WGC Recommends Responsible ASGM Practices to Boost Central Bank Gold Purchases

SEATTLE (Scrap Monster): The World Gold Council (WGC) published a new report that details on domestic gold purchasing programmes by central banks. It also outlines the challenges of raising ESG standards in the Artisanal and Small-Scale Gold Mining (ASGM) industry.

The report offers case studies which explain the various ways in which these programmes could be used by central banks to boost their gold reserves and enhance the welfare of local communities. Further, it provides recommendations to encourage responsible AGSM practices. Incidentally, ASGM activity provides a livelihood for over 20 million people across developing countries.

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Although many emerging market central banks purchase gold from international market, a growing number of them are found adding domestically mined gold to their reserves. This helps central banks to use local currency for gold purchases. Furthermore, it could provide small-scale miners with greater confidence and support the livelihoods of artisanal and small-scale miners. The central banks of the Philippines, Mongolia, Ecuador and Ethiopia are found to be active purchasers of gold from domestic ASGM operations, the report said.

The report is intended to play a key role in reducing the marginalisation of responsible ASGM businesses.