In many resource-rich developing countries, artisanal and small scale mining (ASM) provides a livelihood for millions of people and is a major source of economic development for many rural and regional communities.
Guidance on the contribution of the extractive sector to the economy (6.3), including ASM
Implementing countries must disclose, when available, information about the contribution of the extractive industries to the economy for the fiscal year covered by the EITI Report.
Countries where artisanal and small-scale mining (ASM) is an important source of income for the government should include it in this overview.
The 2014 EITI Report (pp. 47) expands on previous EITI Reports’ description of the contribution to the economy. It includes, in absolute and relative terms, the size of the extractive industries, their contribution to government revenue, exports and employment.
The 2014 EITI Report states (on p. 33, point 188.8.131.52) that the Ministry of Industry and Minerals had 138,049 employees, of which 25,079 are specialised employees and technicians, and 73,832 work in production (extraction of minerals).
At the same time, the EITI Report shows that the country does not have any active mineral licenses, so no actual mineral extraction.
- As of February 2005, fifteen countries have published estimated ASM figures and details: Afghanistan, Central African Republic, Colombia, Democratic Republic of the Congo, Ethiopia, Ghana, Liberia, Madagascar, Mali, Mongolia, Niger, Philippines, Senegal, Sierra Leone, Togo (read more).
They have published estimated figures as well as non-revenue information on the sector that includes details on the relevant legal framework, fiscal rates, licensing and estimated production and export figures. This can be found in the EITI Reports listed on the country pages.
- See blog and study on ASM in Ethopia linked below.
Democratic Republic of the Congo
The country has published a scoping study on including ASM, see here.
The following publications could be of interest for implementing countries.
This guide might be useful for countries providing an overview of the contribution of the extractive industry to the economy (requirement 6.3).
This Guide to Analyze Natural Resources in the National Accounts (The Guide) presents and explains a set of standard Template Tables using the concepts recommended in the United Nations’ System of National Accounts 2008 (2008 SNA). Economic activity associated with natural resources is macro-critical for about 30 percent of Fund member countries.
The Extractive Industries Transparency Initiative (EITI) is an international standard to ‘promote open and accountable management of natural resources’. By encouraging governments, extractive companies, civil society and the public to engage in discourse around transparency of the extractive sector, it aims to facilitate the management of a country’s natural resource wealth to benefit all its citizens.
A report by Ethiopia EITI on the artisanal and small-scale mining sector and its contribution to the economy.
The study suggests the following next steps for including of ASM in the scope of EITI reporting which can be relevant for other implementing countries:
Establishing regular reporting mechanisms for ASM data as well as disclosure and dissemination of information to help inform policies and activities in the sector.Increasing awareness of ASM as a formal and significant source of income for the government,