Responsible Sourcing: Why Excluding Artisanal Miners is Not the Solution
Photo: IGF mining
Artisanal mining often gets a bad rap, accused of human rights abuses, child labor, and environmental harm. Some companies have shied away from dealing with artisanal and small-scale mining (ASM) suppliers in response to calls for more responsible sourcing. But this approach is far from a solution.
While it's true that there are serious problems in artisanal mining that need addressing, it's essential to understand that ASM is a vast and diverse sector, varying widely across mines, regions, and countries. Moreover, supply chain risks exist in large-scale mining too, but they often fly under the radar. Simply cutting out artisanal miners is not the answer to responsible sourcing of metals and minerals.
Child Labor Concerns Exist in Large-Scale Mining Too: Child labor is a grave concern in ASM, but it's important to acknowledge that it also exists in large-scale mining operations. For instance, Amnesty International reported in 2016 that children as young as seven were working in cobalt mines in the Democratic Republic of Congo, a country with a significant presence of both ASM and large-scale mining. Responsible sourcing initiatives should address this issue across the entire mining sector.
Environmental Impact of Large-Scale Mining: Large-scale mining operations can have a substantial environmental footprint. The Ok Tedi mine in Papua New Guinea is a prime example where mismanagement led to widespread river pollution, affecting the livelihoods of local communities and biodiversity.
Human Rights Abuses in Large-Scale Mining: Human rights abuses, including violence against local communities, have been reported in large-scale mining projects. In Colombia, for instance, there have been numerous cases of violence and displacement linked to large-scale mining activities in conflict-affected areas.
Community Displacement: Both ASM and large-scale mining can result in the displacement of local communities. The Oyu Tolgoi copper-gold mine in Mongolia led to the resettlement of herder families, highlighting the need for responsible practices in both sectors.
Corruption in Large-Scale Mining: Corruption is not limited to ASM; it can be a significant issue in large-scale mining as well. The "Paradise Papers" leak exposed corruption and tax avoidance schemes involving major mining companies, demonstrating the need for transparency and accountability across the industry.
Artisanal mining is critical to livelihoods, providing income in many developing countries. Around 40 million people work in ASM, and 150 million depend on it across 80 countries in the Global South, making up to 10% of some countries' populations. With ASM supplying approximately 25% of global cobalt, tin, and tantalum production, its contribution is substantial for certain minerals.
If the mining industry were to abandon ASM, it would threaten a crucial source of livelihood in producer countries.
ASM as a Vital Source of Livelihood: ASM often provides livelihoods in regions where formal employment opportunities are limited. In countries like Burkina Faso, Mali, and Ghana, ASM activities offer income to many who would otherwise struggle to find work.
The LME's decision to include ASM aligns with internationally agreed guidance for responsible mineral sourcing, the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. It recognizes ASM as an integral part of mineral supply chains, with the potential to benefit local communities if conducted responsibly.
Rather than boycotting ASM entirely, which is not a solution, the OECD Due Diligence Guidance calls on companies to establish due diligence policies, monitor their supply chains for human rights and other risks, and take steps to mitigate them. Responsible supply chain due diligence should be about how companies conduct their business, supporting them to avoid the potential harm of withdrawing from local economies.
Responsible Sourcing Initiatives: The OECD Due Diligence Guidance, which the article references, promotes responsible sourcing practices that apply to both ASM and large-scale mining. These guidelines encourage companies to ensure their supply chains are free from human rights abuses, conflict minerals, and environmental harm.
Large-scale mining (LSM) also poses risks, including human rights abuses, environmental damage, and corruption. For example, the tragic dam collapse at a Brazilian iron mine owned by Vale resulted in over 230 deaths. The security situation around LSM sites can be dire, with reported cases of security forces using disproportionate force against local populations.
Environmental destruction and forced evictions related to LSM projects are well-documented, such as the hazardous waste discharge from a copper mine in Myanmar, exposing communities to health risks. Corruption is another major issue in LSM, with significant financial losses to countries.
All supply chain risks, whether from large or small-scale mining, must be addressed. The LME's move towards responsible sourcing rules is a positive step, though with some gaps.
Simply severing ties with artisanal miners would have been a harmful step backward. Companies should instead engage responsibly by conducting proper due diligence along the supply chain, considering both large and small-scale mining.
Reference:
https://www.globalwitness.org/en/blog/why-cutting-artisanal-miners-not-responsible-sourcing/