The ASM Sector Doesn’t Need Another Study—It Needs a New Strategy

For those who know me as the Executive Director of the Artisanal Gold Council (AGC), you know that I tend to avoid personal protagonism. Instead, I prefer to let our local experts, partners, and work speak for themselves. However, on Sunday, March 2, 2025, I was invited to a discussion on Artisanal and Small-scale Mining (ASM) organized by the Intergovernmental Forum on Mining, the World Bank, and the World Gold Council at the annual PDAC conference in Toronto.

The objective of the meeting was a timely call for renewed interest and support for the issues impacting ASM globally. It follows the excellent study conducted by the World Bank in 2024, highlighting ASM’s growing significance in national development and global trade. The report states:

Artisanal and small-scale mining (ASM) has become increasingly important in national development and global trade. As of 2024, over 45 million people directly work in ASM, and more than 225 million depend on it indirectly. ASM contributes significantly to global mineral supply: for example, its share of world gold production rose from 4% in the 1990s to about 20% today, cobalt from 5% to ~12%, and ASM produces large portions of gemstones (80% of sapphires) and other minerals.

Despite its significant economic contribution, the discussion began with a familiar list of "problems" attributed to ASM: environmental damage, the use of harmful chemicals like mercury, the presence of bad actors exploiting local communities, and conflicts between ASM and large-scale mining (LSM) operations. These issues create tensions within communities and pose investment risks for LSM. What is striking is that after more than two decades of interventions and nearly one billion dollars invested in the ASM sector by donors—including the World Bank, GEF, and various development agencies—we still struggle to address ASM effectively.

As someone relatively new to the sector, I find it striking that experts have studied ASM extensively for decades. I am cautious about proposing “solutions.” However, based on the vast literature available, my direct observations from our projects worldwide, and interactions with miners, government authorities, and international donors, it is clear that ASM is well-diagnosed. We understand the barriers to ASM development; only the World Bank report is needed to see this.

Professor Marcelo Veiga, a good friend and current advisor to AGC, recently shared an observation with our team: many artisanal miners are tired of being used as research subjects, providing blood samples to measure mercury content or answering surveys on mercury use and gold production, only to never see the results.

At the same time, in many international forums, I have heard criticism—often from experts and academics—about the lack of miner representation in these discussions. The few artisanal miners who can afford to attend these expensive gatherings are a small, idealized minority—those who hold mineral titles, comply with environmental regulations and follow global supplier requirements for traceability and transparency. The absence of a larger delegation of miners is not necessarily due to oversight by event organizers but rather to the reality that most artisanal miners operate informally. At least 90% of the workers work without proper mineral titles, use hazardous chemicals, and employ inefficient mining methods.

During the session, I sensed frustration, particularly from representatives of large mining corporations, who expressed skepticism about the ability of NGOs to scale up their efforts. This frustration is understandable—many well-intended NGO initiatives have not led to systemic change. Still, I believe this stems from an outdated assumption that ASM comprises "potential small entrepreneurs" who could integrate into the formal mining economy. This assumption was optimistic 20 years ago and remains so today.

Only a tiny fraction—perhaps 1%—of the ASM sector is “market-ready” and capable of attracting private investment. Miners must be formalized to qualify, meaning they must meet strict and often unrealistic regulatory criteria that do not reflect the realities of their operations. Moreover, private investors expect a return on investment that requires economies of scale—something most ASM operators cannot achieve due to limited access to financing and restrictive permitting processes. This creates a vicious cycle that keeps miners trapped in informality.

In my view, there are two types of ASM:

1. Few "market-ready" miners do not require subsidies or technical assistance from NGOs. Many former geologists and mining professionals seek out these opportunities.
2. Most artisanal miners are not market-ready, so organizations like AGC focus on this group.
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AGC’s Approach: De-risking ASM

Our goal is not to increase the global supply of gold or transform ASM into a large-scale job-creation mechanism. Instead, we aim to “de-risk” communities that, due to location, resource access, organizational capacity, and other specific criteria, can potentially transition into the formal sector and attract investment.

We recognize that many miners will not make this transition—some operate in national parks, have uneconomic production levels, or lack organizational capacity. For those willing to engage in our intervention process, we believe there is a real opportunity to transform ASM cooperatives into environmentally and socially sustainable enterprises, as the World Bank has envisioned.

How We Work

1. Strict Selection Criteria: We assess land management, current operations, geological characteristics, technical capacity, and organizational structure. If a community agrees to undergo our intervention process, we help develop a credible business plan for formal financing.
2. Technical Support: We provide miners with geological insights and tailored technical solutions to reduce or eliminate mercury in ore processing.
3. Government Collaboration: We work closely with government authorities at the national and local levels, providing capacity training and know-how to professionalize the activities of artisanal miners. For example, in Burkina Faso, through the PlanetGOLD program and in partnership with government authorities and a local university, we developed a technical training program that is now recognized as a trade qualification. We also provided technical training to the newly created government agency SONASP to administer Burkina Faso’s gold resources.
4. Financial Literacy & Access to Capital: We focus on direct solutions for miners. For example, we offer basic accounting and financial management training while working with financial institutions to develop lending mechanisms suited to ASM.
5. Value Chain Retention: We help miners retain more of the value they generate by supporting ownership of different supply chain segments. In many countries, the wealth produced by miners is primarily captured by intermediaries, some with questionable reputations or ties to criminal organizations.
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AGC’s Unique Model: A Localized Franchise Approach

