DISCUSSION PAPER

www.acetforafrica.org

Artisanal and small-scale mining:

the paradox of extraction
By Edward K. A. Brown and Elijah Kimani

Figures on artisanal miners are often lumped with small-scale operators.

Yet, understanding what motivates such miners or stops them from
becoming formal small-scale miners is a step towards addressing the
adverse consequences of artisanal mining.

T here are an estimated 9 million artisanal and

small-scale mining (ASM) operators and about
54 million dependants of the activity in Africa. ASM
policies and without proper recognition of these
nuances, any blanket policies targeting ASM will be
ineffective. Policy makers have to target artisanal
is the second largest employer after agriculture and mining or small-scale mining each on its own merit.
employs 10 times more miners than the large-scale
mining sector, producing 18% of Africa’s gold and One reason why they are lumped together may
almost all gemstones except diamonds. ASM has be due to the lack of credible or adequate data on
gained more prominence as a source of livelihood artisanal mining as a result of its informality. However,
over time, with the number of miners quadrupling informality notwithstanding, the significance of
between 1999 and 2014. In Eritrea and the Central artisanal miners should not be overlooked by
African Republic, for example, more than half the considering them as merely part of small-scale mining.
population is dependent on ASM. ASM affords higher There are significant differences in motivation and
income than agriculture, often provides employment ability between individual gold-panners rummaging
in depressed agricultural areas, and slows down rural- in open mine pits or river beds and incorporated
urban migration. groups that own mechanized processing capacity. As
it stands, it is hard to tell how much impact artisanal
miners have on the mining sector and how much any
Why it is important to separate policy adjustments targeting them specifically would
artisanal mining from small- affect the mining industry, even when it is known that
artisans make up the majority of the mining workforce.
scale mining A critical starting point in this debate is to define the
boundary beyond which an artisanal miner becomes a
The paragraph above is a typical introduction to
small-scale miner.
ASM literature but as gripping as the figures may be,
lumping together artisanal and small-scale mining In Ghana, for example, to get a five-year licence, small-
presents a challenge to policy prescription and scale miners have to pay the Minerals Commission
implementation. It is a foregone conclusion, going US$200 and also acquire an environmental permit
by most literature from global mining authorities and from the Environmental Protection Agency for
international institutions such as the World Bank, that US$1,435, which expires every two years. This
the two components of ASM should be addressed as would then give them access to at most 25 acres
one. The 9 million miners and 54 million dependants of demarcated mining areas where they can work
or the 18% of gold produced are not disaggregated to formally, under government supervision. However, the
identify which group plays what role. This challenge is bureaucracy and costs involved inhibit many miners
pointed out by the World Health Organization, calling from acquiring the required permits. These are the
to attention the inconsistency in definitions of ASM unregulated miners practising what is commonly
provided by the World Bank, the International Labour referred to as galamsey (illegal artisanal mining). These
Organisation (ILO), the United Nations Environment miners are mostly local individual entrepreneurs and
Programme (UNEP) and eminent scholars. The micro-enterprises using crude and basic technology
nuances in ASM are critical for formulating actionable such as pick-axes and shovels, requiring low capital

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Artisanal and small-scale mining: the paradox of extraction DISCUSSION PAPER

