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.     

Environmental management of small-scale and artisanal mining: the Portovelo-Zaruma goldmining area,southern Ecuador

This paper considers technical measures and policy initiatives needed to improve environmental management in the Portovelo-Zaruma mining district of southern Ecuador. In this area, gold is mined by a large number of small-scale and artisanal operators, and discharges of cyanide and metal-laden tailings have had a severe impact on the shared Ecuadorian-Peruvian Puyango river system. It is shown to be technically possible to confine mining waste and tailings at a reasonable cost. However, the complex topography of the mining district forces tailings management to be communal, where all operators are connected to one central tailings impoundment. This, in turn, implies two things: (i) that a large number of operators must agree to pool resources to bring such a facility into reality; and (ii) that miners must move away from rudimentary operations that survive on a day-to-day basis, towards bigger, mechanized and longer-term sustainable operations that are based on proven ore reserves. It is deemed unlikely that existing environmental regulations and the provision of technical solutions will be sufficient to resolve the environmental problems. Important impediments relate to the limited financial resources available to each individual miner and the problems of pooling these resources, and to the fact that the main impacts of pollution are suffered downstream of the mining district and, hence, do not affect the miners themselves. Three policy measures are therefore suggested. First, the enforcement of existing regulations must be improved, and this may be achieved by the strengthening of the central authority charged with supervision and control of mining activities. Second, local government involvement and local public participation in environmental management needs to be promoted. Third, a clear policy should be defined which promotes the reorganisation of small operations into larger units that are strong enough to sustain rational exploration and environmental obligations. The case study suggests that mining policy in lesser-developed countries should develop to enable small-scale and artisanal miners to form entities that are of a sufficiently large scale to allow adequate and cost-effective environmental protection.     

Fostering sustainable small-scale investments: lessons from experience and ideas for intervention and innovation

This article presents lessons from experience pertinent to implementing small-scale natural resource and related investment projects in developing countries. It outlines ideas for intervention and innovation to foster such investments. Particular emphasis is placed on private-sector participation in these investments. Following a brief presentation of the economic development and other arguments that support intervention and innovation in support of such small-scale natural resource investments, the article discusses many of the lessons learned from experience. These lessons reinforce those touched upon in the investment-specific discussions in the previous articles. The experience and associated lessons that are examined include experiences in both developing and developed countries and encompass not just lessons from natural resource investments, but also small-scale investments in other sectors. Financing and other innovations which facilitate meeting the challenges are drawn from relevant experience where barriers to investment have been surmounted. Options for programme and project interventions to increase market penetration of small-scale investments and achieve the associated development linkages and synergies are suggested. These suggestions are aimed especially at governments and bilateral and multilateral development finance and development assistance entities. It is those players who might support such interventions in collaboration with local financial institutions and other market players.     

Small- and medium-scale mining

This article summarizes the proceedings of a United Nations organized international Seminar on Guidelines for Development of Small- and Medium-scale Mining, held in Harare, Zimbabwe, in February 1993. The meeting assessed progress in promoting and developing small- and medium-scale mining operations worldwide since the last United Nations conference on small-scale mining (Ankara, 1988). The meeting produced a set of guidelines for developing countries intended to provide a framework for encouraging development of small- and medium-scale mining as a sanctioned sustainable activity with recognizable contributions to economic and social goals.     

Large-scale v small-scale mining

The paper reviews available information on how scale and technological sophistication affect the extent to which mineral industries in developing countries aid in meeting those countries' development objectives. It also identifies criteria for determining if small-scale or labour-intensive operations are suitable to particular mining projects.     

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.     

