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Trg product, asm presentation, cepmlp
1.
Defining that which
does not want to be defined: Artisanal and Small-scale Mining Leon Gerber International Comparative Mineral Law 10 November 2011 © Leonardus Gerber 1
2.
Outline
1. Defining ASM 2. Identifying the primary concerns 3. Obstacles to formal regulation 4. Addressing the concerns 5. Further reading http://practicalaction.org 2 © Leonardus Gerber
3.
1.
Defining ASM What is ASM and why is it a problem? Flexible nature of ASM makes it notoriously difficult to define Different countries, different definitions – depth, infrastructure, numbers etc. Ghana "small-scale gold mining operations" means the mining of gold by a method not involving substantial expenditure by an individual or group of persons not exceeding nine in number or by a co-operative society made up of ten or more persons. Article 21, Small-scale Gold Mining Act, 1989 Uganda "small-scale operations" means prospecting or mining operations which do not involve expenditure in excess of five hundred currency points or the use of specialised technology. Article 2, The Mining Act, 2003 Some distinction between ‘artisanal’ and ‘small-scale’ – generally considered mutually inclusive 3 © Leonardus Gerber
4.
1.
Defining ASM (cont.) Traditional ASM Characteristics: Communities have ready access Replaces other grassroots activities Family trait? Development out of own accord Difficulties: Consider extraction a right LSM concessions an infringement 4 © Leonardus Gerber
5.
1.
Defining ASM (cont.) Seasonal ASM Characteristics: Secondary means of livelihood Individuals/group migration Means of offsetting risk Difficulties: Migratory nature makes engagement difficult Regulation hampered by changing jurisdiction 5 © Leonardus Gerber
6.
1.
Defining ASM (cont.) Permanent co-habitation Characteristics: Often develops in proximity to LSM Recovery operations / abandoned areas Regular influx of miners whom might settle Outlive LSM operations? Difficulties: Mostly potential for illegal activities – trespassing, infringement of rights, theft, damage etc. 6 © Leonardus Gerber
7.
1.
Defining ASM (cont.) Shock ASM Characteristics: Sudden changes in economic / geographical factors • large scale economic collapse, unemployment, retrenchment • Natural disasters, continued draught Can be temporary for duration of factors May develop into complete substitute Difficulties: Similar to Influx 7 © Leonardus Gerber
8.
1.
Defining ASM (cont.) Influx ASM Characteristics: Sudden establishment of ASM due to discovery Contrast with shock ASM – absence of external economic / geographical factors Gold Rushes – Australia, South Africa, Brazil Miners might work together for specific buyer or pursue individual extraction Difficulties: Considerable concern to governments – large numbers vs small area Overwhelming of existing capacity for service delivery & infrastructure Difficult to engage & monitor – first stage of mining, disorganised 8 © Leonardus Gerber
9.
1.
Defining ASM (cont.) Phases in ASM Operational intensity Rush Operational Decline 9 Time © Leonardus Gerber
10.
1.
Defining ASM (cont.) Importance of phases Engagement with ASM dependent on phase Rush: Lack of coordination between AS Miners Need for LSM to engage? Declination: Little incentive to conform to compliance – short term benefits 10 © Leonardus Gerber
11.
1.
Defining ASM (cont.) So what is ASM?! Common characteristics: Regardless of variation in size operates outside of traditional legal corporate structures Resources extracted includes all but most difficult – tendency towards precious stones, gold & coal Methods and processes – manual labour, rudimentary equipment, low/no capital input Typically operate on fringes of law – when not subject to formalisation, exclusion per implication vs inclusion in broad legislation Significant presence in developing countries – 13-20 mill, 100 mill 11 © Leonardus Gerber
12.
1.
Defining ASM (cont.) Definition Extraction activities that tend to be subsistence based, technologically, mechanically and capital poor, although containing a large labour-intensive element, and which often operates on the border of the law 12 © Leonardus Gerber
13.
ASM (cont.) 13
http://www.ghana-mining.org
14.
2. Identifying the
primary concerns Majority of ASM illegal – more than 50% in some countries Criminal element debate – legality issue Must be recognised before it can be regulated Prohibition against engagement? Continued growth of ASM expected given high mineral commodity prices Governments do not recognise ASM as an economic sector Biased towards development of large scale mining ASM either ignored or stifled Lack of trust in authority, especially in the case of subsistence miners 14 © Leonardus Gerber
15.