input, and often highly itinerant. On the other hand, Critical differences across
small-scale mining often involves some labour
substitution with capital due to the use of more regions and minerals
sophisticated technology such as excavators,
dredgers, metal detectors, sifters and crushers. In Mali, Burkina Faso, Guinea, Ghana, Sierra Leone
This relatively capital-intensive exercise increasingly and most of tropical West Africa, gold and diamond
attracts foreign ownership, pushing local miners into mining is mostly done on arable agricultural land. As
the periphery. a result, the presence of artisanal mining becomes
a threat to the agricultural sector and specifically
While it is common to view the distinction through threatens crop cultivation. In arid and semi-arid
the lens of formality, making the case that artisans areas like sections of eastern Ethiopia and the Sahel,
are informal while small-scale miners are formal, it ASM has marginal impact on agriculture but still
is difficult to agree on what constitutes formality in has environmental, social and health implications
this context. Depending on the jurisdiction, it may similar to those in arable areas. Even within a regional
imply government regulation, legal provisions for context, artisanal gold mining, which dominates ASM
the activities, or organized record keeping. Although discussions, poses a set of challenges different from
small-scale mining is legally recognized by most those posed by diamond and other gemstone mining.
jurisdictions and often regulated through licensing,
this is often not the case for artisanal mining. In Artisanal gold mining is a critical component of
Ghana, artisanal miners lack both legal recognition ASM as it results in displacement of farmlands,
and government regulation. While small-scale mining diversion and conversion of streams into mine sites
is legal and supposedly regulated, there are many for panning, and contamination of soil and water
small-scale miners operating without licences, which due to the use of mercury and cyanide in the gold
further confounds the distinction between the two amalgamation process. According to the Minamata
mining practices. In Tanzania, artisans – referred to Convention on Mercury, the use of mercury and
as Wavamizi (invaders) – are legally recognized by the cyanide in mining is unique to the gold mining process
2010 Mining Act. Legal recognition notwithstanding, and occurs mainly among artisanal miners. Small-
the artisans attract negative sentiments as the scale miners often have more advanced sifting and
government of Tanzania does not adequately regulate amalgamation techniques such as the use of sluices,
their mining activities, resulting in the perceived centrifuges and vibrating tables. When well regulated,
‘invasions’. In Ethiopia, artisanal miners are both mine tailings and mercury-gold alloy burning can
legally recognized and relatively well regulated. Given release minimal mercury particles to the environment.
the variations in governance in different countries, the Other minerals often do not require the use of
Ethiopian example may be hard to replicate elsewhere chemicals in the extraction process but still have
but provides a good case study on how artisanal other detrimental side effects, such as noise pollution
mining could be conducted. in the case of quarrying. However, all these minerals
result in lowering the groundwater table through
Mining in general is considered unsustainable due to dewatering of mine pits, hazardous abandoned sites
the non-renewable nature of the commodities and close to communities that become fertile breeding
the extractive nature of the industry. It is especially grounds for mosquitoes, societal challenges such as
the case for artisanal mining due to the itinerant child labour and gender inequality, and diversion of
nature of the artisans who move around, leaving a critical labour force that is vital for other sectors of
behind innumerable gaping holes, a manifestation the economy such as smallholder agriculture.
of the limited geoscientific information available
to them. Ultimately, the goal should be to pivot all In spite of the obvious negative side effects of both
miners into more sustainable sources of livelihood, artisanal and small-scale mining, the size of the
but first it is critical to curb the negative impact of populace that is dependent on the sector can be
artisanal mining. Understanding the artisans and very significant in some countries, making an outright
their motivations and what prevents them from ban of the practice politically unpopular and socially
becoming small-scale miners where they would untenable. There is urgent need for a practical and
benefit from government resources and regulations is sustainable solution but for that to happen, the
a step towards taming the adverse consequences of changing nature of ASM must be recognized, as the
artisanal mining. sector has seen a significant shift from artisanal
work into small-scale mining as a result of the entry
of foreigners with access to capital. This increased
labour-capital substitution reduces employment
opportunities for the local communities while still
churning out the same negative externalities. At the

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Artisanal and small-scale mining: the paradox of extraction DISCUSSION PAPER

