The global commodities trader Trafigura is promoting a responsible sourcing and financing model aimed at integrating artisanal miners into formal supply chains and expanding industrial mining capacity in Sierra Leone, according to remarks made at Sierra Leone Mining Week in Freetown.
Speaking at the event, Xavier Miderez, head of Trafigura’s precious metals activities, outlined a dual strategy combining pre-financing for large-scale mining operations with structured engagement in artisanal and small-scale mining (ASM) through government-led initiatives.
Miderez said the company’s financing model provides working capital to mining projects while connecting producers to global buyers, including refiners, luxury manufacturers, central banks and commodity exchanges.
He noted that Trafigura works with roughly 50 refiners worldwide and partners with logistics providers and financial institutions to support downstream distribution of refined bullion.
The trader is also involved in initiatives linked to responsible sourcing standards, including collaboration with industry frameworks such as the World Gold Council and private certification schemes like Swiss Better Gold, which provide price premiums for responsibly produced gold.
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These premiums, Miderez said, are designed to reward miners and local communities that adhere to environmental and social standards, creating financial incentives for improved mining practices.
On artisanal and small-scale mining, he stressed that formalisation efforts must be anchored in government-led programmes rather than fragmented private initiatives, citing concerns over scalability, legality and environmental, social and governance (ESG) risks.
“We would privilege working with government initiatives,” he said, arguing that state-managed buying schemes are better positioned to aggregate production, ensure tax compliance and improve traceability across the supply chain.
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Miderez added that digital traceability systems have advanced significantly in recent years, making it easier to monitor gold flows from remote mining areas to international markets.
He said such technologies could help bridge the gap between informal mining activity and global responsible sourcing standards if properly implemented at scale.
The discussion highlighted Sierra Leone’s emerging industrial mining base, particularly the operations of FG Gold, which Miderez said could serve as an anchor for broader sector reforms.
He argued that rising formal production would increase royalty revenues, creating fiscal space for governments to invest in licensing, traceability systems and support services for artisanal miners.
According to Trafigura, stronger state-led frameworks combined with private sector financing could help transform ASM into a more regulated, taxed and sustainable contributor to national economies.
The company said its global reach across more than 170 countries enables it to provide market access, technical expertise and benchmarking support for emerging mining jurisdictions.
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However, Miderez cautioned that successful reform depends heavily on governance, including transparent licensing systems, credible enforcement mechanisms and policies that ensure revenues reach mining communities.
He said Sierra Leone’s current combination of industrial expansion, improving traceability tools and international investor interest presents a policy window to formalise its gold sector.
The model proposed by Trafigura aims to align commercial incentives with public policy goals, linking financing, certification premiums and government oversight to create a more transparent and sustainable mining ecosystem.
