Large and artisanal scale mine development: The case for autonomous co-existence

Abstract

This article contributes to the debate on conflicts between artisanal and small-scale mining (ASM) – low-tech, labour-intensive mineral extraction and processing – and capital-intensive large-scale mineral extraction in developing countries. It critiques the ability of what is referred to here as a strategy of cohabitation, or the idea that those engaged in both branches of the mining sector can and should forge amicable working partnerships, to resolve and prevent conflicts resulting from those engaged in the former encroaching on to, and working mineral deposits found within, concessions demarcated to parties involved in the latter. The idea that multinational companies extracting and/or exploring for gold – the mineral at the heart of most of these conflicts – should “allow” artisanal and small-scale operators to work particular areas of their concessions and that both parties can coexist in harmony is extremely short-sighted, far-fetched and untenable as a development strategy. As is explained, from the prospecting through to the production phase, an exploration/mining concession can change ownership several times and the global market price of gold can fluctuate markedly. Both factors heavily influence a gold mine's strategy, including management's perception and handling of ASM. Given these uncertainties, it is recommended that host governments and donors encourage the autonomous coexistence of both parties, an approach which would yield maximum returns economically and developmentally.