The sourcing and trading of conflict-free gold and other precious metals are key in sustaining the precious metals industry, particularly in light of recent estimates that the illegal precious metals trade is worth as much as $1.3-billion a year.

This is according to local precious metals refinery Metal Concentrators South Africa (Metcon) CEO Bernard Stern.

Metcon, which is South Africa’s largest independent precious metals refinery, was recently awarded double certification by the Responsible Jewellery Council (RJC) under its new code of practices (CoPs) and the chain-of-custody (CoC) standard for its trading and gold refining facilities in South Africa.

The RJC is an international certification organisation tasked with improving integrity and responsibility in the international jewellery supply chain.

“Metcon’s achievement follows a successful verification assessment conducted by Bureau Veritas, a global third-party auditing company accredited by the RJC,” Stern explains.

He notes that the CoC requirements are consistent with the Organisation for Economic Cooperation and Development’s due diligence guidance for responsible supply chains and adhere to the London Bullion Market Association’s Responsible Gold Guidance and the World Gold Council’s conflict-free gold standards.

Stern highlights that Metcon is now one of only 15 refineries worldwide to achieve double certification for both CoC and CoPs.

The CoC standard aims to support claims to responsibly sourcing jewellery materials in the jewellery supply chain.

Stern says that the RJC defines responsibly sourced minerals as conflict free and responsibly produced at each step of the supply chain – from production to processing and trade.

He notes that the certification means that the gold refined by Metcon is free of conflict and is sourced in a responsible manner, respecting to people, human rights and the environment. This is articulated in the RJC CoPs, applicable to the jewellery supply chain from mine to retail.

Stern points out that the achievement will add to Metcon’s global credibility as a highly regarded refiner and provider of technical support to the local jewellery industry with sources of ethical supply.

“Since the company’s inception in 1989, we have strived to install strong values regarding precious metals trading and integrity within the industry,” he states.

Stern further explains that, with regard to refiners, responsible gold is gold that has been sourced from licensed traders and jewellers with respect for local communities, human rights and labour rights, and which has not been used to fuel or fund civil or cross-boundary conflict.

“All sources have to comply with our anti-money-laundering, antiterrorist-funding policies in addition to our policy regarding child labour and safe environmental practices,” he says.

Stern says that he hopes that his company will set a good example for other gold stakeholders, locally and internationally.

“We hope that our double certification accreditation will encourage other industry players, locally and globally, to follow suit and do their part so that responsible gold mining, refining and trading can continue to flourish worldwide,” he concludes.