Our journey commences when our international client expresses an interest in purchasing Fairmined certified gold. This interest is typically communicated via our website or email, with the client indicating a desire, for instance, to acquire 200 grams of 24 karat gold. We then request the delivery address to ascertain our ability to fulfill the order and determine if it qualifies for complimentary shipping. Upon receiving the address, we generate a formal quotation. Once the quotation is accepted, we proceed with the order upon receipt of the wire payment.
We have two options: if our inventory is available, we start the authorization process with Colombia’s National Mining Agency. This usually takes around 5 business days. Once approved, we move on to the customs authorization process, where a customs official visits our office to inspect our paperwork and oversee the assay to confirm the exact gold content of the Fairmined certified gold intended for export. This entire procedure generally spans 7 business days
For larger orders, we typically avoid holding inventory due to its high volatility and storage expenses. Instead, we need to verify and synchronize with our customer whether the Fairmined certified mines in Colombia have stock available. Once our client approves our quote and sends the wire transfer, we secure the price with the mine and proceed with the gold purchase. Our primary sources of gold are typically the Iquira mine and Chede mine. To mitigate volatility, we work closely with both our clients and the mine to set the price simultaneously.
Typically, it requires about three business days for representatives from the Iquira or Chede mine to transport their gold to our premises. Upon arrival of the dore bar at our office, we immediately smelt it in an induction furnace to ensure uniformity for assaying purposes. We then conduct a preliminary assay to facilitate a 90% payment for the gold dore bar. Our assaying process utilizes specialized machinery imported from Italy and employs the fire assay method, renowned for its precision in determining the gold content of a dore bar. Upon receiving the assay results, we promptly wire the remaining 10% payment to the Fairmined certified mine.
Upon acquiring the dore bar, we promptly commence the refining process, ensuring the complete segregation of the Fairmined certified gold to prevent any mixing with other gold types. We employ the aqua regia digestion process and utilize imported reactors and machinery from Italy to carry out our refining operations. Rest assured, in a subsequent blog post, I’ll delve into the intricacies of our entire refining procedure.
Once the refining phase wraps up, we move on to fulfilling our orders. If our refining batch surpasses 1 kg, we’re able to produce casting grains. However, for batches falling below this threshold, we opt for manufacturing wire for casting. This choice stems from the fact that our gold granulator operates efficiently from 1 kg onwards, making it the smallest gold granulator in the market. Typically, granulator machines are tailored for handling large quantities of gold. It’s essential to note that the presentation of pure gold or its alloys doesn’t impact their intended use. Nonetheless, when dealing with Fairmined gold and silver, we encounter distinct challenges. Unlike the prevalent practice in the gold refining industry, which revolves around large volumes, our refinery operates on a smaller scale. Refining batches typically kick off at 150 to 300 kilograms, with machinery primarily designed for large-scale operations rather than catering to smaller refineries like ours.
Ensuring strict adherence to the segregation principle stands as the cornerstone of Fairmined gold. Our meticulous protocols guarantee that the Fairmined gold you acquire originates solely from the designated mine, free from any blend with other gold. This unwavering commitment to purity is what distinguishes Fairmined gold in the market. We implore all stakeholders to uphold this principle without compromise.
Unfortunately, some large-scale refineries engaged in the Fairmined initiative aim to discard this principle from the standard to enhance efficiency. This could involve mixing Fairmined gold with other sources or trading gold from undisclosed origins. If you’re in the process of procuring Fairmined gold, we strongly recommend consulting your authorized supplier regarding their practices in maintaining the segregation principle. Keep in mind, your investment in Fairmined gold hinges on its authenticity, ensuring it remains untainted by gold sourced from uncertain origins.
The refining of gold itself incurs minimal costs, typically amounting to just 0.03% of the gold’s value when carried out efficiently, resulting in negligible losses. However, the bulk of our expenses and costs are attributed to fixed costs and investments in machinery. Within our refining and chemical division, we have a dedicated team comprising one chemical engineer and three technical chemists. Their responsibilities encompass a range of tasks, including smelting, assaying, refining, and the production of casting grains or pieces, gold potassium cyanide, gold alloys, wire, and sheet. Additionally, they diligently ensure our compliance with environmental regulations, overseeing proper liquid disposal, managing environmental discharges, and maintaining machinery, along with stocking adequate supplies for all processes. Our administrative staff includes an accountant, an assistant, and an individual managing international commerce, responsible for submitting authorization requests to Colombia’s mining agency and coordinating customs requirements for reviewing documentation and overseeing the assaying of each exported Fairmined product. Lastly, our directives are composed by our chief operations officer, chief financial officer, and chief executive officer, who collectively steer the company’s strategic direction and operations.
For orders weighing less than 1 kg, we utilize FedEx Priority shipping, often providing complimentary international shipping for most orders based on minimum order quantities (MOQ) and the final destination. On the other hand, for orders exceeding 1 kg, we typically rely on trusted carriers like Brinks or American Cargo. Additionally, we engage local security transport services for the last-mile delivery. Our active supply chains span across various locations, including the UK, United States,Canada, Singapore, Hong Kong, Europe, and South Africa. With over a decade of experience in international commerce, we assure you of a seamless door-to-door process for exporting Fairmined certified gold to these destinations.
As a hardworking team marking our ten-year milestone, we’ve dedicated ourselves to meticulously refining every aspect of our operations to offer the most competitive prices for Fairmined certified gold and silver in the market. Typically, gold-producing nations in the global south don’t add value to their raw gold, exporting it to refineries in the global north. However, we’re proud to challenge this norm by adding value to raw materials right here in our country. Your decision to choose Fairmined gold directly contributes to the social development of an entire supply chain based in Latin America. Each Fairmined certified mine provides employment to approximately 150 to 300 miners who receive fair wages under ethical working conditions. Rest assured, the Fairmined standard ensures that the highest environmental and social standards are adhered to throughout the entire process.