Addressing the Challenges of Artisanal and Small-Scale Gold Mining (ASGM)

Artisanal and Small-Scale Gold Mining (ASGM) accounts for roughly 20% of global gold production and provides livelihoods for an estimated 20 million people across Africa, Asia, and Latin America. Despite its economic importance, an estimated 85% of ASGM activity occurs outside formal legal frameworks, creating opportunities for criminal networks to exploit informal supply chains and leaving communities vulnerable to environmental and social harms.

Environmental and Social Impacts

Informal gold mining frequently relies on outdated and polluting methods, most notably the use of mercury for ore processing. Mercury contamination poses serious health risks for miners and nearby communities, contaminating water, soil, and food chains. Beyond pollution, informal operations are associated with labor abuses, unsafe working conditions, and violations of human rights. The informal nature of much ASGM makes it harder for governments to enforce safety standards and protect workers.

Criminal networks often take advantage of weak oversight in informal mining areas. The World Gold Council and other observers report that illicit actors use gold from informal sources to finance illegal activities. At the same time, governments forfeit tax and royalty revenues that could fund public services and development, and they face heightened security challenges in regions where lawlessness around mining takes hold.

Why Formalization Matters

Formalizing artisanal and small-scale gold mining is essential to reduce environmental damage, improve human rights protections, and increase the sector’s contribution to national economies. Formalization encourages better working conditions, reliable income for miners, and traceability in supply chains. It also allows governments to collect revenue and enforce environmental and labor standards more effectively. However, formalization must be practical and responsive to the realities miners face—simply imposing rules without providing alternatives often drives activity further underground.

Practical Solutions: Mercury-Free Processing Plants

One of the most promising approaches to improve ASGM is the introduction of mercury-free processing plants. These facilities use alternative technologies that recover gold without mercury, reducing pollution and health risks. In addition to environmental benefits, mercury-free plants can increase miners’ recovery rates and incomes by capturing a larger share of the gold in ore. Improved recovery means higher earnings for miners and stronger incentives to participate in formalized operations.

Mercury-free processing also enhances transparency and traceability in the gold supply chain. When miners deliver ore to compliant facilities, transactions can be documented, producing records that help integrate small-scale production into regulated markets. Case studies from Peru and Tanzania demonstrate that well-designed mercury-free plants can be operationally viable and socially beneficial when linked with complementary measures such as training, financing, and community engagement.

What Governments and Partners Must Do

To scale up successful models, governments should adopt a mix of enabling policies and targeted investments. Key actions include creating clear, realistic regulatory frameworks that recognize the needs of artisanal miners; investing in infrastructure such as processing centers and transport; and providing technical support and training on safer mining and environmental management. Governments should also facilitate access to finance so miners and cooperatives can invest in cleaner technologies.

Public-private partnerships can accelerate implementation. Collaboration with responsible companies, development partners, and civil society can help deploy mercury-free technologies, build transparent value chains, and develop market incentives for responsibly sourced gold. Law enforcement and regulatory agencies must be strengthened to disrupt criminal networks that exploit informal mining, while offering legitimate pathways for miners to formalize their operations.

Benefits of a Formalized, Mercury-Free ASGM Sector

When ASGM is formalized and supported with mercury-free processing, the benefits are multiple: improved public health and environmental protection, higher and more stable incomes for miners, enhanced traceability that reduces criminal finance, and additional tax revenues for governments. Most importantly, communities gain stronger protections and greater opportunities for sustainable economic development.

Transforming artisanal and small-scale gold mining from a source of risk into a legitimate engine of growth requires coordinated policy, investment, and partnerships. By scaling mercury-free processing and adopting smart regulation, countries with significant ASGM activity can protect communities, reduce pollution, and capture economic value that currently slips through informal channels.