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Tecnical Assistance Project for the Small Scale Mining Sector / PRSM

(Small-Scale Mining Regulation)

Madagascar

Small-Scale Mining Regulation in Madagascar

projekt-consult GmbH and the British Intermediate Technology Consultants are implementing on behalf of the Ministry of Energy and Mines an integrated programme to normalise the small-scale mining sector in Madagascar. This programme is part of the Mining Sector Reform Project (PRSM) being co-financed by the Worldbank.

Complementary to the mentioned programme the PRSM has three additional components:

the set-up of an effective mining cadastre,
institutional audit of the mining sector authorities and
environmental studies and implementation of an environmental information and management system

The artisan and small-scale mining sector of Madagascar is exploiting mainly coloured gem stones (sapphire, ruby, aquamarine, emerald, tourmaline, quartz varieties etc.), gold and non metallic minerals. Actually these miners are mostly operating informally, causing losses of government revenues, environmental degradation, social conflicts and other macro economic costs. It is the aim of the project to overcome this situation and to integrate the sector into the formal economy of the country.

The project has the following goal: „Develop and test integrated approach to mainstream small-scale miners and Mining Directorate capacity to provide extension services (through pilots in selected areas)"

In order to regulate the artisanal and small-scale mining sector, which became an important factor in the employment scenery and poverty reduction in rural areas of Madagascar, the project will focus on two different intervention levels:

Basing on an extensive sector diagnostic the programme develops an integrated management plan for artisanal and small-scale mining including technical, organisational, legal, institutional, social and environmental aspects. Parallel to this the project envisages the establishment of a decentralised extension service of the relevant institutions. This is gained by intensive training of staff members of the authorities, human resource management tools and the planning of the relevant institutional outline, as well as by proposals for the adaptation of the legal framework. On the long run this shall result in a sound relation of confidence between the Malagasy Government and the small-scale mining community as well as in an enhancement of the legal status.
On the production level the project is initiating technology transfer by the implementation of integrated pilot schemes in different mining sites. This is accomplished by programmes for raising consciousness and training activities. Finally the set-up of organisational structures of the mining community is fostered in order to create liaison groups for a better communication between the private sector and the Government.

The integrated approach considers as well the downstream industry, such as gem stone cutting and polishing, as well as the marketing aspects.

The project with a period of 2 years started end of April 2000 and is staffed with an interdisciplinary team of national and international experts (mining and metallurgical engineers, social scientist, economist and communication specialist). In addition it provides funds for the upgrading of the material infrastructure of the relevant partners.

The project will help transfer the small-scale mining into an element of sustainable rural development in Madagascar.