasons for refusal, and sought to address these concerns, which have been worked into the most recent application.
So far, the development has received support from Scottish Tourism Forum, Scottish Council for Development and Industry, Scottish Chambers of Commerce, British Jewellers’ Association, Assay Office Scotland and a number of Scottish MSPs including Annabelle Ewing, Dr Richard Simpson, Murdo Fraser and Mike Mackenzie.
Vivien Johnston, director of luxury ethical jewellery brand Fifi Bijoux, has been involved with the process since its early days and has worked closely with Scotgold’s chairman Chris Sangster on reaching out to the jewellery industry.
Johnston has said of the Scotgold mine project: “The proposed mine is of local and national significance to the jewellery industry. Jewellers as the main end users of gold must find increasingly creative ways of gaining market advantage and Scottish brand in particular would gain a competitive edge by producing jewellery using locally sourced gold and silver for both the domestic and international markets.
“Scotgold have an excellent model for extraction, using the cleanest modern methods which are of minimal environmental impact. The firm has also demonstrated commitment to mitigating the visual impact by reducing the tailings management facility and the restoration strategy which has been submitted is comprehensive and sensitive to the local area and community,” she explained.
Chris Sangster, director and chief executive of Scotgold said: “We clearly delighted with the degree of support we have received from organisations and individuals, not just locally, but from across the UK. Our project will assist in delivering significant direct and indirect employment opportunities, as well as considerable economic investment potential.
“In dialogue with the respective parties, Scotgold has sought to address the environmental concerns that had been raised by the Park Authority and others and we look forward to progressing the project successfully through planning,” Sangster added.
Rapaport about ethical diamond certification by Jeweltree - #fairtrade #diamonds
The concepts “fair trade” and “sustainability” are synonymous and can be used interchangeably — so long as the trade of a product emanating from a certain region economically, environmentally and socially sustains that community, then that product is sustainable and so is considered fairly traded.
“I think the public is interested in it,” observes Toby Pomeroy, president of Oregon-based Toby Pomeroy, a manufacturer of sustainable gold and silver jewelry. “It’s clear that people at some level know we cannot unfairly take advantage of people and we don’t want to — it’s not something anyone wants on their conscience.”
Others point to the public relations problems that the diamond industry has had with conflict diamonds as proof that the time is ripe to begin a sustainability push. “I believe there is a certain readiness factor in any industry, when people are looking for it. And in the jewelry industry, especially, the issues of labor and blood diamonds have taken hold of the social consciousness. A lot of people are concerned. I think that is pretty clear,” explains Dr. Brian Nattrass, chief executive officer (CEO) of Vancouver-based Sustainability Partners, consultants to companies interested in developing sustainable practices.
Some in the industry are already making headway on the sustainability front — like Brian Cook, geologist and co-owner of Nature’s Geometry, based in Laguna Beach, California. Cook operates a mine in Novo Horizonte, in Brazil’s northeastern Bahia state, which is rich in rutilated quartz. “My perspective is, I am involved in the area with my own mining operation and very small artisanal crew,” says Cook, “and while we have safe equipment, and pay good wages, I am trying to show the people that they should also be thinking about investing their resources for the future. And I am trying to lead by example.”
Cook farms organic produce on his land, and is slowly convincing locals to grow sustainable crops to support themselves once their mines run dry. “I see what needs to be accomplished out there. I see that the future, if there is no other way for the locals to make an income is going to be bleak. I am showing that there is another way to bring money into the area.”
Other organizations are also sprouting up to help certify and trace jewelry and diamonds. The Jeweltree Foundation, for example, based in the Netherlands, certifies small- to medium-sized mining companies, with criteria based on international and local standards designed to detect human rights abuse. The organization also certifies manufacturers that adhere to standards developed in conjunction with the International Peace Information Services, a Kimberley Process (KP) auditor.
To oversee its members, Jeweltree has them put their company information and activities into an online database, which is checked regularly for fraudulence. “External auditors check if the members comply with the audit requirements. The database then checks whether the information given corresponds with the data obtained,” explains Mike Angenent, founder of the foundation. Jeweltree also has a “License Holder” program, where companies can resell, and get assistance in marketing and advertising, certified jewelry. “In our experience, it works quite well. It is actually quite foolproof and easy,” notes Angenent.
Small Steps
Though there are many encouraging efforts being made toward sustainable jewelry and diamonds, they are still in the beginning stages and do not encompass a large portion of the industry. As of yet, the diamond and jewelry world lacks the robust sustainable efforts of many other commodities.
