ARTISANAL AND SMALL- SCALE...
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ARTISANAL AND SMALL-SCALE MINING
Improving the Contribution of Artisanal and Small-Scale Mining to Sustainable Development
Artisanal and Small-Scale Mining Page 2
TABLE OF CONTENTS
Abbreviations
I. INTRODUCTION
I.1. Profile of Artisanal and Small-scale Miners I.2. The Vicious Circle of Poverty I.3. ASM and the Millennium Development Goals (MDGs)
I.4. Major Issues in ASM
II. ENVIRONMENTAL ISSUES
II.1. Environmental Impacts of ASM II.2. Protecting the Environment in ASM
III. SAFETY AND HEALTH ISSUES
III.1. Dangerous and Health Threatening Working Conditions III.2. Improving Working Conditions
IV. WOMEN IN ASM
IV.1. Gender Discrimination in ASM IV.2. Assisting Women in Mining: Gender Sensitive Approaches IV.3. Women’s Mining Associations IV.4. Implications for Children
V. CHILD LABOUR IN ASM
V.I. Eliminating Child Labour in Mines V.II. addressing Child Labour Issues in Mining Policies and Development Programmes
VI. RELATIONSHIP WITH LSM
VI.1. ASM-LSM Conflicts VI.2. Cooperation between LSM and ASM: Improving Relations
VII. POLICY AND LEGAL ISSUES
VII.1. The Difficulties Faced by ASM to Operate in the Legal Domain VII.2. Improving the Regulatory Environment VII.3. Law Enforcement
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VIII. LEGAL AND TRANSFERABLE RIGHTS
VIII.1. Informal Land Rights VIII.2. Formal Property Rights VIII.3. Allocated ASM Areas
IX. ACCESS TO FINANCE AND CREDIT
IX.1. Constraints on Obtaining Credit IX.2. Improving Finance Systems
X. MARKET ACCESS AND CERTIFICATION
X.1. Reasons for Illicit Marketing X.2. Better Markets for ASM Products X.3. Certification
XI. ORGANISATIONS AND ASOCIATIONS OF ASM
XI.1. ASM Associations XI.2. ASM Cooperatives XI.3. Unions and Syndicates
XII. ALTERNATIVE INCOMES, LIVELIHOODS
XII.1. Constraints to Exit ASM
XII.2. Promoting Alternative Livelihoods (enterprise development, opportunities within the LSM sector & agriculture)
XIII. CONCLUSION: TABLE OF RECOMMENDATIONS
BIBLIOGRAPHY
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Abbreviations
ASM: Artisanal and small-scale mining
CASM: Communities and small-scale mining
DFID: Department for International Development
ILO: International labour organisation
IPEC: International Program on the Elimination of Child Labour
KPCS: Kimberley Process Certification Scheme
LSM: Large-scale mining
MDG: Millennium Development Goal
SSM: Small-scale mining
TAWOMA: Tanzanian Women‟s Miners‟ Association
UNECA: United Nations Economic Commission for Africa
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I. INTRODUCTION
Although governments have their own interpretations of artisanal and small-scale mining (ASM),
defined according to criteria such as workforce size, production and revenues, ASM is generally
identified in international development circles as the most rudimentary branch of the mining
sector. ASM is usually defined as a low tech, labour intensive mineral processing and excavation
activity. ASM has become an integral segment of the developing world‟s rural economy.
“There are signs that the development sector is increasingly recognizing the opportunities
artisanal mining communities present for development processes. Heads of State meeting at the
2007 G8 summit highlighted the importance of the artisanal mining sector and reaffirmed the
need for increased support to CASM and other organizations working on artisanal and small-
scale mining issues.”1
Individuals may be involved in ASM activities for a number of reasons: traditional ASM activities;
gold or diamond rush ASM activities; temporary ASM activities; isolated and remote ASM
activities without or with very little involvement in nearby communities; seasonal ASM activities
within the agricultural cycle; or poverty driven.
I.1. Profile of Artisanal and Small-scale Miners
Artisanal mining represents the bottom end of the small-scale mining sector. Artisanal mining
typically uses manual labour, simple tools, and basic recovery and processing techniques. Small-
scale is also labour intensive but employs a higher level of mechanisation and more sophisticated
processes.
Miners include subsistence farmers and their families working on a seasonal basis. A large portion
of the miners are migrant workers. ASM is frequently migratory as miners move from site to site
in search of minerals. A combination of practical, economic and social factors including the life
of the mine; the lure of high-value mineral strikes in other areas which create a „rush‟ to that site;
exclusion from the arrival of a LSM company or the agricultural season explain the rate at which
they move and the geographic area within which they travel. A huge variety of minerals are mined
on an ASM basis in Africa including: gold; precious stones; semi precious stones; industrial
metals and minerals, building materials and consumables such as salt. Due to technical
limitations, operations are usually confined to surface mineralization and shallow underground
workings. In many countries, most of the artisanal and small-scale miners produce gold which
has the advantage of being relatively simple to extract, refine and transport.
1 Jon Hobbs, DFID representative and chairman of CASM
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Despite the actual and potential economic value of this livelihood, those occupied in the ASM
extraction are among the poorest and most marginalised members of the community.
The major characteristic of ASM is the low barriers to entry. The basic requirements for the start-
up of a new mining operation in terms of skills, investment capital, infrastructure,
implementation time and minimum reserve are lowest for ASM, especially for artisanal mining
growing with increasing scale of operations. Due to this limited barriers to entry, a large number
of people are involved in the sector in developing countries. Moreover, as a highly labour-
intensive activity, ASM provides employment for a significant number of people, particularly in
remote rural areas, where alternative livelihoods are rare and low paying.
The absence of formalisation in ASM together with the seasonal and migrating character of the
activity makes the administration and control of the sector extremely difficult.
I.2. The vicious circle of poverty
Poor and inadequate policies, inefficient equipment and an inability to diversify income-earning
activities may be the main driving forces behind the impoverishment of ASM. In the most basic
of situations, nomadic small-scale miners use basic equipment and operate under harsh and risky
conditions. Miners face considerable challenges in their efforts to mechanize, unable to mobilize
the funds needed to purchase sophisticated equipment.
The vicious circle of poverty can be illustrated as follows:
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I.3. ASM and the Millenium Development Goals (MDGs)
Table 1: The MDGs and ASM
Source: CFC ( Common Fund for Commodities) 2008 report on ASM
The 8 MDGs have been adopted by the international community as a framework for the
development activities of over 190 countries in 10 regions; they have been articulated into over
20 targets and over 60 indicators.
A progress report was published in 20082 and a number of targets are expected to be reached by
2O15. However, ASM is not really be impacted by the improvements. ASM-related poverty is not
2 The millennium development goals report, Department of Economic and Social Affairs of the United Nations
Secretariat, Inter agency and Expert group on MDG Indicators.
MDG Relevance to ASM
Eradicate extreme poverty
and hunger
8.775m people in Africa depend ASM for their livelihood. ASM is
driven by poverty, can reduce or can perpetuate poverty.
Unregulated ASM undermines agriculture and food security.
Achieve universal primary
education
676,000 children work in ASM in Africa. For many this is a result
or cause of exclusion from school.
Promote gender equality
and empower women
4m women work in ASM in Africa. Women suffer inequality and
abuse in ASM and need urgent support to strengthen or transform
their roles.
Reduce child mortality/
Improve maternal health
ASM communities rarely have access to health, care, decent
hygiene or sanitation, clean water, or good nutrition. Women and
children are highly vulnerable in ASM communities.
Combat HIV and AIDS,
malaria and other diseases
ASM is a high-risk activity for HIV/AIDS. ASM camps are high
risk for diseases such as malaria, and water-borne diseases.
Ensure environmental
sustainability
ASM causes water contamination, mercury poisoning, erosion,
degradation of landscapes an agricultural land, deforestation.
Develop a global
partnership for
development
A range of ASM partnerships already exist and can be incorporated
into global alliances to bring ASM into a stronger position for
interventions.
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reducing; the number of projects actively assisting children to leave the mines and enter school is
too small; there are few HIV/AIDS programmes for ASM areas; ASM areas can suffer from
increased malaria prevalence due to standing water and lack of access to prevention programmes;
water quality in ASM areas is poor and progressively deteriorating.
The Yaoundé Vision Statement‟s recommendations contribute „to sustainably reduce poverty and
improve livelihood in the African ASM communities by the year 2015, in line with the MDGs‟.
The goals identified included:
Acknowledge and reflect ASM sectoral issues in national legislation and codes;
Mainstream poverty reduction strategies into mining policy inclusive of ASM policies;
Integrate ASM policy into PRSP processes with linkages to other rural sectors, develop a
strategic framework for PRSPs;
Revisit existing thinking on ASM legislation (traditional land rights, and modern land use
legislation nexus) and role of central government;
Strengthen Institutions by improving availability of appropriate technologies and
developing analytical and business skills; and,
Undertake necessary reforms of the ASM sector: improve policies, institutions, processes
and the ASM stakeholders‟ livelihood; reduce child labour; ensure gender quality; improve
health and safety; develop partnerships; promote sustainable use the natural resources;
infrastructure development; land use management.
A series of recommendations were made for government, development partners, and for
international and national stakeholders including the private sector, donors and NGOs.
I.4. Major Issues in ASM
The challenge facing LSM companies, governments and civil society is to harness ASM as an
activity that can contribute responsibly towards the achievement of local development objectives
and national development.
In addition to providing obvious employment benefits for citizens, a formalized ASM sector
would also benefit governments. For ASM formalization to work, some emphasis should be
placed on studying, and ultimately absorbing, existing customary practices developed informally
by the miners. It is also important to look at the different problems faced by ASM, and to look
for ways to improve the situation.
The sector is burdened with issues ranging from child labour, gender inequality, environmental
devastation, poor health and safety, lack of capital and fair markets and conflicts with the LSM
sector.
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While it is difficult to define sustainability for an operation, which exploits a non renewable
resource, interventions to help ASM workers to improve productivity and to use safer, more
environmentally sound and socially responsible mining techniques have a very important role to
play in improving ASM‟s contribution to sustainable development.
ASM is an important part of the social and economic infrastructure in many developing countries and should be accorded sufficient attention to ensure its contribution to the local and national economy.
The main issue is how to ensure that ASM does not harm the community and creates the basis
for poverty reduction and sustainable development.
The paper will depict issues of environmental management, occupational health and safety, social,
policies and regulatory framework, conflicts with LSM operations, technical and financial
assistance, market access and alternative livelihoods in the ASM sector.
II. ENVIRONMENTAL ISSUES
II.1. Environmental Impacts of ASM
ASM produces negative impacts on environment during the different stages of mining
(exploration, exploitation, processing and closure).Some of the environmental problems caused
by ASM, inter alia, are: mercury and cyanide pollution; pollution of watercourses, with sediments
and heavy metals, of rivers used for the water supply of cities; acid rock drainage; pollution by
heavy metals of surface and groundwater; improper closure; river damage in alluvial areas; river
siltation; landscape destruction; garbage and solid waste; tropical diseases (malaria); and
uncontrolled ASM activities in protected areas.
There are multiple causes for the severe environmental impacts in ASM:
• Lack of knowledge, education and training (technical and environmental);
• Inefficient technology and limited techniques;
• Inefficient administrative management;
• Errors in human control;
• Economic limitations;
• Lack of access to better techniques;
• Lack of information about good practice;
• Lack of control and enforcement; and,
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• Non adequate environmental legislation.
The difficulties are great to control, monitor and enforce environmental violations due to lack of
resources and the inaccessible nature of the sector. Law enforcement efforts so far seem to be
unsustainable and counterproductive.
In Gorgongoza (Mozambique), by being prohibited to use mining wealth, the miners feel that
they were being denied economic development for the sake of wildlife conservation.
