Fairmined vs Fairtrade Gold: What's the Difference?

Fairmined vs Fairtrade Gold: What’s the Difference?

It’s a question I’ve been asking myself for years: what’s the difference between Fairmined and Fairtrade Gold, if there is one at all? Both are reputable organizations focused on fostering responsible gold mining in ASM (artisanal and small-scale mining) operations. So why have two separate organizations doing basically the same thing?

Well, it turns out, they actually used to have a partnership back in 2013 and were going to co-label gold both Fairmined and Fairtrade. Sadly, that partnership didn’t last, and since the split both organizations have continued operating and do have some notable differences.

Fairmined vs Fairtrade Gold: A Snapshot of Important Details

The comparisons in the chart above reflect some important, often-overlooked details in the rules and regulations of gold mining. To clarify, the “% allowed” characteristic refers to the percentage of non-Fairmined or Fairtrade metal in a completed design (think clasps, chains, and other tiny components) that are allowed to be from other sources and still be marketed as Fairmined or Fairtrade.

Most notably, Fairmined is operating in two more countries than Fairtrade, and offers an “Eco-Gold” option whereby metals are sourced without the use of any toxic chemicals. Fairmined beautifully displays info about each Fairmined mine and its surrounding community in extensive detail, while I had to spend much more time researching about Fairtrade mines to get my hands on specific details. This is more a difference in their accessibility and presentation, rather than their practices.

What surprised me the most during a recent conversation with a jeweler friend was that (regular) Fairmined and Fairtrade Gold allow for the use of mercury, not just cyanide, in mining operations. I’ve spent years being educated via Better Without Mercury and documentaries like River of Gold that showcase just how toxic mercury is and the horrific effects of mercury poisoning in people and the environment, so I started to become concerned.

The Colombian countryside near Fairmined gold mines. Photo courtesy of Susan Wheeler.

Fairmined miner transporting a load for processing. Photo courtesy of Alliance for Responsible Mining.

My concern was quelled when I read through the extensive rules and requirements that both organizations have for ASM miners and mines that are still using mercury—and that the ultimate goal is for them to transition out of using it. In fact, some Fairmined mines such as Chede do not currently use mercury at all and have been using gravimetric methods since 2019.

(Click on the link to read the full 2021 mine audit).

Again, there is always the “Eco-Gold” option that Fairmined offers, for those of you who are looking to 100% avoid purchasing gold that’s been mined using mercury, however regulated. Just remember that the “Eco-Gold” is more expensive due to the extra premium being paid to the miners, as you can see in the comparison graphic below.

Fairmined Gold: A Closer Look

Fairmined Gold vs Fairmined Ecological gold comparison. Image graphics courtesy of the Fairmined website/ARM.

Regarding chemical use in their regular gold, Fairmined states, “This responsible [mercury] use includes putting into practice methods of mercury recovery throughout the process, avoiding emissions to the atmosphere, soil and water, the proper disposal of waste and the training of personnel in charge of its management and disposal, as well as the use of protective equipment and appropriate places for the handling of these chemicals.”

Here are all of the Fairmined mining groups that exist, along with what exact chemical they are using (or not), so you can make informed purchasing decisions:

#1. Chede (Colombia): Cyanide. Fairmined website glitch is linking the audit to Cecomip, data found from the 2022 Fairmined Report and 2020 Fairmined Report.

#2. Iquira (Colombia): Cyanide.

#3. La Gabriela (Colombia): Cyanide.

#4. Oro Puno (Peru): No chemical use, gravimetric methods only.

#5. Amataf (Peru): Very new, no audit has been done yet. Appears to be chemical-free.

#6. Cecomip (Peru): No chemical use, gravimetric methods only.

#7. Expausa (Ecuador): Fairmined website glitch, no link to audit available, but it appears to be chemical-free.

No matter where they are located, The Alliance for Responsible Mining (ARM) supports Fairmined miners through training and advisory on how to implement more efficient and responsible technologies.

“An example of how the certification process has encouraged significant mercury reduction is in the Íquira Cooperative of Colombia where they have reduced their mercury use 80% since 2014 thanks to the mercury reduction plan elaborated with ARM.” —The Alliance for Responsible Mining

A “pallaquera” working at the MACDESA mining organization in Peru. Photo courtesy of ARM.

Incorporating Fairmined Gold In Your Business

There are 3 different ways you can support the Fairmined initiative in your jewelry business, whether you are a small, medium, or large company: Fairmined Labeled, Fairmined Incorporated, and Fairmined Certificates.

The three different ways to incorporate Fairmined gold. Image graphics courtesy of the Fairmined website/ARM.

Most small businesses would opt for Fairmined Labeled, as it is the only option that allows you to stamp products Fairmined and claim 100% traceability. However, if you don’t yet have the ability to keep Fairmined gold casting grain or other materials separate from your other gold supply, you could select the “Incorporated” option, which still allows you to support the efforts and wellbeing of Fairmined gold miners and their communities. Lastly, Fairmined Certificates are perfect for jewelry industry organizations or businesses that don’t actually need gold, but still want to financially support the Fairmined cause.

