The Minerals Value Chain in Artisanal and Small-Scale Mining (ASM)

Artisanal and small-scale mining (ASM) plays a significant role in the global minerals supply chain. Accordingly, the sector provides employment and livelihood opportunities for millions of people worldwide. However, ASM is often associated with challenges related to environmental degradation, unsafe working conditions, and the exploitation of vulnerable communities. To address these issues and promote sustainable development, it is crucial to understand the minerals value chain in ASM.

Mining and Extraction

The minerals value chain in ASM begins with the mining and extraction of minerals from the earth. Artisanal miners typically use basic tools and techniques to extract minerals such as gold, diamonds, tin, tantalum, and coltan. However, the lack of proper equipment and knowledge often leads to inefficient and environmentally damaging extraction methods. For instance, the use of mercury and other harmful chemicals.

Sorting and Processing

After the minerals are extracted, they go through the sorting and processing stage. This involves separating the valuable minerals from the surrounding ore and other materials. In ASM, sorting and processing are often conducted manually, using rudimentary techniques. These approaches result in low recovery rates and increased waste generation.  

Transport and Trade

Transporting minerals from the mining site to markets is a critical stage in the ASM value chain. In many cases, this involves long and hazardous journeys, with minerals passing through multiple hands before reaching the global supply chain. Poor infrastructure, inadequate logistics, and lack of formalization can contribute to the loss of mineral value and increase the risk of illegal trade and exploitation

Mineral Processing and Refining

Mineral processing and refining are essential steps to enhance the value and marketability of minerals. In ASM, these processes are often limited or absent, leading to the export of unprocessed or semi-processed minerals. This not only results in the loss of potential economic benefits but also denies local communities the opportunity to participate in higher-value activities.

Market Access and Certification

Accessing formal markets and obtaining certification for responsibly produced minerals can significantly impact the value chain in ASM. Many consumers and companies are increasingly demanding minerals sourced through responsible practices to ensure ethical and sustainable supply chains. Certification schemes such as the Responsible Jewellery Council (RJC) or the Responsible Minerals Initiative (RMI) provide guidelines and standards for responsible mineral sourcing. Supporting ASM communities in meeting these standards and connecting them to certified markets can provide better prices for their minerals and contribute to long-term sustainability.

Conclusion

Understanding the minerals value chain in artisanal and small-scale mining is essential for promoting sustainable development and addressing the challenges associated with ASM. By focusing on responsible practices throughout the various stages of the value chain, we can minimize environmental degradation, improve working conditions, empower local communities, and enhance the economic benefits derived from mineral resources. Collaboration between governments, industry stakeholders, and civil society organizations is vital to implementing effective strategies and initiatives that support responsible ASM practices. Only through collective efforts can we ensure a fair and sustainable future for ASM and the communities it serves.