10

Addressing Labour and Social Issues in

Small-Scale Mining
NORMAN S.JENNINGS

Small-scale mining—labour-intensive, non-mechanized, artisanal mining—is estimated

to employ between 11.5 and 13 million people world-wide, mostly in developing
countries and often at a subsistence level. This number is, if anything, likely to increase
over time. Moreover, up to 100 million people are estimated to depend on small-scale
mining for their livelihoods.
The number employed in small-scale and large, formal mining is about the same but
there are important qualitative differences. Jobs in the small-scale mining industry are
often precarious and far from conforming with international labour standards; small-scale
mining is seldom a source of what the ILO calls “decent work”.
Like most economic activities, small-scale mining has positive and negative aspects. It
is closely linked to economic development, particularly in rural areas of developing
countries where it is prevalent; it can help stem rural-urban migration; it can make a
major contribution to foreign exchange earnings; it can enable the exploitation of what
might otherwise be uneconomic resources; and it can be a precursor to large-scale
mining. However, small-scale mining often exhibits many traits that are of concern to the
ILO and others who are working to assist it. These include: safety and health (at the
workplace and in the community), working conditions, child labour, gender and
development issues, labour inspection, training, workers’ rights (particularly in terms of
the lack of employment contracts or guaranteed wages), environmental concerns, and
community impoverishment.
While many authorities seek to discourage small-scale mining, labelling it as dirty,
dangerous, and damaging, efforts to eliminate it risk foundering on the bedrock of
economic necessity that drives people to take up, and continue to participate in, small-
scale mining altogether. For impoverished communities, it holds the promise of cash
earnings, but it tends to reinforce a vicious circle of appalling working conditions,
significant environmental damage, and poverty in the very communities whose survival
depends on sustainable small-scale mining.
This chapter examines briefly the extent to which the different labour and social issues
that affect small-scale mining are being, or should be, addressed, and how action has
evolved over the past few years so that small-scale mining can contribute to mineral
production in ways that provide decent work and lasting socio-economic benefits to those
involved and their communities.
 Addressing labour and social issues 141

WHAT IS PRODUCTED BY SMALL-SCALE MINES?

Small-scale mining is best known in relation to the production of gold and other high-
value metals and precious stones; it is a “gold-rush” type of activity that is newsworthy.
Furthermore, the more valuable the product, the better the prospects for a windfall, and
the more likely that miners will be willing to work far from home, even in cases without
work contracts or regular wages. Often, in exchange for hard labour, food and shelter are
provided, as well as promise of a percentage of the value of the material found; debt and
poverty are often the result.
Most minerals are mined on a small scale, albeit to varying degrees. Moreover, most
quarrying for building and road-working materials, especially in developing countries, is
carried out at small-scale mines. At such operations, people tend to work for wages,
generally based on production, for the quarry owner or the contractor who manages the
concession. In some countries—mainly in Asia—hundreds of thousands work at small-
scale coal mines. These workers also tend to be paid a wage, but there is often at least one
intermediary between the miner and the mine owner. In such cases, wages can be heavily
discounted. Responsibility is also diluted—for e.g., as far as working conditions, and
occupational safety and health are concerned—effectively to almost nothing.
As far as mineral production from small-scale mines is concerned, the longstanding
estimate of 15–20 per cent of global non-fuel minerals appears to be of the right order.
This output, which excludes coal, is produced by a workforce of about the same size as
that of the large-scale sector (which produces five to six times as much). In terms of high
value products, approximately one-sixth of the world’s diamonds are produced at
artisanal and small-scale mines, accounting for some US$1.2 billion a year; gold valued
at over US$200 million a year is produced by small-scale mines in at least six countries;
and, in certain countries, such as Zambia, some 15 per cent of emeralds are produced at
small-scale mines. In some countries, small-scale mine production exceeds that of large
mines, generally because of the nature of the deposits, or as a result of falling prices. In
the Democratic Republic of Congo, for example, even after the price of coltan dropped
dramatically, the “very low” labour cost at small-scale mines kept it profitable (UN
report, 2002, p. 21).