2. Primary concerns
(cont.) The effects of a low-income revenue stream of ASM Low revenue Low savings from mining potential Inability to Low returns invest in tools and equipment Inability to Low productivity meet H&S Adapted from ICMM, Working Together: standards How Large-Scale Mining Can Engage with Artisanal and Small-Scale Miners) 15 © Leonardus Gerber
16.
3. Obstacles to
formal regulation Interrelated nature of concerns Lack of resources available to ASM Opposition from LSM Lack of state capacity Lack of political interest Lacunae identified in existing regulation: Delineating ASM No land available for ASM Regulations are too complex Implied application in over-arching legislation Lack of institutional capacity to implement regulations 16 Regulation may stifle ASM © Leonardus Gerber
17.
4. Addressing the
concerns Specific legislation: Framework needs to be sound and appropriate Simple, transparent process Have to provide for SHE matters in particular Provision for a single, well-resourced agency to regulate, as well as facilitate Encourage legal ASM operations, i.e. tax concessions or forgoing royalties Include community issues via secondary regulations Various publications exist, but focus on particular aspect of ASM: African Mining Vision CASM and World Bank projects (specifically Africa, Asia and China) DFID: Livelihood and policy studies in Artisanal mining ICMM: Working Together – How Large-scale mining can engage with ASM miners ILO Report: Social and Labour Issues in Small-scale Mines MMSD: Breaking New Ground 17 © Leonardus Gerber
18.
5.
Further reading UNECA, Compendium of Best Practices in Artisanal and Small-Scale Mining, http://www.uneca.org/sdd/Compendium%20on_best_practices_in_%20smallsacle%20.pdf. Andrews-Speed, P., Zamora, A., Rogers, C.D., Shen, L., Cao, S., and Yang. M. (2002). "A framework for policy formulation for small-scale mines: the case of coal in China," Natural Resources Forum, 26, pp. 43-52. Communities and artisanal & small-scale mining. A global partnership for action (CASM, 2008) at http://www.artisanalmining.org/userfiles/file/9th%20ACC/10th%20Session/CASMSept10PM_Sessio n9_GotthardWalser_AnnualProgressReport.pdf. Banchirigah, S.M., How have reforms fuelled the expansion of artisanal mining? Evidence from sub- Saharan Africa, 31 3 Resources Policy (2006) 165. Certification and Artisanal and Small-scale Mining: An Emerging Opportunity for Sustainable Development (CASM, 2008) at http://www.artisanalmining.org/userfiles/file/casm-fairtrade.pdf. Ali, S.H., Mining, the Environment, and Indigenous Development Conflicts (Tucson, USA: University of Arizona Press, 2003). Aryee, B.N.A et al, Trends in the small-scale mining of precious minerals in Ghana: a perspective on its environmental impact, 11 Journal of Cleaner Production (2003) 131. 18 © Leonardus Gerber
19.
5.
Further reading (cont.) Artisanal and Small-Scale Mining (ASM), CommDev, World Bank at http://commdev.org/section/topics/artisanal_mining. Hentschel, T., et al, Artisanal and Small-Scale Mining: Challenges and Opportunities (MMSD, 2003) at http://commdev.org/content/document/detail/1044/. AngloGold Ashanti, 2006 Annual Report: AngloGold Ashanti’s approach to artisanal and small-scale mining at http://www.anglogold.co.za/subwebs/informationforinvestors/reporttosociety06/artisanal- mining.htm. Vlassenroot, K et al (eds.), Artisinal diamond Mining: Perspectives and Challenges (Gent, Belgium: Academia Press, 2008). Barrick Gold Corporation, Porgera Joint Venture - Illegal Mining at http://www.barrick.com/CorporateResponsibility/KeyTopics/PorgeraJV/IllegalMining/default.aspx. CASM: Small Stories – 12 Stories about Small-Scale Mining () at http://www.artisanalmining.org/userfiles/file/CASMshortstoriesBooklet_FINAL_low.pdf. EITI, Advancing the EITI in the Mining Sector: A consultation with stakeholders (2009) at http://eiti.org/files/MINING%20Compressed.pdf. Hilson, M. (ed), The Socio-Economic Impacts of Artisanal and Small-Scale Mining in Developing 19 Countries (Lisse, The Netherlands: Swets & Zeitlinger, 2003). © Leonardus Gerber
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