Strategies for sustainable development of the small-scale gold and diamond mining industry of Ghana

The small-scale gold and diamonds mining industry is of great importance to Ghana. Since its regularization in 1989 the sector has produced and sold over 1.5 million troy ounces of gold and 8.0 million carats of diamonds. During the same period the sector also provided direct employment to over 100,000 people and improved the socioeconomic life of many individuals and communities. However, these were largely achieved at a cost to the environment in areas where mining is carried out and there is the need to develop the industry in a sustainable manner. This paper looks at the developments in the small-scale gold and diamonds mining industry in Ghana and proposes some strategies on how the concepts of sustainable development could be applied to the industry.     

Corporate social responsibility in the mining industry: Perspectives from stakeholder groups in Argentina

Since the liberalisation of its investment regime in the 1990s, Argentina has seen a rise in foreign direct investment into large-scale exploration and exploitation of mineral resources. However, many social groups (local communities, grassroots movement and the church) often strongly oppose new mining projects on the grounds of environmental, ethical and economic concerns. In a situation marked by widespread conflict, mining companies continue operating and develop Corporate Social Responsibility (CSR) initiatives which are often promoted as a means of contributing to the sustainability and development of the nation. The paper develops a framework to highlight how the principles of stakeholder theory could be used as conceptual and practical guidance for conflict-resolution oriented CSR policies. The framework is further used to analyse two case studies of conflictive mining projects in Argentina. The paper explores how key stakeholders perceive contribution of CSR to welfare and the socio-economic development of mining communities and sustainable development of the nation. It demonstrates that institutional and social stakeholder networks often strongly oppose the idea of voluntary self-regulation implied by CSR in situations characterised by weak governance. Even though the CSR of companies could be improved in areas of corporate communication, transparency, stakeholder engagement and dialogue, it is not seen as a panacea for the social conflicts in the sector.     

Recent developments in small-scale mining

Artisanal mining is to be viewed not only as an issue requiring mining expertise, but also as a socio-economic issue in the context of poverty, requiring multi-sectoral attention. This article traces global employment estimates in small-scale mining, outlining the extent and economic impact of small-scale mining in selected countries in Africa, Asia and Latin America. New approaches and developments are analyzed with special focus on the interrelated roles of government, the private sector, non-governmental organizations, lending institutions and the local communities. The flow of foreign capital, the creation of joint ventures, and the contribution of women are also discussed, as are strategies that have been implemented as well as recent developments including developments in the areas of health and safety.     

Criminalization of “galamsey” and livelihoods in Ghana: Limits and consequences

The fact that the artisanal and small-scale mining (ASM) sector in Ghana is driven largely by poverty means that the sector is a major source of livelihood for people in mining communities across the country. However, given the various social and environmental problems associated with the ASM sector, there is now an emerging consensus that the formalization of the sector would not only allow for these associated problems to be addressed but also ensures that the sector contributes to sustainable development and safeguard the livelihood of local communities. While a large body of extant literature has examined the challenges and opportunities facing the process of formalization, the question of the criminalization of the sector and its consequences for local livelihood has received only limited attention. Drawing from primary data collected during fieldwork in Ghana, this study examined the livelihood implications of the ban on galamsey in the Tarkwa-Nsuaem Municipality in South-Western Ghana from the perspectives of local communities and other key stakeholders. The study reveals that the ban on galamsey has imposed significant socio-economic hardships on the people and appears to be entrenching poverty rather than sustainable development. The study considers the theoretical and practical implications of the findings for sustainable livelihood enhancement in developing countries.     

Harnessing the bonanza: economic liberalization and capacity building in the mineral sector

Over the past decade many developing and transition economies have liberalized their investment regimes for mining and privatized formerly state-owned mineral assets. In response, these economies have witnessed increased foreign investment in exploration and development, growth in the number and diversity of mineral projects, and the opening up of new channels for harnessing increased economic and social benefits from development in the minerals sector. The restructuring of fiscal and regulatory regimes to encourage foreign investment, and the associated influx of mining capital, technology and skills, is transforming traditional relationships between mining firms, local communities and the government. This transformation necessitates a re-evaluation of the most effective policy approaches to capture increased economic and social benefits from mineral production. This article considers effective mechanisms for improving the capacity of developing and transition countries to maximize the economic and social benefits of mineral production. Common challenges associated with minerals economies are reviewed. Consideration is given to the opportunities for harnessing foreign direct investment and the possibilities for creating new partnerships between local communities, industry, government, and multilateral development agencies through social investment projects. The article concludes with a series of recommendations for the design and implementation of policy approaches towards harnessing mineral production for economic and social benefit following the liberalization of investment regimes for mining.     

