SEPTEMBER 2009 Mining Supplement

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The RJC Monit0RResponsibleJewelleryCouncilThe RJC MonitorResponsibleJewelryCouncilThe Quarterly News from the Responsible Jewellery CouncilSEPTEMBER 2009Mining SupplementThe final piece of the RJC System,the Mining Supplement, is on trackfor completion in December 2009.The Mining Supplement is developingadditional mining-specific standardsthat, in addition to the existing Codeof Practices, will apply to Memberswith mining facilities. Once theseare finalised and incorporated intothe RJC System documentation –standards, guidance and assessmentquestions – the RJC’s system willhave delivered its goal of acertification system that covers thewhole gold and diamond jewellerysupply chain, from mine to retail.Standards development processThe development of the Mining Supplement isunderpinned by a process of stakeholderconsultation and engagement. The RJC commits to: be open and transparent in its standardsdevelopment process for the Mining Supplement encourage and facilitate input from a wide rangeof interested and affected parties treat input from interested and affected partieswith integrity and respect, and report publicly on submissions received,including how comments have been addressedin subsequent drafting.Two 60 day consultation periods have been held inSeptember-October 2008 and July-August 2009,and inputs have been used to improve and refinethe drafts. A third and final 30 day consultationperiod on the Mining Supplement opened on 17thSeptember 2009. Members and stakeholders areencouraged to take the final opportunity to reviewthe standards and provide feedback.Visit the Mining Supplement page ultative PanelA Consultative Panel for the Mining Supplementwas established in July 2009. External participantsin the Consultative Panel were invited on the basisof input into the first round of public consultationfor the Mining Supplement and/or their pastengagement in dialogues about mining-relatedstandards, verification and certification. TheConsultative Panel is working closely with the RJCStandards Committee to further develop the draftstandards and guidance, as the RJC works towardsfinalisation of the Mining Supplement forDecember 2009.The Panel includes the participation of thefollowing: Okyeame Ampadu-Agyei, Corporate SocialResponsibility Adviser, Ghana Assheton Stewart Carter, Vice PresidentCorporate Community Engagement, Pact Christine Charles, Board Member, AboriginalEnterprise in Mining Energy and Exploration Cristina Echavarría, Executive Director, Alliancefor Responsible Mining Julie Gelfand, Vice President SustainableDevelopment, Mining Association of Canada Dorothée Gizenga, Executive Director, DiamondDevelopment Initiative International Felix Hruschka, Standards Co-ordinator, Alliancefor Responsible Mining Deanna Kemp, Senior Research Fellow, Centrefor Social Responsibility in Mining, University ofQueensland Estelle Levin, Director, Resource ConsultingServices Georgina Pearman, Post-Mining Alliance, EdenProject Gordon Peeling, Chief Executive Officer, MiningAssociation of Canada Andrew Rouse, Resource Conservation Manager,WWF Australia Ian Smillie, Chair, Diamond DevelopmentInitiative InternationalPerformance I Accountability I ConfidenceIN THIS ISSUETRACEABILITY AND CHAINOF CUSTODY2JCK LAS VEGAS2JA INTERNATIONAL JEWELLERY SHOW 2PREPARING FOR SELF ASSESSMENTUNDER THE RJC SYSTEM3INTERNATIONAL JEWELLERY LONDON 4RAPAPORT DIAMOND CONFERENCE4NEW BOARD APPOINTMENTS4NEW RJC STAFF MEMBER4RJC ACCREDITATION OF CONFORMITYASSESSMENT BODIES5RETAIL MEMBER WORKSHOP5RJC TRAINING PROGRAM5RJC SUPPORTS UN GLOBAL COMPACT 6EUROCANTERA’S COMMITMENT6NEW RJC MEMBERS7THE RJC IN INDIA8The RJC MonitOR September 2009

