Commitment was signed by Valcamby, Argor-Heraeus, Metalor, MKS Pamp and PX Précinox
06/28/2022
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Statement illustrates growing scrutiny surrounding gold mined in the Amazon rainforest — Foto: Unsplash
Swiss gold refiners, among the world’s largest, have pledged not to import gold from indigenous territories in the Brazilian Amazon, in a first-of-its-kind statement that illustrates the growing scrutiny surrounding material from the forest.
Refiners Valcambi – considered the largest in the world –, Argor-Heraeus, Metalor, MKS Pamp and PX Précinox, as well as the Swiss Association of Precious Metals Manufacturers and Traders (ASFCMP), have made a “commitment not to deal with gold from indigenous territories of Brazilian Amazon, and to take the necessary technical and humanly possible measures in order not to take, import or refine illegal gold including the one from Brazil by tracing and identifying this gold,” according to the English version of the document.
They also condemn and reject “any mining activity linked to the protected areas of the Amazon without the free, prior and good faith informed consent of the impacted communities.” They condemn the use of mercury, and call on the Brazilian government to protect the environment and indigenous communities. The document also says that they share the concerns of the indigenous nations surrounding Bill 191/2020, which would open up indigenous lands to mining and other commercial activities.
The commitment is the result of dialogues with NGOs that culminated in a meeting in Bern, the Swiss capital, of the refineries with a delegation from the Amazon, including representatives of the Munduruku Wakoborun community (from Tajapós), the Xingu Vivo Para Sempre movement, the Aliança Volta Grande do Xingu, and Amazon Watch, mediated by the Society for Threatened Peoples (SPM).
SPM co-director Christoph Wiedmer says the declaration of intent is unprecedented in the Swiss raw materials industry. The question now is how it will be implemented, he says. No consensus has been reached on the central issue of transparency in the gold supply chain for Switzerland.
“Brazilian authorities said that in 2020 and 2021, 5 tonnes of dubious gold left for Switzerland,” Mr. Wiedmer notes. “We are still looking for where this gold went, because the Swiss refineries say they didn’t import it.”
Christoph Wild, president of the Swiss Association of Precious Metals Manufacturers and Trader, says Switzerland imports gold from all over the world “including Brazil, but mined legally and according to international standards.” And that it does not import the precious metal from the Amazon in any case, knowing that it is quite sensitive. The joint statement with NGOs, he added, seeks to show attention to sustainable supply chains.
Switzerland is the second-largest gold importer in the world, the leading exporter, and a global center for trading the precious metal. Non-governmental organizations often complain that the country is far from being able to guarantee the origin of imported gold.
Globally, gold extraction reached 3,300 tonnes in 2019. The largest producer was China with 380 tonnes, followed by Australia, with 325 tonnes, and Russia, with 305 tonnes. Brazil has a production of 90 tonnes, while Peru produces 128 tonnes.
A report by the WWF estimates that between 50% and 70% of all gold traded worldwide physically transits through Switzerland – figures that players in the industry dispute, saying it all depends on the definition used, whether it is gold mined, ingots, or otherwise.
According to WWF, a good part comes from countries that do not produce the precious metal, such as Great Britain (imports of 130 tonnes), United Arab Emirates (128 tonnes) or Italy (68 tonnes), due to a multi-faceted trading system that prevents gold from being traceable.
Last week, Swiss Customs data showed that more than 3 tonnes of gold were shipped from Russia to Switzerland in May, in the first major shipment since the Russian invasion of Ukraine in February, and thus a twist to international sanctions against Moscow. The G7 countries have decided to ban gold imports, in a decision announced over the weekend in Germany.
*By Assis Moreira — Geneva
Source: Valor International