Artisanal and Small-Scale Gold Mining (ASGM) contributes roughly 20% of the world’s gold production and provides livelihoods for some 20 million people across Africa, Asia, and Latin America. Despite its importance, an estimated 85% of ASGM activity takes place outside formal legal and regulatory frameworks, which leaves the sector vulnerable to criminal exploitation, unsafe working conditions, and environmental harm.
According to industry observers, criminal networks frequently tap informal gold mining to finance illicit activities. Local communities are often the hardest hit by this dynamic: uncontrolled mercury use, unsafe mining practices, and weak labor protections create serious public health and human rights concerns. At the same time, governments miss out on tax revenue and face growing security challenges where illegal operations flourish.
One promising path forward is the introduction of mercury-free processing plants tailored for small-scale operations. These facilities reduce or eliminate mercury exposure, raise the quality and value of the gold produced, and enable better traceability along the supply chain. By improving working conditions and increasing miners’ earnings, mercury-free processing supports the transition from informal to formal markets.
Practical examples from countries such as Peru and Tanzania indicate that these facilities can be effective. Pilot projects combining modern processing methods with training, monitoring, and transparent purchasing systems have helped local miners secure higher prices and create safer workplaces. Where communities adopt these alternatives, environmental contamination drops and the business becomes more attractive to legitimate buyers.
Realizing widespread change, however, requires coordinated action. Governments need clear, enforceable regulations that encourage formalization without imposing unrealistic costs on small operators. Investment in basic infrastructure—reliable roads, testing laboratories, and local processing centers—reduces barriers to formal markets. Public-private partnerships can supply technical expertise, financing, and market access, while community engagement ensures programs reflect local needs and gain acceptance.
When these elements come together, small-scale mining can shift from a source of insecurity to a driver of sustainable local development. Formalized, mercury-free operations protect worker health and the environment, strengthen supply chain transparency, and enable governments to collect revenues that fund public services. In short, targeted policies and investments can transform artisanal mining into a legitimate and safer economic activity that benefits miners, communities, and national economies alike.