1 artisanal and small scale mining: policy directions from the amv oliver p. maponga 3-4 november...
TRANSCRIPT
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Artisanal and Small Scale Mining: Policy Directions
from the AMV
Oliver P. Maponga
3-4 November 2014
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Presentation Objectives
This presentation outlines and discusses the AMV policy directions on strengthening the developmental role of the ASM sector and provides recommendations on how these could be domesticated as part of the CMV.
The presentation will explore the following questions;– What does the AMV say about
ASM? – What is ASM and what role does
it play?– What are the challenges? – What directions on ASM are
provided by the AMV?
AMV View: The ASM challenges in the African
minerals sector
the level/quality of the resource potential data
limited contracts negotiating capacity
limited resources development and governance capacity
limited capacity to manage mineral wealth
infrastructure bottlenecks, and artisanal and small-scale
mining
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AVM Pillars: ASM as one pillar
• Optimizing knowledge and the benefits of finite mineral resources at all levels of mining and for all minerals,
• Harnessing the potential of small-scale mining to improve livelihoods and integration into the rural and national economy,
• Fostering sustainable development principles based on environmentally and socially responsible mining, which is safe and includes communities and all other stakeholders,
• Building human and institution al capacities towards a knowledge economy that supports innovation, research and development,
• Developing a diversified and globally competitive African mineral industry which contributes to broad economic and social growth through the creation of economic linkages,
• Fostering a transparent and accountable mineral sector in which resource rents are optimized and utilized to promote broad economic and social development, and
• Promoting good governance of the mineral sector in which communities and citizens participate in mineral assets and in which there is equity in the distribution
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ASM: Classifications, Definitions, Characteristics– Diverse definitions exist: distinction
between artisanal mining and small scale mining often obscure
– Classification – could be categorised• Legal classification• Global categorisation
– Country-specific definitions as articulated in national policies and legislative frameworks
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Legal classification
– Common methods to define artisanal mining and small-scale mining, based on:• Capital employed, less than $5 million for
SSM• Methods of production, usually reflected in
level of mechanisation permitted• Production capacity sometimes in terms of
throughput, output per worker• Number of workers, less than 50 for SSM
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Global Classification– Formal versus informal ASM• 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 turn a blind eye
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Diversity
i. Legal – illegal, informal, formal/legal
ii. Seasonality – permanent, seasonal, shock/pull and rush
iii. Demographic – old, children, men, women
iv. Origin – migrant, local
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A Wide Spectrum
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ManualSimple methods
Unlicensed Licensed
Ad Hoc (rush phenomenon)UnsupportedLow capital
inputMigratory
Mainly local ownership
More mechanizedUsually licensed
Planning common
EMP and EMPAccess to some
supportMore capital
input
ASM Spectrum
Artisanal Small Scale
Transition……….
ASM: Magnitude and Importance
Country ASM Miners
ASM Communi
tyBurkina Faso
200 000 1 000 000
Cote d’Ivoire
100 000 600 000
Ghana 1 100 000 4 400 000
Guinea 300 000 1 500 000
Liberia 100 000 600 000
Mali 400 000 2 400 000
Niger 450 000 2 700 000
Nigeria 500 000 2 500 000
Sierra Leone
300 000 1 800 000
Mozambique
100 000 1 200 000
Tanzania 1 500 000 9 000 000
CAR 400 000 2 400 000
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[1]
ILO estimates
ASM provides 13 to 20 million jobs worldwide
Provides livelihood support to 80 to 100 million people
10% of the miners are children
50% of the miners are women
Prevalent in about 80 countries worldwide
UNEP (2013)
90% of employment in gold sector worldwide is in ASM
Minerals and Africa’s Development (2011)
ASM: Contribution to Mineral Production
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Coloured Gems
Cobalt
Cassiterite (Tin)
Diamonds
Coltan
Gold
Silver
Tungsten
Iron Ore
Lead
Zinc
Copper
0 10 20 30 40 50 60 70 80 90
World Share% Source: Estelle Levin Ltd. (2012)
In Tanzania -60% of ASM miners are in gold, 25% building materials, 10% in gemstones, copper ore, salt and industrial minerals (5%)
In Uganda 45% miners are women, ASM produce 90% of minerals, dependency ratio 1:6, 95% ASM unlicensed
ASM Characteristics: The Vices and Challenges
Negative environmental impacts, e.g. mercury contamination, deforestation, siltation, unreclaimed mine sites
Child labour and gender inequality challenges Low productivity, limited capital resources, Non-decent employment, poor working
conditions; Illicit trade and linked to conflict; Inadequate and inappropriate technology; Adverse health & safety impacts, - poor hygiene
and sanitation, exposure to mercury, dust and other hazards;
Limited capacity to adhere to laws, to enforce laws
Markets and marketing challenges; Criminality often associated within the sector
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ASM Perpetual Cycles of Poverty
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Low recovery Low productivity
Low levels of technology and poor geo-prospecting
Unskilled miners, labour and inability to invest
Poor large numbers of miners exploring/exploiting
unknown resources
Poverty exacerbation
Environmental damage, deteriorated quality of life and health
Low income
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ASM Support: The Golden Triangle
Artisanal and Small Scale
Mining Operations
Technology
FinanceMarkets
and Marketing
Transforming ASM to Sustainable Livelihoods
Skills, education access to finance & markets, technology.
Skills, education, access to
finance markets, technology,
policy etc.