Abandoned artisanal gold mines in the Brazilian Amazon: A legacy of mercury pollution

The modern gold rush in the Brazilian Amazon attracted millions of people to become artisanal miners in order to escape complete social marginalization. The rudimentary nature of artisanal mining activities often generates a legacy of extensive environmental degradation,both during operations and well after mining activities have ceased. One of the most significant environmental impacts is derived from the use of mercury (Hg), which is illegal for use in gold amalgamation in Brazil, but continues to be the preferred method employed by artisanal gold miners. The general population is unaware of the capricious nature of mercury and artisanal mining activities. Moreover, individuals in positions of political or economic infiuence tend to be negatively biased towards artisanal mining and government policies do not effectively address the realities of these activities. Affected communities have consequently been ignored,and mistrust towards outside parties is high. Not surprisingly, miners are suspicious of and unlikely to employ externally derived solutions to reduce mercury emissions. This article reviews the use of mercury in artisanal mining and highlights the role miners, governments and non-governmental organizations (NGOs) have played in communicating facts, perpetuating myths and deriving solutions for mercury pollution. This article also raises some key concerns that must be addressed to understand the behaviour of mercury in the environment and identifies solutions for problems facing communities where artisanal gold mining operations have been abandoned.     

Government and voluntary policymaking for sustainability in mining towns: A longitudinal analysis of Itabira,Brazil

The socio‐economic fabric of single‐company mining towns needs to be carefully considered by both Government and companies in sustainability policymaking. Policy design and effectiveness in such towns are significantly impacted by the city's economic dependence on a single company. This paper explores the perceived effectiveness of government and voluntary private sector mining policies for pursuing sustainability in the historic mining town of Itabira, Brazil over a period of 20 years. Itabira serves as a worthwhile case study because it allows for an in‐depth and longitudinal analysis that can reveal valuable lessons to policymakers of different sectors and jurisdictions located elsewhere. Based on extensive face‐to‐face interviews and literature reviews, study results indicate that changes to the state environmental licensing policies in the 1990s led to significant socio‐environmental improvements in the area. The globalization of the mining company also contributed to an increase in the quantity and quality of voluntary industry policies. Recent technological improvements in the beneficiation processes of the mining company promises to extend the life of the mine to 2050. Although there are significant incremental socio‐environmental policies and programmes, sustainability remains an elusive vision in Itabira, with no clear objectives or monitoring and accountability mechanisms. The paper concludes by recommending a more formal integrated policymaking framework.     

The case of artisanal mining in Bolivia: Local participatory development and mining investment opportunities

Despite the buoyant expansion of Latin America's mining sector, the small-scale mining sub-sector remains marginalized. For many countries with small-scale mining resources, the way forward to sustainable mining development is not clear. Activities, in far too many cases, have led to environmental damage, social inequity and political violence among mining communities. This article, through a case study of the Bolivian Altiplano, seeks to advance the understanding of the conditions that drive mining communities into the chain of events of impoverishment associated with environmental damage. It also examines the opportunities for sustainable human development among these communities. In Bolivia's mining sector, social inequity is pervasive and holds the mineral resources captive. This situation is further aggravated by the fact that solutions, in the short term, are uncertain. Unresolved social inequity compromises foreign direct investments since social considerations are becoming increasingly important to mining corporations when deciding whether to invest. This article outlines a preliminary strategy to move forward on social inequity. The strategy revolves mainly around implementing alternative sustainable livelihoods with the participation of the government (central and local), the private sector, NGOs and donors as facilitators and partners. Its aim is to reduce the number of families eking out a living from artisanal mining in order to enhance the viability of small-scale mining. It is hoped that, as social inequity decreases throughout the sector, the increased stability will enable stakeholders to consider foreign direct investments within the framework of the country's sustainable human development goals.     

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.     

Toxic mercury versus appropriate technology: Artisanal gold miners’ retort aversion

Mercury-usage in artisanal and small-scale gold mining (ASGM) has accelerated in developing countries during the last thirty years resulting in negative environmental and health impacts. As awareness of mercury contamination from ASGM has grown, a number of strategic initiatives have been introduced to reduce the impact of the toxic substance. The adoption of the retort, a device capable of recycling up to 95 per cent of mercury in gold extraction, constitutes a broadly recognized approach. Based on case-study research in Tanzania, this paper examines an ASGM area, which has been targeted by several mercury-reducing efforts. Based on survey data, key informants interviews, and visitor observations, the paper examines the impact of these efforts on mining techniques and residents’ attitudes towards the use of mercury. Despite the seemingly obvious advantages from adopting retorts or other mercury-reducing techniques – economic, environmental, and health-wise – miners continue to use mercury haphazardly, while demonstrating an only limited awareness of the toxicity of the substance. The paper discusses the possible explanations behind this as well as possible ways forward in facilitating the reduction of mercury in ASGM operations.     