My fellow Source author and jeweler Saskia Shutt currently works with Fairmined gold and pointed out that, “Being Fairmined Certified also means that we have to log every purchase we make twice a year and it has to correspond exactly all the way down the supply chain (if it doesn’t, they freeze the accounts until the in discrepancy is ironed out). Fairmined certification also requires that we are audited by a third party every three years, and if we do not continue to comply with the Fairmined standard we lose our certification.” Saskia went on to note that as far as she is aware, Fairtrade does not require this, stating, “I am Fairtrade registered in Belgium and I have never been asked to prove or log any purchases.”

According to the Fairmined website, it currently costs $60 a year to get a Fairmined license through ARM. The Fairmined premium is $4 per gram of gold for regular Fairmined, and $6 per gram for Fairmined Eco Gold, which are paid by the refineries and traders who are the “first buyers” of the gold.

Another plus is the fact that Fairmined gold is easily accessible in America as well as Europe. United States-based suppliers include (but are not limited to) companies such as Hoover and Strong, Riva Precision Manufacturing, Dillon Gage, and W.R. Metal Arts.

Fairtrade Gold

One obvious way that Fairtrade Gold differs from Fairmined Gold is while the latter is managed by ARM, Fairtrade Gold stems from the Fairtrade umbrella that also covers products like cocoa, bananas, and coffee. The fact that Fairtrade focuses on more than just mining doesn’t mean their requirements are any less stringent.

Similar to Fairmined, Fairtrade gold focuses on gradual, continual improvement. According to the Fairtrade Standard, by the third year of mining, Fairtrade miners must have started trials with alternative processing methods to minimize and eliminate the use of mercury. By the sixth year of operations, a significant volume of gold must be processed with chemical-free methods.

As I did for Fairmined, here are all the Fairtrade Gold mining groups that exist, along with the exact chemical they are using (or not):

#1. Sotrami (Peru): Cyanide. Sotrami is part of the International Cyanide Management Code.

#2. Macdesa (Peru): Mercury, according to photos and information from Ethical Making.

#3. Aurelsa (Peru): Cyanide, according to a PBS interview with General Manager Daniel Enrique Valverde.

#4. CECOMSAP (a collective of 10 different mining orgs) (Peru): 7 of out of 10 are chemical-free

CECOMSAP Fairtrade miners in Peru. Photos courtesy of Fairever.

Fairtrade gold also has a premium, but it is lower than the Fairmined one. Germany-based metals supplier Fairever explains, “The Fairtrade standard guarantees mines a minimum price of 95% of the London Metal Exchange price and a premium of $2,000 per kilogram of gold, which must be used for community-based projects.”

Incorporating Fairtrade Gold in Your Business

One downside for US-based designers is that Fairtrade gold is much more common in Europe and barely has a presence in the US. Becoming Fairtrade certified is not inexpensive either, and when you add shipping fees on top of that, many small businesses may find it too cost-prohibitive.

Marc Choyt, founder of Reflective Jewelry, stated in a 2017 article on their website that, “The paperwork and cost for a jeweler to be certified by Fairtrade America are prohibitively expensive to most small shops— I paid $1,532 back in 2015 to become certified. In England, where small jewelers can sell Fairtrade Gold and use the powerful international label without any upfront cost, there are about 270 Fairtrade gold jewelers.”

Fairtrade has their own independent certification and auditing organization called FLOCERT, which handles issuing Fairtrade licenses. Curious what the cost would be now in 2024, I went on FLOCERT’s cost calculator and used my own newly-formed retail jewelry company as an example.

Here’s what it spit out once I entered certain details about my business:

Screenshot of estimated cost of Fairtrade certification. Photo courtesy of the FLOCERT website.

I would have to pay $1,971 to get the license, and then pay that amount again every three years to renew. There’s also a fee per gram charge to pay for FLOCERT that jewelers must pay. If you are curious, Reflective Jewelry published a full breakdown of every cost they accrued and the many hoops they had to jump through in order to use Fairtrade gold in their designs. While the Fairtrade premium really does benefit artisanal miners and their communities and help them adopt more eco-conscious technologies, it certainly takes a lot of effort and expense to adopt.

In Conclusion

While both Fairmined and Fairtrade Gold are similar in scope and intent, there were definitely enough notable differences to warrant a deeper comparison. Fairtrade’s popularity and lower premium may allow them to sell more gold to European jewelers, but they have yet to come up with a way to make it accessible in the United States. Greg Valerio of Valerio Jewellery and PeaceGOLD confirmed to me that SAMA, an Ugandan artisanal mining organization, unfortunately failed to keep its Fairtrade gold certification. If Fairtrade wants to scale their supply of artisanal gold, they’ll have to ensure that their requirements aren’t too rigorous for the majority of artisanal miners to realistically adopt.

Fairmined has a much stronger digital footprint and is easy to access here in America, and has supply coming from three different countries instead of just one. Its higher premium has been greatly beneficial to Fairmined miners who can make the money go further, yet the miners depend on consistent demand from jewelers, who are feeling the effects of the ever-rising price of gold.

I truly hope that we will see more mining organizations in both East Africa and Latin America willing to become Fairtrade and/or Fairmined certified so that they can have safer, more sustainable livelihoods. Even more importantly, I hope that both organizations can find ways to make their gold more accessible, so we see greater acceptance of responsibly sourced metals in jeweler’s supply chains.

Fairtrade and Fairmined logos. Images courtesy of the Fairtrade and Fairmined websites.

Source: Ethical Metalsmiths