Illegal small-scale mining potential economic boon

UNITED NATIONS, Feb 15 (IPS) - Developing countries could reap benefits at the national and regional levels if they legalise small-scale mining activities, says the United Nations.

Small-scale mining has ''a significant and positive impact on national and regional economies,'' argues U.N. Secretary-General Boutros Boutros-Ghali in a 30-page report on mining activities in developing countries and economies in transition.

He warns that illegal small-scale mining for precious metals and gem stones throughout Asia, Africa and Latin America has brought disastrous health and environmental consequences.

But Boutros-Ghali says that despite the negative side-effects ''small-scale mining should be legalised and formalised to promote its growth''.

He argues that a legal framework that recognises the existence of small-scale mining offers the best chance of limiting the environmental, social and health costs.

"Laissez-faire attitudes" have resulted in uncontainable and environmentally disastrous ''gold-rush-type mining,'' he says.

Boutros-Ghali cites illegal gold-mining in about 2,000 locations in Brazil as an example of man-made environmental degradation that ranges from severe deforestation to infection of animals and the silting of rivers.

Government support of small-scale mining operations could help alleviate poverty while boosting rural employment opportunities, says Boutros-Ghali.

Illegal gemstone mining in India's mineral-rich Orissa state employs between 50,000 and 60,000 people and gem stones are set to become India's leading export earner.

In an effort to limit the illegal sale of rubies, garnets and diamonds at rock-bottom prices, Indian authorities are encouraging local traders to lease the land from the government, making all operations legal.

The report says that in many regions of the world, women have joined the 30-million-strong mining population as an economic alternative to subsistence farming.

Boutros-Ghali says that governments should implement policies that provide enhanced health care, basic education and training to these women on a priority basis. He says banks should also provide small loans to women entrepreneurs in the mining sector.

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