African Gold Group, Inc. reports that it has collaborated with SAFE Ltd, a company that specializes in offering top-class advice and solutions for companies seeking transparency and provenance in their supply chains, advice on existing and forthcoming regulations, and enhancements in ESG standards.
As part of the initial phase, SAFE has made a Digital Supply Chain Map for AGG, which will allow it to evaluate and overcome all threats together with its future supply chain, which could be exposed to corruption or influenced by conflict minerals regulation.
Also, the Digital Supply Chain Map offers the foundation for executing the correct technology to ensure traceability and provenance. Starting the process before the operation enables African Gold to develop a strong and safe gold supply chain right from production through to finished product. End-users can access this supply chain to guarantee integrity at each step of the process.
The importance of ensuring full transparency and provenance along every point in the supply chain cannot be underestimated. With a much more stringent regulatory framework due to be introduced on gold in the European Union at the beginning of 2021, as well as our own internal requirements to ensure that we operate at the highest levels of ESG, this partnership is timely in our evolution towards construction and operation.
Danny Callow, Chief Executive Officer, African Gold Group, Inc.
African Gold aims to work with SAFE and its international collaborators to create a comprehensive solution that will offer complete control of the production of gold through to the end-user.
SAFE Ltd integrates expertise via Squires Patton Boggs, its legal partners skilled in conflict minerals legislation, supply chain, and operational personnel with several decades of experience in logistics of commodities in tough countries globally. It also leverages the expertise of its technology collaborators able to set up “best-in-class” systems such as blockchain technology.
Growing regulatory and commercial drivers mean customers increasingly need to mitigate risks in their supply chains. Regulation & market restructures are widening scope and increasing standards on players previously shielded from obligations.
Dafydd Davies, Managing Director, SAFE Ltd
Davies continued, All players must align processes and controls that identify, assess, mitigate and report on risks to new and tightening global legislation. Combine this with the increasing focus on ESG from the investment community, and it’s clear the industry has a lot of work to do cleaning up its supply chains.”
In January 2021, the new EU Conflict Minerals Regulation will be fully implemented and will include gold, along with tantalum, tungsten, and tin, called 3TG. Such rules will guarantee that EU importers of 3TG satisfy the international responsible sourcing standards, fixed by the Organization for Economic Co-operation and Development (OECD).
Also, the regulations will guarantee that global and EU smelters and refiners of 3TG source responsibly, assist in breaking the link between conflict and the illegal exploitation of minerals, and help stop the abuse and exploitation of local communities, such as mine workers, and assist local development.