Gold traceability: coop demands are defended in public hearing

The OCB System participated, this Tuesday (12), in a public hearing held by the Economic Affairs Committee (CAE) of the Federal Senate to discuss the commercialization and traceability of gold in Brazil, based on Bill (PL) 836 /2021. Alex Macedo, technical analyst from the Institutional Relations Management, represented the entity to defend the interests of mineral cooperatives and presented suggestions for improving the text. In a deliberative session held after the hearing, the collegiate approved the proposal, which will still undergo a supplementary vote in the CAE itself and will go on to be considered by the Chamber of Deputies, unless there is an appeal presented by the senators for voting in the Plenary.

PL 836/2021 changes current legislation in the country to create ways to parameterize the sale of gold and guarantee traceability of the production chain. In agreement, the rapporteur of the proposal, Senator Jorge Kajuru (GO), promoted changes to its substitute and removed the provision that prohibited the commercialization of gold from indigenous lands, regardless of the stage of the demarcation process. Furthermore, based on the actions of the OCB System, the board approved a transition period of 90 days for the suspension of the right to directly sell gold by miners in any type of work. With the new rule, only legally constituted holders or agents will be able to make the first sale of gold.

During the hearing, topics considered essential to improving the regulation of gold trade were discussed, such as restricting the purchase and sale of the metal to legal entities and defending the mandatory electronic issuance of invoices. These measures, according to the guests, ensure increased transparency and control over the sale of gold, which also guarantees greater security for everyone involved in this production chain.

Alex Macedo reinforced points highlighted in a technical note sent by the OCB System with suggestions and adjustments to the project to allow for an adequate and gradual transition to the new rules. The entity defended the need to provide good conditions, environmental, social, safety and health legalization for miners and cooperatives operating in the segment. One of the proposals presented was the exclusion of the repeal of article 2 of Law No. 7,766/1989 and the repeal of article 9 of Law No. 11,685/2008, with a transition period of two years for adjustment. “This deadline is necessary for a smooth transition that effectively meets the new rules proposed by the project,” he stated.

Article 2 authorizes cooperatives, as long as they are regularly constituted, to operate with gold. Article 9 guarantees the prospector, in any type of work, the right to sell his production directly to the final consumer, provided that ownership of the area of ​​origin of the extracted ore can be proven.

For the analyst, the formalization parameters provided for in the measure help to reduce social conflicts and strengthen the sector’s traceability. “We see the PL as an opportunity to guarantee the legality and dignity of mining workers. Our cooperatives organize these workers based on a responsible, sustainable mining activity, with control of origin, due collection of taxes and social license. We are in favor to traceability and we understand that the project is worthy”, he added.

Alex also highlighted the commitment of cooperativism to the adoption of policies that combat asset crimes in mineral cooperatives. He cited the partnership with the Alliance for Responsible Mining (ARM), which aims to curb environmental crimes and money laundering. “Together with ARM, we consolidate work to combat illegal activity, with the adaptation of the CRAFT Code to the Brazilian context. We also work together with different sectors of society in a collaborative and judicious process to structure policies to combat crime, based in an international Due Diligence reference, responsible for establishing a national network of technicians trained in mitigating criminal operations”, he added. Currently, the OCB System brings together 77 mineral cooperatives that total 66 thousand miners.

Senator Jaime Bagattoli (RO), applicant for the debate, corroborated Alex’s speech and stated that small producers, in any segment, only gain strength if they are associated with a cooperative. For him, cooperatives are essential to provide strength to small producers. “The role of cooperatives is to generate power for those who produce on a small scale. Small businesses can only gain strength when they are associated with the cooperative business model”, he reiterated.

Government leader, Senator Jacques Wagner (BA) also highlighted the importance that cooperatives have with small producers, considering the production strength and the weight they gain when they are included in the business model. He cited the performance of the OCB System when worrying about the adaptation time, however, he suggested a shorter period. “The two-year period is very long. Therefore, I propose to the OCB, in its organized activities, a reduction of this interval to 90 days, in order to provide speed.”

Senator Sérgio Mouro (PR) cited the relevance of gold traceability to make the market legal and, consequently, add value to the metal. “This is an important and complex project, but it is necessary to question whether there are conditions for all illegal workers to be included in the legal market. Greater control is needed regarding the end of illegal mining, environmental destruction, and the exploitation of indigenous lands”, scored.

The hearing was also attended by representatives from the Brazilian Mining Institute (IBRAM), Ministry of Justice and Public Security (MJSP), Department of Financial Monitoring (DESIG), Federal Police (PF), Brazilian Institute of Gems and Precious Metals ( IBGM) and Instituto Escolhas.