The Political Economy of Artisanal and Small-scale Gold ... · foreign nationals).Due to the upward...

The Political Economy of Artisanal and The Political Economy of Artisanal and Small-scale Gold Mining in Zimbabwe: Small-scale Gold Mining in Zimbabwe: The Problem of FormalisationThe Problem of Formalisation

Improved human conditions through good governance of the region’s resources.

Grasian Mkodzongi and Veronica Zano

Southern Africa Resource Watch

Resource InsightIssue No 19. MAY 2020

Southern Africa Extractive Industries Quarterly Monitor, COVID 19 Special Issue The Political Economy of Artisanal and Small-scale Gold Mining in Zimbabwe: the Problem of Formalisation

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Table of ContentsAcronyms and abbreviations 3

Executive Summary 5

Introduction 6

Research design and methodological approaches 8

Challenges of Formalisation 12

Structure of Zimbabwe’s ASGM sector. 18

Violence in the ASGM sector 23

Formalization: the legislative agenda 25

Conclusions 30

References 31

Acronyms and abbreviations ASGM ArtisanalandSmall-ScaleGoldMiningASM ArtisanalandSmall-ScaleMiningEMA EnvironmentalManagementAgency

EPO: ExclusiveProspectingOrderFPR FidelityPrintersandRefinersGEF GlobalEnvironmentFacilityMMMD MinistryofMinesandMiningDevelopmentNGOs Non-governmentalOrganisationsRBZ ReserveBankofZimbabweSARW Southern African Resource WatchTSP TransitionalStabilisationProgrammeUN UnitedNationsUNDP UnitedNationsDevelopmentProgrammeZANUPF ZimbabweAfricanNationalUnionPatrioticFrontZELA ZimbabweEnvironmentalLawAssociationZMDC ZimbabweMiningDevelopmentCorporation

Southern Africa Resource Watch. Resource Insight, Issue Number: 19 The Political Economy of Artisanal and Small-scale Gold Mining in Zimbabwe: the Problem of Formalisation

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Executive Summary

AcrossAfrica(andothersemi-peripheralpartsoftheworld),artisanalandsmall-scalegoldmining(ASGM)hasbecomeawidespreadeconomicactivity(Hilson&Garforth2012andWengetal.,2015)undertakenbydifferentsocialgroups(poorpeasants,urbanites,businessmen,politicians, seniorgovernmentofficials, andforeignnationals).Duetotheupwardtrajectoryinglobalgoldprices(Seccatoreetal.2014,VerbruggeandGeenen2018),ASGMhasexperiencedaboom,mak-ingitattractivetodiversesocialgroups,butparticularlytothemanyunemployedruralandurbanyoungpeople.IncreasingnumbersofpeopleareturningtoASGMasameansofseekingalivelihood,impelledbythegrowingeconomiccrisisanddecreasingrurallivelihoodsinagricultureduetoclimatechangeimpacts(charac-terisedbydroughtsandfloods).

Source: Government of Zimbabwe

InZimbabwe,ASGMisnolongeraperipheraleconomicactivity,buthasbecomeamajorsourceofgoldproduction,surpassingthegolddeliveriesoflarge-scaleminingoperations.In2018,golddeliveriesfromtheASGMsectorexceededthosefromlarge-scaleproducers,demonstratingthecentralityofASGMtoZimbabwe’seconomy.

ThestrategicimportanceoftheASGMsectorintheeconomicgrowthofZimba-bweisalsooutlined inZimbabwe’seconomicpolicydocuments,which includetheTransitionalStabilisationProgramme(TSP).IntheTSP,governmentacknowl-edgestheneedforcombinedeffortsbyartisanal,small-,medium-andlarge-scaleminingactivitiestoattaintheanticipatedtargetof1000tonnesgoldproductionby2023.However,despitethecentralityofASGMasamajorsourceofincomeandcontributiontothenationaleconomy,therehasbeenlittlesuccessininte-grating it into the formaleconomy.Asa result, it remainsan informalactivity,characterisedbyexploitative labourarrangements,violence,revenue leakages,andunsafeoccupational,healthandenvironmentalpractices.Itscontinuedinfor-malitymakesitdifficultforthegovernmenttotapintotheexistingopportunitiestoensurebroad-baseddevelopment.

Data gathered fromvarious sites along Zimbabwe’sGreatDyke geological for-mationaspartofthisstudychallengesmanymythsaboutASGMpopularisedinacademicliteratureandinthemedia.InterviewswithstakeholdersinZimbabwe’sASGMsector showthat it isno longerdominatedbypoorly resourcedpeoplelookingforalternativelivelihoods,butbysocalled“sponsors”(politicians,seniorpolice and army officers, businessmen, and increasingly by Chinese investors)whoarefinancingASGMactivitiesandthuscontributingtoitsdramaticgrowth.Moreover,notallminersareequal;thereisanemergingprocessofsocialdiffer-entiationamongpeopleengagedinthesector.Whilealargenumberofthemin-ersremainpoor,someofthemaregraduatingtobecomecapitalistoperators,ac-quiringminingclaims,hiringequipment,millingores,andbuyinggoldforresaleataprofit.Insomeplaces,minersarenowusingsophisticatedminingequipment,suchasmetaldetectorsandexcavators,toreachpreviouslyinaccessibleores.

Thedataprovidedinthisreportchallengespopularpreconceptionsofwhatanartisanalorsmall-scaleminerlookslike,reflectingthechangingsocialdynamicsthataretakingplaceinthesector.Thishasabearingondebatesaboutformal-isation,environmentaldegradation,andnaturalresourcegovernance.So-called“sponsors”whofinancetheoperationsofartisanalminersincreasinglydominatethesectorintermsoftheirshareoftheproceeds,makingthempowerfulactorswithinfluenceovergovernmentpolicy.Amongthisgrouparepeoplewhoareun-dermininggovernmenteffortstowardsformalisation,becauseitwouldthreaten

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theireconomicinterestsifthestatusquoweretochange.

ThisreporthighlightsthekeyfindingsofastudythatwasrecentlyundertakenbytheSouthernAfricaResourceWatch(SARW)toinvestigatethepoliticalecon-omyofASGMformalisationinZimbabwethroughapolicyor legislativeframe-work.ThestudyprovidesanuancedunderstandingofhowASGMisstructured(intermsofsocialorganisationandlabourarrangements),deepstructuralfactorsthathaveinhibitedformalisationofthesector,itscurrentcontributiontodiffer-entlevelsoftheeconomy,andhowitcanbeformalisedtoenhanceitscontribu-tiontobroad-basedsocio-economicdevelopmentinZimbabwe.

ThereportalsoexploreshowtheformalisationofASGMactivitiescanimprovegoldproductionandaccountability,addressingviolenceandenvironmentaldeg-radation.Thereportprovidesalistofrecommendationsandanactionplanwhichneeds to be followedupby relevant stakeholders (including government, civilsociety,miners’representativeorganisations,andotherdevelopmentpartners).

Introduction

Artisanalandsmall-scalegoldmining(ASGM),knownlocallyaschikorokoza,hasbecomeakeyeconomicactivityundertakenbydifferentsocialgroupsacrosstheZimbabwean countryside. Throughout Africa, ASGM has been historically un-dertakenmostlybypoorruralpeople,asawayofsupplementingtheirincomefromsmallholderagriculture(Hilson2016,Bryceson&Jønsson2009,Banchrigah&Hilson2010,Maconachie 2011,Maconachie&Hilson2011Cartier&Bürge2011,Mabhena2012,Mpofu&Mpofu2017andMkodzongiandSpiegel2018).Zimbabwe’sASGMsectorhasrecentlyundergoneatransformationintermsofthenumberofpeopleengagedinitandtheclassdynamicsunderpinningit. IntheaftermathofZimbabwe’sfast-tracklandreforms,ASGMhasbecomeamajorsourceofemploymentforruralandurbanhouseholds(Mkodzongi2013,Dubeetal.2016,andSpiegel2015).

