Country: Colombia
Organization: Fundación Amigos del Chocó
2) Sector of activity: Consumer Products
Responsible Artisanal Mining
3) Description of your products or services: The Certified Green Gold program is a pilot experience in the world. It provides a sustainable development alternative to underprivileged mining communities by sponsoring fair trade practices and the observance of ten mining certification criteria as a guarantee of socially and environmentally responsible artisanal and small-scale mining. These metals are sold to local and international fair trade and green and markets, where miners receive a bonus on the market value of gold for their environmental and social services. Green Gold is transforming subsistence mining practices into a responsible mining industry where small family mining units join efforts to offer the market the first socially and environmentally responsible gold and platinum in the world. In addition, certified miners benefit from parallel projects that seek to implement productive sustainable livelihoods to reduce the dependence on mining activities and to improve their quality of life.
It is implemented in 12 communities of the municipalities of Tadó and Condoto in Chocó. Currently there are 90 certified productive units, with an average of 7 members each, producing and selling certified metals. We seek to double this number by the end of 2005. Additionally the Green Gold Program provides capacity building workshops on different themes to the members of the communities where the program is implemented. Miners could sell their gold to intermediaries or rent their lands, both reinforced their poverty.
4) Description of the operational model: The Community Councils of Condoto and Tadó and Foundation Las Mojarras, as community based organizations, are responsible for the management of the collective territories, the local coordination of community development projects, and the organizational strengthening, support, internal monitoring and advice to certified miners. They are in charge of buying metals and coordinate local logistics.
Miners organize into producer groups, fulfill the certification criteria and sell their metals to community leaders.
The Foundation Amigos del Chocó provides networking and facilitates links between the local, national and international level organizations involved. It develops fair trade and green markets for responsibly produced metals, it disseminates the experience and builds awareness about the potential of this approach through communication, environmental education, research, network building and the consolidation of strategic partnerships.
The IIAP’s mandate is to undertake research for the benefit of the conservation and sustainable management of the Biogeographic region of Choco. As an independent institution, IIAP certifies the Green Gold, it validates the sustainability of technological transfer and co- validates the traditional technologies used in the extraction and processing of precious metals.
5) Description of the financial model: The financial model of the Green Gold Operation stands on 3 main pillars:
1. Rotating social fund to buy certified metals.
The rotating fund allows us to buy metals on a permanent basis and to keep inventories ready for the market.
2. Profit generation through Green Gold Sales.
Green Gold is bought from miners at a 6% premium and sold at a 10% premium. Because the initiative is promoted by 4 different organizations, we do not expect profits to make the organizations financially sustainable, but to make the Green Gold Initiative financially sustainable. We have set up a financial model to reinvest these profits.
The model for reinvesting revenues from trading Green Gold is conceived in the following way:
70% returns to the communities:
a. 32% as an economic incentive to mining units for responsible mining practices. b. 38% goes to a development fund to be reinvested in the region. 30% allows the commercial wing of the program to be sustainable.
Up to now all revenues are being reinvested in the rotating fund. 3. Micro Credit schemes for technology transfer
Another element of our financial model involves the technological enhancement of mines
Client fees represent this approximate percentage of operational budget: 0%
6) Key operational partnership: The Green Gold Corporation is the greatest alliance set up to make this model operational. Four organizations have join efforts to make this possible: the community councils of Tadó and Condoto, Fundación las Mojarras and us.
Project funding, international dissemination, identification of new allies. international NGO’s and International Cooperation Agencies and Funds such as Novib, Both Ends, CEPF, Ashoka, and the Fund for Environmental and Childhood Action, among others.
Research in areas pertaining to the Green Gold program, have been in partnership with universities and research centers such as the Institute of Regional Studies of the University of Antioquia, the Technological University of Choco, and Eafit University.
Volunteers have contributed to different activities such as market studies, publicity and design, translations, campaigning for promoting specific products and other kinds of cooperation.
Refining of metal, design, manufacture and distribution of jewelry: Partnerships have been made with several national and international private sector companies, such as C.I. Inverguti, CRED Jewelry, Alea, Artesanías de Colombia, and Tienda Mola.
7) Current outreach:
We are at the Scaling Up stage. We are currently expanding within Chocó and are enganged in international discussions to mainstream resposible artisanal mining practices. We have been contacted by institutions both nationally and internationally who could replicate the model in ther countries. This is important to increase the global offer of green metals in order to provide sustainable livelihood alternatives to more mining communities around the globe.
How many clients have benefited from your product/service in total? Over the last year? There are 700 certified miners producting Green Gold. They and their families benefit from better income, protect their lands, become engaged in community processes, have stake in the Green Gold program. Additionally the greater community councils and the minor community councils have benefited from building their organisational capacity. Around 30.000 people from Tadó and Condoto benefit from a sustainable management of collective lands.
What percentage of your clients is below the poverty line ($2 per day)? 85% This data is from the national planning agency. It
reflects the percentage of population in Chocó living with
unsatified basic needs.
What is the order of magnitude of the potential demand for your products or services? Which
other low-income groups, countries or regions could benefit from it? Try to quantify (number
of clients, market size in currency):
According to the World Bank, around 13 million people live from artisanal small scale mining activities. Reseach has established a clear link between mining, environmental degradation and poverty. Yet, for many of these communities mining is the only producive alternative. The Green Gold model could bring sustainable alternatives to communities engaged in mining practices both of precious metals and gems.
8) Scale-up strategy:
How many low-income individuals do you plan to benefit in three years from now? How are you planning to scale up or replicate your solution? What are the major constraints to scale up?
Within Chocó we plan to have 1400 miners by the end of 2005 and at least 2000 by the end of 2006. Outside Chocó we intend to set up a technology transfer methodology in order to facilitate de scaling up in other parts of the world. Surinam, Sierra Leone and perhaps Perú will probably be the first places where the model will be replicated.
Which specific areas - and why - in your field would benefit most from investment by corporations, foundations, and other investors:
We need major investments in the rotating fund. It is what keeps the model financially working and in order to scale up we must guarantee resources to buy certified metals from miners. We also need to strenghten local producer groups. Even though there is already one cooperative, we need to strenghten the association capacity in Chocó. We need investments to make the microcredit scheme operational in order to incorporate clean technologies into the model. Finally we also need to have a stronger market development and publicity strategy. We need to make more poeople aware of the existance of environmentally and socially responsible metals.
9) The organization: How does the initiative fit with your overall organization's strategic goals and priorities? How did the initiative start?
The foundation Amigos del Chocó fosters sustainable development and improvement of life quality of biogeographic Chocó population by implementing environmental, social and productive projects and linking management with local and international community.
Amichocó links local and international communities to incentive a co-responsible use of natural resources in one of the world?s biodiversity hotspots and to improve life quality for marginalized communities. Our four strategic areas allow us to act locally while addressing regional and global realities: Communication and environmental education, research, green and fair markets and institutional strengthening. The Green Gold initiative is strongly link to our strategic areas, particularly green and fair markets, environmental education and communication and organizational strengthening.
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10) On the mosaic diagram, which of these factors is the primary focus of your work?
- Factor: Poor understanding of the human and social capitals of low income communities
- Principle: Leverage the power of communities as both consumers and producers
Contact Information:
Name: Catalina Cock - Director
Organization: Fundación Amigos del Chocó
Mailing address: Carrera 35 No. 7-80 piso 2
Country: Colombia
Email: amichoco@epm.net.co
Tel: ++ 57 4 3521638
Fax: ++ 57 4 3523045
Website: www.amichoco.org
Organization's legal status: Registered NGO
Number of Employees: 7
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