Cover Note

Project Title: "Removal of Barriers to the Introduction of Cleaner Artisanal Mining and Extraction Technologies"
Date: 28th September 2001

Work Program Inclusion
Reference/Note:
1.Country Ownership


· Country Eligibility

· Front Page, Section 1
· Country Drivenness
Clear Description of project's fit within:

· National reports/communications to
· Paragraph # 12, Annex F;
conventions
Government Endorsement Letters
· National or sector development plans
(Annex K)
· Recommendations of appropriate regional
intergovernmental meetings or agreements.
· Endorsement
· Endorsement by national operational focal
Annex K
point.
2. Program & Policy


Conformity
· Program designation & · Describe how project objectives are consistent · Paragraph #s 19-20
conformity
with operational Program objectives or
operational criteria.
· Project design
Describe:
Corresponding to bullet points on the
· Sector issues, root causes, threats, barriers, etc.,
left:
affecting global environment.
· Annex D, Paragraph #s 1-9
· Project logical framework, including a
· Annex B
consistent strategy, goals, objectives, outputs,

inputs/activities, measurable performance

indicators, risks and assumptions.

· Detailed description of goals, objectives,
· Paragraph #s 18; 21-34; Annex B
outputs, and related assumptions, risks and

performance indicators.
· Paragraphs #s 21-31, Attached text
· Brief description of proposed project activities,
on project implementation plan
including an explanation how the activities would
result in project outputs (in no more than 2
· Annex A
pages)1.
· Annex A
· Global environmental benefits of the project.

· Incremental Cost Estimation based on project
· Paragraph #s 21; 23; 26; 28; Annex
logical framework.
A Section 4.2
· Describe project outputs (and related activities · Paragraph #s 21; 23-26; 28-31;
and costs) that result in global environmental
Annex A Section 4.2
benefits.

· Describe project outputs (and related activities · Paragraph #s 23-31; Annex A
and costs) that result in joint global and national
Section 4.2
environmental benefits.

· Describe project outputs (and related activities · In collaboration with Governments
and costs) that result in national environmental
by going through sectoral development
benefits.
plans and priorities; Annex A Section
· Describe the process used to jointly estimate
5.1.
incremental cost with in-country project partner.
· Annex A, section 5.1; Paragraph #s

42-43

1 A project/program could undertake detailed design (specification of project outputs) during the first phase of
implementation, with clear benchmarks for approval of the subsequent phase. A project could also be an adaptable
program loan with several phases, where achievement of the clear benchmarks at the end of each phase is a necessary
condition for approval of the next phase. In such projects, describe in detail the project output for the first phase and
describe briefly the project activities for that phase.
1

---

· Present the incremental cost estimate. If
presented as a range, then a brief explanation of
challenges and constraints and how these would be
addressed by the time of CEO endorsement.
· Sustainability (including · Describe proposed approach to address factors · Paragraph #s 35-36
financial sustainability)
influencing sustainability, within and/or outside
the project to deal with these factors.
· Replicability
· Describe the proposed approach to replication, · Paragraph #s 24-25, 45; A project
(for e.g., dissemination of lessons, training
Website (Activity 1A.4) will enhance
workshops, information exchange, national and
exchange of information/experiences
regional forum, etc.) (could be within project
description).
· Stakeholder
· Describe how stakeholders have been involved · Local experts used to prepare
Involvement
in project development.
country cases; miners in identifying

needs and site selection; mining

departments identified development

plans and priority areas2.

· Paragraph # 38
· Describe the approach for stakeholder
involvement in further project development and
implementation.
· Monitoring &
· Describe how the project design has
· Paragraph #s 13-15
Evaluation
incorporated lessons from similar projects in the

past.
· Paragraph # 45
· Describe approach for project M&E system,

based on the project logical framework, including
the following elements:
· Logical Framework - Appendix B
· Specification of indicators for objectives and

outputs, including intermediate benchmarks, and · Paragraph #s 40-41; 45
means of measurement.

· Outline organizational arrangement for
· Project Budget (for Activity 1A.5)
implementing M&E.
· Indicative total cost of M&E (maybe reflected
in total project cost).
3. Financing


· Financing Plan
· Estimate total project cost.
· Cover Page; Annex A; Section

VI:Budget
· Estimate contribution by financing partners.
· Cover Page; Annex E
· Propose type of financing instrument
· Cover Page; Annex A; Annex E
· Implementing Agency Propose IA fee
N/A
Fees
· Cost-effectiveness
· Estimate cost effectiveness, if feasible.
· Introduction of clean technology will

minimize mercury pollution and lead to

increased miners' earnings - cost

effectiveness of introduced technology

to be demonstrated (Activities 5.3 &

5.4).

· Training of local manufacturers will

minimize dependence on importation

of technology (Paragraph # 28;

Activity5.2)

· The catalytic effects of the project

(Paragraph #31) will lead to extension

2 The Co-financing Activities (Annex E) and Baseline activities (Annex F) were identified by the national experts in
collaboration with the country departments responsible for mining affairs.

2

---

to other affected areas and regions.

· Capacity building of stakeholders

lead to sustainability (Paragraph #s24,

35-36).

· Current approaches by national and

other international bodies based on

piecemeal solutions - Paragraph #s9-
· Describe alternative project approaches
12.
considered and discarded.
4. Institutional


Coordination & Support
IA Coordination and Support Describe how the proposed project is located within
· Core commitment &
the IA's:

Linkages
· Country/regional/global programs.
· Project directly supports UNDP

focus areas of poverty, governance,

environment and gender at national,

regional and global levels.

· Experiences from and linkages with
· GEF activities with potential influence on the
existing GEF Projects on Lake
proposed project (design and implementation).
Victoria, Mekong and the Nile Rivers
relevant (Annex A: Section 2.1)
· Consultation,
· Describe how the proposed project relates to
· Addresses pollution to the
Coordination and
activities of other IAs in the country/region.
International Waterbodies
Collaboration between


IAs, and IAs and EAs, if
· Describe planned/agreed coordination,
· Paragraph #s 39-41
appropriate.
collaboration between IAs in project
implementation.
5. Response to Reviews


Council
Respond to council comments at pipeline entry.
N/A
Convention Secretariat
Respond to comments from Convention secretariat. N/A
GEF Secretariat
Respond to comments from GEFSEC on draft
To be added following review
project brief.
Other IAs
Respond to comments from other IAs on draft
To be added following review
project brief.
STAP
Respond to comments by STAP at work program
To be added following review
inclusion.
Review by expert from
Respond to review by expert from STAP roster3
Annex C; sections of brief in bold
STAP Roster


3 STAP Roster Review, and IA response, is a required annex of the project brief.

3

---

PROJECT BRIEF

1. IDENTIFIERS

PROJECT NUMBER:
GLO/01/
TITLE:
Global: Removal of Barriers to the Introduction of Cleaner
Artisanal Gold Mining and Extraction Technologies
DURATION:
3 Years
IMPLEMENTING AGENCY:
United Nations Development Programme (UNDP)
EXECUTING AGENCY:
United Nations Industrial Development Organization (UNIDO)
REQUESTING COUNTRIES :
Brazil, Indonesia, Laos, Sudan, Tanzania and Zimbabwe
ELIGIBILITY:
Eligible according to paragraph 9(b) of GEF Instruments
GEF FOCAL AREA:
International Waters
PROGRAMMING

FRAMEWORK:
OP#10: Contaminant-Based Operational Program

2. SUMMARY
Environmental impacts resulting from the application of mercury in the processing of gold
within the artisanal mining sector and their effects on International Waterbodies require
concerted and coordinated global responses. The long-term objective of this project is to assist a
pilot suite of developing countries located in several key transboundary river/lake basins in
assessing the extent of pollution from current activities, introduce cleaner gold mining and
extraction technology which minimize or eliminate mercury releases and develop capacity and
regulatory mechanisms that will enable the sector to minimize negative environmental impacts.
This will be accompanied by deve lopment of monitoring programs and in collaboration with
participating Governments, development of policies and legislation that will lead to practical and
implementable standards for artisanal gold mining. In order to ensure sustainability of the
monitoring programs, the project will aim to build capacity of local institutions, e.g., local
laboratories through training and material support so as to enable them carry out continuous
monitoring beyond the project three -year term. The project will also aim to increase knowledge
and awareness of miners, Government institutions and the public at large on the environmental
impacts associated with the application of the current technology. This will be enhanced through
introduction and demonstration of cleaner and efficient technology that apart from minimizing
negative environmental impacts, will improve earnings, health and safety.


3. COST AND FINANCING (MILLION US$):


Total
GEF
Project
6.807
PDF-B
0.318
Sub-Total
7.125
CO-FINANCING
UNIDO
0.360
UNDP
0.140
Countries: Brazil
2.953

2.089
Indonesia
0.060
Laos
0.200
Sudan
1.630

5.450
Tanzania
12.882

1

---

Zimbabwe
Sub-Total
TOTAL PROJECT COST
20.007

4. ASSOCIATED FINANCING (Baseline): Estimated at US $ 72.817 Million over three years.



5. GEF FOCAL POINT ENDORSEMENTS:

Name: M.T. Chinamore


Position: Secretary for Environment and Tourism
Date: 1 Sept. 2000
Organization: Ministry of Environment and
Tourism, Zimbabwe

Name: Abubakar R.M.S. Rajabu

Position: Permanent Secretary
Date: 1 Sept. 2000
Organization: Vice President's Office, United
Republic of Tanzania

Name: Yasin Eisa Mohamed
Position: Undersecretary of Finance & National
Economy
Date: 18 Oct. 2000
Organization: Ministry of Finance & National
Economy, Sudan

Name: Effendy A. Sumardja
Position: Assistant to the Minister for Global
Environmental Affairs
Date: 10 Nov. 2000
Organization: Ministry of Mines & Energy,
Indonesia

Name: Washington Aquiono de Mendonca Position: Coordenador Geral de Operacoes Socials
Date: 11 Jan 2001
Organization: Ministerio do Planejamento,
Orcamento e Gestao, Brazil

Name: Xayaveth Vixay
Position: National GEF Focal Point, Dept. of
Environment
Date: 23 March 2001
Organization: Science, Technology and
Environment Agency, Laos Peoples Democratic
Republic


6. IMPLEMENTING AGENCY CONTACT:

Andrew Hudson, UNDP-GEF, Principal Technical Advisor, International Waters, Tel. (212)
906-6228, Fax. (212) 906-6998, e-mail: andrew.hudson@undp.org

2

---

LIST OF ACRONYMS/ABBREVIATIONS

PCU = Project Coordination Unit
CTA = Chief Technical Advisor
SSME = Small-Scale Mining Expert
PADCT = Programa de Apoio ao Desenvolvimento Científico e Tecnológico
CNPq = Conselho Nacional de Desenvolvimento Cientifico e Tecnologico
CYTED = Ciencia y Tecnologia para el Desarrollo
Faperj = Fundaçao de Amparo a Pesquisa do estado do Rio de Janeiro
UNDP = United Nation Development Programme
UNIDO = United Nations Industrial Development Organization
GEF = Global Environmental Facility
CETEM = Centro de tecnologia Mineral
NGOs = Non-Governmental Organizations
CPTF = Country Project Task Force
BPTF = Basin Project Task Force
GPTF = Global Project Task Force
UNEP = United Nations Environment Programme
MTRDC = Mineral Technology Research and Development Centre
SADC = Southern Africa Development Cooperation

3

---

I.
Project Description

Background and Context (Baseline Course of Action)

Introduction
1. Artisanal mining which is sometimes used synonymously with small-scale mining means different
things to different people. There is no universal definition of what constitutes an artisanal or small-scale
mine. However, in this proposal, artisanal mining is used to ref er to those mining activities carried out by
individuals, families, and/or adhoc groups (some form of co-operatives) of indigenous people, the
majority of which have no technical skills and lack adequate working tools. Similar activities in Brazil
are commonly referred to as "Garimpos" and those carrying out the activities as "Garimpeiros". Although
the term "artisanal mining" is used in some countries, e.g., Zimbabwe, to refer to illegal alluvial gold
mining activities, it is used in others to refer to those activities that are carried out without following
conventional mining engineering norms. As such a good number of artisanal miners in countries like
Brazil, Indonesia and Tanzania are licensed and there are policy drives to get all mining activities
licensed as a way of transforming them into organized small-scale mining activities. Although there have
been improvements by various countries in recognizing artisanal mining as a significant economic sector,
the promulgation of legal frameworks that are conducive to this sector remains elusive. In Sudan, for
example, the activities are not recognized by any legal framework although individuals can be licensed
through special agreements in which conditions for conducting mining activities are set. Although there
are visible attempts within the participating countries to transform this sector into an economic sector, the
lack of adequate resources means that illegal activities are still wide spread.

2. Despite these activities being individually small, their combined economic and social impacts are
substantial for the economies of many developing countries. Globally, it is estimated that up to 12% of
metallic minerals, 31% industrial minerals, 20% coal, 10% diamonds and 75% of gemstones production
come from small-scale mining operations. In individual countries the economic benefits are even higher.
For example, whereas in Brazil activities by Garimpeiros, are estimated to produce 50% of the country's
total gold production averaging around 60 tons, it is estimat ed that in both Tanzania and Zimbabwe
artisanal miners have the capacity to produce 10 tonnes of gold per year. On average, it is estimated that
artisanal miners in Indonesia and Laos have annual gold production of nearly 50 and 0.5 tonnes
respectively. Although statistics are hard to establish, estimates show that in Sudan where artisanal gold
mining is relatively small, 10 tonnes of gold have been produced over the last thirty years (1970 to 1999).
These activities provide considerable employment especially in the rural areas and thus contribute
substantially to poverty alleviation. It was estimated in 1993 by the International Labour Organization,
(ILO), that out of the 30 million or so mineworkers throughout the world, 6 million were engaged in
artisanal mining in developing countries. Within the six participating countries, available figures show
that nearly 2.0 million people are directly involved in artisanal mining activities and a number of those
whose livelihoods depend on these activities in one way or another is over 10 million. Given the fact that
rural poverty is prevalent in most developing countries, artisanal mining has room to contribute fully to
economic and social development. It is now widely accepted by large mining companies the world over
that artisanal miners are one of the most important tools for finding sizeable gold deposits. Artisanal
mining also allows the exploitation of marginal reserves that would otherwise be classified as
uneconomical.

3. Although artisanal mining has shown some positive contributions, it has also suffered negative
conceptualization as a misnomer to mineral sector development by host Governments. Whereas some
countries choose to ignore the existence of such activities, others lack adequate legal frameworks to
regulate them. As a result, the activities are carried out illegally thus denying the host Governments the
badly needed revenues. Even in countries that have enacted legal and regulatory frameworks for
controlling such activities, the lack of adequate resources limits the capacity to institute them effectively.
The combination of this and the lack of technical know-how and financial means make it difficult for
miners to invest in appropriate technology. Mining and processing activities are carried out by manual
means or through application of locally improvised but inefficient equipment and tools. As a result, the
activities have become synonymous to negative environmental impacts, inefficiency, lack of adherence to
health and safety standards, and activities that have negative social impacts. The uncontrolled use of

4

---

mercury as a cheap means for recovering gold is now threatening the health of miners and members of
communities far away from mining areas. Most of the negative factors tend to reinforce one another
resulting in a vicious circle that is difficult to break. For example, the lack of regulatory mechanisms
means that Governments lose the much-needed revenue that in turn makes it impossible to provide
adequate control due to lack of resources. The lack of, technical know -how, access to credit facilities, and
technical support coupled with poor organizational structures means that miners are unable to invest in
technology and hence cannot improve their working methods. This results in negative environmental
impacts, low productivity and hence earnings and the vicious circle continues.

4. In all the participating countries, women are major participants in artisanal mining activities. In Laos it
is estimated that almost 80% of all artisanal gold panners are women. In Zimbabwe, the majority of the
350,000 estimated artisanal miners are in gold digging and panning with 50% comprising of women and
children. In Tanzania, 26% of all 600,000 artisanal miners are estimated to be women most of which
mine gold and gemstones. In Sudan it is estimated that 35% and 10% of the miners is comprised of
women and children in the Southern Blue Nile and Eastern Bayuda Desert regions respectively. Despite
these impressive figures, the number of women miners with mineral rights is still limited. In other words
the majority of women operators are still in the illegal miners category. Direct entry into mining
production activities is often determined by taboo, socio-cultural factors, financial and economic
capacity, technology and organizational aspects.

Artisanal Gold Mining Activities in International Waterbodies
5. The selection of countries participating in this project was done based on the intensity of mercury
based artisanal gold extraction activities and their impacts on water bodies of global significance. In the
South American region, the Amazon Basin is the largest drainage system in the world with an area of
about 6.0 million square kilometres. The Amazon River has a total length of 6400 kilometres, which is
slightly shorter than the Nile. Stretching almost 2760 kilometres from north to south at its widest point,
the Basin occupies a great part of Brazil and Peru, significant parts of Columbia, Ecuador and Bolivia
and a small area of Venezuela. Almost two-thirds of the Amazon's main streams and by far the largest
portion of its Basin are within Brazil. More than two thirds of the Basin is covered by an immense
Amazon Rain Forest which represents about half of the Earth's remaining rain forest and constitutes the
largest reserve of biological resources. Artisanal gold mining activities in the area are probably the most
in the world with one of the largest area, Tapajos in the Para State occupying an area of up to 2.9 million
hectares. At the peak of the gold rush in the 1980s, it was estimated that nearly 1.0 million people were
directly involved in the activities, with 400,000 of those being in the Tapajos area alone. Available
figures show that nearly 1,000 tonnes of mercury were dumped into the Amazon Basin during the 1980s
and nearly 130 tonnes are currently dumped annually.

6. Within the participating countries of the African Region, the significant International Waterbodies
include the Nile River system, Lake Victoria and the Zambezi River system. The Nile River system is
composed of the Blue Nile (Abbai) River that originates from Lake Tana and the White Nile that rises
from Lake Victoria. Sudan occupies a major part of the River Nile basin. Along its course (6825 km), the
Nile drains a total area of 2.96 million square kilometres from the Equator up to the Mediterranean coast
in Egypt. Areawise, the Nile basin represents one tenth of the African continent. Mining along the Nile
covers nearly 2,000 km2 in the Southern Blue Nile region with mine workings developed in old river
terraces along the riverbanks and its tributaries at the foothills of the Ethiopian highlands. It is estimated
that nearly 120,000 people are engaged in these activities. On the other hand, Lake Victoria which has an
area of more than 70,000 km2 is Africa's largest lake and second largest in the world only to North
America's Lake Superior. The Lake, which is surrounded by one of the most highly populated areas in
the world and is shared by Tanzania (51% of the Lake area), Uganda (43%) and Kenya (6%), is a source
of employment for nearly 30 million people. The Lake Victoria Goldfields which cover almost 200,000
km2 is estimated to employ nearly 300,000 people and produce nearly 70% of the country's total gold
production. Nearly 12 tonnes of mercury are released to the environment in Tanzania alone. More than
50% of artisanal gold panning activities in Zimbabwe are carried out within the Zambezi River system
(more than 2400 kilometres are panned) and its tributaries. The Zambezi flows along the northern and
Southern borders of Zimbabwe and Zambia respectively before cutting across central Mozambique on its
way to the Indian Ocean. There are about 350,000 gold panners in the country with as many as 300

5

---

panners concentrated in every kilometre of the widely panned sections of the Zambezi River system river
and releasing nearly 12 tonnes of mercury annually to the environment.

7. River Mekong in Laos and River Kahayan in Central Kalimantan, Indonesia are the significant
International Waterbodies within the Asian participating countries. The River Mekong which is about
4,500 kilometres long and is a life-stay for almost 50 million people and their cultures, sets out at the
Qinghai plateau in Western China before flowing into Laos, Mynmar, Thailand, Cambodia and Vietnam.
Although the upper portions of the river are characterized by turbulence, the lower Mekong is more
placid, and the annual flooding supports a biologically diverse ecosystem. In Laos, alluvial mining
activities are carried out as seasonal ac tivities during the dry non-agricultural season mainly by dredging
on the River Mekong and its tributaries. Up to 3,000 miners have been found at any one time working on
River Mekong. The Kahayan River, is the largest river in Central Kalimantan and drains directly into the
Java sea and thus with effects to Singapore, the Islands of Sumatra, Java, Bali and others. Most activities
are based on alluvial operations within the river systems with a few mining hard rock gold veins.
However, even those in hard roc k mining transport the ore to the rivers for processing. The Kahayan
River in Central Kalimantan and the Tapian River in North Sulawesi are known to have a high
concentration of miners per kilometre length. It has been reported that more than 2,000 illegal miners
would converge on single mining site following a reported gold recovery. In Indonesia where artisanal
gold mining activities are carried out either through village cooperative units or through illegal operations
and are found in the provinces of West and Central Java, Sumatra, Central and East Kalimantan, North
Sulawesi and others, nearly 180 tonnes of mercury are released to the environment annually.