II.2. Protecting the Environment in ASM
Identifying the best solutions requires socio-economics issues to be taken into account. There is
a need for elaborating strategies such that the local population can benefit from the mineral
wealth but without being detrimental to ecologically valuable areas and without jeopardizing the
potential for tourism. Policies and programmes addressing environmental issues should include:
A monitoring scheme to check the environmental impacts and to enable elaborating
strategies for dealing with the environmental impact of the mining and the enforcement
of appropriate penalties;
Solutions which are “win-win” or at least “win - do not loose” are likely to have success, taking into account that the ASM;
Incentives and training rather than programmes or policies strictly focused on traditional monitoring and enforcement systems;
Benefits need to be demonstrated and standards must not be unrealistic and unattainable;
Improved community awareness on environment; and,
Environmental problems cannot be solved by technically oriented approaches alone, the implementation of technical „solutions‟ always require detailed knowledge of the cultural, social, economic and organisational context of the miners.
ASM specific legislation or regulations could be more effective, environmental problems require technical solutions that are culturally relevant, and an integral approach is needed for changes to be implemented. In the Tanzanian law („The Mining Act”), there is ASM specific environmental legislation. ASM using different mining techniques than LSM, and therefore different environmental impacts, it should be addressed separately.
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III. SAFETY AND HEALTH ISSUES
A critical issue in ASM is the frequent lack of health and safety standards in relation to mining,
transport and processing standards. In many cases, basic standards are articulated by government
through mine law or ASM regulations; however these are rarely disseminated and even more
rarely enforced. Specific legislation addressing issues on health and safety or SSM is rare, this
issue is mostly addressed under general regulations.
III.1. Dangerous and health threatening working conditions
ASM has a poor reputation for safety. The five major health risks in small-scale mining and
processing, according to ILO are:
• Exposure to dust (silicosis);
• Exposure to mercury and other chemicals;
• Effects of noise and vibration;
• Effects of poor ventilation (heat, humidity, lack of oxygen); and,
• Effects of over-exertion, inadequate work space and inappropriate equipment.
ASM mines can be extremely dangerous. ASM operations rarely have good personal protection
or other safety protection. Examples of particularly dangerous practices include diamond divers
who spend long periods underwater, often in fast flowing water, with no proper equipment just a
hosepipe in the mouth for air. Gemstone miners in Zambia have been known to enter deep shats
and galleries with a car inner tube around their neck as an emergency air supply. 3
The nature of ASM (low level of mechanization, low intensity of operation) might lead to think
that some of the risks can be lower than in LSM. Practice however shows, that this isn‟t always
the case, and many fatal and disabling accidents do occur in ASM, accidents that can be
considered to be preventable.
The reasons for such negligence and risk-taking and the reasons that there may sometimes be
more accidents in many artisanal and small-scale mining operations than in larger, more formal
mines are varied and include:
Inappropriate working conditions;
Lack of resources;
3 CFC (Common Fund for Commodities) 2008 Report on ASM
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Lack of, or non-application of safety regulations;
Lack of inspection;
Lack of law enforcement or deterrent penalties;
Lack of awareness, and illiteracy;
Lack of training;
Inadequate equipment;
Lack of access to safety equipment and the wherewithal to buy it;
Remote location;
Cost-cutting and speed; and,
Tradition.
Problems relating to occupational health are serious and persistent, touching all who work in and around ASM and processing operations, and their families. More attention should be paid to improving the occupational health and safety of mineworkers and their communities.
III.2. Improving health and Safety in ASM
Even if attitudes towards improving mine safety can be improved and those concerned motivated
to take action and to achieve a lasting improvement, the resources necessary to achieve the results
are too often lacking.
Health and safety legislation or regulations must take into account the economic situation of
ASM. Most artisanal, small-scale mines are working under marginal economic conditions. Even
basic safety measures have a certain cost. Such regulations should be accompanied with
equipment and technical assistance programmes.
Specific ASM regulation could be more effective. Safety regulations LSM are not generally
applicable to ASM without prior analysis and adapting. Exaggerated safety requirements tend to
discourage small-scale miners, inspiring them to simply ignore all safety advices as “utopic”. The
Zambian regulations have ASM specific occupational health and safety sections. The regulations
specific to SSM, address issues such as ventilation and air pollution arising from dust, fumes and
other toxic gases. It provides measures for determination of concentrations of such pollutants
and sets standards for air quality.
The „ Safety & Health in Small-scale Surface Mines Handbook‟ of the ILO (2001) includes
guidance on accident prevention; hazards in the working environment; health; welfare and
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hygiene; first aid; protective equipment; safe practices; safe use of mechanised equipment;
explosives and mine closure.
Safety inspection are sometimes weak and the quantity and quality of safety inspectors are
insufficient in view of the nature of the task and the number and wide dispersion of artisanal and
small-scale mines. Even when inspections are made, focus is often more on verifying production
to ensure royalty payments are correctly calculated and collected than on safety and health.
Having different agencies responsible for safety and health, production permits, working and
living conditions, and migrant workers inevitably could be a solution to the problem.
Unawareness of risks, especially concerning risks of chronic occupational diseases (dust,
vibrations, nitrous gases, mercury, cyanide, etc) due to missing or inadequately implemented
education and training. Education and training programs need to be designed according to the
social, cultural and ethnic characteristics of the small-scale miners‟ communities. Education,
training, demonstration and surveillance are the key elements of any program to improve
occupational safety and health in ASM. Both mineworkers and owners must be helped to realize
that accident prevention and improved occupational health are worth obtaining and keeping. In
the short term, safety and health has a cost, in the mid- or long-term it produces revenues.
Mercury amalgamation is the preferred gold recovery method employed by artisanal gold miners
and its misuse can result in serious health hazards for miners involved in gold extraction, as well
as for surrounding community inhabitants, who may be exposed to mercury. The basic
techniques characteristic of ASM result in a number of occupational hazards. Several
technologies and methods commonly utilized by LSM operations can be downsized to smaller
scale operations.
Fast track mechanization without implementing complementary safety measures could be
dangerous. Inadequate, inappropriate or unsafe equipment are real problems in many small-scale
mines, including in some cases equipment provided as part of technical cooperation programmes.
Such equipment leads to increased risk as workers try to adapt it to their needs. Any mechanized
working requires the correct application of the technology. The introduction of the ThermEX
glass retort in ASM can be taken as a n example. The ThermEx glass retort allows miners to
observe the entire process of separation of mercury and gold from the amalgam. Other
advantages include: the warm-up time is shorter compared to metallic retorts ; contrary to
metallic retorts where the gold becomes darker or browner due to its reaction with iron, in the
glass retort there is no colour change; and there are less gold losses than in metallic retorts where
gold infiltrates into iron surfaces. While mining legislation in Tanzania dictates the use of retorts
for gold recovery, virtually no miners use them, indicating the inadequacy of previous
introduction attempts. The likelihood that miners will adopt these large-scale methods, or those
developed specifically for ASM, depends upon some key factors. For an artisanal miner, these
factors include: increased or comparable simplicity, quick recovery of the economic mineral, and
demonstrated financial gain. Other practical aspects, such as the availability of materials
(chemicals, steel rods, piping, generators, etc), capital and operating cost requirements and access
to technical support, also influence acceptance of new techniques.
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Any intervention that seeks to address ASM must look at the health and safety implication of the
practices in and around the mine sites. When dangerous ASM areas have to be closed, or certain
practices have to be banned, a campaign of public information dissemination is essential.
IV. WOMEN IN ASM
Women may constitute up to half of the workforce in Africa. Women frequently use ASM as a
supplementary income source, often seasonally, and their presence around the mines may be less
visible so they may be excluded from estimates.
IV.1. Gender discrimination in ASM
Women in ASM suffer discrimination in relation to opportunities and pay. Women face a rage of
risks in the mines, particularly relating to health and sexual violence. Unlike their low level of
participation in the LSM sector, women play a significant role in ASM. In fact, generally the
handling of mechanised equipment and machines is reserved for men. This may be due to
assumptions that women do not have the technical skills or cultural suitability to operate
machinery or may be due to the fact that as income generation opportunities improve, men
dominate the new better paid options while women are relegated to the lower income activities.
Women‟s participation in ASM involves not only mining but also the supply of food, drink, tools
and equipment, as well as sexual services. Women are also involved in the trading of minerals
such as gold and gemstones.
Regardless of the region or the type of mining there are common problems that are faced by
women miners or women who want to work in ASM other than at the most menial level. These
include:
Women are not given equal opportunities regarding access to financial, technical or legal
support.Legal, administrative and financial constraints prevent women's participation in
ASM or limit it to basic wage-earning, often in informal, illegal mining;
The fear that women's presence might lead to "indiscipline", the pragmatic reasoning of
some mine owners that women create a distraction for the male workers;
Cultural taboos, superstition and concerns for health and safety;
Less technical know-how than their male counterparts and women's perceived inability
to cope with much of the physical side of mining;
Lack of representation and support;
Lack of management and administrative skills; complex and lengthy administrative
procedures;
Widespread illiteracy; the fact that many women lack formal education may further stifle
their ability to deal with formal lending institutions;
Socio-economic perceptions about their status; and,
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Cultural traditions that impose a heavy family burden and limit their independence and
mobility. Cultural barriers can affect women's participation even when the others have
been overcome. Family responsibilities restrict the time many women can devote to
mining activity, reducing their productivity and earning capacity.
Without credit, women are generally trapped at a subsistence level of mining, extracting what is
easiest, possibly to the long-term detriment of the available mineral reserves, and confining
themselves to a precarious existence.
Another layer of challenge is added for women in countries where land rights are not equitable
for men and women. In such cases, women have little opportunity to develop strong livelihoods
within ASM, “policies that restrict or deter women from obtaining concessions or land rights further contribute to
the feminization of poverty ’4
IV.2. Assisting women in mining: Gender sensitive approaches
Mining policies should address women issues and aim to alleviate barriers and encourage their
employment. Interventions that support all ASM workers should perhaps emphasize on ensuring
equal access to finance, technology and markets for women. A gender-sensitive approach is
needed in project planning. A gender-sensitive approach analyses the different needs, challenges
and opportunities faced by men and women. Women must be involved in all aspects of
consultation, and must be empowered to participate fully and equally in decisions regarding the
allocation and utilization of benefits. If women are not included, they may fail to access the
benefits of the intervention. For example, many mercury awareness campaigns in the past have
targeted men, and their education and literacy levels tend to be higher, women are often less
aware of the risk of mercury than their male counterparts who can read the awareness notices put
in place. 5
There are many ways in which women can profit from engagement in and around ASM. They
can assume many different roles and may have particular skills and qualities to contribute to
certain tasks.
The participation of women as entrepreneurs rather than as labourers in ASM can contribute to
improving the status of women generally. Women entrepreneurs can serve as role models and
can offer opportunities to other women. Another interesting opportunity for women within the
ASM may lie in certification and market access, particularly in the precious metals and gemstones
4 Hinton, et al.
5 Hinto, Jennifer J, Veiga, Marcello M. & Beinhoff, Christian (2003) Women and Artisanal Mining : Gender Roles
and the road ahead, As : Ch. 11 in The Socio-Economic Impacts of ASM Mining In Developing Countries. Swet.
Publ., ed. G. Hilson The netherlands
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markets aimed at jewellery where women are primary consumers and could have an empathetic
predisposition to products branded as coming from women‟s ASM businesses.
The programmes assisting women in mining in ASM should focus on, inter alia:
Managerial training; delivering technical services and support;
Educating women at different levels so that they have the chance to be upwardly mobile
in small-scale mining;
Sensitizing women and the community to ASM;
Improving women's domestic situation, for example by improving food processing and
preparation activities;
Delivering financial assistance;
Obtaining the right to land ownership;
Establishing credit;
Increasing women's empowerment; and,
Delivering services such as health care, education, child care and first-aid
Awareness-raising, training, confidence ,image building and the setting up of support groups are
all elements in the process of providing the means for women to break through the barriers that
confine most of them to a menial role in ASM. When these are combined with the removal of
legal and financial obstacles and socio-cultural taboos, women will be in a much better position
to take advantage of the opportunities that ASM can provide.
