Dynacor is one of the largest gold ore purchasing processors in Peru operating a specialized, yet ardently proven business model based on a real venture with artisan miners as well as the communities in which they live and work. Considering that 2013, the government has been formalizing the artisan mining industry to mitigate the dangers associated with inadequate environmental management, insufficient health and safety provision and escalating security issues. Dynacor has supported a significant number of miners in the process of legitimizing their operations by initially helping them enroll with the government’s formalization program.
Dynacor has established fair and transparent trade practices like assistance in all sampling procedure, repeat samples, arbitrage process and administrative and technical training. All these initiatives have gained Dynacor the esteem of the artisan miners and therefore created the introduction of a stable and authentic supplier base in the area. Dynacor reinforces this relationship by bringing specific support to its providers in the area, thus maximizing the yield of their small-scale operation, and consequently their earnings. Other steps emphasize the importance awarded to artisan miners from Dynacor such as overnight lodging at the mill, speedy payment turnaround (24hrs), oversampling of every load for confirmation of gold material from an independent laboratory are highlights of these value-added services provided.
The cost of gold is offer and demand on the available. Dynacor is providing reassurance for its strategic partner, Swiss-based private firm, Precinox SA at the progression of a new label called PX Impact Gold. PX Impact Gold coming from Dynacor’s mining providers guarantees that the total traceability of ore as well as its roots in the artisan mines with a certificate of mercury-free gold at the processing system. Most Precinox SA customers like the world’s leading European luxury watchmakers are paying a premium for the PX Impact Gold certificate. The further profits from sales of this PX Impact Gold are flowing to the artisanal miner’s communities through direct investment in the health or education industry. The PX Impact Gold application in Peru has started and is visibly growing across the nation’s small mining community at a faster rate than expectations.
The cost of the ore bought from artisan miners is set on an individual transaction basis in which Dynacor determines the actual grades and recovery rates obtained from every load. The miner provides a selection of four different samples from each delivery, including one remitted to the supplier, and an analysis is conducted to determine its contents. If the outcomes are out of spec, carrying out an additional analysis is the standard process. At the request of the miner, the fourth sample would serve for arbitrage where an independent laboratory tests the ore. Both parties agree that the individual laboratory analysis has the last say and Dynacor pays so. The miner receives from situ payment conferring to the spot price of gold.
Directly speaking, Dynacor’s competitive advantage rests on its own twenty years of involvement with artisan miners and their ore. The company’s knowledge in processing different sorts of ore is second to none. The group strives to maintain high gold retrieval criteria together with all of the connections and trust it’s cultivated over the years along with the providers that number in the hundreds. Dynacor’s extensive network of ore purchasers in Peru with the readily available location of its mill a few minutes off the Pan American highway in Chala equate into a reliable and stable source of supply out of the artisan miners.
Artisan mines sometimes employ local and frequently family-related employees, and they usually utilize hand tools and second-rate gear. Artisanal miners often run the business of mining seasonally or to a part-time foundation, alternating with additional financial activities like farming. An estimated 13-20 million individuals over 50 developing nations are directly engaged in the artisanal mining industry. This presents Dynacor with a vast selection of opportunities for its future growth. The company plans to turn into an ally with developing countries by working together to enhance the small-scale mining industry.