Itisestimatedthatoveronemillionpeoplearedirectlyemployedinartisanalmining,withanestimatedfivemillionpeople lessdi-rectlyengagedintheactivity(PACT,2015).

Despitebeingillegal,artisanalgoldmininghasbecomeamajorcontributortoZim-babwe’sannualgoldoutputbasedongolddeliveriestothegovernment-ownedFidelityPrintersandRefiners(FPR).

GiventheeconomicchallengesfacingZimbabwe,artisanalgoldmininghasbe-comeakeysourceofincomeforruralhouseholdswhichengageintheactivitypartlyasawayofsupplementingtheirincome.Amongtheurbanpoorandunem-ployedyouth,artisanalminingprovidesasourceofemploymentatatimewhenZimbabwe faces an economic crisis characterised by high levels of unemploy-ment,cashshortagesandeconomicstagnation.However,despiteitscontributiontothelivelihoodsofruralandurbanhouseholds,artisanalminingremainsillegal,withminersperiodicallyfacingviolentarrestanddetention.Alackofknowledgeandappreciationofartisanalmining’scontributiontothelivelihoodsofordinaryhouseholdsandtheeconomyatlargehashistoricallyinfluencednegativegovern-mentpoliciestowardsthesector.

Artisanalmininghastendedtobeviewedasassociatedwithcriminalityanden-vironmentalvandalismbyboththegovernmentandthewiderpublic.Artisanalminersareviewedaspeopleofquestionablemorals,disorganised,andinvolvedindrugandalcoholabuse,prostitution,andmanyothercriminalactivities.Theyarealsoviewedassociallyunstable,movingfromonegold-miningsitetoanoth-er.Whilesomeoftheseperceptionsmaybetrueofaparticularminer,stereo-typesaboutartisanalminersaregenerallymisleading.Researchundertaken inZimbabweandother sub-SaharanAfrican countries (Hilson 2009,MaconachieandHilson2011,Spiegel2014and2015,Geenen2015,MkodzongiandSpiegel2018)showsthatartisanalminingisamajorsourceofemploymentandincomeathouseholdlevel.

Artisanalminingcontributestothebroadereconomybycreatingbusinesslinkagesandopportunitiesforlocalsmallandmediumen-terprises,whichprovideawiderangeofcommoditiestothesector.

Localserviceprovidersaresupplyingessentialequipmentusedintheoperationsofartisanalgoldminerssuchasshovels,chisels,generatorsandcompressors.


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AlthoughthegovernmentofZimbabwehasindicateditswillingnesstodecrimi-naliseASGM,thishasnottranslatedintopolicy.Minerscontinuetooperateun-deracloudoffear,andinlegallimbo.CriminalisationofASGMmeansthatminerswill continue topollute theenvironment,asgovernment isunable tomonitororregulatetheiractivities.GiventhatZimbabweisasignatorytotheMinamataConventiononMercury(whichaimstocurbtheglobaluseofmercury),itisim-portantthatthegovernmenttakesstepstoformaliseartisanalminingasawayofaddressingtherampantuseofmercuryinthesector.CurrentlymercuryuseintheASGMsectorisunmonitored,asmanyartisanalminersoperateinfearofarrest.Forthegovernmenttoeffectivelymonitorandcontroltheuseofmercury,thereisaneedtobringtransparencytotheASGMsector.Minershavenoincentivetoadoptcleanertechnologieswhenthegovernmentviewsthemascriminals.

ZimbabweneedstolearnfromcountriessuchasBrazil,Ecuador,BoliviaandChilewherepilot gold recoveryprocessesbasedongravity separationandflotationhavebeensuccessfullyimplemented(Veigaetal.2014).Inthosecountries,therewasareductioninmercuryreleasesandemissionsof40-60percentaftertheadoptionofnon-mercury-reliantgoldrecoverytechniques.ExperiencefromsuchcountriesshowsthatifASGMminersareintroducedtotheuseofnewtechnolo-giesthrougheducationandtraining,theyarewillingtoadoptsuchtechnologiesaslongastheyboostgoldproduction.Anotherkeylessonlearntisthatwithouttrainingandenforcement,minersareunlikelytochangetheirpollutinghabits.

Research design and methodological approach

InordertothegathertheperspectivesofkeystakeholdersandactorsinZimba-bwe’sASGMsectorontheissueofformalisation,theresearchstartedbymap-pingoutaninventoryofstakeholdersintheASGMsector.Thishelpedtoidentifyrelevantstakeholderssuchasgovernmentbodies,miners’representativeorgani-sations,traditionalleaders,civilsocietyorganisationsandlocalcommunities.Themainaimofthedata-gatheringprocesswastoinvestigatethechallengesfacingtheASGMsector,theunderlyingstructuralissueswhichhaveimpededattemptsat formalisation, andwhat couldbedone toovercome them. In addition, thesocio-economicandenvironmentalchallenges linkedto the informalnatureofASGMwerealsoinvestigatedwithinthecontextofattemptsatformalisationandnationaleconomicdevelopment.

Given the above, a purposive sampling approach was adopted, targeting keystakeholders in thesector.Datawasgatheredthrough focusgroupdiscussionsandin-depthinterviewswithminers,youths,andwomen.Keyinformantinter-viewswereundertakenwithofficialsfromtheMinistryofMinesandMiningDe-velopment(MMMD),membersofthePortfolioCommitteeonMinesandMiningDevelopment, the Environmental Management Authority (EMA), civil societyorganisations,independentresearchinstitutes,localuniversities,localandinter-nationalnon-governmentalorginisations(NGOs)andlocalgovernmentrepresen-tatives.

Researchinformantswereidentifiedthroughtheirrepresentativeorganisations,suchas theminers’ federations (in thecaseofartisanalminers),miners’asso-ciations,andsyndicates.ResearchinformantswereinterviewedattheirminingoperationsalongtheGreatDykegeological formation,wheremostofthegoldminingtakesplace(Norton,Chegutu,Kadoma,EmpressMineandBattlefields).Thedata-gatheringprocesswentsmoothlyandaccordingtoplan.Apartfromfewindividualswhocancelledscheduledinterviews,mostinformantswereopentoexpressingtheirviewsonthechallengesfacingtheASGMsector.Theyalsomadesuggestionsonwhatcouldbedonetoformalisethesector.Theiropinionsandsuggestionswillbeanalysedatalaterstageinthisreport.

Although informants (from diverse backgrounds) generally agreed that some-thinghadtobedonetoaddresstheinformalnatureofASGM,therewerediffer-encesastohowthiscouldbeachieved.ThesedifferencesreflecttheclassandgenderdynamicsunderpinningtheASGMsector.Someinformantsarguedthatformalisationhasitsownadvantagesanddisadvantages,andwillnotsolveallthechallengesfacingthesector.

Somepeopleviewinformalityasaneconomicopportunity–forpoliticians,goldbuyers,claimownersandminesyndicateswho

benefitfromtheillicittradeingold.

Othersarguedthatformalisationmightfloodthegoldmarket,andcouldleadtolowprices.However,artisanalminersviewedformalisationasanopportunitytoliberate themselves fromoppressive economic relations and to gain access to


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governmentassistanceinrelationtogoldclaimsoftheirown.Thiscouldempow-erthemandimprovetheireconomicsituation.

Anotherissuethatemergedduringinterviews(andwhichwillbemorefullyexploredlater)istheproblemoflumpingtogether

”artisanal”and”small-scale”minersasoneunproblematicanalyticalcategory.

