Dynacor Group Inc. (TSE: DNG) and the World Gold Council have signed a memorandum of understanding to help bring more artisanal and small-scale gold production into the formal global supply chain through stronger processing standards, improved traceability and expanded access to responsible buyers.
Announced on Monday, the agreement combines Dynacor’s experience buying and processing ore from artisanal miners with the World Gold Council’s expertise in industry standards and gold market infrastructure. Together, the organizations plan to improve transparency, strengthen environmental and social practices and reduce illicit activity within the artisanal and small-scale gold mining sector.
Additionally, the partnership will support the World Gold Council’s Gold Processing Initiative, a program designed to formalize artisanal mining through centralized processing plants and origin verification technology.
The initiative also seeks to improve gold recovery while reducing mercury use during processing. It aims to give responsible miners better access to legitimate markets by creating clearer supply chains and attracting more responsible buyers.
The organizations also plan to work with governments, non-governmental organizations, and industry groups to develop best-practices for gold processing.
Those principles would cover miner due diligence, traceability, environmental performance, workplace health and safety. Furthermore, they would cover anti-money laundering controls, reporting requirements, independent assurance and responsible sourcing practices.
The partners also intend to help establish a globally recognized operating standard for processing plants that serve artisanal miners.
Meanwhile, the agreement supports the development of new processing facilities in Africa and Latin America.
The organizations also plan to seek international financing for those projects. They believe transparent operating standards could attract greater private and institutional investment into formalization efforts.
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Model could create a more transparent gold market
David Tait, the WGC’s CEO, said the partnership creates a practical framework to expand responsible artisanal mining across multiple countries.
He said the combination of processing infrastructure, stronger standards, traceability and broader market access could improve supply chain integrity.
Additionally, Tait said the model could create a transparent gold market by facilitating a way responsibly produced gold could enter international supply.
Dynacor president and chief executive officer Daniel Misiano said the agreement aligns with the company’s long-term goal of building a globally responsible artisanal gold processing business.
He said the partnership should create more opportunities for legitimate artisanal production to reach formal markets while supporting responsible practices.
Furthermore, Misiano said the memorandum demonstrates growing institutional confidence in Dynacor’s business model as the company expands internationally. He added that closer collaboration with governments and industry participants could support sustainable long-term growth while improving standards.
Edward Bickham, senior adviser for the WGC, has said artisanal mining will remain an important source of global gold production.
He argues that bringing miners into regulated supply chains offers a more effective solution than excluding them from international markets. His argument states that it improves environmental practices reduces criminal exploitation and creates economic opportunities for mining communities.
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