Report on Reforming Artisanal and Small-Scale Gold Mining for Sustainable Development

Executive Summary

Artisanal and small-scale gold mining (ASGM) is a critical source of livelihood for millions but simultaneously poses severe threats to global environmental health, security, and sustainable development. The sector is the largest source of mercury pollution, a significant driver of deforestation, and a nexus for organized crime and corruption. This report analyzes the challenges of ASGM through the lens of the United Nations Sustainable Development Goals (SDGs) and evaluates the proposed solution of investing in centralized, mercury-free gold processing plants. Such facilities offer a viable pathway to formalize the industry, thereby advancing multiple SDGs, including those related to decent work (SDG 8), good health (SDG 3), clean water (SDG 6), responsible production (SDG 12), terrestrial ecosystems (SDG 15), and peace and justice (SDG 16). Achieving this transformation requires a concerted effort involving policy reform, multi-stakeholder partnerships (SDG 17), and technological adoption.

The Contradictory Impact of ASGM on Sustainable Development

Contribution to Livelihoods vs. Undermining the SDGs

The ASGM sector exemplifies a major development paradox. While it is a crucial economic engine that supports progress toward certain development goals, its current practices actively undermine others.

• SDG 1 (No Poverty) & SDG 8 (Decent Work and Economic Growth): The sector provides direct employment for over 15 million people and indirectly supports 100 million globally, offering a vital economic lifeline in many developing regions.
• Negative Impacts Across Multiple SDGs: The informal and unregulated nature of most ASGM operations leads to severe consequences that impede global sustainability targets.
  • SDG 3 (Good Health and Well-being), SDG 6 (Clean Water and Sanitation), & SDG 14 (Life Below Water): ASGM is the world’s primary source of anthropogenic mercury pollution. The toxic element contaminates water sources, harms aquatic ecosystems, and causes catastrophic health problems for miners and surrounding communities.
  • SDG 15 (Life on Land) & SDG 13 (Climate Action): Illegal mining operations are a major cause of tropical deforestation, destroying vital carbon sinks and biodiversity hotspots, particularly in the Amazon and West Africa.
  • SDG 16 (Peace, Justice and Strong Institutions): The sector’s informality makes it a magnet for organized crime, corruption, and illicit financial flows. Criminal networks infiltrate mining operations, extort workers, and use gold to launder profits from other illicit activities, weakening the rule of law and fueling instability.

Centralized Processing Plants: A Solution Aligned with the 2030 Agenda

Transforming the Sector for Responsible Production

Investment in centralized gold processing plants presents a tangible solution to mitigate the negative impacts of ASGM and align the sector with the principles of sustainable development. These facilities can shift the industry from informal, polluting practices to a formalized, safer, and more efficient model.

Key Benefits for Sustainable Development

• Advancing SDG 12 (Responsible Consumption and Production): Centralized plants can utilize mercury-free technologies, such as gravimetric or cyanidation methods, cutting mercury use by up to 95%. This promotes sustainable production patterns and reduces hazardous waste.
• Promoting SDG 8 (Decent Work and Economic Growth): By formalizing operations, these plants help create safer working conditions, provide stable employment, and facilitate tax collection, contributing to inclusive and sustainable economic growth. Gold recovery rates can increase by as much as 40%, boosting miners’ incomes.
• Strengthening SDG 16 (Peace, Justice and Strong Institutions): Formalization and enhanced traceability within a centralized system decouple the gold supply chain from criminal economies. It allows for proper due diligence, curbs illicit trade, and strengthens governance.
• Protecting Environmental Goals (SDG 6, 14, 15): By eliminating mercury use and concentrating activity, these plants reduce the widespread pollution of rivers and soils and can help limit the geographic footprint of mining, thereby protecting forests and ecosystems.

Framework for Implementation and Overcoming Challenges

A Multi-Faceted Approach to Scaling Solutions

The transition to centralized processing is not without obstacles, including high upfront capital costs, regulatory gaps, and the risk of capture by criminal elements. A comprehensive strategy is required to ensure successful and equitable implementation.

Core Challenges

• Financial Barriers: Capital costs range from $200,000 for basic models to several million dollars for advanced facilities, requiring significant investment.
• Governance and Regulation: Success depends on regulatory clarity, technical expertise, and robust oversight to prevent facilities from becoming points for laundering illegally mined gold.
• Political Will and Community Trust: Overcoming distrust of government and securing buy-in from local stakeholders and miners is critical, especially where mining occurs on Indigenous lands or in prohibited areas.

An Actionable Framework for Progress

1. Strengthen Policy and Legal Frameworks (SDG 16): Governments must enact legal reforms that recognize ASGM, simplify licensing processes, clarify land rights, and create incentives like tax breaks for compliant facilities.
2. Foster Multi-Stakeholder Partnerships (SDG 17): Mobilizing capital and expertise requires collaboration between governments, the private sector, multilateral donors (e.g., World Bank, UNEP), and civil society. Blended finance models and public guarantees can de-risk private investment.
3. Leverage Technology and Innovation: Innovations in blockchain for traceability, satellite monitoring for enforcement, and mobile processing technologies can enhance transparency and efficiency across the value chain.
4. Empower Local Communities: Implementation must be inclusive, with community-led models that ensure miners benefit directly through shared equity or toll-processing arrangements, preventing elite capture and promoting progress on SDG 1 and SDG 8.

