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.     

Large-scale v small-scale mining

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

Reforming small-scale mining in sub-Saharan Africa: Political and ideological challenges to a Fair Trade gold initiative

In sub-Saharan Africa, artisanal and small-scale mining (ASM) has caused a range of environmental, social and economic problems. Most of the donor support pledged to improve conditions in the sector to date, however, has failed to facilitate marked improvements, in large part because emphasis has been placed on technical interventions; at the same time, impoverished miners’ needs and concerns have been seriously overlooked. It is against this background that this paper critically examines the underpinnings and potential of “Fair Trade gold” as a solution to many of the problems plaguing the ASM sector and a mechanism for alleviating the hardships of its operators. Unlike the majority of ASM-support support measures implemented in the past, “Fair Trade gold” is entrenched in the discourse of “partnership” and “participation”. To ensure its effectiveness initiatives must be adapted according to the specificities of ASM.     

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.     

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.     

Options for mining development in Africa

Self-sufficiency in agriculture has been the principal development target in Africa for the past decade. It is now generally appreciated that that target can only be reached if population growth can be controlled and farmers are paid to make it worth while to grow a surplus. Responsibility for the next phase of development – wealth generation – will depend largely by default on the rapid growth of mining, particularly smaller mines. This paper sets out the country requirements for a successful mining sector in Africa. Experience in Zimbabwe and elsewhere suggests that there are three essential components: (i) simple, transparent mining legislation that gives title to the discoverer of a mineral resource in the form of a freely tradeable property right; (ii) the availability of local and/or international sources of risk finance; and (iii) a workforce that includes numbers of persons who have been trained in the technical and financial aspects of practical mining.     

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.     

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.     

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.     

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.     

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.     

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.     

Pork knocking in the land of many waters: Artisanal and small-scale mining (ASM) in Guyana

The growth of artisanal and small-scale mining (ASM) in Guyana has received little attention in the literature, despite its rapid growth and now central importance in this small country's socioeconomic fortunes. Although the activity in Guyana shares commonalities with ASM activity elsewhere in the world, it also displays some unique characteristics. This article builds upon existing debates and current issues surrounding Guyanese ASM. A lack of baseline data and research on the dynamics, underlying forces and various outcomes of the ASM sector has acted as a significant constraint on the regulation and development of the sector in a completely desirable fashion. This has been the result of, but has also been exacerbated by, the ineffective nature of intervention, enforcement and assistance. This paper aims to demonstrate and argue for the need for developing much clearer understandings of and effective interactions with the ASM sector in Guyana. Such all developments are the more pressing given future policies, which may represent potentially sizeable challenges for the continued vibrancy of ASM operations.     

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.     

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.     

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.     

How have reforms fuelled the expansion of artisanal mining? Evidence from sub-Saharan Africa

This paper investigates whether and how World Bank mining sector reforms have fuelled the expansion of illegal artisanal mining activity in Sub-Saharan Africa. In doing so, the analysis examines three issues. First, the emerging correlation between reforms and poverty, mainly a result of increased unemployment caused by Structural Adjustment Programmes and concurrent privatisation of state-owned enterprises, is explored. Second, the possibility that reform of large-scale mining has decreased available land for peasant farming as well as legalised small-scale mining activity is discussed. Finally, the notion that the regularisation of informal mining activities has been an exceedingly bureaucratic procedure in Africa, therefore providing individuals with little incentive to operate within the legal domain, is examined. Faced with few employment prospects, a growing number of Africans are pursuing employment in the artisanal mining sector, a worrying prospect given its intimate association with environmental degradation and HIV/AIDS.