Artisanal mining causes serious environmental damage through water contamination with heavy metals like mercury and cyanide, deforestation, soil erosion and siltation. Because of this, artisanal mining has been criminalized in Zimbabwe. However, the criminalization of artisanal mining has failed to stop the activity of an estimated 500,000 artisanal miners extracting gold, diamonds, tantalite and chrome among other minerals.
Over 150,000 people (or 1 in 3) of them are women and children. Globally, over 13 million people in 30 countries are directly involved in Artisanal and Small Scale Mining (ASM), which fall under varying laws which range from criminalization with heavy penalties to formalized sectors.
Artisanal mining is poverty-driven and the proliferation of economically marginal ore bodies around the globe makes artisanal mining a subsistence activity that no amount of legislation can eradicate. It is imperative that a solution which benefits the artisanal miners and that is ecologically sustainable be developed. The Communal Areas Management Programme For Indigenous Resources (CAMPFIRE) established in Zimbabwe is an example of such a win-win solution. CAMPFIRE considers wildlife as a renewable natural resource and allocates the ownership of this natural resource to indigenous people in and around conservation protected areas. The formalization of the artisanal mining sector in Zimbabwe should emulate such a model by allocating ownership of mineral resources to the communities around them. CAMPFIRE has been so successful that is now being implemented in parts of Asia.
Formalizing the end of poverty for artisanal miners
The formalization of artisanal mining can be beneficial to all stakeholders if implemented correctly. The objectives of formalizing are to ensure that a win-win scenario is created for the miners, the environment, the communities and the government, to achieve good governance, transparency of mineral production and trade while ensuring that social requirements are met and the environment is protected. Formalization will also generate revenues for both the individuals and the communities through royalties and other taxes.
The four pillars of artisanal mining formalization
Formalization should be based on four strategic pillars. The first pillar should be poverty alleviation by complementing livelihoods sustained by subsistence farming and cattle rearing. The creation of a fair market that will buy the minerals at fair value will give artisanal miners the opportunity to participate fully in the whole economy and, thus, enhance the overall multiplier effects on the local economy.
The second pillar is the creation of a good business climate that is attractive to artisanal miners by providing incentives and extension services through various Government departments. The third pillar is to ensure sustainability through environmental and occupational health management. Artisanal miners will be expected to strictly abide with environmental and mining regulations.
The fourth would be the stabilization of government revenues from the artisanal mining by sustainably managing mining taxation revenues and promoting opportunities for adding value to mineral production in the country while ensuring minerals are not traded through the black market.
A typical formalization programme would follow these steps: firstly, the legalization of artisanal mining by drawing up a ministerial policy on artisanal mining which will be used as a guideline by law-makers in formulating laws that regulate artisanal mining. The second step would then be to grant mining titles after carrying out environmental and social impact assessments.
The third step is to support the artisanal mining sector through both direct and indirect incentives. Direct incentives include access to finance and direct subsidies while indirect incentives include relaxation of taxes and technical assistance. Additionally, artisanal miners will be able to use formal markets, formal banking systems and the legality of their operations as a marketing argument with fair trade organizations. Finally, the artisanal miners should be well organized in unions, cooperatives and partnerships to secure their titles, attract investment and obtain loans.
Blogpost by Norman Mukwakwami
Blogpost edited by Codrin Paveliuc-Olariu
Picture courtesy REUTERS/Goran Tomasevic