Negative Environmental Impacts due to Artisanal Gold Mining
8. Artisanal gold mining activities within the participating countries under review show negative
environmental impacts that tend to overshadow their positive contributions. Mining is carried out either
by pitting in both hard rock and in old riverbed alluvium or by dredging existing riverbeds all of which
generate substantial amounts of rubble. Whereas obscured pits in abandoned areas are dangerous to
people and animals, the mined rubble blanket the top fertile soil and thus lead to loss of grazing and
agricultural land. The exposed mined areas are susceptible to accelerated erosion from both wind scour
and surface runoffs and may lead to Acid Mine Drainage. Piles of tailings most of which contain toxic
chemicals, e.g., mercury, are directly washed into rivers resulting to siltation and water pollution
problems. Pools of stagnant water left behind during washing and abandoned flooded pits turn into
breeding grounds for Malaria spreading mosquitoes. Poor sanitation from mining camps, hydrocarbons
from machinery, uncontrolled use of explosives and others, add to pollution of surface and ground water
systems. During PDF-B phase of this project, it was revealed that mercury is directly released into rivers
and lakes through adding mercury during panning of the alluvial ore or washing of the hard rock-based
ore within the waterbodies that is transported from far areas. The key concerns here are the direct release
of mercury into the waterbodies, its accumulation and subsequent methylation to organo-mercury and
hence transfer into the food chain through the aquatic ecosystem. The behaviour and fate of mercury in
the environment is much dependent on its chemical form with the metallic, divalent and mono-
methylated forms being of most concern. The oxidation or conversion of metallic mercury to the divalent
form occurs in the presence of oxygen, certain types of bacteria, SH-compounds with affinity to divalent
mercury or the acidity environment, e.g., that found in most forest rivers. The formation of methyl
mercury from the divalent mercury is then aided by bacteria that are found in bottom sediments in rivers,
estuaries and oceans, intestines, faeces, soils and yeast. These processes are crucial to the transfer of the
rather inactive metallic mercury released by gold miners to the food chain. The transformation of
inorganic mercury to an organo-metallic compound, methyl mercury, is the most significant in terms of
uptake and accumulation of mercury by man as this compound can block enzymes and so damage
essential metabolic processes. Available data indicate that the amount of mercury released during burning
of the amalgam is approximately in the ratio of 1.2 - 1.5:1 to the amount of gold produced. It was
observed by STAP that "... one important piece of background information is missing and this
concerns hard data on mercury poisoning in humans in the countries concerned." Apart from
Brazil where detailed studies on mercury pollution and poisoning have been carried out and is
readily available, there is limited data from the other participating countries. Howeve r, as shown
from Annex I, even from the available limited data mercury poisoning in both Tanzania and

6

---

Zimbabwe is already a cause for concern. For example, whereas the WHO threshold limit for
mercury level in urine is 50 ng/ml, miners in Tanzania show leve l of up to 411 ng/ml.

9. At present, there is not any single "off-shelf " solution to problems related to artisanal mining. The
introduction of cleaner mining and extraction technology would go a long way to minimize the activities
impacts to the environm ent, maximize the socio-economic benefits and ensure that operations are
sustainable and adhere to health and safety standards. Although piecemeal solutions have been tried in
many countries, a more holistic approach is required in dealing with artisanal m ining problems. Attempts
to such an approach that will ensure the introduction of cleaner mining and extraction technologies is a
priority for UNIDO, the executing agency of this proposal.

International and National Actions
10. The plight of artisanal and small-scale mining has attracted the world attention since the seventies. In
1972, the United Nations Department of Economic and Social Affairs published the proceedings from a
seminar organized to discuss small-scale mining activities. Although a number of meetings have since
been held and strategies laid on how to transform the sector, there have been limited actions "on the
ground". A meeting of different international organizations and mining experts that was convened in
Harare, Zimbabwe in 1993 in search for solutions to artisanal mining problems, came up with what is
known as "The Harare Guidelines on small / Medium-Scale Mining". The implementation of the
guidelines whose main objective was to provide a framework for encouraging development of small and
medium-scale mining as legal sustainable activities was left to individual countries and have had limited
impacts.

11. In 1995 the World Bank hosted a "Round Table on Artisanal Mining" meeting in Washington to chart
out a strategy for dealing with the sector's problems. The meeting came up with what the Bank published
as a proposal for assistance known as "A Comprehensive Strategy Towards Artisanal Mining" aimed at
minimizing the negative side effects and thus maximize socio-economic benefits of artisanal mining. The
strategy which has since been implemented in a number of countries identified the negative side effects
of artisanal mining as being; unacceptable environmental practices; poor social, health and safety
conditions; illegal mining and marketing and waste of resources. Where it has been implemented, the
program has succeeded in strengthening the institutional capacity and introducing internationally
competitive legal, regulatory and fiscal frameworks and hence enhanced the process of legaliz ing the
artisanal mining activities. This program however has not adequately addressed itself to finding solutions
to problems associated to artisanal mining environmental impacts. With the increase in poverty in the
developing world and the lack of coordinated international actions, the amount of mercury that has is
released to the environment from artisanal gold mining activities is bound to keep increasing.

12. Following the problems of the gold rush experienced during the 1980s, the Brazilian House of
Representatives commissioned the Center for Minerals Research, CETEM, of the Brazilian Research
Council, to evaluate the state of the art of the operations, propose solutions, and advise the House on
possible control legal measures. Through a four-year program, comprehensive descriptions of the
activities, data related to mercury and particulate matter pollution, proposals for control legislative
measures, were produced. However, practical implementations of the findings of this program were
hampered by the lack of adequate resources especially when dealing with such a large area like the
Amazon Basin. On the other hand, the Government of Tanzania in collaboration with the World Bank
formulated the Mineral Sector Development Technical Assistance Project in 1994 in order to provide the
Government with necessary technical, managerial and material support for the implementation of its new
private sector oriented mining development strategies. One of the major components of the US $13.9
million five-year project was to improve the economic, social and environmental performance of the
artisanal mining in order to encourage and expand private investment in the mining sector. Although the
project resulted in the country's first mining environmental legal and regulat ory framework, it has not
addressed itself fully to the negative environmental impacts resulting from artisanal mining activities.
The European Union in collaboration with the Government of Zimbabwe has embarked on a US $38.7
million project part of which will be spent on development and control of the small-scale mining sector.
Although there are similar programs in other countries, most have not addressed themselves to the
artisanal mining environmental problems of a global nature.

7

---

UNIDO's Relevant Experience
13. Over the years, UNIDO has gained a lot of experience in dealing with artisanal related problems
especially in developing countries. In 1995, UNIDO initiated a program named "High Impact Program
No 4" with the main theme being to "Introduce New Technologies for the Abatement of Global Mercury
Pollution". Following the launch of this program, an international workshop was conducted in November
1995, in Jakarta, Indonesia on "Ecologically Sustainable Gold Mining and Processing" and it attracted 41
participants from 14 countries. Based on the recommendations of the workshop and with support from
the donor community and host Governments, UNIDO initiated programs in a number of countries, e.g.,
Cameroon, Ghana, Philippines, and Tanzania, aimed at asses sing the potential for the introduction of new
technologies for the abatement of mercury pollution. These programs, some of which are on-going, have
enabled UNIDO to gain experience and appreciation of the magnitude of the mercury pollution problems,
project co-ordination and establishment of working relationships with Governments and local
institutions. In addition, during the PDF -B phase of this project, UNIDO conducted preliminary
investigations in the six countries participating in order to establish th e intensity of the artisanal mining
activities and their impacts on the International Waterbodies. Review of previous related studies,
identification of the "hot spots" areas (rivers and waterbodies) and estimation of levels of pollution
resulting from the application of mercury around these areas, were carried out. Apart from establishing
the most affected International Waterbodies, barriers limiting the introduction of cleaner technologies
were established in each of the participating countries.

Current options for developing sustainable artisanal mining
14. The barriers limiting artisanal miners from adopting sustainable and cleaner technology results from
the fact that both the miners and the relevant Governments find themselves in negative circles of cause
and effect. The application of poor technology leads to low productivity that in turn results in low
revenue earnings and hence inability to invest in appropriate technology, it traps miners in crude and
inefficient working methods and hence results in severe negative impacts to the environment, health and
safety. On the other hand, the institutional weaknesses that lead to inability to enforce the existing
legislation results in illegal operations, poor environmental, health and safety standards and loss of the
badly needed fiscal revenues. The loss of fiscal revenues makes the authorities unable to perform their
regulatory functions and hence perpetuates uncontrolled artisanal mining. In order to develop artisanal
mining into sustainable and environmentally acceptable activities, both negative circles must be broken.

15. In view of the difficulties facing both miners and the governing authorities, the increase in knowledge
and awareness and the introduction of efficient and cleaner technologies are at present the best option for
developing environmentally acceptable activities. Prior to such intervention measures, the baseline data
regarding environmental, technological and socio-economic issues, should be established. The increase
of knowledge through training should make use of the UN Train-X network and its training development
methodology in order to create course modules that are targeted and that can be easily adapted by others.
Both training and awareness campaigns should be developed through involvement of miners and their
organizations in order to enhance their acceptability. Such programs should provide special
considerations for women whose direct entry into artisanal mining activities is often limited by socio-
cultural issues and the strenuous nature of the activities. The STAP Reviewer states that "In addition,
there appears to be medical evidence that the unborn child is particularly sensitive to mercury.
Hence on medical ground the further involvement of women in mining activities involving mercury
should be subject to caution". It is true that one of the dangers facing women miners using
mercury is the effect on unborn babies. However, it is also true that in both Africa and Asia where
poverty remains prevalent and women are the major bread winners, it is almost impossible to
prevent them from participation in artisanal gold mining activities. It is therefore regarded
practical to give priority to women miners during training and awareness campaign programmes
so that the majority of them can adopt cleaner technology. Demonstration of efficient and cleaner
technologies should be conducted in selected demonstration sites so as to enable miners appreciate the
monetary and non-monetary benefits. Assistance should be provided to Governments to enable them
develop policies and legislation that would lead to implementable standards. Development of
enforcement programs and capacity to enable local institutions carry out continuous monitoring, are
essential for promotion of environmentally acceptable artisanal gold extraction activities.

8

---

Importance of the GEF Intervention
16. It is now widely accepted that the problems associated with artisanal mining in developing countries
are similar and require integrated solutions and partnership between different players. The problems
relate to protection and effective resources utilization, to general environmental conditions in areas
surrounding the mines and in remote areas receiving mine waste and contaminants and to safe working
and health conditions of miners. Whereas most attempts indicate appreciation of the extent of the
negative environmental impacts resulting from these activities, no single program within the six countries
has addressed itself to the effects of these impacts on International Waterbodies. The significance of the
waterbodies surrounded by these activities has not been taken into consideration in some of the work that
has attempted to solve artisanal mining problems. The work done during PDF-B phase of this project
indicated the barriers to include little awareness amongst miners, the public and Government institutions
on the impacts resulting from mercury pollution, lack of adequate policies and regulatory frameworks,
application of poor technology, and lack of access to information and technology and the overall lack of
local capacity to carry out continuous monitoring on mercury pollution.

17. The proposed GEF intervention will show, through the establishment of the envisioned demonstration
projects, how the current uncontrolled artisanal mining activities can be transformed into more organized,
environmentally acceptable and sustainable operations. In each of the participating countries, the
program will aim at assessing the extent of mercury pollution, raising awareness and increasing
knowledge of the miners and the public, introducing and demonstrating the application of cleaner and
efficient technology, assisting the Government to put in place practical and implementable policies and
legislation and building capacity to ensure contin uous monitoring of mercury pollution on the
surrounding waterbodies. This program will also help to demonstrate to relevant Governments on the
approach towards abatement of mercury pollution. The absence of the proposed GEF intervention will
not only allow the continuation of unorganized artisanal mining and its negative effects, but will allow
the incremental build-up of mercury pollutants within the targeted international waters and its eventual
transmission to other countries and regions.

II.
Rationale and Objectives (Alternative Course of Action)

Long-term Objective
18. The long-term objective of this project is to assist a pilot suite of developing countries located in
several key transboundary river/lake basins in assessing the extent of mercury pollution from current
activities, introduce cleaner gold mining and extraction technology that minimize or eliminate mercury
releases and develop capacity and regulatory mechanisms that will enable the sector to minimize negative
environmental impacts. The STAP reviewer states that "It is not clearly stated that the main
objective of the project is be to reduce the introduction of mercury in the environment (e.g.
international waters) and that the various methods mentioned are only instruments in order to
achieve this goal". It is true that reduction of the introduction of mercury to the environment is the
main goal of this project. It is however imperative that the main instruments of achieving that goal
and that lead to global environmental benefits are part and parcel of the project's long-term
objective. STAP further observes that "This goal can be achieved through a top-down approach
(regulatory framework) addressing government officials and enforcers and a bottom -up approach
(awareness on the danger of mercury and introduction of new technology) by direct involvement of
the individual miners. This clear distinction is not made in the proposal and hence it gives the
impression of muddled objectives". Experience acquired by UNIDO over the years in dealing with
artisanal mining problems in countries like Ghana, Philippines and Tanzania has shown that the
complexity associated with achieving the project goals while meeting the needs of miners and their
organizations, the Government and other parties, require a combination of these approaches.
While it is rare to hear artisanal miners playing a role in formulation of a country's mining policy
and legislation, this was achieved in Tanzania where awareness campaigns to miners were run
concurrently with drafting the legislation and bringing the two parties through workshops to
debate and suggest improvements. This combination of top-down and bottom-up approaches will
be applied in achieving the project goals and Annex H shows some of the proposed approaches.


9

---

Specific Project Objectives
The following specific project objectives and related activities will be implemented within the
participating countries.

Objective 1A: To ensure effective project coordination and support (providing information,
communications, professional assistance, program implementation and evaluation and
assessment) through establishment of a UNIDO based Program Coordination Unit (PCU)
and a Global Project Task Force.

Objective 1B: Identification of, and provision of resources for the establishment of the program
management structures in each of the six participating countries and the creation and
operation of the basin and country specific project task forces.

Objective 2:
Identify project demonstration sites and organize training aimed at increasing knowledge
and raising awareness of miners, Governments, NGOs and the general public on the
environmental and health impacts associated with the current artisanal mining practices
and the environmental, health and economic benefits of employing appropriate
technology.

Objective 3:
Identify hotspots in project demonstration sites, conduct geochemical and toxicological
studies and other field investigations in order to assess the extent of environmental
(mercury) pollution in surrounding water bodies and devise intervention measures.

Objective 4:
Establish a databank comprising of technological requirements relevant to artisanal gold
mining and extraction activities through field investigations, interviews with miners,
miners' associations and other rele vant institutions.

Objective 5: Acquire and demonstrate, within the project demonstration sites, the application of
affordable high-efficiency clean technology with improved gold processing methods
while avoiding environmental degradation from mercury contamination.

Objective 6:
Based on the acquired experience, develop sustainable extraction indicators and hence
assist Governments to develop generic and to the extent possible, country specific
policies and legislation that will lead to implementable standards on the application of
mercury with special attention to minimization of environmental impacts.

Objective 7:
Promote the dissemination of the produced project results and identify opportunities that
will allow the project to continue beyond the three year time frame through self-
financing and to initiate and conduct a Donor Conference to solicit financing.

Rationale for GEF Intervention
19. One of the priority areas identified by GEF under the "international waters focal area" is the
"degradation of the quality of the transboundary water resources, primarily due to pollution from land-
based activities". The negative impacts resulting from artisanal mining, which are land-based activities,
lead to degradation of the selected International Waterbodies resulting to far reaching consequences. This
project is also consistent with the GEF Operational Program #10 which targets projects that "help to
demonstrate ways of overcoming barriers to the adoption of best practices, waste minimization strategies
and pollution prevention measures that limit contamination of the international waters environment". The
proposed activities aim at removing barriers that inhibit artisanal miners from applying cleaner and
efficient technology. Apart from removing the barriers the project will demonstrate the application of
cleaner technology and conduct training to the miners in order to enhance the application of cleaner
technology and thus reduce pollution and minimize waste resulting from the currently applied poor
technology.


10

---

20. In all the six countries, artisanal miners use mercury as a major component in gold recovery. The
focus of Operation Program #10 is stated as being on poorly addressed global contaminants such as
mercury. Apart from introducing alternative techniques that will minimize the application of mercury,
methods for recirculating mercury during distillation and thus avoid its direct release to the environment,
will be introduced. As such, the proposed project represents an important step towards realizing the GEF
operational program objectives.

III.
Project Activities / Components and Expected Results

GEF Project Objectives and Activities
Objective 1A: To ensure effective project coordination and support (providing information,
communications, professional assistance, program implementation and evaluation
and assessment) through establishment of a UNIDO based Program Coordination
Unit (PCU) and a Global Project Task Force.

Rationale:
21. It is now widely accepted that problems associated with artisanal mining practiced in different
developing countries are similar in nature. As such, solutions to these problems need a globally
consistent approach that is effectively coordinated in order to deal with the interrelationships of the
individual problems. Past approaches which have been implemented in individual countries with a focus
on isolated problems have had limited impact. UNIDO's experience in dealing with problems of a similar
nature and its international network, will be an added value in this project. In addition, UNIDO will
recruit on full time basis a senior professional staff who will work as the Chief Technical Advisor. This
objective focuses on the establishment of a Project Coordination Unit (PCU) based at the UNIDO
Headquarters in Vienna under the leadership of the Chief Technical Advisor (CTA) and with the
assistance of a Small-Scale Mining Expert (SSME) and supporting staff from UNIDO itself. It is
envisaged that the work of the PCU will be supported by GEF over the three years of the GEF sponsored
project. It is expected that after three years, mechanisms will have been established within the
participating countries and UNIDO that will enable the project to continue beyond this period. This will
enable UNIDO to remain with the monitoring role, in collaboration with respective Governments, and
use the experience to extend the project to other countries. At a global level, a Global Project Task Force
(GPTF) comprising of members from various task forces, country focal points, PCU, UNDP and UNIDO
will be set-up to assess the achievements and failures and recommend strategies for future directions.

Activity 1A.1 Recruit and hire the Chief Technical Advisor (CTA), a Small-scale Mining Expert
(SSME) and supporting staff.

Activity 1A.2 Establish the Project Coordinating Unit (PCU) responsible for overall coordination and
facilitation of the project and establish communication channels between participating
countries.

Activity 1A.3 Create and manage a Global Project Task Force (GPTF) with representatives from the
(CPTFs), country focal points, PCU, UNIDO and UNDP.

Activity 1A.4 Establish a project Website and set-up a global resource information centre where
reviews of past and existing studies on the application of mercury in artisanal gold
processing both in individual countries, regional and globally can be stored and shared
accordingly; establish and maintain internet links with all participating countries.

Activity 1A.5 Make arrangements for evaluation and assessment of project results.


11

---

Objective 1B: Identification of, and provision of resources for the establishment of the program
management structures in each of the six participating countries and the creation of
the basin and country specific project task forces.

Rationale:
22. In addition to effective project coordination globally, it is imperative to ensure smooth
implementation of the project activities at the country level. This will be achieved through identification
of a senior Government official within the institution responsible for mining affairs as the country focal
point to oversee the implementation of the project activities. It is imperative that the project is placed
under the leadership of a senior Government official in order to ensure the long-term sustainability,
Government's commitment and assistance in co-financing. In order to enhance effectiveness, an assistant
to the country focal point will also be recruited. The assistant, who will be a person with extensive
experience in the areas of mining and environment, will be responsible for the day to day running of the
project activities. The country focal point and his assistant and in collaboration with the PCU will be
responsible for convening an inter-ministerial project awareness workshop prior to project
commencement that will select members of the Country Project Task Force (CPTF) that will review from
time to time and provide guidance towards effective implementation of the project objectives.

23. The selected study areas are within basins the interests of which are shared by countries other than
those participating in the project. Although some of these countries have no active artisanal gold mining
activities, they are bound to be victims of the resulting negative environmental impacts. In order to
ensure that the project raises awareness of wider audiences, Basin Project Task Forces, (BPTF), will be
created to comprise members from countries sharing a particular basin. BPTF meetings will therefore be
convened annually to discuss the project implementation, results and problems at the regional level and
hence recommend future strategies. This will facilitate sharing of information and development of
strategies that will bring wider regional and hence global benefits. Over the long-term, i.e., looking
beyond the three-year project term, cooperation through BPTFs will facilitate extension of the project and
replication of its results.

Activity 1B.1 In consultation with the Government institution responsible for mining, identify a senior
official to act as the country focal point and thus assume leadership of the project
activities, recruit an assistant for the day-to-day running of activities and provide
working facilities.

Activity 1B.2 In collaboration with the PCU, recruit and hire project consultants, preferably local
consultants, in the areas that are specific to the project activities and time schedules.

Activity 1B.3 Review past, existing and prepare new case studies focusing on the applied
methodologies and lessons learnt and identifying impacts associated with the application
of mercury in artisanal gold processing; Exchange the results with other participating
countries in order to share experiences.

Activity 1B.4 With the assistance of the PCU, plan and hold country-based project awareness
workshops, one in each participating country, that will raise awareness of the addressed
problems, educate participants and improve communication capacities. With participants
being multi-sectoral, create the Country Project Task Force (CPTF) that will be
responsible for reviewing and giving advice on the project directions at the country level.

Activity 1B.5 Create a Basin Project Task Force (BPTF) and provide resources to enable both CPTF
and the BPTF to carry out their roles.


12

---

Objective 2: Identify project demonstration sites and organize training aimed at increasing
knowledge and raising awareness of miners, Governments, NGOs and the general
public on the environmental and health impacts associated with the current
artisanal mining practices and the environmental, health and economic benefits of
employing appropriate technology.

Rationale:

24. During the PDF-B phase it was established that the majority of artisanal miners were not aware of the
negative environmental and health implications associated with mercury use. The lack of awareness,
technical knowledge, support programs and information on different aspects of artisanal mining make the
situation more precarious. It was also revealed that the institutional weaknesses limit the capacity of
Governments to carry out their regulatory functions effectively. Besides, although environmental issues
are multi-sectoral, there is lack of coordination and cooperation among various relevant Government
institutions. Bureaucratic procedures within the relevant institutions force most miners to opt for illegal
mining and trading activities. As such, training and awareness campaigns would go a long way to change
the miner's attitudes towards adopting cleaner working techniques and enable Government institutions to
institute mechanisms for efficient regulation of these activities. In addition, it is envisaged that training
and awareness campaigns will enhance direct participation of women to mine production activities whose
involvement are currently limited by a number of socio-cultural factors. UNIDO has an agreement for
cooperation with the United Nations Environmental Program, (UNEP), which it intends to utilize in order
to enable participating countries access more professionally developed training programs. In addition, the
project will make use of the UN Train-X network which is coordinated by UNDP and its training
development methodology so as to enable participating countries to create course modules that are
targeted and that can be easily adapted by other members of the project. By using the TRAIN-X
methodology the project will engage a consultant to assess potential course development units and/or
delivery units in the six participating countries and run two-weeks course development workshops that
will enable the adaptation of training packages using TRAIN-X methodology. On providing education
and awareness campaigns STAP observes that "... individual approaches are needed taking into
account the level of education and the local languages". This is true and is addressed in this
proposal through Activity 2.5 of Objective 2 that proposes to conduct awareness programmes (and
also training) in national and local languages. The different levels of education of various groups
will be taken into consideration during preparation of the programmes and since this will be done
through consultants and sub-contracts, it will form part of the terms of reference.

