Opportunities and Challenges: South Sudan Artisanal Gold Mining.

South Sudan is rich in mineral resources with over 20 different types of minerals with Gold being the most important. The Ministry of Mining roughly estimated a quarter of a ton (±200 Kg) of gold produce from artisanal mining activities in the country (British Geological Survey-World Mineral Production 2013-2017). Gold has been reported at various areas in the Equatorial region, such as, Kapoeta district, Luri districts, Lobonok district, South of Yei district and the Aswa-Nimule shear zone near Kinyeti (Mineral Services-Newsletter n05, 2011). The informal activity employs more than 60,000 people and indirectly benefit half million of the population (Cord-aid Mining in South Sudan report-Jan, 2016).

Despite the importance of artisanal mining as source of livelihood for the rural community and the potential contribution to the country Gross Domestic Production(GDP), the sector is facing tremendous challenges.

As start, South Sudan Mining Act 2012, placed artisanal mining under the administration and management of the state and local government. This provision has been drafted and passed to law without determining, if state and local authority has the adequate finance and technical capability to carryout its duty as speculated in the act. Which had a detrimental effect, and delayed or more accurately held the formalization of the sector to this date.

The informal activity of the artisanal gold mining is engulfed in a secretive nature and discreet pattern. Which gives birth to a climate of mistrust and unethical competition and practices. In such unfavorable conditions, transparency become a collateral damage. Rumors are hard to verify and accusations of all sorts are the order of the day.

Furthermore, miners work in extremely unsafe and risky environment. With inappropriate tools and insufficient knowledge of safe mining practices. That often led to injuries and fatal accidents. Social problems and health risks in the mining sites are in all time high. There is also a potential of environmental degradation resulting from the increase of miners activity.

The above facts might have printed a gloomy picture of the sector, but that is not entirely true. South Sudan mining law incorporated to a certain degree most aspects of modern mining and trends. It also contain a unique approach to impediment problems in the mining industry.

Such as recognizing artisanal miners as part of the mining sector. Contrary to the long standing negative approach against the practice.

It also addressed artisanal mining and small-scale mining as two different component with clearly defined boundary, limitation and obligation (Mining Act, 2012 and Mineral Titles regulations, 2015). Contrary to the global mining authorities and international institutions trend of combining the two component under the term ASM (Artisanal and Small-Scale Mining). Equating the labor-intensive artisanal mining to the semi-machine of small-scale mining proved to be inconsistent of how artisanal mining work in reality. Especially during the formation of actionable policies that address the negative and positive impact of each component.

The use of toxic elements such as mercury in gold extraction process is not a common practice among the miners in South Sudan. Gold panning by far is the most common practice followed by winnowing during the dry season.

Mercury is a serious threat to the health of miners, the surrounding communities and, in particular, children and pregnant women (WHO-Technical Paper on Environmental and Occupational Health Hazard Associated with Artisanal and Small-Scale Mining, 2016). The absence of heavy use of hazardous elements like mercury put South Sudan mining sector in a privileged position to optimize its benefit and minimize the risk associated. Infrastructure is also a subject of concern as most of these sites located in rural areas with poor or no access roads.

There is no one model that fit every conditions, when it comes to the formalization process of artisanal gold mining. However, there are vital concepts must be considered. Such as developing the legal framework in a way that prioritizes the sector, fit the local miners narrative and address social problems, in particular; access to land, gender equality, environment, safety and health. Equally important, that the model must include access to capital, geological data, and proper equipment and technical support for the miners. The effective and active engagement of individuals within the artisanal mining sector and the rural community throughout the process of developing the legal framework and the model must be implemented at all cost.

The adaptation of technology such as the block-chain into the model is another angle the mining sector will need to consider. Block-chain is a form of immutable distributed ledger technology that uses consensus protocols to validate online transaction. It’s most associated with bitcoin and other crypt o- currencies.

The incorporation of block-chain technology into the global mining industry has recently gained a lot of attention. Specially in addressing some of the problems associated with conflict minerals, transparency and traceability of the supply chain from mine to market, and improving the efficiency of trading operations, environmental and social governance.

Block-chain might be the answer for the secretive nature of the sector, and can also curb the soaring illegal activity of gold smuggling.

To supplement a holistic approach the mining sector there’s a need to establish a free-trade gold market and building of a gold refinery into its national development strategy. The gold market will encourage a more transparent trading between miners and gold traders, curb the secretive nature of gold trading, and foster the integration of the sector into the country Gross Domestic Product (GDP). The refinery will increase the value of gold, which will reflect positively in the country economy. Additionally, the refined gold can be used as reserve and key financial asset by the central bank. As a mean to stabilize the South Sudanese Pounds (SSP) exchange rate against foreign currencies (USD), and recover the struggling economy. Besides, gold refinery can foster local jewelry production and provide business opportunity for the already existing-demand.

Gold has a crucial role to play in South Sudan financial cluster. It can be the solution for the country dire economy, and the right tool to eradicate poverty. It can foster the condition for sustainable development, and work toward diversification of the economy. If and only if, South Sudan work in amending the act to fit the complex reality of artisanal mining, develop legal framework and design a model; that can achieve the country economic aspiration, address social problems, safeguard the environment and protect the rights of community and individuals.

About the author:

Lupisaly Roman is a mining engineer with experience spanning over ten years. He is currently the Chief Operation Officer for the Juba-based Lilico Engineering Services and Consultancy.

Roman can be reached via Email: lupisaly.roman@lilicoengineering.com