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A Golden Opportunity: Scoping Study of Artisanal and Small Scale Gold Mining in Zimbabwe

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A Golden Opportunity: Scoping Study of Artisanal and Small Scale Gold Mining in Zimbabwe pactworld.orgpactworld.org July 2015July 2015 pactworld.orgpactworld.org JulyJuly 20152015 AA Golden Golden Opportunity:Opportunity: ScopingScoping Study Study of Artisanal of Artisanal and Small Scale Gold Mining and Small Scale Gold Mining inin Zimbabwe in Zimbabwe SUBMITTED TO Phil Johnston Economic Adviser UK Department for International Development Zimbabwe British Embassy 3 Norfolk Road, Mount Pleasant, Harare, Zimbabwe TEL: +263 (0)4 8585 5375 E-MAIL: [email protected] UPDATED DOCUMENT SUBMITTED ON 22 June2015 SUBMITTED BY Pact Institute, 1828 L Street, NW, Suite 300 Washington, DC 20036, USA TEL: +1-202-466-5666 FAX: +1-202-466-5665 [email protected] CONTACT Peter Mudzwiti, ASM Scoping Study Lead E-MAIL: [email protected] Trevor Maisiri Country Director, Pact Zimbabwe TEL: +263 (0)4 250 942, +263 (0)772 414 465 E-MAIL: [email protected] ii Foreword Dear reader, We all rely on stereotypes to make sense of the world around us. The problem, of course, is that stereotypes aren’t always accurate. Many people believe that the typical artisanal gold miner in Zimbabwe is a single, migratory man in his early 20s who has no education, gambles away his money, and is likely to contract HIV. But the picture of the miners who participated in this study is rather different. In fact, mining is carried out by men, women, youth and children. The average miner is older and married with more children than non-miners in their community. They have more formal education, and earn and save more money than non-miners. And despite assumptions about lifestyles, miners are no more likely to be HIV-positive than non-miners. Another common perception is that artisanal miners always exist in conflict with large scale miners and the two sectors are “sworn enemies”. Instead, there is significant potential and appe- tite for co-existence, collaboration and working together amicably. In Zimbabwe today there is great willingness to enable such synergies to flourish. These are just some of the facts we can now put in writing — an important step forward as we plan interventions to improve and formalize small-scale gold mining to the benefit of all stake- holders across the mining sector. Zimbabwe’s artisanal miners – both men and women - need technical, social and environmental support and our results show that they are likely to make good use of such support. They need safer working conditions and business development skills to maximize the potential benefits of mining, and health support to minimize the risks of their work. Their families and communities must gain lasting benefit from the efficient and effective use of the natural resources around them. Thank you for reading this report. I hope it provides the solid foundation for interventions that will deliver prosperity through partnership across Zimbabwe’s mining sector. Mark Viso President and CEO Pact iii Acronyms AFSM Austrian Foundation for Small Mines AGC Artisanal Gold Council AMP artisanal mining permit AP approved prospector ASM artisanal and small-scale mining ASMO artisanal and small-scale mining organization BSAC British South Africa Company CAR Cordillera Administrative Region CBZ Commercial Bank of Zimbabwe CI confidence interval CID Criminal Investigation Department CIO Central Intelligence Organization COMZ Chamber of Mines Zimbabwe CSO civil society organizations CSR corporate social responsibility DFID UK Department for International Development DMP Draft Minerals Policy DP Digital Preservation DRC Democratic Republic of Congo EFT ethical and fair trade EIA environmental impact assessment EMA Environmental Management Agency EPO exclusive prospecting orders ESG environmental, social, and governance EU European Union FDI foreign direct investment FGD focus group discussions FIFA first-come, first-assessed FPR Fidelity Printers and Refinery GCECU Gold Compliance and Enforcement Coordinating Unit GDF Gold Development Fund GDP gross domestic product GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German Federal Enterprise for International Cooperation) GMMDT Gold Mining and Minerals Development Trust GMP Global Mercury Project GSZ Geological Survey of Zimbabwe GTZ Deutsche Gesellschaft für Technische Zusammenarbeit (German Technical Corporation) HDI Human Development Index iv Hg Mercury IIED International Institute for Environment and Development ILO International Labour Organization IMR Institute of Mining Research ITDG Intermediate Technology Development Group JOC Joint Operations Committee JORC Joint Ore Reserves Committee KII key informant interview LBMA London Bullion Market Association LSM large-scale mining LSMO large-scale mining organization M&E monitoring