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4K Artisanal and Small-Scale Mining (ASM)

Contents in this section:

This section provides guidance to support sites in understanding impacts and risks related to artisanal and small-scale mining (ASM) and the approaches that can be taken to manage such risks and impacts, with the objective of fostering positive relationships where this is feasible.

Effective assessment and management of ASM risks and impacts is context specific. Done well, it can contribute to the health, safety and security of all stakeholders, establishing trust and positive relationships with local communities and ASM-related stakeholders, ensuring uninterrupted site activities, and enhancing site reputation.

Conversely, if not well managed, ASM-related risks and impacts can increase tensions with local communities and ASM-related stakeholders, result in violence or human rights abuses, adversely affect employees’ safety, disrupt site activities and damage a site’s reputation. It must be noted that some ASM activity is illegal or controlled by criminals. In these circumstances, particular caution is required.

Box 4K.1 Key international standards and requirements

ICMM, Performance Principle 9.4:

“Collaborate with government, where appropriate, to support improvements in environmental and social practices of local Artisanal and Small-scale Mining (ASM).”

IRMA, Responsible Mining Standard, Chapter 3.6 (abbreviated):

Objective: “To avoid conflict and, where possible within the scope of national law, foster positive relationships between large-scale mines and artisanal and small-scale mining (ASM) entities, and support the development of ASM that provides positive livelihood opportunities and is protective of human rights, health, safety and the environment.”

Requirements:

  • Understand the ASM context
  • Engage with ASM entities and communities
  • Foster Positive Relationships and Opportunities for ASM and Communities, i.e. security forces are trained in VPs, demonstrate considerations for enhancing opportunities for positive impact of ASM
  • Perform Due Diligence in Commercial Relationships with ASM, where applicable

RJC, Code of Practices, requirement 35:

“Members in the mining sector shall, where artisanal and small-scale mining (ASM) not under their control occurs within their areas of operation:

  • a. Engage directly with the ASM community as appropriate and seek to maintain a continuous dialogue with them as a distinct group within the stakeholder engagement programme (COP 32 Stakeholder engagement), social and environmental impact assessment and ongoing risk management activities (COP 34 Impact assessment).
  • b. Actively participate in initiatives, including multi-stakeholder ones, that enable the professionalisation, formalisation and certification of ASM, as appropriate to the situation.”

Additional standards, requirements, and guidance are presented in the Tools Section below.

This section is aligned with international standards, requirements and guidance on ASM, including guidance by the International Council on Mining and Metals (ICMM), the Initiative for Responsible Mining Assurance (IRMA), the Responsible Jewellery Council (RJC) and others. Other standards that apply to ASM include the International Finance Corporation Performance Standards (IFC PS) relating to Assessment and Management of Environmental and Social Risks and Impacts (PS1), Community Health, Safety and Security (PS4), and Land Acquisition and Involuntary Resettlement (PS5).

International guidance and standards require that, at a minimum, the ASM context and dynamics are understood, engagement with ASM stakeholders is conducted, and ASM-related risks and impacts are identified and managed. Where legal and other factors permit, there may also be situations where the site should evaluate the merits of supporting or facilitating the formalisation and professionalisation of ASM, in collaboration with the host-country Government and other relevant actors.

Where ASM is present on a site’s concession or in the site’s Area of Influence, the site is required to identify, assess and manage ASM-related impacts and risks. This requirement applies across all stages of the asset lifecycle.

Specifically, this section:

  • Highlights core definitions and concepts relating to ASM and interacting with ASM
  • Provides an overview of good practice guidance and standards relating to engagement with ASM
  • Provides guidance on how to analyse and understand the context and dynamics of ASM
  • Outlines how to identify, assess and manage ASM-related impacts and risks
  • Provides guidance on how to identify and engage with ASM stakeholders
  • Describes the process of determining an ASM management approach and the development and implementation of an ASM Management Plan
  • Details specific considerations for economic or physical displacement of ASM stakeholders
  • Details the external partnerships required as well as the internal coordination and cross-functional collaboration needed in the context of ASM

Intended users

The management of ASM requires a multi-disciplinary approach. The intended users of this section include Social Performance, Security, Legal, Safety, Health and Environment, Risk Management and Government Relations. In some circumstances, Business Unit or Group level actors such as Corporate Relations and Legal may also need to be involved.

Relevance to other sections

ASM management is interconnected with and supported by other components and sections of the Social Way Toolkit:

  • Governance (Section 1)
    • Section 1 provides guidance on social performance management and resourcing. It establishes the Social Performance Management Committee (SPMC) as the main governance structure supporting cross-functional collaboration in developing, implementing and monitoring the ASM Management Plan (as relevant) and reviewing ASM-related impacts and risks.
  • Review and Planning (Section 2)
    • Sites should include ASM-related information in the internal and external context review. Sites should also consider ASM actors when assessing systemic vulnerability.
  • Engagement and Analysis (Section 3)
    • A. Stakeholder engagement (3A) - ASM management requires engagement with a broad range of stakeholders. The Stakeholder Engagement Plan (SEP) should include specific approaches for engagement with ASM-related stakeholders, including for those directly involved in ASM.
    • B. Incident and Grievance Management (3B) - Sites should ensure that stakeholders involved in ASM are able to access the grievance process and that grievances and incidents related to ASM are addressed.
    • C. Social and Human Rights Impacts and Risk Analysis (SHIRA) (3C) - Sites should include ASM-related impacts and risks in SHIRA.
  • Impact and Risk Prevention and Management (Section 4)
    • A. Socio-Economic Development (SED) (4A) - SED programmes and/or projects can help control, prevent or mitigate risks and impacts related to ASM. Where SED programmes and/or projects form part of a site’s approach to ASM management, these should be incorporated in the site’s SED Plan.
    • C. Community Health and Safety (CHS) Management (4C) - ASM activities can adversely impact the health and safety of site staff, contractors, local communities, and those directly involved in ASM. Mitigation measures around community health and safety impacts to ASM-related stakeholders (related to the site’s presence and activities) should be included or referenced in the site’s CHS management plan.
    • D. Emergency Preparedness and Response Planning (EPRP) (4D) - Stakeholders involved in ASM can cause and/or be the victim of site-induced emergencies. An example of an ASM-related emergency is pit wall failure or collapse of tunnels and galleries in ASM workings on or off-site property, caused by site vibrations and blasting. Relevant ASM-related emergencies should be incorporated into the site’s EPRP.
    • E. Security Management and the Voluntary Principles on Security and Human Rights (4E) - Site security services must adhere to the Voluntary Principles on Security and Human Rights when engaging with stakeholders involved in ASM. Potential human rights impacts related to the interaction between security services and ASM stakeholders should be assessed and managed as part of SHIRA.
    • F. Land Access, Displacement and Resettlement (4F) - Eligible ASM stakeholders may need to be economically or physically displaced. This should be managed using the process for land access, displacement and resettlement outlined in section 4F.
    • G. Site-Induced Migration (4G) - Where ASM is a component of site-induced migration (SIM) this should be included in the site’s analysis and management of SIM.
    • I. Indigenous Peoples (4I) - In some cases, ASM is a traditional livelihood activity of indigenous peoples. In other cases, ASM by other stakeholder groups may impact on Indigenous Peoples.
    • J. Conflict Management (4J) - ASM can be a source of conflict between a site and ASM-related stakeholders, within communities, and with government authorities and should therefore be considered in the site’s conflict analysis and management approach as appropriate.
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