With all the frustration around legislation that our industry is currently navigating, we’d like to address the positive side of what can feel like an infuriating mess of red tape and endless hoops to jump through. The South African Revenue Services introduced the Domestic Reverse Charge requirements in order to stop the billions lost through gold scams. The extra paperwork might seem like a hassle for some of those we do business with, but CPM takes seriously our responsibility to do all we can to establish the origins of the precious metals we buy, to fight criminality and to protect each other from the effects of the often violent crime associated with the unlawful acquisition and trade of precious metals.
The illegal mining industry costs South Africa an estimated “R21-billion in lost tax revenue annually and R14-billion in gold production, with an estimated 10% of the gold produce destined for foreign markets”. Add to this the indirect economic cost including damage to public roads (sinkholes appear regularly as a result of illegal mining activity), water usage and damage to water infrastructure, and state resources being diverted in order to police and legislate against this crime… and the numbers become mind-boggling. This illicit industry has created a parallel economy in which desperate zama zamas (loosely translated as “chance takers”) – mainly from the poorest countries within the Southern African Development Community – risk their lives and the lives of their families for the benefit of fat cats and their hangers-on who provide ancillary goods and services like explosives, weapons and security.
Cape Precious Metals has applied a “Know Your Counterparty” policy in order to identify and avoid upstream suppliers involved directly or indirectly with illegal mining, money laundering or other related criminal activities. We only deal with reputable companies who have the relevant licences to trade. We’ve set high standards in both the purchasing and selling of metals, and commit to disclosing accurately the material characteristics of the products we sell. We comply with and support the regulations laid down by SARS and the SA Diamond and Precious Metals Regulator and expect the same standard of ethics from our suppliers and customers.
We have integrated human rights, social and environmental considerations into our day-to-day operations, business planning activities and decision-making processes. Our Business Ethics Policy includes respecting confidentiality and data privacy and the dignity of all individuals. We shall not discriminate based on race, ethnicity, religion, disability, gender, sexual orientation, political affiliation or age. We are committed to high standards of Health and Safety in all our operations.
Our policies are readily available on our website and confirm our commitment to conducting business to the highest ethical standards, ensuring integrity, transparency and conformance with all applicable laws and regulations. We are steadfastly opposed to activities which directly or indirectly finance, benefit or facilitate armed conflict, violence and human rights abuses.
A summary of our policies in this regard is laid out below:
CAPE PRECIOUS METALS COMMITS THAT WE:
- Respect human rights according to the Universal Declaration of Human Rights and International Labour Organisation’s Fundamental Rights at Work.
- Do not engage in or tolerate bribery, corruption, money laundering or finance of terrorism.
- Support transparency of government payments and rights-compatible security forces in the extractives industry.
- Do not provide direct or indirect support to illegal armed groups.
- Enable stakeholders to voice concerns about the jewellery supply chain.
- Conduct business in an environmentally responsible manner, managing our footprint by eliminating or minimising negative environmental impacts and managing resources and energy efficiently.
We are proud that 100% of our precious metal is derived from scrap and second-hand items. Not a single gram comes directly from the mines. This means that your purchase of a CPM precious metal product supports the preservation of our natural resources, landscapes and waterways by keeping raw minerals in the ground.
However, where ancillary goods or products in our range need to be sourced: we will not deal with, and will immediately discontinue engagement with, upstream suppliers where we identify a reasonable risk that they are committing, or are sourcing from or linked to, any party committing any of the abuses described below.
Regarding serious abuses associated with the extraction, transport or trade of gold:
We will neither tolerate nor profit from, contribute to, assist or facilitate the commission of:
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- Torture, cruel, inhuman or degrading treatment
- Forced or compulsory labour or the worst forms of child labour
- Human rights violations and abuses
- War crimes, violations of international humanitarian law, crimes against humanity or genocide.
Regarding direct or indirect support to non-state armed groups:
We will not tolerate direct or indirect support to non-state armed groups, including, but not limited to procuring gold from, making payments to or otherwise assisting or equipping non-state armed groups or their affiliates who illegally:
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- Control mine sites, transportation routes, points where gold is traded and upstream actors in the supply chain and,
- Tax or extort money or gold at mine sites, along transportation routes or at points where gold is traded, or from intermediaries, export companies or international traders.
Regarding public or private security forces:
We affirm that the role of public or private security forces is to provide security to workers, facilities, equipment and property in accordance with the rule of law including law that guarantees human rights. We will not provide direct or indirect support to public or private security forces that commit abuses or that act illegally.
Regarding bribery and fraudulent misrepresentation of the origin of gold:
We will not offer, promise, give or demand bribes, and will resist the solicitation of bribes to conceal or disguise the origin of gold, or to misrepresent taxes, fees and royalties paid to governments for the purpose of extraction, trade, handling, transport and export of gold.
Regarding money laundering:
We will support efforts and contribute to the effective elimination of money laundering where we identify a reasonable risk of money laundering resulting from, or connected to, the extraction, trade, handling, transport or export of gold.
WHISTLEBLOWERS ARE ENCOURAGED AT CPM
CPM has policies and procedures in place for whistleblowers which enable them to come forward discretely in a variety of ways, including directly to the Executive Director. These secure channels are well documented and available to our employees who are aware of their duty to report conduct that is in contravention of CPM’s policies. Disclosure is treated with utmost confidentiality.
We are proud to be playing our part to ensure that refining and mining processes do as little harm as possible to the planet (especially with regards to cyanide and mercury use), and that our suppliers are not involved in forced or child labour, human rights abuses, or illegal or criminal practices.
You can be assured that the jewellery you create from our products is not indirectly funding terrorist or illegal armed groups, and that its metals come from legitimate sources that are not involved in money laundering, fraudulent activity, bribery, corruption or conflict-affected mines.
We also commit to using our influence to prevent abuses by others and to implement continuous improvement to our processes for higher standards of responsible practices and supply chain transparency.
OUR SUPPLY CHAIN COMPLAINTS PROCEDURE
If you have any concerns about circumstances in the supply chain involving gold and/or platinum metals from conflicted affected areas, please immediately contact our Executive Director Sharon Eades with your concerns (sharon@cpmct.co.za or 021 551 2066).