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Mining companies working in Africa are having to find innovative strategies to effectively manage the presence of artisanal and small-scale miners operating on or near the company's operations and exploration sites on the continent. Artisanal, or small-scale, informal mining has, in many cases, been practised for centuries, and has become an important and traditional source of subsistence livelihood for many communities. (Free gold is frequently found in alluvial and shallow orebodies and is relatively easy to extract, refine, transport and sell.) Because of the nature of their operations - small-scale, competitive and often unregulated - these miners operate in dangerous environments, frequently using unsafe methods of tunnelling, mining, and indeed processing, which are often detrimental to the health and the environment of their surrounding communities.

Through AngloGold Ashanti's presence in Tanzania, Mali, Ghana and Guinea the company has become familiar with artisanal and small-scale mining.

For many communities artisanal mining has become a traditional way of life. The presence of large-scale mining companies is frequently met with community resistance, as these traditional miners perceive their livelihoods to be threatened by formal operations. On the other hand, mining operations and personnel are at risk from illegal miners encroaching onto the lease areas. Third-party fatalities through unsafe mining practices are also a concern, along with an increase in unlawful behaviour as new arrivals are lured by word of mouth to apparently gold-rich sites.

Because artisanal and small-scale mining is difficult to regulate, governments are turning to large mining companies to assist in managing, structuring and/or reducing the industry, through sustainable development, business and employment opportunities.

AngloGold Ashanti has developed an inclusive and holistic approach that facilitates legal and responsible artisanal mining around its own operations in support of the company's view that communities should be better off as a result of the company having being there.

Problems associated with artisanal mining recently came to the fore at Geita mine in Tanzania in April 2005 when approximately 7,000 gold seekers invaded the area after word spread that a large nugget of gold had been found by artisanal miners. While the majority of the miners left on their own accord after appeals were made from management to vacate the lease area, the police had to be summoned to remove those who resisted.

Geita is now the site of a pilot project to tackle artisanal mining, developed following a request to the mine by Tanzanian President Benjamin Mkapa to assist in managing the phenomenon. A workshop, attended by 95 artisanal miners, was held in April 2005 as a result. A joint initiative between the mine and the UK's Department for International Development (DFID) - whose interest is aligned with the United Nations' Millennium Development Goals of alleviating extreme poverty, reducing child labour and combating HIV/AIDS - the participatory workshop addressed itself to all issues associated with artisanal mining. During discussions it emerged that the miners wanted more information on topics like access to small business loans, technology, safe working conditions and better mining techniques.

A trade fair (informed by discussions held at the workshop) took place, on 28 July 2005 at Nyarugusu Village, some 32 km from Geita town. The fair was aimed at providing greater information on the topics raised at the workshop. A number of local and international participants were present, including the National Microfinance Bank (NMB) providing advice on opening accounts and requesting investment loans; the Vocational Education Training Authority (VETA) which explained how to become competent in artisanal mining and even qualify for a national diploma in the practice; the Small Industries Development Organization (SIDO) advising on alternative means of employment and the dangers of using mercury in gold extraction; and the International Labour Organization (ILO) which spoke out against child labour and unsafe working conditions. Also represented were other large mining companies operating in the area, who realise the necessity to act as a group, as well as the Mwanza Regional Miners Association (MWAREMA) and the Tanzanian Women Miners' Association (TAWOMA). In order to transcend language, educational and cultural barriers, concepts and messages were conveyed through industrial theatre, later converted into pictorial form for reinforcement.

Says Charles Loots, AngloGold Ashanti's Local Economic Development Manager, "We realised we had to adopt a multi-stakeholder approach and include as many parties as possible. Also essential to successfully tackling the problem was buy-in from local and national government."

Loots adds that one possible solution in regularising artisanal mining (though not specific to Geita mine) would be to section off areas within AngloGold Ashanti's lease areas which are not necessarily viable for the company to mine but which may well be mined through artisanal mining. This would meet the objective of legitimizing these operations while at the same time eliminating the disturbance of company operations. It would also facilitate the establishment of constructive dialogue between the company and the artisanal miners.

Follow-up awareness campaigns have been planned and the mine is also looking to establish a working partnership with the United Nations Industrial Development Organisation's (UNIDO) Global Mercury Project (GMP), aimed at reducing mercury pollution by artisanal mining through introducing cleaner technologies. Tanzania is one of six countries participating in the GMP, which has offered to supply equipment to artisanal and small-scale miners in the Geita area.

While each country presents its own set of issues with regard to artisanal mining, AngloGold Ashanti believes that elements of the Geita approach can be transferred to the company's other operations. A strategic plan is currently being drawn up for its Siguiri mine in Guinea where the issue of artisanal mining requires urgent attention. The company has adopted a ‘push and pull' approach - protecting the mine's assets while at the same time gearing up to assist miners to become legal entities.

At Ghana's Ayanfuri mine, which is in the process of closure, an alternative livelihood programme is in place to encourage miners to engage in alternative employment opportunities.

AngloGold Ashanti recognises that artisanal and small-scale mining, as a way of life and an important economic tool for many, is a permanent feature in the affected countries of its operations. However, it believes that sound strategies, aimed at improving relations between large-scale operators and the informal sector, and encouraging safe and legal operations, will go a long way towards addressing the social, economic and environmental problems inherent in artisanal and small-scale mining. (See the discussion in the Review 2005 of this section.)