EMPLOYMENT AT SMALL-SCALE MINES

The difficulty in estimating the number of people engaged in small-scale mining arises
from its informal nature in many locations, the lack of official data, the transient and
seasonal nature of its activities, and problems of definition. Estimates by ILO in 1999 of
somewhere between 11.5 and 13 million people directly engaged in small-scale mining
(Fig. 10.1), with 80–100 million people directly depending on it, have not been seriously
challenged (ILO, 1999, p. 6).
The sporadic data that have been produced subsequently show that it is a reasonable
estimate, and one which is likely to increase rather than fall; in any event, it is significant,
even when compared to the workforce of formal mining operations, where over 3.5
million jobs were lost during the 1995–2000 period alone (ILO, 2002, p. 3). The small-
scale mining workforce often comprises women and children (the former sometimes in
 The socio-economic impacts of Artisanal and small-scale mining 142

the majority), is rarely organized by trade unions, and often has no recognizable contract
or guaranteed wage.

Figure 10.1 Employment in small-

scale mining.

AN ILO PERSPECTIVE

In 1999, through a report and a tripartite meeting, the ILO examined a variety of social
and labour issues at small-scale mines. The following elements of the conclusions from
the meeting highlight the action that a representative group of stakeholders considered is
needed to bring small-scale mining into the mainstream as a source of decent work and
sustainable livelihoods. The conclusions also show the extent to which assistance is
required—from governments, employers’ and workers’ organizations, donors, NGOs,
development agencies and financial institutions—to achieve sustained improvement
(ILO, 1999 May, p. 60), Some of this assistance is now being provided.

Safety and health

Health and safety are clearly important for both small-scale mineworkers and their
communities. While it is impossible to say how many deaths and injuries occur in small-
scale mining, due to under-reporting and the clandestine nature of much of the work, the
risks of fatal and disabling accidents are high. The risk of mining accidents, however real,
is not as acute as the health hazards and sickness found in many mining communities.
Silicosis and mercury poisoning are occupational hazards of many small-scale miners,
and extend to the entire community, including wives and children. The widespread lack
of access to health care makes it impossible to gauge the extent of these diseases. Other
infectious diseases are abound (See Chapter 13 for an overview of diseases in artisanal
and small-scale mining communities).
The lack of reliable data limits the development of effective assistance programmes
and the improvement of Occupational Safety and Health (OSH) performance; the major
 Addressing labour and social issues 143

OSH problems are well-known. Governments should be encouraged to establish a regime

of effective reporting on OSH in small-scale mining, placing emphasis on the prevention
of accidents and disease. Large mining companies and workers’ organizations should
share their methods and experiences with governments dealing with small-scale mining.
They should also co-operate with small-scale miners and their communities to increase
awareness of the benefits of safe and healthy mining, and set appropriate examples. Many
improvements in safety and health in small-scale mining require minimal investment,
which, in any case, is quickly paid back via higher productivity. Changes for the better
are frequently achieved merely by modifying work practices and work organization.

Women and small-scale mining

Although women constitute as much as 50 percent of the small-scale mining workforce—
compared with typically 5–10% of the formal mining workforce (including clerical and
administrative jobs)—they do not receive 50 percent of the rewards. There are many
barriers and constraints to women’s participation in the industry, not all of which are
gender-based. However, a female-specific approach may be necessary to overcome
existing imbalances between men and women in some aspects of small-scale mining.
Measures to improve women’s participation include the provision of schooling for
their children, and education for women themselves. Governments have the responsibility
of providing these services but in doing so, they may need to enlist the support of social
partners and other relevant bodies. In acting to increase women’s participation in small-
scale mining, governments should ensure that they do not inadvertently introduce other
forms of discrimination. Providing easier access to finance might quickly enable
women’s participation to increase.