Multiple scales of diamond mining in Akwatia,Ghana: addressing environmental and human development impact

Ghana is the second largest producer of gold in sub-Saharan Africa, and has experienced a significant increase in national mining production over the last two decades. Between 1983 and 1998, the mining industry brought approximately US $4 billion in foreign direct investment to Ghana. While large-scale gold mining has seen a significant increase, artisanal gold and diamond mining product have grown exponentially. While much research has been conducted on gold mining in Ghana, there is relatively little research on the environmental and human development consequences of diamond mining in the country. Unlike other West African countries such as Sierra Leonne and Liberia, small-scale diamond mining in Ghana has not been linked to conflict but its role in development has also been relatively modest. This paper examines large and small-scale mining in Ghana's largest diamond mining town, Akwatia, and their relative impact on environmental degradation, health, and the livelihood of artisanal miners. We conclude that while an increase in artisanal diamond mining has been a means of employement and income-generation for small-scale miners, there are some human development challenges, related to environmental burden from land degradation and health. GCD is an ailing mining company in Ghana, in desperate need of an injection of capital to keep the mine alive, but botched bidding has slowed the process of de-regulating the company. We also conclude that the de-regulation of GCD may lead to a relatively reduced environmental burden in Akwatia and more revenue for the GCD to invest in the human development needs of communities in the town.     

Small-scale mining and its socio-economic impact in developing countries

This article examines both the positive and negative socio-economic impacts of small-scale mining in developing countries, and outlines some key measures for improving sustainability in the sector. It is important to clarify that, in spite of experiencing its share of environmental- and health-related problems that adversely impact human quality-of-life, small-scale mining plays a pivotal role in alleviating poverty in the developing world, and contributes significantly to national revenues and foreign exchange earnings. Though these important socio-economic contributions make small-scale mining an indispensable economic activity, there is an obvious need for improved sustainability in the industry, more specifically, for operations to resolve pressing problems, many of which have wide-ranging impacts. However, because most small-scale mines are low-tech and employ poorly trained uneducated people, it is difficult for the sector to improve on its own. Thus, governments and regional international bodies must play an expanded role in bridging critical information, techno-logic and economic gaps. It is concluded that governments and regional organizations could accomplish much in the way of improved sustainability in the small-scale mining industry by: (1) legalizing small-scale mining and implementing sector-specific legislation; (2) contributing to community development and providing increased economic support; and (3) providing training and educational assistance, and playing an expanded role in the dissemination and transfer of important technologies.     

Contrasting community and corporate perceptions of sustainability: A case study within the platinum mining region of South Africa

The concept of sustainable development is debatable within the mining context as the fact that mineral resources are non-renewable makes mining inherently unsustainable. The need for a realistic definition of sustainability that can be applied to mining is important, in light of claims by the industry that sustainable development principles underpin aspects of their operations. Furthermore, the socio-economic upliftment that should logically follow the implementation of these principles is not visible in many mining areas. Within the theoretical frameworks of intermediate sustainability, our study aimed to determine the level of sustainability that is appropriate for the mining context. The evaluation of community perspectives within the Rustenburg platinum region in South Africa as a case study, based on qualitative information derived from structured questionnaires and informal interviews brings further clarity. We found out that the environmental and social costs associated with mining were high, while economic benefits to surrounding communities were low. The perceptions of community and corporations were found to contrast sharply: the reality experienced by community members fell well short of the optimistic scenarios presented in the corporate social responsibility reports of the mining companies, which has implications for the mining industry in the area. The Rustenburg region is typical of mining areas, more especially the developing world, and application of a realistic sustainable development concept here can help the mining industry elsewhere to move its operations onto a genuinely more sustainable path.     

Community relations and mining: Core to business but not “core business”

Over the past two decades the global mining industry has witnessed the necessity and emergence of community relations and development (CRD) functions, essentially under the rubric of sustainable development and corporate social responsibility (CSR). These functions provide companies with mechanisms through which to engage and manage their relationships with key stakeholder groups, share development benefits and protect business interests. Despite widespread claims by the industry that companies have adopted CSR as a ‘core competence’, we argue that the industry has yet to incorporate the CRD function as part of ‘core business’ at the level of practice. This article characterises a CRD function and related processes within the context of a large-scale mining operation in West Africa. Findings reflect a more universal trend relating to the function and organisational positioning of CRD practice in the resources sector. The authors argue that functional equity needs to be established if the sustainable development agenda is to have a genuine future within the mining industry.     

Small-scale mining in Ghana: The government and the galamsey

This paper argues that the current formalization system for small-scale gold miners in Ghana has been undermined and the small-scale mining laws no longer capture the reality of the sector’s activities. The paper will examine the small-scale mining system and shows that registered and unregistered actors operate not only in parallel but are actually intertwined and highly dependent on one another. The paper shows that the perceived dichotomy of formal and informal actors in the sector does not actually exist. The sector has instead evolved into a highly intertwined group of semi-formal sectors operating with varying degrees of legal registrations. The paper concludes that political leniency and law enforcement corruption has resulted in a booming small-scale gold system under poor government control. The paper recommends that politicians move to enact reforms to regularize the small-scale mining sector and curtail ubiquitous environmental and occupational safety problems. Anti-corruption initiatives and law enforcement reforms are the most urgent. However, reforming the laws is also necessary to capture and regulate the technological innovations the sector is currently using.     