25. In order for the project to be focused and thus deal directly with the environmental and health
problems resulting from the application of mercury in artisanal gold extraction, it is of the essence that
the project be implemented in selected demonstration sites in each participating country. By
concentrating the efforts to individual demonstration sites, the project will be able to demonstrate the
effectiveness of the proposed interventions and thus produce measurable results that can be easily
corrected and replicated accordingly. The STAP Reviewer states that "My suggestion would be to
have a demonstration site where this improved technology (mechanical) is applied and results in
improved gold recovery, and then have an exchange of the miners themselves (with interpreters) to
introduce the technique in other mining sites regionally and globally. Such a bottom -up approach
and sharing of experiences by actual miners across the continents would be innovative". This
would definitely be innovative although the practicality of it is doubtful. The cultural influences,
the differences in legal frameworks, the thousands of vernacular languages even within the same
country and other factors would make this innovative approach difficult to implement.
Interpreters will not only be needed for the national languages of the six countries, but for the
particular dialect for a certain group of miners. It is therefore regarded more practical to set
demonstration sites in each of the participating countries from where the project achievements can
be extended to other parts of the country and region. Selection of a project demonstration site will
take into consideration, location in relation to the waterbody, intensity of gold extraction activities, extent
of the application of mercury, extensiveness of the areas and willingness of miners to participate in the
project. Based on the results of surveys conducted during PDF-B of this project, the countries of Brazil,
Indonesia, Tanzania and Zimbabwe will each have two project demonstration sites while Sudan and Laos
will have one site each. Final selection of the sites will be carried out in collaboration with the relevant

13

---

Government institutions in order to ensure that the country's mining development programs are taken into
consideration.

Activity 2.1
Conduct survey and identify appropriate project implementation sites for the
demonstration of efficient and cleaner technology and conduct consultations with
stakeholders regarding the project objectives.

Activity 2.2
Collect and compile information through detailed analysis of the legal and regulatory
framework and its application to artisanal mining.

Activity 2.3
Conduct artisanal miners' training needs assessment through consultations with miners,
miners' associations, local Governments, NGOs, mineral dealers and relevant
Government institutions.

Activity 2.4
Organize and conduct stakeholders' awareness campaigns with target groups being the
miners and their associations, NGOs, members of public, relevant Government
institutions, local governments, etc., covering different aspects of artisanal mining.

Activity 2.5
Prepare and conduct awareness programs through different media, e.g., Televisions,
Radio and Newspapers, in national and local languages aimed at raising awareness of the
public at large on the environmental and health effects of mercury.

Activity 2.6
Based on the results of Activities 2.1 and 2.2 and those from the awareness campaign
programs, create generic and adaptable versions of course packages which will form a
targeted educational and training program for artisanal gold miners, relevant NGOs and
Government institutions. The training program should make participants aware of the
negative impacts of the current operations and the advantages of adopting efficient and
cleaner technologies. By using the TRAIN-X methodology, engage a consultant to assess
potential course development units and/or delivery units in the six participating countries
and run two week course development workshops which will enable the adaptation of
training packages using TRAIN-X methodology.

Activity 2.7
Through the CPTF, assist the Government to prepare programs that will lead to
improved institutional cooperation for the institutions dealing with environmental issues
in the country.

Objective 3: Identify hotspots in project demonstration sites, conduct geochemical and
toxicological studies and other field investigations in order to assess the extent of
environmental pollution in surrounding waterbodies and devise intervention
measures.

Rationale:
26. Most gold miners use mercury for amalgamation as a cheap and fast method for recovering gold. It
has been establis hed that even those working on ores with large particles of gold that can be recovered by
gravity separation, look into mercury as the most efficient way of gold recovery. The major concerns due
to application of mercury in gold recovery is its direct release into the waterbodies, its accumulation and
subsequent methylation to organo-mercury and hence transfer into the food chain through the aquatic
ecosystem. Since most artisanal gold mining in the six countries is carried out around International
Waterbodies, the pollution does affect also the environment and innocent populations downstream. From
a few existing studies and some preliminary investigations conducted during PDF-B phase of this project,
it is clear that the levels of mercury poisoning amongst miners who handle mercury regularly and
mercury pollution levels in different media with mining areas and within the waterbodies, are already too
high. Apart from being the major sources of water for the miners and the neighbouring communities, the
international waterbodies surrounded by the mining activities are the major sources of fish through which
methylated mercury is known to be bio-magnified and thus spread to even further areas through the food
chain. As shown in Annex I, the level of mercury poisoning amongst miners and those living

14

---

downstream of the polluted waterbodies, are already high. It should be noted however, that, apart
from Brazil where detailed studies have been carried out to assess mercury contamination resulting from
artisanal gold mining in the Amazon Basin, there have been limited studies in the other five countries.
Some studies that have been carried out in Tanzania and Zimbabwe have been limited in their scope and
study boundaries. In Brazil where a large amount of data has been established regarding the extent of
mercury pollution, limited resources have made implementation of intervention measures almost
impossible.

Activity 3.1
Conduct interviews and develop a questionnaire in order to establish the general health
conditions of the members of communities living in the mining areas.

Activity 3.2
Conduct geochemical sampling and analysis of the mining area (water, soils and river
sediments) and use the results to identify "hot spots" areas with the project
implementation sites.

Activity 3.3
Collect human specimens and other biological samples and assess the impact and extent
of mercury pollution along waterbodies.

Activity 3.4
Conduct surveys and establish the extent of mercury migration from the selected mining
area to surrou nding waterbodies and the vertical migration within the identified hot
spots.

Activity 3.5
Organize permanent visits of medical doctors who are experienced in dealing with
mercury intoxication problems to carry out specific medical checkups.

Activity 3.6
In collaboration with the Government identify a local laboratory and enhance its
resources capacity to enable it to conduct continuous monitoring of mercury pollution in
waters surrounding artisanal gold mining areas; Assist in the introduction and set-up of a
continuous monitoring program.

Activity 3.7
Formulate and carry out measures for remediation of the "hot spots" through
identification and isolation of mercury containing tailings followed by recovery and/or
immobilization of mercury.

Objective 4: Establish a databank comprising of technological requirements relevant to
artisanal gold mining and extraction activities through field investigations,
interviews with miners, miners' associations and other relevant institutions.

Rationale:
27. Technological problems feature out strongly in artisanal mining because of their direct relationship to
productivity and the environmental scars left behind. Apart from the visible physical damages caused on
the environment, different studies have shown that use of poor technology results in pollution that
affects even those living far from mining areas. The impacts of mercury on the aquatic ecosystem are a
good example. Consequently, any program attempting to transform artisanal mining activities into
sustainable operations cannot ignore the influence of technology. Because of its direct influence on
productivity and the overall working environment, technology has been shown to influence all
approaches towards poverty alleviation. The choice for the efficient and cleaner technology should
however, be carried out with full participation of the target groups. Imposition of technology through
solutions developed behind closed doors has in most cases proved unworkable. This project will avoid
such traps by working hand-in-hand with the miners, their associations, NGOs and the Government in the
choice of the appropriate technology. The STAP reviewer observed that "Direct involvement of the
miners is not well presented and probably very difficult to achieve". The relation ships between
miners and this project were initially established during the PDF-B phase of this project. Apart
from discussing the background to the project, identification of the barriers limiting the adoption
of cleaner technology was carried out in consultation with miners. The preliminary investigations
and results of the levels of mercury pollution and the possible consequences were presented to the

15

---

miners. The collection of body fluids (urine, blood) and hair samples will be carried out on
voluntary basis. Our experience from a similar programme in the Philippines is that once the
results have been obtained, they are presented to the miners as part of the awareness campaign
programme, and where possible treatment for those highly intoxicated organized. Apart from
demonstrating the negative side of the existing technology, this project plans to demonstrate the
cost effectiveness of the new technology and thus enable miners appreciate increased earnings
associated with the new approach. It is envisaged that the combination of training, awareness
campaigns and involvement in the selection, installation and running of the new technology will
enable miners to closely associate themselves with project. The campaigns and training will
employ real case studies based on videos that UNIDO has accumulated from other projects, e.g., in
the Philippines. Glass retorts that allow miners to see clearly the all process and the increase in
quality of the produced gold by removing all the mercury and other impurities, will ensure miners
of a good gold price. The main target of this objective however, is to establish a database of the current
technology and its deficiencies. The collected data will be used to categorize the existing tools into those
that can be modified in order to improve their efficiency, those that need to be replaced and production of
a manual for such technologies. Such data will be used to demonstrate to miners the advantages of the
new technologies.

Activity 4.1
Through field investigations compile a database on the existing artisanal mining and
processing technology and establish technological requirements.

Activity 4.2
Establish Info-base for local and foreign suppliers and supply routes of equipment and
tools with the view of establishing suppliers of environmentally acceptable equipment
and tools.

Activity 4.3
Identify existing facilities and their capacities within mining areas and neighbouring
towns that can be used for fabrication of simple working tools.

Activity 4.4
Establish, through interviews with relevant Government institutions, the tax regime and
restrictions on importation of mining equipment and supplies.

Activity 4.5
Conduct investigations and test the establishment of micro-credit schemes that will
enable artisanal miners to shift to more benign technologies indicating clearly the
conditions for accessibility, likely participants in the program, modes of financing and
other considerations.

Objective 5: Acquire and demonstrate, within the project demonstration sites, the application of
affordable high-efficiency clean technology with improved gold processing methods
while avoiding environmental degradation from mercury contamination.

Rationale:
28. The alternative of not introducing efficient and cleaner technology is to allow the negative
environmental and other impacts resulting from current artisanal mining activities to continue. Continued
negative impacts from artisanal mining, especially the pollution from mercury on International
Waterbodies and the populations at large, will have far reaching consequences. Over the long-term, the
negative impacts are bound to override the economic short-term benefits. To most miners, the quest to
break from the chains of poverty is usually the driving force for their entry in artisanal mining. This
objective aims at introducing technology that will minimize the release of mercury into the environment
including the recovery and/or immobilization of mercury left in tailings that is usually a source of
environmental mercury contamination. The immobilization technology that has already been tried in
Brazil allows mercury to remain in controlled tailings without being released to the environment.
Application of gravity concentration techniques and utilization of mercury amalgamation retorts will not
only eliminate the loss of mercury to the environment, but save miners money through recirculation and
hence reuse of mercury. The overall approach to introduction of clean technology must target the
application of "closed circuit processing", i.e., processing flow-sheets that do not allow the release of
mercury outside the control boundaries. Further to these approaches, it is imperative to demonstrate

16

---

simple techniques for concentrating and recovering gold without the use of mercury. The fact that miners
of alluvial gold ore that is known to have coarse gold particles use mercury indicates the problem
associated with the lack of technical know -how. Training on different mining and processing techniques
that are not only efficient, but also environment ally acceptable, will enhance the minimization of
negative environmental impacts. It is also appreciated that any technology introduced must be easily
accessible and affordable by the stakeholders. In order to ensure this, the project will identify local
fabricators and manufacturers who will be trained in the production of the identified technology.

Activity 5.1
Organize on the job training in order to introduce miners to the new working methods
and equipment.

Activity 5.2
Identify and conduct training to local fabricators and manufactures and work closely
with the trainees to enable them to produce tools, e.g., sluice boxes, mercury retorts,
gravity concentrators, shaking tables and others that conform to specified project
requirements and that will be used during the project implementation and beyond.

Activity 5.3
Demonstrate competitive basic mechanical alternatives to mercury amalgamation and
introduce "closed circuit processing" methods for activities still based on amalgamation
and show the cost effectiveness of the introduced equipment.

Activity 5.4
Construct demonstration high-recovery gravity concentration equipment, install on
selected sites, assess and evaluate their cost effectiveness.

Activity 5.5
Establish equipment supply channels through linking miners to the suppliers and through
collaboration with the relevant Government institutions.

Activity 5.6
Conduct mercury immobilization through extraction in areas identified as being highly
polluted.

Activity 5.7
Compile and as necessary produce documentary videos on the operations of the different
introduced technology for use on future training purposes.

Objective 6: Based on the acquired experience, develop sustainable extraction indicators and
hence assist Governments to develop generic and to the extent possible, country
specific policies and legislation that will lead to implementable standards on the
application of mercury with special attention to minimization of environmental
impacts.

Rationale:
29. Not all of the six participating countries have instituted environmental policy, legislation and
regulations for artisanal mining activities. Even where the environmental legislation has been introduced,
there is lack of capacity and systematic implementation programs to ensure effective compliance. Also,
the development processes of most artisanal legislative and regulatory frameworks do not take into
consideration the need to promote sustainable operative procedures for the sector. As a result, the existing
legislation try to regulate activities that are unsustainable and with intrinsic negative environmental
impacts. Even with these legislation, the combination of the miners' lack of technical know-how and the
lack of trained and experienced environmental experts within Government institutions, make their
implementation difficult. In other countries, the existing legislation and regulations do not differentiate
between the artisanal and the large-scale mining sectors and as such contain requirements that are not
implementable within the artisanal mining sector, e.g., the requirements to conduct Environmental
Impact Assessments. The worst cases of course are with those countries that do not have any legislation
or regulatory framework for this sector. Consequently, these activities continue to operate unregulated
and thus leading to significant negative environmental impacts. It is therefore important that
Governments should be assisted to develop policies and legislation that are practical and geared towards
the needs of the artisanal mining sectors. In order to achieve that, this objective will aim at developing

17

---

"sustainable gold extraction indicators" or a set of rules developed to promote gold extraction activities
within the following framework:
· processes that minimize mass-flows of overburden and/or gravel/sand;
· minimizes processes energy requirements and, if possible uses clean energy;
· minimizes environmental impacts (effluents to the environment, be it solid, liquid or gaseous);
· maximizes the social satisfaction of the living community and nearby villages.

30. A monitoring program will also be developed and as shown under activity 3.5, capacity of local
laboratories to carry out continuos monitoring of mercury pollution to the waters surrounding the mining
activities, will be enhanced. As a result, the developed policies and legislation coupled with a continuous
monitoring program will lead to setting of achievable and enforceable standards within the artisanal
mining sector.

Activity 6.1
Conduct literature review on artisanal gold extraction activities "sustainable indicator",
policies and legislation on environmental aspects and associated standards paying
attention to mercury pollution resulting from gold processing activities.

Activity 6.2
Carry out review of the identified indicators, legislation and regulations and compare
them to those existing in the country.

Activity 6.3
Based on the results of Activity 6.2, prepare and give recommendations on new or
revised indicators, policies and legislation.

Activity 6.4
Conduct consultations with various stakeholders on the recommendations and collect
views regarding sustainable operative indicators, policies and legislation that will lead to
achievable and enforceable standards.

Activity 6.5
Assist the Governments to develop guidelines on extraction indicators, and policies and
legislation that will lead to achievable and enforceable standards within the artisanal
mining sector.

Activity 6.6
Conduct a workshop with representatives from the stakeholders, relevant Government
institutions, the private sector and general public to discuss the proposed guidelines,
policies and legislation.

Activity 6.7
In collaboration with the Government, develop enforcement programs.

Objective: 7 Promote the dissemination of the produced project results and identify
opportunities that will allow the project to continue beyond the three year time
frame through self-financing and to initiate and conduct a Donor Conference to
solicit financing.

Rationale:
31. Mercury pollution resulting from artisanal gold mining and extraction activities conducted around or
within the identified International Waterbodies, affects more countries than those participating in this
project. Also, within the participating countries, mercury is applied by artisanal miners in many other
areas than those selected for project demonstration. Some neighbouring countries also have artisanal
mining activities although not to the same extent as those in the participating countries. Over the long-
term, the interventions proposed should be expanded to cover wider areas within the same country and
those sharing the target basin. It is envisaged that the project training programs, awareness campaigns,
capacity building and enhancement of the Governments capacity to develop practical policies and
legislation will ensure sustainability of the project. In collaboration with the Government, the CPTF will
be able to develop strategies for expansion of the project within the country. Similarly, the BPTF in
consultations with basin member countries should be able to recommend strategies for extension of the
project in other areas of the basin. The implementation of such strategies will be realized by raising

18

---

finance through demonstration of the current project achievements. The achievements should also be
disseminated both locally and internationally in order to ensure that the project has a much wider
contribution towards minimization of mercury pollution.
Activity 7.1
Organize country based annual workshops on sustainable artisanal gold extraction
techniques with participants from the stakeholders, relevant institutions and the general
public.

Activity 7.2
Organize and conduct three regional annual workshops, one in each of the three regions,
on sustainable gold extraction procedures and techniques with participants from the
stakeholders, relevant institutions and the general public.

Activity 7.3
Review the opportunities for self -financing of project components at the global, national
and regional levels, pinpointing the potential economic sources and mechanisms.

Activity 7.4
Organize and sponsor a donor conference using the ongoing GEF project as a leverage
for the creation of necessary additional financiers.

IV.
Risks, Sustainability and Commitments

Possible Risks
32. Political willingness: The long-term success of the global attempt to minimize negative
environmental impacts associated with artisanal gold extraction activities through the introduction of
efficient and cleaner gold mining and extraction technologies depends on one hand on the political
willingness of the participating countries. Political willingness of individual countries is important in
ensuring that barriers resulting from existing policies, legislative and fiscal frameworks, infrastructural
and other socio-economic related factors are removed. The removal of such barriers will create an
environment for effective execution of the project objectives. The political willingness factor is however
regarded as a moderate risk at this time as most participating countries have already initiated reforms for
the promotion of this sub-sector. The countries have either enacted new policies and legislations that
recognize artisanal mining as an important economic sector or are in the process of doing so. In addition,
all the participating countries have made specific commitments towards support of this project.

33. Miners' willingness: The miners' willingness to participate is crucial to the success of the project.
Miners should be able to associate themselves to the overall approach that attempts to change the fabrics
of their mining culture. Although inefficient, environmentally unacceptable, have poor and health
standards and mostly illegal, most miners see artisanal mining activities as the only way of getting out of
the poverty trap. Miners need to be assured of the economic gains associated with the envisaged changes
in technology and the overall work organization structures. Cultural factors play major roles in the
management of mining operations and living conditions within the mining camps. Compromises on the
cultural and economic aspects of artisanal miners may wither the miners' willingness to participate in the
project. This is not regarded as a major risk for this project as the proposed intervention program will
involve the miners from the planning, implementation, testing, evaluation and monitoring to the
conclusion of the project. The STAP Reviewer observes that "The project abounds with remarks
that mining is carried out often illegally, that no miner's organisations exist, th at mining takes
place in remote areas, low level of education etc. Nowhere in the project it is convincingly shown
how these formidable barriers will be tackled, yet the proposers do not consider it a major risk."
As stated in Section 25 under Objective 2, this project will be implemented through one or two
demonstration sites in each country. Among the factors considered in the selection of the
demonstration sites is stated as "the willingness of miners to participate in the project". In
addition, these sites will be limited to licensed areas in order to enhance the Governments' efforts
in legalizing the sector and thus encourage illegal miners to register. The project will not attempt to
cover the entire country to solve artisanal mining problems. It is expected that at the end of three
years, mechanisms will have been developed to allow miners and the Government to extend the
project to other areas. As such these barriers are not regarded as a major risk.


19

---

34. Volatility of the mineral commodity prices: Low mineral commodity prices in world markets would
normally make a mining venture uneconomic taking into consideration the costs of production. Poor gold
prices would compromise the willingness of artisanal miners to participate in the project. Although gold
prices in the world markets are still low, the downward trend has been reversed and prices are on the rise
again. However, while this is a major risk to large-scale mining companies, it is regarded moderate for
artisanal mining. The low production costs of artisanal mining activities normally allows them to exploit
marginal reserves that are usually regarded as uneconomical by large-scale mining companies. The
increase in knowledge and awareness of miners on different mining issues, will help minimize this risk.

Sustainability
35. At the country level, the project components have been designed to impart knowledge and raise
awareness among participants, build capacity amongst different Government institutions and NGOs and
introduce technology that is effic ient, environmentally acceptable and that adhere to health and safety
standards. The training component of the project is to ensure that miners, equipment manufacturers and
those in control of these activities become increasingly aware of the economic, env ironmental and human
health risks that result from the current working practices. Sensitization of Government institutions and
NGOs will enable them to develop strategies for ensuring that safer and sustainable activities are carried
out. The combination of these approaches and the existence of pilot project results, will ensure that
countries identify elements of sustainability for such activities.

36. The project is designed to exchange information and data and thus utilize the experience of one
country for the benefit of others. A UNIDO maintained Website and a global resource information centre
where reviews of past and existing studies on the application of mercury in gold processing can be stored
and shared accordingly, will be set-up. This will also ensure that proceedings of meetings of the CPTFs,
BPTFs and the GPTF can be exchanged between the participating countries. At the end of the project, a
program for self-financing will be worked out and a donors' conference organized in order to attract more
financing into the project. Attraction of donor funds will be based on demonstration of the achievements
over the three years and the ability to replicate these into other countries and regions and hence ensure
global benefits. It is observed by the STAP Reviewer that "If the website is in English only (as the
amount of money allocated seems to suggest), its access will be severely restricted for regional and
local government officials, local NGO's and mining associations. Nowhere in the budget money is
allocated for translation services". In consideration to extending the Website services it must be
appreciated that the barriers facing most of the stakeholders groups is not limited to language but
also access to computers, computer literacy and hence the Internet. In addressing these problems,
it is regarded feasible within the project timeframe to create a Website that will establish and
strengthen the exchange of information and experiences on country-to-country basis that do not
exist today. Having established this link and over the long-term, countries would have gained
experiences and capacity to extend it to grassroots levels.

Commitment of the Participating Governments and UNIDO
37. This proposal has been prepared with full long-term commitments of participating countries and
UNIDO. Each country is committed to provide one senior government official to lead the project in
additional to providing office space and facilities. On the other hand, UNIDO's commitment to the
project is demonstrated by its willingness to commit a senior technical staff (P5) as full-time member of
the Project Coordination Unit that will be based in Vienna. This will enable UNIDO to utilize its
experience in similar projects and international network for smooth coordination, implementation and
follow -up of the project.