Child labour and small-scale mining

Child labour, which is widespread in much of small-scale mining, is closely linked to
poverty. The more remote or informal the activity, the more likely children are to be
involved. Reliable data are scarce but this does not obscure the significance of the
problem. Make no mistake; children undertake all mining activities, often for little or no
pay, and to the detriment of their growth, intellect and health. They face a bleak future
unless steps are taken to reduce poverty, increase educational opportunities, and remove
them definitively from this hazardous work. Most child labour in small-scale mining can
be classified among the worst forms of child labour in terms of the ILO Convention (No.
182).1 Such child labour should be eliminated, and the ILO has programmes in all regions
to tackle child labour at small-scale mines.
Employers’ and workers’ organizations can help small-scale mining to become more
efficient, productive and prosperous, which would eliminate the “need” for child labour.
Governments must improve data collection using, where necessary, the resources and
expertise of IGOs and NGOs. The immediate removal of children from the most
hazardous work should be accompanied by measures to ensure that family income does
not suffer. This includes improving mine productivity, safety and health. For example, if
an adult is injured or becomes sick, children may well be brought back into the
workforce, despite having been removed under the terms of the Convention.
 The socio-economic impacts of Artisanal and small-scale mining 144

Legislation
The legal limbo of much small-scale mining prevents its recognition and leads to large
economic losses. The legalization of small-scale mining is a key step toward achieving
sustainability. However, to be effective, legislation must be even-handed, pragmatic and
user-friendly. The transparent issue and transfer of permits, and the minimizing of
bureaucracy, are important areas in need of attention. When regulations are being drafted,
those most concerned should be consulted and relevant examples from elsewhere taken
into account. Most importantly, regulations should be applied fully and without
distinction. The UN report on the Democratic Republic of the Congo cited earlier shows
the extent to which illegal activity, much of it in small-scale mining, can debilitate a
country’s resources.

LINKS BETWEEN LARGE AND SMALL MINES

There is often tension and a clash of interest between large and small mining parties.
There are also many challenges facing companies that open their doors to small-scale
mining. These include: avoiding an influx of small-scale miners and people looking for
work at the large mine who might turn to small-scale mining; ensuring that sufficient
resources exist to enable small-scale mining to continue for an agreed period; and getting
government agencies to accept and meet their responsibilities towards the community.
While private mining companies often play a role in community development, they
cannot be expected to replace the government. The expanding search for exploitable
mineral resources, particularly in developing countries, means that there is potential for
increased tension over mineral resources. Therefore, care is needed to establish the right
relationship between small-scale and large miners.
1
The Worst Forms of Child Labour Convention (No. 182), 1999. By November 2002, 132 of the
ILO’s 175 member States had ratified this Convention. The text of the Convention is at:
http://www.ilo.org/ilolex/english/convdispl.htm.

The technical information, best practices, OSH data and information that exist
throughout the mining industry should also be made available to those involved in small-
scale mining. Employee and workers’ organizations, particularly at the local level, should
assist small-scale miners improve their operations and the social conditions of their
communities. Donor assistance to mobilize efforts on behalf of small-scale mining should
be sought. Those concerned should see how they could act as mentors to small-scale
mines.

THE EVOLUTION OF ASSISTANCE TO SMALL-SCALE

MINING

Although small-scale mining activities have remained pretty much the same for decades,
waxing and waning with, for example, the availability of resources, price and the health
of the large-scale formal mining sector, approaches to assisting it have evolved over the
 Addressing labour and social issues 145

