Artisanal and Small-scale & the Africa Mining Vision

Dr  Nellie  Mutemeri  nmConsulting  

 Associate  Professor  -­‐  School  of  Mining  Engineering,  Wits  University,  South  Africa  (mutemerinellie@gmail.com;  +27-­‐71-­‐606  1996)  

AMDC  Communication  Workshop,  Malawi    31  May  -­‐  2  June    2016    

Mainstream ASM! Don't Ghettoise it!!!

Outline of Session The objectives of the session is share to information on the following:

•  What is artisanal and small-scale mining (ASM)?

•  The Precarious world of ASM

•  ASM in Africa

•  Gender and ASM

•  ASM and Development in Africa

•  Regional Knowledge Hub

What is ASM?

•  Definition of ASM and categorisation

•  Legal classification

•  Global extent of ASM

Definition & Categorisation of ASM

Global Categorisation ▪  Formal versus informal ASM (usually a development practitioner construct)

•  Formal implies ASM practised within legal boundaries and according to certain norms. •  Informal is usually used for ASM which is practised strictly outside the law but on which is

conferred a certain level of legitimacy or acceptance because it is an important livelihood for poor communities

▪  Legal versus illegal versus extra-legal ASM •  Legal – ASM that is practiced within documented law •  Illegal – ASM that is practiced outside the law •  Extra-legal – ASM that is practiced outside the prevailing law, but the regulator or

government authorities allow it for expediency

Artisanal and small-scale mining (ASM) includes all the activities concerned with mineral searching (i.e. prospecting), ore extracting, processing and trading of mineral product, when the activities apply simple methods, low levels of capital and technology and are labour intensive. The distinction from industrial scale is subjective and tends to be user specific.

#This definition above takes no position on legality or formality; which is determined from the way ASM is practised in relation to the laws of the particular country. Below are some of the globally accepted ASM categories.

# Below are some of the ASM types based on the drivers (i.e. the reason people enter the ASM sector). 1) Traditional (present for many generations), 2) Seasonal (as an alternative to agriculture), 3) Influx (driven by a new “find”), 4) Shock (driven by economic down, conflict, retrenchment, drought commodity prices etc.)

ASM Legal classification

This is a relative classification usually with what appear to be “arbitrary” boundaries set in the law, concerning size and type of operation; sometimes distinguishing between artisanal mining and small-scale mining, based on:

•  Capital applied, i.e. level of investment •  Methods of production, usually reflected in

level of mechanisation permitted

•  Production capacity sometimes in terms of throughput, output or number of workers

5  

Global Scale of the ASM Sector

▪  Global estimates of people involved in ASM: •  ~20-30 million people across 80 countries involved (IIED

Report, 2013). •  ~30% of whom are women, also a large involvement of

children ~10% (ILO Report, 2009) •  ~90% of employment in the gold sector is in ASM, i.e. ~15

million people in +70 countries (UNEP Report, 2013)

ASM in Africa

•  Extent of ASM in Africa

•  Nature of ASM

•  Key issues

•  Developmental opportunity

Extent of ASM in Africa 150000

150000

200000

200000

200000

250000

300000

400000

400000

400000

450000

500000

500000

500000

1500000

2000000

Angola

Uganda

Sudan

Mozambique

Burkina Faso

Ghana

Sierra leone

Mali

Eritrea

CAR

Niger

Zimbabwe

Nigeria

Ethiopia

Tanzania

DRC

•  Estimate of 9 million ASM workers in Africa, making this by far the largest mining workforce on the continent.

•  Minerals exploited include gold, diamonds, copper, cobalt, tin, tantalite, tungsten,

industrial minerals and construction materials like sand, clay and dimension stone.

African countries where the miner population is estimated as greater than 150,000, account for ~92% of the total miner population on the continent. (Source: PACT, “2008 Regional Workshop: Small-scale Mining in Africa - A Case for Sustainable Livelihood”)

Nature of ASM

Most actors being caught in a poverty trap

Exploitation of the following minerals:  •  Precious minerals – gold, diamonds

and other precious stones e.g. emeralds, sapphires, rubies, tanzanite etc.  

•  Base metals - coltan, tin, tungsten, cobalt, copper  

•  Also industrial minerals and construction materials  

•  Negative social impacts including child labour, forced labour and other forms of exploitation, gender based violence, general criminality etc.

•  Exploitation of marginal deposits •  Conflict with large-scale mining companies & other land uses

•  ASM being one of limited (sometimes the only) livelihood options for rural communities

•  Negative environmental and health impacts, leading concerns being mercury pollution, land degradation, spread of communicable diseases etc.