The „Women Microfinance Project‟ 6(2001 to 2008), worked to increase the capacities of micro-
finance institutions in the DRC to improve their ability to provide cost effective, year-round
services that are able to meet the needs of the DRC‟s female population. The project‟s efforts
resulted in an improved quality of life for the women participating and increased economic
activity in the district in which the project takes place. The project also contributed to greater
economic and decision making power exercised by women in the DRC.
Another programme in the DRC is the „WORTH‟ programme, in the region of Katanga, that
provides literacy skills and financial management training, and helps groups of women to form to
collectively save a weekly income. This group fund can then be used to start micro-enterprises,
with assistance from social development programmes of mining companies and USAID.
6 Overview on donor activities in the SSM sector in DRC.
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IV.3. Women’s Mining Associations
The creation of women‟s associations can generate social benefits. A number of women‟s mining
associations have been developed which attempt to overcome the barriers to women‟s
advancement within the industry.
For example, in Southern Africa, the SADC Women in Mining Trust addresses the needs of
women miners and has members in Angola, Botswana, Namibia, Congo DR, Mozambique,
Swaziland, Tanzania, Zambia and Zimbabwe. The main objectives of the Trust include: lobbying
for support of women in mining both regionally and internationally; identifying the training and
technical needs of women miners and conducting training programmes to meet those needs;
training women in environmentally sound mining methods; establishing revolving loan funds to
increase women miners access to capital; and to network and facilitate the marketing of members
products.
The Tanzanian Women Miners Association (TAWOMA) mission is outlined as follows: „to
facilitate women miners to organise and access required financial, technical and marketing
services so that they can carry out mining activities that are both economically and commercially
viable and environmentally sustainable and thereby raise the standard of living for women miners
and their families.‟ In terms of long-term goals, TAWOMA is working towards establishing a
centre for the rental of mining equipment and tools; a lapidary and jewellery production unit; and
a skills training centre focusing on environmentally sustainable mining and processing methods,
health and safety issues and the rehabilitation of ecologically sensitive mining areas.
IV.4.Implications for children
When women are forced to bring their children into the mines, this can have negative effects on
the children‟s health, access to education, and future development. The presence of children
assisting their mothers, including school children working after school or instead of going to
school may be due to the fact that the mothers have no other alternative than keeping them by
their side. The idea of providing crèche facilities for children near mines has been proposed by
the ILO.
The physical presence of children in the mine can be a contributor to child labour in mining as
the children are given tasks to do within the mine. If they become habituated to this, if the
income they generate is essential to the family, or if the mine is remote of any schools; these
children can be excluded from education. It is important that initiatives aiming to remove
children from mines consider if and how the mothers are engaged in and around the mines.
Finding ways to supplement the mothers‟ income or otherwise support them to improve their
household finances, may have a direct impact on the welfare and labour status of the children.
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V. CHILD LABOUR IN ASM
The reasons for child labour in mining are mainly poverty driven and could include:
• Low family incomes in the ASM regions; the families do not have enough income for school
material, clothing and food;
• Lack of educational infrastructure;
• Lack of interest of the parents in the education of their children;
• Lack of awareness of the parents for the risks of child labour in mining;
• Lack of orientation of the parents concerning the future of their children;
• Traditional reasons; and,
• Lack of legislation, enforcement and labour inspection
V.1. Eliminating Child Labour in Mines
The UN convention on the Worst Forms of Child Labour identifies mining as ‘work, which by its
nature or the circumstances in which it is carried out is likely to harm the health, safety and moral of children’ .
The convention has been ratified by 41 countries and, in many, there is a legal age limit
established for the issuance of mining licences which precludes young people under the age of 18
from working directly in the mines.
The consequences of child labour are multiple; among others:
• The children do not go to school at all or irregular; they risk being excluded from education and
therefore their prospects and potential for future employment in a sector other than ASM are
reduced. On the other hand, ASM may be the means by which children or their families earn the
money for school fees. Only few children go to school, even if schooling is available. Since many
mining sites are seen as temporary, there is little incentive for the local authorities to provide
schooling;
• Problems in the physical and psychological development of the children; children working in
small-scale mining are not only exposed to immediate risk but they are also jeopardizing their
long-term development both physical and socio-economic;
• Health problems, for example through mercury exposure or carrying heavy load (overexertion,
malnutrition, TB, malaria, diarrhoea, lack of hygiene, dust, noise, vibration, mercury and other
chemicals) ;and
• Fatal and serious accidents; the hazards faced by children are the same as for adult miners
(inundation, cave-in, asphyxiation, trips and falls etc. ) but the risks to immature bodies are much
more severe.
Artisanal and Small-Scale Mining Page 19
The ILO‟s programme „Minors out of Mining‟ launched in 2005, aims to eliminate child labour in
ASM completely within ten years. It is a tripartite effort initiated by the concerned governments
with the support of the industry (companies and workers) and the ILO through its technical
assistance program, IPEC (International Programme for the Elimination of Child Labour)7. At
the country level, the projects are similarly tripartite: under thee leadership of the government,
workers employers and communities address the issue of child labour in SSM and its roots causes
in a coordinated way. Additional partners will also play a key part.
Each country project takes a two sided approach: upstream action to create a policy environment
conducive to regularisation of SSM operations, and downstream activities to monitor children in
mining areas, withdraw those found to be working and place them in school and training. The
overall target of the project is to remove one million children from labour in mines by 2015 in
the countries concerned which are Brazil, Burkina Faso Colombia, Côte d‟Ivoire, Ecuador,
Ghana, Mali, Mongolia, Nicaragua, Pakistan, Peru, Philippines, Senegal, Tanzania and Togo. The
target for achieving clear results from this programme is five years.
In Peru, pilot initiatives supported by IPEC in 3 departments demonstrated that the elimination
of child labour from mining is possible. The initiatives showed that for the progressive
elimination of child labour, it is firstly important to improve the mining industry through changes
in technology, income generation, social protection, improvements in basic services,
organisational strengthening and sensitizing at the national and regional level. The initiatives also
achieved a political commitment from the State to address the problem of child labour in SSM
through a tripartite agreement with employers, government and trade unions.
In Niger, the sites of Komabangou and Mbanga are examples of the positive progress that can be
made against child labour in mining8. By making illegal the labour in gold extraction and
processing of girls under 15, by sensitizing parents and employers to the dangers of employing
children and by the close collaboration between ILO-IPEC, the police, administrative authorities
and schools, the approach seems to be successful.
These projects have demonstrated that it is possible to tackle the problem of child labour in ASM
communities by a widespread sensitization of the dangers of child labour, collaboration between
the government, the police and civil society, improved labour and living conditions, the provision
of a free and quality education and the close monitoring of children at risk. However, thee always
remains the threat that communities will retreat into using child labour.
V.2. Addressing child labour issues in mining policies and development programmes
Considerable care is needed if programmes for removing children from hazardous work are to
succeed. The local situation must be carefully studied and the children concerned. Child labour is
not an issue that can be dealt with in isolation. Removing children from the workplace without
7 Minors out Mining, ILO-IPEC, 2006
8 Girls in Mining, ILO-IPEC, 2007
Artisanal and Small-Scale Mining Page 20
providing the means for them to go to school and ensuring a compensatory contribution to the
family income will eventually result in them drifting back to the work they left.
Working conditions and health and safety risks affecting children in ASM differ widely according
to whether work is underground or on the surface, the type of mineral being mined, and the type
of processing that is carried out and children's involvement in it. Clearly those at greatest risk
should be the primary focus of programmes to stop their participation and prevent it recurring.
The programmes and policies aiming to eliminate child labour should focus on, inter alia:
Improving children's working conditions as a first stage towards eliminating child labour;
Withdrawing children from dangerous activities;
Making children, parents, employers, private and public institutions and the public more
aware of the dangers of putting children to work in mines;
Preventing children being put to work in mines;
Improving legislation and enforcement ;
Gaining a better idea of the living and working conditions of children involved in small-
scale mining; and
Providing working children and their families with viable alternatives.
VI. Relationship with Large-Scale Mining (LSM): Cooperation or Confrontation?
The relationship between ASM and LSM is often complex. It is widely recognized that
maintaining a harmonious relationship between LSM multinational companies and local ASM
operators is crucial if both parties are to maximize their contributions to the economy and
livelihoods in the operational areas.
VI.1. ASM-LSM conflicts
LSM and ASM often compete to exploit the same mineral resources. Trespassing by ASM
operators on concessions acquired by companies and the eviction of indigenous miners by large
mining companies often leads to confrontations. Tension and conflict between displaced small-
scale miners and large mining companies can be politically and financially damaging for foreign
investors and national governments, particularly if it discourages new mining activity.
There have been violent clashes in several countries as small-scale miners have sought to re-enter
what they considered to be their rightful mining territory (traditional land ownership) which had
been assigned by the government to a large mining company. The strained relationship between
ASM and LSM can start from the point of exploration. Abandoned or active artisanal workings
are an indicator of resources for geologists when prospecting for minerals. In the same way, the
Artisanal and Small-Scale Mining Page 21
arrival of a company‟s prospection team in an area can stimulate artisanal mining activity. Thus
interactions between mining companies and ASM workers can commence at a very early stage in
a new mining project.
In Ghana, although the laws governing mining may clearly define the processes and ownership of
mineral concessions, there has been a conspicuous absence of political will to enforce the laws,
which has often fuelled conflicts between ASM and LSM operators.
There is often a clash of interest between small-scale and large minesOnce formal title is
established and mine development is underway, the process of removing artisanal miners and
maintaining this exclusion is a key point at which conflicts can occur. These conflicts can be
violent and even fatal.
VI.2. Improving relations between LSM and ASM
There are several approaches to developing a better relationship between the two sectors. There
is scope for mutually advantageous co-operation between the two groups. It creates a conducive
mining environment for LSM and access to appropriate technology, markets and training for
SSM.
Although the often complex relationship between the two sectors, an increasing number of
examples show that it is possible to strike a balance between the economic objectives of large-
scale miners and the livelihood requirements of artisanal miners.
VI.2.1 LSM strategies to address ASM issues
Companies can face considerable difficulties to find solutions to the presence of ASM on a
concession. Approaches and steps which can be taken range from:
forced evacuation of the site;
negotiated departure from the site, with or without resettlement and compensation;
purchasing arrangements whereby the ASM community becomes a legal/formal supplier
(notably for tailings);
providing access to technical support such as mineral processing facilities;
subcontracting to commercial SSM ventures;
providing emergency rescue services if needed;
job creation schemes;
Artisanal and Small-Scale Mining Page 22
creation alternative livelihoods, supplier businesses; and,
social development projects that improve the lives of the surrounding community
including the ASM workers.
Companies must determine the approach they are willing to take in relation to the desired
outcome. Than physical security measures, it is better for a company to try to find employment
for some of the small-scale mineworkers, or take the ASM under its wing, than to shut them out
by force of the concessions.
Through recent workshops and dedicated research, CASM is focusing efforts on opening paths
to achieve such a balance. Through a workshop in Lubumbashi, DRC, for instance, participants
from both large-scale and small-scale mining operations discussed some practical solutions and
identified key steps to facilitate positive interactions and co-habitation between the two sectors
where feasible.
Various guides and tools are available to help with developing and implementing plans for this,
notably the IFC Guide producing a Guide for LSM-ASM relations.
In Ghana, AngloGold Ashanti is working with other mining companies, the Chamber of Mines
and the National Minerals Commission to identify properties which are suitable for SSM and to
promote registration by miners in respect of operations on these properties. In 2008, AngloGold
Ashanti started a project to create „model‟ SSM on its concession in the DRC. These mines will
process gold tailings, using trained manual labour and mercury reduction/elimination methods.
In Tanzania, an LSM company is working with local government officials and community
representatives at the Geita mine in an attempt to identify property which is appropriate to ASM
and to promote registration by ASM operators in terms of relevant legislation. In 2008, Barrick
Gold Tanzania Ltd invested $2.5m to establish and fund an initiative in support of ASM. Under
the initiative, small-scale miners will receive support such as registration of cooperative societies,
land acquisition, training and skill-imparting. Other supports include identifying and sourcing of
mining technology as well as sourcing for sustained funding of the intitiave.