Interviewswithkeyinformantsandordinaryminersshowthatthesetwocatego-riesmustbetreatedseparately,becausethechallengesfacedbypeopleineachcategoryaredifferent.Whileartisanalminersandsmall-scaleminerssharesomecommonchallenges(suchaslackofcapitaltomechanisetheiroperations),arti-sanalminerstendtobeeconomicallyworseoffthansmall-scaleminersastheyalsolackinformationandthemeanstoapplyforgoldclaimsandfinancefortheiroperations.Small-scaleminersarerelativelybetteroffassomeofthemtendtohaveaccesstocapital.Small-scaleminersareoftenpoliticallyconnectedandabletoacquireminingclaimsandtomechanisesomeaspectsoftheiroperations.

Giventhesedifferences,aclassanalysisofthesectorisrequiredbeforegeneral-isationsaboutthechallengestheyfacecanbemade.Interviewswithsmall-scaleminersshowthattheytendtohave“legal”papersasclaimowners,goldbuyers,andmilloperators.However,theyarenotfullyformalisedasmanyofthemcan-notaffordtocomplywiththeraftofregulationsthatgovernsASGM.Forexample,aminingclaimneedstobefencedoff,andcompliancewithenvironmentalregu-lationsisrequiredbeforecommencementandduringoperations.Thesestatutoryrequirementstendtobeexpensive,forcingmanysmall-scaleminerstooperateillegallybyallowingartisanalminerstoworkintheirclaimareaonthebasisoftributaryminingandpaymentarrangements.

Whilemostofthe“small-scaleminers” intervieweddidnotmeetcertainregu-latoryrequirements,theytendedtobeeconomicallybetteroffthantheir“artis-anal”counterparts.Amajordifferencebetweenthetwogroupsisthatartisanalminersarepoorer,lackingownershipofthemeansofproduction,accesstoin-formation,andcapitaltoacquireminingclaimsandequipmentformining.Asaresult,theyareforcedintoexploitativelabourarrangementswithsponsors.Thepaymentarrangementsbetweenthecontractingpartiesaregenerallybasedona

50-50profitsharing(afterexpenses).Thesearrangementsaremorebeneficialtothesmall-scaleminerswhogetpaidforallowingartisanalminersaccesstotheirclaim,hireequipment,andmilltheore.Artisanalminershavenochoicebuttoenterintotheseexploitativearrangementsastheylackinformationorcapitaltoapplyforprospectorslicensesinordertoacquiretheirownclaims.

AnimportantissuethatemergedduringfieldworkwastheroleofwomenandchildreninASGM.LiteratureonASGMtendstoportrayitasamale-dominatedactivitywithwomenparticipatingasprostitutes,caterersandpettycommoditytraders.Whilethisistruetosomeextent,womenareincreasinglyplayinganim-portantroleasartisanalminersdespitethelabour-intensivenatureoftheactivity.

DuringfieldworkatVeniceminenearKadoma, a number of women werepanning for gold. These women areengaged inatypeofartisanalmininglocally known as bhaga bhaga,whichgenerallyinvolveswashingloosesandand capturing gold particles throughthe use of a cloth. This type of artis-analminingtendstobedominatedbywomenwhoaresociallyorganisedonakinshipbasiswitha seniormemberof the extended family playing a leadrole. Bhaga bhaga artisanal miningtends tobe less labour intensive thanthe male-dominated activities, whichinvolvebreakingnewgroundandgoingintounderground shafts.Bhagabhaga

utlisestracerdepositswhichdonotrequireintensivedigging.Thiswomen-dom-inatedartisanalminingtendsto involvetheentirefamily, includingchildrenasyoungasfouryearsold,whowillassisttheirmotherswithcarryingwatertowashthesand.

Femaleartisanalminersfacesimilarchallengestotheirmalecounterparts,andtheyareoftenevictedfromtheirareasofoperationduetolackofofficialpapers.


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Duringinterviews,afemalesyndicateleadernarratedhowshehasbeenminingfordecades,andhowbhagabhagawasakeypartofherfamily’slivelihood.How-ever,shecomplainedaboutbeingvictimisedbypoliticallyconnectedindividualswhoevictthemoncetheyhavediscoveredgold.Shesuggestedthatthegovern-mentmust formalise theiroperationbygiving themtitle toclaimareaswhichtheycouldminewithoutfearofeviction.

Below is an analysis of the dynamics underpinning Zimbabwe’s ASGM sector, and the challenges of formalisation.

Challenges of formalisation

Zimbabwe’sASGMsectorhasundergoneadramaticboomon thebackof fast-track land reforms and an economic crisis characterisedbyhighlevels of unemployment, inflation, and foreign currency shortages.

Despiteitsinformalnature,ASGMpervadesthelivesofmanyZim-babweans.Itisnolongeranalternativeruralactivity,butakeyeco-nomicactivitylinkedtothebroadernationaleconomy

(MkodzongiandSpiegel2018).Moreover,thoseinvolvedarenotonlytheruralpoorbutalsomanybusinessmen,politiciansandChinesenationals.TheactivityhasgainedprominenceduetoitscontributiontoZimbabwe’seconomyandthedramaticincreaseingolddeliveriesfromthesector(seeGovernmentreportonASGMquarterlygoldproductionfigures).

Historically,ASGMusedtobelargelyapoverty-drivenillegalactivity,undertakenbywhatwas viewed as “immoral” and disorderly groups of people.However,theactivityhasgonethroughatransformationintermsofacceptabilityacrossZimbabweansociety.Asa result, seniorgovernmentofficialsandpoliticians inZimbabwe’srulingpartyhavemadepronouncementsindicatingtheneedtofor-malisethesectorandtodecriminaliseit.

The government, through the Ministry of Mines and Mineral Development(MMMD),iscurrentlyrunningamercuryreductionpilotprojectinMakaha(Mu-tokodistrict)incollaborationwiththeUNDevelopmentProgram(UNDP)andits

sisteragenciessuchtheGlobalEnvironmentFacility(GEF).Localandinternation-alNGOs,suchasPactandZimbabweEnvironmentalLawAssociation(ZELA),arealsoinvolvedinthepilotproject.Thesepilotprojects,whichinvolvegovernmentandUNagenciesworkingdirectlywith theASGMsector, indicate thegrowingacceptancebystakeholdersoftheneedtoaddressmanyofthechallengesfacingthesector.

ThefactthatthegovernmentisnowworkingwiththeASGMsec-tor indicates that some formofde facto formalisation is alreadyunderwayandshouldbesupportedthroughtheprovisionoflegalinstruments.

Interviewswithabroadrangeofstakeholdersacrossthesectorshowthatthereisgeneralagreementontheneedtoformalisethesectorandaddresssomeofthechallengesfacingit,includingviolenceandexcessiveuseofmercury(andotherpollutants).However,therearediverseopinionsonhowformalisationcouldbeachievedinpractice.Accordingto interviewswithEnvironmentalManagementAgency(EMA)officials:

Formalisationisnotfullycapturedinpolicy,nolawscoverASGMandthereisnoproperdefinitionforartisanalminersinlaw.Artis-analminershavedramaticallyincreasedduetotheeconomicmelt-downafter2005.Unlikebefore,ASMhasmoved froma tempo-rarytoamainlivelihoodactivity.Therearenowfulltimeartisanalminers.Moreover,artisanalminingisnolongeramale-dominatedactivityaswomenandchildrenarenowfullyinvolved.Thisises-peciallythecaseinareasexperiencingperennialdroughtssuchasMberengwaandShurugwi.