INFORMAL /ILLEGAL ASM
SUSTAINABLE LIVELIHOODS
FORMAL ASM
Form
alisa
tion Le
gal, v
iable,
safe
r,
envir
onm
enta
lly re
spon
sible,
desc
ent w
ork
Sustainable Livelihoods Elements
People focusedMacro/micro linkagesStrengthening ownershipWide participationCapacity strengthening
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Options for Breaking the ASM Poverty Cycle
Large numbers of miners chasing
limited resources
Inadequate & inappropriate
technology
Low income & lack of
investment opportunities
Environmental degradation
Low Productivity
Financial assistance
Technical assistance
Alternative
livelihoods
Regulation
Financial assistance Technical assistance Alternative livelihoods
Technical assistance Alternative livelihoods EIA &EMP strategies
Rehabilitation Alternative livelihoods
Technical assistance Alternative livelihoods
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The Golden Triangle in Tanzania
Legislative– Security of tenure– 5 to 7 years permits (PML)– SSM for locals
Administrative– SSM section within Ministry– Granting of PML
Extension Services– Provided along MVC, demarcation of areas– SSM manuals, brochures– Demonstration units, technology facilitation
Finance – Loan scheme, feasibility studies17
Supported by
development partner resources
Support to the ASM value chain
EXPLORATION
MINING
PROCESSING
BENEFICIATION AND
VALUE ADDING
MARKETING
Safer
Deposit ID & evaluation
Ore Extraction Ore Processing Refining/Finished product
Markets
ENVIRONMENT HEALTH SAFETY SOCIALLEGAL
Reduce impacts Protect health Better lives, higher
incomes
Compliance
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Strengthening the Developmental Role of ASMDevelopment Goal – Increased income for the ASM sector leading to improved livelihoods of rural communitiesA poorly regulated sector, often with illicit activitiesSubsistent operations and non-commercially viablePoor technical skills and technologyPoor environmental and social management
Upgrade sector knowledge, skills and technologiesDevelop programmes to improve viability of operationsEmbed ASM into national development strategy , local and rural economy
A viable sector contributing to local and national economyStrengthened skills and capacities of operatorsReduced negative environmental, health and welfare impacts ASM19
ASM Policy Directions
The overall objective is to harness the potential of artisanal and small scale mining to advance integrated and sustainable rural socio-economic development
Actions – national level Regularise ASM and mainstream into broader
development plans, Introduce technical support programmes to upgrade skills
and capacity, Local value chains, local content – local
auctioning of gemstones Partnership models – cooperative
models/community programmes Financing and marketing methods
Develop frameworks to encourage partnerships with LSM – mentorship, subcontracting
Implement guidelines against child labour, Develop codes, standards, laws for sustainable ASM, Adopt measures against illicit trade in minerals, Designate specific areas for ASM and support the
activities, Promote value addition and mineral beneficiation Decentralize support to the sector
ASM Policy Directions
Actions: Regional level (REC and AU)
Harmonise ASM policies, laws, regulations, standards Coordinate and facilitate technology and skills
development – centres of exellency in technology and skills development – sharing of capacities, experiences
Adoption of measures to address illicit trade in minerals – regional minerals security frameworks – ICGLR, for example
Adoption of standard certification of ASM products – finger printing
Development of continental policies, protocols, regulations, codes and standards to promote sustainable ASM
Links the sector to regional and national development
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Policy Framework for ASM: Zambia
To develop the small scale mining sub sector the Zambian Government will undertake the following
• Encourage use of appropriate, affordable and safe technology, by increasing its support to the collation and dissemination of information about appropriate technologies, the provision of extension services and technology demonstrations;
• Build capacity in regional mining offices to enhance their service delivery;
• Collaborate with small scale miners associations;• Disseminate information to raise awareness on occupational
safety, health and environmental risks, and provide occupational health and safety guidelines for SSM;
• Improve the system of information flow for the mining sector to sensitize and create awareness, especially for ASM and rural populations, on the opportunities present and the regulations governing the sector;
• Facilitate SSM access to finance for the development of the sub sector
• Source: Zambia Mineral Resources Development Policy (2013)
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Article 1.2: Vision: harness mineral resource capital to facilitate sustainable economic growth and integrated socio-economic development in the region
Article 1.3 Objectives, Specific Objective 2© regulation and development of ASM
• Develop specific institutional and legislative frameworks.
• Encourage the formation of cooperatives in the sub-sector.
• Provide of technical and financial assistance;• Enhance technical capacity through formation of
professional organisations.• Develop training curricula and good practices
relevant to the social context and supported by technology transfers.
• Promote the harmonious co-existence with LSM;• Encourage the establishment of a coordinated
system of licensed Mineral Buying Centres/Agencies in the Community
• . Develop a sustainable Artisanal and Small-scale Mining Sector.
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ASM Policy Directions: EMDP
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AMV Policy Directions on ASM to Country Level
• AMV Domestication: to create AMV-compliant policies – first step, Country Mining Vision – multi-stakeholder platform
• Pro-active state apparatus: Role of the state critical in nurturing the sector – infant industry argument type of support – golden triangle requires conscious state support – – Technological (equipment hire schemes, etc) – Financial (venture capital funds, revolving funds
models)– Markets and marketing – participation in the local
MVC• Creation of Requisite Governance Framework:
specific state mechanisms and capacity dealing with ASM beyond formalisation – deal with structural and legal issues – working conditions, health, child labour, other economic activities
• National and Regional cooperation: in technology development, research, technical standards, financial resources – centres of excellence,
From AMV to Regional and National ASM Policy Directions
National Policy Framework or
Country Mining Vision
Regional Policy Frameworks
ECOWAS, SADC, EAC
Africa Mining Vision
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Thanks for the Attention
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