Small Mining can be Clean and Profitable

Artisanal mining is a rudimentary activity that today attracts over 30 million people in virtually all developing countries around the world. As the price of gold has steadily increased over the past decade, 15 million people have become involved in extracting this metal in 55 countries. Individuals have switched to mining from primary industrial sectors such as agriculture to increase their income. These workers generally have little capital, low education levels, and no previous experience in mining. Together with a lack of technical support from governments, these factors lead to disorganized and informal mining activities that generate environmental and social chaos. The absence of technical knowledge and capital has caused a proliferation of Gold Ore Processing Centres (GOPCs) around the world established by local entrepreneurs, who provide a way for miners to process their ores using amalgamation for a fee that is relatively low to non-existent. Gold recovery by the independent miners rarely exceeds 30 % and gold-rich tailings are left at GOPC facilities as a form of payment. GOPCs recover around 90 % of the remaining gold using cyanidation, flotation, and amalgamation, without any compensation paid to the miners. In processing these mercury (Hg)-contaminated tailings, Hg cyanide complexes are produced that are dumped into aquatic environments, leading to rapid bioaccumulation of Hg by fish. In the town of Portovelo, Ecuador, the establishment of partnerships between GOPC entrepreneurs and artisanal miners has proven to be successful in forming legal small-mining companies to create more equity and reduce pollution. About 108 GOPCs operate in Portovelo-Zaruma, with 40 % of these still working illegally without proper regulation and permitting. Over 20 % of these GOPCs continue to use grinding, concentrating and amalgamating of the gold, with 58 % performing cyanidation of tailings and/or gravity concentrates, and 15 % combining flotation with cyanidation. About 94 % of the GOPCs concentrate the ore prior to applying amalgamation, which significantly reduces Hg emissions to the environment. Incorporating flotation has given the operators increased skills in mineral recovery, with the side benefit of producing a copper concentrate as added value. Despite these innovations, mineral recovery is still inefficient, and waste management is a major challenge in creating true sustainability in this sector (technical efficiency together with social and environmental responsibilities). Further organization, training and capacity-building are needed. The principles of Lean Manufacturing Methods ("Just in Time" production and "Automation") are suggested as possible techniques to assist small GOPCs to become sustainable. In this concept, a larger mining company can become associated with artisanal miners in a partnership to provide training and investment for exploitation of small deposits that would be infeasible as a single large operation. As well, an International Training Centre for Artisanal Miners (ITCAM) is being established in Portovelo with collaboration of the Government of Ecuador to further enhance and upgrade mining activities in this region. ITCAM will provide artisanal miners with technical, business and environmental training to become responsible small-scale miners. In building this new capacity, ITCAM intends to create an atmosphere of trust to attract private and corporate investors to become partners with artisanal miners.