Improving the Relationship between ASM and LSM, A Perspective

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Improving the Relationship between ASM and LSM, A
Perspective

• Toni Aubynn,
• Corporate Affairs and Social Devt
• Gold Fields Ghana
• CASM-Africa Conference 4-5 January 2008
• Cape Town, South Africa

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DISCLAIMER

• Views presented do not represent the official
  position of
• Gold Fields or
• ICMM
• Views presented entirely a personal perspective

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Content
Toni Aubynn

• Need for proactive and sustainable partnership
• Basis and Nature of existing relationship between
  LSM and ASM
• Live and Lets live model and the challenges
• Conclusion and Way forward

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Rhetorical question Should we be concerned and
be proactive about partnership between ASM LSM?

• Several quantities of gold and other precious and
  non-precious minerals are produced artisanally in
  Africa.
• Average of 1,000,000 ounces of gold and 800,000
  carats of diamonds produced in Ghana annually
  since 1990.
• An average of about 100,000 ounces (about 10)
  and 700,000 carats (about 70) of gold and
  diamonds respectively produced by ASM
• In DR Congo about 80 of gold produced comes from
  ASM
• LSM is estimated to provide direct employment to
  approximately 16,000 Ghanaians.
• ASM is estimated to employ between 15-20million
  in Africa Estimated 100,000 and 200,000 (approx
  30 women).
• LSM has contributed over 6billion in FDI and in
  excess of 2 billion in revenue to the Ghanaian
  economy since 1990
• ASM over 500million since 1990

LSM and ASM are both major vehicles for poverty
reduction.
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Rhetorical question Should we be concerned and
be proactive about partnership between ASM LSM?
contd

• Large Scale Open-Pit gold mining in Ghana is a
  recent development began in the late 1980s
  Issue of law, territoriality and ownership
• The reality of privatisation of LSM in Ghana
  (retrenchment etc)
• Peace and reputation dividend Well-organised ASM
  operations will ensure relative safety and good
  mining practices, harmony of relationship,
  improve trust and remove mutual suspicions

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Nature of Relationship between LSM ASM Four
types

• Legalistic/Grandstanding
• Accommodating/ Live and lets live
• Keep distance if not in our backyard
• Leave and lets live

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The reality?

• Not altruistic need to deal with uncomfortable
  neighbours
• Reactive, uninformed by long term sustainability
• Government inaction/ineffectiveness the dilemma
  of no-jobs and protection of FDI

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Live and lets live model and Challenges

• Deliberate engagement and accommodation of ASM in
  as long as they cause no threat to operations and
  themselves
• Provide Management and organizational structure
  with simple and workable rules
• Provide technical support and extension to
  operators
• Link production to market
• Regular engagement and recognition
• Involve government

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Live and lets live model and Challenges contd

• The dynamics of metal prices which determine the
  definition of marginal lands
• ASM operators often overstretching their luck go
  beyond allotted space, use not-so-artisanal
  equipments
• Victim of own policy
• Political Sensitivity

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Conclusion

• Need for LSM to move from reactive to more
  proactive partnership based on
• Three Key Principles
• Recognition of ASM as an important social and
  economic activity of the surrounding communities
• Recognition of Mutual benefits Well-organised
  ASM operations will ensure relative safety and
  good mining practices, harmony of relationship,
  improve trust and remove mutual suspicions
• Relationship not necessarily based on proximity
  of operations but a major strategic corporate
  social responsibility activity
• ICMM has a role to play

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Way Forward

• Multi-stakeholder
• Government?
• Private sector LSM?
• ASM organizations?
• Development Agencies, Civil Society?

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THANK YOU