An Investigation of the Socio-Economic Benefits of Small-Scale Gold Mining in Malawi

Tiyamike Haundi,Steven Ghambi,Theresa Mkandawire,Ansley Kasambara,Gift Tsokonombwe

doi:10.3390/mining1010003

Abstract

In the recent years, there has been a surge in artisanal and small-scale gold mining (ASGM) in various districts of Malawi. Reports of a gold rush have emerged in various districts, including Mangochi, Lilongwe, Balaka, and lately in Kasungu. There has been persistence by many indigenous communities participating in ASGM activities, yet little is being done by the government to formalize and support the sub-sector. The purpose of this study was to investigate the benefits of artisanal small-scale gold mining in Malawi and expose the shortfalls so that key stakeholders and policy makers are well informed. A quantitative approach which used semi-structured questionnaires was used and the data was analyzed using Microsoft excel and Statistical Packages for the Social Sciences (SPSS). The study shows that ASGM is characterized by people with low literacy levels, who use traditional tools (low-tech) and use methods fueled by lack of capital, and deficiency of basic knowledge of mining and geology. The study found that the government could achieve substantial socio-economic development from the sector by: (1) revising the current artisanal and small-scale mining (ASM) legislation so that it embraces the customary practices whilst safeguarding the environment and improving the tax collection base; (2) providing support in form of mining related training and education to these communities; (3) leading in transfer of modern technologies for improved extraction; (4) supporting ASM cooperatives in securing credit facilities from financial institutions; and (5) closing the existing knowledge gap for ASM related issues through introduction of mining desk officers in district councils.

Highlights

Farming was the main occupation of the respondents (74%), while others relied on piecework and small businesses; 2% of the respondents considered mining as an alternative occupation (Figure 2a)
The respondents indicated that no one is formally employed in their communities, this makes sense as these sites are in remote areas where the majority of the people bank on farming as a major economic activity to26support their livelihood
The respondents indicated that no one is formally employed in their communities, this makes sense as these sites are in remote areas where the majority of the people bank on farming as a major economic activity to support their livelihood

Summary

Introduction

Overview of Artisanal and Small-Scale Mining in Africa. Mining has been regarded as one of the most significant economic activities in Africa. The continent has made significant contributions towards manufacturing by supplying high value minerals to the rest of the world. The continent’s mining activities are dominated by medium and small scale mining operations. Artisanal and small-scale mining (ASM) plays a more a prominent socioeconomic role in the rural, remote areas where there are minimal options for revenue generating activities [1]. ASM has offered employment to over one million people in the whole Southern African Development Community ( SADC) region, as shown, [2]. The areas in which ASM take place are characterized by unemployment and high illiteracy levels.

Objectives

Results

Conclusion