A regulatory framework for Artisanal and Small scale Gold Mining

A regulatory framework for Artisanal and Small scale Gold Mining June 2011

Vision • «To foresee the well developed mineral resources contribution to the foreign currency earnings increase by 10 fold, and be the back bone of the industry in 2020-2023»

Organizing in to cooperatives • ASG miners are organized as cooperatives pursuant to the proclamation No147/91; • Administer themselves by their own work planning programs;

Organizing cont……… • The minimum No of the members of the cooperatives is 10; • The cooperative expansion agency of Ethiopia issues a cooperative certificate for these organized by it;

Organizing cont…… • They can request the mining license from regional mining beauroe/agency, and issued according to the law; • 5,000 – 10,000 Sq.m land is given for mining;

Organizing cont…… • Any cooperative that have an Artisanal mining license has to pay 8% Royalty to the regional mining beauroe/agency; • Artisanal Miners are free from taxes;

Organizing cont…… • The final Gold purchaser in the country is the National Bank of Ethiopia mandated by the government.; • The cooperatives can borrow money from micro finance institutions;

Challenges in ASGM…….. • Lack of basic infrastructure ; • Presence of HIV/Aids, Malaria & water borne disease in the mining areas; • Scarcity of drinking & working water; • Utilization of rudimentary mining equipments;

Challenges cont……. • Lack of nearby Gold trading markets; • Engagement of child labor in mining; • Lack of nearby health care post; • Gold smuggling; • Lack of nearby Schools; • The low status of women miners socially, economically & politically.

Opportunities……. • An increase of mineral price in the world market; • An increment of 5% in each gram of Gold from the daily world Gold market price; • One month free safe custody service is provided by National Bank of Ethiopia.

Present & future programs • Increase 1000 kg of Gold and 700 kg of Gemstone by 5 fold in three years of time .

Promotion of sustainable development of mineral resources Proclamation No 678/2010 • “Small scale mining” means any mining operation of which the annual run-off mine ore does not exceed:- • Regarding Gold ,platinum ,Silver and other precious and semiprecious minerals: • 100,000m3 for placer operation; • 75,000 tons for primary deposit mining;

Eligibility for license/Article 11 / • No person is required to possess financial resources, technical and professional competence in order to carry on artisanal mining operation. /sub-article 2/ • No license may be granted or held by a non citizen of Ethiopia or a group of persons who are nonregistered as a cooperative society in accordance with the relevant law where it is for artisanal mining license. /sub-article 3c/

Promotion and regulation of transaction of precious minerals Proclamation No.651/2009 • No person shall carry out the transaction of precious minerals unless he/she is registered in the appropriate government office and is a holder of an appropriate and valid license or Certificate of Competence as appropriate. /Article 4/ • Any person who has been issued a license in accordance with the appropriate mining laws is not required to have a Certificate Of Competence or license pursuant to this proclamation in order to sell locally or export abroad the precious minerals it produces./Article 2/

Types of licenses • Precious minerals brokerage license; • Precious minerals crafting license; • Precious minerals refining license.

Types of certificates/ Article 10 / • certificate of discovery; • A certificate of professional competence

Eligibility for license /Article 11 / • No person is required to possess financial resources, technical and professional competence in order to carry on artisanal mining operation. /sub-article 2/ • No license may be granted or held by a non citizen of Ethiopia or a group of persons who are nonregistered as a cooperative society in accordance with the relevant law where it is for artisanal mining license. /sub-article 3c/

Promotion and regulation of transaction of precious minerals Proclamation No.651/2009 • No person shall carry out the transaction of precious minerals unless he/she is registered in the appropriate government office and is a holder of an appropriate and valid license or Certificate of Competence as appropriate. /Article 4/ • Any person who has been issued a license in accordance with the appropriate mining laws is not required to have a Certificate Of Competence or license pursuant to this proclamation in order to sell locally or export abroad the precious minerals it produces./Article 2/

Types of licenses/ for transaction/ • Precious minerals brokerage license; • Precious minerals crafting license; • Precious minerals refining license.

Types of Certificate Of Competence • Precious mineral Trade Certificate Of Competence; • Precious mineral Export Certificate Of Competence;

Draft policy of ASGM policy objective To encourage, facilitate and regulate the ASM sectors in order to ameliorate the operational environment, ensure optimal exploitation of mineral resources, and enable these sectors to make a positive contribution to the national, regional and local economy.

Policy measures • Establish a legislative ,regulatory and administrative framework with a view to promote a safe, secure, just and profitable artisanal mining sector that would regulate among others:

Policy measures cont …… • The issue of mining claims to cooperatives registered in accordance with the relevant laws and to individuals carrying out their mining activities themselves;

Policy measures cont …… • The relation between the miners and the lawful occupants of land; • The labor relations within small scale miners; • The protection of women rights; • The control and eradication of illegal child labor.

Policy measures cont …… • Implement measures to assist women to establish and operate independent mining cooperatives; • Develop and implement mine health and safety regulations ; • Ensure that geological research and mapping are conducted to delineate areas;

Policy measures cont …… 5. Reserve and proclaim such areas as “claim areas” in which cooperatives registered in accordance with the relevant laws can peg claims in a prescribed manner, obtain exclusive claim licenses, and carry out mining within a secure and supportive regulatory regime.

Policy measures cont …… 6. Establish the basic infrastructure and services near the “claim areas” 7. Ensure that no artisanal mining, other than for construction materials, is permitted outside the area delineated for such purpose. 8. Support artisanal and small scale miners to adopt measures that will promote environmental sustainability by means of appropriate standards.

Policy measures cont …… 9. Support the provision of training and skills development for artisanal and small scale miners in all areas relevant to mining, including but not limited to mining methods, ore dressing, marketing, etc.

Policy measures cont …… 10. Provide intensive environmental management guidance in areas where there is a high concentration of artisanal and small scale miners 11. Make available experts to train and assist artisanal and small scale miners in the optimal recovery of the resources and safe working conditions.

Thank you

A regulatory framework for Artisanal and Small scale Gold Mining