last 20 years or so. Essentially futile attempts to define and compartmentalize small-scale
mining in the 1970s were followed by a technical, productivity-linked approach in the
1980s, and by a broader socio-economic approach that involved environmental concerns
in the early-1990s. A focus on poverty, gender and child labour issues, culminating in
sustainable livelihood and community issues, was the approach at the turn of the century,
stimulated by the ILO report and meeting.
A hitherto largely ad hoc approach has constrained efforts to promote better
organization and work practices, increase the productivity of small-scale mines, and
lessen adverse labour and social effects. Erratic policy and decision-making has led to
confusion among administrators and managers of large and small mines, and has
sometimes caused conflict at mining locations. A lack of co-ordination in the provision of
assistance has not helped. Most projects to assist small-scale mining have failed or have
not led to lasting improvements because they treated small-scale mining as a sub-set of
large, formal mining. Most of the emphasis has been on finding technical solutions to
mining and processing problems, with little attention being paid to the underlying
economic, social and labour issues. Another factor in their relatively short-lived success
has been the low priority given by a number of governments to this sector.
The ILO meeting pointed out that any assistance to small-scale mining must take into
account the immediate needs of those involved and their communities. At the national
level, government leadership is central, particularly as far as permits, exploration, credit
and marketing are concerned. Governments should consider setting up national or local
consultative groups that could develop assistance and direct it to where it is needed most.
Governments should also be aware of the effects of their fiscal and other policies on
small-scale mining. Employers’ and workers’ organizations should use their considerable
expertise to assist small-scale mining—especially in developing countries—by providing
information, resources, training and technical assistance, such as the adaptation of
technology or equipment for use at small-scale mines, and marketing. The ILO and other
agencies should ensure that information on successful small-scale mining projects is
collected and disseminated. Technical approaches to increase productivity can pay long-
lasting dividends. Productivity growth is the major source of sustained improvements in
real incomes which, in turn, raise the demand for goods and services in the community
and beyond. It will also counterbalance any income effects of removing children from the
small-scale mining workforce.
The evolving focus on community issues was further stimulated by the establishment
of the Communities and Small-Scale Mining network (CASM)2 in 2001. CASM was
launched as a multi-donor networking and co-ordination facility. Its mission is to reduce
poverty by supporting integrated sustainable development of communities affected by, or
involved in, artisanal mining in developing countries. CASM functions as a knowledge-
based community. With limited funds at its disposal, it supports and promotes the
development of projects and approaches, by individuals, communities, and institutions
that will directly or indirectly contribute to the reduction of poverty and the construction
of more viable livelihoods in rural areas where small-scale mining is a significant
activity.
In 2001–02, the Mining, Minerals and Sustainable Development (MMSD)3 project
spent considerable time discussing artisanal mining and raising its profile within the
larger, formal mining sector. One of the important outcomes of the Global Mining
 The socio-economic impacts of Artisanal and small-scale mining 146

Initiative (GMI) Conference in Toronto in May 2002, which focused on the results from
the MMSD project, was the “Toronto Declaration” of the newly formed International
Council on Mining and Metals.4 As far as small-scale mining is concerned, an important
element of the ICMM Declaration, which reflects the view of much of the mining
industry, was the following statement: “ICMM recognizes that: …Artisanal, small-scale
mining [and orphan site legacy issues] are important and complex. However, they are
beyond the capacity of ICMM to resolve. Governments and international agencies should
assume the lead role in addressing them.” Thus, when seeking to address small-scale
mining issues, the corporate view is that the initiative should come from elsewhere—a
change of emphasis from the outcome of the ILO meeting some three years earlier.
This institutional reluctance of the mining industry to get involved in what are
perceived as development issues is understandable. However, at the practical level,
including under the umbrella of CASM, individual companies are making a considerable
effort to provide a sustainable foundation to small-scale mining activity on, or near, their
operations. Nonetheless, assistance to small-scale mining is still sporadic and, apart from
the activities of CASM, poorly co-ordinated.
Until the link between small-scale mining and poverty was highlighted in the late-
1990s, neither major donors nor governments showed much interest in assisting it. This
gave little incentive for banks and other organs at the local
2
http://www.casmsite.org/.
3
www.iied.org/mmsd/finalreport/index.html.
4
http://www.icmm.com/.

level to participate. Moreover, the assistance that was provided by donors and
development agencies tended to go to relatively few countries, and had mixed results.
Small-scale mining was just not high enough on the agendas of governments and
international donors to attract widespread, and sustained, attention. However, the growing
importance of addressing sustainable development issues and reducing poverty across the
board has continued to raise the profile of small-scale mining as a sector that, with
assistance, could provide minerals and a basis for sustainable rural livelihoods.
In September 2002, the Plan of Implementation adopted at the World Summit on
Sustainable Development noted that enhancing the contribution of minerals and metals to
sustainable development includes action at all levels. This involves fostering sustainable
mining practices through the provision of financial, technical and capacity-building
support to developing countries and countries with economies in transition for the mining
and processing of minerals, including small-scale mining (emphasis added), and, where
possible and appropriate, improving value-added processing, upgrading scientific and
technological information, and reclaiming and rehabilitating degraded sites. This Plan is
directed at all those involved, including large mining companies.

