(pradd) – liberia - Land Tenure and Property Rights Portal

cover administrative costs. In 2010, only 368 Class C ADM licenses were issued, and 216 to date in 2011. 12There are 19 Class B SDM licenses in effect. (Class A licenses are for large industrial operations, but currentlythere are none.)There are several opportunities for the chain of custody to be broken and smuggling to occur amongdiamond diggers, miners, illegal aliens, brokers, dealers, and exporters. This report focuses on improved legaland regulatory measures to increase registration of Class C ADM and, to a lesser extent, Class B SDM, to theexclusion of other actors. This section seeks to identify barriers to registration which could be addressed andclarified through solutions in appropriate laws and regulations.ASDMs are likely to obtain licenses and register their production if they have the capacity to register and ifthere are clear benefits to registration. Based on research, consultations, and surveys conducted by MLME,civil society organizations, and development partners, there are several reasons why artisanal miners largely donot obtain valid licenses and thus do not register their production. A few reasons include: a) there are no clearrules perceived by ASDMs; b) enforcement is weak and illegality is the norm; c) the dual system of customaryand statutory property rights causes uncertainty and confusion about access rights to mining sites; and d)many miners are uneducated and do not know what they have to do to obtain a license. In addition to this,based on field experience in Lofa Congo, many miners do not know what to expect or how the registration isdone when they take their diamond to the RDO for registration.Internal displacement due to war, influx of foreigners, and uncertainty over natural resource rights causetenure insecurity, all contributing factors to keeping miners from registering. In many communities, ADM isseen as a legitimate subsistence activity on communal land, subject only to permission from the chief. Thelicensing process is complicated and involves many steps: licenses are only issued in Monrovia, whilediamond mining occurs in remote rural areas; roads are in poor conditions and transport is a problem; andthe issuance of a license can take months. Miners operate on a small profit margin, and surveying,prospecting, and mining licenses and ID cards are expensive in comparison to their potential earnings.Moreover, there are many additional costs in the process of obtaining a valid license.The development needs of artisanal diamond miners are at the root of “conflict diamonds.” The success of aformalized ADMS will depend greatly on the GOL’s ability to engage with miners and the realities miningcommunities face. As the main stakeholders, it is essential to capture and address the unique challenges ofartisanal mining in an appropriate legal and regulatory framework.12Mining Cadastre, September 2011. All 19 Class B SDM licenses are for secondary deposits.12 PRADD LIBERIA: A REVIEW OF THE LEGAL, REGULATORY AND POLICY FRAMEWORKGOVERNING ARTISANAL DIAMOND MINING IN LIBERIA