November 7, 2024
The World Bank's Extractives Global Team is proud to launch a new report, Achieving Sustainable and Inclusive Artisanal and Small-Scale Mining (ASM): A Renewed Framework for World Bank Engagement. For the first time, this report captures five decades of investment in ASM by the World Bank and international partners, assesses its impact on the sector's challenges, and highlights the importance of supporting artisanal and small-scale miners' welfare through a new framework for sustainable social and environmental progress.
ASM might appear niche, but it plays a significant role in everyday life. Many of the minerals needed for rechargeable batteries in smartphones, laptops, and electric cars—like cobalt, tin, and tantalum—come from ASM, contributing 12%, 25%, and 25% of the global supply, respectively. Miners are equally active in producing gold, diamonds, and development materials like salt and construction aggregates. In other words, whether we're aware of it or not, ASM supports the technology and resources we rely on every day.
To be clear, ASM isn't just a small-scale operation in remote corners of the world; the sector has expanded in the last two decades. Twenty-five years ago, around 13 million people were directly involved in the sector. Fast forward to today, the figure has more than doubled to 45 million miners across over 80 countries. However, the impact doesn't stop there; if we include the broader labor chain—those indirectly connected to ASM—the sector indirectly employs another 270 million people globally, more than the combined population of Germany, France, and the United Kingdom. ASM has become the top non-farm rural job in many countries, driven by economic hardship, limited employment opportunities, and high mineral prices.
The Complexity of ASM: A Call for Collective Action
With ASM's rapid growth comes a host of negative impacts. From environmental degradation and unsafe working conditions to limited access to regulated finance and formal markets, ASM is riddled with challenges, and some minerals, like gold and diamonds, have links to conflict in certain regions. The scale of the challenges makes it clear that no single organization can drive the change needed in ASM alone—collective action is essential.
Since the 1980s, over $1 billion has been invested globally to formalize and support ASM, with the World Bank playing a key role—contributing nearly a third of this through 70 projects. Significant progress has been made toward safer and more regulated ASM practices, especially in partnership with governments and NGOs engaged in advocacy, education, and direct support for miners. Yet, the World Bank recognizes that a more comprehensive approach is needed. The new framework calls for multi-stakeholder collaboration, aiming to reduce investment risks, expand formal market access for miners, and build a unified vision for a sustainable and inclusive ASM sector.
A Renewed Framework for Sustainable Development
The World Bank's new framework sets forth a bold vision to make ASM a driver of sustainable economic development. This framework isn't just about formalizing ASM but building a sector that contributes to global sustainability goals by reducing poverty, protecting the environment, and enhancing livelihoods.
PHOTO: The World Bank's New Framework to make ASM a driver of sustainable economic development.
The report stresses the Bank's unique position to lead this transformation—its convening power, resources, and expertise allow it to bring together a wide array of partners, from governments to grassroots organizations, and drive impactful change.
The vision involves supporting miners beyond just technical assistance. It includes efforts like women's financial inclusion, land restoration, and local governance improvements, recognizing that sustainable ASM demands a holistic approach. The World Bank is already taking steps in this direction, as seen in its work with countries like Côte d'Ivoire, where collaborative projects aim to formalize the sector, improve market access, and safeguard the environment.
Why ASM Matters to All of Us
The next time you pick up your phone or log onto your laptop, remember that those devices wouldn't exist without minerals from artisanal or small-scale miners. For millions, that work represents the chance for a better life, yet their livelihoods remain vulnerable. A sustainable ASM sector benefits not only miners but all of us. By promoting responsible practices, we can reduce environmental harm, improve working conditions, and stabilize supply chains for essential minerals.
The World Bank's report is a call to action, highlighting that transforming ASM is a shared responsibility. Whether as consumers, policymakers, or industry leaders, everyone has a role to play in building a sector that supports sustainable development, protects communities, and conserves the environment. Through coordinated efforts, we can create a future where ASM thrives—where miners gain fair access to markets and safer working conditions and where the world benefits from a more sustainable, inclusive approach to mining.
Together, we can make ASM better for everyone-#MiningBetterTogether.