Animportantissuehighlightedhereistheabsenceoflawsthatgovernthesector.AccordingtointerviewswithEMAofficials,theASGMsectoriscurrentlygovernedbyaraftofdepartmentalregulationssuchasthoseadministeredbytheReserveBank(throughFidelityPrintersandRefiners)andtheEMA.However,intermsofthe lawsandregulationsgoverningmining,theASGMsector isnotspecificallyrecognised.Recognitionofthesectorwouldallowthegovernmenttomakeap-propriateinterventions,buttheMinesandMineralsAmendmentBillthatwent


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throughparliamentafewyearsagodoesnotseemtogofarenoughtoformaliseASGM.TheproposedchangestothemininglawcontinuetocriminaliseASGM,makingformalisationhighlyunlikely.Despitethis,someinformantsobservedthatthisisanidealtimetoformalisethesectorasithasbecomeanimportantcontrib-utortoZimbabwe’seconomy:

ThereisnowanopportunityforformalisationasASGMiscontributingtothenationaleconomy.Thenewpushtoformaliseisaresultofchangingeconomicdynamicsintheminingsector.ZimbabweissignatorytotheAf-ricaMiningVision.Governmentwaspreviouslyagainstformalisationbutadifficulteconomyisthemajorpush.Closureoflarge-scalegoldminesisgivingrisetotheASGMboom.Formerbigminesarenowrunbyformeremployees.Forthegovernment,theASGMsectorhasbecomeacashcowas it is generating themuch-needed foreigncurrencyduringaboom ingoldpricesglobally.Thisiswhythegovernmentadoptedano-questions-askedpolicywhenbuyinggold.ItalsoreducedtheamountthatFidelityPrinterscanbuyfromindividualsfrom10to5grams.Thishelpedtogetforeigncurrencytoprocurefuelandmedicines.However,themainchal-lengestoformalisationarepolitical.Bigpeoplearebenefiting.Formalisa-tioncanthreatentheirinterests.Somegovernmentpoliciesarealsofuel-lingtheblackmarket.ThehistoryofthecurrentpresidentcontrollingthegoldsectorinKwekweandtheMidlandsareaisalsoanissue.Monopolymarketingofgoldbythegovernmentisdetrimentaltofairprices.Inothercountriesthemarketingofgoldhasbeenliberalisedbyallowingprivateplayerstoparticipate.

Theissueofpoliticsemergedasakeyobstacletoformalisation.

SomeinformantsarguedthatseniorpoliticiansintherulingZimbabweAfricanNationalUnionPatrioticFront(ZANUPF)

politicalpartywerereluctanttosupporttheformalisationofthesectorasthiscouldprejudicethemfinanciallybyexposingtheir

involvementinillicitfinancialtransactionslinkedtotheillegaltradeofgold.

Thesesentimentswereechoedacrossinterviewsheldwithminersandkeyinfor-mantsfromgovernmentandcivilsociety.Someinfluentialindividualsareholdersofexclusiveprospectingorders(EPOs),whichtheyareusingforspeculativepur-poses,thusdenyingartisanalminersaccesstogold-richareas.Accordingtoanofficialfromalocaluniversity:

Politiciansareagainst formalisation.Therearepeople ingovern-mentwithsomevestedinterests.

Itseemsgovernmentismoreinterestedingoldmobilisationwith-outformalisingtheASGMsector.Artisanalminersneedtobegiventitlesinordertoencouragelong-terminvestmentandplanning.

Formalisation should involve recognition of artisanal miners askeyplayers.Formalisationshouldalsoinvolveevaluationofthere-sourcesinorderformineclaimstobeleveragedtoacquirecapital.Currently,artisanalminersareusedasexplorersorpathfindersbylarge-scalemines,whowillevictthemoncetheydiscovergoldintheir claims. Formalisationmust address conflicts betweenartis-analminersandlarge-scalemines.Inaddition,exploitativetributepaymentarrangementsmustalsobeaddressed. There is aneedtocomeupwithlegislationthatrecognisestheASGMsectorasamajorplayerinthegoldminingsector.Certainrequirements,suchasenvironmentalimpactassessments,mustberelaxedtoallowar-tisanalminerstocomplywithenvironmentalregulations.Thereisaneedtoorganiseartisanalminersintogroupsaspartofthefor-malisationprocess.Tributearrangementscanbeasteppingstonetowardsaccesstotechnology.

However, interviewswith anofficial from theMMMDdownplayed the roleofpolitics in formalisation.Hearguedthat themain issuewas lackofcapacity intheministryofmines.Theministryisyettoundertakeacomprehensivecadastralprocessinordertomaptheresourcesandtocreateadigitaldatabaseofminerecordswhichcouldhelpinaddressingconflictsrelatedtodoubleallocationofmineclaims.TheofficialalsoarguedthatmostofZimbabwe’sASGMsectorwasalreadyformalisedasmanyoftheplaceswhereartisanalminersoperatearele-


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gallyregisteredclaimswhilethemainissueis compliancewithenvironmental regula-tions.Hearguedthatthefeeforacquiringaminingclaimwasaffordable,andthatitwasamatterofpriorityforartisanalmin-erstoacquireminingclaims.Informants from theNGO sector also ar-gued that the sustainability of mining isbased on reduction of mercury use, andthat women and children are dispropor-tionalelyimpactedbyenvironmentaldam-age. They suggested that formalisationmustinvolvehavinganartisanalandsmall-scaleminingdeskattheMMMD.Theyalso

suggestedtheneedforaminingdevelopmentpolicytoaddressemergingissues.Thereiscurrentlyalotofdocuments,butnospecificpolicy.Formalisationmustimproveenvironmentalsafetyandcapacitationofminers.Moreover,thereisaneed to identify thosewith potential and formalise them. Informants furtherhighlighted that formalisation could addresshigh levels of illicit trade in gold,whichiscurrentlyaround60percentoftotaloutput.

ItwasobservedduringinterviewsthatASGMisnowamajorcontributortothenationaleconomy,andneedstobeformalisedforitsfullpotentialtoberealised.Someobservedthatthenewpushtoformalisewasaresultofchangingeconom-icdynamicsintheminingsectorwhereASGMisincreasingplayingadominantroleinthedeliveryofgoldtothegovernment-ownedFidelityPrintersandRefin-ers(FPR).Someinformantssuggestedthat

ZimbabwemustutilisetheAfricaMiningVisionguidelinesinordertoformaliseASGMandrealisetheeconomicbenefitsofavibrantASGMsector.

Apart from the issueof politics, the issueof capacity in theMMMDmust beaddressedasthiscanhelptofacilitatetheformalisationprocess.Forexample,during interviewsanofficial fromtheMMMDobservedthattherewasaneedforacomprehensiveminingcadastreprocessandthedigitisingofrecords,asthe

currentprocessismanualandvulnerabletocorruptionandtheriskofrecordsbeingdestroyed in theeventof afire.He furtherobserved that such recordsneededtobedigitised inorder to fast-track theprocessingofapplications formineclaimsandtoaddressconflicts.

Someinformantsobservedthatcurrentgovernmentpolicieswerefuellingtheillicittradeingoldduetogovernment’smonopolyasthesolebuyerofallgoldproducedinthecountry.Itwasobservedthatamonopolymarketisdetrimentaltofairprices.

Othercountrieshave liberalisedthebuyingandmarketingofgold.How-ever,otherinformantsobservedthatformalisationmustnotbeviewedasasilverbulletasitcanleadtothein-tensificationoftaxationas”invisible”minersbecomevisible.Theincreasein mining costs due to the capital-isation andmechanisation of newlyformalised mines was also cited asapotentiallynegativeaspectof for-malisation,asmanyofthoseoperat-ingintheASGMsectorlackcapital.

Among artisanalminers, formalisationmeans liberation from exploitative andoppressivelabourrelations.

Across thevarious locationsvisited,artisanalminerscomplainedthattheyarebeingexploitedbysponsorswhoinmostcasesarethe claim owners (mainly small-scaleminers), who take a lion’sshareoftheproceedsfromtheminingoperations.Amajorissuealsoraisedduringinterviewswastheneedforthegovernmenttoidentify claim areaswhich can be reserved for artisanalminers.Theysuggestedthatthegovernmentcouldhelpthemregisterascooperativesorsyndicateswithalltherequiredpaperwork,


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including environmental impact assessments. Itwas suggested that this couldempowerminersandimprovetheircontributiontonationalgoldoutput.Someexpressedtheconcernthatlackofinformationandfinancialresourcesmakeitdifficultforthemtoacquiremineclaims,andsaidthattheyneedhelpwithdeal-ingwiththebureaucraticapplicationprocessesofacquiringprospector’slicencesandgoldclaims.Somewanttobecomelicencedgoldbuyersandacquiremillsforprocessingtheore.Acrossdifferentlocationsandminesites,artisanalminersfacedsimilarchallengesintermsofexploitativelabourandcontractualbusinessarrangementsduetotheirinabilitytoacquiremineclaims.

