Aureus Enterprises DMCC is a provider of a single-window solution to large refineries and Artisanal & Small Scale Miners globally. We have developed a hybrid model where we will provide refineries & financial institutions with an integrated platform from where they can procure responsibly sourced mined precious metals while being assured of the complete supply chain traceability. Our in-house developed platform for Constant Supply Chain Due Diligence also provides equal opportunity for the many Artisanal and Small Scale Miners by giving them access to a global market, while not burdening them with heavy costs.
Since Artisanal & Small Scale Mining, like many other labor-intensive businesses, finds itself on the minority side of the PARETO Principle (80/20 principle) we, therefore, endeavor to provide equal opportunity and a global market for them to get the fair price of their goods and labor. In addition to being the aggregators of Artisinal & Small Scale Mining, we also provide to both our customers and suppliers a Hybrid model where they can hedge their risks by using our strategic alliances with various banks / financial institutions / exchanges.
Artisanal & Small Scale Mining
Artisanal and Small-scale Mining is the oldest type of mining. It is believed that up to 20 million individuals in almost 30 nations are directly or indirectly part of ASM, and the father hundred million individuals rely upon this division for their livelihood.
There are four broad types of ASM.
- Permanent Artisanal Mining – This is the staple livelihood.
- Seasonal Artisanal Mining – This is done in tandem with agriculture during the dry months.
- Rush Type / Massive Migration – when the demand for gold suddenly rises, this spurring up mining activities.
- Shock-Push Artisanal mining – It is when natural calamities or economic crisis render joblessness and poverty.
So what is the difference between Artisanal and Small Scale Mining, you ask?
Artisanal Mining is considered the unorganized, old school, family-run mining activity that does not use modern machinery or tools and is often resultant in relatively small produce.
Small Scale Mining, on the other hand, is recognized as organized mining and includes enterprises and individuals that may or may not use sophisticated equipment and machinery. Still, they have a relatively higher turnover in terms of revenue. ASM is basic to products that are high in worth and low in mass, in other words, simple to move and effectively exchanged produce like gold, silver, gemstones, etc.
Globally ASM contributes 17%- 20% of annual gold production. This is in between 380-450 tonnes of gold. How so ever huge this number may seem, the reality of this paradigm is, in fact, something else.80% of all
raw minerals are mined by 10% of the mining community, ie. large scale miners and companies which comprise of about 7 million people. The remaining 20% of raw mineral is mined by 80% of the mining community, predominantly the artisanal level miners representing a staggering 100 million people.
In order to maximize the positive impact of sourcing gold from ASM, we at Aureus have in place the following process of screening which is both economically sustainable and yet conforms to the international regulatory requirements.
- A Supply Chain Policy that is consistent with OECD Due Diligence Guidelines.
- Internal Management Systems to collect and maintain documentation regarding sources of minded gold to ensure they have not financed conflict, not participated in human rights abuse or money laundering, or financed terrorism at any point in the supply chain.
- A Supply Chain Traceability System that encourages an end to end transparency.
- Payment process strictly through Official Banking Channels