ASM (legal/illegal) is often associated with the following:

•  Undercapitalised, inefficient and unviable operations Illicit minerals trade, associated armed

conflict and civil strife

ASM: A Developmental Opportunity Africa

•  In spite of its many challenges ASM provides livelihoods for many poor communities in Africa

•  If properly harnessed and the negative impacts appropriately addressed it is possible to convert what seems a threat to many to an opportunity which can be the basis for sustainable livelihoods

•  There are deposits that lend themselves to optimal exploitation only

ASM relevant Protocols, Initiatives and Practices Type of protocol, initiative or practice

Examples

Issue-specific initiatives: •  Mercury pollution, e.g. UNEP’s Global Mercury Partnership & UN Minimata Convention on Mercury Pollution

•  Illicit trade of minerals & associated armed conflict and civil strife, e.g. OECD Diligence Guidance on “conflict minerals” and the Kimberley Process Certification Scheme

•  Child labour: ILO Convention 182 on “worst forms of child labour” Private sector accountability and responsibility

•  ICMM Guidance – “Working Together – how large-scale miners can engage artisanal and small-scale miners”

•  IFC Performance Standards – especially Performance Standard 1 •  Global Reporting Initiative – Mining and Metals Supplement

Indicators •  Voluntary Principles on Security and Human Rights •  “Conflict-free gold standard” developed by World Gold Council •  Dodd-Frank Wall Street Reform and Consumer Protection Act

(Section 1502, on conflict minerals from the Great Lakes Region) ASM sector transformation

•  CASM (Communities and Small-scale Mining) a World Bank Network Program

•  Alliance for Responsible Mining (ARM) supporting formalisation •  Africa Mining Vision (2009) with a focus on "...a mining sector that

harnesses the potential of ASM ..”

ASM & Gender

Gender & ASM •  Why it is important to consider gender in ASM

•  Gender roles in the ASM value chain

•  Gender and ASM framework:

  Strategic gender needs

  Practical gender needs

"Gender  Dimensions  of  Artisanal  and  Small-­‐Scale  Mining  a  Rapid  Assessment  Toolkit"  By:  Adriana  Eftimie,  Katherine  Heller,  John  Strongman  Jennifer  Hinton,  Kuntala  Lahiri-­‐Dutt,  Nellie  Mutemeri  With:  Chansouk  Insouvanh,  Michael  Godet  Sambo,  and  Susan  Wagner  

Why Gender & ASM? Key points to note: •  "Understanding that men and women play different roles in the

community and face different constraints is critical to understanding how they are differently involved in and affected by ASM, and to designing interventions to maximize development opportunities."

•  At a global level ~ 30% of the ~20 million people in ASM are women, in Africa ~50% of the ~9 million artisanal miners.

•  The precarious nature of ASM has very adverse impacts on women and other vulnerable groups.

•  Women are critical to community stability and can facilitate positive change.

•  ASM is unlikely to develop optimally without gender mainstreaming.

Gender roles of the ASM value chain

Mining    Value    Chain  

                                     Prospec3ng   Mining   Processing  

 

         Beneficia3on  

                             Marke3ng  

Gender roles of the ASM value chain

•  Women’s lives are dominated by their reproductive role, and men’s by their productive roles.

•  There is conflict between reproductive and productive roles, where women have productive activities outside the home there is juggling

•  The dominant productive role for women at mining sites is trading

•  Limited women’s participation in the mining value chain as buyers

•  Lower capacity in women for strenuous digging and cultural taboos in ASM are often cited reasons for exclusion from digging, presence of more women in processing and services

Gender & ASM Framework

A gender and ASM framework is premised on: •  The idea that development (for men and women)

is dependent on ownership, access and control of assets.

•  Understanding that men and women have different roles in ASM and how this impacts development outcomes.

•  Addressing strategic and practical gender needs.

Practical Gender Needs Examples of practical gender needs in ASM include:

•  Training to improve skills for ASM and alternative livelihoods

•  Appropriate equipment and technology for women, •  Improving viability of ASM •  Awareness of the health and safety issues in ASM •  Information and services to optimise benefits from ASM •  Formalising existing gender equity practices •  Facilitation of access to finance through training,

appropriate financial products for women and better information dissemination by financial institutions (enable women to participate as entrepreneurs employing men to do the strenuous work)

Strategic Gender Needs •  Broader and deeper consultation and participation in

review and development of policies, laws, programs •  Empowerment of women for effective participation in

consultative forums etc. to advocate for change and equitable access to capacity building programs

•  Provide platform for review of traditions, cultural norms and community practices

•  Gender analysis for programs and interventions •  Improve literacy in women •  Improve understanding of the law •  Awareness raising of the benefits of empowering

women •  Mining activity data should be gender disaggregated •  More research on gender in mining

ASM & Development in Africa

ASM & Development in Africa

•  ASM and the Africa Mining Vision (AMV)

•  Actualisation through the AMDC Action Plan

•  Transformation of the ASM sector

ASM & Africa Mining Vision •  AMV (Key tenet on ASM): "Harnessing Artisanal and Small Scale Mining -

Integrate sector to improve rural livelihoods; Integrate to improve rural economy, upgrade skills, technology, etc.