Duringinterviews,minersobservedthatcurrenttributepaymentarrangementswithsponsorswerenotbenefitingthem.Theyconceptualisedformalisationasaprocessthatshouldhelpthemaccessmoreinformationonhowtoacquireamineclaimandmineindependently.

Theissueofevictionsbypoliticallypowerfulfiguresfeaturedprom-inently across interviews, as miners observed that illegality leftthem vulnerable to evictions and exploitation by thosewho areeconomicallypowerful.

Structure of Zimbabwe’s ASGM sector

Since ASGM is increasinglybecoming mainstream, ithasgarneredtheinterestofmany stakeholders, includ-ing aid agencies, civil soci-etyorganisations, and localand international NGOs.These stakeholders areworkingwithartisanalmin-ers to addressmanyof thechallengesfacingthesectorandthoseinvolvedinit.

Insomeplaces,aformofformalisationfrombelowistakingplace.Amongotherthings,thisinvolvesself-organisationbyminers’asso-ciations,whoregistertheirminersandgivethemanidentitycard.

AgoodexampleistheNortonMinersAssociation,whichdoesnotallowanyonewhoisnotregisteredwiththemtooperateamineinthearea.TheassociationregistersallthosewhomineinthebroaderNortonarea,includingindividualmin-ers,claimowners,andequipmentsuppliers.Thissystemofself-organisationhashelpedtoreduceconflictsbetweenclaimownersandartisanalminersaswellasincidencesofrobberiesandviolence.Thisinitiativeisimportantbecauseoneofthemainchallengestoformalisationhighlightedduringinterviewswithartisanalminersrelatedtotheirmobility,makingitdifficulttoidentifyandorganisethemintorecognisablegroups.Accordingtoinformants,formalisationofASGMwouldbeeasierifpeoplearegroundedinaparticularlocalareawarrantingminingin-vestments.Thiswouldalsofacilitatemonitoringandtechnicaltrainingtoboostproductionefforts.Artisanalminerscanbeencouragedtoformgroupsorsyndi-catesthatcouldbeabasisforanyofficialformalisationprocess.Itisimportanttoquestionsomeofthegeneralassumptionsaboutmobilityandthelackoforgan-isationamongminers.

Duringinterviews,therewashardlyaminerwhowasnotpartofasyndicate.

Mostminers(includingthemobileones)operateinsyndicates,forthesimplereasonthatdiggingandbringingoutorefromapitisalabour-intensiveprocessthatrequiresagroupofpeopletoworktogether.

Sincetheminersoftenoperateinareaswherenewgolddiscoverieshavebeenmade,theworkislikelytorequireopeninganewpitorshaftfromscratchbeforegold-bearingorescanbeaccessed.Thisinvolvesalotofdiggingtoremovetheoverburden.Aminingoperationstartinginanewplacerequirestheworkofagrouporsyndicatetobecomeeconomicallyviable.Syndicatesarealsoimportantforpoolingcapitalrisks,andprotectionfromtheviolenceandoccupationalhaz-ardsassociatedwithartisanalmining.Thischallengesthenarrativeof“disorderlymobilepeople”whichtendstodominatecommonmisperceptionsaboutsocial

Southern Africa Resource Watch. Resource Insight, Issue Number: 19 The Politi cal Economy of Arti sanal and Small-scale Gold Mining in Zimbabwe: the Problem of Formalisati on

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organisation in the artisanalminingsector.

Given the above, identifyingpeople and organising minersintoagroupaspartofanofficialformalisation processwill be arelatively easy task if currentstructuresareutilised.Anotherissue linked to the above (andhighlighted by EMA officialsduringinterviews)wasthatmo-bilityisnotvoluntary;itisofteninduced by forces beyond theminer’s control. For example,lackoftenuresecurityatagivenmining locationcan forceartis-analminersoffanarea.Securetenurewhich comeswithmin-ingrightswouldencourageartisanalminerstostayinoneplace.

Thesecurityoftenurechallengeis linkedtootherproblemasso-ciatedwith largecompaniesor individualsholdingtitletoclaimsfor speculative purposes under so-called EPOs. Such people canforciblyevictartisanalminersoncetheyseeproductionpickingupaftertheexplorationeffortsoftheartisanalminers.

Itwasarguedduring interviews that,aspartof the formalisationprocess, thegovernmentmust initiate laws that encourage formal tributary arrangementstoprotectminers fromunlawful evictions. Itwas alsoproposed that the gov-ernmentdesignatespecificareasforminingbyartisanalminers,includinglandinclaimareasownedbythestatethroughtheZimbabweMiningDevelopmentCorporation(ZMDC).A“useitorloseit”principle,asoutlinedintheMinesandMineralsAmendmentBill,would discourage speculation in the sector and re-leasemorelandwhichcanbemadeavailabletoartisanalminersforproduction.

EPOsgivelargeminingcompaniesamonopolyovermineralresources,whichin-hibitsartisanalminersfromaccessingmineral-richareasandderivinglivelihoods(Spiegel2015:545).Itwasnotedthatthegovernmentisalsoaspeculator,duetosomestateinstitutions(suchasZMDC)owninglargetractsoflandasunder-uti-lisedpartsoftheirclaimareas.

Interviewsundertakenwithminershighlighthowminersaresociallyorganised,the challenges they face, andhow formalisation could address someof theseproblems.Accordingtotheleaderofasyndicate:

WeworkasasyndicateoffourpeopleminingatGadzemainChe-gutu.Therearegoodgoldsamples there,onaverageyouget80gramsperthreetonnesofore.Wesharetheproceedsfrommin-ingona50-50basis(afterexpenses)withthesponsor.Tikarowhademo-torovanamatemo(afterthesponsordeducts50percent),wealsosharetheremaining50percent.Claimownersownmillsandalsobuygoldfromusaswedonothavethelegalpaperwork.Thegoldbuyersexploitusbyunderpayingusforourgoldandin-efficientmillingwhichleavesthemwithsometailingswhichtheyfurtherprocess.Ourmainchallengeisthatwedonothaveourownclaims, tirikuitamaricho (wework for other people) as artisanalminers,wemusthaveaccesstodesignatedclaimareas.Artisanalminersneedautonomytoworktheirownclaims.Accesstoclaimscanaddressexploitationbyclaimownersandgoldbuyers.“Claimowners”vanotengamotaisutichitengabhutsu(theybuycarswhilewecanonlybuyshoes).Formalisationcanhelpustoacquireequip-mentandaccessbettergoldmarkets.

Similarly, a syndicate member operati ng in Norton observed that:

Weareasyndicateof18people[and]weminehereona50-50tributearrange-mentwiththeclaimowner.Thesampleshereare24-25gramsperthreewheel-barrows(tenwheelbarrowsisatonne).Thelocalsoilisloose[and]hinderspro-duction.Lackofequipment–pumpingequipment,hammermillsandgenerators–hindersproduction.Wewanttoworkbutwelackequipment.Wefaceviolent


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conflicts–robberies.Wewanttoimproveproductionandgetmoregold.Wedonotintendtoleaveminingeveniftheecono-mynormalised.Artisanalmin-ingislucrativeandcontributestotheeconomy;itisanindus-try that must be encouragedandsupported.Ifitisproperlymanaged, itcancontributetoeconomic development. Wecontribute one wheelbarrowoforetothe localminers’as-sociation every Wednesday.Miningcontributestothelocaleconomy as women are alsobenefitingbysellingfoodandothercommoditiestominers.Minersalsoacquireequipment in Norton and Hararewherewe buy generators and otherminingequipment.

