PLAN

The PLAN phase focuses on gathering internal and external context information and engaging with ASM stakeholders to be able to assess potential social and human rights impacts and risks related to ASM.

Reviewing the internal and external context related to ASM, ASM stakeholder engagement, and the development of an ASM Management Plan can be a time-consuming, resource-intensive and technically complex process, which may require outsourcing to consultants. Considerations for contracting an ASM consultant are provided in Box 4K.4

BOX 4K.4 Specialist support/outsourcing

Sites should consider the following when contracting specialist ASM support:

• The ASM specialist’s skills and experience should fill capacity gaps in the site’s internal team and be appropriate to the significant risks in the local context (e.g. child labour, illicit financial flows, corruption, youth politics, etc.) and the likely ASM management approach chosen by the site.
• The ASM specialist should have in-depth understanding of ASM and experience in managing relationships between LSM and ASM, or, have worked for LSM companies in a position where ASM issues needed to be considered. Where possible, the ASM specialist should have gained this experience in different ASM geographies and minerals to bring a high-level perspective to the assignment
• The ASM specialist should be familiar with international standards, requirements, guidance and examples of good practices around LSM-ASM relations and ASM management.
• The ASM specialist should have practical expertise in developing and applying corporate governance and management systems, including related policies, procedures and guidance.
• Expertise in specific issue areas may be required, such as child rights and addressing child labour in ASM, organisational capacity building around ASM formalisation, technical or engineering assistance around improving safety, health and environmental aspects in ASM, etc.
• The ASM specialist should ideally be familiar with the local context and regulatory environment, but should be impartial and trustworthy for all stakeholders
• The ASM specialist may not need to be familiar with the local context if they can work with a local partner who can bring this expertise. This also allows for a transfer of skills to local consultants, building their capacity for and utility in future ASM-LSM work.

Section 1, Governance, provides more detail on the use of consultants in social performance.

Task 1 – Review context

Sites should review and build upon the information collected as part of the internal and external context review in Section 2, Review and Planning, as a basis for assessing potential ASM-related impacts and risks. Table 4K.2 provides an overview of ASM-related internal and external information that should be collected.

Table 4K.2 Key aspects to consider in the internal and external context review

Topic	Key aspects
Legal and policy framework related to ASM	Can ASM have legal status in the jurisdiction? What are the types of mining allowed, and under which conditions? What is the process for ASM to become legal/formalised? Which permits are required, where can they be obtained? What are the costs involved (formal and informal fees)? How feasible is this process? Are there any barriers that ASM face? Is it reasonable to expect ASM to be fully legal or formalised? Which government agencies or actors are involved in monitoring, regulating and formalising the ASM sector, and what is their role? Are there any legal/formal ASM titles in the vicinity of the site? Does the legal framework allow giving part of an LSM concession area to ASM, or making formal agreements with ASM to become contractors or suppliers on a concession area? Does the government have a policy, strategy or plan related to the ASM sector and its formalisation, and what does it entail?
History of ASM	What is the history of ASM activity and land management in the area, including on the concession before site construction started? How has the ASM activity evolved over time – has it increased, decreased or remained stable? Are the ASM stakeholders, local community members or a result of influx? How is ASM viewed by the local community? What has the history of interaction between the ASM stakeholders and the project/operation been (particularly important in the case of acquisitions or the transition from exploration to project)?
Profile of ASM activities	Where does ASM happen in the Area of Influence? Can the location and extent be mapped (e.g. using GIS or satellite imagery) and tracked over time? What types of ASM activities exist on or near the concession? e.g. sporadic incursions and theft, large or sudden influxes, permanent ASM with built structures (shelter, storage spaces, etc)? What types of ASM activities are conducted on the concession? e.g. digging/tunnelling, handpicking/theft of ore or concentrate, handpicking/sieving of waste dumps or tailings, washing of ore in river. What types of ASM activity happen in neighbouring areas around the concession and the communities, and where? e.g. permanent ASM with built structures, seasonal ASM, sudden rushes. What equipment do ASM miners, concentrators and traders use (both on concession and in neighbouring areas)? e.g. non-mechanic, traditional tools (pickaxes, shovels, hammers, non-mechanical sluices, etc), small mechanisation (water pumps, ventilation), or more sophisticated mechanised tools (dredges, mechanised crushers, mechanised sluices, etc). The extent of mechanisation can be an indication of how powerful the investors behind ASM are. What legal status does the ASM activity outside the concession hold? e.g. illegal, informal, formal, legal, legitimate. In cases where ASM is not illegal but does not have a permit, what is the reason that ASM actors do not have the required permits? Are the ASM actors interested in, or have they tried to obtain the necessary permits? How many miners are active in which locations and what are their profiles (gender, age, ethnic groups, etc), by role in the mine (digging, crushing, washing, processing, pit manager, licence-holder, financiers, etc)?
Economic	Understand the production: What do ASM produce (on and off the concession)? What by-products are produced, and can they be utilised? What is the mineralisation grade they are targeting and why? How is the mineral aggregated, processed and transported? Understand the trade and financing: Map the mineral flow by geography, process and ownership: Where does the mineral go after extraction, after processing? e.g. team lead, aggregator/processor, local trading agent, trader/buying counter, refiner, exporter. At what point is it sold? Map the financing flow: Who is pre-financing ASM activities, how and based on what social or economic criteria? What are the predicted trends for the metal/mineral that is relevant for ASM; are pricing trends likely to increase ASM activity in the coming years? Understand motivations for ASM, and dependence on ASM for local livelihoods: Why do people engage in ASM? e.g. commodity prices, local economic crisis/increase in poverty, decline in agricultural livelihoods, seasonal cash needs. How many people depend directly or indirectly on ASM in the area? What other livelihoods and economic activities are viable locally? What is the role of women in the sector? What kinds of jobs do they perform (either directly in the sector or indirectly servicing the sector)? How does income from ASM compare with income from other livelihoods (amount, regularity, etc) and business activities? Understand land-use pressures and geological features of the area: is land available for ASM (where they could become formal operators), and is it geologically viable? Understand ASM’s contribution to the local economy: Do communities depend indirectly on income from ASM (e.g. by depending on the cash generated through ASM and spent in the local economy, including on food/beverages, housing and rental, transport, tools and equipment)?.
Environmental, health and safety, social issues	Understand working conditions at ASM mining, aggregating and processing sites, and risks for health and safety for both ASM actors and the community. Understand environmental impacts of ASM activities, including for neighbouring communities. Do ASM activities involve (worst forms of) child labour, compulsory labour, forced and bonded labour, forms of torture, cruel, inhuman and degrading treatment, other serious infringements of human rights, misuse of drugs, etc?
Internal context information	Life of Asset Plans (LOAPs), including site expansion, new surface rights granted or to be granted, changes in operational processes, and how these may affect ASM activities.