The RJC Monit0RMining SupplementContinuedTraceability and chain of custodyRJC Members:Tracing of jewellery components suchas gold and diamonds, also knowngenerally as ‘chain of custody’, is anissue of keen interest to many RJCMembers and stakeholders. Rob Headley, Chief Operating Officer,Jewelers of America (Co-Chair RJC StandardsCommittee) Andrew Parsons, Environmental PolicyAdvisor, AngloGold Ashanti (RJC StandardsCommittee) Mick Roche, Global Practice Leader –Stewardship, BHP Billiton (Co-Chair RJCStandards Committee)Support: Michael Rae, Chief Executive Officer, RJC Fiona Solomon, Standards DevelopmentDirector, RJCThe RJC is very grateful for the time, expertiseand valuable contributions of the ConsultativePanel participants. A series of teleconferenceshave been convened on key issues which havebeen very effective at improving the MiningSupplement drafts.Some NGOs involved in the Initiative forResponsible Mining Assurance (CAFOD,Earthworks, Great Basin Resource Watch,Center for Science in Public Participationand Oxfam Australia) were also invited toparticipate in the Panel but declined in a publicletter to the RJC. The RJC remains open toengaging with these stakeholders during theremainder of the Mining Supplement processand as the RJC moves into implementation ofits system in 2010.Contact: fiona.solomon@responsiblejewellery.comJCK Las VegasThe Responsible Jewellery Council was representedat the most recent JCK Las Vegas Show by JohnHall, Vice Chairman, and Catherine Sproule, ChiefOperations Officer, who participated in severalevents, delivering presentations on the RJC Systemon the Panel “The Burma Bill, Irradiated Stones,Cultured Pearls: How to Be Compliant”; at the JAEducation Panel “What Jewellers can do for thefuture?”; attending the Round Table “TheEvolution of Our Industry” and addressing at TheIt is not currently addressed by the RJC system,which is focused on the certification of responsiblebusiness practices of its Members, but it is anavenue that the RJC could look into in order toprovide additional services and benefits to itsMembers. The RJC proposes to further investigatethis issue in 2010.There are three main dimensions to a chain ofcustody approach. First, whether the practices areresponsible at the source. Second, whether thematerial can be tracked. Third, whether thepractices between the source and the endconsumer are also responsible. There are a rangeof attempts at tackling chain of custody whichusually involve claims of origin and the trackingdimension.The RJC may be unique in potentially being able tocover all three dimensions. Today, the RJC isbuilding a certification system that certifiesresponsible practices of its Members. A Memberbusiness can individually decide to assemble asupply chain of other RJC Members whosecertifications will provide evidence of practice ateach step of the chain. So the Code of Practices(including the Mining Supplement when it iscomplete) will address the first and third issuesabove. The piece RJC does not currently offer is thetracking dimension, i.e. the ability to certify a claimconcerning a chain of custody.The RJC’s role could focus on certification of thevalidity and effectiveness of the tracking systems,in addition to claims as to the practices at thesource. RJC would not offer its own producttracking system to the industry. Such systems arealready commercially available from variousproviders, in the form of software-driven platforms.For example, the Walmart ‘Love, Earth’ jewelleryrange uses a product and component trackingsystem that enables individual jewellery pieces tobe tracked back to the mine, refinery andmanufacturer from which they were made. In acase like this, RJC could certify both the businesspractices of the different companies (RJCMembers) in the chain, and the validity of theactual chain of custody.The current work on the Mining Supplement willfinalise the standards of responsible practice at thesource of the jewellery supply chain. In 2010, theRJC would like to investigate the feasibility andattractiveness of a chain of custody certification tocomplement RJC certification against the Code ofPractices. We would welcome the contributions ofinterested Members and stakeholders to thisprogram.To express interest in engaging in thisprocess, please contact Fiona Solomon atfiona.solomon@responsiblejewellery.comRapaport Fair Trade Jewelry Conference. John Halland Catherine Sproule held successful interviewswith many trade media Members.JA InternationalJewellery ShowCatherine Sproule attended the JA InternationalJewellery Show in New York. Catherine made apresentation on the implementation of the RJCSystem and its future steps.Performance I Accountability I ConfidenceCatherine SprouleThe RJC MonitOR September 2009

