WGC Archives - International Mining

The World Gold Council (WGC), the market development organisation for the gold industry, has announced the launch of its Responsible Gold Mining Principles.

The principles are a framework that set out expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining, the WGC said.

Working with the world’s leading gold mining companies – the WGC’s members – the council has set out the principles it believes address key environmental, social and governance (ESG) issues for the gold mining sector.

The principles focus on 10 key areas. Under the governance section, this includes ethical conduct, “understanding our impacts” and the supply chain. Social concerns include safety and health, human rights and conflict, labour rights and working with communities. The remaining three in the environmental bracket are environmental stewardship, biodiversity, and water, energy and climate change.

It is the World Gold Council’s aim that the Responsible Gold Mining Principles become a credible and widely recognised framework through which gold mining companies can provide confidence that their gold has been produced responsibly, the WGC said, acknowledging that ESG considerations are becoming increasingly important to consumers.

Companies implementing the Responsible Gold Mining Principles will be required to obtain external assurance from a third party, independent assurance provider. This will provide further confidence to purchasers of gold that the gold they buy is responsibly mined and sourced, it said.

Gary Goldberg, CEO of Newmont Goldcorp, who oversaw this initiative on behalf of the Board of the World Gold Council, said: “Adherence to strong ESG principles should be a key part of any responsible gold mining business and, as such, the members of the World Gold Council have collaborated, along with key industry stakeholders, to develop the Responsible Gold Mining Principles.

“Given the Members’ sustained focus on improving ESG performance, the formalisation of the Responsible Gold Mining Principles is a natural evolution of our daily working practices. It is my hope that these principles will be widely adopted, not only by member companies, but by the industry more broadly.”

Terry Heymann, Chief Financial Officer of the WGC, said it was the council’s aim that the principles reinforce trust in gold and the gold mining industry.

“Consumers, investors and the downstream gold supply chain will be able to know, with confidence, that their gold has been responsibly sourced,” he said. “The principles incorporate feedback from more than 200 organisations and individuals over two rounds of consultation and are designed to support the efficient operation of the gold market.”

The World Gold Council has welcomed Teranga Gold Corp and Endeavour Mining Corporation as its newest board members.

David Harquail (pictured), Chair of the market development organisation for the gold industry, said: “Both companies play an important role in the production and exploration of gold across West Africa and bring with them a wealth of experience that will be of significant value.”

Teranga is a Canada-based gold company focused on production and development as well as the exploration of approximately 6,000 km2 of land located on prospective gold belts across West Africa, according to the WGC.

Since its initial public offering in 2010, Teranga has produced more than 1.6 Moz of gold at its flagship operation in Senegal. Focused on diversification and growth, the company is advancing construction of its second producing gold mine, located in Burkina Faso, as well as carrying out exploration programmes in Côte d’Ivoire, Burkina Faso and Senegal.

Endeavour is an intermediate gold producer with a track record of operational excellence, project development and exploration in the Birimian greenstone belt in West Africa, WGC said.

Endeavour operates four mines across Côte d’Ivoire (Agbaou and Ity) and Burkina Faso (Houndé, Karma) which are expected to produce 615-695,000 oz in 2019 at an all-in sustaining cost of $760-810/oz.

Sébastien De Montessus, CEO and President of Endeavour, said: “We are very pleased to be joining the World Gold Council. We share the organisation’s belief in the importance of setting global standards to reinforce trust and transparency in the sector and across the whole value chain. We look forward to working with the council and its members to improve understanding of the gold industry.”

Richard Young, President and CEO, Teranga Gold, said: “For more than 30 years, the World Gold Council has supported greater understanding of gold’s enduring value and global influence. Today, at a time of both uncertainty and unprecedented opportunity, the work of organisations such as the World Gold Council is of paramount importance.”