PAC-Day2-3TGKigali2013
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Presentation by PAC on ASM gold. ...

Presentation by PAC on ASM gold.

Day 2 of the 6th ICGLR-OECD-UN GoE Forum on responsible mineral supply chains, 13 November 2013.

Visit: http://mneguidelines.oecd.org/icglr-oecd-un-forum-kigali-2013.htm

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PAC-Day2-3TGKigali2013 Presentation Transcript

  • 1. PAC Gold Project (supported by PPA)
  • 2. Challenge  Illegal Exportation of DRC Gold  12-17 million tonnes/year (Group of Experts  Legal Exports < 1 tonne  Most gold exported illegally via neighbouring countries  Tax loss  2% royalty= $800,000 tonne  $8 million (@10 tonnes)  Conflict Financing ICGLR
  • 3. Project Goals  Legal Exports  Legally export a significant quantiy (>=1kg) of artisanally produced DRC gold  Create Traceable Mineral Chain for Gold  Traceable gold mine site to export  Formalise/Legalize Artisanal Producers  Eliminate Conflict in Project Areas  Use power of NGO/OECD to focus attention on project areas  Pilot Project – Try out new techniques  Experiment to see what works  How to apply Annex 1 in real world situation  How to scale up ICGLR
  • 4. Project Assumptions  Gold is Different  Easily Fungible (gold=money; money=gold)  Easily Smuggled (unlike cassiterite)  Easily bought/sold (unlike diamonds)  Positive Inducements only  Dodd Frank/ OECD have little to no effect  Cannot force gold into legal channels  Have to coax gold into legal channels  Work with Existing Chain/Actors  Minor tweaks only to existing mineral chain  Find inducements for diggers, negociants exporters to participate  Work collaboratively with government, industy in place ICGLR
  • 5. The Grand Bet  Technical Assistance in exchange for Legal Sales  Have to coax gold into legal channels  PAC agrees to provide technical assistance and equipment to diggers to help them increase their production (yield) of gold  In return, miners agree to sell gold through identified, legal channels  Higher Yields make up for Lower Price  Diggers will receive less per gram for legally sold gold  Higher yields possible with PAC equipment will make up for lower price  This is the Grand Bet ICGLR
  • 6. Project Phases  Research Phase - COMPLETE  Develop criteria for areas (axes) and sites  Baseline research into areas and sites  Enumeration (registration) Phase - COMPLETE  Detailed Data collection on diggers in identified areas  Specific site selction for productino phase  Production Phase  Study of sites, production methods  Recommendation/implementatino of technical assistance  Traceability Phase  Development, implementation of clean traceable gold chain  Legal exports to international market ICGLR
  • 7. Research Phase  Complete  April 2013  Criteria for Areas (Axes) and Sites  Reasonable production/digger population  No overlying mineral claims   Limited conflict   Bunia/Watsa eliminated due to Sokimo claims (20% royalty) Mambasa to Beni corridor elimated (Mai Mai Morgan taking Mambasa) Proximity to Population Centre (project base)  Preliminary Research  4 Axes identified (Bondo, Mangi, Nia-Nia-Wamba, Bole-Bole)  Baseline Research/mapping  25 sites; 3000 miners ICGLR
  • 8. Research Phase ICGLR
  • 9. Research Phase ICGLR
  • 10. Research Phase ICGLR
  • 11. Research Phase ICGLR
  • 12. Enumeration Phase  Complete  June-Sept 2013  Detailed Profile of Gold Exploitation  Joint registration teams (gov/industry/civil society)  Extensive visits to axes idenitified in research phase  Goal had been registration (carte creuseur) but Prov Gov not ready  Registration  enumeration  Results  >11,000 miners/negociants/auxiliaries enrolled in database  Detailed information on age, sex, income, years in trade ICGLR