V.
Stakeholders Participation and Implementation Arrangements

Stakeholders Participation
38. During the PDF-B phase of this project, miners, local experts, the Government and local NGOs
participated fully in identifying barriers limiting the introduction of cleaner technology to artisanal
mining activities. Whereas local experts collected data and prepared country reports, the Governments
provided information regarding sectoral development plans and the associated budgets. It is further
appreciated that the success of the implementation phase will also depend on the commitment and

20

---

participation of the stakeholders. In order to avoid mistakes of other projects that tend to ignore the
significance of the stakeholders' participation and thus turn them into sources of data, this project intends
to involve them at all implementation levels. After the project has been approved, six project awareness
workshops will be organized, one in each country, in order to raise awareness of the miners and their
leadership, the Government, NGOs and the general public on the issues to be addressed and exchange
views. This will be followed by a field visit by the country focal point and his assistant in order to
conduct close consultations with the miners and their associations and provide elaboration of the
envisaged project implementation. This will enable adoption of the miners' views into the program and
thus move towards development of a close working partnership between management, consultants and
stakeholders.

Project Implementation
39. UNIDO, which co-ordinated work done under PDF-B and based on its direct international network
and project management experience, will be the executing agency of the project. Through the PCU and in
collaboration with Governments in participating countries, UNIDO is well situated to implement the
project.

Institutional Framework
40. In each participating country the project will be under the leadership of a senior Government official
and will be based within the institution responsible for mining affairs. In order to enhance effective
implementation of the project activities, an assistant to the country focal point will be recruited to oversee
the day-to-day running of the project. A Project Coordination Unit (PCU) based at UNIDO in Vienna
will be responsible for the overall coordination and overseeing implementation of the project activities
globally. The PCU will be comprised of a Chief Technical Advisor (CTA) (Level P5) who will be
assisted by a Small-Scale Mining Expert (Level P3) and supporting staff provided from time to time by
UNIDO. Specific activities will be carried out by both local and international consultants who shall be
recruited by the PCU in collaboration with country focal points.

41. Country Project Task Forces (CPTF) comprising of members from relevant Government institutions
will be established to review, give advice and comments on the project implementation from time to
time. In additional, there will be a Basin Project Task Force (BPTF) which will bring together
representatives from countries sharing the basin upon which the project is being implemented. BPTF
meetings will also be attended by representatives from the PCU, UNIDO and UNDP. The main task of
the BPTF will be to review the project activities, their implementation and give recommendations that
will ensure regional benefits. A Global Project Task Force (GPTF) comprising of members from the
country focal points, CPTF, PCU, UNDP and UNIDO will be set-up to assess the achievements and
failures and recommend strategies for future directions.

VI.
Incremental Costs and Project Financing

42. The execution of the project objectives through pilot projects in selected demonstration sites will
demonstrate the strategies that can be adopted by developing countries in order to minimize the negative
environmental impacts resulting from artisanal gold extraction activities. Artisanal miners use mercury as
an easy and cheap way for recovering gold which in turn is released to the environment with far reaching
negative impacts to human health and the environment at large. Whilst mercury released in a vapour form
can be transported further by wind, that reaching the water systems accumulates in bottom sediments
from where it may be oxidized and finally converted to methyl mercury. As the bottom sediments are
transported by water currents to distant locations so is methyl mercury which is known to accumulate in
biota, particularly in fish and hence entering the food chain. These processes make mercury a global
contaminant with potential transboundary impacts due to atmospheric, riverine and biological
transportation. Despite these transboundary negative impacts, artisanal mining activities are significant to
the economies of most developing countries through their capacities to provide employment to the rural
majority, generate foreign earnings to Governments, exploit marginal uneconomical reserves and assist
large companies in the discovery of potential economic reserves. It is therefore of the essence that
strategies aimed at transforming artisanal gold extraction activities to environmentally acceptable
operations be introduced and demonstrated in relevant developing countries.

21

---

43. The cost of inaction is continued pollution, especially that resulting from the use of mercury which is
known to be biomagnified within the aquatic ecosystem and hence spread further through the food chain.
The incremental costs (IC) associated with the project, and which are the subject of the following table,
are those which are deemed necessary to bring transformation of artisanal gold extraction activities and
thus bring global and regional benefits consistent with the GEF Operation Strategy and OP #10 of the
Operational Programs document.

PROJECT BUDGET









Objective
Project Coordination and Support
Incremental
1A
Costs (US $)
Activities








1A.1
Remunerations for the CTA, Small-Scale Mining Expert and PCU travel
648,000
costs.
1A.2
Establish the Project Coordinating Unit (PCU) responsible for overall


coordination and facilitation of the project.
20,000
1A.3
Create and manage a Global Project Task Force (GPTF).
86,000
1A.4
Establish a project Website and set-up a global resources information centre.
25,000
1A.5
Make arrangements for evaluation and assessment of project results.
100,000

OBJECTIVE 1A INCREMENTAL COSTS TOTAL
879,000









Objective
Establish of country program management structures and Task Forces
1B
1B.1
Recruit an assistant to the country focal point and provide working facilities


Including project vehicle, office facilities and others.
1,176,000
1B.2
Recruit and hire local project consultants in the areas that are specific to the


project activities and time schedules.
30,000
1B.3
Review past, existing and prepare new case studies focusing on applied


methodologies and lessons learnt while identifying impact associated with


mercury application in artisanal gold processing.
60,000
1B.4
Plan and hold country based project awareness workshops, one in each


country and select an inter-ministerial Country Project Task Force (CPTF).
64,000
1B.5
Create a Basin Project Task Force (BPTF) and provide resources to enable


both the BPTF and CPTF to carry out their roles.
362,000

OBJECTIVE 1B INCREMENTAL COSTS TOTAL
1,692,000









Objective 2 Increase artisanal mining knowledge and awareness

2.1
Conduct survey and identify appropriate project implementation sites for


demonstration of new technology.
38,000
2.2
Collect and compile information through detailed analysis of the legal and


regulatory regimes as they apply to artisanal mining.
24,000
2.3
Conduct miners' training needs assessment through consultations with miners,


miners' associations, local Governments, NGOs and relevant institutions.
28,500
2.4
Organize and conduct stakeholders' awareness campaigns with target groups


being miners and their associations, NGOs, the public, relevant Government


institutions, local Governments, etc., on different aspects of artisanal mining.
94,000
2.5
Prepare and conduct awareness programs through different media e.g., Radio,


Television and Newspapers, in national and local languages on effects of
160,500
mercury.
2.6
Based on the results of Activities 2.1 and 2.2 and those from awareness


programs, create generic and adaptable versions of course packages by using


the TRAIN-X methodology which will form targeted educational and training


programs for miners, relevant NGOs and Government institutions.
90,000
2.7


22

---

Through the CPTF, assist the Government to prepare programs that will lead


to improved institutional cooperation for the institutions dealing with
30,000
environmental issues in the country.

OBJECTIVE 2 INCREMENTAL COSTS TOTAL
465,000










Objective 3 Establish human exposure to mercury and pollution impacts of the affected areas
3.1
Conduct interviews and develop a questionnaire in order to establish the


general health conditions of miners and surrounding communities.
34,000
3.2
Conduct geochemical sampling and analysis of the mining area and use the


results to identify "hot spots" areas within the project implementation areas.
350,000
3.3
Collect human specimens and other biological samples and assess the impact


and extent of mercury pollution along waterbodies.
220,000
3.4
Conduct surveys and establish extent of mercury migration from the mining


areas to other areas and the vertical migration within the affected areas.
110,000
3.5
Organize permanent visits of medical doctors who are experienced in dealing


with mercury intoxication problems to carry out specific medical checkups.
30,000
3.6
In collaboration with the Government, identify a local laboratory and enhance


its resources capacity to enable it to conduct continuous monitoring of


mercury pollution in waters surrounding artisanal mining areas. Assist in the


development and set-up of the monitoring program.
300,000
3.7
Formulate measures for remediation and rehabilitation of the "hot spots" areas


including the strategy for immobilization or recovery of mercury.
90,000

OBJECTIVE 3 INCREMENTAL COSTS TOTAL
1,134,000









Objective 4 Establish Technological Requirements
4.1
Through field investigations compile a database on the existing artisanal


mining and processing technology and establish technological requirements.
31,000
4.2
Establish Infobase for local and foreign suppliers and supply routes of

environmentally acceptable equipment and tools.
10,250
4.3
Identify existing facilities an d their capacities within mining areas and


neighbouring towns that can be used for fabrication of simple working tools.
19,500
4.4
Establish through interviews with relevant Government institutions the tax


regime and restrictions on importation of mining equipment and supplies.
11,250
4.5
Conduct investigations and develop micro-financing programs that will


enable artisanal miners to shift to more benign technologies.
500,000

OBJECTIVE 4 INCREMENTAL COST TOTAL
572,000









Objective 5 Introduce efficient and clean technology
5.1
Organize on the job training in order to introduce miners to the new working

methods and equipment.
218,000
5.2
Identify and conduct training to local fabricators and manufacturers and work

closely with trainees to enable them produce tools that conform to specified

requirements and that will be used for project implementation and beyond.
40,500
5.3
Demonstrate competitive basic mechanical alternatives to mercury amalgam-

ation and introduce "closed circuit processing" methods for activities based

on amalgamation; show cost effectiveness of the introduced equipment.
425,000
5.4
Construct demonstration high-recovery gravity concentration equipment,


install on selected sites, assess and evaluate their cost effectiveness.
420,000
5.5
Establish equipment supply channels through linking miners to the suppliers


and through collaboration with the relevant Government institutions.
19,500
5.6
Conduct mercury immobilization through extraction in areas identified as


being highly polluted.
110,000
5.7
Compile and as necessary produce documentary videos on the operations of

the different introduced technology for use on future training purposes.
45,000

23

---

OBJECTIVE 5 INCREMENTAL COST TOTAL
1,278,000



24

---

Objective 6 Assist Governments to develop implementable policies and legislation
6.1
Conduct literature review on artisanal gold extraction activities "sustainable

indicators", policies and legislation on environmental aspects and associated

standards with attention to mercury pollution from gold processing activities.
13,500
6.2
Carry out review of the identified indicators, policy and legislation and


compare them to those existing in the country.
21,000
6.3
Based on the results of Activ ity 6.2, prepare and give recommendations on


new and revised indicators, policies and legislation.
16,000
6.4
Conduct consultations with various stakeholders on the recommendations

and collect views regarding sustainable operative indicators, policies and

legislation that will lead to achievable and enforceable standards.
22,000
6.5
Assist the Governments to develop guidelines on extraction indicators, and
61,500
policies legislation that will lead to achievable and enforceable standards.
6.6
Conduct a workshop with representatives from the stakeholders, relevant


Government institutions, the private sector and the general public to discuss


the proposed guidelines, policies and legislation.
50,000
6.7
In collaboration with the Government develop enforcement programs.
67,000

OBJECTIVE 6 INCREMENTAL COSTS TOTAL
251,000









Objective 7 Self-financing and Donor conference
7.1
Organize country based workshops on sustainable gold extraction techniques

with participants from the stak eholders, relevant institutions and the public.
89,000
7.2
Organize and conduct three regional annual workshops, one in each of the


three regions, on sustainable gold extraction procedures and techniques with


participants from the stakeholders, relevant institutions and the public.
60,000
7.3
Review opportunities for self-financing of project components at the global,

regional and national levels, pinpointing potential sources and mechanisms.
26,000
7.4
Organize and sponsor a donors conference using the ongoing GEF project as a


leverage for the creation of necessary additional financiers.
42,000

OBJECTIVE 7 INCREMENTAL COSTS TOTAL
217,000






SUB-TOTAL PROJECT BUDGET =




6,488,000
Executing Agency Support Costs (5%) =




318,800






TOTAL PROJECT BUDGET =




6,806,800

44. As regards the project period, the STAP reviewer states that "a five-year period seems to be
more appropriate". However, from the experience gained and lessons learnt by UNIDO in
conducting artisanal mining projects in Tanzania, Ghana and Philippines, the three-year
timeframe is adequate for the presented activities. It must also be mentioned that the
implementation of most of the project activities in one or two project sites allows concentration of
efforts and improves time efficiency. In addition, STAP doubts whether "the funding level is
sufficient for the awareness part and for the introduction of new technology to the mining
community at the individual level..." The execution of activities in individual countries is designed
to take advantage of what already exists. For example, in Brazil where extensive data has been
gathered on the extent of mercury pollution, such activities will not be given similar emphasis as in
Sudan or Lao PDR where not even basic data exist. As such, the sufficiency of funds is assured
through giving varying emphasis on activities in accordance to varying levels of development of the
artisanal mining sectors in different countries. On the funding of activity 3.5 above, the STAP
reviewer observed that "For this important activity US$ 30.000 is allocated. However, with six
countries and 10 pilot sites this amounts to US$ 3000 per site. It is doubtful whether this is
sufficient for permanent visits. Furthermore it is doubtful whether there is the experience in each
of countries to identify mercury intoxication". It is true that there is lack of experience in other
countries apart from Brazil to identify mercury intoxication and this has been appreciated by the
proposers. With this in mind, the US $30,000 is a budget allocated only to Brazil. The idea is that

25

---

the three years project period will be used to build the experience in other countries to the level
were medical visits can be organized.

VII.
Monitoring, Evaluation and Dissemination

Monitoring and Evaluation
45. The CPTF is expected to have regular quarterly meetings in order to review the implementation of the
project and thus be able to give advice from time to time on the course of action. In addition, the CPTF
will have resources to visit the project implementation sites, review implementation of the project
objectives and advise accordingly. The BPTF will also meet once a year through which the emerging
issues that are affect countries within the basin will be reviewed in order to ensure regional and global
benefits from the project. The project will also be subjected to various evaluation and review mechanisms
of UNDP, including the Annual Project Review (APR), an independent final evaluation and an annual
Tri-Partite Review (TPR). There will also be a Final Report prior to the termination of the project. At the
country level, the project will also be subject to the GEF review process including PIR and will aim to
establish process (e.g., changes in practices, laws, etc.), stress reduction (e.g., reduced mercury
emissions) and environmental status indicators (e.g., indication of the reduction of mercury in the
environment) and the review of the project implementation processes. The STAP reveiewer observes
that "There is no Gantt chart to show the duration (start and end point) of each objectives and
underlying activities" and that "there is no indication of who is responsible for each of the activities
under the 7 objectives". The point is well taken and Annex J is attached showing the
implementation plan through allocation of activities and the time schedule associated with each of
the activities.

Dissemination of Results
46. Dissemination of the project results will be carried out through meetings, workshops and seminars
with stakeholders and other relevant institutions. At the local level, there will be an annual workshop
organized in each country and attended by stakeholders and representatives from relevant institutions.
Three international workshops, one in each region, are planned and will be attended by representatives
from stakeholders, Government institutions and members of the international community interested in the
subject. Meetings of task forces will serve to disseminate the project results both at national, regional and
international levels. The established global resource information centre that will have a project specific
Website will be used to disseminate the project results to a much wider audience.

26

---

ANNEX A: INCREMENTAL COST ANALYSIS

1.
Broad Development Objectives

1.1
The broad development objectives of the six participating countries is to transform the current
artisanal mining activities into organized activities in order to enhance incomes of the participating
members of the population, minimize negative environmental impacts and enhance development of the
mineral sector and hence the economy. Like in many developing countries, artisanal mining activities are
carried out in the six participating countries mainly as a way of dealing with poverty by the rural
populations. Its popularity is enhanced by the fact that its entry does not require much investment and in
most cases it operates outside the formal business procedures. With little or no mining knowledge,
minimal investment capital and poor legislative frameworks, most activities are disorganized,
unregulated and their formal recognition is only recent following the new international drive to fight
poverty. As a result, the short-term gains envisaged by miners in order to break away from poverty have
largely been outweighed by the negative impacts caused by these activities to the environment, health
and safety of the miners and the neighbouring communities. In addressing the negative environmental
impacts resulting from these activities, some Governments have initiated programs to address the issues
related to the uncontrolled use of mercury in the recovery of gold. However, since most activities have
been operating outside the legal framework, major efforts are still directed towards putting in place
legislative and regulatory frameworks upon which artisanal mining activities can be conducted.

2.
Global Environmental Objective:

2.1
The global environmental objective is to assist developing countries create conditions necessary
to minimize mercury pollution and other negative environmental impacts on International Waterbodies
resulting from artisanal gold mining and extraction activities. Most artisanal gold mining activities within
the participating countries are carried out within basins of major ecological significance and that cross
geographical boundaries to many countries, e.g., the basins of the Amazon, River Nile, Lake Victoria,
River Zambezi, River Mekong and River Kahayan in Indonesia. As such, the negative environmental
impacts on the International Waterbodies within these basins are bound to affect many countries most of
which do not even have gold mining activities. Whereas the Amazon Basin is the largest drainage system
in the world with more than two thirds of its area covered by an immense Amazon Rain Forest which
represents about half of the Earth's remaining rain forest and constitutes the largest reserve of biological
resources, estimates show that gold mining activities dump nearly 130 tons of mercury annually within
Brazil alone. Nearly 200 tons of mercury are dumped into the environment by these activities in
Indonesia and the amount is on the rise in other countries due to the increase in artisanal gold mining
activities. The Governments of the participating countries, acting unilaterally are unable to finance the
high initial start up costs of dealing with mercury related pollution problems. The proposed project will
lead to the establishment of the extent of mercury pollution, increase of knowledge and awareness on
environmental issues, introduction and demonstration of the application of efficient and clean technology
and provision of assistance to Governments to enable them develop policies and legislation that are
practical and enforceable. These efforts will in turn lead artisanal mining activities that are efficient and
environmentally acceptable.

Within the above basins being focused by the project, GEF is already supporting a project within the
Lake Victoria basin that is shared between the countries of Kenya, Tanzania and Uganda, and another
project within the Nile River Basin is in advanced stages. The two projects, inter alia, address
environmental impacts to these International Waterbodies resulting from industrial pollution. This project
will benefit from experiences gained from the two projects by establishing close cooperation through
exchange of information, meetings, conferences and workshops. It is envisaged that such close
cooperation will bring regional and global environmental benefits by extending the gained experiences to
other regions of Asia and Latin America and even beyond.

1

---

3.
Baseline:

3.1
The barriers to the introduction of clean and efficient artisanal gold mining and extraction
technologies that were identified during the PDF-B phase of this project are summarized in Annex D.
The barriers include, inter alia, the weak institutional set ups, lack of or poor legal and regulatory
frameworks, lack of technical know -how, lack of access to appropriate technology, lack of information
and support programs, restrictive minerals marketing systems, inefficient organizational systems and
limited access to finance. Individual participating countries have on-going or planned programs to
address some of these barriers as discussed below. However, the single country approach is not sufficient
to achieve global environmental benefits. As the baseline scenario indicates, emphasis in each country
has been towards reducing the illegal artisanal gold mining activities through enactment of legislation
and relevant regulations. Whilst this is essential in order to ensure adequate control, there is still limited
support towards increasing the miners knowledge and awareness on the effects of mercury pollution,
there is limited access to clean and efficient technology, information on the extent of mercury pollution is
almost non-existent, there is not enough information regarding the employed technology that would
enhance introduction of new technology, there are limited micro-financing schemes and the most of the
developed legislative frameworks are difficult to implement and sometimes are not addressed to the
requirements of artisanal mining activities.

Increasing of knowledge and raising awareness: A number of activities aimed at raising awareness and
enhancing the knowledge of miners, the public and Governmental officials have been initiated mainly in
Indonesia, Tanzania and Zimbabwe. In Indonesia, a project for training and capacity building of
Government officials and local administrators in North Sulawesi on different issues related to artisanal
mining has been going on since 1997 under the financing of Deutsche Stiftung fuer Internationale
Eutwicklung (DSE) of Germany and the Java Provincial Government. However, most of the investment
for the years 1997 - 1999 has been treated as sunk costs and thus leaving only US $340,000 for the year
2000 to 2001 as being relevant to this project. In addition, a training program for artisanal miners is being
financed by the Directorate General of Mines (US $1.25 million) as part of the project to promote the
small-scale mining sector (US $2.50 million). In Tanzania, a program financed (US $2.15 million) by the
World Bank and the Government of Tanzania has been conducted since 1995 in order to improve the
economic, social and environmental performance of the artisanal mining sector. The budget under the
baseline scenario is taken as US $915,000. Apart from the small-scale mining component of the project,
there is also a component with a budget of US $6.0 million for training of the Government staff, provide
working facilities as part of the efforts to strengthen capacity of the Government institutions. In
Zimbabwe, the Government in collaboration with the European Union are financing (US $37.8 million)
part of which is building capacity for the mining training institutions (US $12.0 million). In addition, the
Canadian International Development Agency (CIDA) and the Government are financing (US $ 2.0
million) a program on mining titles and environmental legislat ion part of which is the development of a
system for information exchange between mining and environmental departments. The budget for this
component that will be implemented between 2000-2001 is US $800,000. Apart from not covering all the
participating countries, these investments are too small when considered in terms of the extent of the
mining activities in those countries. Additional investment that is more directed to demonstrate the
effectiveness of increased knowledge and awareness in order to minimize environmental impacts
resulting from mining activities, is required.

Assessment of the extent of mercury pollution in surrounding Waterbodies: There is increased awareness
among participating countries on the seriousness of the problems related to mercury pollution resulting
from artisanal gold mining and extraction activities. The countries with intervention programs within the
baseline scenario include Brazil, Indonesia and Zimbabwe. In Brazil a program to conduct studies within
the Amazon Basin in order to establish the extent of mercury pollution, migration paths, accumulation of
mercury in fish, sediments and the amount of mercury released to the atmosphere, is being carried out.
The program which is financed by different Government institutions, i.e., PADCT, Ministry of Health
and CNPq, has a budget of US $1.596 million. In addition, a program aimed at building capacity for the
mercury testing laboratories to enable them acquire international standards is being carried out with a
budget of US $1.334 million and is financed by CNPq, PADCT, Faperj and the Ministry of Science and
Technology. These two Brazilian budgets cover the period 2000 - 2003. The Indonesian Sciences Agency

2

---

(LIPI) is financing (US $5,000) a program to study the effectiveness of heavy metal adsorption,
specifically mercury and zinc, by water vegetation Monocharis vaginalsis from surface waters.
Furthermore, a program financed (US $140,000) by the Germany Development Agency (GTZ) and an
Indonesian Environmental Impacts Management Ag ency, BAPEDAL, aims at improving environmental
management of artisanal mining activities at local and Government levels. The Government of
Zimbabwe and the Canadian International Development Agency are financing (US $2.0 million) a
program on mining titles and environmental legislation part of which is a component to draw new or
modified statutes, policies and guidelines for EIA and mine site rehabilitation. The budget for
development of procedures for mine site rehabilitation component during 2000 - 2002 is US $600,000.
Only three of the six countries have some programs addressing mercury-related pollution to the
environment directly. Even those countries with existing programs, the investment involved is small
compared to the extent of the existing activities and they have not been directed towards demonstrating
the effectiveness of the applied approaches. This necessitates further investment in order to enable all
participating countries establish the extent of mercury pollution and hence devise measures for its
minimization.