and evaluation MAB Mining Affairs Board MCIMS Mineral Cadastre Information Management System MEWC Ministry of Environment Water and Climate MGB Mines and Geosciences Bureau MHCW Ministry of Health and Child Welfare MIL Mining Investment Loan MMA Mines and Minerals Act MMCZ Minerals Marketing Corporation of Zimbabwe MMMD Ministry of Mines and Mining Development MMSD Mining, Minerals and Sustainable Development MOD Ministry of Defence MOF Ministry of Finance and Economic Development MOLG Ministry of Local Government MOSMECD Ministry of Small and Medium Enterprises and Cooperative Development MoWAGCD Ministry of Women Affairs, Gender and Community Development MRCZ Medical Research Council of Zimbabwe MSC most significant change MSME micro, small, and medium enterprise NAC National AIDS Council NBE National Bank of Ethiopia NGO nongovernmental organization NRB Natural Resources Board NSSA National Social Security Authority OPIC Overseas Private Investment Corporation OSH occupational safety and health PMMC Precious Minerals Marketing Company RBZ Reserve Bank of Zimbabwe RDC Rural District Council RJC Responsible Jewellery Council v RSI repetitive stress injuries SADC South African Development Community SAESSCAM Service for the Assistance and Supervision of Artisanal and Small-Scale Mining SAZ Standards Association of Zimbabwe SGBP state gold-buying program SI statutory instrument SMC Shamva Milling Centre SNV Stichting Nederlandse Vrijwilligers (Foundation of Netherlands Volunteers) SSM small-scale mining SSMAZ Small-Scale Miners Association of Zimbabwe UBC University of British Colombia UL Underwriters Laboratory UNECA United Nations Economic Commission for Africa UNICEF United Nations Children’s Fund UNIDO United Nations Industrial Development Organization USAID United States Agency for International Development VAT value-added tax WASH water, sanitation, and hygiene WCIF Workers Compensation Insurance Fund WHO World Health Organization ZASMC Zimbabwe Artisanal and Small-Scale for Sustainable Mining Council ZB Zimbank ZESA Zimbabwe Electricity Supply Authority ZETDC Zimbabwe Electricity Transmission and Distribution Company ZIMASCO Zimbabwe Mining and Smelting Company Zim-Asset Zimbabwe Agenda for Sustainable Socio-Economic Transformation ZIMRA Zimbabwe Revenue Authority ZINWA Zimbabwe National Water Authority ZMF Zimbabwe Miners Federation ZNA Zimbabwe National Army ZPA Zimbabwe Panners Association ZRP Zimbabwe Republic Police ZSM Zimbabwe School of Mines ZWRDT Zimbabwe Women Rural Development Trust Converting Between Grams and Ounces 1 gram of gold = 0.03215 troy ounce of gold 1 troy ounce of gold = 31.1 grams of gold vi vii Contents Acronyms .............................................................................................................. iv Converting Between Grams and Ounces......................................................... vi Executive Summary ............................................................................................. x The Scoping Study ............................................................................................... x Background ........................................................................................................... x Artisanal and Large-Scale Mining in Zimbabwe Over Time ......................... x Artisanal and Small-Scale Mining, Women, and the Environment ..............................................xi The Policy Framework ..........................................................................................................................................xi Scoping Study Findings .................................................................................... xii Scoping Study Recommendations .................................................................. xii Theme 1: Business and Economic Development ........................................... xii Component 1: ASM–LSM Collaboration ...................................................................................................xii Component 2: ASM Services ..........................................................................................................................xii Theme 2: Environment, Health, and Gender ................................................ xiii Component 3: Mercury Abatement ...........................................................................................................xiii Component 4: Women in Mining ..................................................................................................................xiii Theme 3: Policy .................................................................................................. xiii Component 5: Policy and Learning .............................................................................................................xiii chapter 1: introduction ...................................................1
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