  • 13. Enumeration Phase Age distribution 50% 44% 45% 40% 35% 30% 24% 25% 18% 20% 13% 15% 10% 5% 1% 0% < 18 18 - 25 25 - 35 Age Range ICGLR 35 - 45 > 45
  • 14. Enumeration Phase university 2% primary education 36% secondary education 62% ICGLR
  • 15. Enumeration Phase % Type of Work global Auxiliaries 30% Diggers 68% Traders 2% % GENDER TOTAL WOMEN 22% MEN 78% ICGLR
  • 16. Production Phase  Ongoing  Began Oct, 2013 with technical visit  Runs Oct-Dec 2013  Technical Visit  Oct 7-22, 2013  PAC teamed up with Artisanal Gold Council, Dr. Kevin Telmer  Field work in 2 sites – Mangi, PK25-PK51  Study geology, production methods  Devise, test, implement improvements in production methods  Study/sugget longer term interventions  Geology, environment, scaling, sustainability ICGLR
  • 17. Existing Technology-Mangi ICGLR
  • 18. Sluice - Mangi
  • 19. Panning Concentrate - Mangi
  • 20. Grain Size Analysis
  • 21. Grain Size Analysis Sieve Aperture (mm) Gold (g) % of Total 8 12 20 2.36 1.7 0.85 0.83 0.15 0.49 16.4 3.0 9.7 50 100 <100 Lost 0.30 0.15 <0.15 1.57 0.89 0.85 0.27 31.4 17.5 16.8 5.2 Fine Grain Gold (100, <100) is 34.3% of total!!!
  • 22. Improved Sluice
  • 23. Scavenger Sluice
  • 24. Collector Basin
  • 25. Concentrator – Vortex (Blue Bowl)
  • 26. Production Phase - Results  Results - Mangi  Grain size distribution indicates fine gold worth pursuing  Introduction of new sluice material, scavenger sluices, terminal basin  Introduction of sieving for limited grain size panning  Introduction of vortex for final concentrate processing Increase ICGLR in yield of approx 30%
  • 27. Production Phase - Rollout  Rollout Mangi Sluice carpets (thick and fine) for 50 teams being delivered  Sieves for 50 teams being delivered  PAC personnel on hand for training in new techniques  Excavation/safety material already delivered  Picks, shovels, gloves, boots,etc  ICGLR
  • 28. Production Phase – PK25-51  Results – PK25-51  More mechanized sites, extensive mercury use  Study indicates Introductino of:  Mechanized crushing  Better milling (non-octagonal mills)  Gravity separation (centrifuge)  Better sluicing (scavenger sluices)  Centralized tailings collection/treatment  Rollout PK25-51    ICGLR Full set of interventions beyond project budget Single step intervention under consideration (crushing) Predominance of Beni/Butembo negociants is complication
  • 29. Traceability Phase ICGLR
  • 30. Traceability Phase Mass Balance Approach Miners Registration of Production at Mine Site 1.5 kg month Registration of Sales at Negociant 1.0 kg month Negociants Exporter ICGLR Registration of Sales at Exporter 750 g month
  • 31. Traceability Phase Closed Pipe vs Mass Balance M Negociant Illegal Exporter Shop Keepers Negociants Negociant Exporter Shop Keepers Exporter
  • 32. Mass Balance Approach M Negociant Illegal Exporter Shop Keepers Negociants Negociant Exporter Shop Keepers Exporter
  • 33. Closed Pipe Approach M Negociant Illegal Exporter Shop Keepers Negociants Negociant Exporter Shop Keepers Exporter
  • 34. Scaling Up M Negociants 88% of World Price Pre-financing Exporter 10% margin (2.5% taxes) 98% of World Price??? ICGLR
  • 35. Scaling Up L o c a l D e v e l 2 % T e c h n A s s t 2 % T r a c e a b il it y 2 % M Pr e Fi n c n c e 1. 5 % Negociants 88% of World Price NGOREFINER ALLIANCE 10% margin (2.5% taxes) 98% of World Price
  • 36. PAC Gold Project (supported by PPA) Tracking, Certifying, Exporting Artisanal Gold from Eastern DRC