Artisanal and Small-Scale Mining, DRC

Background | Project Objectives | Description

PROJECT STATUS: ACTIVE

PARTNER/CLIENT NAME: Anvil Mining Ltd., Nikanor, Tenke Fungurume Mining (TFM), Katanga Mining Ltd, Pact Congo, USAID’s Extractive Industries Global Development Alliance (GDA), IFC Social Responsibility.

COUNTRY/REGION: Democratic Republic of Congo, Africa

COMMUNITY DEVELOPMENT FOCUS: ASM, Local Supply Chain Development, SME, Livelihood Alternatives in Agriculture and Micro-Enterprise, Environment, Human Rights, Labour, Education and Skills.

MINING SECTOR: Copper 

BACKGROUND

In the Democratic Republic of Congo (DRC) mining is entering a period of transition as the country emerges from conflict and the improved investment climate begins to attract international mining companies. Years of decline in commercial, largely parastatal output, and the subsequent rise of the informal mining sector, have contributed to the high level of employment in illegal mining activity and significant vested interest in illegal trade. Conflict between the new commercial, foreign, actors and the subsistence diggers and entrenched illegal/informal traders has increasing social tension in Katanga province.

In Katanga, and especially in and around the city of Kolwezi, pressure on sites is increasing as companies seek to claim exclusive rights to the concessions that they have been granted by the government despite the six to eight years presence of artisanal miners operating illegally. Due to lack of government capacity and poor practices, the regulatory environment is weak and the available instruments (such as the Mining Code) are not enforced. Environmental impacts are significant and inefficient artisanal mining practices result in the ‘high grading’ of sites rendering them commercially unattractive as the highest value and most accessible ores are stripped.

Worldwide, at least 13 million people (1 million of which are children) from over 30 developing countries engage in artisanal and small-scale mining and a further 80-100 million people depend on this sector for their livelihood. Artisanal and small-scale miners typically have limited rights, and often expose themselves to harsh working and living conditions in a high-risk context. Nonetheless, involvement in this activity continues to expand. Artisanal and small-scale mining is both poverty driven and poverty alleviating and its continuing attraction is the opportunity it provides to many to secure their household’s survival, however minimalist.

PROJECT OBJECTIVES

The purpose of this project is to develop an integrated approach to ASM and to achieve a broad consensus among key stakeholders on a strategic roadmap aimed at improving the lives of the artisanal and small-scale miners while developing their relationships with the larger mining operations in and around Kolwezi, Katanga.

The plan will present a vision of a sustainable community, benefiting from the economic activity generated by legal and responsible mineral extraction, processing and trade at several scales, where artisanal mining is one activity within a broad range of livelihoods. The plan developed and implemented for Kolwezi will be a potential model for other parts of the industry in Katanga, and the DRC in general.

The following objectives will be achieved through a series of research, stakeholder engagement and capacity building activities:

• identify how artisanal mining can be managed as a legal, responsible, safe and efficient livelihood opportunity which is integrated into the sustainable social and economic development of Kolwezi;
• analyse and articulate the economic needs of artisanal miners, map market opportunities, and develop practical recommendations for alternative livelihoods, including SME and supply chain development;
• engage stakeholders across all sectors and create an association for consultation and dissemination of information;
• contribute to the immediate and long-term resolution of existing and potential conflicts; and
• address the specific issues faced by women and children in the context of artisanal mining.

Transforming artisanal mining into sustainable mining and developing alternative livelihoods rests upon meeting several objectives at the same time (establishing enabling conditions for sustainable artisanal mining; alleviating technical and financial constraints; improving the environmental, living and working conditions of miners, etc.) and the proactive engagement of several key players (government, artisanal miners' associations, international mining companies, non government organizations, international donor agencies, etc.).

DESCRIPTION

The project will focus on six main areas that are expected to assist artisanal miners in the Kolwezi area to participate in a peaceful, economically viable and sustainable transition from current illegal activities. The project will research the potential of these interventions and will present a realistic plan for addressing their development:

1. Mine employment (including basic training programmes in anticipation of employment in modern mining operations);

2. Local supply chain development targeting artisanal miners and women, and access to finance programs;

3. Livelihood alternatives in agriculture and micro-enterprise including a specific emphasis on support for women;

4. Co-habitation of safe, fair and responsible artisanal mining (e.g. establishment and responsible management of artisanal mining zones and processing/trade channels; expert support to government bodies such as Ministry of Mines and SAESSCAM, etc.);

5. Programs to improve the environmental standards being used in legal artisanal and small-scale mining activities; and

6. Appropriate vocational and alternative education opportunities for children for whom formal education is not currently an option.