KEY POINTS
- Small-scale mining is essential for local economies, supporting millions of livelihoods.
- Environmental and health risks from unsafe practices pose significant challenges.
- Women in ASM face gender-based disparities in income and access to resources.
Around the world, especially in developing nations, small-scale mining, which is frequently artisanal in nature, is essential to local economies.
For millions of people, this type of mining, which involves both metallic and non-metallic resources, is a vital source of income.
Small-scale mining does, however, confront several obstacles in spite of its potential, ranging from financial constraints and regulatory obstacles to health and environmental hazards.
Here’s a closer look at the effects small-scale mining has on regional economies and the obstacles that must be removed for it to flourish sustainably.
Economic contributions and employment opportunities
Local economies greatly benefit from small-scale mining, also referred to as artisanal and small-scale mining (ASM). An estimated 40 million people worldwide rely on this industry for employment and income, while another 150 million are indirectly impacted.
ASM is a vital economic activity that gives individuals and communities financial stability and subsistence in areas with a shortage of official jobs.
It promotes growth from the ground up by providing vital minerals for regional industries. By generating secondary opportunities, such as trade and mining-related transportation services, ASM also boosts the economy.
Environmental and health risks for miners
ASM creates health and environmental risks even though it boosts local economies.
Especially in metallic mining, miners frequently lack access to modern equipment and safety precautions, which raises the possibility of mishaps and exposure to hazardous materials like mercury.
Environmental deterioration is widespread, with local ecosystems being impacted by practices like water contamination and deforestation.
Due to hazardous working circumstances, women in ASM are more exposed and face increased health risks. To safeguard miners and their communities, sustainable practices and safety procedures are essential.​
Gender inequality in the mining workforce
Although they comprise a significant share of the ASM workforce, women encounter gender-specific obstacles.
Research shows that women miners are frequently assigned to lower-paying jobs and take on more household duties, which makes it difficult for them to participate in society and the economy.
In addition, a lot of mining regulations are gender-blind, which prevents women from having equal access to opportunities and resources. For the ASM industry to be more successful and inclusive and to let women to fully participate in the mining economy, these inequities must be addressed.
Access to finance as a barrier to growth
In ASM, financial support is still a major obstacle. Due to exorbitant interest rates and their incapacity to furnish the required collateral, many artisanal miners are unable to obtain official finance.
These miners’ limited resources limit their ability to expand their businesses or buy better equipment, which lowers their potential for productivity and revenue.
Experts advise implementing venture capital projects and microfinance programs specifically designed for small-scale miners to help with this difficulty. By raising output and enhancing miner livelihoods, financial assistance might significantly boost local economies.​
Technological advancement for sustainable practices
ASM’s emerging technologies have the potential to enhance environmental impact, safety, and efficiency.
In addition to increasing productivity, the transition from manual to more automated procedures lowers environmental degradation and health hazards.
ASM operations can guarantee a safer and more sustainable mining process by implementing phase-specific instruments. Formalizing ASM through technology makes it more competitive and advantageous for local economies.​
Regulatory and formalization challenges
Regulatory frameworks for ASM are often inconsistent or outdated, leaving miners without adequate legal protection.
Formalizing ASM can secure rights and promote sustainable practices, yet many governments lack clear policies for small-scale mining.
Establishing clear regulations can protect miners, reduce environmental harm, and attract investment, fostering economic stability.
Countries leading in ASM regulation demonstrate the benefits of structured oversight, as it promotes compliance and improves operational standards within the sector​.