VI.1.2. LSM’s Assistance to ASM
Areas in which larger mines could be of assistance to ASM include:
Mediation between artisanal miners and government and/or assistance programs;
Providing training and technical advice;
Sharing geological information;
Occupational health and work safety;
Helping to set up or sponsor small-scale central processing plants;
Buying services, tools and equipment from the local community;
Assistance in the purchase and storage of explosives;
Providing custom milling services and workshop facilities;
Buying and treating tailings (directly, not through intermediaries);
Artisanal and Small-Scale Mining Page 23
Releasing land that is suboptimal for large-scale mining;and,
Providing emergency assistance and mine rescue.
But how much further does the responsibility of a large mining company towards ASM go?
Releasing mineral rights is one thing; providing material support and assuming some kind of
overall responsibility is another. While private companies are not expected to support informal
sector activities, they generally have a role in communities in developing countries that goes
beyond that of employer. Assisting ASM could be a valuable part of this activity.
Close collaboration between the two sectors will be good for mining, good for the company
concerned, good for small-scale and artisanal miners and the local community. When artisanal
miners are not taken into consideration within the general context of a mining project, the
project with all its investment may have problems of conflict, inter alia, during the development of
its activities. Moreover, governments will find it difficult to tackle the problems of ASM including
labour and social issues, without the technical, logistical and financial support of the mining
industry.
There are many cultural, procedural and political challenges to companies opening their doors to
small-scale mining. These include: avoiding an influx of small-scale miners and people looking for
work in the large mine who might turn to small-scale mining; ensuring that sufficient resources
exist to enable small-scale mining to continue for an agreed period (possibly for the life of the
large mine); and getting government agencies to accept and meet their responsibilities towards
the community.
In developing successful partnerships with small-scale and artisanal miners and their community
it is important that the company communicates its needs in a non-threatening way, at the same
time learning the community's needs and trying to incorporate them into the company's strategy
for development and operation. A mining company has to understand how artisanal mining
functions in aspects such as, technical, socio-economic, cultural, and spiritual. The mining
company should respect the interests and affairs of the artisanal miners by creating an
atmosphere of “partnership”.
A mining company should create an honest atmosphere with the ASM sector, one of real
expectations through an open informative policy that is appropriate and real. The artisanal miners
must understand that a mining company cannot solve all their problems.
The company should start the dialog and the process of consultation, coordination, information
and agreements with the artisanal miners as early as possible, preferably during the exploration
phase. Artisanal miners should be actively involved in the exploration phase. Consultations
should be made, not only with the artisanal miner‟s leaders, but also with the other members.
If the artisanal miners are composed of indigenous groups with some mining tradition, they will
require a much more sensitive treatment. Frequently, indigenous groups have a different
understanding of the law, or have their own laws that are not always compatible with
Artisanal and Small-Scale Mining Page 24
Government laws, particularly with respect to natural resources. The company must take into
account this reality and search for routes of understanding.
VII. POLICY AND LEGAL ISSUES
ASM takes place illegally in many countries but the nature of lawbreaking and the reasons for it
vary. Sometimes there is no land available for small-scale mining -- it has all been allocated to
large companies for prospecting or exploration. Sometimes the regulations are so complex that
small-scale miners are dissuaded from attempting to adhere to them. Moreover, the widespread
lack of institutional capacity to implement small-scale mining regulations means that the chances
of being caught and sanctioned are slim.
Whatever the reasons, illegal small-scale mining is accompanied by considerable economic losses,
and there is no possibility of using official means to improve working conditions and
occupational health and safety so long the activity itself remains illegal.
VII.1. The difficulties faced by ASM to operate in the legal domain
Failure to take into account the dynamics of ASM communities may lead to the implementation
of inappropriate legislation and industry support schemes. The „user unfriendliness‟ of the
sector's legislation has been put forward by the ILO (1999). For instance, in the case of
Zimbabwe9, the main government initiatives undertaken to manage small-scale gold mining in
recent years have proved counterproductive, and a drastic policy overhaul may be needed to
ensure that operators are supported effectively.
The difficulties faced by ASM to enter the legal domain include:
Obtaining titles;
Security of tenure;
Obtaining licences to prospect and mine and their short duration;
Problems with the regulations that may be inappropriate for small-scale mining because
they tended to favour large mines;
Excessive amounts of centralized government;
Demanding bureaucratic requirements and institutional delays in licensing systems;
Lack knowledge of legal requirements.
Where communities have traditionally operated outside of the formal sector, they may also be
reluctant to be legalised, particularly where there are no obvious incentives to do so and where
legalisation involves paying taxes that they would otherwise not pay. A lack of capacity on the
9 Resource policies and small-scale gold mining in Zimbabwe, Samuel J. Spiegel, January 2008
Artisanal and Small-Scale Mining Page 25
part of governments to enforce penalties and to provide the benefits, which should be associated
with legalisation, acts as a further disincentive to miners to be legalised.
There is a danger that, in working to attract large, foreign mining investment, governments
framing ASM legislation will focus on how best to confine small-scale mining rather than
encourage it. Sometimes the regulations serve to suppress ASM rather than promoting it as a
sustainable, profitable entrepreneurial activity that can provide significant employment in rural
areas. So the only way forward is down an illegal path. The tension between large and small
operations will also have a severe long-term negative impact if large mining companies are
deterred from investing because of the extent of illegal ASM. Governments must therefore find
the right balance. Hence there is a need to decide at the outset whether the objective of
legislation is to control or confine ASM, particularly with respect to large mining operations, or
whether it is to enable the sector to flourish as a viable entrepreneurial economic activity.
VII.2. Improving the regulatory environment
What are the problems faced by the governments in developing policies and laws that would
enable ASM to operate in the legal way and make a tangible, recognized contribution to
economic development?
In order to obtain a sustainable development of the sector, which contributes to the rural
development and which is integrated into the formal economy of the country the governments
need to adopt a regulatory framework that is sound and appropiate.
The regulatory mechanisms should be objective, consistent, transparent and non-discriminatory,
which offer easy access to mining titles and legal production. This includes good governance by
an administrative procedure following transparent, clear and fixed rules. The government‟s role in
the ASM sector should be linked to normative and control issues.
Policies addressing the ASM sector should focus on management of the exploitation of the
national mineral resources in a socially acceptable, environmentally sound and sustainable manner
, the promotion of investment into the sector the licensing the mining titles and the promotion of
the legalization and normalization of the ASM operations
Recommendations for improving the regulatory environment:
i. specific legislation is needed for small-scale mining, developed in consultation with all
concerned;
ii. policies should take in account ASM special needs;
iii. legislation must be motivational for ASM to operate in the legal domain;
iv. legislation should facilitate the requirements for obtaining permits and not be restrictive;
v. legislation should cover occupational safety and health and environmental matters;
vi. control over all aspects of small-scale mining should be vested in a single, well-resourced
agency that would act to facilitate small-scale mining as well as regulating it;
Artisanal and Small-Scale Mining Page 26
vii. local or decentralised governments should have more authority;
viii. legal texts need to be accessible to the miners;
ix. loan and credit systems should be carefully studied not to impoverish miners further; and,
x. tax concessions or forgoing royalties for a limited time and foreign investment should be
used as appropriate to encourage the development and expansion of small-scale mining.
i. Specific ASM legislation
Some African countries have ASM specific legislation and countries. Others the national mining
law applies to all mines regardless of size. Some aspects of small-scale mining, notably labour and
social concerns such as occupational safety and health, employment and working conditions, and
environment, tend to be covered by other, broader legislation, often that dealing with small
businesses.
Many countries now have new mining legal frameworks designed to regulate the sector, improve
its economic and development potential, and to attract new investors by increasing their
confidence that there is a transparent and legal framework within which they can operate. Often
however, mining legislation is drafted and adopted with the needs and potential of LSM as the
focus, and ASM given merely brief and inadequate reference. In South Africa, ASM is regulated
by the same legislation (i.e. for the environment, labour, mineral rights, exploration and mining
permitting and skills development) as LSM. Specific legislation dealing with ASM‟s special needs
is needed, developed in consultation with all concerned.
ii. Understanding ASM’s needs
Insufficient knowledge on artisanal mining populations and of areas suitable for their activities,
tends to affect government‟s ability to regularize, improve and organize the sector. ASM
regulations must not be disconnected from the realities on the ground.
Legislation need to be achievable within some realistic time frame. In cases where there is much
to achieve between the ideal of the law and the challenges of reality, governments should
propose, develop, consult and agree a timetable and a series of viable steps towards achievement
of the law.
There is also the problem of the cost of compliance with the law. Artisanal miners are usually
extremely poor. SSM operations are often struggling to survive in a competitive market.
Regulatory instruments which are not sensitive to these constraints and which establish
prohibitive tariffs for licences can create barriers to entry into the legal ASM system and may
result in ASM remaining outside the law.
Formal legislation shouldn‟t be in contradiction with traditional and local management structures
and norms. This creates a further layer of complexity and confusion within which illegal activity
can occur and proliferate. Traditional land rights and control mechanisms are often better known
Artisanal and Small-Scale Mining Page 27
and more widely implemented in ASM areas that modern laws and this is an area where
community consultation and engagement is essential if legislation is to be effective.
iii. Incentives for ASM to operate in the legal domain
Legislation must be motivational and rewarding as well as regulatory and punitive, if it is to
impact positively on ASM. There is a need for incentives for ASM communities to operate within
the legal domain otherwise legislation can actually push more people into illegal activity. For
instance, excessive amounts of centralized government, bureaucratic requirements and
institutional delays in licensing systems may contribute significantly to the illegality of ASM
workers.
If a requirement to obtain a mining licence is financial and technical ability then the government
should try to provide services to develop these skills. The mine operators will be motivated to
legalize their activities and the mines are more likely to be successful, improving the returns and
benefits to all.
Box 1: The Diamond Areas Community Development Fund
In 2001, the Sierra Leone government established the Diamond Areas Community
Development Fund (DACDF). The government approved the allocation of 25% of revenue
accruing from Diamond export taxes to a fund for the development of diamond mining
communities. By the end of 2004, 54 chiefdoms with a combined 2313 licenses had benefited
from the fund. A total of nearly 1 923 00 USD has been paid out to mining chiefdoms by the
government10 in 2006. The fund was considered as an incentive for both miners and chiefdoms
to engage in legal diamond mining activities and revenue reporting. Since the fund was initiated
an unprecedented amount of diamond revenues has been returned to diamond mining
communities.
The fund targets those chiefdoms where diamond mining takes place. The government in 2001,
sought to establish a set of criteria for the designation of the chiefs: proposals about how the
fund were to be used, with clear project aims and objectives, were to be submitted before the
fund was disbursed. Chiefdoms benefit according to the number of diamond mining licenses
issued and the value of legal exports overall. No official rule was made about how DACDF
funds were to be used by chiefdoms, but it was generally understood that they would go to
projects that would enhance social and economic development in diamond mining communities.
Funds disbursed are earmarked for specific community development projects, priority was
placed in the funding of community infrastructure (schools, health centres, markets, roads etc),
community agriculture, and vocational skills training centres.
In addition to providing valuable resources for social and economic development, the fund is
suppose to encourage chiefdoms to monitor mining more effectively and to eradicate illegal
10 Diamond Industry Annual Review, 2006
Artisanal and Small-Scale Mining Page 28
activities.
The disbursement of funds, however, and community capacity to implement and monitor
projects, has provoked controversy, concerns of the misuse of the DACDF continue to be
raised. While many chiefdoms have demonstrated the capacity to use the fund effectively, it is
also evident that many have not. It should however be noted that the introduction of the
DACDF in 2001 has changed to some extent Sierra Leone‟s diamond mining.
iv. Restrictive provisions
Restrictive provisions, both technical and administrative (such as short-term permits, and lack of
security of tenure), constrain development, trapping small-scale mining in a suboptimal state, or
they encourage illegal mining.
