Ethical mining: the path of small-scale mining organizations - Fairmined (2024)

Fairmined > Blog > Ethical mining: the path of small-scale mining organizations

An opportunity for the market to understand the challenges that the small-mining sector has to face.

The path of ethical mining, along with the process to obtain the Fairmined certification and its benefits, bring different challenges to small scale mining organizations. They have to comply with some strict, progressive requirements every year (organizational, work-related, environmental, physical and documental traceability of Fairmined minerals) that have to be approved by external audits.

This is a path that demands commitment, dedication and determination, it implies an investment on resources (time, people and money) and working adjustments in the process towards ethical mining. It is an effort that is recognized and rewarded by the market.

Main challenges that mining organizations find on the way to the Fairmined certification, valued by the ethical market:

Challenges towards formalization

The whole mining organization must be legally constituted, even if some parts are not certified. This is a big challenge considering that worldwide 70 to 80% of small scale miners work informally. Support small scale mining formalization!

Improve working conditions

Mining organizations must implement clear policies that guarantee the wellbeing of all of their workers. This includes salaries and schedules according to the law, health and safety at work regulations (including risk control of the activities, supply of personal protection elements, and training). Labor rights in mining must be guaranteed!

Non-discrimination policy

Miners must have clear non-discrimination policies and mechanisms that guarantee equal participation and dialog of all members, as well as education to avoid gender violence. Support gender equality!

Traceability

Mining organizations must establish an Internal Control System exclusively for Fairmined metal extraction and sales, guaranteeing physical and documentary traceability starting from mineral digging all the way to metal obtaining. For Fairmined sales, the transaction report on the Fairmined Connect platform guarantees mineral traceability to the market. Get to know the origin of your gold!

Environmental Protection

Ethical small-scale mining must develop progressive plans for reducing the use of chemical substances, with procedures and technologies for their proper handling that ensure minimal environmental impact. Also, they must work taking care of their surrounding environment by preserving intervened areas and recovering the ones affected. It is a great challenge to work on that considering the environment. They need advice and people who understand that small scale mining can be handled responsibly.

Commercialization

It is a challenge to understand gold trade and establish written commercial agreements with its Fairmined metal buyers, thus guaranteeing transparency in each sale. For this, men and women miners must have good economy knowledge, be advised and supported so their rights are respected and they can trade properly. Support fair markets!

Ethical mining: the path of small-scale mining organizations - Fairmined (2)

References of good mining practices

Improving on all these aspects is not an easy task to achieve, that is why there are mining organizations that cannot keep their Fairmined certifications, or that it takes them enormous efforts to do so.

Mining organizations that reach the certification prove that with dedication, hard work and support from the market year after year, it is possible to improve mining practices. These organizations become a beacon of ethical mining and a positive transformation engine for the whole community.

Join the Fairmined initiative to support mining organizations. Summit our contact questionnaire and we will get in touch.

Here you can get to know the stories and achievements from certified mining organizations in Colombia, Peru, and Mongolia.

Ethical mining: the path of small-scale mining organizations - Fairmined (2024)

FAQs

What are the ethical issues with mining? ›

Environmental impacts caused by mining could include deforestation, relocation of communities, diverting rivers if a dam is needed for power purposes – the list goes on and on. Indeed, it is hard to identify a part of the world where resource extraction is expanding without conflict.

What is a fairmined gold? ›

WHAT IS FAIRMINED? Fairmined is an assurance label that certifies gold from empowered responsible artisanal and small-scale mining organizations who meet world leading standards for responsible practices.

Why is small-scale mining bad? ›

The surge in artisanal and small-scale gold mining (ASGM) has led to negative environmental outcomes particularly due to the widespread use of mercury.

Is small-scale mining profitable? ›

Artisanal and small-scale mining (ASM) is a vital source of non-farm rural income across much of the Global South, and a key provider of jobs and livelihoods in South America, Africa and Asia.

What are 3 examples of ethical issues? ›

ETHICAL AND SOCIAL ISSUES
  • Privacy and Confidentiality. Privacy has many dimensions. ...
  • Socially Vulnerable Populations. ...
  • Health Insurance Discrimination. ...
  • Employment Discrimination. ...
  • Individual Responsibility. ...
  • Race and Ethnicity. ...
  • Implementation Issues.

What are the four major ethical issues? ›

The most widely known is the one introduced by Beauchamp and Childress. This framework approaches ethical issues in the context of four moral principles: respect for autonomy, beneficence, nonmaleficence, and justice (see table 1).

What are the advantages of small-scale miners? ›

Benefits to small-scale miners would include more efficiency and longevity at sites, minimized environmental degradation and improved profitability.

What is small-scale mining called? ›

Artisanal and Small-Scale Mining (ASM) is mineral extraction by individuals, cooperatives, or small companies with minimal capital investment and with much use of manual labour.

What is the most harmful type of mining? ›

Underground mining is one of the most hazardous types of mining due to the confined spaces, unstable ground, and potential for cave-ins. Miners must work in cramped quarters in low light and often in wet conditions, making it difficult to move around safely.

How much does a small mining rig make? ›

For example, a rig of six MSI GeForce RTX 3080Ti graphics processing units (GPUs) will be most profitable when mining Ravencoin (RVN) and bring around $170 per month. Zcash (ZEC) can bring in almost the same revenue while mining Clore (CLORE) can earn $158 per month.

What type of mining is most profitable? ›

Crypto mining presents the opportunity for passive income by generating new coins and validating transactions. The most profitable cryptocurrencies to mine include Bitcoin, Ethereum, Ravencoin, Litecoin, ECOSECOS, Vertcoin, and ZCash.

Can you actually make money mining? ›

Bitcoin mining can be profitable if you contribute enough hashing power to a mining pool to receive larger rewards.

What are examples of ethical issues in data mining? ›

Ethical Concerns in Data Mining
  • Transparency: Customers should have a certain amount of visibility into and control over how their data is collected and used. ...
  • Personal data: Currently, there is no industry or political standard in the U.S. regarding the legal parameters or definition of personal data.
Nov 23, 2022

What is the biggest issue in mining? ›

The mining industry plays a crucial role in the global economy, supplying essential resources for various sectors. However, it also faces significant challenges related to sustainability, demand uncertainty, technological disruption, workforce skills, and operational costs.

What are the ethical issues with mining lithium? ›

Many of the world's lithium reserves are in developing countries, where labor standards and environmental regulations are often weak. This can lead to human rights violations, including forced labor, child labor, and environmental destruction.

What are the ethical issues with conflict minerals? ›

Conflict minerals' effects on the environment

The chemicals used in washing coltan (tantalum ore) are polluting water bodies and are harmful to people and animals. The exploitation of the minerals is destroying ecosystems and affecting wildlife habitats.

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