We went to Tanzania to discuss Responsible Gold Credits
November 12th, 2024
I’m on my way to Africa right now.
I’m going to see what responsible sourcing looks like in reality, and understand what it actually means for the community there.
After taking over as Fairphone’s CEO in August, this is my first time visiting our on-the-ground partners in the sub-Saharan continent. I already know it’s going to be an amazing opportunity for me to experience the complex dynamics of artisanal and small-scale mines (ASM), which is where many of the minerals used in our devices come from. I do have one more ulterior motive for my trip. We want to evaluate the robustness of the Responsible Gold Credit (RGC) system that we intend on piloting at the end of this year.
We have always pushed for more responsible sourcing of our raw materials, particularly for “conflict minerals” like gold, tungsten, and tin. Over the years, we found out the hard way that there were a lot of challenges across the industry in tracing and verifying where these minerals come from across thousands of suppliers and components. Through the RGC system started by our partners at The Impact Facility and Solidaridad, we’re aiming to create a viable model for responsible raw material sourcing within the electronics industry.
So how does it work? For each gram of gold produced by a mine under this scheme, companies like Fairphone can buy a gold credit. The money raised from these credits are then invested into projects that will improve the lives of the people working at these mines and their families. This way, not only do we compensate for all the gold used in our devices, but we also give back to the communities that help make our products, encouraging them to adopt more responsible and sustainable mining practices.
| Fairmined Credits System Vs Responsible Mineral Credit Scheme
While both credit systems are similar in the way they work, the Responsible Mineral Credit Scheme is designed to help artisanal and small scale mines that do not qualify for Fairmined certification just yet. |
This journey to Geita gives us a chance to see the system’s effects on the ground. We want to be able to scale up the system and encourage even more mines in the ASM sector to join this scheme. Our aim is to confirm that this framework is robust, scalable, and ready for broader implementation within our supply chain and beyond.
Read more about Fairphone’s work with artisanal and small-scale mines in the DRC
November 13th, 2024
Today has been one of those long, travel-heavy days, filled with a domestic flight, transfers, and some unexpected detours. After leaving Dar es Salaam early this morning, I traveled through Mwanza before making my way toward Geita. The route even included a ferry crossing! After what felt like endless stops and starts, I finally reached the hotel and connected with my colleague, Lisa Minere. Lisa is our dedicated project manager for Fair Mining, and she arrived in Geita earlier this week. She’s got a packed itinerary for me over the next few days, visiting gold markets and mine sites, and talking to our key partner organizations, reviewing our work so far.
November 14th, 2024
Today has been incredible. We spent the morning at the Geita Gold Market, a remarkable initiative by Tanzania’s mining industry. Established to create a fair and centralized space for gold trading, the market brings together small-scale miners, dealers, and government representatives, in a safe and regulated environment.
The Geita Gold Market is a one-stop hub, with government offices, banks, and security services on-site to ensure transparent and fair transactions. Government officials at the market create transparency on gold prices aligned with global standards, while taxes and fees collected flow directly back into the Tanzanian economy. This market has been transformative for the government, allowing them to regulate sales and collect necessary taxes. It also provides a crucial alternative for companies to engage with ASM mines legally, reducing black market sales.
After spending the day walking around the market and talking to various people, we spent the evening at a review session with our key partner organizations to evaluate our progress building the capacity of ASM miners for more responsible practices. These are some of the key takeaways from the session:
- Increased willingness from mine management to invest in mercury-free technology
- Female workers, and women in the mining communities, are more empowered. More acceptance for women engaging in more technical and leadership roles at mine site, as well as acceptance of women groups investing in their own businesses.
- Mine managers have increased knowledge about equipment, and alternatives to access these in a more affordable and fair way
- Increased focus on safety and health from the mine management
- Evident that the Training of Trainer approach will ensure that knowledge will continue living within the mining communities
November 15th, 2024
Our day began with a visit to the Nsangano mine, where the Responsible Gold Credit system will be piloted at the end of this year. Since Nsangano was assessed against our minimum sustainability criteria in November 2023, their weight of gold produced and legally sold, generates an equivalent weight of Responsible Gold Credits. During our discussions with the management team, they shared specific goals for investing the funds raised through RGC purchases, such as:
- Acquiring mercury-free technology
- Purchasing safety equipment to protect miners from toxic fumes
- Planting tree seedlings to support local reforestation efforts
After we met the site management, we had the opportunity to actually descend into the mine, going down 75 meters into the earth. For me, experiencing the conditions firsthand really highlighted the urgent need for supporting safer practices in mines like Nsangano.
Later, we traveled to the Mgusu mine, which operates as a cooperative with a strong focus on gender inclusion. Among the 800 miners, 200 are women, many of whom hold leadership positions. Mgusu’s investment in a CIP (carbon-in-pulp) plant is the perfect example of innovation in responsible mining: this technology captures 90-97% of the gold without mercury, compared to only 40% with traditional mercury processing. The environmental and health benefits of this system align directly with the goals of the Responsible Gold Credit initiative, making it a model for other artisanal mining communities in the region.
Tomorrow, at dawn, I begin the long journey back to The Netherlands, carrying forward everything I’ve learned this week. It gives me immense pleasure to announce that, early next year, Fairphone will officially pilot the Responsible Gold Credit (RGC) system as well, by purchasing credits to directly support ASM communities. Before signing off, I would also like to thank our local partners, The Impact Facility and Solidaridad who have been instrumental in developing this initiative, the Fonds Verantwoord Ondernemen (FVO) that’s part of the larger Netherlands Enterprise Agency (RVO), and the European Partnership for Responsible Minerals (EPRM), whose funding and expertise make this project possible. Our commitment to responsible sourcing feels stronger than ever, and I’m really excited to see how the RGC system will continue to support positive change in Tanzania.
Fairphone’s RGC pilot program is the first step towards a future where all companies either physically source responsible materials, or cover their consumption with credits. If others join in, the scale and depth of impact projects financed through this system will increase, and it can systemically transform the ASM sector into a more responsible industry, one that is sustainable and profitable for the communities involved. If you’re interested in how you can get your organization involved, click here.
