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.     

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.     

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.     

Mercury: An agent of poverty in Ghana's small-scale gold-mining sector?

There is consensus worldwide that the artisanal and small-scale mining (ASM) sector is comprised of individuals who are trapped in a vicious cycle of poverty, lacking the necessary financial and technological means to improve their standards of living. Minimal work, however, has been undertaken to identify the very factors behind miners’ plight, which inevitably vary from country to country. This paper uses a case study of Ghana to argue that an increased dependence upon mercury for amalgamation in artisanal gold-mining communities is one such—albeit overlooked—“agent of poverty”. There is mounting empirical evidence which suggests that dealings with the monoponistic middlemen who supply mercury, purchases of costly medicines to remedy ailments caused by mercury poisoning, and a lack of appropriate safeguards and alternatives to amalgamation, are preventing gold miners from improving their practices and livelihoods. The solution to the problem lies in breaking this cycle of dependency, which can be achieved by providing miners with robust support services, mercury-free technologies and education.     

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.     

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.     

Labour challenges and mercury management at gold mills in Zimbabwe: Examining production processes and proposals for change

The use of mercury in small-scale gold mining has been a growing concern in many parts of Africa. However, although the negative effects of mercury pollution are increasingly reported, little has been written about how labour relationships and gold production challenges in mining communities affect mercury management practices. This article provides an integrative analysis of small-scale gold extraction processes, labour challenges, and mercury use at gold mills in Zimbabwe, focusing on a gold rush area in Mashonaland West Province. It examines practices employed by miners who have limited economic capacities to upgrade technologies, and how the complex relationships between miners, mill owners and government regulators affect environmental performance. The study draws attention to how poor environmental management practices relate to labour inequities, low gold recovery as well as the informal gold trade dynamics amid the country's economic crisis. Results of a United Nations-supported stakeholder consultation process are discussed, with proposals for improving labour conditions and reducing environmental risk. The article highlights why the government should develop and support local programs to assist miners, as well as the decisive roles mill owners could take in ensuring improved standards on their sites.     

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.     

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.     

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.     

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.     

The illegal trading of high unit value minerals in developing countries

Attracted by the high unit value and low barriers to entry in terms of capital requirements, technology, infrastructure, minimum reserves and implementation time, the artisanal and small-scale mining of high unit value minerals, such as gemstones, diamonds and gold, has grown to significant proportions in developing countries. This is manifested by the value of output and large numbers of miners engaged in this activity. Despite the expansion of the subsector, its national economic role in many developing countries has largely been disappointing, primarily due to high levels of illegal trading activity. The objectives of this paper are to identify major factors responsible for the declaration problem. The economic impact of such activities is pointed out. To conclude the discussion, options are presented that provide a basis for eliminating illegal marketing practices and thereby strengthening the economic role of the subsector in meeting national development objectives of developing countries .     

Small–scale mining in South Africa: Past, present and future

Mining is an important part of the South African economy and has been the driver of much of the economic development of the country. However, the small–scale mining subsector still has to realise its full potential. A small–scale mine has been defined as a mining activity employing less than 50 people and with an annual turnover of less than 7.5 million Rand and includes artisanal mines. Small–scale miners are involved in many commodities but there appears to be a bias towards gold, diamonds and quarrying for construction materials, including brickclays. Small–scale mining is regulated by the same legislation (i.e., for the environment, labour, mineral rights, exploration and mining permitting, and skills development) as large–scale mining, though compliance is low, particularly where artisanal mining in concerned. The effective participation of small–scale miners in the mining sector is hampered by their lack of skills, i.e., technical, business and management, and their limited access to mineral deposits, capital and markets. Some of these hindrances have been inherited from the imbalances of the colonial and apartheid eras and continue to act as barriers, making entrance to the industry difficult. For those who have entered the industry out of desperation, as is the case with most artisanal miners, their activities result in negative impacts evident in the inefficient, unsafe and environmentally unfriendly operations. With the advent of the new political dispensation in South Africa, a new era is dawning for the country’s small–scale mining subsector. This has resulted in a change of attitude and new government policies which have led to special programmes being put in place to promote the subsector. Intervention strategies for the support of small–scale mining (some of which are already in operation) include programmes for kickstarting mineral beneficiation and value–addition projects, development of appropriate technologies and skills and technology transfer. Proponents of small–scale mining see a well–regulated industry as being the cornerstone of future rural economic development, particularly for previously disadvantaged communities in the poverty nodes.     

The influence of geomorphology on the role of women at artisanal and small‐scale mine sites

The geologic and geomorphic expressions of a mineral deposit determine its location, size, and accessibility, characteristics which in turn greatly influence the success of artisans mining the deposit. Despite this critical information, which can be garnered through studying the surficial physical expression of a deposit, the geologic and geomorphic sciences have been largely overlooked in artisanal mining‐related research. This study demonstrates that a correlation exists between the roles of female miners at artisanal diamond and gold mining sites in western and central Africa and the physical expression of the deposits. Typically, women perform ore processing and ancillary roles at mine sites. On occasion, however, women participate in the extraction process itself. Women were found to participate in the extraction of ore only when a deposit had a thin overburden layer, thus rendering the mineralized ore more accessible. When deposits required a significant degree of manual labour to access the ore due to thick overburden layers, women were typically relegated to other roles. The identification of this link encourages the establishment of an alternative research avenue in which the physical and social sciences merge to better inform policymakers, so that the most appropriate artisanal mining assistance programs can be developed and implemented.     