Innovation for sustainable development in artisanal mining: Advances in a cluster of opal mining in Brazil

The objective of this article is to understand how the promotion of clusters of small economic agents in the gem sector has brought some improvements in the economic, social and environmental conditions in the mining sector and activities related to it. The research provides policy and theoretical contributions to the field of gem production, as well as enhances understanding of the under researched opal production in Brazil. It argues that government funding and technical support dedicated to the development of mining clusters, i.e. working with small economic agents as a whole and not individually, could promote not only more economic development, but also effectively incorporate social and environmental issues, such as workers safety, water management and tailings recycling. The argument is based on an evaluation of environmental, economic, social and institutional aspects of the opal mining cluster in Pedro II municipality, Piauí state. The results suggest that some formalisation of existing practices and adequate policies have triggered innovation with some positive effects on the performance of artisanal mining. Nevertheless, there are indications that if decision-makers plan to make this cluster more sustainable, they will have to include other issues in the debate including developing substituting economic activities.     

Exploring the origins of ‘social license to operate’ in the mining sector: Perspectives from governance and sustainability theories

In the mining sector, local communities have emerged as particularly important governance actors. Conventional approaches to mineral development no longer suffice for these communities, which have demanded a greater share of benefits and increased involvement in decision making. These trends have been spurred by the growth of the sustainable development paradigm and governance shifts that have increasingly transferred governing authority towards non-state actors. Accordingly, there is now widespread recognition that mineral developers need to gain a ‘social license to operate’ (SLO) from local communities in order to avoid potentially costly conflict and exposure to social risks. A social license can be considered to exist when a mining project is seen as having the ongoing approval and broad acceptance of society to conduct its activities. Due to the concept's relatively recent emergence, however, only a limited body of scholarship has developed around SLO. Drawing on examples from northern Canada, this paper uses governance and sustainability theories to conceptualize the origins of SLO in the mining sector and describe some of the associated implications. Further research is needed to determine governance arrangements which help facilitate establishment of SLO in different mineral development contexts.     

Collecting data in artisanal and small-scale mining communities: Measuring progress towards more sustainable livelihoods

This short note discusses methodological obstacles to the collection of microeconomic data in artisanal and small-scale mining communities. International donor organizations are supporting policy efforts that enhance the contribution to poverty alleviation of this mining subsector. The design and evaluation of such policy interventions require data on income, expenditure, investment, and savings in mining households and communities. These data are difficult to come by. Incomes are variable; migrants may work far from home; miners often work informally and sometimes illegally; mining populations and communities are heterogeneous and transient; and miners have many reasons to distort information. Legalization and organization of miners in cooperatives would facilitate documentation and research. These processes, however, are beyond the control of the typical policy consultant or donor organization. On their part, these parties can adopt an alternative model of research. This model involves the community in project development, data collection, and monitoring. It emphasizes continuity, cultural diversity, trust building and learning. The data thus collected should provide a firm basis for programmes that promote more sustainable livelihoods in artisanal and small-scale mining communities.     

Sustainable development in the mining industry: clarifying the corporate perspective

This paper examines sustainable development in the corporate mining context, and provides some guidelines for mining companies seeking to operate more sustainably. There is now a burgeoning literature that examines sustainable development in the context of minerals and mining, most of which is concerned with sustainability at global and national scales. What is often challenging to ascertain, however, from these numerous perspectives on sustainable mineral extraction, minerals and metals recycling, environmental management, and social performance, is how sustainable development applies to mining companies themselves, and what steps a mine must take in order to improve the sustainability of operations. Since mining processes have the potential to impact a diverse group of environmental entities, and are of interest to a wide range of stakeholder groups, there is ample opportunity for the industry to operate more sustainably. Specifically, with improved planning, implementation of sound environmental management tools and cleaner technologies, extended social responsibility to stakeholder groups, the formation of sustainability partnerships, and improved training, a mine can improve performance in both the environmental and socioeconomic arenas, and thus contribute enormously to sustainable development at the mine level.     