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.     

Social-environmental certification: Sustainable development and competitiveness in the mineral industry of the Brazilian Amazon

This article examines the relationship between increased metal mining and sustainable development in the eastern section of the Amazonian state of Pará in Brazil. Since the early 1980s, mining has grown rapidly in Pará and local mining operations have become global leaders in the production of iron, manganese, bauxite, aluminum, gold, copper and — in the near future — nickel. To stay in tune with global standards, these companies have committed themselves to the principles of sustainability and have obtained certification for both social and environmental aspects of their activities. The article looks into whether such certification is linked to sustainable development of the relatively poor regions where these companies operate. The main findings are that: (1) there is a visible association between certification and improved performance by the companies, but not with the development of nearby areas; and (2) social‐environmental certification processes place more emphasis on ecological variables than on social ones.     

The Contribution of Small-Scale Mining to World Mineral Production

There is no agreement as to the definition of a small-scale mine. It is proposed that for a developing country a small-scale mine be defined as a producer (often sporadically) of limited amounts of minerals for deposits with a few known ore reserves, and of a character not readily amenable to mass mining. Output is won without appreciable use of mechanical energy and by exploitation of labor under leadership which sometimes lacks technical, managerial or entrepreneurial skills. A mine producing less than 100 000 tons of ore is considered to be a small-scale mine. Using these criteria and worldwide production data, an estimate of the contribution of small-scale mining to world mineral output is made. The estimate is 16%.     

An analysis of factors leading to the establishment of a social licence to operate in the mining industry

Communities around the world have increasingly come to demand more involvement in decision making for local mining projects, a greater share of benefits from them if they are to proceed, and assurances that mineral development will be conducted safely and responsibly. At the same time, Bridge (2004) notes full legal compliance with state environmental regulations has become an increasingly insufficient means of satisfying society's expectations with regards to mining issues. There is now a recognised need for mineral developers to gain an additional ‘social licence to operate’ (SLO) in order to avoid potentially costly conflict and exposure to business risks. However, there is a correspondingly limited amount of scholarship specifically focused on SLO. More particularly, there is a need for research that uncovers those factors that lead to the issuance (or non-issuance) of a SLO in the complex and changeable environments that often characterise mineral development. In an effort to identify key determinants of SLO outcomes in the mining industry, this paper presents a comparative case study analysis of four international mining operations: Red Dog Mine in Alaska, USA; Minto Mine in Yukon, Canada; the proposed Tambogrande Mine in Peru; and the Ok Tedi Mine in Papua New Guinea. The analysis that is presented also makes use of insights from supplementary key informant interviews conducted by the author and the emerging literature on mining and communities. Five lessons for earning a SLO emerged from this analysis: (1) context is key; (2) a social licence to operate is built on relationships; (3) sustainability is a dominant concern for communities; (4) local benefits provision and public participation play a crucial role; and (5) adaptability is needed to confront complexity.     

Technology,managerial, and policy initiatives for improving environmental performance in small-scale gold mining industry

This paper reviews a series of strategies for improving environmental performance in the small-scale gold mining industry. Although conditions vary regionally, few regulations and policies exist specifically for small-scale gold mining activity. Furthermore, because environmental awareness is low in most developing countries, sites typically feature rudimentary technologies and poor management practices. A combination of policy-, managerial- and technology-related initiatives is needed to facilitate environmental improvement in the industry. Following a broad overview of these initiatives, a recommended strategy is put forth for governments keen on improving the environmental conditions of resident small-scale gold mines.     

Small-scale Mining and Development: The Case of Gold Mining in Papua New Guinea

This paper summarizes the present status of small-scale gold mining in Papua New Guinea and examines the extent to which it contributes to meeting the nation's development goals. It concludes that small-scale mining makes a valuable contribution as a rural development activity, and points to aspects which should receive attention in any developing country seeking to obtain the maximum benefit from such activity.     

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.     

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.