The benefits of artisanal mining
16.06.16
Diamonds have been an important engine of development and growth in many countries. For example, Botswana and Sierra Leone were both low-income countries in 1970; with significant diamond resources. Eventually, thriving diamond industry in both countries made them two of the fastest growing economies in the world.
According to the World Bank, up to 20% of the world’s high-quality diamonds (as well as 80% of global sapphire and 20% of gold) are produced by artisanal miners.
Artisanal mining, also known as small-scale mining (ASM), refers to informal mining activities carried out using low technology or minimal machinery. It relies on simple techniques and physical labour; with about 100 million miners working across 80 developing countries worldwide. Overall, such unsupervised and non-mechanised operation results in low productivity and, in fact, can be very dangerous: at least six thousand workers are killed each year in small illegal Chinese coal mines alone.
In Africa, Asia, Oceania, Central and South America, the sector represents an important livelihood and income source for poverty-affected communities, ensuring the existence for millions of families in rural areas. Practically, there are only seven million people worldwide in industrial mining; while the number of people depending on artisanal mining is about 14 times higher.
Artisanal mining can lead to job creation for millions of people. Since 1999, the industry has grown from ten million to supposedly over 20-30 million in 2013. Such increase provides a reasonable policy ground for promoting a job agenda, focusing on providing the necessary knowledge, technological resources, social protection and fair labour standards to increase productivity. Consequently, this can lead to rural development and help rural households build more effective livelihood strategies.
ASM also provides better market connections. According to the International Institute for Environment and Development (IIED), approximately 15-20% of global metals and minerals derive from artisanal mining. Through globalisation of mining processes, remote or even isolated resource-rich areas (in sub-Saharan Africa, Latin and South America, and South East Asia) have become new known sources of raw materials.
Overall, despite some substantial drawbacks that include a number of environmental, legal and ethical concerns; ASM has a great potential. If supervised and regulated, the sector can contribute to development by providing employment, stimulating economic growth, increasing local purchasing power and slowing urban migration.
Image: artisanal gold miners in Sierra Lione (thevelvetrocket.com)
Facts and statistics are taken from the World Bank website.