Establishing a databank of existing technology and development of micro-financing program: There are
no plans to establish a databank of existing technologies and develop micro-financing programs.
However, the Government of Tanzania and the World Bank through the "Mineral Sector Development
Project" small-scale mining component, financed (US $50,000) a sub-component to conduct a baseline
survey and recommend a development strategy for artisanal and small-scale mining. Although this is an
important objective that would enable countries and the donor community to have basic data upon which
intervention measures can be developed, this is the only known program. The lack of basic data is one of
the barriers limiting the introduction of effective measures for the transformation of the sector. Micro-
financing programs that exist in the participating countries usually focus on sectors like agriculture,
fishing, trading and others due to lack of reliable information regarding the sector.

Introduction and demonstration of efficient, affordable and cleaner technology: Several intervention
plans exist within the participating countries to introduce new technology to artisanal mining activities.
In Brazil, the Brazilian House of Congress financed (US $6.2 million) part of which was to identify the
technological problems of the artisanal gold miners, develop, test and install new technologies in order
minimize environmental impacts and improve health and safety. This component has a budget of US $3.2
million. In Indonesia, part of the promotion of the small-scale mining sector program financed by the
Directorate General of Mines, is the introduction of cleaner technology (US $1.25 million). In
Zimbabwe, a program financed by the Germany Development Agency (GTZ) (US $50,000 for 2000 -
2002) and implemented by the Mining Department of the University of Zimbabwe aims at controlling
alluvial gold panning and associated environmental damage by introducing basic and efficient gravity
technology based on sluic e boxes. The Government of Zimbabwe and SADC are also financing a small
project aimed at exploring the elimination of environmental impacts through introduction of efficient
technology (US $68,000). The Government also finances on annual basis, the Metallurgy Department to
provide extension advisory services including free laboratory analytical services. The budget for the
three-year period of the project is US $410,000. This is an area that requires a lot of investment that most
of the participating countries cannot afford. Attempts made by the above three countries which address
the entire small-scale mining sector are bound to have limited impacts. More targeted financing is
required in order to demonstrate the impact of efficient and clean technology on productivity and
environmental management.

Development of implementable policies and legislation: Since most of the artisanal mining activities
have been carried out illegally, most countries have moved to introduce legislative measures required to
contro l the sector. As such, this is the objective where all the participating countries have intervention
measures within the baseline scenario. In Brazil, the Ministry of Science and Technology in collaboration
with CYTED (Iberoamerica) and CNPq are financing a project (US $950,000) to study the current
activities using mercury, establish sustainability criteria for such activities and use the criteria for
development of artisanal mining legislation. The study, which is being conducted by CETEM, will be
carried out during the period 2000 - 2002. Furthermore, the Ministry of Science and Technology is
collaborating with IDRC - Canada and CNPq to finance (US $2.56 million) a study aimed at reviewing

3

---

the current legislation, identify flaws and develop new environmental legislative framework for artisanal
mining activities. In addition, the program financed by the Brazilian House of Congress had a budget of
US $3.00 million for reviewing the mining legal, regulatory and fiscal frameworks and develop new
frameworks and prepare recommendations for the House intervention. In Indonesia, a program to carry
out policy and legislation reviews, training and capacity building in order to significantly reduce illegal
mining activities in the country is being financed by the office of the President at a cost of US $5.00
million over a five year period, 1999 - 2004. The Lao Peoples Democratic Republic is financing a
program to develop new small-scale mining fiscal revenue collection and licensing system. In addition,
the Government plans to develop a computerized licensing system that will enable linkage between the
provincial and central Government authorities. The two programs have a budget of US $1.25 million.
The Geological Research Authority of Sudan is financing (US $1.5 million) a project to review the 1967
Mining Act which does not address artisanal mining activities and develop a new licensing system for
these activities. In addition, the Authority in collaboration with the Ministry of Industries are financing
(US $325,000) a review and development of a gold marketing system in the country. In order to build
capacity of the Government institutions responsible for mining activities, the Government is financing
(US $900,000) an institutional strengthening program. In Tanzania, part of the World Bank and
Government of Tanzania financed project to strengthen the institutional capacity, is the development of
the legal, regulatory, fiscal and environmental management frameworks for the mining sector. This
component has a budget of US $4.00 million. In Zimbabwe, a program on mining titles and
environmental legislation which is financed by the Government of Zimbabwe and the Canadian
International Development Agency, (US $2.0 million) has a component to draw new or modified statutes,
policies and guidelines for EIA and mine site rehabilitation. The budget for the development of the
policies and EIA guidelines sub-component during 2000 - 2001 is US $600,000. Furthermore, the
Government of Zimbabwe is financing a program for enforcement of environmental regulations within
small-scale mining areas at a cost of US $24,000 during the period 2000 - 2002. Within the European
Union and Government of Zimbabwe supported project, there are components for development of simple
licensing systems, organization and regulation of the small-scale mining sector and restructuring of the
responsible institutions in order to improve their efficiencies. The components have a combined budget
of US $22.70 million. Although there are commendable efforts towards de velopment of legislative
frameworks and policies for controlling artisanal mining activities, most frameworks are either difficult
to implement or the relevant Governments lack the capacity to do so. Financing is required to assist the
participating countries develop policies and legislation that are implementable under the existing
conditions whilst ensuring that the conducted activities are environmentally acceptable.

Dissemination of information and fund raising: There are neither plans to finance dissemination of
information outside the countries nor to develop new financing instruments for extension and expansion
of the current programs.

4.
GEF Alternative:

4.1
The GEF alternative will introduce a global approach through support of efforts at the national,
regional and global levels to assist developing countries address global problems ensuing from mercury
pollution and other negative environmental impacts due to artisanal gold mining and extraction activities.
The project will be implemented through a participatory paradigm, involving all major stakeholders,
mainly, miners and their associations, relevant Government institutions, and the local communities
within the project demonstration sites. The demonstration sites will be selected by taking into
consideration the intensity of the artisanal gold mining and extraction activities that use mercury for gold
recovery and the location of these activities in relation to international waterbodies. In addition, the
selected sites represent locations in the world's developing regions (Africa, Asia and Latin America)
upon which significant International Waterbodies (Amazon Basin, River Nile, Lake Victoria, River
Mekong and River Zambezi) are intensely being polluted. All the participating countries are faced with
the problems of increasing poverty which in turn forces the rural populations to engage in informal
activities like artisanal mining. With the increase in informal unregulated activities, especially those
employing toxic chemicals like mercury, global environmental pollution is bound to increase as well.
During the same time, UNIDO will continue implementing projects with the aim of reducing mercury
pollution in other areas, where International Water are affected (Co-financing US $360,000)

4

---

4.2
The project proposes seven outputs:

Output 1: This has been separated into two outputs to differentiate the project activities that are of a
global nature and those that are country specific; i.e., Output 1A: Project coordination and support:
Recruitment of a CTA and SSME [GEF: US $648,000]; Establishment of the Project Coordination Unit
[GEF: US $20,000]; Creation and management of GPTF [GEF: 86,000; Co-financing US $23,000];
Establish a UNIDO maintained Website and a resources information centre [GEF: US $25,000]; Project
monitoring, evaluation and assessment [GEF: US $100,000]. Output 1B: Resources for country project
management: Recruitment of an assistant to the focal point and provision of working facilities [GEF: US
$1,176,000; Co-financing US $701,000]; Recruitment of local consultants (administrative) [GEF: US
$30,000]; Review past and existing case studies [GEF: US $60,000]; Project awareness workshops [GEF:
US $64,000]; Resources for CPTF and BPTF [GEF: US $ 362,000; Co-financing US $90,000].

Output 2: Increased artisanal mining knowledge and awareness: Selection of demonstration sites [GEF:
US $38,000]; Analysis of the regulatory frameworks [GEF: US $24,000]; Training needs assessment
[GEF: US $28,500]; Stakeholders' awareness campaign programs [GEF: US $94,000; Co-financing US
$514,000]; Awareness programs through media [GEF: US $160,500]; Development of TRAIN-X
training methodology [GEF: US $90,000; Co-financing US $587,000]; Develop programs for
institutional cooperation [GEF: US $30,000; Co-financing US $187,500].

Output 3: Extent of mercury pollution and migration to other areas : Establish general health of miners
[GEF: US $ 34,000]; Identify pollution "hot spots" areas [GEF: US $350,000; Co-financing US
$900,000]; Assess extent of pollution through biological samples [GEF: US $220,000; Co-financing US
$985,000]; Establish extent of mercury migration to other areas [GEF: US $110,000; Co-financing US
$387,000]; Permanent visits by medical doctors for checkups [GEF: US $ 30,000]; Enhance capacity of
local laboratories [GEF: US $300,000; Co-financing US $667,000]; Formulate measures for remediation
and rehabilitation of "hot spots" areas [GEF:90,000; Co-financing US $98,750].

Output 4: Technological requirements and micro-financing program : Establish database of existing
technology and requirements [GEF: US $31,000]; Establish InfoBase of technology suppliers [GEF: US
$10,250]; Identify local fabrication facilities and capacities [GEF: US $19,500]; Analysis of tax regimes
and import restrictions [GEF: US $11,250]; Investigate and develop micro-financing programs [GEF: US
$500,000].

Output 5: Introduction and Demonstration of efficient and clean technology: Organize on-the-job
training [GEF: US $218,000; Co-financing US $400,000]; Training for local fabricator and
manufacturers [GEF: US $40,500]; Demonstrate competitive basic mechanical alternatives to
amalgamation [GEF: US $425,000; Co-financing US $327,000]; Construct and demonstrate high
recovery gravity concentration equipment [GEF: US $420,000; Co-financing US $ 850,000]; Establish
equipment supply channels [GEF: US $19,500]; Conduct mercury immobilization through extraction
[GEF: US $110,000]; Compile and produce documentary videos [GEF: US $45,000].

Output 6: Development of policies and legislation: Literature review of sustainable artisanal mining
indicators, policies and legislation [GEF: US $13,500; Co-financing US $33,000]; Analyze and compare
with country indicators and legislation [GEF: US $21,000]; Recommend new indicators, policies and
legislation [GEF: 16,000]; Collect stakeholders' views on the recommendations [GEF: 22,000]; Assist the
development of guidelines to indicators, policies and legislation [GEF: US $61,500; Co-financing US
$5,720,750]; Workshop to discuss developed guidelines, policies and le gislation [GEF: US $50,000];
Assist development of enforcement programs [GEF: US $67,000; Co-financing US $24,000].

Output 7: Dissemination of results, self-financing and donor conference: Country based workshops
[GEF: US $89,000]; Regional annual workshops [GEF: US $60,000; Co-financing US $20,000]; Review
opportunities for project self-financing [GEF: US $26,000]; Donors conference [GEF: US $42,000; Co-
financing US $7,000].

5

---

5.
Incremental Costs:

5.1
The scope of the analysis is defined geographically by the mining areas located within the
Tapajos area in the Amazon Basin in Brazil, the Kahayan River basin in Northern Sulawesi, Indonesia,
the Mekong River basin in Laos, the Nile River basin in Sudan, the Lake Victoria basin in Tanzania and
the Zambezi River Basin in Zimbabwe. These areas were established during the PDF-B phase of this
project in collaboration with the host Governments in order to capture the areas most affected by mercury
pollution resulting from artisanal gold mining and extraction activities. The system boundary is also
defined temporarily by the life of the project (3 years) and thematically by the bundles of interventions
proposed to minimize pollution of the international waterbodies as a result of artisanal gold mining and
extraction and their accompanying baselines. The baseline cost estimate captures the projected
expenditures of the host Governments, the private sector and donor communities in the participating
countries.

The business-as-usual baseline has been costed at US $72,817,000 and captures the projected
expenditures of the host Governments, the private sector and donor communities in the participating
countries. The incremental costs funded by GEF amount to US $6,806,800without the cost of the PDF-B
phase. The cost of PDF-B phase was US $318,182. From the baseline and with additional funding from
UNIDO, UNDP and the participating Governments, US $12,882,000 will be provided as co-financing of
the proposed interventions and thus making the total project cost equal US $20,006,982. The GEF
contribution (inclusive of PDF-B) amounts to 7.7% of the cost of the alternative (US $92,505,800)
including the baseline and increment. The GEF would provide funding for activities that generate clear
global benefits. The proposed intervention measures have been structured to ensure the project generates
clear global benefits.

INCREMENTAL COST MATRIX
Component
Cost
Cost (US $)*
Domestic Benefit
Global Benefit
Output 1A:
Baseline

Program coordination and support Limited capacity for regional and
Project coordination and
-
capacities are weak at national
global coordination and knowledge
support
level.
sharing

GEF

Program coordination and support Program coordination and support
Alternative
Total = 1,019,900
capacity enhanced at national
at regional and global levels.
level.

Increment
GEF: 996,900


UNDP: 23,000

Total = 1,019,900
Output 1B:
Baseline

Limited resources to carry out
Minimal capacity for international
Resources for country
-
environmental management
coordination and knowledge
project management
programs in mining sector
sharing.

GEF

Increased capacity to create
Basin-wide coordination and
Alternative
Total = 2,652,200
national environmental and health knowledge sharing.
benefits

Increment
GEF: 1,861,200


Countries: 701,000
UNDP: 90,000

Total = 2,652,200
Output 2:
Baseline

Continued use of environmentally Increased pollution of International
Increased artisanal mining
Total = 21,305,000
damaging technologies due to lack Waterbodies due to application of
knowledge and awareness
of knowledge and awareness
poor technology

GEF

Increased knowledge and
Increased basin-wide and global
Alternative
Total = 23,105,000
awareness in 6 pilot countries on
awareness of artisanal gold mining
environmental protection and
impacts and alternatives.
technology.

Increment
GEF: 511,500


Countries: 1,288,500

Total = 1,800,000

6

---

Output 3:
Baseline

Limited national data on extent of Limited capacity to control
Extent of mercury pollution
Total = 3,675,000
mercury pollution and capacity for transboundary threats from
and migration
continuous monitoring
mercury pollution result in erosion
of environmental benefits

GEF

Increased national capacity to
Increased knowledge of
Alternative
Total = 7,960,150
conduct continuous monitoring of transboundary mercury impacts
mercury pollution on waterbodies and hot spots

Increment
GEF: 1,247,400


Countries: 3,037,750

Total = 4,285,150
Output 4:
Baseline

Weak national databases on
Minimal opportunities to decrease
Technological needs and
Total = 50,000
existing technology and limited
transboundary pollution via
micro-financing program
access to finance
technological substitution

GEF

National capacities to apply
Increased capacity for cleaner
Alternative
Total = 679,200
improved technologies enhanced
production to reduce
transboundary mercury pollution

Increment
GEF: 629,200


Output 5:
Baseline

Inadequate knowledge of, and
Utilization of inappropriate
Introduction and
Total = 4,978,000
limited access to clean
technology perpetuates
Demonstration of efficient
technologies at national level
transboundary contamination
and clean technology

GEF

Utilization of clean & efficient
Application of clean technology
Alternative
Total = 7,960,800
technology increased in
mitigates transboundary threats
participating countries with
and provides incentives for
associated domestic environmental environmental protection
and health benefits

Increment
GEF: 1,405,800


Countries: 1,577,000

Total = 2,982,800
Output 6:
Baseline

Lack of, or weak mining and
Global environmental benefits
Development of policies and
Total = 42,809,000
environmental policies and
continue to be eroded by inability
legislation
legislation
to regulate artisanal gold extraction

GEF

Implementable national policies
Newly enforced policies and laws
Alternative
Total = 48,862,850
and legislation developed and
reduce transboundary mercury
enforcement program initiated
pollution

Increment
GEF: 276,100


Countries: 5,777,750

Total = 6,053,850
Output 7:
Baseline

Lack of capacity for exchange of
Limited regional knowledge
Dissemination of results, self-
-
informat ion and extension of
sharing; project impacts end.
financing and donor
introduced intervention measures
conference

GEF

Increased awareness in
Increased regional and global
Alternative
Total = 265,700
participating countries; project
awareness of the issue; project
activities continue and are
activities sustained beyond 3 year
institutionalised by Executing
time fram.e
Agency

Increment
GEF: 238,700


UNDP: 27,000

Total = 265,700
Total
Baseline


72,817,000

GEF


Alternative
92,505,800
Incremental Cost

Full project

GEF (incl. Exec. Agency Support Costs)
US $ 6,806,800
Non-GEF
US $ 12,882,000
Total
US $ 19,688,800


Preparation

GEF
US $ 318,182
Non-GEF
-
Total
US $ 318,182
Grand Total

GEF
US $ 7,124,982
Non-GEF
US $ 12,882,000
Total
US $ 20,006,982

7

---

ANNEX B: LOGICAL FRAMEWORK MATRIX

Intervention Logic
Objectively Verifiable Indicators
Source of Verification
Assumptions and Risks
Long-term Objectives



Assist developing countries in assessing the National and regional frameworks and PCU and other project documents.
Continued country commitments with a major
extent of mercury pollution from current coordination for removal of barriers to the
focus on minimization of mining related
artisanal gold mining and extraction activities, introduction of cleaner artisanal gold mining CPTF and BPTF meetings and minutes of environmental pollution.
introduce efficient and cleaner mining and and extraction technologies.
meetings.

extraction technologies and develop capacity

Project capacity to adequately develop and
and regulatory mechanisms that will enable Improved national and regional capacities for GPTF meetings and minutes of meetings.
implement the necessary national and regional
the sector to minimize negative environmental effective environmental management of
communication and coordination frameworks.
impacts.
artisanal mining and extraction activities.
Project evaluation and final reports.

Changes in economic, political and social
condit ions detract country commitments.

Falling mineral prices may alter miners'
commitments to the project.
Project Purpose



Remove barriers to the introduction of Country participation in, and endorsement of Completed and endorsed workplans by the six Participating countries and those within the
efficient and cleaner artisanal gold mining and project work plans.
participating countries.
basins and region not being able to cooperate
extraction technologies in six developing

to the extent necessary for the project success.
nations.
National and additional donor commitments to
workplan elements.
GEF funds not adequately complemented by

country commitments and other donors
PCU and other project documents.
Output 1



Effective project coordination and support PCU, CPTFs and BPTFs created.
Project Technical Adviser, Regional Managers Willingness to commit physical space and
through establishment of a UNIDO based
and adequate supporting staff employed.
other reso urces by executing agency and
PCU, country focal points and relevant task Effective project coordination and information
participating countries.
forces.
exchange at regional levels.
Country Focal Points appointed and assistants

recruited.
Lack of clear lines of responsibility to the GEF
Increased capacity for national and regional
project hamper implementation.
level participation in project related global Increased level of national and regional
foras.
participation in project related regional and Political interference in the approved program

international foras.
will hamper project success.
Increased capacity to create national benefits
through enhanced transboundary management Documents of existing and potentially new
regimes.
project related fora.

8

---

Output 2



Increased knowledge and awareness of the Development of replicable course modules and Approved workplan for each participating Countries see the long-term benefits of
environmental impacts associated with the other training materials pertinent to education country.
barriers removal efforts.
current activities and benefits of employing of key stakeholders.


cleaner technology.

PCU and other project documents.
Demonstration sites selected through
Awareness campaigns organized and
application of criteria that maximizes clear
conducted by the project.
Course module documents, training materials understanding of the mercury pollution

and awareness campaign reports
problems.
Increased knowledge and awareness of

artisanal mining environmental impacts by Trained equipment fabricators and Countries and key stakeholders not willing to
miners, national officials and public.
manufacturers.
participate fully in training and awareness

campaigns.
Demonstration site visits and interviews with
key stakeholders.
Output 3



Data on the extent of environmental pollution Recruitment of consultants and existence of PCU and other project documents.
Willingness of key stakeholders to participate
in surrounding waterbodies from geochemical sampling and analysis plans.

in the mercury pollution sampling exercise.
and toxicological studies and other field
Field data and laboratory analysis reports on
investigations and the devised intervention Improved availability of data at the national the extent of mercury pollution.
Poor execution of the sampling and analysis
measures.
and regional levels for the environmental
exercise may hamper the accuracy of the final
management planning.
Remediation and rehabilitation strategy results.

documents.

Increased capacity at the national level to

conduct continuous monitoring of mercury Developed monitoring programs and installed
pollution on waterbodies.
laboratory equipment.
Output 4



Databank comprising of technological Increased awareness amongst key stakeholders PCU and other project documents.
Countries and miners will see the long-term
requirements relevant to artisanal gold mining on the existing artisanal mining and extraction
benefit of the project and hence provide
and extraction activities and micro-financing technologies.
Databank of artisanal mining and extraction relevant data.
program.

technological requirements.

Increased capacity at the country level to
Miners continue to believe that the
propose improvement on the current artisanal Country specific approved workplans.
introduction of the appropriate technology will
mining and extraction technologies.

depend on the thorough understanding of the

List of new equipment suppliers.
existing one.
Enhanced interaction between miners and

suppliers of artisanal mining and extraction Micro-financing program report.
The country's fiscal regime is attractive for
equipment.
local manufacturing and importation of mining

and processing equipment.
Increased awareness on the requirements for
micro-financing of artisanal mining activities.

