Role of small-scale mining in Africa: building on the informal sector

Synopsis

‘Formal’ mining in sub-Saharan Africa has declined over the past decade as a consequence of reduced exploration, poor commodity prices and investment disincentives. However in contrast to this trend there has been a marked growth in the informal sector, mining gold and gemstones on a small-scale or artisanal basis due to the black market value of such goods.

It is shown that, even if legitimised, the national contribution of the this sector in Africa is normally fairly small, both in terms of its proportion of the GDP and in numbers of persons employed. It is suggested that its main long-term value to the state, and a principal reason for supporting it, is that a healthy small-scale mining sector encourages prospecting by local people, who historically have tended to be the main discoverers of certain minerals and metals, leading to the establishment of major mines.

To achieve this objective, it is proposed that lessons drawn from the successes and failures of small-scale mining elsewhere in Africa be incorporated in guidelines promoting this sector.

It is suggested that the current trend to make special provision for small-scale mining in the administration is unnecessary, and that experience has shown that systems for marketing, law and technical support can conveniently be the same for every scale of mine. In the case of marketing and technical support, it can be left to the mines themselves to decide whether they wish to avail themselves of these Government services.