Analysis of Artisanal and Small-Scale Gold Mining in Peru under Climate Impacts Using System Dynamics Modeling

Fatih Aranoglu, Tulay Flamand and Sebnem Duzgun
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Fatih Aranoglu: Department of Mining Engineering, Colorado School of Mines, Golden, CO 80401, USA
Tulay Flamand: Department of Economics and Business, Colorado School of Mines, Golden, CO 80401, USA
Sebnem Duzgun: Department of Mining Engineering, Colorado School of Mines, Golden, CO 80401, USA

Sustainability, 2022, vol. 14, issue 12, 1-21

Abstract: In this paper, we propose a system dynamics (SD) model to examine the dynamics of an informal artisanal and small-scale gold mining (ASGM) supply chain that has interactions with the illegal gold supply chain in the Amazon rainforest region, Madre de Dios (MdD), Peru. In order to examine the system under climate impacts and validate the model, we run it under a flood scenario, which is one of the main climate impacts that causes disruption in mining activities. Our findings suggest that the dynamics of informal mines are highly affected by the illegal mercury supply, fuel supply, and availability of workers. In addition, the model under the flood scenario suggests that any external variable that could directly affect fuel and mercury supply would result in a disruption of informal and illegal gold production.

Keywords: system dynamics modeling; informal gold supply chains; artisanal and small-scale gold mining; artisanal and small-scale gold supply chain; supply chain disruptions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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