Boris Ivanov, Founder, Emiral
Artisanal and small-scale mining (ASM) has supported communities for centuries – but is often controversial due to its environmental and social impacts. However, this informal sector is vital when it comes to supporting many developing nations, providing livelihoods for an estimated 45 million people globally.
While it also brings with it significant challenges in terms of environmental impact, social issues, and regulatory complexities understanding the multifaceted dynamics of ASM is essential. Its influence on local, national and even global economies, and the possibilities for fostering more sustainable and efficient practices is key to addressing its complex role in the global mining landscape.
The Double-Edged Sword of Artisanal Mining
Across the developing world, from the Andes to the African Savannah, ASM has emerged as a vital livelihood strategy for millions of people. In rural communities where economic opportunities are scarce, the promise of mineral wealth – such as gold, diamonds, as well as copper, cobalt or other precious resources – offers a tantalising path out of poverty and in some areas of the globe it is the only economic activity available next to subsistence farming
The economic impact of ASM is also substantial. It produces a significant portion of the world’s supply of critical minerals like gold, cobalt, tin, tungsten, and tantalum – resources that are essential for modern technologies and industries. For example, in 2023 Ghana alone mined an impressive 4.03 million ounces of gold, which was driven largely by increased output from ASM. The heavily sought after and so called ‘electric metals’ (lithium, cobalt, copper) are also extracted in growing volumes by artisanal miners, especially across Africa.
However, this economic lifeline can come at a steep cost to the environment. The environmental destruction wrought by unregulated ASM operations is often severe with instances where forests are cleared, farmlands are destroyed, and rivers are polluted with toxic chemicals like mercury and cyanide used in gold processing. Take the Amazon alone, where gold mining has doubled in size since 2018, leading to greater deforestation.
The air quality in mining areas also frequently suffers due to dust and emissions from rudimentary processing methods. These environmental impacts not only degrade local ecosystems, but also pose serious health risks to miners and surrounding communities.
As such, the social implications of ASM are equally concerning. Miners in ASM often face poor working conditions, health risks, and lack legal protection or benefits due to the sector’s informal nature.
Child labour is, regretfully, not uncommon, with young children exposed to the same risks as adults. Women, who make up a significant portion of the ASM workforce, often face discrimination and sexual harassment. And the influx of miners into new areas can also lead to social disruption, including increased crime rates and the breakdown of traditional community structures.
Moreover, the informal nature of much ASM activity means that it often operates outside of legal and regulatory frameworks. This can lead to conflict with formal mining operations, loss of government revenue through tax evasion and smuggling. It’s estimated that Ghana loses $2 billion annually due to gold smuggling, with 60 tonnes smuggled out of the country in 2022 alone.
Finally, ASM frequently fuels internal armed conflicts and criminal para-military organisations, which seek sources of funding and subject artisanal miners to extortion.
The Challenge of Regulation
Given these myriad issues, one might ask: why not simply ban ASM altogether? The answer lies in the complex socio-economic realities of the countries where ASM is prevalent. For rural communities ASM represents the only viable means of income. As long as poverty exists, so too will ASM. Secondly, the streams of natural resources created by ASM in aggregate compose a difficult to assess, but certainly significant share of mineral stock in the world economy. Even if there existed some magical way of simply wishing ASM away, it would lead to an observable shortage or, at the very least, a significant increase in prices for certain commodities.
Due to its informal nature, navigating the muddy waters between legitimate small-scale mining, and illegal mining operators – often referred to in Ghana as ‘galamsey’ – is complicated and has led to challenges to regulate the sector.
Many countries face significant challenges in effectively regulating the sector due to ambiguous laws, limited institutional capacity, and the sheer geographical spread of ASM operations. The result is often a patchwork of policies that fall short of addressing the sector’s complex realities.
Addressing these issues requires a nuanced and multi-faceted approach, as there is no single solution that will work in all contexts. Each mining community has unique characteristics and challenges, and any strategy must be tailored to fit these specific circumstances.
A call for Formalisation
A key starting point is the formalisation of the sector. Governments need to install legal frameworks that remove barriers to formalisation and are not punitive to marginalised communities and streamline over bureaucratic licensing processes to make it cost-effective and rewarding to gain a license.
We need the ability to develop clear and comprehensive legal frameworks that recognise and accommodate the realities of small-scale mining. As well as simplifying the licensing process, it should include ensuring fair access to land and setting realistic environmental and safety standards that small-scale miners can adhere to.
Formalisation would not only help bring miners into the legal economy, but also improve compliance with regulations, facilitate access to finance and markets, and provide a foundation for better labour and environmental standards.
Training & Collaboration
Another critical component to reforming ASM is training and education. Targeted training programmes on mining best practices, safety standards, environmental protection and business skills can empower miners to operate more effectively and sustainably, reducing the negative impacts of their activities while enhancing profitability for local communities. The most acute issue in this respect is probably the reduction, and eventual, complete elimination of mercury from ASM operations. The technique of separating gold from the associated soil elements using mercury is literally as old as the pharaoh’s and is incredibly toxic to the miner, who inhales mercury fumes in the process.
Only practices that work directly with miners themselves are going to be effective. Too often decisions about mining regulations are made without the involvement of those who are most affected by these activities – the local miners themselves. Engaging locals in the governance of ASM will ensure that any strategies developed will address the actual realities on the ground, rather further exacerbate problems.
The complexities of the ASM sector require a coordinated approach that leverages the strengths and resources of all stakeholders – including companies involved in these chains. Private companies must take more responsibility for the investment and provision of greener and more sustainable mining techniques that miners can employ.
Mining towards a Safer Future
While artisanal and small-scale mining presents numerous challenges, it also holds significant potential as a driver of sustainable development. The sector cannot simply be shut down, as it provides essential livelihoods for millions of people. Instead, the focus should be on transforming ASM into a more sustainable and efficient part of the economy.
This requires a balanced approach that includes formalisation, education, and collaboration. By adopting such an approach, it is possible to clean up the ASM sector and ensure that it contributes positively to the economic and social development of the communities that depend on it.