TOWARDS BEST PRACTICE

If small-scale mining is to be a sustainable source of minerals and mineral-based

products, a conscious effort must be made to ensure that it is both an anchor for, and a
 Addressing labour and social issues 147

springboard to, other productive activities. If this is not feasible, efforts should focus on
finding other activities for those involved, rather than allowing them to become marginal,
counterproductive, and a major social and economic burden. There are plenty of
examples that illustrate that as soon as there is an alternative to small-scale mining, most
people will take it.
A sustainable livelihoods approach to small-scale mining that is being developed and
tested in a number of African countries includes the following elements:
1) Mainstreaming poverty alleviation into national policy making in all sectors, including
minerals.
2) Promoting small-scale mining as a catalyst and an anchor for other productive
activities to stimulate the development of complementary and alternative productive
ventures necessary for sustainable poverty alleviation.
3) Placing people first through pro-poor strategies and participatory methodologies aimed
at strengthening the organizational capability of grassroots communities, therefore
favouring a bottom-up approach.
4) Reversing the focus from “hands-on state intervention” to the creation of private
enterprises, including services, and especially micro-enterprises and co-operatives
(Labonne, 1999).
Approaches such as this, which emphasize the need to improve the productivity and
profitability of small-scale mining and the health and safety of its workers, will be
instrumental in linking it to rural development and ensuring that the industry can coexist
productively with other economic activity, including large mining operations. These and
related issues were examined at a seminar in Yaounde in November 2002 with the
objective of identifying best practices and building the sustainable livelihoods of small-
scale mining communities (Chapter 9).5

CONCLUSIONS

Policies and programmes are needed to put small-scale mining on a stable footing so that
it can provide decent work for the millions of workers and entrepreneurs involved, and
thereby generate lasting community benefits. Small-scale mining needs to be brought into
the mainstream by: ensuring title and property rights; enabling access to finance;
addressing labour and social issues; improving working and living conditions;
minimizing environmental impact; enabling access to technical and business skills; and
linking it to the broader economy of the community concerned.
The social, labour, environment and economic issues that underpin small-scale mining
are interrelated. Thus, when assistance on these issues is being developed and
implemented, due consideration should be given to the other issues—namely, legal,
financial, technical, cultural and political—that affect it. Conversely, other assistance
should anticipate and take heed of any social and labour implications for small-scale
mining. For assistance to succeed in a lasting way, there must be immediate, tangible
benefits for target groups. It is therefore vital that all the stakeholders play an active,
practical and co-ordinated role.
 The socio-economic impacts of Artisanal and small-scale mining 148

It is only through co-ordination, commitment and co-operation at all levels, and by

increasing the resources available to assist small-scale mining, that assistance can be
delivered to where it is needed in an efficient and effective way. The respect for basic
rights stimulates productivity and thus job growth and development. Perhaps this could
be a good place for all those concerned to start when setting out to assist small-scale
mining.

REFERENCES

IIED/MMSD (2002). Breaking new ground: Mining, minerals and sustainable development. Report
of the Mining, Minerals and Sustainable Development Project, London, Earthscan.
ILO (1999). Social and labour issues in small-scale mines. Geneva.
——(May, 1999). Note on the Proceedings, Tripartite Meeting on Social and Labour Issues in
Small-scale Mines, Geneva, 17–21 May 1999, 60 pp.

5
Economic Commission for Africa: Draft compendium on best practices in small-scale mining in
Africa, Doc. ECA/RCID/003/002 (Addis Ababa, 2002), 83 pp. (This paper was written before the
seminar took place.)

——(2002). The evolution of employment, working time and training in the mining industry, 83 pp.
Jennings, N.S. (2000). Small-scale mining: a sector in need of support. In Mining Environmental
Management, Jan 2000 (London, Mining Journal), pp. 17–18.
United Nations (2002). Final report of the panel of experts on the illegal exploitation of natural
resources and other forms of wealth in the Democratic Republic of the Congo, Doc.
S/2002/1146 (New York, 16 Oct 2002), 59 pp.
UNECA (2002). Draft Compendium of best practices in small-scale mining in Africa. Document
ECA/RCID/003/002 (Addis Ababa, 2002). 85 pp.
World Summit on Sustainable Development (2002). Plan of implementation. Advance unedited
text (Johannesburg, 5 Sep 2002).