same time, earnings from the sector are increasingly

financing investments and expenditure abroad and Farmer-miners of Sierra Leone
in regional hubs, with only a small portion of these
earnings trickling down to local communities. This Sierra Leone’s alluvial diamond mining (often
not only makes the detrimental aspects of ASM more referred to as ‘blood diamonds’ because of their
apparent but also weakens its justification as a source alleged role in the country’s prolonged civil war)
of low skill employment en masse. is critical to the economy. Diamonds have been a
major source of revenue since their discovery in
The ASM-agriculture nexus the 1930s, ranking third in exports after iron ore
and crustaceans in 2016. In 2014, artisanal mining
The nature of the relationship between agriculture contributed 36% of diamond mineral exports.
and artisanal mining is intricate, dynamic, and often
Unlike in many diamond-producing countries such
confrontational. Both practices can occupy the same
as South Africa and Botswana where diamonds
geographic space and share and/or compete for the
are mined deep in the earth’s crust, Sierra Leone’s
same factor inputs i.e. land, labour, water and capital.
diamonds are found on the surface, making them
The two activities tend to be mutually exclusive in such
easily accessible to artisans. Two river systems
regions, with increased mining resulting in destruction
– the Sewa, which flows through Kenema, Bo
of farmlands, pollution of waterways, reduction in
and Bonthe districts; and the Moa, which flows
arable land, reduction in agricultural productivity,
through Kenema and Pujehun districts – have over
decline in food security, and commandeering of the
time deposited diamonds over large areas in the
critical agrarian labour force. Given the unsustainability
south and east of the country. It is especially easy
of artisanal mining and the ballooning global demand
to find diamonds during the dry season when the
for food production, it is only prudent to rethink how to
rivers subside.
adjudicate this relationship.
Since these rivers flow through agricultural areas
There are rare instances of symbiosis between
rich in farmlands and swamps, mining and farming
agriculture and mining observed across Africa. In
activities dovetail smoothly. Using the volume
Mozambique, for example, 30% of those engaged
of mining licences issued as a proxy, the labour
in ASM in the townships of Niassa and Manica
allocation cycle is as follows:
use those earnings to supplement their seasonal
farming income in the dry season. In the township ff The peak period for mining licence issuance
of Chazuka, farmers buy fertilizer and crucial farm is between January and March, which
inputs using their earnings from artisanal mining. corresponds with the dry season when farms
The seasonal alternation between farming and are prepared for cultivation by clearing of
mining is also common in Sierra Leone, Kenema (see undergrowth, felling of trees and the burning
Box), Komana West in Mali, and East Akim in Ghana. of debris. While the vegetation is drying,
Similarly, in Geita, one of the oldest gold mining farmers can afford time to undertake diamond
districts in Tanzania, villagers invest their profits from mining, both licensed and illicit.
gold mining in agriculture, viewing it as their primary
economic activity even though gold mining provides ff In April, licence issuance declines as farmers
a higher income. In Liberia, rural inhabitants use shift labour towards preparing farms and
rice grown on their fields to attract artisanal miners sowing seeds. Farming activities increase in
who explore the same fields for diamonds and get intensity in anticipation of the rains in July
paid with rice pending any diamond finds, which and August. Farmer-miners spend this period
can then be split between the owners of the farms attending to their farms, growing subsistence
and the artisans. These cases are rare and although food crops and selling surpluses to the mining
their benefits pale in comparison to the adverse population in towns such as Koidu.
consequences of ASM, they point to possible areas
of consensus between the two sectors. ff From late September to November, the rice
crop is harvested and this requires intensive
Countries can create a more amicable relationship labour. Once harvesting is completed, labour
between the two sectors by formalizing and then shifts back to mining and there is a spike
legalizing artisanal mining to allow for monitoring and in the number of licences issued.
government regulation in order to lower the health
and environmental damage caused, and also by
actively incentivizing and nudging artisans towards
other sustainable activities such as agriculture.

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Artisanal and small-scale mining: the paradox of extraction DISCUSSION PAPER

