PILOT TESTING STANDARD ZERO IN LAC Cristina Echavarría Secretaria General Fair Trade Session 7th Annual CASM Conference Ulaanbaatar, Mongolia 7-12 September, 2007

Main Objectives Produce the first independently certified fair trade artisanal gold for the ethical jewelry market and develop partnerships with committed jewelers Ground test the requirements proposed by Standard Zero with producer and support organizations in Bolivia, Colombia, Ecuador and Peru and collectively develop the inspection indicators with miners to propose to FLO Cert. Use the pilot projects to train and plan with producer organizations through learning by doing how to improve ASM mining operations Test and improve ARM’s self learning and evaluation toolkits with the miners to be later used by new organizations entering the FT scheme Identify gaps in the standards as well as training, technology, credit and financial needs for miners to comply with the requirements Identify feasible percentages for the Fair Trade Premium and for pre-financing arrangements between traders/retailers and producer organizations for precious metals in LAC Contribute to the organizational processes of ASM producers Producer organizations to develop strategic development plans Strengthen and consolidate a network of local ASM support organizations Identify key issues, structure and cost of ASM support programs

Criteria to reflect diversity A variety of national contexts and laws for ASM and precious metals trading and exporting Different types of gold mining, i.e. Alluvial and hard rock. Different associated precious metals or gems in the same producer organisation - testing also for feasibility of certifying platinum and silver from the same operation Different processing techniques, i.e. amalgamation, cyanidation, mercury-free gravimetric methods, etc. Different types, sizes and levels of organization of ASM to see how the standards perform in communities where different organizations are interlinked in the supply chain and how to address this complexity. Community miners and small producers with a significant number of workers Different ecosystems: tropical rainforest, Andean mountain, and Atacama Desert, Andean highlands.

Producer and Country Selection Criteria Be legally organized and demonstrated trajectory as a producer organisation towards social and environmental responsibility. Interest and commitment of the organization to be a leader and to multiply the process among other producers Existence of a partnership between a miner’s organisation and a support organization to undertake the pilot project building on ongoing local processes - we cannot begin from zero. To have legal title to concessions with mineral potential. That the national legislation has transparent mechanisms for private precious metal exporters That producer organizations commit to improving levels of gender equity within their organizations and in the decision processes regarding use of FT premium. At least one pilot project should have as point of entry the whole of a mining community where the diversity in evolution of different organisations, can stimulate the formalizations of small family groups and individuals at the bottom of the pyramid.

Main activities planned 3 regional workshops to train trainers and plan specifics of methodology and timeline Local workshops for hands on learning and toolkit refining Ongoing evaluation and reinforcement by ARM and the TC Use of ICT’s to consolidate network of organisations and their trading capacity Miner’s exchange and ongoing support to organisational strengthening of ASM Participation of pioneer producer and support organisations in key events

Toolkit Development: collaborative learning through self evaluation Knowledgeable and committed consultants with practical experience with ASM Develop a set of 5 toolkits for producer and support organizations to test and refine on the ground Consultants, ARM and TC provide ongoing training and follow up to pilot team network Pilot teams combine practitioners from support organisations and producers, learning together The tested and refined toolkits with be used by new groups wanting to enter the FT scheme to measure themselves against the Standard Zero, and to analyse how best to improve the social, environmental, economic and labour performance of their operations

ARM Toolkits for FT Producers Baseline self assessment tool against Standard Zero and development-testing of inspection indicators. Cost of Production tool kit for different types of operations - key for definition of premium and pre-financing levels, and for business planning by producer organisations. Supply chain evaluation from mine to market - bottlenecks, value distribution along the chain, allies and adversaries - addressing a negotiation strategy and how far local-national value can be added Community monitoring system and tracking traceability Needs assessment tool to define the profile of ARM’s producer support programme.

Regional Network of Pilots Bolivia: Cumbre del Sajama with Cotapata Cooperative Colombia: Oro Verde at Tadó and Condoto, Chocó Colombia: University of Narino-Regional Environmental Authority Corponariño with Cooperativa de los Andes, Nariño. Perú: Red Social y AMASUC at Relave, Cuatro Horas and Santa Filomena, Central-South Peru Ecuador: Escuela Superior Politecnica (ESPOL) and D y A NGO with the Bellarica Cooperative, South Ecuador Regional coordination by : ARM Joint fundraising with local organisations and between ARM-FLO-FTF First regional workshop November 2007 Last regional workshop with technical committee: Noviember 2008 Inspection and certification by FLO Cert. - 2009 Horizontal learning and mutual reinforcement

Thanks! Your suggestions and ideas are welcome We are all learning in this process More information at: www.communitymining.org My name: Cristina Echavarria