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Formalization, certification, and technology: the complex landscape of artisanal and small-scale gold mining interventions in Peru
Martinez, Gerardo
Martinez, Gerardo
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2022
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Abstract
In recent years, the lucrative nature of artisanal and small-scale gold mining (ASGM) has attracted millions of people from rural and developing communities who are seeking economic opportunities. This has caused a widespread, exponential expansion of the ASGM sector globally. Current estimates suggest that ASGM, generally characterized by low-tech, labor-intensive mineral extraction and processing, provides direct employment to 20 million people and millions more indirectly. ASGM occurs in over 70 countries, generating approximately 20% of the global annual gold production. Despite the ASGM sector providing a livelihood for millions of people in rural communities, the social and environmental issues associated with the sector overshadow its economic importance leading to the exclusion of the sector in regional and national development plans.
In the last decades, the formalization of ASGM activities has become a key strategy for governments and policymakers to better govern and regulate the sector. Proponents of formalization argue that the social and environmental issues associated with the ASGM sector are largely due to the lack of regulation and ASGM activities taking place outside the legal sphere. However, examples of analyzing formalized operations are scarce as most research has focused on the viability of formalization itself and the various barriers to entry. As governments continue to focus on formalizing as many miners as possible, there is a lack of emphasis on what comes after formalization and how to transform the sector into a more sustainable livelihood. This dissertation is a compilation of four research articles which seek to answer the following research questions:
1. What are the outcomes of ASGM formalization and are state-led efforts sustainable?
2. Are voluntary gold certification programs a viable mechanism to enhance ASGM formalization efforts and improve the sector?
3. What are the prevailing issues after becoming formalized and how to overcome them to achieve sustainable ASGM formalization?
This dissertation informs these questions with four research activities:
A case study of formalized ASGM operations in the Puno region of Peru: The Peruvian government has made great strides on simplifying the ASGM formalization process in hopes to formalize the greatest number of miners possible. The Puno region of Peru leads the country with the greatest number of formalized miners. Formalization efforts proved to have mixed results. In what can be considered a successful case of formalization, miners were able to obtain all the necessary permits, legal titles, and complete all the formalization requirements. Although formal miners were able to operate peacefully without being subject to government-led military interventions, miners remain frustrated with the lack of technical support and lack of channels to access capital. Rather than miners feeling more protected by the state, miners feel more pursued and scrutinized than when they operated informally.
A critical assessment of voluntary gold certification programs and their impact on improving rural livelihoods and minimizing environmental impacts: Voluntary gold certification programs, created and administered by international NGOs, have emerged as a solution to the social and environmental issues associated with the ASGM sector. This research critically examines the practical impacts when certification is achieved and examines the shortcomings and pitfalls. This research concludes that voluntary gold certification programs are providing miners with economic incentives that are driving the implementation of better environmental management and health and safety practices. However, there are challenges that will have to be overcome for small-scale mining organizations to achieve and maintain certification status.
A critical examination of gravity separation and concentration interventions implemented in the ASGM sector: As ASGM continues to expand, it has raised concerns about mercury use leading to an increased number of projects designed to reduce or eliminate the use of mercury in ASGM. Through a critical examination of the gravity separation and concentration interventions that have been globally implemented in ASGM, the shortcomings and challenges for artisanal miners are addressed. This research highlights how gravity concentration can reduce the amount of material to be amalgamated or treated thermally or chemically to extract gold from concentrates. However, it also concludes that this process has the potential to eliminate the use of mercury in very rare, specific cases. Ultimately, this research concludes that although gravity concentration can drastically reduce the use of mercury and its release into the environment, it is not the final solution to eliminate mercury use in ASGM.
A three-pillar, bottom-up framework to achieve sustainable formalization: The sustainability of top-down ASGM formalization efforts relies on the retention of artisanal miners in the legal sphere as well as the transformation of rudimentary miners into educated, responsible miners. This research examines formalized ASGM operations in three of the most important ASGM regions of Peru (Arequipa, Puno, and Madre de Dios) to identify some of the remaining challenges faced by formal miners. This research developed a bottom-up framework incorporating miner’s perspectives that can be used to guide capacity building initiatives to prevent miners from reverting to informality. The framework concludes that although solutions to improve formalized operations must be site-specific, there are overarching themes which formal miners continue to struggle with regardless of geographic location or time accumulated in the legal sphere.
Collectively these studies conclude that formalization alone is unsustainable, as miners who achieve formalization feel more pursued and scrutinized than miners who continue to operate informally. In addition, formalization policy cannot exist without education, training, and capacity-building initiatives, otherwise governments cannot expect miner’s rudimentary practices to transform into clean, environmentally responsible practices. However, NGOs and their voluntary gold certification programs have the potential to enhance formalization efforts by providing miners with technical support and market-based incentives for compliance with environmentally and socially responsible mining practices. This research also highlights that the technical interventions implemented to reduce or eliminate mercury use in the ASGM sector have overly emphasized gravity methods, which cannot be seen as the final solution for all ASGM operations. This dissertation calls on governments, policymakers, donors, and civil society actors to place a greater emphasis on educating and supporting formal miners beyond technical improvements to ensure mid to long-term sustainability and social development.
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