9

---

Output 5



Application of affordable high-efficiency Increased knowledge and awareness of PCU and project implementation reports.
Participating countries will continue to offer
clean technology with improved gold efficient and cleaner technologies amongst the
favourable fiscal terms for manufacturing and
processing methods while avoiding key stakeholders.
New operating equipment in project importation of mining and processing
environmental degradation.

demonstration sites.
equipment.
Miners utilization of cleaner technologies in

project demonstration sites.
Site visits and interviews with key Miners will see the long-term benefit of

stakeholders.
investing in cleaner technologies.
Reduction in the application of mercury for

gold recovery.
Reports of national Mine Inspectors Lack of transparency and stability in the

responsible for the project demonstration sites.
country's legislative and economic regimes
Improved productivity in project
may hamper miners' confidence in investing in
demonstration sites.
cleaner technologies.
Output 6



Generic, and to the extent possible, country Gold extraction activities sustainable PCU and other project documents.
Participating countries and stakeholders will
specific policies and legislation that will lead indicators established.

see the benefits of reviewing existing policies
to implementable standards on the application
Policy and legislation documents.
and legislation to address environmental
of mercury with special attention to Generic, and to the extent possible, country
management issues.
minimization of environmental impacts.
specific policies and legislation defined.
Guidelines and enforcement program reports.



Project aims seen as inconsistent or
Guidelines on environmental standards Interviews with key stakeholders.
threatening local and national interests.
defined and enforcement program developed.
Output 7
Country based and regional workshops.
PCU and other project documents and list of Participating countries will increasingly see
Dissemination of results and opportunities for
potential additional donors.
the benefits of introducing cleaner
increased self-financing of the project after the Identified sources of additional financing.

technologies to the sector and will increase
three-year project timeframe, and initiation of
Workshop proceedings.
their level of resources commitment.
a donor conference to secure additional Donor Conference.


financing.
Donor conference proceedings.
Donor countries and agencies will support the
global activities to reduce the threats of
environmental pollution resulting from the use
of mercury.


10

---

ANNEX C: STAP REVIEW

Technical review
Removal of barriers to the introduction of cleaner artisanal gold mining and extraction techniques

Summary:
The proposal gives a descript ion of all the actions needed to tackle the issue of mercury pollution from
gold mining in International Waters. The main countries where mercury pollution from gold mining is an
issue are represented in the proposal. The part dealing with setting up regulatory frameworks, exchange
of experience, setting up of databases between the participating countries and involving government
officials is well described. These objectives and associated activities are feasible within the three-year
period. The part dealing with those issues where the direct involvement with the miners is needed, in
order to decrease the losses of mercury to the environment, is less convincing. A three-year period for
reaching the objectives and completing all the activities appears to be optimistic.

Introduction
Artisanal gold mining is widespread globally and takes place in nearly all continents. Apart from the fact
that it is often not regulated and cause wide-scale disruption of the landscape in a physical sense (e.g.
tailings, abandon ed sites etc.) one of the perceived major concerns is the use of mercury for concentration
of the gold (amalgamation). Mercury is released during the amalgamation step (spilling), during burning
at the mining site and subsequent refining by dealers. Hence mercury is introduced into waterways and in
the atmosphere. Health hazards are imposed in two ways: during the heating process, through mercury
vapour inhalation and secondly through the introduction into the environment by spillage and the
atmospheric pathways. Once in the environment, elemental mercury is transformed into methyl-mercury
by bacterial action, this form of mercury is more toxic and easily taken by fish. For people depending on
fish as a major protein source and living downstream from a minin g site, this may be a major pathway for
the human uptake of mercury. Once in the atmosphere or in the waterways mercury becomes a trans-
boundary pollutant.

The use of mercury for the concentration of gold occurs on a global scale. This shows that the technique
in itself can be easily adopted by miners in widely varying environments and requires little technical
know-how and is successful in the recovery of gold. Not surprisingly this technique has been around for
centuries and was already widely used by the conquistadors in the Americas.
This project in which six countries participate deals with (nearly) all the aspects of gold mining: from the
regulatory framework, the build-up of awareness to the introduction of new technology.

Relevance to GEF
The project is unique in the sense that it addresses a global issue, which has similar characteristics in the
countries and regions involved:

- The widespread use of a low technology for the concentration of gold through amalgamation.
This technique is similar in the countries concerned and hence poses similar environmental
problems.
- In all countries the involvement of non-organised miners and in many cases individuals
- Carried out by individuals who are in the lower/lowest scales of poverty
- Identical negative impac ts: e.g. health of miners, dispersion of mercury through (international)
waterways and (international) atmospheric pathways

Dispersion through waterways and through the atmospheric pathway affects international waters, which
is one of the focal points of GEF. Furthermore once it has been introduced into the environment it will
remain there and be slowly converted o the more toxic methyl-mercury from. Also the mining sites
themselves will remain contaminated after end of the "gold rush" and will be a source of mercury slowly
leaking to the waterways and the atmosphere.

These similarities warrant the global approach as described in the project.
11

---

Objective
The objectives and activities are numerous and one gets the impression that the proposers wanted to
cover everything. The prospers want to strengthen the regulatory framework in the countries but at the
same time have several objectives to increase the awareness of the mining and its larger community to
the danger of mercury and introduce techniques to decrease the release of mercury to the environment.
It is not clearly stated that the main objective of the project is be to reduce the introduction of mercury in
the environment (e.g. international waters) and that the various methods mentioned are only instruments
in order to achieve this goal. This goal can be achieved through a top-down approach (regulatory
framework) addressing government officials and enforcers and a bottom-up approach (awareness on the
danger of mercury and introduction of new technology) by direct involvement of the individual miners.
This clear distinction is not made in the proposal and hence it gives the impression of muddled
objectives.

The objectives and activities relating to the regulatory framework and exchange of information between
the government agencies (PCU, CPTF, BPTF) is the rather straight forward approach of workshops and
meetings etc. and will result in an valuable exchange of experiences between the participating countries
(objective 1, 6 and 7) and increased awareness at the government level.

There is no Gantt chart to show the duration (start and end point) of each of the objectives and underlying
activities (page 8 to 18 of the project description). This omission will make the evaluation of the project
(section 44) during the quarterly meetings extremely difficult (also for the reviewer). If such a chart
would be drawn up it would clearly show that they are many overlapping activities. E.g. is does not make
sense to introduce new technology and training courses (it ems 4 and 5) if the awareness and need for
change of mining methods have not been established (objective 2 and activity 4.5). There is no indication
of who is responsible for each of the activities under the 7 objectives. Money is allocated but no
responsibilities (section 43, page 19 through 21).

This reviewer has the strong impression that nearly all the activities needed for tackling the issue have
been identified but that completion within a three-year period might prove to be optimistic. A five-year
period seems to be more appropriate. In the first half the activities should be focused on infrastructure
(government, legislation etc) and awareness; the second half primarily focusing on the activities relating
to the implementation of new technologies in the mining communities itself (provided that the
government infrastructure is in place and awareness has been build-up).

Approach
Six countries including 10 test sites are part of the project. The major countries with gold mining
activities are included.

The various objectives are logically in themselves, but as mentioned before they are a mixture of the top-
down and the bottom-up approach, although the top-down approach is predominant. Direct involvement
of the miners is not well presented and probably very difficult to achieve. However, this part is the
essential (see also section 33 of the project) component of the project. This part of the project description
needs be "beefed up". A number of remarks to this extent are given in the Appendix.

Background information
The background information is very detailed in showing the massive effort, which is already undergoing
in the participating countries and in particular in Brazil. However, one important piece of background
information is missing and this concerns hard data on mercury poisoning in humans in the countries
concerned.

The inherent toxicity of mercury through inhalation of through consumption of protein sources with (too)
high concentrations of mercury leads to serious diseases is well known. This is known from the well-
documented cases of Minnemata Bay or the consumption or consumption mercury treated grain.
However, the proposers mentioned only tonnes of mercury introduced into the environment but fail to
give hard data on observed impacts on human health in the gold-mining regions or downstream from

12

---

these regions. Hence it is not clear from the proposal to what extent the reduction in mercury losses to the
environment improves human health in the regions concerned.

Funding level:
It is difficult to evaluate the funding level. Apart from the money allocated to objective 1, it is not clear
how the funding for the other objectives ties in with the ongoing programs in the various countries and
how the funding is split up between the countries involved. Brazil for instance has already a lot of
experience with the gold mining issue, whereas Laos might still be on the learning curve and needing
more assistance.

Qualitatively one gets the impression that the funding level is sufficient to get together a global network
on regulatory issues and on available technology in place. Whether the funding level is sufficient for the
awareness part and for the introduction of new technology to the mining community at the individual
level, there remain some doubts with this reviewer. This refers in particular to language problems, the
expected low literacy of the mining community and reaching remote areas; all barriers for which
conventional methods like reports, workshops, Internet sites etc. do not seem to be that appropriate.

Innovation
There is innovation in the fact that this project brings together government officials and regulators from
different continents that face identical issues. This will be extremely useful since it allows the exchange
experience and comparison of approaches. However, there is no innovation in on how to reach the miners
and how to convince them to be more efficient in the their use of mercury. The identified (conventional)
methods look more like the same ones tried out in Brazil already

Let me dwell a little bit on this, also because the proposers identified this problem ("willingness of the
miners") as a major issue in their proposal. It is highlighting that in the proposal no information is given
on proven health problems in the mining areas and people living downstream who depend in fish for their
primary protein intake. Hence a convincing argument (as with smoking) is missing to convince the
miners that their future health is endangered. It won't be sufficient to show clips of old movies of the
proven cases of mercurialism in Japan as has been done in videos prepared for the Brazilian mining
community. Furthermore in Japan it was industrial pollution and not related to mining activities. Also the
use of retorts, with the argument that mercury can be recycled has its problems of convincing miners. The
prospers fail to explain convincingly the fact that even providing this type of equipment free of charge
did not result in their adaptation. What are the reasons behind this, if we don't understand the reasons it
does not make sense to ask local manufacturers to construct them or to use micro-financing schemes for
their introduction. Hence, the only way to convince the miners is to show convincingly that improved
techniques can yield higher gold recoveries.

My suggestion would be to have a demonstration site where this improved technology (mechanical) is
applied and results in improved gold recovery, and then have an exchange of the miners themselves (with
interpreters) to introduce the technique in other mining sites regionally and globally. Such a bottom -up
approach and sharing of experiences by actual miners across the continents would be innovative.

7. Strength/weaknesses
The main strength of the project is that six countries representing the major regions were artisanal mining
is taking place team up to address common issues. The objectives and activities for the exchange
experiences with regulations, assistance in setting up appropriate regulations, web site and database is
important from a global perspective. This is well described.

The major weaknesses are twofold. It is not clear whether the instruments mentioned will be sufficient to
reach the mining community and individual miners (see remarks in the other sections). If thes e
stakeholders can't be reached in a sense that they change their methodology, the mercury problem will
remain. The second weakness is the timeframe: the many objectives will be difficult to reach over a three
year period; a five year period seems to be more appropriate.

13

---

Annex

The remarks below are a few examples of issues which have to be addressed and/or are not covered well
enough in the project proposal.

1. Section 4 of the project description (page 4) gives hard data on the involvement of woman in the
mining activities. This involvement is high in Asia and Africa. In section 14 it is advocated that woman
should play a larger role in the mining activities since it is limited by "socio-cultural issues...". This is a
contradiction. In addition, there appears to be medical evidence that the unborn child is particularly
sensitive to mercury. Hence on medical ground the further involvement of women in mining activities
involving mercury should be subject to caution.

2. Objective 3, activity 3.5. "permanent visits of medical doctors who have experience in mercury
intoxication".
For this important activity US$ 30.000 is allocated. However, with six countries and 10 pilot sites this
amounts to US$ 3000 per site. It is doubtful whether this is sufficient for permanent visits. Furthermore it
is doubtful whether there is the experience in each of countries to identify mercury intoxication. May be
there is a need for training need for medical personnel in the participating countries (TRAIN-X
methodology ?) before embarking on regular check-ups of the miners.

3. Training, awareness, videos, workshops, website etc.
In all the activities the target groups: mining individuals, their associations, NGO's, government officials
and their agencies are put into "one basket" and defined as stakeholders. However, each of them needs an
individual approach. While one might expect that high ranking officials will be able to read English and
may be speak, this is certainly not the case for the local NGO's and miners. Also the level of education
will range from academic to illiteracy. Hence individual approaches are needed taking into account the
level of education and the local languages. Considering the amounts of money allocated one gets the
impression the complexity of six countries (languages) and various levels of education is not fully
realised.
A case in point is the website (US$ 25.000) at UNIDO which a.o will be used to exchange of proceedings
of meetings of CPTF's, BTBF's and GPTF and will be used as a technology database (section 36 of the
project description). Again this website should be in the various languages of the countries concerned. If
the website is in English only (as the amount of money allocated seems to suggest), its access will be
severely restricted for regional and local government officials, local NGO's and mining associations.
Nowhere in the budget money is allocated for translation services.

4. Annex D. section (b). Lack of technical know -how
In this section it is described that providing free of charge equipment for miners in Brazil, Tanzania and
Zimbabwe was not successful. This raises some doubts on the activities relating to the training of local
manufacturers, micro-financing schemes etc. in order to introduces new technology to the mining
communities.
The only reason for their reluctance given is the lack of visits of district mining engineers. This reviewer
has the strong opinion that a more in depth analysis (cultural, socio-economic, or simply the lack
economic gain) of this reluctance is warranted before embarking on even larger schemes as described in
the project.

5. Section 33 of the project description
"This is not regarded as a major risk...........will involve the miners from the planning, implementation,
testing, evaluation and monitoring to the conclusion of the report". The project abounds with remarks
that mining is carried out often illegally, that no miner's organisations exist, that mining takes place in
remote areas, low level of education etc. Nowhere in the project it is convincingly shown how these
formidable barriers will be tackled, yet the proposers do not consider it a major risk.

14

---

ANNEX D: BARRIERS TO THE INTRODUCTION OF CLEAN TECHNOLOGY

Barriers limiting the introduction of cleaner artisanal gold mining and extraction technology are evident
at every stage of the mineral extraction processes and can be associated with the weak institutional set-
ups, lack of or poor legal and regulatory frameworks, lack of technical know-how, lack of access to
appropriate technology, limited access to finance, lack of information and support programs, restrictive
minerals marketing systems and inefficient organizational systems. These main barriers are discussed
below.

(a)
Institutional Set-ups, Legal and Regulatory Frameworks
Weaknesses in the institutional set-ups and the lack of resources to institute adequate legal and regulatory
mechanisms result in most artisanal mining and extraction activities being carried out illegally. There are
countries that have accommodated artisanal mining within the overall mining legal and regulatory
framework, e.g., Brazil and Tanzania, and those who have moved control of these activities to the local
governments, e.g., Indonesia and Zimbabwe. Whereas the Laos mining legislation recognize artisanal
mining activities, it lacks specific regulations for administering the sector. In Sudan, the activities are not
recognized by any legal framework although individuals can be licensed through a special agreement
through which conditions for conducting artisanal and/or small-scale mining activities are set. Although
there are visible attempts within the participating countries to transform this sector into an economic
sector, the lack of adequate resources means that illegal activities are still widespread. The speed at
which these activities have been increasing coupled with the fast growth of the formal mining sector have
stretched these institutions to their limits. The poor employment packages offered by Government
institutions compared to the private sector have resulted in an exodus of qualified personnel to join the
private mining companies. In some countries (Laos, Sudan, Tanzania) there is limited local mining
experience that inhibits effective contribution by the Government staff in control and overall
development of the sub-sector.

(b)
Lack of technical know-how
Most of the technological problems facing artisanal and small-scale miners can be associated to the lack
of technical know -how. In addition, there is little or no advisory services provided by the Government,
e.g., through extension schemes, to provide miners with technical know -how. Miners are also reluctant to
pay for advisory services that are available through private consultants probably due to lack of
appreciation for such services. There is prevalent attitude amongst the miners that their Governments
should provide them with all the support although very few are willing to pay any taxes. In Zimbabwe,
limited support is provided to miners through the district mining offices. Miners may approach these
offices and seek help from the district mining engineer, geologist or metallurgist. However, limited
resources mean that these engineers cannot visit the mining sites regularly. As a result, even when miners
are provided with free equipment, e.g., amalgamation retorts in Brazil, Tanzania and Zimbabwe that
would protect their health and save them money through reusing mercury, they were reluctant to use
them. A survey conducted in the Midlands region in Zimbabwe to assess miners' awareness on hazards
associated with mercury found out that 44.1% did not know that mercury can be a poison, 51.6% did not
know that mercury can kill and 3.1% said mercury is used a medicine. In all participating countries the
following common features demonstrate the lack of technical know -how:
a) There is lack of knowledge of mining methods that are suitable for the type of rock mass and
geological conditions in the locality.
b) Miners do not conduct prospecting or exploration and thus lack basic geological data that are usually
required in the design and selection of mining methods.
c) Processing activities using mercury are carried out within waterbodies that are also sources for
drinking water and sometimes fishing.
d) Tailings and other mine waste sediments are left within waterbodies resulting in change of water
courses and sometimes lead to water shortages.
e) Location of pits is done haphazardly without any technical consideration thus endangering their
stability.
f) The sizes of pits are too small to warrant arrangement of a formal shaft.
g) Supports are not used and when used, they are inadequate.
h) There is a complete lack of adequate ventilation that has sometimes lead to fatal accidents.

15

---

i) In all mining sites, movement of ore from the face to hoisting point, is carried out manually. As a
result, a lot of ore and waste rocks are stocked underground and hence leading to complication of
both miners and material movement and ventilation.
j) While most mining operations are suspended once underground water has been encountered due to
lack of pumping equipment, processing activities run into problems during the dry season due to an
acute shortage of water.

The STAP Reviewer comments that "In this section it is described that providing free of charge
equipment for miners in Brazil, Tanzania and Zimbabwe was not successful. This raises some
doubts on the activities relating to the training of local manufacturers, micro-financing schemes
etc. in order to introduce new technology to the mining communities". The case cited in the
document was the supply of free retorts that miners rejected. From our experience in the three
countries the rejection of the retorts was based on the following major reasons; they were too bulky
and miners were not willing to share them; due to lack of knowledge miners were suspicious of
loosing gold inside these black boxes and there were no training or awareness programme of any
kind prior to supply of the retorts. The distributors imagined that miners would rush to use these
tools which were meant to improve their health and save them money through the re -use of
mercury. The message was not well put and hence not understood by the miners. UNIDO has in the
last three years worked with glass retorts in Ghana, Tanzania and Philippines and the miners'
responses have been positive. It is our view that by combining training, awareness programmes
and demonstration of how the application of a particular technology can improve the miners'
earnings, their health and the surrounding environment, its adoption would be easier.

(c)
Lack of access to appropriate technology
Whilst over the years miners have made slight improvements in the type of tools and technology used,
the majority still use manual techniques and rudimentary tools. The area that reflects improvement is
mineral processing, especially crushing and grinding where locally fabricated hammer mills and ball
mills are used for grinding the mined ore. However, most miners still rely on dry processes (Sudan,
Tanzania, Indonesia) which generate large amounts of dust. In Brazil and Zimbabwe, grinding is carried
out by both hammer and ball mills and water is added to suppress dust. However, the major problem
facing most miners is the lack of direct supply channels through which any type of equipment can be
acquired. Most of the locally fabricated equipment are inefficient due to lack of design and fabrication
knowledge and facilities. Consequently, miners are unable to practice closed circuit processing which
limits the amount of waste outside the system boundaries with negative consequences to the
environment. In addition, productivity continues to be low and thus resulting in meager earnings that in
turn limits their ability to invest in cleaner technology.

(d)
Limited Access to Finance
Artisanal miners usually have limited access to finance and as such are unable to invest in appropriate
technology. The lack of technical know-how means that miners cannot prepare feasibility studies
required by financial institutions for assessing the project viability. In addition, miners cannot afford to
pay consultants for such services. Most miners lack collateral or any form of guarantee that will be
required by any financier. In Zimbabwe, the Government created the Mining Industry Loan Fund that is
administered by the Mining Affairs Board that provides loans amounting to about US $50,000. The fund,
probably the only one in most developing countries, is usually inadequate to cover the needs of the ever-
expanding sub-sector. However, limitation of resources and the experienced economic problems have
dried up this channel of funds for miners. Banks and other financial institutions in all the countries charge
interest rates that are too high for any small-scale business. For example, a charge (not called interest
according to Sharia Law) payable in advance of around 18% in Sudan, interest rates of around 24% in
Tanzania and above 30% in Zimbabwe, make it difficult to access any loan from financial institutions.
Although micro-financing programs exist in these countries for other economic sectors, artisanal mining
is still regarded as too risky for any such programs.

16

---

(e)
Lack of Information and Support
Miners usually lack basic information on different aspects of mining and processing and there is little, if
any, technical support provided to them. It is almost impossible for art isanal miners to have local access
to information regarding technical mining aspects, the environment, available technology, legal and
regulatory aspects, mineral markets, price fluctuations, local fiscal requirements, raw material supplies
and other basic information that is necessary for running a mining business. Given the remoteness of
most mining areas, most miners end up being exploited by mineral dealers who are usually armed with
different up-to-date information and data. Most miners also lack any kind of support mainly from the
Government. Although most countries have offices spread in active mining areas, there is little support
accorded to artisanal miners. Even in countries where local mining offices have been set up to provide
support to miners, the limitation of resources means that Government technical personnel cannot visit
these areas regularly.

(f)
Restrictive Marketing Systems
There are currently many deficiencies in the countries' minerals marketing systems that have direct
implications to the artisanal miners. In some countries there are no licensed private gold dealers and as
such miners are required to sell their gold through Government institutions. The bureaucracy and
sometimes corrupt tendencies within these institutions, make it difficult for miners to utilize them. For
example, in Zimbabwe all the gold have to be sold through the Reserve Bank of Zimbabwe which
through its agent Fidelity Printers only accepts gold deposits of not less than 50 grams for logistical
reasons. This requirem ent tends to discourage small-scale miners who produce smaller amounts from
selling through the official channels and even those selling through the agent have to contend with the
time lag of up to two weeks between depositing the gold bullion and getting paid. In addition, any one
without a mining license, e.g., most artisanal gold panners, as it considered illegal according to the
present Gold Trading Act, cannot trade through this channel. As a result all gold is sold through illegal
dealers who take advantage of the miners' lack of information on gold prices. In countries with licensed
private mineral dealers, e.g., Tanzania, the high tax rates forces most miners to sell through illegal
channels.

