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“Recognition as a first step” Informality in artisanal mining


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A presentation on informality issues in artisanal and small-scale mining, by Professor Gavin Hilson, of the University of Surrey.

The presentation was made at a conference on "The biggest 'private sector': what place for the informal economy in green and inclusive growth?" on 25 February 2016.

The event was hosted by IIED and the Green Economy Coalition, WIEGO, the Center for International Forestry Research (CIFOR) and the OECD's Sahel and West Africa Club.

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Published in: Environment
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“Recognition as a first step” Informality in artisanal mining

  1. 1. Session 4: “Recognition as a first step” Informality in artisanal mining Professor Gavin Hilson, University of Surrey
  2. 2. A complex developmental challenge
  3. 3. ASM is on the rise Globally, the number of people engaged and dependent on artisanal and Small-scale mining is on the rise
  4. 4. ASM is beginning to be seen as a viable way to combat poverty and drive national economies the world over. Harnessing potential
  5. 5. Invest in ASM or large scale? • Gold produced from ASM (~100,000): ~1.3 million oz/yr • Capital investment: minimal • Recovery rate: 10-30% • Not supported as a viable business sector -- government sees little of that revenue • Potential recovery by ASM coops with investment of ~$2m : 50-60% • Gold produced nationally: ~1 million oz/yr • Capital investment: $billions ASM Dataestimates:GarethTaylor Large scale mining
  6. 6. Application procedure for a small-scale mining license in Ghana (adapted from Hilson, 2016) Step 1. Applicant identifies Area of interest Step 2. Applicant obtains a cartographic search report from the Minerals Commission to determine whether an area of interest is free or incumbent for the applicant to apply for a mineral right. Step 3. The Commission conducts a pre-licence site inspection to determine whether it is suitable for mining and verify accuracy of the site plan presented by the applicant. Step 4. Applicant purchases, completes and submits a Small Scale Mining License Application Form and supporting documents to the District Officer of Minerals Commission Step 5. The Metropolitan/ Municipal/ District (M/M/D) Assembly receives a request from the Minerals Commission to cause a publication of the application to be made in the offices of the M/M/D Chief Executive, the Local Information Center, Magistrate Court, Post Office, and such other places as he/she may deem necessary, for a period of 21 days to afford the general public the opportunity to examine the application and to react if necessary. Step 6. Metropolitan/Municipal/ District (MMD) Chief Executive responds to the Minerals Commission’s request Step 7. Applicant obtains an Environmental Permit from the Environmental Protection Agency ( EPA) and submits to the Minerals Commission Step 8. The Minerals Commission issues an Offer Letter with prescribed fees to be paid by the Applicant Step 9. The Commission prepares the Agreement upon receipt of EPA’s Environmental Permit Step 10. Applicant pays prescribed fees and signs his/her part of the Agreement at the Minerals Commission Step 11. The Commission forwards the signed agreement to the Sector Minister to sign on behalf of the Government of Ghana Step 12. Sector Minister reviews and Grants of Mineral Right to Applicant by signing on behalf of the Government of Ghana Step 13. On the receipt of the signed Agreement, the applicant is required to send the agreement to the High/ Supreme Court to swear an oath and obtain a Certificate of Proof. The applicant is required to stamp and register the agreement with the Land Valuation Board and Title Deeds Registry, respectively. Step 14. The applicant obtains an Operating Permit from the Inspectorate Division of the Minerals Commission, before any work on the concession area can commence. Key Barriers: A question of political will and state capacities
  7. 7. ASM in green and inclusive growth • Where does ASM fit in green growth? • Has LSM dominated the discussion on extractives in terms of ‘greening’ the sector (and added to the narrative that ASM is a relic of the brown economy)? • What is the evidence on formalisation of ASM in terms of greening and inclusion? Is it always necessary? Are there downsides, especially exclusion?
  8. 8. Jikssa Kidane Ministry of Mines, Petroleum and Natural Gas, Ethiopia Georgette Barnes Sakyi-Addo Ghana Women in Mining Recognition as first step Panelists: