Collaborate on Artisanal Mining

The International Institute for Environment and Development (IIED) estimates that ASM has grown from creating employment for 10 million people in 1999 to upwards of 40 million in 2017, almost all of whom live in developing countries. IIED also estimates that 15 to 20 per cent of global minerals and metals derive from ASM (IIED, 2017) and that it accounts for approximately 15 per cent of newly mined gold production.

Environmental damage through ASM activity includes the pollution of waterways through mercury use, dam construction, a build-up of silt, poor sanitation and effluent dumped in rivers. Improper mine closure and lack of reclamation can also result in acid rock drainage.

The ASM sector often lacks basic worker health and safety provisions and dangers in the workplace include lack of training, poor ventilation, lack of safety equipment, improper use of chemicals and obsolete equipment. Women and children are also frequently involved in ASM activities creating specific health, physical and psychological concerns. In addition, ASM can lead to an influx of workers and create conflict with existing miners, communities and Indigenous populations.

More broadly, miners involved in ASM trade gold and minerals informally and do not pay tax or royalties, limiting the ability of governments to provide services or enforce laws. ASM may also be used to fund corruption, launder money and support guerrilla activities while undercutting the viability of legal mining.

ASM impacts large-scale mining (LSM), for which interaction with ASM can take a variety of forms, from violent confrontation through to cooperative support that can target social development and poverty reduction. A key challenge is how to establish a process to help legitimise what is sometimes an illegal activity, conducted in poor and unsafe working conditions, but that can contribute positively to the local economy. There is a growing trend of host governments taking an increasingly positive attitude towards ASM as it can support poverty reduction in rural areas. Also, ASM groups are starting to formalise and gain political power, playing a role in resource nationalism debates.

What is the relationship between LSM and ASM?

The relationship between LSM companies and the ASM sector is often poorly understood and has been troubled by a general mismatch of expectations, which has led to mistrust and conflict in some cases. The motivation for LSM engagement with ASM will vary in almost all operating circumstances, but it is likely to fall into at least one of the following broad categories:

• Risk minimisation and security.
• Managing reputational risk.
• Maximisation of community development opportunities.
• Pressure for corporate accountability.
• Improved mine closure planning.

In the absence of effective engagement, LSM companies can find themselves facing delays in project development or impacts on production as they respond to ASM concerns or actions.

Strengthening operational capacity

ICMM company members commit to contribute to the social, economic and institutional development of the communities in which they operate. Artisanal and small-scale miners and their dependents often make up an integral part of these communities. Where appropriate, ICMM collaborates with governments to support improvements in the environmental and social practices of local ASMs.

ICMM has developed Working Together: How large-scale mining can engage with artisanal and small-scale miners to support large-scale mining companies in identifying ASM activities in their region so that they can effectively engage with small-scale miners to ensure safe operating environments. ICMM also contributed to World Bank’s Mining Together: Large-Scale Mining Meets Artisanal Mining, A Guide for Action on LSM/ASM. It is primarily intended for an audience of LSM executives or staff in search of ways both to engage constructively with ASM and apply lessons learned from experiences in the field. It is also intended for governments that are responsible for the design or the enforcement of laws or regulations to tackle potential ASM–LSM conflicts.