Theleaderofawomen’ssyndicateengagedingoldpanningatVeniceminenearKadomaobservedthat:

Weare a groupof six familymembers engaged inbhagabhaga.Kinshiptiesarekeytohowweoperate.Weworkasfriends,familymembersandneighbours.WeusedtomineatVenicecloseby,butvarunguvakatora isu taichera zve feja feja (whites tookover themineandfenceditaswedidnothavepaperwork).Asfemalemin-ers,wefaceevictionsbytherichandpowerful.Floodingisaprob-lemasbhagabhagahappensalongstreams.Wealsolackinforma-tiontoacquiremineclaims.Weneedourownclaimsinordertobeprotectedfromopportunisticindividuals.Thegovernmentshouldprotectusevenifwelackpaperwork.Ourtenurehereisbasedonmusangano(ZANUPF),whichprotectsusandallowsminerstoop-eratewithoutpaperwork.Theproblemispakabudamaripanouyamunhuanemapepa(theyusemoneytodisposessus).

As the quotes provided aboveindicate, artisanal miners facesimilar challenges wherevertheyoperate.Theseinterviewsshow that formalisation mustaddress the issue of securityof tenureasmostminers cur-rentlyfaceevictionsoncetheirpitsbecomelucrative.Itseemsthatminersarealreadyorgan-ised (most miners belong tosyndicates), and any formali-sation must build on existingsocial arrangements in orderforittowork.Kinshiptiesarecrucial to howminers are or-

ganised.Interviewswithminersshowthatkinshiptiesareimportantforpeopletoworktogetherwithoutconflictandtoprotecteachotherfromaccidentsorvi-olentconflicts.Sincemanyminersnolongerviewartisanalminingasapart-timeactivity, formalisation canboost goldproductionand lead to a vibrantminingeconomyledbysmall-scaleminers,aslarge-scaleminesareindeclineinZimba-bwe(andglobally).

Violence in the ASGM sector

The issueof violence in theASGMsector featuredprominently inmost inter-views.Accordingtopeoplewhoweinterviewed,ASGM-relatedviolenceislinkedtotheillicittradeingoldandtheReserveBankofZimbabwe(RBZ)policyofbuy-inggoldonano-questions-askedbasis.UndertheRBZgoldmobilisationstrategy,anyonecangotoFidelityPrintersgold-buyingcentrestosellaslittleas5gramsofgoldwithoutbeingaskedwheretheygotitfromortheneedforanypaper-worktoprovethattheyownit.ThisisdespitethefactthattheGoldTradeActstates thatonly registeredclaimownersare legallyallowed to sell gold in thecountry.Whilethispolicyhelpsartisanalminerstosellthegoldwithouttheneedtoproducepaperwork,ithasalsoledtotheincreaseinrobberiesoforebyma-


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chete-wieldinggangs(mashurugwi).

Inrecentmonths,theentirecountryhaswitnessedadramaticin-creaseinviolentrobberies,especiallyinminingtownssuchasKwe-kwe,Kadoma,Battlefields,ChegutuandBindura.Thewidespreadviolencehasclaimedmanylives,includingthatofapolicemanatHopeMineinBattlefields.

Thereishardlyadaythatpasseswithoutastoryinthemediaofgruesomeattacksbygangs.

Mashurugwi(gangs)arenotonlyoperatingaroundASGMsites,buthaveextend-edtheirviolentcampaigntourbanareaswheretheyarerobbinggolddealersandcurrencytraders.WhileASGMhashistoricallybeenassociatedwithviolence,itseemsthattheviolencehasdramaticallyintensifiedduetothewidespreadgolddiscoveriesandgoldrushestakingplaceacrossZimbabwe.Mashurugwiseemtooperateabovethelaw,withveryfewofthembeingarrestedorconvictedofrob-beriesandmurders.Asaresult,manyinformantsclaimthatmashurugwienjoypoliticalprotection,withsomeofthembeingsponsoredbypoliticiansandotherinfluential people.During interviewswithminers andbusiness owners at Bat-tlefields,informantsindicatedtheinvolvementofpoliticiansandsomecriminalelementsinthesecurityservicesinthemachete-wieldinggangsstealingminers’goldoreandsettlingconflictsovergold-richclaims.

Mostartisanalminersobservedthatformalisationmustleadtothearrestoftheserogueelementsterrorisingminers,localcommunities,andbusinessownersnearminesites.Someminersobservedthattheserobberswerenowfollowingpeoplewhotheysuspectofhavingmoneyorgoldtotheirhousesintownstorobthem.Othershighlightedthatshoprobberiesarenowtakingplace inbroaddaylight.Some informants said that localpolice areworkingwith these robbers,hencetheirreluctancetoarrestknownrobbers.Someinformantsclaimedthatrobberswerecaughtandreleasedafterafewdaysinpolicecustody.Othersclaimedthattheentire criminal justice system is compromised, so robbers caneasilybribetheirwayoutofprisonaftercommittingcrimes.Accordingtoaninformantinter-viewedatBattlefields:

Mbimbos or mashurugwiarerobbingshopsandhouses.Securityshouldbeintensified,weneedmorepolicepatrols.Themainprob-lemisthatmbimbosgetarrestedandreleasedafterpayingbribestopoliceandpublicprosecutors.Policeare colludingwith crimi-nals.Nyaya ngaipere kucourtnotpolice(thecaseshouldend incourtnotpolice).Wehaverobbersroamingaroundhere,everyoneknowsthesemurderers,andweeatanddinewiththem.Forexam-ple,ifyousellyourcommoditiesatthemarket,youneedtophonehomeandasksomeonetocomeandescortyouasyouarelikelytoberobbedifyouwalkedhomealone.Robberspaytobereleasedafterarrests.Manyrobbersgetarrestedonlytobereleasedadayafter.Peopleareroamingaroundwithaxesandmachetes.Thepo-licedrinkwith robbers; there is corruption in theentirecriminaljustice system.Most revellers arearmedwithmachetesand thepoliceandsoldiersarenotdoinganything.Murderersareroamingatwill.

Theperspectivesofminers showhowthe illegalityofASGMhaspromotedthedramaticincreaseinviolenceandrobberies.Thisislinkedtothewiderproblemofthecollusionofrobbers,politiciansandthoseinthecriminaljusticesystem.

Accordingtominersandbusinessoperators,formalisationmustaddressviolenceandbringbackorder.Mostinformantswhoweinterviewedexpressedtheneedforcriminalstobearrestedandchargedfortheircrimes.

Formalisation:thelegislativeagenda

Thefindings reflected in this reporthighlight thebroader socio-economic andpoliticaldynamicsunderpinningZimbabwe’sASGMsector,andthechallengesofformalisation.Whilethemainstumblingblocktowardsformalisationseemstobelackofpoliticalwillamongpolicy-makers(muchrhetoricbutnoaction),thereisgeneralagreementacrossZimbabweansocietythatASGMisnowakeypartofZimbabwe’seconomy,andthatsomethingneedstobedonetoaddressthemanychallengesfacingthesector.


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Whiletherearemethodologicaldifferencesintermsofhowformalisationcouldtakeplace,moststakeholders inthesectorwantsomeactiontobetaken.Thegovernmentisunderpressuretoaddressmanyoftheissuesraisedduringinter-viewswithabroadrangeofstakeholdersgiventhecentralityofminingtoZim-babwe’sfledglingeconomy.Gold isakeyexportandamajorsourceofforeigncurrency.Addressingthemajorchallengesfacingthesector(suchas illicitgoldtrade,violence,andenvironmentaldegradation) iscrucialforthesustainabilityoftheminingsector.AmajoraimofthisresearchwastoinvestigatethepoliticaleconomyoftheASGMsectorwithinthecontextofformalisation;thequestionthatarisestheniswhatcanbedonetoaddresstheproblemofinformality?

