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 in mining and mineral processing in developing countries

This paper analyses some of the social, political and economic dimensions of the environmental behaviour of mining enterprises and governments in the context of evolving regulation, growing public concern and technological innovation. Contrary to the belief that a trade-off exists between production costs and environmental costs, which presupposes a static technology, new generations of technology offer improved economic and environmental efficiency. Technical change is therefore reducing both production and environmental costs. Because most planned mines and available reserves are in developing countries, situations may develop whereby technical change reduces that trade-off for them.     

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.     

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.     

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.     

The contribution of energy efficiency to sustainable development in developing countries

The demand for energy services is growing rapidly in developing countries. Low levels of energy efficiency in electric power supply and in energy use mean that the energy sector threatens to absorb an intolerably high share of available financial resources. Energy inefficiency also contributes to local and global environmental problems. A strategy of vigorously improving energy efficiency is thus a key element of a sustainable development path. Results reported in this paper show that there is considerable room for efficiency improvement in both existing and new capital stocks, but a much larger effort than presently underway is essential if the potential is to be realized. Assistance from the industrialized countries can play a major role in such an effort.     

The regional impacts of small-scale gold mining in Amazonia

Gold mining is the major economic activity in the Upper Tapajós River Basin of the Brazilian Amazon. This article studies the structure, economy and impacts of gold mining operations in this region. Mining has significant environmental impacts in this region resulting in the removal of approximately 67 million m³ of sub-soil per year and accompanied by an annual release of some 12 tons of mercury to air, ground and rivers. In the early 1990s there were 245 mines in operation, employing some 30000 people and producing around 35t gold per year, valued at approximately $400 million yr^-1, the profits being about $110 million yr^-1. Miners spent most of their earnings on local goods and services, while mine owners and merchants in the gold towns invested in land (mainly for ranching), business ventures and money markets. Wealth gained from mining has served as an engine for development in other regions of the world and could, theoretically, achieve the same for Amazonia. However, before this could happen, the Government of Brazil would need to mark a strong presence in the area by providing technical assistance and developing and enforcing mining/environmental regulations. The likelihood of such a development materializing in the foreseeable future is small. In the meantime, gold mining acts, not as an 'engine for development', but as a destabilizing force — provoking environmental damage, social discord and public health hazards in the region.     

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.     

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.     

Environmental issues for developing countries arising from liberalized trade in the mining industry

This review analyses some of the environmental and economic implications of current trade policies and changes in the world trading system for mineral producers and consumers. A principal factor which determines environmental performance is whether firms have the resources and capabilities to undertake innovation. We therefore place particular emphasis on the anticipated effects of liberalized trade on innovation and competitiveness at the firm level. Evidence indicates that improvements in environmental management would be expected to occur irrespective of the country hosting the investment. Due to the opening investment climate and relatively large quantities of mineral reserves, we expect these effects to be positive for many mineral producing developing countries. One difficulty which may arise is whether policy measures to promote production efficiency and develop innovation in mining and mineral processing operations could be interpreted as protectionism. The creation of new lines of credit, to promote, but not subsidize, technological and organizational innovation, may be the best way forward for developing countries .     

Survey of issues in government policy and public management of state oil and mining companies in developing countries

The author has identified a number of structural policy issues which adversely affect public sector enterprises involved in natural resource extraction. It is held that the various interactions between government policy and public management have created severe cross currents which impede the efficient and cost-efficient operation of these entities. This tends to promote a culture which encourages excessive production at the risk of premature exhaustion of the resource and diverts scarce development capital into marginal increments of production at the expense of other sectors of the economy. This transient influx of money is said to encourage overconsumption. The author does not recommend any facile solutions. The circumstances vary from country to country, as do the remedies. Policy and structural reforms can and have made a difference in specific instances and examples are cited of where improvements have been made.     

The pricing of water services in developing countries

This paper focuses on improving efficiency in the water and sewerage sectors through long-run marginal cost pricing, adjusted for financial needs, externalities, second best considerations, lifeline tariffs and cross subsidization within an integrated water resource planning (IWRP) framework. Supply efficiency suggests that for a given price structure, an optimal long-run investment plan and a corresponding level of supply quality should be determined which maximizes net social benefits. Supply efficiency also requires efficient operation of the water system, including optimization of losses.     

