New Wal-Mart eco-friendly jewelry line could represent significant breakthrough for gold mining cyanide management code

International mining’s effort to adhere to a voluntary cyanide management code is gaining recognition from environmental NGOs, and the world’s largest retailer, Wal-Mart, which has launched the Love, Earth Jewelry line.

Author: Dorothy Kosich
Posted: Wednesday , 16 Jul 2008

RENO, NV -

After several years of being targeted as part of the "No Dirty Gold" campaign as the world's largest retail seller of jewelry, Wal-Mart hopes to shatter that old image with the launch of the Love, Earth jewelry line Tuesday.

The launch of the world's largest company's first completely traceable jewelry line also has significant implications for gold miners as it appears that some leading environmental NGOs could be acknowledging that the International Cyanide Management Code is effective in helping to protect the environment.

The Wal-Mart Love, Earth collection marks its 10 karat gold and sterling silver collection with batch numbers. Consumers then visit the www.loveearthinfo.com site to view the management supply chain of their piece of jewelry from the mining and processing of gold and silver at Kennecott Utah Copper's Bingham Canyon operation, then processed into gold and silver bars at the Kennecott smelter, on to Aurafin's jewelry design and manufacturing facilities in South America, on to their headquarters in Florida, and finally shipped to Wal-Mart.

Aurafin is a brand of Richline Group, Inc., a subsidiary of Berkshire Hathaway Inc. The major brands comprising Richline's portfolio are Bel-Oro, Michael Anthony, Aurafin, GemGroup, Sardelli, Prime Time and Alarama.

While Kennecott uses a process that does not involve cyanide, the more significant breakthrough as far as gold miners may be concerned is the selection of Newmont Mining, specifically its Nevada mines, as a partner in Wal-Mart's program. Newmont uses cyanide in its gold processing, but is also one of the first signatories to the International Cyanide Management Code. In 2007, Newmont became the first and only gold company listed on the Dow Jones Sustainability Index-World.

The use of domestic precious metals mined in the U.S. is usually an important component of jewelry supply chain programs.

In interviews and statements to Mineweb Tuesday, officers from both Conservation International, which is a partner in the Wal-Mart Love, Earth program, and Earthworks, which is a prime sponsor of the "No Dirty Gold Campaign, said they both believe that adherence by institute member companies to the International Cyanide Management Code is helping to protect the environment from cyanide used in mining processes.

The "International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold" is a voluntary industry program for the gold mining industry to promote:

· Responsible management of cyanide used in gold mining

· Enhance the protection of human health, and

· Reduce the potential for environmental impacts.

Companies that become signatories to the code must have their operations audited by an independent third party to demonstrate their compliance with the code.

Currently half of the gold produced in the world comes under the direction of the mining companies who are signatories to the cyanide code, Paul Bateman, President of the International Cyanide Management Code Institute, told Mineweb Tuesday.

John Mudge, Director of Environmental Affairs at Newmont Mining--who was one of the co-founders of the International Cyanide Management Code-- told Mineweb that many gold mining facilities, and producers and transporters of cyanide, both domestically and internationally, have been certified under the code.

Mudge also said that prior to any consideration of a partnership; Wal-Mart executives visited Newmont facilities and made a number of careful inquiries prior to deciding to partner with Newmont in the Love, Earth jewelry line. Retail analysts have long attributed Wal-Mart's status as the world's largest retail company to its supply chain manufacturing process. Basically, a mining company which supplies metals to Wal-Mart must to adhere to some of the toughest logistics management and sustainability standards around.

Conservation International has been working with Wal-Mart for three years to help apply the retail giant's sustainability standards and criteria for environment, human rights and community issues to jewelry. By 2010, Wal-Mart aims to have at least 10% of its jewelry comply with these standards.

Dr. Assheton Stewart Carter, Senior Director of Business Policies and Practices at Conservation International, said, "With its considerable influence, market reach and commitment to sustainability, Wal-Mart has brought together like-minded suppliers, mining companies and conservation partners to work together to build a traceable supply chain at an impressive scale."

"Impressive scale" is crucial to the financial success of affordable 10 karat gold and silver jewelry line that will sell trendy jewelry that young people can afford and also makes them feel they are helping to save the environment by buying "green" gold pieces. For instance, upscale jewelry retail Tiffany & Co. has long utilized the gold produced at the Bingham Canyon mine to establish a very workable "green" gold supply chain. However, Wal-Mart customers generally won't be buying gold jewelry at Tiffany.

Meanwhile, Wal-Mart's Sam's Club customers will be offered the 14-karat gold and sterling silver Love, Earth jewelry line.

EARTHWORKS President Stephen D'Esposito told Mineweb Tuesday that the program is a "step in the right direction in chain of custody and the ability to actually demonstrate that we can go from mine to retail because many people said that couldn't happen."

"We're hopeful that it is also an opportunity to look at both what‘s constructive and positive about these sites and also where improvements need to take place. We're hopeful that this opens up the opportunity to look at both of those things, not just what's going well, but what can and what needs to be improved, whether it's water, nearby communities, or air emissions," he added.

D'Esposito also stressed that a careful read of the Framework for Responsible Mining (www.frameworkforresponsible mining.org), "a document that we sponsored, along with others, does not in any way rule out cyanide. Instead I believe it calls for a number of measures/standards/protocols that point to measures that can be taken to control, management and limit impacts."

"These related not just to cyanide management and handling (which is all that the cyanide code covers), they also address issues related to releases to water, extra protections in certain environments, etc," he concluded.

In a news release, Pam Mortensen, vice president and divisional merchandise manager for Wal-Mart, said the company recognizes that "our customers care about the quality of their jewelry and its potential impact on the world. With Love, Earth, customers are getting an affordable and beautiful piece of jewelry that also helps sustain resources and strengthens communities."

Love, Earth is Wal-Mart's first substantial effort toward having all of the gold, silver and diamonds used in the jewelry sold in Wal-Mart stores and Sam's Club locations come from mines and manufacturers that meet Wal-Mart's sustainability standards.