Thefindingsoftheresearchanalysedinthisreportshowthatthereisalreadyadefactoformalisationprocess,basedontheinitiativesofminersandtheirrepresentativeorganisations(suchasminers’syndicates and national miners associations). The governmentcouldbuildonthisbottom-upformalisationprocessbycomingupwithlegalinstrumentsandcriteriaforformalisationwhichminerscanthenadopt.

Our interviewswithminersshowthatstereotypesofdisorganised,mobileandunstablegroupsarebasedonamisunderstandingofhowartisanalminersaresociallyorganised.Basedonourresearchfindings,thegovernment(throughtheMMMD)isalreadyworkingwithartisanalminersonpilotprojectswiththeaimofaddressingsomeofthechallengesfacingtheASGMsector(suchastheexcessiveuseofmercuryforgoldamalgamation).Theseinitiatives,thoughnotbackedbyachangeofpolicy,mustbethebasisformoreformaleffortstolegalisetheASGMsector.Whatisrequiredisthepoliticalwilltoactuallycomeupwithlegalinstru-mentsasastartingpoint.

Since ASGM is currently governed by policy pronouncements,thereisaneedforaclearlegalorregulatoryframeworkthatde-finesASGMandgovernsitsoperations.

Zimbabwewasoncetoutedfor itsbestpractice inASGMwhen it tookseveralmeasures in the1990stodecentralise thecontrolofminingandsupport localASGMpopulations“by trainingminers inhowto secureaccess toprospectingandmininglicensesaswellasminingtechnologiesandmicrofinancing.”Thisap-

proachemergedinthelate1980sandwasformallyimplementedin1993,whenthegovernmentcollaboratedwiththeUNDepartmentforEconomicandSocialDevelopmenttodesignastrategicvisionforASGM,whichledtotheintroductionoftheHarareGuidelinesonSmall-ScaleMiningin1993(Spiegel2015:546).Theguidelines becamea usefulmodel globally and are referenced in literature onASGMacrossAfrica(Ibid:546).TheHarareguidelinesreflectedthevisiontopro-motethelegalisationofASGMwhichisdesperatelyrequiredinZimbabweandinotherjurisdictionsacrossAfricaandtheglobalsouthwhereASGMcontinuestobecriminalised.Zimbabweneedstogobacktoitspreviouspolicyposition,whichdecentralisedthecontrolandmanagementofASGMtolocalauthoritiesandledtoamoreformalandvibrantASGMsectorbasedonsafeminingandenvironmen-talmanagementtechniques.

Arecentreportinthegovernment-ownedHeraldnewspaper(TheHerald,23Jan-uary2020)highlightshowlackofformalisationisaffectinggolddeliveriestothegovernment-ownedFidelityPrintersandRefiners:

Lateststatisticsshowthatgolddeliveriestothecountry’ssoleau-thorisedbuyer, FidelityPrinters andRefiners, fell 16,8percent in2019from33,2tonnesto27tonnesintheprioryearcomparativein2018.DeliveriestoFidelityfromsmallminerswentdownto17tonnes from 21,7 tonnes last year while the decline among thelarge-scaleproducerswasonlymarginal,totalling10,1tonneslastyearfrom11,5tonnesin2018.ReduceddeliveriestoFidelityweremainlyasaresultoflowervolumesreceivedfromartisanalminerswhomayhave smuggledmostof their productionamid reserva-tionsovertheportiontheygetpaidinUSdollars.Analystssaidsincedeclinewasmainlyaresultofsmugglingbyinformalminers,whoarenothappywiththeReserveBank’sforeigncurrencyretentionthresholdsforthesector,theproceedsoftheirsalesremaininZim-babwe.

Thisreportshowsthattheillicittradeingold(duetoinformality)anddistortedlocalmarketsareundermininggolddeliveriestothegovernment – yet the government is not taking concrete stepsto address the leakagesby changingpolicies and formalising theASGMsector.


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Belowisa listofrecommendationswhichneedstobefollowedupbyrelevantstakeholders.

List of recommendations

Recommendations

Formalizationshouldnotbeviewedasathreatasitcanboostgoldproductionthoughcapacitat-ingminers,itcanalsoboostrevenuecollectionthroughtaxation.

Formalizationcanbeatooltoaddresscriminalityinthecriminaljusticedeliverysystem.

Formalizationcanhelpaddressresourceleakagesthoughsmuggling.

Byformalizingandaddressingthechallengesfacingthesub-sector-thebenefitsofextractivismcanbeaccessedbylocalcommunitiesbeyondtheelitesthataregettingalion’sshareofthegoldboom.

Formalizationmustaddressproductivityandenvi-ronmentchallengesfacingthesectorinlinewithsustainabledevelopmentprinciples.

Zimbabwemustrevisitthe‘Harareguidelinesonsmall-scalemining’asamodeltobeusedinitseffortstoformalizetheASGMsector.

Responsible organization

GoZ,ZMFandCSOs

GoZandZMF

GoZ

GoZ,ZMFandCSOs

GoZ,CSOsandotherdevelopmentpartners

GoZandCSOs

Recommendations ASGMmustbeclearlydefinedinpolicytermsasastartingpointtowardsformalization.

Thecurrentorganizationalarrangements(syndi-cates,minersassociationandkinshipnetworks)mustbeutilizedtoorganizeminerintocoopera-tivesthatcanberegisteredasminingentitieswiththeabilitytoregisterminingclaims.

ThecurrentMinesandMineralAmendmentBillmustaddresstheproblemofillegalityofASGMsectorassteppingstonetowardsformalization.

TheMMMDmustbecapacitatedinorderforittoundertakeacomprehensivecadastralprocessanddigitizeminerecords,thiscanhelptoaddressconflictsandcorruptionintheallocationofmineclaims.

TheASGMsectormakesasignificantcontributiontoZimbabwe’seconomy,thereisaneedto‘main-stream’theactivitythroughformalizationforthecountrytorealizethe‘value’ofthegoldresourcesthroughcollectionofresourcerents.

Zimbabwemustutilizeinternationalmining frameworkssuchastheAfricaMiningVisionanditsimplementationtooltheAfrica:MineralsGov-ernanceFrameworkandTheMinamataConventiononMercuryasawayofdemonstrat-ingitscommitmenttoformalizingthesectorandchallengesfaced

Responsible organization

GovernmentofZimbabwe(GoZ)throughtheMinistryofMinesandMiningDevelooment(MMMD)ZT

GoZ,CivilSocietyOrganizations(CSOs)andotherdevelopmentspartners.

MMMD,Goz,CSOsandParliamentofZimbabwe

GoZanddevelopmentpartners

GoZ,ZMFandCSOs

GoZ,CSOsandotherdevelopmentpartners

Southern Africa Resource Watch). Resource Insight, Issue Number: 19 The Political Economy of Artisanal and Small-scale Gold Mining in Zimbabwe: the Problem of Formalisation

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References

Banchirigah,S.M,&Hilson,G.2010.De-agrarianization,re-agrarianizationand localeconomicdevelopment:re-orientatinglivelihoodsinAfrican artisanalminingcommunities.PolicySciences,43(2),157–180.

Bryceson,D.F.,&Jønsson,J.B.2009.GolddiggingcareersinRuralEastAfrica: Small-scaleminerslivelihoodchoices.WorldDevelopment,38(3), 379–392.

Cartier,L.E.,&Bürge,M.2011.AgricultureandartisanalgoldmininginSierra Leone:Alternativesorcomplements?JournalofInternational Development,23(8),1080–1099.

Dube,N.,Moyo,F.,Sithole,M.,Ncube,G.,Nkala,P.,Tshuma,N.,&Mabhena,C. 2016.Institutionalexclusionandthetragedyofthecommons:Artisanal mininginMatabelelandSouthProvince,Zimbabwe.TheExtractive IndustriesandSociety,3(4),1084–1094.