Conclusion: A Strategic Opportunity for Global Action

Reforming the ASGM sector is a critical imperative for achieving the 2030 Agenda. Left unchecked, the rising price of gold will continue to fuel environmental degradation and criminal economies, undermining progress on climate, conservation, and global security. The development of well-governed, centralized processing plants offers a rare win-win opportunity to improve environmental performance, create decent livelihoods, and strengthen the rule of law. The upcoming COP30 climate summit in Brazil provides a strategic platform to place this issue on the international agenda, ensuring that gold’s glitter does not come at the cost of the world’s forests, rivers, and security.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 3: Good Health and Well-being

   The article directly connects artisanal and small-scale gold mining (ASGM) to severe health risks. It identifies the sector as the “world’s largest source of mercury pollution” and describes the “catastrophic consequences for human health” resulting from the use of this toxic chemical. The proposed solutions, such as mercury-free processing plants, aim to create “cleaner, safer” livelihoods, thereby addressing health and well-being.

2. SDG 8: Decent Work and Economic Growth

   The article highlights the economic significance of ASGM, noting that it “employs more than 15 million people globally and supports 100 million people indirectly.” A central theme is the transition from informal, precarious work to safer, more stable employment. The proposed centralized processing plants are presented as a way to “shift workers from informal to formal employment” and create “safer livelihoods,” which aligns with the goal of promoting decent work and sustainable economic growth.

3. SDG 12: Responsible Consumption and Production

   This goal is relevant through its focus on the environmentally sound management of chemicals and waste. The article’s primary concern is the extensive use of mercury in gold extraction. It mentions the Minamata Convention on Mercury and promotes investment in “centralized and mercury-free processing plants” to transform “pollutant-intensive livelihoods.” This directly addresses the need for sustainable production patterns by reducing chemical pollution.

4. SDG 15: Life on Land

   The environmental devastation caused by ASGM is a key issue. The article states that the practice is a “major driver of tropical deforestation” and that “Mining mafias destroy forests with impunity.” The image caption also refers to the “Peruvian rainforest devastated by illegal gold mining.” Addressing the impacts of mining on forests and ecosystems is a core component of this SDG.

5. SDG 16: Peace, Justice and Strong Institutions

   The article extensively discusses the link between informal gold mining and crime, corruption, and instability. It describes the sector as a “growing conduit for organized crime, corruption” and notes how criminal networks are “infiltrating gold fields,” “extorting workers,” and “laundering profits.” The proposed formalization of the sector through regulated processing plants is aimed at strengthening the “rule of law,” decoupling mining from illicit economies, and reducing corruption.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.

  This target is directly addressed by the article’s focus on mercury, a hazardous chemical. The text highlights the “catastrophic consequences for human health and ecosystems” from mercury pollution and proposes solutions like centralized processing plants that could be a “missing middle” in transforming “pollutant-intensive livelihoods to cleaner, safer ones.”

• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises.

  The article’s proposal to invest in centralized gold processing plants is a direct effort to formalize the ASGM sector. It states that such plants can “help shift workers from informal to formal employment” and that “legal reforms that simplify licensing” are key enablers for formalization.

• Target 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment.

  The article describes the current state of ASGM as dangerous, with workers exposed to toxic mercury and extortion from criminal gangs. The push for formalized, mercury-free processing plants aims to create “safer livelihoods” and protect workers from these hazards.

• Target 12.4: By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle… and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment.

  The article’s central argument for reforming ASGM is to curb its status as the “world’s largest source of mercury pollution.” The proposed processing plants are designed to “curb illegal mercury use,” with the potential to “cut mercury use by up to 95%,” directly aligning with this target’s objective of managing and reducing chemical waste.

• Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.

  The article explicitly links ASGM to being a “major driver of tropical deforestation” and notes that “Mining mafias destroy forests with impunity.” By seeking to regulate and formalize the industry, the underlying goal is to mitigate this environmental damage and halt the deforestation associated with illegal mining.

• Target 16.4: By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime.

  This target is addressed through the article’s focus on the criminalization of gold supply chains. It states that ASGM has become a “magnet for organized crime,” with cartels and gangs infiltrating the sector. The proposed solutions, like strengthening transparency and traceability, aim to “disrupt illicit gold networks” and decouple the industry from criminal economies.

• Target 16.5: Substantially reduce corruption and bribery in all their forms.

  The article identifies “corruption” as a key problem bred by the informal nature of ASGM. It mentions that “poorly enforced regulations” and “weak job prospects” deepen these entanglements. Formalizing the sector through transparent processes and clear regulations is presented as a way to combat this corruption.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions or implies several quantitative and qualitative indicators:

• Reduction in Mercury Use:

  The article states that well-designed processing plants can “cut mercury use by up to 95%.” This percentage reduction serves as a direct, measurable indicator for progress on Targets 3.9 and 12.4.

• Rate of Formalization:

  The goal to “shift workers from informal to formal employment” implies that the number or proportion of miners operating within the formal, legal system is a key indicator for Target 8.3. The article mentions ASGM “employs more than 15 million people,” providing a baseline for measuring this shift.

• Rate of Deforestation:

  By identifying mining as a “major driver of tropical deforestation,” the article implies that a reduction in the area of forest cleared for mining activities would be a key indicator of success for Target 15.2.

• Increase in Gold Recovery and Tax Revenue:

  The article notes that formalized plants can “boost gold recovery by 40%, and create job opportunities beyond extraction. They can also facilitate traceability and tax collection.” An increase in the efficiency of gold recovery and the amount of tax collected from the sector would indicate successful formalization and a reduction in illicit financial flows (Targets 8.3 and 16.4).

• Traceability of Gold Supply Chains:

  The mention of “blockchain traceability” and the need to ensure “exported gold is free of anthropogenic mercury” points to the implementation and effectiveness of traceability systems as an indicator for combating illicit trade and ensuring responsible sourcing (Target 16.4).

4. Summary Table of SDGs, Targets, and Indicators

Source: news.mongabay.com