Understanding ASGM: A Vital Segment of the Gold Sector

At the World Gold Council, we and our member companies support the responsible mining and trading of gold from all legitimate sources, including Artisanal and Small-Scale Gold Mining (ASGM). ASGM refers to gold mining that is traditionally conducted by individuals or small groups using relatively simple methods. However, mechanization is increasingly being used. 

ASGM is characterized by low capital intensity and high labor intensity, and it accounts for approximately 20% of global gold supply and supports some 20 million occupations. ASGM is a critical livelihood across rural communities in Africa, Asia, and Latin America, yet about 85% of it operates outside formal regulatory frameworks, making it vulnerable to exploitation by criminal gangs and liable to cause environmental degradation. As the gold price has increased significantly over the last few years, this has become even more of a pressing issue.

Why Governments Must Pay Attention

The informal nature of ASGM presents significant governance challenges. Our recent report, Silence is Golden, highlights how criminal networks, armed groups, and corrupt officials exploit the sector to fund illicit activities, including terrorism and organized crime. These actors take advantage of weak enforcement, lack of transparency, and fragmented international oversight. The consequences are severe: human rights abuses, environmental harm (especially mercury pollution), and lost tax revenues. For governments, the unchecked growth of illicit ASGM poses a direct threat to national security, economic stability, and the rule of law.

The Role of Processing Plants in Formalization

One of the WGC’s key proposals to mitigate the negative impacts of ASGM is the development of responsibly managed mercury-free gold processing plants. These facilities have the potential to significantly improve gold recovery rates, displace mercury, enhance miners’ incomes, and serve as aggregation points that enhance transparency and traceability in the gold value chain. They can also improve the ability of governments to regulate and formalize the sector and to build miners’ skills and business capacities.  Our latest report, The Role of Gold Processing Plants in Artisanal and Small-Scale Mining, presents case studies from countries like Peru and Tanzania, demonstrating how such infrastructure can drive formalization and professionalization of ASGM operations.

Policy Pathways for Governments

Governments can play a pivotal role in enabling the success of these solutions. This includes creating regulatory frameworks that support the establishment of processing plants, investing in infrastructure, and fostering public-private partnerships. Commercial viability must be balanced with social and environmental responsibility. By aligning national policies with international best practices, governments can help transition ASGM from a source of risk to a driver of inclusive economic development.

Governments can support formalization through intelligent regulation, proper incentives and investment in enforcement, infrastructure and improved services in mining communities.

Public-private partnerships are key to balancing commercial and social goals. For example, industrial miners working with responsible local small-scale miners through partnerships with entities such as the World Bank and World Gold Council involving governments and large-scale mining companies can help to enact positive change.

A Call to Action

The World Gold Council stands ready to collaborate with governments and industry stakeholders to promote responsible ASGM. Through research, policy advocacy, and on-the-ground partnerships, we aim to integrate ASGM into legitimate gold supply chains while safeguarding communities and ecosystems. We invite government leaders to engage with our findings and join us in shaping a more secure, transparent, and sustainable future for gold mining.