Diamonds and jewelry could potentially have a larger and more receptive socially conscious consumer base than other products because of the personal and sentimental relationship people have with these items. “You have a highly visible consumer product to which a lot of emotion is attached,” says Rodney North, of Equal Exchange, a worker cooperative providing fair trade products that is based in West Bridgewater, Massachusetts. North adds that consumers might not fret about paying extra to know that their anniversary gift or wedding ring is not “tainted.”
Not all firms, however, share that view. The current economic instability fuels worries that consumers may be too cautious with their spending to latch onto higher-priced sustainable luxury products. “There definitively has been an economic weakening,” says Pomeroy. “I think people are more price conscious now than they would be in the boom times — it absolutely makes it more of a challenge.”
The need to put power back into the hands of local miners is paramount to building a foundation for future sustainability efforts in the diamond and jewelry world. “Sustainable industries enter into a marriage with their suppliers — it’s not a one-night stand,” says North.
To do this, the industry must get back to its roots. “What has traditionally been an industry that has been dominated by miners is now an industry where miners are marginalized and having to operate illegally,” warns Pomeroy, adding that, for any sustainability effort to be successful, the industry must be realistic and patient. “Is it going to pay off right away? I don’t know — and it may be difficult to get off the ground. But the benefit of feeling good about what we do — that has us winning in ways that dollars cannot.”
The Coffee and Cocoa Model
A good model for the diamond and jewelry industry to examine before launching its own sustainability efforts is the crowned king and queen of sustainable commodities — coffee and cocoa, both of which faced a variety of negative issues in the past. Over the past decade, fair trade coffee and chocolate have pervaded the global marketplace, becoming a staple item in grocery stores, cafes and restaurants. Their rise to the top has fueled new hope that other commodities can catch on to an ever-increasing demand for sustainable products, and usher in a new marketplace of ethical and environmentally conscious goods.
According to the “State of Sustainability Initiatives Review 2010,” (SSI review), published by a host of sustainable development organizations, from 2005 to 2010, sustainable coffee sales grew by 433 percent, with more than 500,000 tons of sustainable coffee — approximately 8 percent of global coffee exports — being sold around the world in 2009. Sales of sustainable cocoa, representing about 1.2 percent of global cocoa sales, rose by 248 percent during the same period, with more than 50,000 tons of sustainable cocoa sold in 2009.
Latin America and Africa
Latin America, the world’s largest coffee-producing area, produces 75 percent of all sustainable coffee globally, even outpacing the region’s conventional coffee production. Latin America also farms over 75 percent of the world’s organic coffee and grows 60 percent of all sustainable coffee certified by the four main Voluntary Sustainability Initiatives (VSI)- — Fair Trade Labeling Organization International (FLO), Rainforest Alliance, UTZ Certified and the 4C Association.
Latin America also is responsible for 48 percent of sustainable cocoa production — an impressive figure when compared to the fact that Africa, according to the International Cocoa Organization (ICCO), is responsible for over two-thirds of global cocoa production.
While it does not have as expansive a range of sustainability efforts as Latin America, Africa — which produces 51 percent of all sustainable cocoa and around 5 percent of all sustainable coffee — has made huge strides in the past few years. According to UTZ Certified, African countries produced over 75,000 tons of sustainable cocoa in 2010, up almost 12-fold from the less than 6,000 tons in 2009.
Sustainable coffee efforts in Africa have also made remarkable progress. This year, Rainforest Alliance announced that it had certified over 6,500 smallholder coffee farms in Kenya and Ethiopia, with more than 430,000 acres of coffee-producing farmland under sustainable management across the continent, including large farms in Tanzania and Malawi.
The Small Farmer Co-Op Foundation
For most VSIs and private certification companies, the foundation of their efforts is the small-scale farmer. According to the SSI review, farmers with less than 12 acres of land produce around 70 percent of all coffee, while the ICCO reports that around 90 percent of all cocoa comes from three million farmers with an average of seven acres of land. These small farmers make it easier for certification organizations to verify each farm’s adherence to sustainability rules. Grouping into cooperative businesses also makes it easier for the organizations to deal with them on a large scale.
“The crux of how we work is with small-scale farmers,” declares North, who claims to have “introduced sustainable coffee to the U.S. in 1986.” He adds that small farmers get more revenue by selling a higher quality, and an ultimately more expensive, product.
Farmers organized into co-ops generally spilt their income, generated by higher revenue or by product premiums, and vote on how excess funds are used to better their community. “Co-ops make it so they can really vote on what the community really needs at that time,” says Katie Barrow, senior manager of public relations for Fair Trade USA, the American arm of FLO. “They can invest some of it on improving the quality of their products, in getting better equipment, or on schools and education.” Co-ops also can act as a community-policing unit, verifying how the money is spent, and making sure farmers are adhering to ethical and sustainable standards. Over time, co-ops can grow to encompass thousands of farmers and multiple communities.
