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.     

Backward linkage development in the South African PGM industry: A case study

Backward linkages refer to the various inter-firm relationships connecting an industry with its supply chain. Demand–supply interactions between producer firms and suppliers of original equipment, strategic inputs, components and specialised services have played an important role in the evolution of the South African mining sector, contributing indirectly to employment creation, new business growth and expansion, improved efficiency of mining operations, and new knowledge generation. This paper presents a case study of backward linkage development in the South African platinum group metals (PGM) industry and draws on the findings from a quantitative and qualitative analysis of the sector undertaken in 2007. A profile of the supply chain is provided and an assessment made of the strength and sustainability of existing linkages.     

Economic impacts of mining

The mining industry can be critical to a nation's economic well-being. Impacts may be felt on a national or regional level, with their significance dependent in part on the resources under development as well as existing government policies. This paper examines typical economic consequences of mining and how such impacts are being felt in the so-called transitional economies of Asia and Europe. Clearly, while mining continues to play an important role in the economies of Russia, China, Vietnam and other transitional nations, the nature and impacts of mining are different by virtue of years of centralized planning in the industry and the use of non-economic measures of efficiency. The changing character of mining is today opening up new opportunities for foreign investment and technology assistance.     

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.     

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.     

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.     

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.     

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.     

Global trends in gold mining: Towards quantifying environmental and resource sustainability

In recent years, due to public concern over perceived and actual environmental impacts, the global mining industry has been moving towards a more sustainable framework. For gold mining, there are a number of fundamental issues with regard to assessing sustainability. Commonly perceived as a finite and non-renewable resource, long-term gold production trends include declining ore grades and increasing solid wastes (tailings, waste rock) and open cut mining. Conversely, core sustainability issues include water, energy and chemical consumption and pollutant emissions—also known as ‘resource intensity’. It is important to recognise the links between gold production trends and resource intensity, as this is critical for understanding future sustainability challenges. This paper links data sets on historic gold mining production trends with emerging sustainability reporting to estimate resource intensity, demonstrating the sensitivity of ore grade for gold production and sustainability. Final judgement of the sustainability of gold mining must take account of the sensitivity of the ore grade in the resource intensity of gold production. This has implications for environmental policy and sustainability reporting in the gold mining sector.     

The dynamics of artisanal and small-scale mining reform

Artisanal and small‐scale mining are activities that have long been established in many developing countries, employing millions of people globally, either directly or in affiliated industries. Also, such activities are deplored for their adverse environmental impacts and their general avoidance of governments, tax collectors and other regulators. Decades of work have gone into addressing these problems, but with limited overall progress in evidence. Going back to some of the key dynamic relationships involved in artisanal mining and small‐scale mining, the need for policy reform that gives consistent and effective incentives is argued to be the foundation on which other discussions about environmental protection, sustainability and livelihoods can be built.     

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.     

How has a shortage of census and geological information impeded the regularization of artisanal and small‐scale mining?

There is growing consensus that a combination of laissez‐faire policies, ad hoc regulation and debilitating support services has perpetuated socio‐economic and environmental deterioration in the artisanal and small‐scale mining (ASM) industry. However, a lack of anthropological and geological information on ASM prevents many governments both from improving the policy environment of the industry, and from providing more robust extension services to its operators. This article aims to examine more precisely how a deficiency of baseline census and geological data has inhibited industry formalization and undermined many of the measures implemented to address pressing problems at ASM sites. Specifically, it is argued that insufficient knowledge of artisanal mining populations — including their demographic structure — and of areas suitable for ASM activities affects the ability of a government to regularize, as well as to improve, the organization of this largely informal sector of industry. Case studies of Ghana and Zimbabwe are used to illustrate how the undertaking of low‐budget projects in areas of geological prospecting and population analysis could improve the efficiency of ASM assistance.     

A dangerous bet: The challenges of formalizing artisanal mining in the Democratic Republic of Congo

Among policy-makers and governments, there is a broad consensus that artisanal and small-scale mining (ASM) needs to be ‘formalized’ – embodied in a standardized legal framework that is registered in and governed by a central state system-, the basic condition being that artisanal miners are given formal property rights. This article aims to contribute to this discussion, drawing on a case study from the Eastern Democratic Republic of Congo (DRC), where it is estimated that up to 90 percent of mineral production and export is ‘informal’. After having pointed out some of the theoretical assumptions behind the formalization canon, we study the challenges of formalizing the mining sector in the DRC. Next, we provide an in-depth analysis of one concrete policy measure of the Congolese government, the temporary ban on all artisanal activities. We argue that the mining ban was not only a radical example of a top-down formalization policy, but also an illustration of a bureaucratic and technical measure that compounds but does not address different problems associated with ASM: conflict, informality, poverty, illegality, state control. Looking at the empirical evidence from the DRC, we argue that these kinds of technical solutions can never address the broader socio-economic and political issues at stake.     

Participatory development for regional sustainability in Western Australia: an enabling state?