•  The AMDC Results Area on ASM: •  The Goal is to create a mining sector that harnesses the potential of

artisanal and small-scale mining to advance integrated and sustainable rural socio-economic development

•  Key actions include developing policies, laws and regulations that promote a viable and sustainable ASM sector, and where possible to embed ASM into broad-stream rural development strategies. It also seeks to develop programmes to upgrade the knowledge, skills and technologies used in the ASM sector, and generally to develop institutional capacities that support a viable ASM sector.

•  The outcomes will be: •  A viable and sustainable artisanal and small-scale mining sector; •  Strengthened capacities of ASM operators; and •  Reduced negative environmental, health and welfare impacts from ASM

Country Mining Vision - Questions •  Is there an adequate policy framework for artisanal and small- scale mining (ASM)

and is it optimally aligned with the broad national / regional / local development agenda, including rural development plans?

•  Are the existing laws aligned with the policies to facilitate ASM transformation?

•  What factors promote the widespread existence of illegal / unregulated ASM?

•  To what extent can these be managed?

•  What policies / strategies / actions can best encourage regulation? Do institutional and administrative structures for promoting streamlined ASM exist and are they adequate?

•  Are there adequate training, mentoring and other programmes for building ASM capacity?

•  Does the ASM framework provide for access to requisite geo- scientific information?

•  Is the environment for ASM conducive for finance and marketing opportunities?

Regimes for Administration of ASM Sector ▪  ASM is usually provided for as part of the broader mining policy

and legislative frameworks, and these provide for: •  ASM category of mining right or permit/license (sometimes

distinguishing between artisanal and small-scale). •  Rights and obligations of licensees and permit/right holders

with respect to the following: o  Validity, eligibility and restrictions on aerial extent, depth and

operating capacity o  Environment, health, safety and social impacts management o  Access to land use of other natural resources, e.g. water, timber

etc. o  Trading of minerals (sometimes there is a special category of

license) o  Records and reports o  Taxes, royalties and other levies o  Penalties for contravention of the law o  Institutional support

ASM in AMDC Plan •  Work to date:

  ASM study completed

  ASM and Gender study completed and published

•  Future plans

  Formulation of the AMDC ASM Strategic framework

  Implementation of key strategic projects, e.g. Establishment of a ASM Knowledge Hub

  Alignment with the broader AMDC Action Plan, e.g. ensuring appropriate incorporation of ASM in the Country Mining Visions (CMV)

  Alignment with partner initiatives, e.g. EU funded training of Geo Surveys, International Knowledge Hub Initiative

Regional Knowledge Hub

A Regional Knowledge Hub for ASM in Africa

•  Objectives of an ASM Knowledge Hub & Strategic alignment to the AMV & the AMDC mandate

•  Key Elements of a KH   Types  &  sources  of  information  and  knowledge      Collation  of  existing  information  and  knowledge    Generation  of  new  knowledge    Repositories    Dissemination  of  knowledge  

African ASM Regional KH: Objectives & Strategic Alignment An ASM Knowledge Hub (HB) as a strategic option to anchor the ASM program at AMDC

• Key  considerations  for  the  AMDC  with  respect  to  ASM  knowledge  generation  and  dissemination:    AMV  (Key  tenet  on  ASM):  "Harnessing  Artisanal  and  Small  Scale  Mining  -­‐  Integrate  sector  to  improve  rural  livelihoods;  Integrate  to  improve  rural  economy,  upgrade  skills,  technology,  etc.    AMDC  Vision:  To  become  the  Facilitator  of  choice  to  enable  AU  member  States  realise  the  Africa  Mining  Vision.  

• AMDC  Result  Areas  4,  6  &  7    Result  area  4:  ASM  -­‐  viable  and  sustainable  sector,  strengthened  capacity  of  ASM  operators  and  reduced  negative  SHEC  impacts    Result  area  6:  Building  capacity  (human  and  institutions)  -­‐  competitive  skills  base,  learning  outcomes  aligned  to  the  AMV  economic  and  social  objectives  and,  skills  mobility    Result  area  7:  Communication  and  Advocacy  -­‐  strengthened  awareness  and  capacity  of  stakeholders,  increased  access  to  information  and  knowledge  

Objectives of the Knowledge Hub

•  Provide virtual location for knowledge repository, on a database

•  To allow access or/and ownership to information •  Manage data, organizing cataloging etc •  Facilitate access and exchange to information and

knowledge

Types and Sources of Information The main types of information will be: •  Research outputs on key topics/issues •  Profiles of ASM in Africa •  Policy and legislation reviews and briefs •  Standard, guidelines & tools

The key sources of existing data will include: •  Publications •  Reports by research institutions including multilateral

agencies like the UN, World Bank and regional bodies like the African Union, African Minerals Development Centre (AMDC), COMESA, SADC, ECOWAS, SEAMIC, ICGLR, IIED.

