Formalization beyond legalization: ENAMI and the promotion of small-scale mining in Chile

Abstract

This article explains how ENAMI, the Chilean National Mining Company (ENAMI), has legalized and formalized artisanal and small-scale mining (ASM). The experience reveals how promoting formalization strategies that provide much broader support for ASM, beyond mining licenses and tenure rights (i.e., legalization), defined as formalization (e.g., geological data, mining equipment, and skills transfer programs), is vital. Information gathered from secondary sources and semi-structured interviews reveals that while legalization of ASM has been largely successful in Chile, there are still challenges in terms of formalization, especially improvement of exploration and production. Furthermore, ENAMI needs to modernize its own installations and development model to afford ASM greater opportunities of becoming a sustainable and competitive business activity.