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SDC Experiences with Formalization and Responsible Environmental Practices in Artisanal and Small-Scale Gold Mining in Latin

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SDC Experiences with Formalization and Responsible Environmental Practices in Artisanal and Small-Scale Gold Mining in Latin Contents Foreword 2 1. Summary 4 2. Preface 6 3. Introduction – What is Artisanal mining? 7 3.1. Relevance of the topic 7 3.2. Characteristics of ASGM 8 4. Responses to ASM 15 4.1. Response from Governments 15 4.2. Response from Large-Scale Mining 16 4.3. Responses from Development Agencies and Civil Society in general and SDC in particular 17 5. SDC experiences with ASM Formalization and Responsible Environmental Practices 20 5.1. Swiss supported ASGM Projects 20 5.2. Formalization approaches to environmental compliance 21 Approaches 2000-2001 23 5.3. Role of ASM organizations 26 5.4. Technical-environmental approaches towards compliance 27 5.5. Socio economic aspects, empowerment and human rights, conflict management 30 5.6. Convergence with market-based approaches 33 6. Environment impacts of SDC projects and lessons learnt 34 6.1. Attempt to estimate the achieved reduction of mercury emissions 34 6.2. Other positive impacts on health, safety and environmental performance 36 7. Recommendations and Conclusions 38 7.1. Technical solutions for reduction of mercury emissions from ASGM 38 7.2. Legal solutions for reduction of mercury emissions from ASGM 39 7.3. Social solutions for reduction of mercury emissions from ASGM 40 7.4. Global solutions for reduction of mercury emissions from ASGM 41 8. References and remarks 43 SDC experiences with ASM Formalization and Responsible Environmental Practices in Latin America and Asia (Mongolia) Foreword Fifteen million people worldwide – almost twice as many as Switzerland’s population – are dedicated to artisanal and small-scale gold mining (ASGM). Many more, approximately 100 million people, depend on this activity for their livelihood. Mostly all of them were driven into artisanal mining by poverty, and for many of them this activity has become an opportunity to escape poverty. The Federal Constitution stipulates that Switzerland “shall in particular assist in the alleviation of need and poverty in the world and promote respect for democracy and human rights, the peaceful co-existence of peoples, as well as the conservation of natural resources”. Increasingly over the past years, the international community has become aware of artisanal mining, and more often than not ASGM is perceived in the public opinion as a “problem”, related to resource conflicts, human rights violations, informality and severe environmental degradation through mercury emissions. SDC identified ASGM as a development topic some 20 years ago and since then supported a continuous series of projects in this sector. These projects demonstrated clearly that the core “problem” is not the artisanal way of mineral extraction, but the way how this sector is often dealt with. Marginalization and oppression of ASGM only drives it deeper into the informal sector and aggravates the social and environmental problems. Responsible ASGM in turn can be achieved within an enabling legal environment that promotes organization, formalization, implementations of best available technologies, rights and responsibilities, as well as local development and conservation of natural resources. The present paper summarizes the lessons learnt by SDC and its cooperation partners at governmental, institutional and community level during the past two decades. It is dedicated to the millions of artisanal miners and their families who deserve a life in dignity, and intended as a contribution to the common global goal of reducing mercury emissions. Maya Tissafi Deputy Director General, Head of the Corporate Domain Regional Cooperation 2 Swiss Agency for Development and Cooperation – SDC, 2011 SDC experiences with ASM Formalization and Responsible SDC experiences with ASM Formalization and Responsible Environmental Practices in Latin America and Asia (Mongolia) Environmental Practices in Latin America and Asia (Mongolia) Foreword Foreword Fifteen million people worldwide – almost twice as many as Switzerland’s population I am pleased to have the opportunity to write this foreword for the booklet from SDC, – are dedicated to artisanal and small-scale gold mining (ASGM). Many more, “ASM Best Practices in South American Countries and Mongolia”. approximately 100 million people, depend on this activity for their livelihood. Mostly The Ministry of Mineral Resources and Energy (MMRE) of Mongolia has been all of them were driven into artisanal mining by poverty, and for many of them this implementing the SAM project jointly with the Swiss Agency for Development and activity has become an opportunity to escape poverty. Cooperation since 2005. The Federal Constitution stipulates that Switzerland “shall in particular assist in the During this period, the two have focused on establishing an ASM legal framework, alleviation of need and poverty in the world and promote respect for democracy and introducing health and environmentally friendly techniques and technologies to ASM, human rights, the peaceful co-existence of peoples, as well as the conservation of elaborating and ensuring compliance with environmental rehabilitation standards, natural resources”. and organising artisanal miners into partnerships. Increasingly over the past years, the international community has become aware of Within the framework of capacity building for ASMs, both have been engaging with artisanal mining, and more often than not ASGM is perceived in the public opinion miners, local governments officials and experts in the field to provide a variety of as a “problem”, related to resource conflicts, human rights violations, informality and trainings in such areasas environmental rehabilitation, health, occupational safety, severe environmental degradation through mercury emissions. human rights and management. SDC identified ASGM as a development topic some 20 years ago and since then I am happy to note that in 2010, the Parliament of Mongolia included the statements supported a continuous series of projects in this sector. These projects demonstrated to the Minerals Law, and the Government of Mongolia approved the Regulation on clearly that the core “problem” is not the artisanal way of mineral extraction, but the the Extraction of Minerals from Small-Scale Mines which completed the small-scale way how this sector is often dealt with. Marginalization and oppression of ASGM only mining legal framework. drives it deeper into the informal sector and aggravates the social and environmental Project implementing parties have established a mercury-free gold-processing plant problems. Responsible ASGM in turn can be achieved within an enabling legal in Bornuur soum in Tuv aimag and another processing plant is being constructed in environment that promotes organization, formalization, implementations of best Bayankhongor aimag. available technologies, rights and responsibilities, as well as local development and At the local level, miners’ formalisation is in progress and some positive changes are conservation of natural resources. happening, such as rehabilitating already mined areas, which demonstrates that the The present paper summarizes the lessons learnt by SDC and its cooperation partners ASM operation is heading toward responsible ASM practice. at governmental, institutional and community level during the past two decades. It is dedicated to the millions of artisanal miners and their families who deserve a life May all good deeds prosper! in dignity, and intended as a contribution to the common global goal of reducing mercury emissions. Yours sincerely, Maya Tissafi Deputy Director General, Head of the D.Khurelbaatar, Corporate Domain Regional Cooperation State Secretary of MMRE of Mongolia 2 Swiss Agency for Development and Cooperation – SDC, 2011 Swiss Agency for Development and Cooperation – SDC, 2011 3 SDC experiences with ASM Formalization and Responsible Environmental Practices in Latin America and Asia (Mongolia) 1. Summary Artisanal and Small-scale Gold Mining (ASGM), carried out by an estimated number of 15 million miners, provides an approximate 100 million people with a living, and accounts for about 15% of the worldwide primary gold production. Global awareness about the importance and extension of this sector is rising and focusing on social and environmental responsibility. ASGM is usually a spontaneous self-organizing social system, while industrial mining is planned and centrally coordinated. Artisanal miners engage in mining to earn a living, while industrial mining is driven by corporate economic considerations. Miners focus on industrially not economic small high-grade mineral deposits in ‘open access’ condition, and employ a ‘common pool resources’ management approach. ASGM is an important source of local income and often drives local development. Low technologic levels, at the budget of rural communities, have however serious consequences on health, safety and environment. The widespread use of mercury is a matter of global concern. Legal frameworks (or their absence) and economic interests of power groups force ASGM in many countries into the informal sector. To address the issues related with ASGM appropriately, it is important to distinguish clearly between permanent and seasonal community mining, gold-rush situations, and people pushed into this activity as a last resort to cope with economic shocks. Given a certain complexity of the issues related with ASGM, a common approach of the past was to ignore and marginalize artisanal miners. This made problems and especially resource conflicts, e.g. between communities and industrial mining only worse. National
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