Regionally specific sustainability processes that account for diverse environments and populations and that integrate social, economic, political and ecological spheres are being developed in Western Australia. A coordinated commitment to sustainability principles and a participatory philosophy by the state and local governments is necessary. This requires a transformation of the public service, from a director of passive programmes and laws to a facilitator of community projects and outcomes, towards an enabling state. An international participatory paradigm provides an array of concepts and methods for local and regional communities in partnership with government and industry to achieve this. Participatory methodologies are utilised successfully around the globe to create an institutional framework that facilitates a process of dialogue, partnership, networking, learning and managing change. This paper examines the potential contribution of a participatory approach to improve the participatory capacity of regional communities and both local and state governments towards the facilitation of regional sustainability processes.     

Participatory development for regional sustainability in Western Australia: an enabling state?

Regionally specific sustainability processes that account for diverse environments and populations and that integrate social, economic, political and ecological spheres are being developed in Western Australia. A coordinated commitment to sustainability principles and a participatory philosophy by the state and local governments is necessary. This requires a transformation of the public service, from a director of passive programmes and laws to a facilitator of community projects and outcomes, towards an enabling state. An international participatory paradigm provides an array of concepts and methods for local and regional communities in partnership with government and industry to achieve this. Participatory methodologies are utilised successfully around the globe to create an institutional framework that facilitates a process of dialogue, partnership, networking, learning and managing change. This paper examines the potential contribution of a participatory approach to improve the participatory capacity of regional communities and both local and state governments towards the facilitation of regional sustainability processes.     

The stone forum: Implementing a consensus building methodology to address impacts associated with small mining and quarry operations

Small-scale mining, including quarry operations, continues to play an important social and economic role in hundreds of communities throughout Brazil. Often operating outside the formal economy, conflicts between the owners of small-scale mining operations, the mineworkers, various government agencies, and other stakeholders have contributed to the progressive degradation of the environment, poor health and safety standards, and low productivity. The Centre for Mineral Technology (CETEM) of Brazil is implementing a consensus building methodology in order to produce dimension stone by small-scale miners on a more sustainable basis in the Pádua region, located in the northwest of the State of Rio de Janeiro. The approach being used by CETEM is based on its own experience in working with gold prospectors in the Amazon, and lessons and experiences learned from Canadian officials and industry representatives. The lessons and insights gained from this project may prove to be useful to those involved in addressing similar problems elsewhere in Brazil, South America and around the world.     

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.     

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.     

Resource exploitation and cross-region growth trajectories: nonparametric estimates for Chile

As a sector of primary concern for national development strategies, mining keeps stimulating an intensive debate in Chile, regarding its role for long-term growth. Partly drawn on theoretical contributions to growth and mineral resource accounting, this analysis assesses patterns of economic growth across Chilean regions. The theoretical and methodological rationale for focusing on weak sustainability, by testing convergence across regions in a distribution dynamics perspective, is first discussed. This is followed by a brief review of policy issues and previous empirical findings of concern to Chile's mining and regional growth. Panel data over the period 1960-2001 are analysed, with growth measured in terms of both income per capita as such, and sustainable measures of this variable. Kernel density and quantile regression estimates indicate persistent bimodal (if not possibly trimodal) distribution of nationally standardised regional incomes per capita, whereby conditions for cross-region convergence are matched only within the inner range of this distribution.     

Combating drought through preparedness

Drought is a complex, slow–onset phenomenon that affects more people than any other natural hazard and results in serious economic, social, and environmental impacts. Although drought affects virtually all climatic regimes and has significant consequences in both developed and developing countries, its impacts are especially serious in developing countries where dryland agriculture predominates. The impacts of drought are often an indicator of unsustainable land and water management practices, and drought assistance or relief provided by governments and donors encourages land managers and others to continue these practices. This often results in a greater dependence on government and a decline in self–reliance. Moving from crisis to risk management will require the adoption of a new paradigm for land managers, governments, international and regional development organizations, and non–governmental organizations. This approach emphasizes preparedness, mitigation, and improved early warning systems (EWS) over emergency response and assistance measures. Article 10 of the Convention to Combat Desertification states that national action programmes should be established to identify the factors contributing to desertification and practical measures necessary to combat desertification and mitigate the effects of drought. In the past 10 years, there has been considerable recognition by governments of the need to develop drought preparedness plans and policies to reduce the impacts of drought. Unfortunately, progress in drought preparedness during the last decade has been slow because most nations lack the institutional capacity and human and financial resources necessary to develop comprehensive drought plans and policies. Recent commitments by governments and international organizations and new drought monitoring technologies and planning and mitigation methodologies are cause for optimism. The challenge is the implementation of these new technologies and methodologies. It is critical for governments that possess this experience to share it with others through regional and global networks. One way to accomplish this goal is to create a network of regional networks on drought preparedness to expedite the adoption of drought preparedness tools to lessen the hardships associated with severe and extended drought episodes.