Ethiopia’s handling of this conundrum can help inform

policy making in other countries. Ethiopia’s strategy
The Ethiopia case
is laudable but implementation is the core challenge.
How does a government effectively enforce the In Ethiopia, mining contributes about 10% of the
two-year contracts? How does it ensure that artisans country’s foreign exchange earnings. Two-thirds
have sustainable livelihoods elsewhere after exiting (65%) of mining is ASM, employing at least 1.26
the mines? The problem here is that if artisans million people and supporting the livelihood
cannot support themselves sustainably, they are of over 7.5 million. Of this mining labour force,
likely to return to illegal artisanal mining since they 43.2% is also involved in subsistence farming.
are no longer eligible for licences. Given that mining While these numbers are critical in benchmarking
communities in Ethiopia save less than 5% of their the size and importance of ASM activities, they
income to invest in other activities, this programme are likely to undervalue the earnings, given
likely rarely achieves its objectives. Some tweaking Ethiopia’s thriving local gold market and likely
of the programme could improve the outcome. The black market. Nevertheless, of note is the strong
government could implement a savings scheme e.g. encouragement by the government for artisans
matching the artisans’ savings to encourage more to use their income as seed money for other
saving, or withhold some of the income and release ventures.
the funds upon termination of mining contract. This
would provide a substantial lump sum which can be Policy interventions:
used as initial capital in a new venture. ff Legalize artisanal mining through two-year
non-renewable licenses; upon their expiry,
The problems associated with ASM are manifested in
artisans have to leave the areas that have been
different ways across countries. However, Ethiopia’s
zoned and demarcated for ASM activities.
fundamental policy changes can inform how other
countries go about harmonizing ASM and agriculture ff Conduct geological mapping and demarcation
in order to achieve sustainable growth. The key of land to halt encroachment on arable land
takeaways here are that there is need to: and suppress itinerancy.

ff Formalize the ASM sector to allow for monitoring ff Offer extension services and training to
and government regulation in order to lower the miners to ensure safe and environmentally
health risks and environmental damage that result sound practices that meet prescribed health
from ASM activities. standards.
ff Strengthen the legal market system to reduce
ff Strengthen institutional capacity to plug smuggling by guaranteeing a market and
regulation loopholes. This requires comprehensive prices to artisans through the National Bank
geological mapping and land use planning, of Ethiopia (NBE) and its designated regional
identifying areas with mineral reserve potential banks which are obliged to buy any minerals
and guiding the utilization of such land resources. (mainly gold) tendered.
In addition, the use of heavy earth-moving and
dredging equipment in artisanal mining sites Outcomes:
should be restricted.
ff Gold purchased by NBE increased from 500
ff Strictly enforce existing policies and regulations. kg in 2008/2009, to 8,200 kg in 2011/2012
The challenges to such enforcement are brought generating about US$300 million.
about by regulatory capture by vested interests, ff Gemstone harvesting increased from 3,000 kg
weak institutional capacity and weak coordination to 16,500 kg for the same period.
among development partners and government
entities that are in the ASM/agriculture space. ff Foreign exchange earnings from gemstones
rose from less than US$500,000 to about
ff Address the longstanding challenges confronting US$6 million.
smallholder agriculture such as financing, logistics
ff At the same time Ethiopia has seen substantial
and technical support. Making agriculture
growth in crop production, mostly driven by
attractive again will reverse the attrition of its
area expansion, increased yield, and enhanced
labour force.
productivity. A causal relationship cannot
be claimed as it is not clear whether the
expansion is in new unexplored areas or land
reclaimed from ASM activities.

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Artisanal and small-scale mining: the paradox of extraction DISCUSSION PAPER

Concluding observations
Unregulated ASM activities are irrefutably detrimental to the environment and threaten
agriculture and food security. However, the fact that millions of people are employed in
or depend on the sector cannot be ignored, but it offers few options that can provide
large-scale employment with relatively high income. This means careful consideration of
regulation, transition and exit from the sector is necessary. Regions where ASM activities
are carried out on arable agricultural land, such as in tropical West Africa, can use crop
farming as a means for these communities to pivot sustainably out of artisanal mining.
Where the soil profile and climate favour farming activities, conscious efforts should be
made to help miners shift into farming and this would entail changing some fundamental
aspects of agriculture in order to make it as appealing as mining. Shifting to agriculture
is not a panacea as many areas of ASM activity are not agriculturally viable, but farming
can be a crucial alternative in areas that are viable. Agriculture provides a clean and
sustainable way out and with a growing African population and accelerating rural-urban
migration, food production promises to remain a critical and resilient sector. Africa’s
tropics can be the world’s food basket and encouraging artisanal miners to gradually
trade their shovels for hoes is a step towards global food sustainability.

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