The RJC Monit0RPreparing for Self Assessment under the RJCCertification SystemThis is a good time for Members tostart making plans for conductingtheir Self Assessments, as the firststep in achieving RJC Certification.The Self Assessment providesCommercial Members of the RJCwith the opportunity to reviewtheir business practices against theCode of Practices and to identifyand address any areas of nonconformance, prior to engagingauditors to conduct the VerificationAssessment. Members can beginSelf Assessments at any time.The Self Assessment can be divided intothree major components:1) Planning and Preparation;2) Review of Business Practices; and3) Developing and Implementing CorrectiveActions.1. Planning and PreparationMembers should begin by assigning a seniormanager to be the coordinator who oversees theoverall certification process, including the SelfAssessment, the engagement of the auditors, andliaison with the RJC. For larger organisations,a small team of employees may need to beorganised to assist the coordinator in organisingand conducting the Self Assessment. All should befamiliar with the Applicable Law and the RJC coresystem documents, which are available on theRJC website, and should take advantage of theweb-based training sessions that will begin inOctober 2009.The Self Assessment must cover all of theapplicable provisions of the Code of Practices forall of the Certification Scope – those parts of theMember’s business that actively contribute to thediamond and gold jewellery supply chain. (Bycomparison, the Verification Scope, which isdetermined by the Auditor, covers those parts ofthe business, and those provisions of the Codeof Practices, that are to be formally audited).For more complex businesses, the coordinatorshould develop a plan for when different facilitiesor business units may be visited, by whom and forhow long, and for the assembly of documents andother relevant information, and for the monitoringand evaluation of corrective actions.Internal communications should also be consideredto ensure that employees are aware of the SelfAssessment and its role in the certification process.Such communications should come from as seniora level of the company as possible.2. Review of Business PracticesMembers should use the RJC AssessmentWorkbook, in conjunction with the RJC AssessmentManual, to assess their conformance with theCode of Practices. The same documents will alsobe used by the auditors to carry out theirVerification Assessment.The Assessment Workbook is organised accordingto the provisions of the Code of Practices, andincludes specific “Assessment Questions” whichapply to each of the provisions. For each of theQuestions, the Workbook has several sections thatwill need to be completed:non-conformances should therefore be resolvedbefore the Verification Assessment to achieve athree year certification.The time and effort required to complete a SelfAssessment will vary widely depending on thescale and complexity of the Member’s business,its management systems, its experience withauditing, and the nature of any corrective actionsthat it may need to develop and implement.Allowing extra time to complete the SelfAssessment could be a good strategy for manyMembers, to ensure that it can be used as anopportunity for learning and improvement, andto reduce the risk of non-conformances beingidentified during the Verification Assessment.For more information about Self Assessment, contactfiona.solomon@responsiblejewellery.com Documentation of relevant Objective Evidence Record of Observations and Findings Identification of the responsible person or officeFiona Solomon The Performance Rating, with reasonsIt is important to make sure that evidence used tosupport the findings is objective, which means thatit can be verified, and is clear and unambiguous.3. Developing and Implementing CorrectiveActionsAny non-conformances identified during the reviewof business practices will need to be addressedthrough corrective actions to eliminate the causeof the non-conformance and prevent it fromrecurring. Minor non-conformances do not needto be completely resolved before the VerificationAssessment, as long as there is evidence that canbe provided to the auditors showing that effectivecorrective actions are being implemented.If a major non-conformance is found during theverification assessment, a formal Corrective ActionPlan must be implemented, and the certificationperiod during the inaugural implementation of theRJC System will be one year instead of three. MajorPerformance I Accountability I ConfidenceThe RJC MonitOR September 2009

The RJC Monit0RIJL - International Jewellery LondonOn Sunday, September 6th, MichaelRae, Chief Executive Officer, RJC,represented the Council at theannual IJL - InternationalJewellery London Show anddelivered a presentation on theMichael Hoare, and Executive Committeemembers John Hall, Geoff Field and Mick Roche,together with Michael Rae participated in the“The Great Debate 2009”, organized by theBirmingham Assay Office. The theme of the eventwas “Benefiting from working together to deliveran ethically responsible supply chain”.current poor economic climate. Reduced demandfor diamonds and gold jewellery will increasestresses throughout the supply chain, with theresult that unscrupulous operators may be temptedto resort to unethical and poor practices. A hottopic for discussion was the desirability of findinga credible means of evidencing chain of custody fordiamonds and gold.On Monday, September 7th, RJC Board Member,The debate centred on the challenges ofCorporate Social Responsibility and particularlyhow ethical issues continue to engage theindustry, whilst it simultaneously focuses on theRapaport InternationalDiamond Conference2009New appointedMembers to theBoard of DirectorsNew RJC StaffMember,Anna LeachRob Headley, Chief Operating Officer, Jewelersof America, represented RJC at the RapaportInternational Diamond Conference in New Yorkon Thursday, September 10th. The theme of theConference was “New Realities. Where do wego from here?”The RJC is delighted to announce that in July theRJC Board unanimously appointed Donna Baker,President and Chief Executive Officer of theGemological Institute of America and MichaelAllchin, Chief Executive and Assay Master of theBirmingham Assay Office as Directors to representthe Service Industries Forum. Their skills, longindustry experience and enthusiasm will beinvaluable to the Council.Ms Anna Leach has joined the RJC as our newAdministrative Services Coordinator. In hernew role, Anna is responsible for the dailyadministrative support to the Council and is theprimary contact for the RJC Members and publicinquiries.RJC System, which aims to beginfull operation in December 2009.Rob participated in a multi-stakeholder paneldiscussing the importance of human rights inthe jewellery industry.Anna can be reached at the RJC London office:Anna Leach, Administrative Services Coordinator,Responsible Jewellery Council, First Floor,Dudley House, 34-38 Southampton Street,London WC2E 7HFT 44 (0)20 7836 6376F 44 (0)20 7240 5150E anna.leach@responsiblejewellery.comRob Headley, Chief Operating Officer,Jewelers of America.Anna LeachMichael Allchin, Donna BakerPerformance I Accountability I ConfidenceThe RJC MonitOR September 2009

