African Mining January 2023 | Page 33

MINING INDABA •

Supply chains and new possibilities Despite the status quo within the ASM sector , it is important to note that it is still a viable sector for investment and formalisation . The key is to create new methods of working , safer activities , easy access to markets and infiltration of current illicit supply chains . The most pertinent way to aid ASM in the process of formalisation is to create a mining value chain and not just help the miners get out the minerals .

Creating a mining value chain includes the starting point of mineral exploration to mining to beneficiation to exporting . This process must be done by the miners themselves with the aid of stakeholders . The solutions should be driven from the miners by the miners . An example of a success story is Moyo Gems by Pact .

The ASM sector has infinite possibilities if it has the buy-in from state and multiple stakeholders , but this must be aligned to a resilience of sorts . The steadfastness of individuals opposing syndicates must remain unwavering . In this way we can possibly build new value chains for ASM while eradicating illicit supply chains .

Possible investment in ASM Many investors don ’ t think of ASM as a viable opportunity . Instead , it is perceived as a development problem that should be handled by NGOs and the likes . The truth of the matter is that there is value in ASM and a great possibility of return of investment if done right . The key in investing in ASM is not just to invest in one aspect of ASM but to invest in multiple critical aspects that will have an impact on mining and beneficiation .

For example , investing in new technologies as well as training allows for artisanal miners to increase efficiency , work safely and

produce a better product . This is an example that in technical terms costs much less than most large-scale mining needs . Another example is if a large-scale mining house provides areas that are not viable to mine for them to ASM in a joint venture . This could lead to product being supplied to the mine as a passive income . It ’ s a win-win situation as the artisanal miners get market value for their mineral while having a safe working place .

Investment in ASM is not only monetary . In fact , more technologies , health and safety equipment / gear , training and guidance are the more critical investments that are necessary in this space . The question to ask then , is not whether investors can invest in ASM but rather are investors willing to invest in ASM ?

If this question is answered with a yes , then this investment must be taken holistically and innovatively . Illicit supply chains must be confronted and dealt with decisively . Also , an avenue should be created for those willing to abscond the illegal to be formalised . This partial formalisation is only possible if together we create a vacuum through investment for legal artisanal and small-scale mining . •

To create a sustainable sector , it is crucial not only to investigate these illicit supply chains , but also to apply punitive measures to those who are active participants .

About the author : Kgothatso Nhlengetwa obtained a BSc ( Hons ) in geology from the University of the Witwatersrand in South Africa . She started her career at AngloGold Ashanti in mining geology before leaving to study social entrepreneurship at the Gordon Institute of Business Science . Her academic research work focused on a comparative study of Artisanal and Small Scale Mining ( ASM ) in South Africa . Her multidisciplinary research included the key aspects of geology , livelihood , mining value chain and policy analysis . She worked as an associate lecturer in the School of Geosciences at the University of the Witwatersrand where she taught on a range of topics including orebody modelling , ASM and social licence to mine . She is a Canon Collins Scholarship recipient and winner of a masters ’ fellowship award from the Women in Science Awards by the Department of Science and Technology ( 2014 ). Her work has been published on various platforms including scientific journals , online publications and newspapers . She has spoken on multiple platforms on the topic of ASM , both on TV and on radio . She is the founding director of Imbokodo Mining Services ( Pty ) Ltd , serving as an ASM consultant , researcher and advisor . She serves as a special advisor to the National Association of Artisanal Miners and is a founding member of the Black Geoscientists Forum . She is a mentor , motivational speaker and member of Women in Mining South Africa .

Kgothatso Nhlengetwa , founding director of Imbokodo Mining Services ( Pty ) Ltd , serving as an ASM consultant , researcher and advisor .

Kgothatso Nhlengetwa