The Big Players
The biggest players in sustainable chocolate and cocoa are the VSIs. Almost 290,000 tons of sustainable coffee certified by FLO, UTZ Certified and Rainforest Alliance were sold in 2009 alone — the same year that those VSIs also sold almost 30,000 tons of sustainable cocoa. These organizations, therefore, certified more than half of all sustainable coffee and chocolate sales around the world.
While all of the VSIs work through farmer co-ops, the rules they set for certified products varies. For example, though all of them raise funds by making their members, which are usually industry companies vying to use the VSI certification logo on their products, pay membership dues, only two — FLO and UTZ Certified — charge a premium to buyers. And while funds raised for this premium go back to the co-ops and farmers, each of the organizations raises it differently.
“We are the only certification organization that has what we call a required ‘social premium,’” says Barrow, explaining that FLO charges 20 cents for every pound of certified coffee and about $200 for every ton of cocoa. FLO also establishes a minimum price for how much a certified commodity can be sold at, which is approximately $2,500 per ton of cocoa and anywhere from $1.01 to $1.40 per pound of coffee, depending on the type.
This stands in stark contrast with the UTZ Certified Model. “What I don’t understand about Fair Trade is how they can have a set price,” wonders Graham Mitchell, general manager for the North American division of UTZ Certified. “We have a market-assessed premium based on the quality on the product,” he explains. “The first buyers of the commodity are basically communicated to by the market to pay a premium based on the quality.” According to the SSI report, the average UTZ Certified premium for coffee over the past five years has ranged between three cents and six cents per pound.
The differences between the two VSIs are more than just differences in price — there are also differences in sustainability philosophy. “We don’t really encourage payment of premiums to farmers — we like to see them produce more to make more,” notes Mitchell, adding “What we pride ourselves on is getting more productivity with the farmers, so they can improve their economic condition.”
FLO, on the other hand, believes in a more hands-on philosophy, where farmers pay to get certified, but are also guaranteed certain profits. “The reason for them to pay for the cost of certification is so that we know they are really serious and invested in this — it’s an investment on their part, and it’s important to make sure that they are really committed,” explains Barrow.
Private Initiative: Starbucks
VSIs are gaining popularity within the private sector, with brands like Sara Lee and Folgers Coffee teaming up with UTZ Certified and Ben & Jerry’s and Hershey’s Dagoba Organic Chocolate partnering with FLO. There are, however, a handful of companies that take on certification for themselves — the most notable and influential of which is Starbucks.
In early 2000, Starbucks started discussions with Fairtrade USA to see whether the two could form a partnership to certify Starbuck’s products. The company, however, soon realized that the VSI was not developed enough its handle its demands. “At that time in 2000, Fairtrade was only looking at the working conditions and at the workers — it was not looking at environmental issues and issues of quality,” says Nattrass, who worked with Starbucks on its efforts. “Starbucks is a rapidly growing chain,” he adds, “and it needed to assure itself of a high volume of high-quality and environmentally safe coffee.”
To meet its demand, in 2004, the company started the Coffee and Farmers Equity Practices (C.A.F.E.), a buying guideline program that ensures Starbuck’s suppliers are using green and sustainable practices. Every supplier enrolled in the program is checked through a third-party verifier for four pivotal standards: product quality, economic accountability, social responsibility and environmental leadership.
Starbuck’s unique “in-house” certification program was so successful that it broadened the scope of many up-and-coming VSIs around 2000. “Starbucks worked with them over the years. And remember that Fair Trade has a very different meaning now than it did ten years ago — it was only concerned with workers’ rights. But now, for certification programs, protecting the environment and economic productivity go hand in hand with protecting the communities and workers.”
Cocoa and Coffee to Carats
The success of coffee and cocoa’s sustainability efforts have relied on bringing communities into long-term relationships with buyers and manufacturers. The ability for sustainability depends not only on controlling the suppliers at the first point of the supply chain, but also on building up communities around the suppliers to insulate them from exploitation and conflict.
The diamond and jewelry industry must adopt a similar long-term approach. “The biggest challenge in our industry is getting miners and producing organizations certified,” Pomeroy says. “Having those miners in the field educated is pivotal to any future successes.”
“Nowadays, virtually every major corporation has a corporate sustainability strategy,” explains Nattrass. “Most companies realize that doing business in the 21st century means that you are not just concerned about your own profits, but are instead interested in creating ‘shared value’ with your customers and with the people who produce your merchandise.”
Scotland moves closer to opening first gold mine - #eco #gold
JT: Jeweltree advisor and License Holder Vivien Johnston of Fifi Bijoux is currently engaged with the first ecological Scotish gold and silver mine.
Scotland is now a step closer to opening its first commercial gold and silver mine.