A key factor in AGC’s success is our "franchise" approach. While we rely on international donors, we do not operate as a traditional project-based NGO. Instead, we build long-term relationships in each host country. Our organizational model ensures that project management and implementation are led by local experts who understand the socio-political context and maintain lasting relationships with local mining communities and authorities. Our Canadian office provides technical and analytical support, but local teams drive our initiatives. This approach has allowed AGC to function not as a foreign NGO but as a locally embedded organization.
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A Focus on Technical Capabilities

At AGC, we emphasize the technical transformation of artisanal and small-scale gold mining (ASGM), turning rudimentary and environmentally harmful practices into responsible, efficient small-scale gold production. Technology is a crucial driver of this transition. When miners see tangible improvements in gold recovery rates, they recognize the benefits of formalization. However, this process cannot be standardized—each ore deposit presents unique mineralogical characteristics that require tailored solutions.

While concerns about mercury use and the broader advantages of formalization are well-documented, most miners prioritize one fundamental objective: improving gold output. Mercury elimination is not necessarily a starting point for change—it is a consequence of enhanced recovery techniques that build trust and engagement between miners, their communities, and organizations like AGC. By conducting mineralogical studies and testing ore samples, AGC demonstrates to miners how they can increase gold recovery rates by two to three times without relying on mercury.

One of the biggest obstacles to achieving mercury-free processing is the limited access to capital for ASGM operations. Mercury-free processing facilities (MFPFs) can range from basic units costing around $10,000 to more advanced systems exceeding $50,000. This investment requirement remains a critical bottleneck in the transition toward mercury-free ASGM.

This is where private sector engagement, supported by technical organizations like AGC, becomes essential. Private companies can play a transformative role by partnering with ASGM communities to facilitate access to finance, secure mineral rights, and develop viable business models for processing facilities. AGC’s extensive experience has shown that building trust with miners is fundamental to achieving lasting change. With AGC’s guidance, private corporations can provide the necessary financial backing while ensuring that ASGM cooperatives integrate into the formal value chain.

Coexistence models between ASGM and large-scale mining (LSM) have been tested in various contexts, with successes and challenges. However, without private sector support—especially in countries where mining investment is a pillar of national economic strategy—ASGM-related challenges often become insurmountable for LSM.

By promoting cooperative models aligned with internationally recognized standards, such as the CRAFT Code from the PlanetGOLD program, mining companies can establish sustainable relationships with ASGM operators. Under such frameworks, large mining companies gain access to additional gold deposits, purchase responsibly mined output from ASGM, and integrate artisanal miners as prospectors for future deposits. More importantly, these partnerships foster stability, reduce social tensions, and ensure mutually beneficial collaboration between ASGM and LSM stakeholders.

This model has proven effective in several Latin American operations, yet widespread adoption remains limited. At AGC, we can establish these coexistence models as a trusted intermediary. Our credibility within the ASGM community, our local presence, and our deep understanding of their needs place us in a privileged position to facilitate dialogue and implementation. LSM companies attempting to navigate these dynamics independently often struggle with a lack of trust from local communities. Furthermore, well-intentioned initiatives frequently rely on internal champions within corporate structures, leading to paternalistic relationships or unfulfilled commitments due to misalignment between local operations and headquarters' decision-making. This challenge is particularly acute for publicly traded companies, which must balance social responsibility with quarterly financial pressures and gold price volatility.

Ultimately, echoing the World Bank’s perspective, organizations like AGC should not be permanently entrenched in the ASGM sector. Our role is to provide catalytic support until governments develop the institutional capacity, technical expertise, and financial mechanisms necessary to sustain ASGM formalization efforts independently. In this process, AGC also plays a crucial role in strengthening government institutions tasked with regulating and supporting ASGM, ensuring long-term sustainability beyond external interventions.

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The Importance of Gender Equity and Human Rights

Women are often involved in ASGM, but their roles are frequently overlooked. At AGC, our interventions provide special attention to gender equality, ensuring women benefit from ASGM and get the support they need to improve working conditions and take leadership roles in cooperatives and communities. Tied to gender equity, AGC also considers critical human rights and child labour issues. Our goal is to improve social and ethical dimensions by fostering more inclusive mining practices. 

The Role of NGOs in ASM Professionalization

Large mining corporations and private investors will not invest in ASM unless they see a viable return path. However, large-scale investment will not materialize unless ASM operations first undergo a process of professionalization. NGOs like AGC play a critical role in this transition, filtering and supporting those who have a chance of success while providing others with valuable data about the viability of their operations.

Today, too many artisanal miners operate blindly, unaware of their reserves or future production potential. Organizations like AGC are essential to the professionalization of ASM. We fully support the World Bank’s recommendations, particularly strengthening government oversight. While Chile offers an excellent model, most ASM countries lack the governance capacity and resources to replicate it. Until governments can regulate the sector effectively, organizations like AGC will remain indispensable in supporting responsible, sustainable ASM development.

Formalization does not come first. This is a consequence, as many formalized ASM operations nowadays pollute the environment as much as informal operations. Miners must know the advantages of being formal, which means legal and using best practices.

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