The RJC Monit0RRJC Accreditation of ConformityAssessment Bodies and their AuditorsThe RJC is now open for applicationsfrom prospective conformityassessment bodies (auditingorganisations) to become accreditedunder the RJC System. Accreditedauditors will be able to carry outthird party verification assessmentsagainst the Code of Practices forMembers, and make recommendationson RJC certification. This process isillustrated in the figure, right.Accreditation reflects RJC review and endorsementof a conformity assessment body’s competence,independence, quality control and integrity.Auditors will be required to undergo training onthe RJC system before they are accredited to carryout Verification Assessments for RJC Members.RJC accredited auditors will be listed as such onthe RJC website. The publicly available list willcontain pertinent contact information about theconformity assessment bodies and their auditors,including which part of the diamond and/or goldjewellery product supply chain they have beengranted accreditation for (based on theirexperience) and in what regions they haveresources and capability to operate.This is a good opportunity for Members to remindthe auditors currently used for other third partyaudits about becoming RJC accredited. Asexamples, auditing organisations that are currentlyaccredited to conduct certification and surveillanceaudits against ISO14001 for environment orOHSAS18001 for health and safety, or similarproprietary systems, are likely to be eligible toapply.ResponsibleJewelleryCouncilResponsible JewelleryCouncilAccreditsConformity AssessmentBodies and AuditorsWho verifyRJC MemberOrganisations forconformance with theRJC Codes of PracticeThe key documents that prospective applicants willneed are available on the RJC website sibleJewelryCouncilRetail MemberHolds SupplierWorkshopThe RJC was delighted to participate in the firstever Member-initiated workshop devoted toinforming its suppliers about the RJC System.The Home Retail Group hosted a hands-onworkshop on April 28, 2009 with its suppliersto educate them on why being a RJC Member isvital to their business. Michael Rae made apresentation on the RJC System at theworkshop held at the company’s headquartersin Milton Keynes in April.RJC TrainingProgramStarting in October, 2009, a seriesof web-based training sessions willbe delivered to RJC Members andto auditors seeking accreditationunder the RJC System.The training sessions will be delivered by live“webinars” lasting 60 to 90 minutes, scheduledat convenient times for different locations, andwill include presentations and opportunities toask questions. Each webinar will cover atraining module, such as “General Guidance toAuditors on the RJC System”; or “Preparing forand Conducting Self Assessments”. In totalthere will be about 20 training modules, whichwill allow flexibility for Members andprospective auditors to take a set of trainingmodules that reflects their needs or interests.Auditors seeking accreditation will be requiredto take part in RJC training, whereas forMembers it is voluntary. Detailed informationabout the schedules and module outlines willbe forwarded to Members in October.For background information on the RJC on.htmlPlease contactaccreditation@responsiblejewellery.comwith any questions and to apply.Performance I Accountability I ConfidenceRJC Accrediation ProcessThe RJC MonitOR September 2009

The RJC Monit0RHow is the RJC supporting the UN Global Compact?On July 27th Catherine Sproule, Chief OperationsOfficer, RJC, met with Olajobi Makinwa, CivilSociety Coordinator, United Nations GlobalCompact, at the United Nations Headquarters inNew York City to report on the latest activities ofthe Responsible Jewellery Council.The RJC Code of Practices (COP) sets standards ofresponsible business practices for its Members. TheGlobal Compact has ten principles in the areas ofhuman rights, labour, the environment and anticorruption.Global Compact PrincipleThe following table highlights the RJC’s support ofthe Global Compact through its stand

RAPAPoRT DiAMonD ConFeRenCe 4 neW BoARD APPoinTMenTS 4 neW RJC STAFF MeMBeR 4 . Dorothée Gizenga, Executive Director, Diamond Development Initiative International Felix Hruschka, Standards Co-ordinator, Alliance . attending the Round Table “The Evolution of Our Industry” and addressing at The

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