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Socio-technical evaluation of the interactions between large-scale (LSM) and artisanal and small-scale mining (ASM), Latin America
RodrÃguez-Novoa, Oscar Felipe
RodrÃguez-Novoa, Oscar Felipe
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2023
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Abstract
In mineral-rich areas of the developing world, artisanal and small-scale mining (ASM) contributes significantly to production of commodities such as gold. As a result of economic and environmental pressures, this sector is expanding. As the demand for minerals and metal resources increases, large-scale mining (LSM) will also need to expand to meet the future needs. LSM and ASM are likely to have more contact as a result of these expansions. Coexistence between ASM and LSM is key in this scenario and should be viewed as a capacity to build synergies and work together.
The first chapter of this dissertation presents a general introduction explaining the dissertation's perspective. Additionally, I explain the reasons and importance of considering coexistence prospectivity and conflict risk when identifying and ranking exploration and mining targets. This chapter concludes by presenting the background and general aspects of the ASM sector in Peru and Colombia.
In the second chapter, this dissertation tests the hypothesis that there are particular technical and social characteristics that are more likely to lead to an ASM-LSM coexistence arrangement that benefits both parties. By examining coexistence from the perspectives of economic geology, mining engineering, economics, the legal framework, and the demographics and culture of the community, this dissertation aims to identify potential indicators of successful coexistence, as well as to examine the socio-technical intersections of these characteristics. The study shows examples of ASM coexistence with junior and senior LSM companies, during the exploration, development, production, and closure stages of the mining lifecycle. Coexistence scenarios are most common in gold projects but cover a wide variety of deposit types including epithermal, porphyry and volcanogenic massive sulfide ore deposits (VMS) among others. Governments have taken significant efforts to create tools for LSM companies and holders of mining titles to reach agreements with ASM miners. Nevertheless, the success of these agreements largely depends on the willingness of the ASM and LSM parties to work together.
In the third chapter of this dissertation, success in coexistence is measured from the LSM perspective based on the cost of avoiding conflict using the decision-tree valuation model presented by Teschner and Holley (2020). The method is applied to a case study in Gramalote, Colombia where a coexistence agreement was developed between Gramalote Ltd (LSM) and small-scale mining companies referred to as La MarÃa. The study shows that application of ASM-LSM coexistence strategies can reduce the financial risk associated with social conflicts, add value to mining projects, and strongly impact the project´s net present value (NPV). Nevertheless, it is necessary for both parties to continue to manage the coexistence processes in the long run, in order to mitigate ongoing risk.
The Gramalote case study was also evaluated from the ASM community perspective, using the Sustainable Community Development framework of Bridger and Luloff (1999) and the United Nations Sustainable Development Goals (SDGs).
The study shows that coexistence with LSM contributes to the ASM community of La MarÃa by improving the conditions of Self-Reliance, Political Autonomy and Self Determination, Reduction of Materials and Energy, Protection of Local Ecosystems and Stewardship of Natural Resources, and Social Justice, defined as components of a sustainable community in the Bridger and Luloff Framework. Coexistence between LSM and ASM also can contribute to the fulfillment of the SDGs in parts of the Global South where the LSM mining industry is active, such as Colombia. The coexistence strategy of formalization subcontracts at La Maria have led to positive impacts on several SDGs including SDG6 clean water and sanitation, SDG8 decent work and economic growth, SDG14 life below water, SDG15 life on land and SDG17 partnerships for the goals, as well as potential medium- and long-term impacts on SDG1 no poverty, SDG2 zero hunger, SDG3 good health and well-being, SDG9 industry innovation and infrastructure, SDG10 Reduce inequalities, SDG11 sustainable cities and communities, SDG12 responsible consumption and production and SDG16 peace justice and strong institutions.
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