The mine is expected to produce close to 20,000 ounces of gold and 80,000 ounces of silver per year, of which 5,000 ounces of gold will be extracted as unrefined gold bars and identifiable as Scottish gold.
Chris Sangster, the director and chief executive of Australian-owned company Scotgold Resources, which is working on the site, has been pleased with the response to the mine’s development to date. He said: “We are delighted to be in a position to be lodging this planning application and are exceptionally pleased with the overwhelming support we have received locally and nationally. Our project will assist in delivering considerable economic investment potential.”
The plan for the mine has been in the pipeline for more than 15 years. Planning permission was first granted in 1996 but faced a planning rejection last year on predominantly aesthetic grounds. The project moved a step closer in the third week of July, however, as the Planning Application for development by Scotgold was submitted to Loch Lomand and the Trossachs National Park Authority.
The rural location of the mine sits close to two national parks – the Argyll Forest Park and the Queen Elizabeth Forest Park – and is surrounded by a number of smaller lochs, and concerns for the impact on the environment have been raised.
Sangster explained: “A lot of time and effort has been taken to address the environmental concerns raised by the Park Authority and we will hopefully be able to progress the project successfully through planning.”
Vivien Johnston, founder of ethical jewellery brand Fifi Bijoux, which is based in Scotland, contacted Sangster more than two years ago regarding the environmental impact of the mine. After finding out more about the processes Scotgold are going to use, she has taken on a consultancy role for the company and now works closely with Sangster on the project.
“I am excited about the gold,” said Johnston. “Its traceability is positive and it is an accessible ethical choice, especially for jewellers working in Scotland. I’ve spoken to jewellers about it and the feedback about a potential Scottish gold product has been really positive. Some are a little ambivalent about the Scottish element specifically for their brand but are more interested in the ethical aspect. Jewellers are pleased that they will be able to offer it in their stores.”
Johnston has spoken with many independent jewellery retailers in Scotland, as well as some larger Scottish companies, and some are considering working with and potentially distributing the gold.The next step however is the re-submitted planning permission, which both Sangster and Johnston are feeling confident about.“There was previous permission years ago but this had expired,” Johnston explained. “Since then the nearby national parks had moved their borders [when the parks increased in size]. The planning rejection last time was a narrow miss.”
The project has the potential to create more than 50 full-time jobs for the local community, which currently relies on the seasonal tourist trade. Scotgold said that if the mine does open the majority of the 52 jobs on offer will be filled by locally available skilled persons. Further employment opportunities will also be raised through the companies working with Scotgold and the mine, through construction, logistics and general working operations.
The geological make up of the area around the planned mine site is rich and its location is on a major tourist route heading west towards Oban and north towards Fort William.
Scotgold has been undertaking studies around the Cononish site for the past three years. Further drilling has taken place and ecological surveys have been carried out to update the information gathered at the time of the original planning permission received in 1996.
Scotgold believes the project will boost local tourist numbers and spend in the area, and beyond the value of the gold and silver mined at Cononish, it is estimated that as much as £80m in additional economic activity could be generated in Scotland through the wider supply chain as a result of the establishment of the mine.
“This will enhance tourism spend and employment opportunities, and develop a jewellery manufacturing industry based on true Scottish gold,” said Iain Herbert, chief executive of the Scottish Tourism Forum.
Confessions of an Economic Hit Man - By John Perkins
Amazon.com Review
Perkins writes that his economic projections cooked the books Enron-style to convince foreign governments to accept billions of dollars of loans from the World Bank and other institutions to build dams, airports, electric grids, and other infrastructure he knew they couldn't afford. The loans were given on condition that construction and engineering contracts went to U.S. companies. Often, the money would simply be transferred from one bank account in Washington, D.C., to another one in New York or San Francisco.
The deals were smoothed over with bribes for foreign officials, but it was the taxpayers in the foreign countries who had to pay back the loans. When their governments couldn't do so, as was often the case, the U.S. or its henchmen at the World Bank or International Monetary Fund would step in and essentially place the country in trusteeship, dictating everything from its spending budget to security agreements and even its United Nations votes. It was, Perkins writes, a clever way for the U.S. to expand its "empire" at the expense of Third World citizens. While at times he seems a little overly focused on conspiracies, perhaps that's not surprising considering the life he's led.
Product Details
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Unfair Trade: The Truth Behind Big Business, #Politics and #Fair Trade - By Conor Woodman
Product Details
- Paperback: 240 pages
- Publisher: Random House Business Books (June 28, 2011)
- Language: English
- ISBN-10: 1847940692
- ISBN-13: 978-1847940698
- Product Dimensions: 9.1 x 6 x 0.9 inches
- Shipping Weight: 11.4 ounces
- Average Customer Review:





