San Luis mining organization (Ayacucho, Peru) will not go through an audit to obtain the recertification of the Fairmined Standard.
This mining organization was certified with the Fairmined Standard in 2018. However, San Luis has had difficulties extracting the mineral, so it has not made sales of Fairmined gold and/or silver. This is due to the fact that this small-scale artisanal mining organization (ASMO) does not have yet its own processing plant for its minerals and, unfortunately, it was not possible for them to carry out the process with an authorized third party, as they had planned at the start of its certification.
The biggest incentive for mining organizations to achieve Fairmined Certification is the possibility of selling their gold and/or silver at a fair price and receiving a premium per kilo of gold/silver sold. Furthermore, having the opportunity to be an active part of a transparent and responsible supply chain.
However, by not selling, the mining organizations lose many of the Certification benefits, such as the Fairmined Premium, which allows them to invest in the continuous improvement of the mining organization and its nearby community.
In addition, a certified mining organization that does not sell generates false expectations in the market and implies greater investment of resources from the Alliance for Responsible Mining (ARM) team. For this reason, the recertification of this mining organization was not approved.
Fairmined Certification is a progressive path that requires constant effort and dedication. At ARM, we are committed to supporting artisanal and small-scale mining organizations to improve their practices towards responsible mining.
In the case of the San Luis mining organization, we expect them to overcome their pending challenges and promptly return to the Fairmined Certification and its benefits.