SITUATION ANALYSIS OF THE SMALL-SCALE GOLD ... - WWF

law and order in most mining areas and along the access roads. When miners working
illegally in the country get robbed or injured, they do not dare to turn to the police out of
fear for deportation. The gangs stalking the mining areas know this and take advantage of
the situation. Illegal foreign miners face humiliating circumstances, and they are eager to
attain legal status in the country. Opportunities to do so for non-Dutch speakers are
administratively demanding. Moreover, administrative capacity to process the number of
potential applicants is not sufficient. If tomorrow ten thousand illegal miners would
descend upon the immigration office, it would be impossible to process their applications
in an efficient and timely manner.
The fourth loser is the private sector, both national and foreign. Mining enterprises invest
between twenty and two hundred thousand dollars into operations without having the
benefits of secure title. They rarely know what to expect before they start. The State may
show up and levy unrealistic taxes, confiscate equipment and gold. Strong men in the
unorganized mining areas may push out the smaller operators. Maroons may show up and
claim a mining area on the basis of the unsettled land rights issue. Even when miners
have concession rights, their assets are not protected and unimpeded operation is not
guaranteed. With a few exceptions, almost all of the LSM titles that have been issued are
exploration and not exploitation permits. As a result, many so-called „legal‟ miners
working in the interior are in fact operating extra-legally, under a so-called „policy of
tolerance‟ („gedoog beleid‟).
Foreign investors also face challenges associated with an unregulated SSM sector. Article
36.3 of the 1986 mining decree, which stipulates that SSM can only be carried out in
zones set aside for this purpose by Ministerial decree, to be published in the State
Gazette, was never carried out. During the development of the Rosebel Gold Mine, a
large number of small-scale miners invaded the property, and it took years to bring the
situation under control. Many small-scale miners, on the other hand, complain that they
are unable to secure concessions in which to work. The situation is further complicated
by the unsettled land rights claims of the Indigenous and Maroon communities, many of
which are located in or near LSM concessions. The regulatory gaps resulting from an out
of date mining code were filled with a mineral agreement, but foreign mining officials
have often suggested that an up-to-date mining code would be a more effective
instrument for promoting investment. Investors want to know what they are up against
when they evaluate investment options in a country, and the mining code is a key
elements in the decision making process.
The fifth losers are the communities of the interior. Their customary settlement areas are
being invaded by miners with and without permits. Because these territories have no legal
status, they cannot seek eviction or third party compensation claims. The Indigenous
communities with a predominant fish diet face the greatest risk of bioaccumulation of
mercury in the food chain. Many fish species are unable to survive in silted river and
creek water near mining areas and important sources of protein are lost. Diseases such as
malaria are widespread in and around mining zones and the threat of STDs including
HIV/AIDS are becoming a significant concern in communities that are in contact with
mining areas.
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