What is the Fairmined premium and how does it work?

Small scale mining organizations certified with the Fairmined standard get an economic incentive in addition to the price they receive for the sale of their certified metals as a recognition to their commitment for developing a responsible mining.

This premium varies according to the metal sold and the certification type (Fairmined or Fairmined Eco) that the mining organization has achieved. The following table shows the premium paid by the market for each kilogram of mineral:

All the actors of the gold chain supply who are part of the Fairmined initiative (refiners and traders, jewelers, mints and consumers), contribute to the payment of the Fairmined premium, helping the well-being and development of mining organization, its workers, and the community in general.

Benefits of the premium for mining organizations

The Fairmined premium represents an opportunity for the organizational, technical, social, economical and environmental development of certified mining organizations and their communities.

“The Fairmined premium has helped us improve the life quality of our workers. For example, we have invested on a bigger dining room with amenities for cold weather, and hot-water showers thanks to the solar panels”: Jaime Enrique Mollepasa, Minera Oro Puno Manager. Peru

Know more about benefits of the Fairmined premium at Oro Puno mining organization.

Why is Fairmined premium important for certified mining organizations, especially during the pandemic of Covid-19?

Due to the current world situation, certified mining organizations had to suspend their mining activities and went into quarantine approximately 3 months ago.

This has had several effects, including the reduction of their income. Therefore, a restriction in benefits such as transportation aid, meals and snacks, and support for domestic calamities, among others, which were regularly given to working men and women, as well as to nearby communities.

Challenges for reactivation of the sector

Reactivation of the artisanal and small scale mining sector brings new challenges that miners must face. Some mining men and women in Peru estimate that since the pandemic started, operational costs have increased between 30 and 40 percent.

Among the new investments that had not been anticipated by mining organizations, is the implementation of biosafety protocols, in order to guarantee the health and well-being of their collaborators and nearby communities. Such protocols include:

• Supplies, food, and people transportation.
• Refurbishment of areas such as dining rooms, sanitary stations, and camps.
• Use of mouth covers, masks, and disinfectants.
• Hiring health care professionals for making epidemiological charts and providing basic attention in possible cases.

“One of our flagship projects with the premium is the facilitation of transportation for our collaborators, but the costs for its implementation have increased. “It is necessary to double the amount of buses hired so only 30 people can move instead of 60,” says Valerio Condori, from the certified mining organization MACDESA (Arequipa, Peru).

Considering those facts, it is essential that the market pays the Fairmined premium to facilitate this reactivation, thus protecting the life and health of the miners, and contributing to supply the basic necessities of the communities that have been severely affected by the suspension of the main economic activity.

Be part of the transformation

This worldwide situation has taught us that there are communities in a situation of higher vulnerability than others, and that there are economic activities from which whole families and communities are dependent.

Buying certified gold and paying the additional Fairmined premium represents today, more than ever, a commitment to make a contribution for a change in awareness and direct support to the mining communities that face new challenges to retake their duties.

Paying the Fairmined premium means supporting the protection of the health of miners and promote access to dignified work.

The current world needs brands connected with social transformation. With Fairmined, you have the possibility of telling inspiring stories from our miners, who are proud and committed to offer fair gold to the market, while you also support their development and encourage them to keep improving.

Your decisions can make a difference and help the different mining communities in Latin America and Asia.   

Send us a message at info@fairmined.org if you want to be part of the transformation.