Precious metals standard-setting body LBMA states that the artisanal and small-scale mining (ASM) industry requires urgent support as it becomes increasingly exploitative and violent as a result of rising gold prices.

LBMA CEO Ruth Crowell states that 83% of the world’s mining workforce, or about 40.5-million people, rely on ASM mines for their livelihood, thereby translating into nearly six times more people being involved in ASM mining than in large-scale mining. “This hints at the significant economic impact ASM can have.”

Equally though, she says, it is important to recognise how dangerous ASM work frequently is, and that it is often some of the most vulnerable people in society who are engaged in ASM.

In addition, the vulnerability of ASM miners is increasingly worsening as a result of the spread of Covid-19.

The rising gold price is driving those with authority and money to increasingly exploit ASM miners and, with this, comes more violence as those with power try to profit from the commodity's value.

She says greater effort and support is required for the LBMA good delivery refiners and large-scale miners (GDL) to engage responsibly with the ASM sector.

This needs to come from a range of stakeholders, including industry, consumers, governments and nongovernmental organisations. The LBMA states that such measures have been identified by the global community prior to the Covid-19 crisis, and remain part of the LBMA’s long-term strategic engagement.

Civil society has also issued a call to action, urging emergency action for vulnerable ASM communities and supply chains.

In times of heightened risks in global mineral supply chains, the carrying out of due diligence and support for on-the-ground, Organisation for Economic Cooperation and Development- (OECD-) aligned initiatives remain more important than ever, says the LBMA.

In its capacity as vice chair of the Multi-Stakeholder Group (MSG) of the OECD Responsible Mineral Supply Chains Forum, the LBMA urges its membership and all stakeholders to act to support these projects.

Crowell points out that the ASM sector has seen tremendous growth over the past decade. According to the LBMA’s market analysis, ASM gold production has risen from about 400 t in 2010 to about 560 t in 2019, with growth averaging 3.6% a year.

She adds that, over the same timeframe, global gold mine production (covering both formal and informal supplies) has risen by a more modest 2.4% a year, from 2 794 t in 2010 to about 3 467 t in 2019.

Despite the substantial volume of ASM gold being delivered to the market, Crowell notes that it is perhaps surprising that only a small quantity of this material is being processed by LBMA GDL refiners.

“The reason for this is that, even though the LBMA looks to encourage refiners to engage with responsible ASM miners, it is often reputationally risky to do so."