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4K.1 About ASM

Contents in this section:

The term ASM defines formal or informal mining operations that use predominantly simplified methods of mineral exploration, extraction, aggregation, processing and transportation. In general, ASM is characterised by low capital intensity, low use of technology, and high labour intensity. ASM can encompass different types of organisational structures, from individual men, women, boys or girls, to families or smaller groups, to associations or small enterprises, up to groups of hundreds or thousands of individuals. Levels of mechanisation can range from non-mechanised tools (e.g. pickaxes, shovels), to smaller degrees of mechanisation (e.g. motor pumps, ventilation, metal detectors), up to semi-mechanised operations using excavators, crushers, sluices, dredges, etc. The difference between ‘artisanal’, ‘small-scale’, and ‘semi-mechanised’ mining is usually defined in national mining legislation, based on criteria such as type of equipment used, depth of workings, size of surface area, volumes produced or level of formality.

There are at least 40 million people directly engaged in ASM globally, and around 150 million people depend indirectly on ASM as a livelihood. ASM is also an important supplier of minerals, with an estimated production of 20% of globally mined gold, 80% of sapphires, about a quarter of tin and tantalum1 and 20% of gem-quality diamonds2,

ASM is driven by poverty and opportunity. Many choose to work in ASM due to poverty and unemployment and the lack of access to other livelihood activities. ASM is often the alternative livelihood of population groups that are illiterate, unskilled, landless, or otherwise marginalised. At the same time, economic opportunity is a strong pull factor as ASM can provide, or be perceived to provide, higher incomes than other livelihoods. ASM is often conducted in addition to other livelihood activities or in times of economic or seasonal stress. ASM can be a driver of local economic development, which is increasingly recognised by governments and development agencies.

Many involved in ASM identify as ‘professional miners’ and cannot envisage working in other sectors due to their job history or aspirations. They carry out ASM to continue a traditional form of livelihood of their local community or their ethnic group, or because ASM offers an opportunity to climb up the social ladder through the accumulation of wealth and political influence, leadership of small enterprises, or ability to educate their children.

ASM can be associated with human rights issues such as child labour, forced labour, torture and cruel, inhuman and degrading treatment, as well as unsafe working conditions, significant impacts on health and safety, and environmental damage. Because it is often conducted informally or illegally, the ASM sector is prone to exploitation through corrupt practices of public officials, criminal elements or armed groups, which can be connected to extortion, financing of crimes or conflict, money laundering, smuggling, or tax evasion.

ASM activities often occur on a scale of formality, as illustrated in Table 4K.1. “Illegal” ASM operations refers to activities that are explicitly forbidden by law, such as mining in a protected area or on a concession over which a private owner or large-scale mining company has exclusive rights. “Informal” ASM refers to activities that are located outside explicitly prohibited areas but where legal or permit requirements are not developed or are unclear. In such cases, ASM is not necessarily illegal, because it is not explicitly forbidden, but the law may be violated by not having the necessary permits or by not having conducted an environmental assessment, for example. Most legal frameworks specify the consequence for infractions. There are often no clear boundaries between the categories of ‘legality’ illustrated in Table 4K.1 and ASM activities can move between these categories or fall under two or more categories at the same time.3

Table 4K.1 Possible status of the ASM sector

Legal Context4 Status of ASM sector
A legal framework for ASM exists, is actively implemented, and is enforced by the competent authorities. Legal
A legal framework for ASM exists, but it is neither actively implemented nor enforced. Legitimate
A specific framework for ASM does not exist. Informal
Explicitly prohibited by law Illegal
Not taking place in accordance with the law Illicit
Financing or supporting criminal activities Criminal

ASM often occurs where large-scale mining (LSM) also operates. ASM may have occurred historically and may have been present even before the LSM operator obtained their mineral rights. In other cases, ASM may be attracted to the area by the presence of LSM as part of site-induced in-migration. Interactions between LSM and ASM can take a variety of forms, ranging from open competition and conflict over land or mineral resources, to collaboration in the form of business-to-business partnerships.

LSM often see ASM interactions as a challenge due to potential competition over mineral resources. LSM operators may consider themselves the rightful owners of the mineral, while ASM operators may also consider themselves as having a legitimate (if not formal) claim to these resources, for example due to their history in the area, their embeddedness within local communities, or due to the perception that LSM is only benefiting ‘foreigners’ and government elites. In such situations, LSM may face incursions and trespassing by ASM on their concession, theft of minerals, threats to safety and security of employees and contractors, as well as damage to their infrastructure, equipment and assets. LSM may also be held liable for safety, social and environmental issues occurring on their concession, so poor ASM practices may pose a regulatory, financial and reputational risk too.

Such risks and impacts need to be handled carefully, as mismanagement of ASM interactions can further damage relationships, increase tensions, or result in allegations of human rights abuses. On the other hand, positive relationships between LSM and ASM can mitigate these risks, and can in some cases be turned into opportunities where a variety of scales of mining can harmoniously co-exist in an area.

The management of interactions between LSM and ASM and the management of related risks and impacts is complex and usually cannot be achieved by one site or company acting alone. It requires collaboration with other actors from the host-country Government, civil society or private sector, or the establishment of or participation in multi-stakeholder initiatives.

Box 4K.2 Misconceptions about ASM

Effective management of ASM can be hampered by misconceptions or misunderstandings, including:

  • Focussing on the ASM workers (‘diggers’) only: Those working directly on ASM sites are the most visible part of broader economic and social networks related to ASM, but ASM typically consists of a larger system of influence involving many different actors, who have leverage over when, where and how ASM is conducted. This system of ASM and the stakeholders within it need to be understood in order to design a comprehensive management approach.
  • Thinking that ‘alternative livelihoods’ are the solution to ASM: In many cases, ASM already is the alternative livelihood for those working in ASM and provides more income quicker than any other available livelihood activities. In short, there is typically a significant incentive to keep working in ASM.
  • Not considering the broader political or social dynamics of ASM: ASM is sometimes politically motivated. For example, youths may seek to break free of traditional hierarchies and expectations by engaging in ASM activities, politicians may seek to raise cash for the next electoral campaign through ASM activities, or ASM miners may see the ASM sector as a way of resisting large and/or foreign enterprises or a corrupt state. Such political dynamics should inform engagement with and management of ASM.
  • Assume that the ASM context is static: Dynamics around ASM can be extremely fluid, resulting in an ever changing ASM context. This should be monitored on a continuous basis and engagement and management approaches should be adjusted to the new context as needed.

Lifecycle planning

Potential risks and impacts related to ASM should be assessed and managed throughout all lifecycle stages, including exploration/discovery, project development, construction, operation, care and maintenance, closure and post-closure.

BOX 4K.3 Closure planning: social transition

Planning for closure should assess the impacts, risks and opportunities related to ASM. Where relevant, sites should involve ASM stakeholders in the process of planning for closure, post-closure and rehabilitation.

Assessment of risks and impacts relating to ASM should consider the risk of ASM activity starting on closed or rehabilitated areas and the additional liabilities this could create. Controls should be built into closure and rehabilitation planning to avoid or minimise this risk.

1 IGF and IIED (2017) Global Trends in Artisanal and Small-Scale Mining (ASM): A review of key numbers and issues. Available at: https://www.iisd.org/sites/default/files/publications/igf-asm-global-trends.pdf [Accessed 28 November 2019]

2 Diamond Development Initiative. Transforming Artisanal and Small-scale Diamond Mining. Available at: http://ddiglobal.org/what-we-do-overview/ [Accessed 18 August 2020]

3 Hruschka, Felix (2013) Illegal Mining - a Factual or Conceptual Threat? Available at: http://goxi.org/profiles/blogs/asm-pace-launches-its-latest-guest-blog-illegal-mining-a-factual [Accessed 18 August 2020]

4 Derived from Alliance for Responsible Mining. (2018) Code of Risk-mitigation for artisanal and small-scale mining engaging in Formal Trade version 1. Available at https://www.responsiblemines.org/wp-content/uploads/2018/08/2018-07-31-CRAFT-Code-v-1.0-EN.pdf [Accessed 20 March 2020].

5 Term defined by the OECD. OECD Due Diligence Guidance or Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. Available at: https://www.oecd.org/corporate/mne/mining.htm [Accessed on 18 August 2020]

4K Artisanal and small-scale mining (ASM) | 4K.1 Introduction
4.Impact and risk prevention and management  |  4K Artisanal and small-scale mining (ASM)  |  4K.1 Introduction