Towards sustainable ASM-based livelihoods: The role of institutional arrangements in the formalization of artisanal and small-scale mining

Alejandro Delgado Jiménez, Nicole M. Smith and Elizabeth A. Holley

Resources Policy, 2024, vol. 94, issue C

Abstract: Artisanal and small-scale mining (ASM) is an essential livelihood for millions in the Global South. However, this sector faces numerous challenges, including informality, inconsistent policies, and marginalization. Nevertheless, ASM has development opportunities, and its formalization may help to address some of these challenges. This research emphasizes the role of institutions as a mechanism through which artisanal and small-scale miners can become formal, whereby institutions provide rules and put in place incentives and constraints, reduce uncertainty, create means of exercising power, and influence access to opportunities and choices. This paper presents a case study on the formalization program implemented between 2014 and 2020 through a contractual agreement between a large-scale mining company and several ASM local associations in a gold mining project in Buriticá, Antioquia, Colombia. The contractual system allocated specific areas within the mining concession to ASM operators and agreements on extraction methods, marketing of produced ore, access to geological and mining knowledge, technical capacity, and financial assistance. Formalization allowed ASM operators to adopt technical and business procedures that supported their transformation. The study highlights the barriers that need to be overcome by informal artisanal and small-scale miners and their partners to operate in the formal sector. The Buriticá case study provides relevant insights into the formalization process, identifies various aspects that contribute to the ASM development process, and presents some challenges that policymakers and other stakeholders must consider to address the challenges within the ASM sector.

Keywords: Artisanal and small-scale mining; Formalization; Institutions; Sustainable livelihoods; Buriticá (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:94:y:2024:i:c:s0301420724004963

DOI: 10.1016/j.resourpol.2024.105129

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