Artisanal and Small Scale Mining ASM Policy Options




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Artisanal and Small Scale Mining: ASM Policy Options for DRC Mid-Size and Junior Miners Tim Hart SRK Consulting
Feedback from DRC Capacity Building Workshop – May 2006 Should Companies have an Individual or a Collective Approach to ASM? Develop unique approaches based on frank dialogue. Develop sound temporary strategies to maintain peace and order, including negotiation with miners. Artisanal miners in concession areas must have a specific contract with each company. Ensure that miners and the general population know about employment opportunities. Companies in defined areas might develop a common approach. At national level, develop a common policy that recognizes regional specificities. Develop general principles that address environmental impacts, transparency and human rights. Suggest to government that independent ore markets be eliminated Tim Hart SRK Consulting
Context • Mid-size and junior miners with limited or no DRC experience, and no corporate ASM policy or experience • Re-starting mines previously operated by Gecamines (most cases) • ASM in concessions – have no option but to address it • Different on-site circumstances: immediate conflicts of interest in some cases, longer term in others • Platform for ASM policy discussions is environmental authorisation (EAP in DRC, ESIA internationally) • Equator Principles and IFC Performance Standards a Background in some cases • Policy decisions early in mine development – decision support an option for CASM Tim Hart SRK Consulting
ASM Policy Options for Mid-Size and Junior Miners Investing in DRC Benefits: • No unauthorised miners • No conflicts of interest Risks: • Backlash/reprisal • Coercive actions • Reputational risk • Livelihood loss Co-exist with Artisanal Miners Benefits: • No removal • Arms length • Livelihoods Risks: • No control • Links with poor practices • Unauthorised Incorporate Artisanal Mining Benefits: • No removal • Some control • Livelihoods/devt Risks: • Mgt/security $ • Backlash/reprisal • Still control risks • Unauthorised Benefits: • Avoids removal • Optimises control • Legal • Livelihoods/devt Risks: • Too many to transform • Miners in noncore activities Remove Artisanal Miners Transform Artisanal Miners Tim Hart SRK Consulting