Engulfing small-scale mining with many regulations and short-term, non-negotiable permits
makes expansion difficult, credit virtually impossible to obtain, and consideration of
environmental impact most unlikely.
Legislation should include simple, transparent processes for the granting and transfer of permits
and for ensuring security of tenure.
v. Addressing environmental, labour and social issues
Legalisation should also help to ensure that the negative social and environmental effects of the
sector are better managed and will enable governments to capture more of the revenues from the
sector.
For the most part ASM legislation focuses on permits, taxes, marketing and, sometimes,
environmental management. While small-scale mining legislation rarely addresses labour and
social issues directly, the very fact of improving the framework under which small-scale mining
operates, increasing monitoring and control, and providing technical and legal advice to small-
scale miners, will lead to greater prosperity and so to better working and living conditions for
those involved.
vi. Local government
ASM may offer a practical means to delegate resource regulation authority and royalty
management to local government and communities from whence the minerals are sourced.
The decentralization of the mining sector administration may be a tool to guarantee proximity. In
order to integrate the ASM sector development further into the rural development and to avoid
Artisanal and Small-Scale Mining Page 29
conflicting interests, the mining authorities are advised to coordinate activities with the local
administrations and communities.
Where legislation has enabled monitoring and control of ASM to be decentralized to local
authorities or to local mining inspectorates, it has been effective in targeting local issues, such as
environmental degradation, occupational health and illegal migration in border areas. In cases
where the local authorities have been able to collect royalties, they have a clear incentive to
control and foster small-scale mining.
In Madagascar, in a local commune Antanimbary, was carried out a pilot project to test the
benefits of decentralisation. The project included the local authorities, artisanal miners and
traders and involved training, formalising ASM sites, recording transactions, and disseminating
information. The results included increased transparency in mineral trading, development of
social infrastructure with the revenues received and better working condition for the ASM
communities.11
vii. Dissemination of the law
Dissemination of the law is also essential. In many ASM communities, the miners know neither
their rights, nor their responsibilities.
Legal texts need to be made accessible, both physically and intellectually in order for ASM
workers to understand the constraints and opportunities of the specific context in which they
operate. The legal texts should be translated into local dominant languages.
viii. Question of loans and credit
There is a risk of impoverishing miners further if unpaid packages lead to accumulating excessive
debt and if careful planning in mine development is not appropriately encouraged during the
lending process. Microfinance for ASM should be developed but only if monitored carefully as
most miners could benefit greatly from investment assistance.
ix. Taxation of ASM
There is a real potential for ASM to contribute to the national treasury. There are examples of
heavy, legal, tax burdens being imposed on ASM operators and traders. In Zambia, the Emerald
and Semi-Precious Stones Association of Zambia (ESMAZ) report that they pay area charges per
hectare of land, property taxes, mineral royalty tax, deemed turnover tax, company tax as well as
11 Green (2006) « Appui à la Gestion Décentralisée des Ressources Minérales de la Commune Rurale
d’Antanimbary-Maevatanana », CASM 6th Annual Conference Madagascar
Artisanal and Small-Scale Mining Page 30
the Value-Added tax (VAT) for most of their purchases when most of the large copper mining
companies as well as some of the larger emerald mine operators are exempted from some these.12
In order to be effective, tax systems on ASM work and products must be practical and affordable
in relation to ASM income; supported by a viable and official collection system which issues
verifiable receipts and can withstand corruption; known to the ASM communities to reduce their
vulnerability to exploitation through illegal taxes; and supported by a system of redress and
appropriate legal instruments which protect all parties.
VII.3. Law enforcement
A country can have the best mining legislation and regulations possible, but if these are not
enforced then the ASM sector will not contribute to improving the lives of the population or the
economy.
VII.3.1. Challenges in implementing mining regulations
Transforming policy into practice is a serious challenge for ASM. The implementation of ASM
regulations requires significant investment in, and support for, government capacity within the
sector. Law enforcement in ASM can result in violent clashes between the miners and the public
security forces. Government capacity for constructive law enforcement in relation to ASM, the
institutional capacity, financial and human resources to oversee the sector is often lacking. ASM
inspectorates or regulatory agencies which have the mandate to, capacity and resources to assess
the legal status of an operation and to make practical, feasible steps towards legality can help to
move ASM into the legal framework without the risk of conflict or violence.
There is also a real need for penalties to be appropriate if they are to be a realistic deterrent. It
shouldn‟t be far beyond the means of ASM workers that the penalty is simply ignored. Different
aspects of ASM (including occupational health, safety, employment, environment, community
health, education, migration, labour, finance) are often the responsibility of separate government
agencies, but in practice it usually falls to overstretched, inadequately funded and poorly staffed
mines inspectorates to oversee small-scale mining operations. Notwithstanding the broad roles
assigned to the inspectorates, many are unable to do more than collate returns from the small-
scale mines that lodge them and verify production and royalty payments. Sometimes they can
make sporadic visits to nearby small-scale mining sites, but often the lack of vehicles or fuel
precludes inspectors from leaving their offices to make mine visits. This limited activity is not
surprising in the light of the general lack of resources in many mines inspectorates in developing
countries, made worse when much small-scale mining is outside the law anyway and will stay
there until the inspectorate is in a position to make a difference.
12 Lungu, John & Shikwe, Adrain (2007) Corporate Social Responsibility Practices in Small-Scale practices on the
Copperbelt
Artisanal and Small-Scale Mining Page 31
VII.3.2. Establishment of an efficient monitoring body
To ensure the compliance with the law, many mines inspectorates will need to be expanded and
decentralized if efforts to legalize small-scale mining are to pay off in terms of increased
production, productivity, investment, employment and income. Several countries have dedicated
ASM services within the Ministry of Mines. In 2008, a Ministerial Department for ASM has been
created within the Ministry of Mines. In the DRC, a similar structure is the Service d’Assistance et
Encadrement d’Artisan et Small-Scale Mining, SAESSCAM.
Box 2: SAESSCAM in the DRC
SAESSCAM (service d‟assistance et d‟encadrement du small-scale mining) is the Congolese
state‟s technical service for the formalisation of the ASM sector. SAESSCAM also serves an
extension service provider to the sector, providing assistance in law awareness, training in
mining techniques, cooperative formation, health and safety advice, social services and
numerous other tasks. In 2007, SAESSCAM has been allocated a budget of 5 million USD and
is in the process of reaching minimum operational capacity in a number of strategic areas. In
theory, a SAESSCAM representative is to oversee the trading chain and record keeping at ASM
site. SAESSCAM operates a number of antenna offices in mining regions. A Belgium donor
programme is planning a support project for SAESSCAM.13
The establishment of such a body (mine inspectorates or regulatory agencies) is the first step to
an effective implementation. The agency must have a clear legal remit, simply stated and enacted.
Its duties should include the monitoring and control of mining operations and the provision of
advice and training to ASM owners and workers (at mines and in workshops at suitable
locations). The body should have public acceptance: the role, responsibilities and limitations of
the agency must be known to the community and ASM operators, and there must be visible
benefit seen from their presence.
The agents need to have the technical skills to carry out their work in an effective manner. The
agency must have professional, motivated staff with a commitment to achieving the agency‟s
mission. This is often extremely difficult to achieve as government staff are often moved between
departments with little consideration for their core skills, incentives are poor, and typically
government salaries are low and uncompetitive in comparison to the private sector. The agency
needs to have the physical and financial resources to adequately cover the territory for which it is
responsible.
13 Overview on donor activities in the SSM sector in DRC.
Artisanal and Small-Scale Mining Page 32
More, better paid, independent inspectors with better training, more offices in mining regions
and more equipment are necessary if regular visits to small-scale mines are to be feasible and their
statutory duties discharged.
VIII. LEGAL AND TRANSFERABLE RIGHTS
Legal and transferable rights are essential to organize and transform this informal industry: the
right to mine, the right to land title, and the right to minerals. A formal title can give minerals
transferable capital against which micro loans can be financed. Property rights are the basis of
poverty alleviation, serving as the first step towards turning miners‟ assets into capital.
VIII.1. Informal land rights
ASM may be carried out on traditional lands where tenure is recognized informally by simple
occupation of the land, or through a system of rents paid to local chiefs or others who historically
control the land. However, as external investment in industrial mining has increased, and
formalization of mining legislation and concession rights has occurred across Africa, the land
available under such informal or traditional systems has dwindled.
The unavailability of land for ASM acquisition is largely a result of the majority of concessions
being leased out to LSM companies. In some countries, mineral rights are non-transferable which
prevents the reassignment of sections awarded to LSM companies that prove unfeasible to work
but are at the same time, suitable for SSM. Resource and land rights are increasingly being sold
to LSM companies who typically have sole mining rights on the concession. Most legislation
dictates that ASM is excluded from industrial concessions and therefore the workers sometimes
turn to illegal activity in desperation.
This exclusion coupled with the lack of alternative sites or resource-access mechanisms, mean
that artisanal miners who live in proximity to LSM may choose to occupy LSM sites, and this is
one of the key reasons that ASM is carried out illegally. Even when ASM is recognized as a legal
activity in national legislation, the provisions to enable ASM to operate within the law are weak.
VIII.2. Formal property rights
Formal property rights are the basis of a miner‟s access to legal redress when rights are violated
by government or company. Without a system of rights, there is little to prevent a state or
corporation from unilaterally evicting miners.
Lack of legal access to high-quality and mineable resources and associated security of tenure
means that ASM workers cannot generate adequate income or use those mineral rights as security
for funding or to enter joint ventures with partners capable of improving their resource use and
Artisanal and Small-Scale Mining Page 33
return. As stated by the World Bank „no real solutions will be possible unless artisanal miners are
given full legal and transferable mining titles to their claim‟14.
VIII.3. Allocated ASM areas
Given the importance of the issue of land and resource access and rights, some governments
have taken steps to set aside land for ASM:
The government of Zambia has set aside plots for emerald ASM operators, however the
ASM communities report that same plots are too small and the minerals are too deep.
In 2007/08, the government of Tanzania has set aside 295,000ha for SSM throughout the
country however this is tiny compared to the demand and only some areas have actually
been assigned.
In 2007/08 the government of the DRC identified six copper and cobalt concessions
belonging to the state-owned enterprise, Gecamines, for transformation into Artisanal
mining zones however these sites are marginal with no accompanying technical or
financial resources for effective mine development or management.
Since 2007, the government of Mozambique has set up 58 legal areas for gold and gem
ASM activities.
The creation of areas to be owned and managed by ASM communities or groups is challenging.
Leaving aside the issues of technological evaluation, management and accountability, creating an
ASM area is not just a matter of allocating commercially marginal land which may or may not
have adequate and accessible resources, but rather of ensuring that the supporting elements of
land ownership, tenure, and legal status are in place. The designation of ASM areas should be
accompanied by geological mapping and mineral inventory.
Even where provision is made for ASMs lands to be allocated, security of tenure can be weak.
The DRC Mining Code for example, supports the creation of ASM zones but „ If a new deposit
which does not lend itself to artisanal mining has just been discovered… The minister proceeds
to close the artisanal mining area…The artisanal miners are oblige to free the artisanal mining
area within 60 days. The group of artisanal miners concerned have a priority right to request a
Licence for a industrial exploitation or SSM within 30 days.‟
Few countries have genuine capacity within their government bidy tasked with the allocation of
mineral rights to focus on the specific needs of ASM. Fewer still have mechanisms whereby there
can be public consultation and local involvement in the activities of the Mining Registry or
Cadastre.
IX. ACCESS TO FINANCE AND CREDIT
14 ILO, 1999
Artisanal and Small-Scale Mining Page 34
Access to credit is an obstacle to successful development of the sector. On its own improving the
formal property rights system process cannot bring miners out of poverty; there still has to be
tangible assistance in which miners can rely. The lack of capital is an obstacle to mechanization
and improving efficiency. These in turn lead to low productivity, low revenues and, where they
are paid, low wages. As a result, miners tend to ignore health, safety and environmental measures.
