Gold mine group opposes planned US disclosure rule

Wed Mar 2, 2011 8:33pm GMT

* Conflict mineral provision could ruin Africa's gold ops

* WGC working to credible standard but no proposal yet

By Frank Tang

NEW YORK, March 2 (Reuters) - The largest industry group representing global gold miners said a proposed U.S. rule aimed at cutting funds to armed rebels in the Democratic Republic of Congo (DRC) will jeopardize Africa's gold mining and economic activities.

The World Gold Council (WGC) said the provision of the Dodd-Frank legislation requiring disclosure should not start from the perspective of labeling all gold as a "conflict mineral."

"We are absolutely supportive of the need to eradicate conflict gold coming out of the DRC," Aram Shishmanian, CEO of the WGC, said in an interview. "The proposed legislation, we believe, has the high risk of stigmatizing gold."

"In fact, it means that gold is guilty of being conflict-produced, unless proven innocent across the world," he said.

The WGC is funded by the gold mining industry to market the metal.

Shishmanian said that only 0.6 percent of global gold output is from the DRC.   Continued...

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