(g)
Inefficient Organizational Setups
Labour and general organizational setups within artisanal mining camps reflect activities that are being
carried in a chaotic manner. Labour organizations are usually based on exploitation of cheap labour
where miners work for a little share of the realized minerals. Mineral rights owners lease their areas to
individuals with some mining knowledge who in turn assemble a team of miners to carry out the
extraction activities. Once the minerals have been realized, the mineral rights owner collects 30-40%,
30% is set aside to meet the costs of running the mine and thus leaving 40-30% for the miners to share.
The social welfare of the miners, security and other considerations are usually in their own hands. Even
where the employer ­ employee relationship exists, the paid wages do not comply with the rest of
industry's set minimum wage. Although small-scale miners associations do exist in some countries, their
representativeness of the miners' interests is limited.


17

---

ANNEX E: CO-FINANCING ACTIVITIES, BUDGET AND SOURCES

No.
Activities
Execution
Budget
Source of Finance
Period
(US $)
BRAZIL
1. Country Focal point Remuneration
Project Period
120,000 Central Government
2. Office Space, furniture and facilities
Project Period
20,000 Central Government
3. Study the health aspects related to the Pocone population as regards mercury poisoning due
2000 - 2001
135,000 PADCT
to fish eating.
4. Malaria versus mercury poisoning.
2000 - 2002
850,000 CNPq and Ministry of Health
5. Certification of mercury analysis and testing laboratories
2000 - 2001
197,000 PADCT and Faperj
6. Certification of mercury analysis and testing laboratories
2000 - 2002
94,000 Ministry of Science & Technology
7. Equipping of the heavy metals testing laboratory at CETEM
2000 - 2001
376,000 Faperj and Ministry of Science and
Technology
8. Analysis of the environmental legal aspects versus the Brazilian Garimpo
2000 - 2002
127,000 Ministry of Science & Technology, IDRC-
Canada, and CNPq
9. Defining sustainability criteria for the extraction industries: the mercury case
2000 - 2002
33,000 Ministry of Science & Technology, CYTED
(Iberoamerica), CNPq
10. Defining heavy metal paths in the Vale do rio doce
2000 - 2002
387,000 Ministry of Science & Technology, CNPq
11. Establishment of factors affecting mercury methylation
2000 - 2002
69,000 Ministry of Science & Technology, CNPq
12. Survey of the extent of mercury pollution in the Amazon biota
2000 - 2002
520,000 PACDT
13. Measurement of atmospheric mercury vapours via denuders
2000 - 2001
25,000 Ministry of Science & Technology, CNPq
Sub-Total Co-financing for Brazil
2,953,000

INDONESIA
1. Country Focal point Remuneration
Project Period
120,000 Central Government
2. Office Space, furniture and facilities
Project Period
20,000 Provincial Authorities
3. Training of miners in areas of West, Central and East Java on mining techniques and
2000 - 2002
504,000 Central Government - an ongoing program -
introduction of cleaner technology
this is a budget for 2000/02
4. Extraction of mercury from tailings at Cineam small-scale mining site in West Java
2000 - 2001
5,000 ITB/Bapedal, Mineral Technology Research
and Development Centre
5. Conduct a study on the effectiveness of Water Lilies in the absorption of mercury from
2001 - 2003
250,000 Mineral Technology Research and
tailings
Development Centre
6. Study the atmospheric mercury pollution at Lanud mining site
2001
2,000 Mineral Technology Research and
Development Centre
7. Mapping the distribution of mercury on sediment samples along Cikaniki River in Pongkor, 2000 - 2001
34,000 Directorate of Mineral Resources - DMR
West Java
8. Carry out policy and legislation reviews, training and capacity building in order to
2000 - 2001
1,000,000 President's Office

18

---

significantly reduce illegal mining activities in the country
9. Training and capacity building for government officials and local administrators in North
2001
154,000 Deutsche Stiftung fuer Internationale
Sulawesi on different issues related to artisanal mining and extraction.
Eutwicklung (DSE) of Germany and
Provincial Government.
Sub-Total Co-financing for Indonesia
2,089,000

LAOS
1. Country Focal Point remuneration
Project Period
54,000 Central Government
2. Office Space
Project Period
6,000
Sub-Total Co-financing for Laos
60,000

SUDAN
1. Country Focal Point Remuneration
Project Period
180,000 Geological Research Authority
2. Office space and facilities
Project Period
20,000
Sub-Total Co-financing for Sudan
200,000

TANZANIA
1. Country Focal Point Remuneration
Project Period
60,000 Ministry of Energy & Minerals
2. Office Space, furniture and facilities
Project Period
25,000
3. Training of small-scale miners on exploration, mining and business techniques
2000 - 2001
335,000 Ministry of Energy & Minerals
and the World Bank
4. Procure eight packages of mining and processing equipment and carry out technology
2000 - 2001
850,000 Ministry of Energy & Minerals
demonstration.
and the World Bank
5. Raising awareness and training of miners on mercury pollution related threats
2000 - 2001
360,000 Government of Japan and UNIDO
Sub-Total Co-financing for Tanzania
1,630,000

ZIMBABWE
1. Country Focal Point Remuneration
Project Period
60,000 Government of Zimbabwe
2. Office Space, furniture and facilities
Project Period
16,000
3. · Develop system for information exchange between Mining and Environmental
2000 - 2001
375,000 Canadian International Aid Agency &
Departments;
Government of Zimbabwe
· Draw new or modified statutes, policies and guidelines for EIA and mine site
rehabilitation.
4. Provide extension and advisory services including free analytical laboratory facilities for
Every Year -
400,000 Government of Zimbabwe
small-scale miners.
3-year budget
5. Reduction of environmental degradation through introduction of efficient equipment.
2000 - 2001
40,000
6. Enforcement program of environmental regulations with small-scale mining areas.
Every Year - 3-
24,000
year budget

19

---

7. To identify and introduce alternative methods to mercury amalgamation in gold recovery

10,000 Southern Africa Development Cooperation,
(SADC)
8. To integrate environmental regulations at all levels in the mining sector and institute
2000 - 2003
4,500,000 European Union & G overnment of Zimbabwe
organization and regulation of artisanal mining sector
9. To control alluvial gold panning and associated environmental damage by introducing basic
2000 - 2002
25,000 Germany Development Agency - GTZ
and efficient gravity technology based on sluice boxes.
Sub-Total Co-financing Zimbabwe
5,450,000
Sub-Total Co-financing from Participating Countries
12,382,000

UNIDO
1. Stakeholders awareness campaign program
2000 ­ 2001 /
30,000 UNIDO
Project Period
2. Identify pollution in "hot spots" areas
2000 ­ 2001 /
120,000 UNIDO
Project Period
3. Enhance capacity of local laboratories
2000 ­ 2001 /
30,000 UNIDO
Project Period
4. Organize on the job training
2000 ­ 2001 /
60,000 UNIDO
Project Period
5. Training for local fabricators and manufacturers
2000 ­ 2001 /
60,000 UNIDO
Project Period
6. Demonstrate competitive basic mechanical alternatives to amalgamation
2000 ­ 2001 /
60,000 UNIDO
Project Period
Sub-Total Co-financing UNIDO
360,000

UNDP
1. Cost for UNDP representatives to attend Global Project Task Fo rce meetings
Project Period
23,000 UNDP
2. Cost for UNDP representatives to attend Basin Project Task Force meetings
Project Period
90,000 UNDP
3. Cost for UNDP representatives to attend regional workshops
Project Period
20,000 UNDP
4. Cost for UNDP representatives to attend Donors Conference
End of Project
7,000 UNDP
Sub-Total Co-financing UNDP
140,000


Total Project Co-financing
12,882,000


20

---

ANNEX F: BASELINE ACTIVITIES

No.
Project
Activities
Expected Output
Budget (US $)
Remark
BRAZIL
1. Conduct studies within the Amazon Establish mercury extent, migratory paths, Data on extent and behaviour of
1,596,000 Financed by PADCT, Ministry of
basin and establish extent and accumulation in fish, sediments and mercury
Health and CNPq
behaviour of mercury in Biota
atmospheric releases
2. To build capacity for the mercury Assessment of existing facilities, Well equipped laboratories and
1,334,000 CNPq, PADCT, Faperj & Ministry
testing laboratories
establishment of needs requirements, trained staff.
of Science and technology.
acquisition, installment and testing of
facilities.
3. Strengthening of the environmental Review existing legislation, identify flaws · New Environmental
2,560,000 CNPq, IDRC-Canada & Ministry of
legal and regulatory framework
and develop new environmental legislative
legislation;
Science & Technology
framework for the Garimpos
· New environmental
regulations.
4. To strengthen the productivity Identify problems associated with low Criteria for efficient gold mining
950,000 Ministry of Science & Technology,
potential of the Garimpos
productivity; recommend and test new activities
CYTED (Iberoamerica), CNPq
methods.
5. Conduct gold and mercury Study current gold mining operations and Factors influencing current
6,200,000 Brazilian Congress House
sampling of selected sites (Tapajos, establish influencing factors, recommend activities, intervention measures,
Pocone, & Alta Floresta), conduct technological improvements and legal required legal measures.
anthropology of technology, measures to be taken.
recommend intervention measures
for both technology and legislation.
Sub-total - Baseline Activities for Brazil
12,640,000

INDONESIA
1. Promotion of the small-scale · Assist small-scale miners in mineral Creation of more organized small-
2,500, 000 Directorate General of Mines
mining sector.
rights acquisition procedures;
scale mining activities that are
(DGM)

· Train miners on safe mining methods.
efficient and operate within the

· Introduce cleaner technology.
legal framework.

· Reduce the amount of illegal miners.

2. The use of water vegetation Minimize the concentration of Hg and Zn. Effectiveness of heavy metals
5,000 Indonesian Sciences Agency (LIPI)
Monocharis vaginalsis to adsorb
adsorption by the monocharis
Hg and Zn from surface waters.
vaginalsis.
3. LH/GTZ project in collaboration To eliminate undesirable environmental Improved environmental
140,000 Germany,
with the Environmental Impacts and social effects, while utilizing its management of artisanal mining
Indonesia (BAPEDAL)
Management Agency (BAPEDAL), economics potential for a decentralized activities at local and Government
in Central Kalimantan.
development of the provinces.
levels.

21

---

4. Decentralization Training Module · Capacity building on environmental Increased capacity for
340,000 Deutsche Stiftung fuer
of Regional planning project impact management;
environmental management at the
Internationale Eutwicklung (DSE),
management. Small Scale Mining · Training and awareness raising to local Government levels.
National Institute of
Module (National Institute of decision-makers and local
Administration, North Sulawesi
Administration (LAN) and administration staff.
Provincial Government.
Deutsche Stiftung fuer
Internationale Eutwicklung (DSE)).
5. Reduction of illegal mining To minimize the illegal mining activities More organized legal activities
5,000,000 The President's Office.
Activities.
significantly.
Sub-total - Baseline Activities for Indonesia
7,985,000

LAOS
1. Carry out study to enable the To develop new small-scale mining fiscal · New fiscal revenue collection
400,000 Lao Peoples Democratic Republic
collection of mining fiscal revenue revenue collection and licensing systems
system;
(Lao PDR)
and licensing to be transferred to
· New licensing system for small-
Provincial Governments
scale mining.
2. Develop a computer based Develop and implement computerized Efficient licensing system
850,000 Lao PDR
licensing system linking the licensing system.
provincial authorities to central
Government authorities.
Sub-total - Baseline Activities for Laos
1,250,000

SUDAN
1. Review the 1967 Mining Act and Review existing legislation and develop New Licensing system for small-
1,500,000 Geological Research Authority of
the Investment Code and develop system for licensing small-scale miners
scale miners
Sudan (GRAS).
artisanal and small-scale licensing
system.
2. To develop a gold marketing Identify gold production levels, fiscal Procedure for licensing, buying and
325,000 Geological Research Authority of
system
regime and recommend gold marketing selling gold.
Sudan (GRAS) and Ministry of
system.
Industries
3. Institutional strengthen for the To provide adequate working facilities for Well equipped mining institutions.
900,000 Government of Sudan
Government institutions GRAS and related regional offices
responsible for mine management
Sub-total - Baseline Activities for Sudan
2,725,000

22

---

TANZANIA
1. Development of the Legal, To develop and enact the mining policy ·
New Mining Policy;
4,000,000 World Bank & Government of
Regulatory, Fiscal and and relevant legislation.
·
New Mining Act and
Tanzania.
Environmental management
Regulations
frameworks for the mineral sector.
·
Environmental Regulations and
guidelines.
2. To strengthen the capacity of the Training of government staff, provide More organized government
6,000,000
Government institutions in the working facilities including offices, institutions for managing the
management of the mineral sector. vehicles, laboratory equipment, etc.
mining industry.
3. To improve the economic, social Baseline survey, strengthening of miners' A more organized artisanal mining
965,000
and environmental performance of associations, information dissemination, sector operating within the legal
the artisanal mining sector.
awareness workshops and project framework.
management.
Sub-total - Baseline Activities for Tanzania
10,965,000

ZIMBABWE
1. Institutional strengthening for better Strengthening mining related educational Well equipped and structures
34,700,000 European Union & Government of
management of the mineral sector. institutions; integration of environmental government institutions for
Zimbabwe
regulations; organization and regulation of managing the mineral sector.
small-scale mining sector.
2. Mining titles and Environmental Develop simple licensing system; More simplified environmental
2,000,000 Canadian International
management
integrate systems for environmental management system and improved
Development Agency (CIDA) and
information exchange; Develop EIA institutional efficiency.
Government of Zimbabwe.
procedures and guidelines, improve
mining department efficiency.
3. Provision of extension and advisory Offer professional advice to miners and Organized and well supported
410,000 3-years budget - Government of
services to artisanal miners.
provide free laboratory analytical facilities artisanal mining activities.
Zimbabwe.
4. Avoidance of environmental Introduce efficient technology that will Environmentally acceptable mining
68,000 SADC and Government of
degradation in artisanal mining minimize negative environmental impacts. activities.
Zimbabwe.
activities.
5. Mine Inspection by the Department To enforce mining regulations and advise Operations within the legal and
24,000 3-years budget - Government of
of the Chief Mining Engineer.
on proper mining methods.
regulatory framework.
Zimbabwe.
6. Improvement of alluvial mining To control alluvial mining gold panning Environmentally acceptable alluvial
50,000 Germany Development Agency,
techniques.
associated environmental damages.
panning activities.
(GTZ).
Sub-Total - Baseline Activities for Zimbabwe
37,252,000


Total - Project Baseline Activities
72,817,000

23

---

ANNEX G: CO-FINANCING AND GEF ACTIVITIES CROSS -MATRIX

Objective GEF Project Activities
Co-financing Activities
Remarks
/Activities
Objective 1A: Ensure project coordination and support
Activities Create and manage a Global Project Task Force (GPTF) UNDP

1A.3
with representatives from the (CPTFs), country focal Meet costs for UNDP representatives attending GPTF
points, PCU, UNIDO and UNDP.
meetings.
Objective 1B: Establish country program management structures and task forces
Activities


1B.1
In consultation with the Government institution responsible Identify and meet costs of a senior Government official to Country focal points will not be paid by the
for mining, identify a senior official to act as the country work as the count ry focal point, provide offices and some project and all countries will provide offices and
focal point and thus assume leadership of the project facilities.
basic facilities at varying levels.
activities, recruit an assistant for the day-t o-day running of
activities and provide working facilities.
1B.5
Create a Basin Project Task Force (BPTF) and provide UNDP

resources to enable both CPTF and the BPTF to carry out Meet costs for UNDP representatives attending BPTF
their roles.
meetings.
Objective 2: Increase artisanal mining knowledge and awareness
Activities


2.4
Organize and conduct stakeholders' awareness campaigns INDONESIA: Training and capacity building for The Indonesian activity targets specifically
with target groups being miners and their associations, Government officials and local administrators in North government officials in a campaign to reduce
NGOs, the public, relevant Government institutions, local Sulawesi on different issues related to artisanal mining illegal mining activities that will enhance the
Governments, etc., covering different aspects of artisanal and extraction.
project efforts.
mining.


TANZANIA : Raising awareness and training of on Enhances the envisaged project objectives.
mercury pollution related threats.
2.6
Based on the results of Activities 2.1 and 2.2 and those INDONESIA: Training of miners in areas of West and Provides direct training in areas different from
from awareness programs create generic and adaptable East Java on mining techniques and introduction of project areas - enhances project extension.
versions of course packages by using the TRAIN-X cleaner technology.

methodology which will form targeted educational and

training programs for miners, relevant NGOs and TANZANIA: Training of small-scale miners on Training emphasis on different areas but
Government institutions.
exploration, mining and business techniques.
enhances the overall increase of knowledge.

24

---

2.7
Through the CPTF, assist the Government to prepare ZIMBABWE: Develop system for information exchange The two activities are complementary.
programs that will lead to improved institutional between mining and environmental departments.
cooperation for the institutions dealing with environmental
issues in the country.
Objective 3: Establish extent of mercury pollution impacts of the affected areas
Activities


3.2
Conduct geochemical sampling and analysis of the mining INDONESIA: (1) Mapping the distribution of mercury Although focuses on a different area, it will
area and use the results to identify "hot spots" areas within on sediment on Cikaniki River in Pongkor, West Java.
enhance the amount of available data regarding
the project implementation areas.

the extent of mercury pollution in the country.
(2) Conduct a study on the effectiveness of Water Lilies in
the absorption of mercury from tailings.
Both activities (2) and (3) enhance knowledge

on the extent of mercury pollution and develops
(3) Study the atmospheric mercury pollution at Lanud new approach for remediation.
mining site.



BRAZIL: (1) Conduct survey and laboratory tests to Both activities (1) and (2) for Brazil will
determine the extent of mercury within the Amazon biota. increase the amount of data available regarding

the extent of mercury in the environment.
(2) Carry out measurement of the released mercury
vapours by using denuders.


Benefit other participants in understanding the
(3) Carry out field and laboratory tests and establish the factors associated with mercury methylation.
factors affecting the methylation of mercury.
3.3
Collect human specimens and other biological samples and BRAZIL: (1) To study the effects of eating fish Will increase knowledge on the impact of
assess the impact and extent of mercury pollution along contaminated with mercury within the Pocone population. mercury through fish eating.
waterbodies.


(2) Study the relationship between Malaria and mercury Increase knowledge of the relationship between
poisoning amongst miners
Malaria and mercury poisoning.
3.4
Conduct surveys and establish the extent of mercury BRAZIL: Carry out tests and establish movements and The two will complement each other and
migration from the selected mining area to surrounding paths of heavy metals.
augment our knowledge on the movement of
waterbodies and the vertical migration within the identified
heavy metals, especially mercury.
hot spots.

25

---

3.6
In collaboration with the Government, identify a local BRAZIL: (1) To carry all assessment activities that Enable local laboratory to acquire international
laboratory and enhance its resources capacity to enable it to would lead to laboratory certification.
recognition.
conduct continuous monitoring of mercury pollution in

waters surrounding artisanal mining areas. Assist in the (2) Acquisition, installation and testing of heavy metal Further capacity building of local laboratories.
development and setup of the monitoring program.
testing equipment.



ZIMBABWE: Provide extension and advisory services The laboratory services extended by the
including free analytical laboratory facilities for small- Government can be enhanced by providing
scale miners.
capacity for continuous monitoring.


3.7
Formulate measures for remediation and rehabilitation of INDONESIA: Extraction of mercury from tailings at Removes a direct source for mercury
the "hot spots" areas including the strategy for Cineam small-scale mining site in West Java
contamination.
immobilization or recovery of mercury.


ZIMBABWE: Draw new or modified statutes, policies
and guidelines for EIA and mine site rehabilitation.
Measures on rehabilitation of mining sites will
be complementary.
Objective 5: Introduce and demonstrate efficient and clean technology
Activities


5.1
Organize on the job training in order to introduce miners to ZIMBABWE: (1) Provide extension and advisory Extension and advisory services will enhance
the new working methods and equipment.
services including free analytical laboratory facilities to the onsite training on new technology on a
small-scale miners.
much long-term.

5.3
Demonstrate competitive basic mechanical alternatives to INDONESIA: Training of miners in areas of East and Although the technology to be introduced is not
mercury amalgamation and introduce "closed circuit West Java on mining techniques and introduction of new necessarily targeted at mercury minimization, it
processing" methods for activities based on amalgamation; technology.
will enhance the project efforts.
show cost effectiveness of introduced equipment.


ZIMBABWE: (1) To control alluvial gold panning and Both activities aim at reducing the application
associated environmental damage by introducing basic of mercury and hence enhance the project
and efficient gravity technology based on sluice boxes.
efforts.

(2) To identify and introduce alternative methods to
mercury amalgamation in gold recovery.
5.4
Construct demonstration high-recovery gravity TANZANIA: Procure eight packages of mining and Although not specific on the reduction of
concentration equipment, install on selected sites, assess processing equipment and carry out technology mercury pollution, it will complement the
and evaluate their cost effectiveness.
demonstration.
increase in knowledge and productivity.


ZIMBABWE: Reduction of environmental degradation Complementary to the project objectives though
through introduction of efficient equipment.
with limited budget.

26

---

Objective 6: Develop Program for cont rolling emission of pollutants
6.1
Conduct literature review on artisanal gold extraction BRAZIL: To study the current activities using mercury Assist in the establishment of sustainable
activities "sustainable indicators", policies and legislation and establish sustainability criteria for such activities.
operative indicators that will be used to develop
on environmental aspects and associated standards paying
environmental policy and legislation.
attention to mercury pollution resulting from gold
processing activities.
6.5
Assist the Governments to develop guidelines on extraction BRAZIL: Analysis of the existing environmental legal Will allow easy understanding of the existing
indicators, policies and legislation that will lead to framework and its applicability to the Brazilian Garimpos. framework.
achievable and enforceable standards.


INDONESIA: Carry out policy and legislation reviews, Targets reduction of illegal mining that is
training and capacity building in order to significantly necessary for the project success.
reduce illegal mining activities in the country.