Hilson,G.2011.Artisanalmining,smallholderfarmingandlivelihood diversificationinruralSub-SaharanAfrica:Anintroduction.Journalof InternationalDevelopment,23(8),1031–1041.

Hilson,G.2016.Farming,small-scaleminingandrurallivelihoodsinSub-Saharan Africa:Acriticaloverview.TheExtractiveIndustriesandSociety,3(2), 547–563.

Hilson,G&Garforth,C.2012.‘Agriculturalpoverty’andtheexpansionof artisanalmininginSub-SaharanAfrica:ExperiencesfromSouthwest MaliandSoutheastGhana.PopulationResearchandPolicyReview, 31(3),435–464. Hilson,G.,&Maconachie,R.2017.Formalizingartisanalandsmall-scalemining: Insights.ContestationsandClarificationsArea,49(4),443–51. Geenen,S.2015.AfricanArtisanalMiningfromtheInsideOut.Access,Norms andPowerinCongo’sGoldSector.Routledge,Abingdon.

Conclusions

This report highlights the broader challenges facing Zimbabwe’sASGM sector.While someof theseproblems are specific to Zimbabwe, themajority canbegeneralisedtootherjurisdictionswherecountriesarestrugglingtoformalisetheASGMsector.Akeyfindinginthisreportisthelackofpoliticalwilltocomeupwithlegalinstrumentstoaddresstheproblemofinformality.Linkedtothisistheinvolvementofpoliticiansinillicittradeingold,whichmakesthemreluctanttoformalisethesectorasthisthreatenstheireconomicinterests.Anothercrucialissue is the lack of capacity in keyministries, such as theMMMD, to addressmanyofthechallengesfacingtheminingsectoratlarge.Attemptsatformalisa-tionmustalsoinvolvetheundertakingofacomprehensivecadastralprocessaspartofawiderinitiativetoaddressconflictsinthesector.

A change in policy requires lobbying from below to pressure politicians whoarecurrentlyresistingformalisation.ZimbabwewasonceregardedasapioneerandagoodmodelforthecontrolandmanagementoftheASGMsector(Spiegel2015);itshouldrevisitthatmodelinitsattemptstoformalisetheASGMsector.ASGMmakesanimportantcontributiontoZimbabwe’seconomyasasourceofemploymentforbothurbanandruralpeople.TherearealsovibrantandgrowingsecondaryindustrieslinkedtoASGMsector,whosesurvivaldependsonit.Suchindustriesalsoprovideemploymentandcontributetothegrowthoflocalecono-mies.Formalisationcanthusboostproductionandemploymentcreation.

SinceASGMisoftenunderpinnedbyundemocraticaccesstoresourcerents,for-malisation can create a conducive environment for poorly resourced artisanalminers to gain access tomine claims and escape exploitative labour arrange-ments.

The Political Economy of Artisanal and Small-scale Gold Mining in Zimbabwe: the Problem of Formalisation

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Hilson,G.2009.Small-scalemining,povertyandeconomicdevelopmentin sub-SaharanAfrica:anoverview.Resource.Policy34(1-2),1–5.

Mabhena,C.2012.Miningwitha‘Vuvuzela’:Reconfiguringartisanalminingin SouthernZimbabweanditsimplicationstorurallivelihoods.Journalof ContemporaryAfricanStudies,30(2),219–233.

Maconachie,R.2011.Re-agrarianisinglivelihoodsinpost-conflictSierraLeone? Mineralwealthandruralchangeinartisanalandsmall-scalemining communities.JournalofInternationalDevelopment,23(8),1054–1067. Maconachie,RandHilson,G.2011.Artisanalgoldmining:anewfrontierin post-conflictSierraLeone?J.Dev.Stud.47(4),595–616. Mkodzongi,G.&Spiegel,S.2018.Artisanalgoldminingandfarming:Livelihood linkagesandlabourdynamicsafterlandreformsinZimbabwe.The JournalofDevelopmentStudies,1-17. Mpofu,S.,&Mpofu,T.P.(2017).Assessmentofknowledgelevelsand attitudesofArtisanalgoldminerstowardschemicalcontamination intheMhondoro-NgeziDistrict,Zimbabwe.InternationalOpenand DistanceLearningJournal,1(2),22–32 PACT.(2015).Agoldenopportunity:ScopingStudyofartisanalandsmall-scale goldmininginZimbabwe(pp.174).WashingtonDC:ReporttoUK DepartmentforInternationalDevelopment. PACT.(2016).Agoldenopportunity:Artisanalandsmall-scalegoldminingin Zimbabwe.WashingtonDC.Retrievedfromhttps://www.pactworld .org/library/golden-opportunity-artisanal-and-small-scale-gold-min ing-zimbabwe Seccatore,J.Veiga,M.Origliasso,C.Marin,T,DeTomi,G.2014.Anestimationof theArtisanalsmall-scaleproductionofgoldintheworld.Sci.Total Environ.496,3–8.


Sibanda,G.2020.Goldoutputdeclinewon’tworsenforexcrisis’:Accessed from:https://www.herald.co.zw/gold-output-decline-wont-worsen- forex-crisis/:DateAccessed27January2020.

Spiegel,S.J.2014.LegaciesofanationwidecrackdowninZimbabwe:Operation ChikorokozaChaperaingoldminingcommunities.JournalofModern AfricanStudies,52,541–570. Spiegel,S.J.2015.ShiftingFormalizationPoliciesandRecentralizingPower: TheCaseofZimbabwe’sArtisanalGoldMiningSector,Society&Natural Resources,28:5,543-558,DOI:10.1080/08941920.2015.1014606. Veiga,M.M.,Angeloci-Santos,G.,&Meech,J.A.2014.Reviewofbarriersto reducemercuryuseinartisanalgoldmining.TheExtractiveIndustries andSociety,1(2),351-361. Verbrugge,B.&Geenen,S.2018.Thegoldcommodityfrontier:Afresh perspectiveonchangeanddiversityintheglobalgoldminingeconomy. TheExtractiveIndustriesandSociety. Weng,L.,Endamana,D.,Boedhihartono,A.K.,Levang,P.,Margules,C.R.,& Sayer,J.A.(2015).Asianinvestmentatartisanalandsmall-scalemines inruralCameroon.TheExtractiveIndustriesandSociety,2(1),64–72.

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SARW ObjectivesMonitorcorporateandstateconductintheextractionandbeneficiationofnaturalresourcesinSouthernAfrica,andassesstowhatextenttheseactivitiesuplifttheeconomicconditionsoftheregion’scommunities.

•GenerateandconsolidateresearchandadvocacyonnaturalresourceextractioninSouthernAfrica.•CreateinformedawarenessofthespecificdynamicsofnaturalresourcesinSouthernAfrica,buildingadistinctiveunderstandingoftheregionalgeo-politicaldynamicsofresourceeconomics.•Provideaplatformofaction,coordinationandorganisationforcommunities,activists,researchers,policy-makers,corporations,regionalandglobalgoverningbodiesinthewatchingandstrengtheningofcorporateandstateaccountabilityinextractiveindustries.•Engagewithandsupportgovernmentonbuildingaccountableandtransparentmanagementofextractiveresources.•Buildcapacityforcommunities,civilsociety,parliaments,andmediatoholdgovernmentsandcorporationstoaccount,andtoparticipateindecisionsaboutresourcemanagement.•Advocateandpromotehumanrightsandenvironmentalprotectioninresourceextractionactivities.•Supporteffortstolegislatemandatorypublicdisclosureofandaccesstofinancial,social,environmentalandregulatorycomplianceinformationintheextractivesindustry.•Promoteextractiveindustriesthatcreatewealthforlocalcommunities.

Southern Africa Resource Watch 1stFloor,PresidentPlace1HoodAvenue/148JanSmutsAvenue(CornerBoltonRoad)Rosebank,Johannesburg2001South Africa

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