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.     

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.     

Local Dirt, Global Dreams: mining investment and land use change in Arizona

A central problematic for researchers working at the interface of economic and environmental change is the development of research designs and methodologies that can satisfactorily link economic processes of global reach (such as direct investment) to environmental change at local and regional scales. This article reviews recent efforts to couple economic and environmental change and finds that relatively little effort has been made to use the direct investment process as a means of linking industrial restructuring to land use change. The article argues that direct investment, when conceptualised as a political-economic process involving the assemblage of a package of rights (to land, water, pollution permits etc), can be an effective vehicle for tracing through the impacts of industrial restructuring on local environments. To develop this analytical approach, an empirical case of mineral investment in the Gila Valley of eastern Arizona is presented. The case study identifies the acquisition of land and water rights as central strategic issues for mineral firms seeking to make investment, and traces through the impact of these acquisition strategies on existing patterns of land ownership and land use.     

Perspectives on female participation in artisanal and small-scale mining: A case study of Birim North District of Ghana

This article critically examines the issue of growing female participation in the artisanal and small-scale mining (ASM) sector, particularly within its illegal segment, drawing upon experiences from Birim North District in the Eastern Region of Ghana. Although an estimated 50% of those employed in ASM are women, few researchers have investigated what roles women play in the sector, or how their participation contributes to rural development. The paper aims to examine the causes of female participation in the ASM sector and the impact of this type of employment on women's income, health and families. An analysis of collected data suggests that there is a growing need for policies to address female employment in ASM and, more generally, rural employment. The analysis demonstrates the utility of gender mainstreaming in the small-scale mining formalisation process, as well as the need to promote other viable employment opportunities for the benefit of women residing in rural areas.     

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.     

Sustainable development and participatory practices in community forestry: the case of FUNDECOR in Costa Rica

This paper studies the emergence of one particular ‘new’ environmental policy instrument: disclosure of emission and pollution data. Disclosure is part of a relatively new sub‐set of regulatory measures, based on monitoring, transparency, citizen‐empowerment and accountability. It originated in the United States but has recently attracted international attention. The attractiveness of disclosure is obvious; it promises environmental improvement combined with strengthened environmental democracy and community empowerment. By analysing the experiences in the US, and the developments in the Netherlands, this paper seeks to assess the functioning and effectiveness of disclosure. The available empirical evidence suggests that disclosure has a positive impact on the environmental performance of industrial facilities as well as a democratising effect. It is argued that Dutch policy makers wrongfully assume that disclosure cannot work in the Netherlands. The consequence is that citizens are provided with little specific information that cannot be used to put pressure on polluters.     

Impacts of foreign investment on sustainable development in a Chilean mining region

The desert mining region of Antofagasta, Chile, enjoyed spectacular economic growth in the 1990s as a result of foreign direct investment (FDI), mainly in the exploitation of the region's rich copper deposits. In a country considered by international financial institutions to be a good example of economic performance, Antofagasta has been termed a model region,and Chile's economic and social development in the 1990s has been considered a suitable model for other Latin American countries. However, development indices based on statistical data must be examined with caution, as human welfare does not necessarily keep pace with economic growth. This article analyses the Antofagasta Region in terms of problems that may occur in conjunction with accelerated economic growth, and how these can affect the environment, as well as the regional labour market. The article also examines a regional economic strategy for Antofagasta recently proposed by the local government, and suggests new alternatives for the sustainable economic development of the region.     

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.     

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.     

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.     

Environmental investment recovery practices and opportunities: Lessons from project RENEWAL

In the Autumn 1994 issue of Total Quality Environmental Management you learned about Project RENEWAL, a cooperative business project to investigate and promote the linkages between ecology, technology, and business economics. Project RENEWAL stands for Resource Efficiency Network to Eliminate Waste and Liability. This collaborative effort focused on equipment and inventory assets, exploring how better capital asset management can benefit profitability and improve environmental protection. Participants in the project included representatives from industry, consulting, local and state government, environmental agencies, trade groups, and academia. This article describes three specific activities conducted by the RENEWAL participants and suggests ways to improve the success of future projects looking to improve the investment recovery of “impaired” capital assets.     

The public good dilemma of a non-renewable common resource: A look at the facts of artisanal gold mining

Millions of people worldwide are involved in artisanal and small-scale gold mining. Many of them live in conditions of poverty and insalubrities due to the mercury amalgamation of gold and the application of other rudimentary techniques. In spite of this, the sector has been nearly overlooked by resource economists. In this paper we analyze the sector based on a survey of the existing literature. We find some commonalities of artisanal and small-scale gold mining in different countries of the developing world as follows: low levels of mechanization and technology, labor intensiveness, low awareness of environmental degradation, poor training, high transience among some miners, and lack of financial savings. Moreover, with these commonalities in mind, we present some topics and challenges for a research agenda in the field of environmental, ecological, and development economics.     