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.     

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.     

Safeguarding livelihoods or exacerbating poverty? Artisanal mining and formalization in West Africa

In recent years, policy mechanisms to support a formalized artisanal and small‐scale mining (ASM) sector in sub‐Saharan Africa have gained increasing currency. Proponents of formalization argue that most social and environmental problems associated with the sector stem from the fact that ASM is predominantly unregulated and operates outside the legal sphere. This paper critically examines recent efforts to formalize artisanal and small‐scale mining in West Africa, drawing upon recent fieldwork carried out in Sierra Leone, Ghana and Mali. In exploring the sector's livelihood dimensions, the analysis suggests that bringing unregulated, informal mining activities into the legal domain remains a considerable challenge. The paper concludes by confirming the urgent need to refocus formalization strategies on the main livelihood challenges and constraints of small‐scale miners themselves, if poverty is to be alleviated and more benefits are to accrue to depressed communities in mineral‐rich regions.     

How does eliminating mercury from artisanal and small-scale gold mining lead to achieving sustainable development goals?

Artisanal and small-scale gold mining (ASGM) is the principal anthropogenic activity that globally contributes to overloading our environment with mercury. Although the Minamata Convention, led by the United Nations, is a crucial instrument to eliminate its use progressively, novel approaches to accelerate this difficult transition are welcome. This article proposes a framework for policy-making or improvement, fostering the enforcement of mercury elimination through the lens of the 17 Sustainable Development Goals (SDGs), focusing on the excluded artisanal and small-scale gold miners and their dependents. We move forward with a literature review of the Artisanal and Small Mining topic, taking each SDG as a unit of analysis. Understanding the problem as a puzzle of four sets of pieces, namely: (1) social, (2) environmental, (3) economic, and (4) institutional, the paper offers potential opportunities for the decision-makers and practitioners to accelerate the substitution of this heavy metal and develop sustainable futures for the ASGM communities. We conclude by proposing a pragmatic framework that synthesizes the means, actions, and ends to accelerate a sustainable transition.     

The Tucson Mineral Show and the market for collector minerals: The potential for artisanal and small scale miners

Minerals that are sold to collectors are often produced by artisanal and small scale miners in many developing countries. The market for collector minerals is not well understood by most government agencies or NGOs but has a large impact on the artisanal and small miners that have the opportunity to produce these minerals because of the high prices that can be realized. This paper describes the collector mineral market that is held annually in Tucson, Arizona, that analyzes the competitive forces that affect the profitability of the mineral dealers at the show and describes potential methods for artisanal and small scale miners to participate successfully in the show. Most collector minerals produced by artisanal and small-scale miners are valued for their aesthetic qualities instead of mineral content. The 43 shows that operate during the first two weeks in February make up the largest gem and mineral show in the world, the Tucson Show. The Tucson Mineral Show is a subgroup of six shows that specialize primarily in collector minerals.There are several competitive forces at the Tucson Mineral Show that can affect the profit potential of dealers that participate in the show. These forces include potential entrants, suppliers, buyers, substitutes, and rivalry among existing competitors. New entrants face several barriers to entering the market place including the supply side economies of scale, demand side benefits of scale, and capital requirements. Because of these barriers, the cost of doing business and the way that promoters organize and manage the shows, it is difficult for artisanal and small scale miners to enter the show and compete with established dealers. However, with support from entities such as local governments, non-profit organizations, and international organizations the artisanal and small scale miners have the potential to have their minerals sold at the Tucson Shows for prices that would be greater than what can be achieved in the local market. Methods to help the artisanal and small scale miners compete include direct sales or consignments to retail dealers, tailgating, development of sales co-operatives, and the creation of an artisanal/small scale mineral show.     

Artisanal and small-scale gold mining in Burkina Faso: Suggestion of multi-agent methodology as a complementary support in elaborating a policy

In order to better manage artisanal and small-scale gold mining, the Burkinabe authorities have planned to build a suitable methodological support as an aid to elaborating appropriate policies and actions. The developed methodology concerns (a) at a spatial level, the generation and analysis of a geological resources map needed by the artisanal miners and (b) at a socioeconomic level, analysis of the miners' activity. This paper reports and discusses the results of our suggestion to also introduce the use of an approach known as multi-agent system (MAS) as a complementary part of this initial methodology, at a downstage level to the above two analysis stages. MAS methodology could be used to develop simulation models to forecast the future of the activity. MAS is appropriate for describing the dynamics of systems where it is impossible to obtain all output data of a model from a purely mathematical or statistical transformation of input data. Our suggestion involves (i) demonstrating the capacity of the approach to simulate all parameters needed by mining policy makers and (ii) evaluating to what extent the methodology is accepted by them, as well as, at a more scientific level, the literature regarding mining system simulation.