Artisanal and Small-scale Mining (ASM)

6. Importance to national economies and development

The ASM sector is also a significant contributor to national economies and important source of foreign exchange earnings. This is especially true for developing countries needing to increase government revenues and reduce budget deficits and dependency on aid:

Given its contribution to foreign exchange earnings and as a source of employment, ASM already plays an important role in the wealth creation of local and national economies. However, the full potential of ASM as a significant contributor to national development is not currently being fully realised.

This is largely due to the fact that the majority of miners operate informally, without the licences and permits required by law. There is therefore the need for a more rounded, comprehensive, and supportive policy response from national governments as well as international agencies to help create locally developed approaches to formalising the sector and realising its development potential.