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SAFINA, a.s. responsible smelter

Safina was included in the world certification program of responsible gold smelters

The Czech company Safina has entered the certification program of responsible gold smelters and refiners. During the qualification process, the smelter has to prove that it sources raw materials from organizations that respect human rights of workers and do not support militant groups in war conflicts. Company was included in the applicant list at the beginning of May 2017.

There are a number of international initiatives in the field of precious metals sourcing that aim at including of the ethical and moral principles into the supplier selection process. In particular, it’s the responsible gold, tin, tungsten and tantalum smelters and refiners list managed by Conflict-Free Sourcing Initiative (CFSI). This organization associates more than 350 world leading precious metals processor, associations and service providers.

The CFSI implement Conflict-Free Smelter Program (CFSP) that audits precious metals smelters and refiners to ensure that they do not support war conflicts through their raw materials sourcing. This is a voluntary initiative of enterprises, during which independent auditors control how a due diligence is facilitated in processes and supply chain managing systems to ensure that there will be no conflict raw materials.

Audits focus on control processes and through random checks they verify maintain of the due diligence in practice. If the processor proves that he is sourcing minerals without supporting militant organizations, he will be included in the list of responsible companies of the CFSP.

“I’m glad that our company has been included in the Conflict-Free Smelter Program and that we have the opportunity to prove the conflict-free sourcing program of gold that we process. As part of the social responsibility of our company, we obtain raw materials in a way that does not threaten the population in the mining areas and we try to reduce the suffering of people and violation of human rights, which is unfortunately even today typical for some areas. Now, we are preparing for a very demanding audit, during which we have to prove that we meet all the requirements. I believe we will meet them and we will be included in the list of responsible gold processors, "says Safina CEO Petr Koutský.

Currently, the CFSP is targeted at armed groups in the Democratic Republic of Congo, which is plagued by an endless civil war largely funded by the sale of minerals, and neighbouring countries, but this area of interest may change in the future depending on the development of the geopolitical situation.

 

Responsibility in the EU

What has so far been voluntary will be binding for all precious metals processors in the European Union for several years. The European Council on 3 April adopted new rules to avoid contributing to conflicts through mineral sourcing practices of EU companies. The new regulation will take effect in 2021 and will cover up to 95% of imports of gold, tin, tungsten and tantalum used in the manufacturing of consumer products such as computers, mobile phones and cars.

According to the new regulation, European processors of these metals will have to comply with the OECD due diligence guidance for importing minerals from conflict-affected areas and from risk areas. In addition to limiting the financial support of rebel groups, the aim is also to respect human rights that are often violated in these areas. As a result, developing countries should benefit more from their mineral wealth and this should not serve to prolong the protracted civil wars.

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Safina a.s. is one of the leaders in Central and Eastern Europe in the production of precious metals. The key activities of the company are purchase of materials and any kinds of raw materials containing precious and non-ferrous metals, their processing and production of a wide range of products with gold, silver and platinum group metals. Currently, the company is expanding its presence in the European market, as well as successfully developing its trading activities in the Russian Federation, North America and Asia. From 2016 Safina belongs to the global group Plaurum.

Group Plaurum unites the production sites in Russia (JSC EZOCM, OAO UZCHR, LLC UZCHP), Central Europe (Safina a.s.), the US (Safina Materials), China (Yantai Guodasafina High-tech Environmental Refinery CO., Ltd.), as well as trade offices in the United States, Slovakia, Poland, Romania and Kyrgyzstan. The main trends in the development of the group is the processing of mineral raw materials containing precious metals and recycled precious metals, provision of services for acquisition, processing,  refining and supplies of precious metals as well as production of industrial materials and products from alloys of precious metals. The group develops new technologies and products, analyzes various kinds of raw materials and materials containing precious metals, works out  its competences and range of services in the field of non-ferrous and rare earth metals.