Africa Capacity Building Peer Exchange on Artisanal and Small Scale Mining
Strengthening the capacity of EITI implementing countries multi-stakeholder groups to disclose and use ASM related data
Presentation slides now available below the programme in the field Supporting document(s)
Background and context
Artisanal and Small Scale Mining (ASM) is widespread across Africa and is a huge economic contributor. Estimates suggest that over 40 million people are directly involved in the sector. Given that ASM is largely a livelihood activity, the reach of the sector is much higher, with estimates indicating as high as over 150 million people benefit from the sector indirectly. ASM activity in Africa is predominatly related to gold mining, although there is also huge involvement in gemstones, construction and industrial minerals as well as critical minerals such as cobalt and lithium.
With arguably low barriers to entry, the ASM sector creates jobs and livelihood oppportunities for many. However, given that the sector is often unregulated, the ASM sector contributes to environmental damage and negative social impacts and is prone to occupational health and safety (OHS) hazards. Conflicts and tensions among ASM miners and between ASM and large scale miners also characterise the sector and often escalate during mining booms and commodity rushes. The scale of revenue leakages is also singificantly high, particularly as the sector is dominated by unlicensed artisanal miners over which regulatory authorities have limited oversight. ASM is therefore, a huge contributor to illicit financial flows The high value to weight ratio makes precious minerals such as gold and diamonds, ideal for smuggling across porous borders on the continent.
The ASM sector is also involves a complex web of actors including the claim holders, ‘sponsors’, miners who are responsible for mining the ore, service providers and buyers. In some cases the sector is also characterised by political and economic elite capture and a concentration of politically exposed persons. There is broad consensus that efforts to solely criminalise ASM have not worked. Over the years, efforts by governments, industry and non- governmental organisations have been directed towards ASM formalisation.
EITI Disclosures and ASM
EITI implementing countries have, to varying degrees, made disclosures related to ASM. There has long been a recognition that disclosures of the extractive sector are not complete without an overview of the ASM sector. The 2023 EITI Standard provides for ASM related disclosures. Requirement 2.1 notes that where applicable, implementing countries are encouraged to disclose policies related to the artisanal and small-scale mining sector, as well as information on planned or ongoing reforms. The Standard also requires disclosure of an estimate of production, exports and GDP contribution of ASM activities under Requirements 3.2,3.3 and 6.1. Multi-stakeholder groups are required to consider including ASM related activities in their workplans and in public debate activities, where this is applicable.
Objectives
To strengthen the capacity of multi-stakeholder groups to disclose and use ASM related data, the EITI International Secretariat Africa teams are holding two peer learning sessions on ASM. The objectives of these sessions are:
- Raising awareness on the characteristics and scale of ASM mining in EITI implementing countries.
- Raising awareness on the ASM related EITI requirements in the 2023 EITI Standard.
- Facilitate peer learning across EITI implementing countries in the region based on ASM disclosures in EITI reports, ASM thematic reports and the inclusion of ASM aspects in EITI workplans.
Session 1
Economic Contribution
Environmental and Social Impacts
Regulation efforts