•  National government archives.

KH Implementation Framework The Network - Hub and spokes approach:  • Role  of  the  Hub  

  Hosting  the  database    Coordination  of  data  collation    Lead  on  generation  of  new  knowledge    Lead  on  dissemination  of  knowledge    Infrastructure  management,  including  portals  etc.    Setting  the  terms  for  collaboration  and  partnerships,  proprietorial  issues  etc.  

• Role  of  spokes    Pushing  existing  data  to  central  repository      Supporting  generation  of  new  knowledge    Supporting  dissemination  of  knowledge  

Next Steps

•  Establishment of an African Regional ASM Knowledge under the AMDC ASM Strategic Framework

•  Partnership with Swiss Agency for Development and Cooperation and the Mongolians

CONCLUDING REMARKS

The Precarious World of ASM International & Regional Agreements governing the

ASM Sector

Local Legislation & Institutional Arrangements – Laws Governing ASM in African Countries

Large – Scale Mining Operations

•  Role of private sectors in areas of limited statehood.

•  Corporate contribution to and effects upon local governance.

THE PRECARIOUS WORLD OF ASM •  Exploitation of marginal and/or very small

deposits •  Poor access to technology and equipment •  Low level of occupational safety & health

care •  Insufficient consideration of environmental

issues •  Poor qualification of personnel at all levels

of the operation •  Chronic lack of working and investment

capital •  Inefficiency in exploitation & processing of

mineral production (low recovery value) •  Low level of productivity •  Low level of wages and income •  Sporadic operation by local people by

season or rushes driven by finds market prices etc.

•  Illicit trade minerals and associated civil strife

•  Land use conflict and competition for resources

•  General criminality and exploitation workers especially of children and women

Socio-economic and other drivers •  Historical, economic, developmental, geological, social backgrounds and circumstances in African countries are very

different in many cases. •  Wide difference with respect to the minerals, more than 50 different minerals are exploited in the region

Security Forces Impact on ASM

•  Governance for whom?

•  Role of private security forces in areas of limited statehood and problems related to such non-state governance.    

ASM POTENTIAL •  Giving ASM an equal footing, with large scale mining and not an afterthought, only to be

given what remains after the spoils have been allocated.

•  Have country specific regimes not "Copycat" policy and legal provisions should be abandoned. Hopefully the CMV process is going to address this.

•  Influencing development funding for the right approaches to funding

•  Artisanal and small-scale categories providing a growth path for local entrepreneurs in the minerals sector (Note: Johannesburg & Kimberley where once upon a time ASM sites)

•  Looking also to industrial minerals and construction materials

•  Consider Human rights based ASM. This looking at ASM developmental approaches with a human rights lens. For example when one considers "unlicensed" mining one looks beyond the illegality, and because one recognizes the right to a livelihood, focus on transformation through formalisation, the issue of illegality is addressed as part of the process.

•  An holistic integrated approach that starts with an well informed broadly consulted inclusive policy and legislative framework, whose implementation is supported by strengthened capacity of the administrators at all levels of government as well as that of the operators, the latter not just for efficient operations but also for self-regulation and other forms of local organisation.

Breaking the Poverty Trap of the ASM sector

Large  numbers  of  miners  chasing  limited  resources  

Inadequate  &  inappropriate  technology  

Low  income  &  lack  of  

investment  opportuni<es  

Environmental  degrada<on  

Low  Produc<vity  

These  are  the  interven.ons  to  break  the  ASM  poverty  trap  

Financial  assistance    

Technical  assistance    

Alterna3ve  livelihoods  Regula3on    

Financial  assistance  Technical  assistance  Alterna3ve  livelihoods    

Technical  assistance  Alterna3ve  livelihoods  EIA  &EMP  strategies    

Rehabilita3on  Alterna3ve  livelihoods    

Technical  assistance  Alterna3ve  livelihoods    

ASM Triangle of Transformation

Transi.on  through  educa.on  access  to  finance  &  markets  etc.  

INFORMAL  ASM  

ALTERNATIVE  LIVELIHOODS  

FORMAL  ASM  

This  is  about  transforming  ASM  sector  through  holis<c  integrated  formalisa<on  programs  that  acknowledge  that    minerals  are  was<ng  asset  and  therefore  need  to  be  transformed  into  more  sustainable  forms  of  capital  for  alterna.ve  sustainable  livelihoods  

THANK YOU

Mainstream ASM! Don't Ghettoise it!!!