The transformation and successful development of small-scale mining enterprises in developing countries

Proponents have long argued that small-scale mining, given proper direction and support, can contribute substantively to the socioeconomic development of rural areas in developing countries. The attitudes of governments, commercial mining companies and donor agencies have been coloured by the haphazard, informal, often dangerous and seemingly wasteful character of much local mining activity, especially at the smallest scale. Yet this 'artisanal' activity has come to assume a critical economic welfare function in many countries, especially those which have suffered through extended periods of environmental and economic stress. This paper argues that this type of mining, because of both its upside potential and its problematic nature, cannot be ignored: neither can it be eradicated. Instead, explicit and sustained attention from governments, non-government organizations, the private sector and donor agencies is advocated for an effort to rationalize and formalize this type of mining, to increase its economic and technical efficiency, and to maximize its social benefits and minimize its disadvantages.     

Constraints on small-scale mining in Africa

Contrary to expectations, small-scale mining has had little impact on the development of Africa, despite the relative scale of activities in that field. This situation is due to the fact that the sector is facing various constraints and deficiencies, some structural in nature and others technical. However, the analysis of constraints and weaknesses shows that their impact differs according to the country and to the extent to which the government is involved in small-scale mining as well as to its efforts to strengthen this sector. While some drastic and immediate measures could be taken now, in depth scientific research will also be required.     

环境资源价值分析

现代社会经济的发展离不开环境资源,但是人们在发展经济的过程中往往又忽视了人与环境的协调发展。在可持续发展战略普遍被各国人们所接爱今天,我们应该从最基本的问题入手来分析与环境的协调发展问题。本文从环境资源有无价值出发,进而分析、比较了商品与环境资源的价值问题。在此基础上通过分析社会经济发展与环境资源的关系提出了环境资源的正价值和负价值,然后又进一步分析了环境资源正价值和负价值社会经济的关系。最后文章提出了环境资源价值与持续发展战略及相关研究的关系。     

Green accounting and sustainability of the Peruvian metal mining sector

This paper estimates the true economic income of Peru’s metal mining sector for the period 1992–2006, using a model of green economic income based on Hamilton (2000). The total depletion of natural capital caused by metal mining is calculated by estimating, on the one hand, the depreciation of mining resources (using the Hotelling rent approach) and, on the other, the environmental degradation provoked by metal mining activities. The results show that the total loss of natural capital represents between 31% and 51% of the metal mining GDP and between 2% and 4.9% of Peru’s GDP. On the other hand, correcting the usual GDP measure produced by the traditional National Account System (NAS) for the total loss of natural capital caused by mining activities shows that the GDP traditional measure overestimated by 51–64% the true economic income generated by Peruvian's metal mining sector during the period 1992–2006. The importance of the generation, taxation, and disposition of mining economic rents for Peru’s sustainable development in the future is also discussed.     

Influence of land tenure practices on artisanal mining activity in Ghana

This paper examines the issue of land tenure and how it influences artisanal and small-scale mining (ASM) activity in Ghana. Over the past few decades, attempts by governments in sub-Saharan Africa to regulate or formalize ASM as a result of the sector's increasing socio-economic and environmental importance have largely been unsuccessful. Even though mining laws have tended to vest all minerals in the state, increasing evidence suggests that mineral-rich lands for artisanal mining continue to be frequently traded between local landowners and miners or interested groups outside the official legal regime. This development, i.e. land trading for artisanal mining, contributes significantly towards proliferation of illegal ASM activity and hence potentially challenges attempts by governments and development partners to formalise the sector.     

Promoting sustainable development in Ghanaian small-scale gold mining operations

This paper provides an overview of the initiatives that have been undertaken by the Ghanaian government to promote more sustainable development in resident small-scale gold mining operations, and recommends a series of strategies for perpetuating a pattern of continued improvement. Since the passing of the Small Scale Gold Mining Law (PNDCL 218) in 1989, which effectively legalized small-scale gold mining as an industry in Ghana, the government, in particular, the Minerals Commission, has made a concerted effort to regularize operations, and to provide technical and financial support to miners. Under the auspices of the German non-profit Gesellschaft Technishe Zusannebarbeit (GTZ), a small-scale gold mining registration system has been implemented, district support centres for small miners have been constructed and the Precious Minerals Marketing Corporation (PMMC) has been created, which purchases products from small-scale miners at near-market prices. Careful analysis reveals, however, that these efforts have collectively only had a marginal impact, and that the industry is still in dire need of aid. Specifically, to perpetuate further a pattern of improved sustainability--improvements in both the socio-economic and environmental arenas--additional technical and financial support must be provided, and sound environmental management practices implemented. The Minerals Commission has been burdened with these tasks and challenges but because it is largely understaffed, it is highly unlikely that it will be able to facilitate sufficient improvement in the sector on its own. Nevertheless, marked improvements can be achieved if: (1) avenues for technological dissemination are created and improved; (2) research partnerships are forged with local universities; (3) experienced consultation is hired when needed; and (4) other governmental agencies, namely the Mines Department, Environmental Protection Agency (EPA) and Geological Survey, provide the Minerals Commission assistance with prospecting, monitoring, regulation and environmental auditing activities.