Most of the small enterprises would like to semi-mechanize and to upgrade production capacities
or to develop new reserves. All the mentioned measures require investment capital. Generally the
ASM sector tends to demand better access to financing. But in practice, access to credits and
formal banking is difficult for ASM miners, and they face serious problems dealing with formal
financing.
IX.1. Constraints on obtaining credit
Access to finance is essential to enable the formalization, improved production, and
strengthening of ASM. However such finance is difficult to obtain for the sector.
Artisanal miners typically present a suite of factors which make them unattractive to lenders:
they tend to be already in debt;
they are frequently migratory and ensuring potential repayment of credit is difficult;
they generally have few if any assets that banks and other lending institutions will accept
as collateral;
they rarely have the capacity or expertise to be able to present a viable business plan for
why they need the credit or how it will be effectively used;
ASM is rarely well reported statistically and therefore does not allow for risk analysis by
creditors; and
There is only few of lending institutions that provide this type of credit or support for
ASM.
If any financing institution is willing to deal with the artisanal and small-scale miners, generally
the interest rates have to be rather high. This has negative drawbacks on the viability of the
projects. Given these constraints, artisanal miners usually resort to the most accessible local
source of funds, namely pre-financing by traders, which further compounds the problems of debt
as these loans may demand high rates of interest and sale of the product to the trader at a sub-
optimal price for the miner.
Even when mining rights exist, banks are usually not prepared to take them as collateral because
of the geological risk of unmined reserves, the mobility of many small-scale and artisanal miners
and the widespread lack of enforcement of laws and regulations. Therefore, miners find
themselves caught in a vicious circle:
Artisanal and Small-Scale Mining Page 35
Since even a modest investment in tools and equipment can improve productivity and resource
utilization and result in more revenue to all concerned, it is in everyone's interest to break this
circle, create self-sustaining financing mechanisms and provide access to credit for artisanal and
small-scale miners.
IX.2. Improve Finance Systems
Obstacles to obtaining formal credit can be overcome if governments recognize mining claims
and issue mining rights that can be freely traded, sold or pledged as collateral.
Alternatives to direct finance can also be used. The financing of ASM projects should be tailor-
made and consider, instead of regular credits, financing through leasing of equipment; own
capital resources; joint ventures and equity participation.
A recommendation made in Tanzania for practical steps to support ASM was that equipment
should be made available on a hire-purchase basis (particularly for identification, cleaning and
cutting gems). This has been advocated and tested in countries like Ghana, Burkina Faso and
Mozambique however success has been limited.
Equipment leasing schemes are a technical initiative that has become increasingly popular in the
last few years: “equipment is made available on a cash sale or loan basis [to miners], and is
manufactured in collaboration with local fabricators”15.
The Ghanaian government has set up a revolving fund and lent 2.23 billion cedis to small-scale
miners in Talensi Nabdam district in the upper east region “aimed at increasing the production of
15 UNECA, 2002, p. 29
Artisanal and Small-Scale Mining Page 36
gold and diamond”16. Whilst such schemes do give artisanal miners rare access to credit, the
quality of the lent equipment may be substandard or inappropriate for the tasks required.
For this reason, the equipments must have guarantees or warrantees.
Training in savings and financial management should be a precursor to any projects which
ultimately aim to provide credit to artisanal miners.
ASM communities frequently have a significant amount of potential capital moving through the
system; however this is widely dispersed and tends to be spent on short terms needs, either for
survival or for luxury items which relieve the tedium of the work. If artisanal miners are given
support to recognize, save and harness the financial resources that already exist within their
communities this can be an important step towards increase economic viability.
In June 2008, the Nigerian Ministry of Mines and Steel Development establish a $10m facility to
assist artisanal miners with funding from International Development Finance, a subsidiary of the
World Bank. The fund will be used to formalize ASM, encourage the formation of cooperatives,
and to provide training and access to finance with a significant programme to provide ASM
development grants.
For the credit financing should be taken into account:
• Finance means not only credit, but also savings. Self-financing or savings should be included
into the finance program.
• Significant outreach, or a high number of clients, is important for achieving development
impact, as well as for making the program economically viable through economies of scale.
• Subsidies to ASM should not be given in the form of a subsidized loan, but in form of training
or other technical support.
• Regular control and supervision of the financial institution as well as guidance is required.
Eventually, a credit scheme should not be instrumentalised for the one-time delivery of
equipment, but focus on financing a business over a long period.
• The compliance of the environmental legislation
• The possession of an environmental operation license
• The registration of the company at the mining authority or other fiscal authorities
• The payment of taxes (royalties, company taxes etc.)
16 Ghana Districts, 2007b
Artisanal and Small-Scale Mining Page 37
• The enrolment of the staff at the national social security system as well as
• The legal exportation of the products (export license, export tax etc.)
X. MARKET ACCESS AND CERTIFICATION
In considering how to improve ASM market access it is necessary to first understand how ASM
actors currently access their markets, the different problems they face and then to look at if and
how this can be improved.
X.1. Reasons for illicit marketing
X.1.1. Smuggling, Money Laundry and Guerrilla Activities
Illicit marketing is primarily the result of inadequate government policies. In countries where
commercialization is not based on free market mechanisms and where sales are not transparent,
smuggling is usually the first choice for miners and, or merchants, and much of the benefits to
the government are lost.
Nevertheless it has to be pointed out, that smuggling or illegal trading usually happens with some
adjacent country where market conditions are more. Decades of diamond smuggling in Sierra
Leone have contributed to the corruption of the government, deprived the country of millions of
dollars in development revenue and fostered political instability more broadly within the West
African sub-region.
Especially artisanal gold and gemstone mining are frequently and involuntarily used as a vehicle
for money laundering or financing guerrilla activities. A common practice of money laundering is
to buy gold from informal artisanal small-scale miners with “narcodollars” and to declare it as
part of the production of a formal mine. Again it has to be pointed out, that not the artisanal
miners, but the product of their activity are the subject of these illegal practices.
The usually existing links between money laundering, guerrilla activities and civil wars (“blood
diamonds”) cause in some countries the complete “outing” of ASM, an effect that contributes to
maintain the system, forcing the miners into the illegal and informal status.
X.1.2. Intermediate traders
Emphasis has to be made that smuggling usually is not performed by the artisanal small-scale
miners themselves, but by intermediate or major illegal traders. Artisanal miners are frequently in
an established relationship with their most immediate trader. Traders provide debt financing to
artisanal miners to pay for the costs associated with mining; These may include equipment, site
access fees, taxes to local authorities and others including security services, transport costs,
transfers to other mines, and subsistence during periods of mining when there is no income. In
return, the trader expects to have preferential offers and a discounted price on the minerals, as
well as, in some cases, payment of interests.
Artisanal and Small-Scale Mining Page 38
The relationship can lead to significant debts which, at their most extreme, may be manifest as
bonded labour and may even be passed on to subsequent generations. Whilst this relationship
may be exploitative and illegal, it is often the only option available to miners to survive. This may
also be a long-standing tradition and relationship which is difficult to change. It is often assumed
that supporters and middlemen are the problem and should be eradicated. In Sierra Leone,
diggers have been found to be reluctant to abandon their relationships their intermediate traders
who provide occasional but very important financial or political assistance in times of trouble.
X.2. Better markets for ASM products
It is important to note that marketing chains have often developed and evolved over years to
adapt to the particular conditions and constraints of their social and economic environment.
They have perfected their performance by a form of natural selection. The challenge of a
development intervention is to first identify the constraints which may be changed and, second,
to assist the adaptation so that it evolves in a direction which benefits the intended population
groups.
X.2.1. Regional harmonization of policies and practices
One driver for minerals smuggling is the differing levels of export tax amongst countries in any
region mean which encourage minerals to be smuggled to countries with lower fees for export.
Harmonization of export tax is frequently proposed as an important step to reduce such
disparity, however tax harmonization has political and economic complexities including
implications for sovereignty and potential loss of revenue for specific countries so this is not a
straightforward process.
Other aspects of control also been proposed for harmonization including legal frameworks in
relation to formalizing and regulating the sector. Yet another proposal is to harmonize customs
procedures as well as legal penalties and enforcement mechanisms.
X.2.2. Market access
State-owned enterprises or agents often play a key role as an ASM‟s product buyer. In
Mozambique, the Mineral Development Fund plays a dual role in licensing and regulating ASM,
as well as acting as a buyer, particularly in remote sites where the miners have restricted access to
competitive pricing. In the DRC, the state-owned enterprise for copper, Gecamines, is a key
buyer for ASM product.
A propose study in the DRC by the university of Brussels will look at the potential to create an
ASM „bourse‟ or legal, collective market for ASM products as a clearing-house where lots
produced by artisanal miners could benefit from organized pricing, bargaining power, etc.
There are important domestic markets for some ASM products, notably construction materials
(sand, gravel, stone, etc.). For minerals destined for the export market, depending on the mineral,
the number of export traders may be quite small.
Artisanal and Small-Scale Mining Page 39
X.2.3. Fair Traded ASM Products
The mining of gold and precious stones throughout the world today is noticeably characterized
by high social and ecological costs. Anyone who buys jewellery today can no longer be sure that
the purchase made does not in some way either support child labour or slave-like working
conditions in a struggling developing country, or even contributes to financing a war. This
situation has been seen as a challenge for certain ASM operations.
Aroused by the need for a reaction against these prevailing conditions, a number of small-scale
mining experts, gem specialists and goldsmiths have formed an initiative, which, under the
patronage of the Fair Trade e.V. (a German based NGO) and with local NGO participation, has
set out to establish the practice of fair-trading in business dealings associated with precious
metals and gems. By using the principles of fair-trading, small-scale producers in developing
countries are to be given the opportunity of trading their products under better selling terms and
conditions. The prerequisites and criteria for fair trade with small-scale mining products have
been worked out and are strict, and these include the following aspects the operation has to fulfill
to be eligible: candidates are to be legally constituted small-scale producers operating within a
democratically organized trade framework (e.g. in the form of a cooperative society or association
etc.), their approach to mining is to reflect a responsible attitude towards the environment, a
social conscience and commitment to ILO conventions including child labour in regard to the
welfare of workers and their families.
These artisanal and small-scale producers can profit from fair trade in two ways:
1. By improving the selling conditions for the raw-products, wherever possible through direct
sale to the end-user and therefore excluding any unnecessary intermediary transactions by
middlemen.
2. By the producers' participation (the mining people and workers engaged in mining processing)
in the profits margin achieved from the market value of the products .
The miners have to invest the additional payments in improving their social and environmental
performance. These investments should support the miners to overcome the grip of poverty and
the difficult social conditions with which they have to cope.
Box 3: Fair Trade: a “solution” to ASM-related poverty in sub-Saharan Africa?
The impetus for exploring avenues for launching a Fair Trade gold campaign has emerged from the success of parallel campaigns in other
smallholder-dominated sectors. Indeed, the successes of the Fair Trade movement are well documented. Annually, the Fair Trade of agricultural
products, including coffee, tea and cocoa, generates between US$400 and US$600 million in sales.
However, the historical dynamism of the Fair Trade network has occasioned not only
“successes” but also has been accused of failing the small-scale producers that it aims to help.
The markets of some (well-established) agricultural products, such as Fair Trade coffee in
Artisanal and Small-Scale Mining Page 40
Europe, have reached a ceiling limit that threatens to prevent small-scale farmers from either
entering the Fair Trade markets or, in the case of existing groups, from being guaranteed a Fair
Trade buyer. Such a situation could well arise with regards to Fair Trade gold (and expansion
into other commodities) without accurate forecasting of future markets for ethical gold.
Demand for ethical gold (and jewellery more generally) from consumers located in the global
north does engage with the need for product diversification away from Fair Trade's traditional
reliance on agro-exports (Murray et al., 2003, p. 26).