Foreign direct investment and institutional obstacles: The case of Russian forestry

This article examines why, in spite of vast forest resources, Russia has been unable to attract foreign investors into its forest industry. A survey of 32 influential Western European forest companies indicates that purely economic factors, such as labour or raw material costs, are not the main reasons these companies refrain from investing. Instead, the companies identify a number of institutional factors: ambiguous legal systems; difficulties in negotiating with local authorities; unfair tax enforcement; and general political instability as the main impediments to FDI in the sector. These factors have led many companies to abandon previously considered investments in Russia, and also to terminate existing business relationships with Russian partners. The survey results also indicate that, while many investors in forestry were attracted by the potential for a growing Russian market in the early days of the transition period, they have become more and more aware of the many institutional obstacles challenging growth in the sector. The article concludes, therefore, that FDI in the Russian forestry sector is likely to remain low until a fundamental change takes place in the legal and political systems.     

Imperatives for attracting investment and technology in the Indian mining sector

In India, the mineral resource inventory and the production of a large number of important minerals have registered significant increases during the last few decades. Yet the country continues to be a net importer of many high value and scarce minerals and metals, like gold, diamond, and several base metals. Exploration and development of the resources of these minerals are technology- and capital-intensive. To bring technology and capital through foreign direct investment (FDI) into the Indian mineral sector, it is imperative to lay stress on: accurate resource estimation and categorization, as well as realistic projection of the true values; rationalization of legislative measures based on R&D studies and reorganization of the implementation machinery; conducive tax structure; notification of acts and rules applicable to offshore mineral resources; time-frames for granting licences and leases; encouragement to labor productivity by rationalizing labor laws; reforms in the monetary system to increase market competitiveness of Indian minerals; and judicial reforms. FDI in the Indian mineral sector is important to firm up the knowledge-base of mineral resources and their optimum exploitation.     

Effects of taxes and royalties on copper mining investment in British Columbia

This paper explains the effects of federal and provincial taxes and royalties on the choice of mine life, mine size, reserve volumes and ore grades for copper deposits in British Columbia. The model described in the paper attempts to spell out some of the complicated interplay of geological, financial, and fiscal factors affecting mine development decisions.     

Challenges to measuring,monitoring, and addressing the cumulative impacts of artisanal and small-scale gold mining in Ecuador

Portovelo-Zaruma, Ecuador is an artisanal and small-scale gold mining (ASGM) region with approximately 6000 gold miners working with mercury and cyanide. Although artisanal gold mining (AGM) has taken place in Portovelo-Zaruma for centuries, highly mechanized small-scale gold mining (SGM) processing plants capable of increased throughput began being built in the 1990s. While there are benefits associated with ASGM, there are also negative impacts experienced by the miners and the surrounding communities. To take advantage of ASGM as a poverty-alleviating mechanism while reducing unwanted externalities, the cumulative impacts must be understood. Numerous challenges to measuring, monitoring, and addressing ASGM impacts result from the complexity of the impacts themselves, the nature of the gold mining as an informal industry, and the shortfalls in the current regulatory framework. These are discussed in the context of ongoing, unresolved issues including efforts to address trans-boundary water pollution, management of mining waste, and conflicts regarding priorities, ambiguities, and enforcement of existing regulations and policies. Internationally, interventions to address both AGM and SGM impacts have typically focused almost exclusively on technological changes through the elimination of mercury use. Our analysis suggests that to better address ASGM and their cumulative impacts in Ecuador, it will be beneficial to revisit the legal definitions of AGM and SGM. Additionally, promotion of information-based strategies including educational outreach programs and cross-scale and cross-level mitigation methods may also be beneficial. The success of these strategies to reduce ASGM-related cumulative impacts will depend on sufficient funding and the commitment of stakeholders.     

Efficient taxation of resource income : The case of copper mining in British Columbia

This article continues previous research by the authors into the economic efficiency of two actual tax systems, one relying on a mining profits tax and the other on a gross royalty. The relative efficiency of the royalty-based taxation system is found to be conditioned by the share of resource income sought by the province: at low tax rates there is little difference between the two systems, while at high rates the royalty system is markedly less efficient. The efficiency comparisons are quite consistent over different expected price levels. However, they are influenced significantly by the flexibility of mining operations, which in practice is associated with the ability to produce ore systematically in order of diminishing quality. Curtailed flexibility renders the royalty-based system relatively less efficient.     

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.     

Determinants of foreign direct investment in the mining sector in Asia: A comparison between China and India

The aim of this paper is to assess the conditions that influence foreign direct investment in the mineral industries of China and India. The paper first surveys literature on the determinants of foreign direct investment to identify key conditions, under which host countries attract mining FDI. It then builds an evaluative framework which allows for comparative analysis. The paper then comparatively evaluates the performance of foreign investment regimes that govern mineral industries in China and India. Its findings show that the overall conditions for foreign mining investment in China and India are not favourable and that substantial policy, regulatory and other changes in both countries need to be made if more investment is to flow.     

Mining pollution: The case of the Baguio mining district,the philippines

Environmental problems caused by improper mine tailings disposal in the Baguio district include pollution of the Lower Agno River system and its watershed and siltation of irrigation canals in the Pangasinan plains. Direct economic losses are from reduced agricultural production due to siltation of irrigation works and farmlands. To check the adverse ecological effects of improper mine tailings disposal, government regulations have been imposed on mining firms. Several disposal schemes have been proposed, including the use of the reservoir of a multipurpose project to be sited in the watershed where the mines are located. Because of siltation problems, however, trapping the tailings in the reservoir will diminish the economic benefits that can be derived from the project.