ZIMBABWE: (1) Draw new or modified statutes, Modified policy and legislation will
policies and guidelines for EIA and mine site complement project objective.
rehabilitation.



(2) To integrate environmental regulations at all levels in Harmonization of environmental legislation will
the mining sector and institute organization and regulation enhance enforcement program.
of artisanal mining sector
6.7
In collaboration with Governments, develop enforcement ZIMBABWE: Enforcement of environmental regulations As a continuous program, it provides long-term
programs.
in small-scale mining areas.
sustainability of the project objective.
Objective 7: Dissemination of results, self-financing and donor conference
7.2
Organize and conduct three regional annual workshops, UNDP:

one in each of the three regions, on sustainable gold Meet costs for UNDP representatives to attend regional
extraction procedures and techniques with participants workshops.
from the stakeholders, relevant institutions and the general
public.
7.4
Organize and sponsor a donor conference using the UNDP:

ongoing GEF project as a leverage for the creation of Meet costs for UNDP representatives to attend donors'
necessary additional financiers.
conference.


27

---

ANNEX H: SOLUTIONS FOR REDUCING MERCURY POLLUTION



Solutions
Alternative Processes
Identification of
Reduction of Hg
not Requiring Hg
"Hot Spots"
Emissions
Gravity concentration

Polluted
Mercury
Systematic
Individual
Gravitation

Sites
Dispersed
Solutions
Solutions
Others
Training &
Awareness
Awareness
Campaigns


Micro-financing
Retorts
Remediation
Y
Bioaccumulation
Y
Change of


Strategies
Occurring ?
Food Habits
Strengthen
Special Fume
Institutions
Hoods (filters)
N


Improve
Monitoring
Regulatory
Framework

Fish
Continuous

Monitoring &
Hair & Body
Capacity
Fluids
Building

28

---

ANNEX I: EXAMPLES OF MERCURY POISONING IN HUMANS

1.
Total mercury (T-Hg) and methylmercury (MeHg) concentrations in hair and urine from
inhabitants of the Lake Victoria goldfields, Tanzania (Source: Ikingura et al., 1995).

Sample no.b Sex (M/F)
Age
Duration
Occupationsa
Hair T-
Hair
Urine T-Hg
(Years)
mine/village(
Hg (ppb)
MeHg (%)
(ng/ml)
years)
Mu-01
M
30
3
b
1115
28.4
318.5
Mu-02
M
34
6
m, a
1025
27.3
90.1
Mu-03
M
22
6
p,b
2988
9.7
201.6
Mu-04
M
53
6
m,p,b
715
ND
1.8
Mu-05
M
50
6
m,p,b
421
69.1
4.2
Mu-06
M
25
10
p,a,b
2209
17.2
145.4
Mu-07
M
22
5
p,a,b
1114
17.4
129.4
Mu-08
M
21
3
p,a,b
5433
7.3
411.4
Mu-09
F
28
2
a,c
214188
0.1
8.8
Mu-10
F
27
1
w
365
63.3
1.9
Mu-11
F
32
7
w
416
30.7
1.3
Mu-12
M
13
6
s
1500
21.0
4.5
Mu-13
M
23
5
m,a,b
505
34.2
102.6
Mu-14
M
20
5
m
ND
ND
3.1
Pr-15
F
6
6
-
ND
ND
2.0
Pr-16
F
13
13
s
ND
ND
21.7
Pr-17
F
35
11
t
34212
0.5
27.3
Nu-20
M
55
9
f,g
442
20.5
0.9
Nu-21
M
42
2
d
383
44.6
2.7
Nu-22
M
54
25
d,f
ND
ND
1.0
Nu-23
M
65
10
g
271
33.4
14.1
Nu-24
M
44
2
f,g
260
32.7
1.1
Nu-25
M
48
7
f,g
ND
ND
1.1
Nu-26
M
41
3
f,g
156
59.0
1.2
Nu-27
F
17
17
g
216
61.3
0.7
Nu-28
F
19
19
g
318
54.8
ND
Nu-29
F
17
17
g
197
ND
ND
Nu-30
F
15
15
g
375
82.1
ND
Nu-31
F
6
6
-
419
47.0
ND
aOccupation: a, amalgamation; b, amalgam burning; c, commerce; d, administration; f, fishing; g, agriculture;
m, mining; p, panning; s, student; t, teacher; w, housewife.
bSample locality: Mu, Mugusu gold mine; Pr, primary school; Nu, Nungwe Bay village; ND, Not Determined.

2.
Symptoms of Mercury Poisoning Observed from Artisanal Gold Miners in Zimbabwe

A study conducted in Insiza District which is one of the most active artisanal gold mining areas in
Zimbabwe by the Intermediate Technology Development Group revealed that almost 95% of all the
miners in the area use mercury and the majority had the following symptoms which are related to
mercury poisoning:
· 60% had body weaknesses;
· 55% were feeling nausea;
· 50% had lost teeth, 45% had history of respiratory distress;
· 40% had high salivation and tremours;
· 30% had a history of kidney disease and diarrhea.


29

---

Medical examinations conducted on a selected number of miners in the area indicated significant
indicators of severe mercury poisoning as follows:
· 50% had evidence of blue colouring on the gingival and the gingivitis;
· 45% had problem with teeth;
· 25% had blue colouration of the oral mucosa;
· 20% had conjunctiva;
· 15% had poor eyesight;
· 10% lost hearing;
· 5% had lung disease and hyperreflex.

The most significant clinical results indicating severe mercury poisoning are blue gingiva and blue
colouration of the oral mucosa. Lost teeth, poor eyesight and lost hearing although may be significant as
indicators of mercury poisoning require matching with other factors including age, diet and sex. Tests
carried out on samples of blood show that 40% and 30% had elevated levels of mercury in hair and blood
respectively. Another study conducted in the Mashonaland Central Province (Harare Mining District)
around Chiweshe and Tafuna Hills by the Small Scale Mining Association indicated levels of mercury in
blood ranging from 0.001 to 0.74 mg/l (16.7% had levels above 0.05mg/l). Levels of mercury in urine
ranged between 0.001 to 0.018mg/l.


30

---

ANNEX J: IMPLEMENTATION AND TIME SCHEDULE OF THE PROJECT ACTIVITIES

1.0
Implementation of Activities
The implementation of the project activities will be carried out in four main groups consisting of those
activities that will be executed by the project management. i.e., PCU, Country Focal Points and their
assistants, activities to be executed by individual experts, short term international consultants and those
that will be executed through sub-contracts:

1.1
Group I: PCU and Country Focal Points
Apart from the overall coordination and overseeing implementation of the project activities, the PCU and
the Country Focal Points and their assistants and in collaboration with UNIDO and UNDP will be
responsible for the recruitment of experts, organization and convening of meetings and workshops and
other administrative activities. Table I shows the list of activities that will be directly carried out by the
PCU and Country Focal Points:

Table I: Activities to be executed by the Project Management
Activity
Activities
Responsible Agent
No.
1A.1 Recruit and hire the Chief Technical Advisor (CTA), a Small-scale UNIDO
Mining Expert (SSME) and supporting staff.
1A.2 Establish the Project Coordinating Unit (PCU) responsible for overall UNIDO
coordination and facilitation of the project and establish
communication channels between participating countries.
1A.3 Create and manage a Global Project Task Force (GPTF) with PCU
representatives from the (CPTFs), country focal points, PCU,
UNIDO and UNDP.
1B.1 In consultation with the Government institution responsible for UNIDO, PCU and UNDP
mining, identify a senior official to act as the country focal point and
thus assume leadership of the project activities, recruit an assistant
for the day-t o-day running of act ivities and provide working
facilities.
1B.2 In collaboration with the PCU, recruit and hire project consultants,
UNIDO, PCU, Country Focal
preferably local consultants, in the areas that are specific to the
Points
project activities and time schedules.
1B.4 With the assistance of the PCU, plan and hold county-based project Country Focal Points, PCU
awareness workshops, one in each participating country and create
the Country Project Task Force (CPTF).
1B.5 Create a Basin Project Task Force (BPTF) and provide resources to
Country Focal Points, PCU
enable both CPTF and the BPTF to carry out their roles.
6.6
Conduct a workshop with representatives from the stakeholders, Country Focal Points, PCU

relevant Government institutions, the private sector and general
public to discuss the proposed guidelines, policies and legislation.
7.1
Organize country based annual workshops on sustainable artisanal
Country Focal Points, PCU
gold extraction techniques with participants from the stakeholders,
relevant institutions and the general public.
7.2
Organize and conduct three regional annual workshops, one in each PCU, Country Focal Points

of the three regions, on sustainable gold extraction procedures and
techniques with participants from the stakeholders, relevant
institutions and the general public.
7.4
Organize and sponsor a donor conference using the ongoing GEF
PCU, Country Focal Pints
project as a leverage for the creation of necessary additional
financiers.


31

---

1.2
Group II: Individual Experts
Activities executed by individual experts recruited by UNIDO according to the requirements of the
project objectives. The terms of reference will specify the required qualifications and experience for each
of the expert. It is envisaged that the project will require the following experts:
(i)
Mining Engineer;
(ii)
Mineral Processing Engineer;
(iii)
Environmental Expert;
(iv)
Women In Development (WID) Expert;
(v)
Expert in Mining and Environmental Law;
(vi)
Toxicologist/Neurologist;
(vii)
Computer Database Expert.

Table II: Activities to be executed by Recruited Individual Experts
Activity
Activities
Responsible Expert(s)
No.
1B.3 Review past, existing and prepare new case studies focusing on the applied
Mining/Processing
methodologies and lessons learnt and identifying impacts associated with the Engineer
application of mercury in gold processing.
2.1
Conduct survey and identify appropriate project implementation sites for the Mining/Processing
demonstration of efficient and cleaner technology and conduct consultations Engineer
with stakeholders regarding the project objectives.
2.2
Collect and compile information through detailed analysis of legal and
Mining & Environmental
regulatory frameworks and its application to artisanal mining.
Law Expert
2.3
Conduct artisanal miners' training needs assessment through consultations
Senior Mining/Processing
with miners, miners' associations, local Governments, NGOs, mineral dealers Engineer and WID Expert
and relevant Government institutions.
2.7
Through the CPTF, assist the Government to prepare programs that will lead
Environmental expert
to improved institutional cooperation for the institutions dealing with
environmental issues in the country.
3.5
Organize permanent visits of medical doctors experienced in mercury
Toxicologist/ Neurologist
intoxication problems to carry out specific medical checkups.
3.6
Assist in introduction and set-up of continuous monitoring programs.
Environmental Expert
3.7
Formulate and carry out measures for remediation of the "hot spots" through Mineral Processing
identification and isolation of mercury containing tailings followed by
Engineer
recovery and/or immobilization of mercury.
4.1
Through field investigations compile a database on existing artisanal mining
Computer Database
and processing technology and establish tech nological requirements.
Design Expert
4.2
Establish Info-base for local and foreign suppliers and supply routes of
Mining/Processing
equipment and tools with the view of establishing suppliers of
Engineer
environmentally acceptable equipment and tools.
4.3
Identify existing facilities and their capacities within mining areas and
Mining Engineer
neighbouring towns that can be used for fabrication of simple working tools.
4.4
Establish, through interviews with relevant Government institutions, the tax
Mining Engineer
regime and restrictions on importation of mining equipment and supplies.
5.1
Organize on the job training in order to introduce miners to the new working
Mining /Processing
methods and equipment.
Engineer; WID Expert
5.2
Identify and conduct training to local fabricators and manufactures and work
Mining/Processing
closely with the trainees to enable them to produce tools that conform to
Engineer
specified project requirements and that will be used during the project
implementation and beyond.
5.5
Establish equipment supply channels through linking miners to the suppliers
Mining Engineer
and through collaboration with the relevant Government institutions.
5.6
Conduct mercury immobilization through extraction in areas identified as
Mineral Processing
being highly polluted.
Engineer
6.1
Conduct literature review on artisanal gold extraction activities "sustainable
Mining and
indicator", policies and legislation on environmental aspects and associated
Environmental Law
standards paying attention to mercury pollution from processing activities.
Expert

32

---

6.2
Carry out review of the identified indicators, legislation and regulations and
Mining and
compare them to those existing in the country.
Environmental Law
Expert
6.3
Based on the results of Activity 6.2, prepare and give recommendations on
Mining and
new or revised indicators, policies and legislation.
Environmental Law
Expert
6.4
Conduct consultations with various stakeholders on recommendations and
Mining and
collect views regarding sustainable operative indicators, policies and
Environmental Law
legislation that will lead to achievable and enforceable standards.
Expert
6.5
Assist the Governments to develop guidelines on extraction indicators, and
Mining and
policies and legislation that will lead to achievable and enforceable standards Environmental Law
within the artisanal mining sector.
Expert
6.7
In collaboration with the Government, develop enforcement programs.
Mining and
Environmental Law
Expert
7.3
Review the opportunities for self-financing of project components at the
Mining/Processing
global, national and regional levels, pinpointing the potential economic
Engineer
sources and mechanisms.

1.3
Group III: Short-term International Consultants
International Consultants with experience relevant to the requirements of the project objectives will be
recruited in order to carry out the following activities.

Table III: Activities to be executed by Short -term International Consultants
Activity Activities
Consultant
No.
1A.4 Establish a project Website and setup a global resource information Experience in Internet Technology
centre where reviews of past and existing studies on the application
of mercury in artisanal gold processing both in individual countries,
regional and globally can be stored and shared accordingly; establish
and maintain internet links with all participating countries.
1A.5 Make arrangements for evaluation and assessment of project results. Experience with UNDP/GEF
Project Evaluation procedures
2.6
By using the TRAIN -X methodology, create generic and adaptable Experience in TRAIN-X
versions of course packages which will form a targeted educational Methodology
and training program for artisanal gold miners, relevant NGOs and
Government institutions. Run two-weeks course development
workshops that will enable the adaptation of training packages.

1.4
Group IV: Sub-Contracts
This group includes a number of activities that will be grouped together to form sub-contracts that will be
carried out by institutions judged to have relevant experience. Table IV shows the activities that will be
combined together and the sub-contracts that will be awarded.

Table IV: Project Activities and Sub-Contracts
Activity
Activities
Sub-contract
No.
2.4
Organize and conduct stakeholders' awareness campaigns with target Organize and conduct stakeholders'
groups being the miners and their associations, NGOs, members of awareness campaigns on different
public, relevant Government institutions, local governments, etc., aspects of artisanal mining.
covering different aspects of artisanal mining.
2.5
Prepare and conduct awareness programs through different media, Prepare and conduct awareness
e.g., Televisions, Radio and Newspapers, in national and local programs through different media
languages aimed at raising awareness of the public at large on the on different aspects of artisanal
environmental and health effects of mercury.
mining.

33

---

3.1
Conduct interviews and develop a questionnaire in order to establish
the general health conditions of the members of communities living
in the mining areas.

3.2
Conduct geochemical sampling and analysis of the mining area Establish the extent and impact of
(water, soils and river sediments) and use the results to identify "hot mercury pollution to the health of
spots" areas with the project implementation sites.
miners, the ecosystem and establish
3.3
Collect human specimens and other biological samples and assess the its migration potential to other
impact and extent of mercury pollution along waterbodies.
areas.
3.4
Conduct surveys and establish the extent of mercury migration from
the selected mining area to surrounding waterbodies and the vertical
migration within the identified hot spots.
3.6
In collaboration with the Government identify a local laboratory and Identification of requirements,
enhance its resources capacity to enable it to conduct continuous acquisition, installation and testing
monitoring of mercury pollution in waters surrounding artisanal gold of monitoring laboratory equipment
mining areas.
4.5
Conduct investigations and test the establishment of micro-credit Investigate and test the
schemes that will enable artisanal miners to shift to more benign establishment of micro-credit
technologies indicating clearly the conditions for accessibility, likely schemes for artisanal miners.
participants in the program, modes of financing and other
considerations.
5.3
Demonstrate competitive basic mechanical alternatives to mercury
amalgamation and introduce "closed circuit processing" methods for
activities still based on amalgamation and show the cost effectiveness Acquire/develop, introduce and
of the introduced equipment.
demonstrate new alternative
5.4
Construct demonstration high-recovery gravity concentration technology to mercury
equipment, install on selected sites, assess and evaluate their cost amalgamation.
effectiveness.
5.7
Compile and as necessary produce documentary videos on the Compile and produce documentary
operations of the different introduced technology for use on future videos for specific project activities
training purposes.

2.0
Time Schedule of Activities

Table V shows the time schedule of all activities of the project.

34

---

Table V: Time Schedule of Activities

No.
Activities
Duration
2002
2003
2004
(days)
Jan - April- July - Oct.- Jan - April- July - Oct.- Jan - April- July- Oct.-
March June
Sept
Dec. March June
Sept
Dec. March - June - Sept Dec.
1A.1 Recruit Chief Technical Adviser and the Small -Scale Mining Expert
30












1A.2 Establish the Project Coordinating Unit (PCU) responsible for overall
30












coordination and facilitation of the project
1A.3 Establish a Global Project Task Force (GPTF)
15













- Conduct Global Project Task Force meetings*
28












1A.4 Establish and maintain a UNIDO based project Website and a global
20












resources information centre
1A.5 Conduct evaluation and assessment of project results
120












1B.1 Recruit an assistant to the country focal point and provide working
60












facilities including project vehicle, office facilities and others
1B.2 Identify and list potential local project consultants in the areas that are
15












specific to the project activities and time schedules
1B.3 Review past, existing and prepare new case studies focusing on













applied methodologies and lessons learnt while identifying impact
60
associated with mercury application in artisanal gold processing
1B.4 Plan and hold count ry based project awareness workshops, one in each
15












country and select an inter-ministerial Country Project Task Force
1B.5 Create a Basin Project Task Force (BPTF) and provide resources to
15












enable both the BPTF and CPTF to carry out their roles
- Conduct Basin Project Task Force meetings*
21












- Conduct Country Project Task Force meetings*
42












- CPTF project monitoring
30












2.1 Conduct survey and identify appropriate project implementation sites
40












for demonstration of new technology
2.2 Collect and compile information through detailed analysis of the legal
30












and regulatory regimes as they apply to artisanal mining
2.3 Conduct miners' training needs assessment through consultations with













miners, miners' associations, local Governments, NGOs and relevant
40
institutions
2.4 Organize and conduct stakeholders' awareness campaigns with targe t
15












groups being miners and their associations, NGOs, the public, relevant
Government institutions, etc., on different aspects of artisanal mining
2.5 Prepare and conduct awareness programs through media e.g., Radio &
630












Newspapers, in national and local languages on effects of mercury

35

---

2.6 Create generic and adaptable versions of course packages by using the













TRAIN-X methodology which will form targeted educational and
540
training programs for the target groups
2.7 Through the CPTF, assist the Government to prepare programs that













will lead to improved institutional cooperation for the institutions
60
dealing with environmental issues in the country
3.1 Conduct interviews and develop a questionnaire in order to establish
60












the general health conditions of miners and surrounding communities
3.2 Conduct geochemical sampling and analysis in mining areas and use













the results to identify "hot spots" areas within the project
150
implementation areas
3.3 Collect human specimens and other biological samples and assess the
120












impact and extent of mercury pollution along waterbodies
3.4 Conduct surveys and establish extent of mercury migration from













mining to other areas and the vertical migration within the affected
90
areas
3.5 Organize permanent visits of medical doctors who are experienced in













dealing with mercury intoxication problems to carry out specific
28
medical checkups
3.6 Building capacity of local laboratories:













- Identification of Laboratories and needs;
15












- equipment and facilities acquisition, installation and testing;
60












- Training, development and setup of monitoring programs
90












3.7 Formulate measures for remediation and rehabilitation of the "hot













spots" areas including the strategy for immobilization or recovery of
60
mercury
4.1 Through field investigations compile a database on the existing
30












artisanal mining technology and establish technological needs

4.2 Establish Infobase for local and foreign suppliers and supply routes of
15












environmentally acceptable equipment and tools
4.3 Identify existing facilities and capacities within mining areas and













nearby towns that can be used for fabrication of simple working tools
20
4.4 Establish through interviews with relevant Government institutions the













tax regime and restrictions on importation of mining equipment
15
4.5 Identification and development micro-financing programs:













- Identify and analyse current local micro-financing programs;
90












- Develop and test new regimes
330












5.1 Conduct on the job training in order to introduce miners to the new
30












working methods and equipment

36

---

5.2 Conduct training and work closely to fabricators & manufacturers to













enable them produce tools that conform to specified requirements
10
5.3 Acquire, install and demonstrate the use of competitive basic













mechanical alternatives to mercury in closed circuit and show cost
360
effectiveness
5.4 Construct demonstration high -recovery gravity concentration
390












equipment, install, assess and evaluate their cost effectiveness
5.5 Establish equipment supply channels through linking miners to
45












suppliers and in collaboration with relevant Government institutions
5.6 Conduct mercury immobilization through extraction in areas identified
150












as being highly polluted
5.7 Compile and as necessary produce documentary videos on the
35












operations of the introduced technology for future training purposes
6.1 Conduct literature review on artisanal gold extraction activities













"sustainable indicators", policies and legislation on environmental
16
aspects and associated standards with attention to mercury pollution

6.2 Carry out review of the identified indicators, policy and legislation
23












and compare them to those existing in the country
6.3 Prepare and give recommendations on new and revised indicators,
20












policies and legislation
6.4 Conduct consultations on the recommendations and collect views that
40












will lead to development of achievable and enforceable standards
6.5 Assist Governments to develop guidelines on extraction indicators and
90












legislation that will lead to achievable and enforceable standards
6.6 Conduct a workshop to discuss the proposed guidelines, policies and
10












legislation*
6.7 In collaboration with the Government develop enforcement programs
120












7.1 Organize country-based workshops on sustainable gold extraction
21












techniques*
7.2 Organize and conduct three regional annual workshops, one in each of













the three regions, on sustainable gold extraction procedures and
21
techniques*
7.3 Review opportunities for self-financing of project components at the













global, regional and national levels, pinpointing potential sources and
14
mechanisms
7.4 Organize and sponsor a donors' conference using the ongoing GEF
7












project as a leverage for creation of necessary additional financiers*
* Inclusive of time for preparation of meetings and workshops

Routine Activities

37

---