Refinery deregulation in developing countries

For much of the 1980s refining has been unprofitable. The continued operation of small refineries in oil-importing developing countries has therefore come under intense scrutiny, especially by the international financial institutions concerned with high levels of external debt. This paper examines the specific case of Morocco. Even though refining may be unprofitable at the world's export refineries, refining may still be part of the least-cost solution to meeting developing country petroleum demands as a result of transport differentials. Unlike some other refineries in Africa, those of Morocco are well run, and closure is unwarranted. Rather the need is for regulatory and pricing reform, such that refiners can respond more flexibly to changes in world markets.     

Management of environment in developing countries

Summary Environmental problems in developing countries partly arise out of lack of development, hence they are intricately linked to the socio-economic conditions. Environmental awareness and environmental education are critical under these conditions but these are time consuming and slow solutions. Integration of economic and environmental plans for various regions have to be attempted systematically. Time is running out, and unless comprehensive steps are taken up some of the capital assets (such as forests, fresh water, soils, etc.) are likely to be irretrievably damaged.Dr B. Bowonder was, until recently, Chairman of the Centre for Energy, Environment and Technology at the Administrative Staff College, Hyderabad. He recently joined this Journal's Advisory Board and his analysis of the Bhopal Incident (The Environmentalist, 5 (2) 89–103) created considerable interest. He is currently a member of the United Nations Economic and Social Commission for Asia and Pacific.     

The bhopal incident: Implications for developing countries

Summary The author summarizes the events of the Bhopal disaster as they are currently known, and draws a number of very important conclusions regarding safety procedures. These have implications for all developing countries.Dr. B. Bowonder is Chairman of the Centre for Energy, Environment and Technology at the Staff College and, as a regular contributor to this journal, he was invited to analyze the Bhopal incident.     

Electric load management in developing countries

Energy planners in developing countries have traditionally sought to meet their nations' growing electricity demands by adding more generation and transmission capacity. But as the foreign investment situation became critical in the 1980s, private investment and system efficiency improvement programmes began to garner interest. One of the most promising system efficiency improvement options is load management, which uses a variety of techniques to utilize the electricity system's existing capacity more efficiently. However, to date, only three countries have seriously considered implementing large load management programmes: Pakistan, Peru and Costa Rica. This paper describes a 1987-89 load control demonstration programme in Costa Rica, sponsored by the US Agency for International Development (AID), in which participating industries were able to reduce their peak demand by 14%.     

Sustainable forestry management in developing countries

The central message of this paper is that natural forests have multiple uses and multiple users. The paper describes the crisis in Asian forestry and four failures which lie behind the crisis. The first failure is related to economic policy which has consistently underpriced timber, not accounting for the true cost of replacing the felled trees or the value of non-timber goods and services (including environmental services). The second failure stems from the lack of community involvement in managing forests. The third failure is that of forestry institutions which have not been able to adapt to changes required to meet new challenges — away from timber extraction towards environmental services and social forestry. The fourth failure arises from technological constraints, including difficulties in carrying out long-term research (to cover the 20–40 year time horizon in the forestry sector) and ineffective application of research results. A number of specific suggestions for moving toward sustained yield management in Asia are presented. The sustainable management of forests in Asia is crucial not only for indigenous peoples, the environment and economies of the countries of Asia, but also for the biodiversity and health of the global environment.     

Analysis of cooking energy in developing countries

Cooking is the major energy end use in most developing countries. A general model to calculate energy-use cost for cooking with 15 combinations of fuel and end use device based on prevailing market conditions is proposed by this paper. The model has been implemented to develop an independent computer software which ranks the combinations on the basis of least cost. The model reflects cooking energy consumption patterns in urban Nepal, where it was tested. The results suggest that biomass energy used in efficient stoves is the most attractive option for cooking in Nepal. Hence, a policy for effective use of biomass is necessary .