Small-scale and informal mining: a big problem for Latin American states

Latin America has experienced substantial growth and transformation in small-scale mining, meaning it is often no longer small or artisanal, instead it is characterised by high informality and an increasing potential to generate conflicts.

This Brief presents the typical approaches used to address small-scale mining in the region, describingtheir shortcomings, while also identifying some policy measures that have proven to be more effective.

Key lessons:

• while historically policies dealing with small-scale and informal mining have focused on oversight and regulation of the individual miners themselves, more recent initiatives are aiming at further up the gold value chain where there are fewer actors and where most of the rent is generated
• most successful programmes to improve the environmental performance of the small-scale mining sector involve an integral approach that addresses technical, social, economic, legal and organisational aspects.
  The media can play a key role in exposing corruption and pressuring governments to take action against this pervasive aspect of small-scale mining
• cooperative schemes between formal mining firms and small-scale miners have proved to be an effective way to prevent conflicts and reduce environmental impact