Land Acquisition and Resettlement - Mining and the Environment: From Ore to Metal - page 604

miners and mining companies have caused signii cant losses to mining companies - in the
case of Talawaan, contributing to the demise of the Australian company Aurora Gold.
Diwalwal in the Philippines is another example (see Case 7.6 in Chapter Seven), where
the Philippine Government continues to search for a balanced approach that allows for
the opening of the area for large-scale modern mining while at the same time providing
income and livelihood to thousands of existing small-scale miners.
However, there have also been examples of situations where artisanal miners and mining
companies have co-existed amicably and, in some cases to the mutual benei t of both groups.
A good example of the latter is in mining operations managed by the Steel Authority of
India Limited, in which the larger iron ore deposits are mined and processed by modern
methods while small deposits, after drilling and blasting carried out by the company, are
mined by the local community using hand methods to separate ore from waste.
The main impediment to mutual cooperation between mining companies and artisanal
mining communities is not the sharing of resources, but the legal ramii cations, whereby
companies are concerned that they may be held liable for health hazards and unsafe prac-
tices over which they have no control. Clearly, given good intentions, such concerns can be
overcome with government or local government and company cooperation.
As discussed in Chapter Five, artisanal mining is commonly associated with lawlessness,
poor sanitation, lack of safety provisions, environmental degradation and a high incidence
of diseases such as HIV-AIDS. The worst examples, such as the Diwalwal gold mining
area in Mindanao in the Philippines in the 1990s, represent some of the most dangerous
locations in the world.
Some governments such as that of the Philippines, have developed national policy
approaches seeking to formalize the artisanal/small mining sector and to facilitate engage-
ment between these groups and the large miners. In particular, several governments
including Indonesia, the Philippines and Thailand have established 'peoples' mining areas'
specii cally for use by artisanal miners. In some cases, the mining industry has been con-
sulted before these areas have been established. In other cases (such as in PT Newmont
Minahasa Raya's operations in North Sulawesi, Indonesia), mining companies have volun-
tarily made available to artisanal miners, ore bodies within their mining leases. Also com-
mon is the situation where artisanal miners continue mining of the near-surface ore while
the company mines the deeper underground ore that is not amenable to small-scale mining.
A good example of this arrangement is Aneka Tambang's Pongkor Gold Project in West
Java, Indonesia.
Economic displacement impacts on artisanal miners can often be compensated by pro-
viding employment in the larger scale operation. As mentioned previously, incomes gener-
ated from artisanal mining are usually very low and in many cases, far exceeded by wages
offered by mining companies. Added to this are the signii cant accompanying benei ts
such as training, security, health and safety provisions.
In summary, while it is common for conl icts to develop between companies and arti-
sanal miners, given goodwill and patient communications, mutually benei cial outcomes
can usually be achieved.

The main impediment to
mutual cooperation between
mining companies and artisanal
mining communities is not the
sharing of resources, but the
legal ramifi cations, whereby
companies are concerned that
they may be held liable for health
hazards and unsafe practices over
which they have no control.

Economic displacement impacts
on artisanal miners can often
be compensated by providing
employment in the larger scale
operation.

REFERENCES

ADB (Asian Development Bank) (1998) Handbook on Resettlement - A Guide to Good
Practice. Asian Development Bank, Manila.