Artisanal and small-scale mining offers opportunities to generate jobs, reduce poverty, and provide livelihoods, but this sector has been largely ignored by policy-makers and donors, an UNCTAD official said. In addition, poor management of this sector contributes to serious health and environmental risks, said Yanchun Zhang from UNCTAD’s Special Unit on Commodities.

“Artisanal gold mining, which accounts for more than 10% of the global gold supply, releases an estimated 1,000 tons of toxic mercury per year,” she said at a three-day meeting on mining and the Sustainable Development Goals (SDGs) in Geneva from 24 to 28 October. Some 15 million gold miners, including 4.5 million women and 600,000 children, are exposed to mercury.

Hosted by UNCTAD, the Annual General Meeting of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF) welcomed 250 participants from 39 member and 14 non-member countries, plus representatives from international organizations, industry associations, companies and civil society.

The 56-member IGF discusses practical issues relating to the sustainable management and development of the mining sector. Its overarching objective is to enhance capacity for governance at all stages of the mining life cycle.

Mining continues to play a key role in the economic growth of several resource-rich developing countries, but this growth has often failed to generate any meaningful benefits for the countries’ populations. Artisanal mining may offer opportunities in this respect.

“As a labour-intensive mining process widely conducted on an informal basis, artisanal and small-scale mining is known to generate jobs, reduce poverty, and provide livelihoods for millions of people,” Ms. Zhang said.

“To a large extent, artisanal and small-scale miners remain ignored and marginalized by policy makers, donors, and the general public,” she added.

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New reports

The meeting saw the launch of a new report on the Role of Mining in National Economies (Romine), authored by Aidan Davy, Chief Operating Officer of the International Council on Mining and Metals (ICMM).

Past editions have drawn attention to the significant contribution of mining and metals to the global economy and to the economies of an increasing number of low- and middle-income countries. This third edition, produced at a time of considerable turbulence in international commodity markets, shows that despite the metals prices downturn a great many low and middle-income economies remain dependent on the mineral sector. A dependence jolted only slightly by the commodity markets downturn.

• Role of Mining in National Economies: Third edition (PDF, 5.6 MB)

• Role of Mining in National Economies: Third edition, supplement (PDF, 2.25 MB)

The meeting also saw the launch of a new report on the impact of automation on the shared-value paradigm, co-produced by the IISD and the Columbia Center for Sustainable Investment.

This report looks to the near and medium terms, exploring what will happen to the local employment and procurement components of the shared-value paradigm – and, by extension, to the mining companies’ social licence to operate – if technological change radically alters the amount of money mining firms are spending on hiring and procurement. It surveys the trends in technology development, and uses procurement and other data from two global mining firms to estimate the types of impacts we might see. It concludes by exploring the ways in which governments and firms might address the predicted results.

• Mining a Mirage? Reassessing the shared-value paradigm in light of the technological advances in the mining sector (PDF, 4.55 MB)

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Annual General Meeting 2016: Communiqué

The SDGS and Mining

The AGM discussed the ways in which the mining sector’s activities could be harmonized with the 17 SDGs. A number of SDGs were mentioned in particular as critical for attention by the mining sector. SDG 6 (clean water and sanitation) was highlighted, including the need to address water regulations in many countries and to recognize that water issues may lead to conflicts between local communities and industry. Links were made to SDG 8 (decent work and economic growth), which seeks diversified economies through local content, and SDG 16 (peace, justice and strong institutions), which addresses the prevention of tax evasion. SDG 17 (partnerships for the Goals) was noted as relevant, given the need to improve synergies among different parts of government, leverage public and private finance, sharing expertise and promoting international collaboration, and building partnerships. Dedicated panel discussions also focused on SDG 13 (climate change) and SDG 5 (gender).

A comparative analysis was presented on the degree of strategic alignment between the 17 SDGs and the MPF. The analysis revealed a number of strengths of the MPF as a sector-specific framework for achieving the SDGs by, for example, ensuring integrated social, economic and environmental assessments.

MPF Assessments

The AGM discussed the MPF assessment process, which focuses on helping the mining sector to make its maximum contribution to sustainable development within individual countries. The IGF Secretariat highlighted key projects and achievements from 2016, including ongoing assessments in Senegal, Mongolia and Suriname. In panel discussions with representatives from Senegal, Suriname, Uganda, and the Dominican Republic, the Secretariat was able to present recent experiences with the two-phase MPF assessment process. Discussions first focused on the value that the assessment process itself holds for participating countries, and then shifted to how countries have integrated assessment findings and strengthened capacities into mining law, policy and institutions. The Secretariat outlined what is expected of those countries that would like to request an MPF assessment, and presented its MPF work plan for 2017. There was agreement from the members to re-examine the MPF in future sessions in light of discussions on the SDGs.

Guidance for Governments

The finalized IGF Guidance for Governments on managing artisanal and small-scale mining was presented to members. An additional panel discussion on managing zones for artisanal mining was also held. Discussions were also held on the next Guidance for Governments on base erosion and profit sharing.

Closing Remarks

In closing, the IGF Chair thanked delegates for their participation and UNCTAD for its invitation to hold the next AGM in Geneva in late 2017. The dates for the meeting will be coordinated with the UNCTAD Secretariat in early 2017, and will be communicated to all stakeholders as soon as they are finalized.

The delegates thanked the International Institute for Sustainable Development for their work in managing the IGF during its transition and for enhancing the service it offers to members.