December 2002, United Nations Economic Commission for Africa (UNECA)
The significant economic benefits to be reaped from small-scale mining (SSM) activities have recently been recognized by several African countries. Indeed, the potential of the sector to contribute significantly to socio-economic development is great. Such contributions include the decisive role it can play in:
(a) Poverty alleviation, especially in rural areas;
(b) Reducing rural-urban migration especially for the unemployed youth;
(c) Maintaining the vital link between people and the land;
(d) Creating alternative economic activities;
(e) Contributing to national incomes; and
(f) Contributing to state revenues.
From a technical standpoint, it encourages the regulated exploitation of otherwise uneconomical reserves and provides a lead to many discoveries of large-scale deposits. In addition, because SSM is usually labour intensive, it offers a greater opportunity for direct and indirect job creation than do large-scale operations, especially in rural areas. At the micro level, revenues generated from these activities increase local purchasing power as well as the demand for local products, e.g. food, working tools, housing, and furniture. In turn, this creates more employment in other economic sectors such as agriculture, carpentry, fabrication and foundry.
Nonetheless, as with many economic activities, SSM has its negative aspects. A largely itinerant, poorly educated populace with few other employment alternatives, living mostly in remote rural areas, carries out this activity. Often, the technology employed is rudimentary, and impact severely on the local environment and miners’ health. Health and safety standards are poor, and productivity and hence earnings are low. Security in camps and surrounding areas, illegal mining and marketing activities, and the use of child labour is prevalent.
Without financial resources and technical and management skills, miners can neither conduct systematic exploration of the mining areas, nor acquire adequate technico-economic information to allow long-term planning and adequate mining development. There are a number of factors, which contribute to the poor performance of the small-scale mining sector: These include lack of simple and transparent legal and fiscal frameworks, weak institutional structures; lack of capacity to implement existing regulations, and sometimes lack of political will. Inadequate support services and access to information and technology and restrictive marketing systems further contribute to making small-scale mining, not only unproductive, but also counter-productive.
Given the SSM potential, there is need to create a conducive environment, that fosters its development, encourages the application of best practices for mining, occupational health and safety, promotes environmental protection and discourage child labour and gender inequity.
Encouraging efforts are now being deployed by a number of African governments to maximize the positive impact of SSM activities on their respective economies. In countries such as Ghana, South Africa, Tanzania and Zimbabwe, best practices in SSM management and development have been identified. These can be replicated elsewhere on the continent.
This compendium is an attempt to capture these practices for dissemination across the continent. The language in the compendium is simple to facilitate reading by small-scale miners and related stakeholders. It should be considered a work in progress that requires continuous updating in tandem with the evolution and dynamics of the sector. The compendium was presented for validation to the joint ECA/UNDESA seminar on “Artisanal and Small-scale mining in Africa: Identifying Best Practices and Building the Sustainable Livelihoods of Communities” held in Yaounde, Cameroon, 19-22 November 2002. It incorporates some of its recommendations, particularly on the nexus of poverty and SSM. The terms of reference for this work included the need to:
- Identify “best practices” in production systems, environmental management, marketing, technical and financial assistance programmes, legal and regulatory frameworks and to maximize the SSM contribution to the creation and development of viable communities in Africa;
- Analyse the success factors and commonalities in such best practices;
- Carry out a desk-top study of relevant literature on small-scale mining that is specific to the African context, particularly works published locally that could fit into the broader context of the global discussion on SSM;
- Undertake, if necessary, field missions to small-scale mining sites where best practices have been reported;
- Evaluate how those best practices which have been identified promote viable community life and economies, especially in rural areas; and
- Draw lessons and recommendations for implementation elsewhere in the continent.