However, this may instead precipitate a geographical shift in demand for Fair Trade gold away
from domestic markets in gold producing countries and create a dependency upon Northern
consumers‟ demand for the product. The potential for destabilising effects on rural livelihoods
created by such dependency is best evidenced by the historical effects seen in global (and Fair
Trade) coffee markets.
The transient nature of ASM is problematic: gold is extracted from sites over a finite period of
time before a community moves on. This, in turn, may impact upon the way in which
development initiatives, derived from Fair Trade premiums, are initiated because there is no
long-term, sustainable community which it can be aimed at.
The Fair Trade network's interest in ASM points to a desire to address all of the different
documented forms of poverty that mark the industry. Indeed, there is as much attention given
to an amelioration of health conditions for small-scale miners and a reduction in the
environmental impact of their activities as there is towards ensuring a better price for their gold.
There remains considerable speculation, however, as to whether Fair Trade can or should be
applied to ASM. Little is known about the working groups being targeted and, most
importantly, the potential obstacles impeding the launch of such a project.
Source:17
X.3. Certification
When considering how best to improve the livelihoods of artisanal miners and ASM workers,
certification is often proposed as a means to guarantee improved living, work and trading
conditions. Certification provides third party assessment and guarantee that a particular product,
production method or supply chain conforms to a given set of social, environmental, political,
economic or ethical criteria. Certification is a means by which buyers can seek to ensure that the
17
Reforming small-scale mining in sub-Saharan Africa: Political and ideological challenges to a Fair Trade gold
initiative
Artisanal and Small-Scale Mining Page 41
products that they purchase are produced and traded in accordance with these criteria. There are
two types of minerals certification: certification of origin and certification of ethical quality.
Certification of origin is used to assure buyers that the minerals do not originate from places
where they may have been implicated in war or human rights abuses.
Certification of ethical quality assures buyers that the minerals have been mined, processed, and
traded in ways that do not compromise defined ethical standards.
X.3.1. Setting of criteria
Before certification enters into any ASM policy or planning, it is essential to be sure that this is an
appropriate intervention. Assurance as to a product‟s provenance or pedigree can be provided by
government through legal instruments, by companies through their trading and corporate social
responsibility standards, and through voluntary standard-setting by multi-stakeholder groups such
as certification bodies.
One of the key challenges in creating useful certification systems is the setting of the criteria by
which ASM operations can obtain their licence. Existing criteria under which certification
systems operate include:
Minerals that are not mined or traded under conditions of war, or to fund conflicts;
Decent work conditions;
Environmental and „green‟ issues;
Mercury free gold treatment;
Child labour free products;
Fair trade where ASM workers receive an improved income; and,
Transparency of revenues and tax payments.
A factor in assessing the success of certification systems is whether or not the producers can
attract a price premium for their certified product. This benefit is frequently promoted by
certification systems, particularly in relation to fair trade. However there are not yet many
examples of this being effective in ASM.
Certification in ASM is still in very early phases and lessons should be learned from other sectors
such as food, textiles etc. where consumer choice and market mechanisms to respond to
purchaser criteria are more developed. However, what is already clear in ASM is that there is a
risk of a proliferation of certification systems which could create confusion in the market as each
looks to gain market recognition and to establish its brand. Synergies, shared objectives,
collaboration and good communications are all essential when designing or selecting certification
systems.
Artisanal and Small-Scale Mining Page 42
X.3.2. Traceability
If illegal transactions are to be eliminated from ASM trade, traceability of materials is an
important element. However, this is extremely difficult in practice as ASM materials may be
produced by workers, often clandestinely, making it progressively more difficult to determine
origin.
Traceability can lead law enforcement agents and inspectors to sites where poor or illegal
practices are used, which in turn could result in fines or prosecution. It facilitates taxation. It
exposes illegal actors and profiteers in the supply chain, thereby disrupting their income.
There must be a clear incentives for the miners and traders to support traceability. For the miners
themselves, any motivation must include the potential for improved income and working
conditions. For legal buyers linked to the formal supply chain, the motivation will be improved
market access and opportunities. For responsible government concerned with national revenues
and economic development, the incentive will be improved tax returns and investment in their
minerals trade.
Box 4: Certified trading chains in mineral production
The concept of certified trading chains (CTC) was raised in the preparatory discussions for the
G8 summit in 2007. The summit protocol stressed the need for action in the ASM sector and
acknowledged the potential of certification systems to implement ethical standards, good
governance and transparency in mineral production.
In this effect a pilot project was carried out in Rwanda to test the feasibility of a certification
system for selected raw materials in artisanal mining. The CTC introduced a concept of
voluntary self-commitment among the partners in the trading chain. The CTC put in place a set
of standards derived from 5 principles: 1. Transparency 2. Relatively good working conditions
and no child labour 3.Protection of human rights 4. Community consultation, contribution to
the local community and gender sensitive approaches 5.protection of the environment
These standards were drafted after mining company audits in Rwanda and were based on
international as well as national instruments. There are five levels of compliance to these
standards.
Through the strengthening and supervising of the mining sector in the country, Rwanda
supports the desire to establish CTC. Companies engaging and working with ASM have
expressed their interest to participate in this certification exercise. By implementing the
exemplary pilot project in Rwanda and launching the next certification exercise in DRC, CTC
aims at enhancing regional stability and peace builing
Source: V. Steinbach, April 2009 : “CTC in Mineral Production Project Outline and
Artisanal and Small-Scale Mining Page 43
Status”, Multi-year expert meeting on commodities and development
X.3.3. The Kimberley Process Certification Scheme (KPCS)
The KPCS is a joint governments, industry and civil society initiative to stem the flow of rough
diamonds used by rebel movements to finance wars against legitimate governments. The KPCS
imposes extensive requirements on its members to enable them to certify shipments of diamonds
as „conflict-free‟.
A review of its functioning and impact was carried out in 2006 after three years of operation18.
The report indicated that the KPCS has been successful in curbing the low in conflict diamonds
down to less than 0.2% of the world‟s total annual production of diamonds by volume.
The KPCS has led the way with its program for certifying the origin and legal international
trading of diamonds. Other initiatives, such as the International Conference for Peace in the
Great Lakes, are considering replicating the process for other minerals, especially for colored gem
stones owing to the implication of these in funding wars, terrorist activities and human rights
abuses in Colombia, Sri Lanka, Pakistan, and Burma
18 Ad hoc Working Group on the review o the KPCS (2006) third year review
Artisanal and Small-Scale Mining Page 44
The KPCS (signed by 80 countries) is a possible way forward in breaking the link between the
legitimate trade in diamonds and uncontrolled violent conflicts.
There is evidence, therefore, of the positive impact of the KPCS in relation to its specific,
focused aim of reducing the trade in conflict diamonds. But this is an exception as there is little
other independent evaluation available to give informed opinion on the impact of other
certification systems. It is postulated that certification is more effective in relation to precious
metals and gemstones which are used in the jewellery business as it is easier to make an emotional
connection to the mineral in this sector, whereas in industrial minerals it is more challenging to
connect the buyer to the market.
However, its success will be short lived if the root causes of the problems associated with this
trade are ignored. Many of these problems revert back to artisanal diamond miners and the
poverty and exploitation they endure. While the KPCS has undoubtedly made significant inroads
in addressing illicit diamond-mining activities and their link to violent conflict, some have pointed
out that the initiative has done relatively little to address the poverty, inequality and desperate
working conditions that small-scale miners must endure on a daily basis. 19
CASM has assisted the Kimberley Process Certification Scheme working group on Alluvial
Diamond Diggers (chaired by Angola) with issues papers and participation in the CASM
network, especially through south-south cooperation between African and South American
members. It has also assisted the Belgian Royal Institute for International Affairs helping this
group get a better understanding of the artisanal mining issues. Through education, policy
dialogue and projects targeted directly to artisanal diamond miners and their communities, the
Diamond Development Initiative (DDI), another forum trying to address these issues is
intending to demonstrate that diamonds can be an asset for economic growth and a catalyst for
individual and community development in conflict affected countries.
XI. ORGANISATIONS AND ASSOCIATIONS OF ASM
Organization is seen as a way of establishing and defending ASM rights. It is a way of accessing
supplies through collective purchase, and to access materials or resources which may be restricted
for individuals, such as explosive. The miners see organization as a means of creating better
trading conditions and, as organizations become more mature, this encompasses certification and
access to international markets. Working in groups can confer significant advantages to ASM
workers in terms of collective action and political leverage, improved productivity and market
access.
The objective of government in organizing ASM is to make the sector more identifiable including
the potential for licensing and census; to improve potential for management and regulation; to
create more effective channels of communication; and to create platforms whereby interventions
19 Silberfein, 2004; Olsson, 2006
Artisanal and Small-Scale Mining Page 45
can be more effectively delivered. Organized ASM is also easier to tax. There is a range of
structures which can be established to improve ASM organization including cooperatives,
associations and unions.
XI.1 ASM Associations
By organizing artisanal miners into associations, technical and financial assistance could be
directed to them and such associations would also benefit to the government as they could also
be partners for controlling the illicit commercialization of mineral resources.
In five major artisanal mines of central Mozambique, miners‟ organizations have been
strengthened and registered as associations. Experience shows that these organizations are
helpful for introducing improved and safer mining techniques. In contrast, in illegal, unregulated
mines, children are often employed and safety is largely neglected. The Mining Development
Fund only gives financial support to registered mining associations The Mining Development
Fundis a government initiative that provides technical and financial support to artisanal miners.
There are considerably more examples of effective associations in the SSM arena than in the
artisanal community. These associations represent the collective business interest of their
members to government and the markets rather than trying to create a shared economic
livelihood model. In Tanzania, the associations have further consolidated their membership and
impact through the creation of umbrella bodies such as the Federation of Mining Associations of
Tanzania (FEDEMA) and the Regional Mining Association (REMA). There are examples of
mineral-specific associations such as the Emerald and Semi Precious Stones mining Association
of Zambia (ESMAZ) which has a membership base of 400 owners of emerald mines. ESMAZ
has carried out workshops for its members on accountability, basic geology and accounts and
book-keeping.
There are also examples of women‟s associations including the Association of Zambian Women
in Mining (AZWIM), South African Women in Mining Association (SAWIMA), the Tanzania
Women Miners Association (TAWOMA).
XI.2. ASM cooperatives
The ILO defines a cooperative as an „autonomous association of persons united voluntarily to
meet their common economic, social and cultural needs and aspirations through jointly owned
and democratically controlled enterprise‟. This is not always the case in ASM cooperatives. Some
groups of artisanal miners form cooperatives in order to comply with the law in countries which
require ASM to be structured, others to access services.
In Mozambique, 61 cooperatives have been established as a part of a pilot project. These groups
are given support by the government on legal issues, technical assistance and training. The nature
of high value, low volume, and portable products such as diamonds or gold may create barriers to
cooperative structures. A single stone may be of significantly higher value than the rest of a day‟s
Artisanal and Small-Scale Mining Page 46
production and the finder may be reluctant to contribute this to the collective income. The
market access and reward opportunities may, therefore, predicate against successful cooperative
structures.
XI.3. Unions and Syndicates
Unions also exist in ASM and are another form of organization which can improve ASM rights
and representative, though these are far less developed and active in Africa than in other parts of
the world. The Mineworkers Union of Zambia is actively trying to sensitize the workers in the
SSM to join unions in order to exercise their right to collective bargaining to have the right of a
living wage.
XII. ALTERNATIVE INCOMES, LIVELIHOODS
Even if ASM is regulated, formalized, given technical support, achieve fair prices and good
market access, in the end this can only be for a period of time. In some cases ASM can exist for
decades, even centuries. But in others, the life of the mine can be extremely short, and ironically
may be even shorter if ASM techniques and access improved.
The number of people working in ASM is vast. Many of them will eventually leave ASM of their
own accord when there are simply no more accessible minerals to mine.
Finding ways to help ASM workers to develop no-mining incomes and livelihoods must be a
fundamental part of any policy that addresses ASM.
