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

government‟s policy to phase out small-scale illegal and polluting gold extraction and
stimulate mid-size and large-scale gold mining, on the basis of a so-called contingency
policy. A ban on the import of mercury was also considered. Industries which use
mercury in their production process would be exempted. What follows is a list of
statements of intent by the government outlined in the policy note:
Evaluation of gold purchasing by the CBvS
Facilitating gold miners to invest income from the sector into communities of the
interior
Improved controls in purchase of gold through official channels
Improved awareness building, assistance and regulations in order to protect
people and the environment
Introduction of sounder production techniques and equipment
Introduction of measures to finance and combat environmental degradation
Ban on the import of mercury
Setting aside or zoning area for medium-scale mining
The report of the SPS notes that with regard to the first point, the evaluation of gold
purchases takes place on a regular basis and the results are forwarded to the President of
the CBvS and the Minister of Finance. The second issue raises more questions than it
answers. Are the costs of company support to a community tax deductible? Is the
company taking over the role of the various ministries responsible for community
development in the interior? This approach is very risky for in the past community
projects have stranded in mid-stream when companies pulled out because natural
resource extraction in the area proved uneconomical. It is interesting to note that
reference is made to zoning, a critical condition for reforming the sub-sector. The
introduction of sounder production techniques and equipment would increase miner‟s
income and reduce pollution. Insufficient emphasis in placed, however, on increasing the
government‟s take.
With regard to issues 2-8 the report notes that no systematic efforts have been undertaken
to realize the stated objectives. These objectives do give a general idea of the direction
the government wants to move with regard to gold mining, but these statements are not
sufficiently developed to constitute a policy framework that can form the basis for a
reform strategy. How then should the process be initiated that will results in a more
elaborate and comprehensive policy document?
Further to gold mining policy, article 2 of the latest draft mining code states that
“General mining policy is vested in the President, who can give general
guidelines with regard to this matter. The Minister is responsible for the
execution of this policy.”
The explanatory note of the latest draft code notes that “mining is of great importance to
the economy of the country. A general mining policy by the president is therefore
desirable. The implementation of this policy is assigned to the Minister in charge of
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