XII.1. Constraints to exit ASM
The reasons for most of miners remaining in ASM without looking for other livelihoods include:
Many ASM workers may have been in the sector for a long time and therefore may have
been excluded from education or training opportunities and may have limited skills and
confidence to enter new activities;
Access to finance for ASM is limited for those wanting to leave ASM and to start a new
activity;
Artisanal miners often have debts which have to be paid before they can leave ASM;
High commodity prices can make alternatives less attractive and less competitive; ASM
can still be more lucrative than other sources of income. A study carried out by USAID
in Tanzania found that ASM miners earned on average six times more than the average
wage farm labour;
ASM typically delivers a daily income to miners and others. Other livelihoods such as
agriculture, may involve a long lead-time and investment before returning a profit;
Artisanal and Small-Scale Mining Page 47
Every artisanal miner who has to leave ASM reduces the income of other actors in the
supply chain which can result in disruption of vested interest; artisanal miners may be
pressured into remaining in ASM by traders and others;and,
Some forms of ASM (such as diamond mining) are addictive. The „casino mentality‟
describes artisanal miners‟ believe that they will find a very valuable stone of resource and
creates a gambler‟s commitment to continue mining.
The alternative livelihoods programmes propounded by policy makers have emerged with the
aim of encouraging moves away from mining activity altogether, many of these are unsuccessful.
Some have argued that poorly researched initiatives that have failed to engage with grassroots
communities sufficiently can actually serve to deepen the poverty cycle further rather than
alleviating it20.
Certainly, such projects have failed to reduce the numbers participating in ASM and there is a
suspicion that, while they may appear fashionable, “the reality is that in most cases, the profits
potentially earned from activities such as snail rearing, batik and soap making within the localities
in which they are being promoted are significantly less than those that could be earned in
artisanal mining”21.
XII.2. Promoting alternative livelihoods
Artisanal and small-scale miners can be supported to set up alternative businesses, offered
opportunities within the LSM sector or assisted to develop agricultural skills.
XII.2.1. Enterprise development for ASM workers
Supporting artisanal miners to set up alternative businesses can be a way to support
diversification of livelihoods. This has potential, however there are some basic factors which
must be included in any project or programme to develop (SMMEs).
The first, essential criterion for a successful Small, Micro or Medium Enterprises is
entrepreneurial spirit. Other elements such as business planning access to finance, business
development support, access to markets etc. can all be provided through development
programmes but they will only be successful if the individuals identified have the drive and
enthusiasm to create a business.
Workers who have been employed all their lives in often paternalistic state monopolies may have
little inclination or aptitude for the significant personal investment and energy required to
establish a new business enterprise. It may be more effective to identify key individuals who have
20
Hinton et al., 2003; Banchirigah, 2006
21 Hilson, 2007, pp. 245–246
Artisanal and Small-Scale Mining Page 48
the potential to create business that can generate employment for others and to invest in them,
rather than disperse resources widely and to risk creating a number of highly dependent often
struggling small enterprises.
ASM workers may face significant challenges in relation to literacy, skills, understanding of
financial management and social stigma, so programmes should include and address these basic
issues before introducing the technical elements of capital, training and business development.
Such skills and programmes for diversification do not have to be addressed separately from
programmes that aim to support ASM strengthening. If ASM workers are given the training and
support they need to work more efficiently and more effectively in ASM, they can apply these
skills to diversification as the resource dwindles or other opportunities become apparent.
The project „Market Approaches to livelihood Improvement‟ (MALI) (2003-2005) based in
Katanga, comprises different activities in the fields of agricultural production, micro enterprises
development and finance as well as improving market access. The outcome of the project, among
many others, has been the creation of 300 agriculture and related small and micro enterprises in
SSM communities.
XII.2.2. Opportunities within the LSM sector
The role of LSM in creating alternatives is extremely important. The first and most obvious is in
job creation. As contact usually starts at the exploration stage, artisanal miners can be employed
by prospection teams to provide manual labour, land clearance, camp support, security services
and other activities. These jobs may be temporary or may create further opportunities within the
company during the subsequent stages of mine development and construction, both of which are
labour intensive.
Creating local supply opportunities which can absorb large numbers of ASM workers can be an
important way of creating new livelihood opportunities within the new markets provided by
LSM. LSMs can conduct proper environmental, social issues assessment in order to improve
ASM‟s working conditions.
Another important intervention which can create alternative sources of income of artisanal
miners and other community members is the use of high intensity manual labour on
infrastructure projects such as road construction. This can often be a challenge for LSM
companies as they tend to work on tight timelines and need mechanized approaches to carry out
work quickly to meet their mine development schedule. However road rehabilitation and
maintenance may be an ongoing activity where manual labour is appropriate as the duration of
the project is longer and the deadlines less urgent.
AngloGold Ashanti recognises that many regions in Ghana have no longer the mineral resources
in appropriate forms or quantities to support the number of small-scale miners operating in a
region, in the Obuasi area for instance22. The company is working directly with the communities
22 AngloGold Ashanti’s approach to ASM
Artisanal and Small-Scale Mining Page 49
and development agencies to promote agricultural projects to offer communities economic
opportunities to complement mining.
XII.2.3. Challenges in depending in LSM-based alternatives
But LSM mining is no more sustainable than ASM as the challenge of non-renewability remains,
therefore all interventions that are undertaken need to constantly plan for the impact of mine
closure and emphasize those activities which can survive when the resource is exhausted and the
major economic powerhouse of the area, the mine, is closed.
Another complication that LSM creates is that of magnetic attraction to people in the mining area
, based on the new economic opportunities and social development benefits , which increases
the population, puts pressure on the resident communities and their resources, and draws people
away from other areas and activities which may be inherently more sustainable for the long term.
To counteract this, LSM must work in partnership with government planning to determine how
resources and revenues can be managed to ensure development of other parts of the region
rather than those directly around the mine. This is difficult as the expectations of the immediately
adjacent communities are high.
XII.2.4. Opportunities in agriculture
The relationship between agriculture and ASM is important. ASM often degrades agricultural
land and resources such as water. ASM may attract people away from agriculture and if a „rush‟
occurs at a critical time in the agricultural season, the crops or the year may be destroyed,
abandoned, or consumes by migrants leaving the original community destitute. ASM can attract
the most physically capable away from a village, leaving behind the older, weaker members who
have less capacity to manage their fields.
There is a need for serious effort to go into strengthening agriculture to make it a viable and
attractive alternative for ASM workers. This may have particular viability if a seasonal transition is
used, so that for part of the year ASM is the main income source, and for part of the year it is
agriculture. Of course this will not work if the best season for both coincides.
The challenges of transition can be managed but this requires multi-party input and approaches
to address all the critical elements. Land rights and access, assistance for survival during
transition, support for agricultural inputs and training, support for the creation of community
agricultural structures, ensuring transport and access to markets are all components to create an
enabling environment for transition.
Artisanal and Small-Scale Mining Page 50
XIII. CONLUSION: TABLE OF RECOMMENDATIONS
The absence of formalisation together with the seasonal and migrating character of ASM makes
the administration and control of the sector extremely difficult.
Uncontrolled ASM can cause serious negative effects in various ways. Areas of particular concern
as shown in the paper, include unacceptable environmental practices, poor social, health and
safety conditions, illegal mining and marketing and lack of alternative livelihoods.
Instead of alleviating poverty uncontrolled ASM can perpetuate poverty as it attracts people away
from other more sustainable livelihoods such as farming, and can destroy the future potential of
such areas if there is a resource found on agricultural land ; can compromise the levels of
education and skills for employment of young people; creates debt which can trap people in
ASM; has little culture of savings and inefficiently uses non-renewable resources with little
revenue going to the state or being used for social investment.
Illicit marketing and illegal operations are primarily due to inadequate government policies. As
mentioned in the introduction, artisanal and small-scale miners find themselves trapped in a
vicious circle of poverty, and in order to improve ASM‟s contribution to sustainable development
there is an urgent need to break this cycle of cause and effect.
Governments are also caught in a “paralysing cycle of causality”23 that aggravates the problem.
One of the principal effects of illicit trading is the loss of tax. Lack of operational resources is
the primary cause of the inability of mining authorities in many developing countries to control
the activities. Inadequate control results in a environmentally harmful mining, poor health and
safety and illegal operations. Illegal operations leads to the inability to collect taxes and royalties
due to the government which restricts the capacity to allocate the necessary resources to its
agencies.
In developing countries, mine inspectors are unable to visit artisanal operations regularly, which
makes it impossible to enforce the sector‟s regulations even if they were adequate and most likely
to address the sector‟s issues.
The table below summarizes the recommendations made throughout the paper for a more
sustainable ASM. But it seems that the first main step to break the cycle affecting both miners
and mining authorities is to adopt incentives for ASM to operate in the legal domain. Due to the
large numbers of miners, their mobility and their remote locations, adopting measures to improve
ASM, reduce illegal trading and make miners change their traditional ways of mining will be
extremely difficult unless the activity is formalised.
Formalisation will facilitate reaching the target group with assistance programs and increasing
their awareness on the negative effects of their traditional mining techniques. There needs to be a
23
R. Noestaller ‘historical perspective of artisanal mining’
Artisanal and Small-Scale Mining Page 51
strong and continued government commitment. To reduce the growing and large number of
people in ASM exploiting limited resources, a special attention must be given to creating
alternative livelihoods in ASM communities.
Area of
Intervention
Goals Recommendations
Environment Protect the environment and promote environmentally sound mining techniques
Implement a monitoring scheme to check the environmental impacts and enforce appropriate penalties
Interventions focused on incentives and training
Improve community awareness on environment
Promote culturally relevant technical solutions to environmental impacts
Occupational
health and
safety
Improve the
working
conditions of the
miners
Safety equipment assistance and technical cooperation
Improve awareness of health risks
Education and training programmes
Surveillance of ASM concessions
Gender
Issues
Strengthened
role for women
Ensure equal access to finance, technology and market:
gender sensitive approaches
Training for literacy, business development skills, capacity
and image building
Support the creation of women‟s associations
Interventions that empower women and recognize
inequalities
Delivering services such as health care, education, child
care and first aid
Child labour Eliminating child
labour
As a first stage, improve children‟s working conditions
and withdraw children from dangerous activities
Improve awareness of the dangers of putting children to
work in mines
Enforcement of regulations addressing child labour
Providing working children and their families with other
alternative incomes, and reinsertion of children in schools
Relationship
with LSM
Develop a better
relation between
the two sectors
Creating an atmosphere of „partnership‟
Understanding by LSM operators of ASM needs and
mining traditions
LSM assistance to ASM through technical, financial
cooperation, job creation etc.
Artisanal and Small-Scale Mining Page 52
Policy and
legal issues
Implement and
enforce
appropriate ASM
regulatory
frameworks
Incentives for ASM to operate in the legal domain
Specific legislation that takes into account ASM special
needs
Facilitate the requirements for obtaining permit
More authority and prerogatives to local decentralised
government
Establishment of an efficient monitoring body
Dissemination of the law, and realistic penalties
Improved taxation systems
Properly implemented and enforced laws and regulations
Mining rights Confer to miners
easily accessible
legal and
transferable
rights
Expand property rights to absorb the extralegal mining
activities
Legal access to mineable resources (allocated ASM areas)
Security of tenure
Finance and
credit
Alleviate barriers
to ASM finance
and credit
Easier access to finance
Training in savings and financial management
Equipment leasing schemes and other alternatives to
direct financing
Market access
and
certification
Better markets
for ASM
products
Regional harmonization of policies and practices to
reduce smuggling
Hold ASM trades fair
Develop and adopt appropriate certification systems
Organisations
of ASM
Organised and
formal ASM
structures
Support the creation of associations and other organised
ASM structures that defend ASM rights and economic
interests
Alternative
livelihoods
Reduce ASM
dependency and
create other
livelihoods
Supporting ASM miners to set up alternative businesses
through financial and financial support
Job creation in LSM operations
Training and support for alternative livelihoods in
agriculture
Artisanal and Small-Scale Mining Page 53
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