MINEX Forum

Tag: artisanal mining

  • China Is Winning the Critical Minerals Great Game — and Writing Cheques Alone Won’t Be Enough for the West to Catch Up

    China Is Winning the Critical Minerals Great Game — and Writing Cheques Alone Won’t Be Enough for the West to Catch Up

    China has built a commanding lead in the global competition for critical minerals that its rivals are only beginning to take seriously, and the strategies required to challenge that dominance will need to go well beyond capital deployment, according to an analysis by Veridicor that frames the contest as a “Great New Game” of geopolitical rivalry over strategic resource access.

    The scale of China’s position is striking. The country controls 60% of global rare earth mining and 87% of refining, 64% of graphite mining and 100% of its refining, 65% of cobalt refining and 40% of copper refining. This dominance has been built deliberately over 25 years through a strategy that understands critical minerals as integrated value chains — combining mining, refining and infrastructure — rather than isolated extraction activities. The integration of critical minerals policy with broader industrial strategy has delivered additional competitive advantages, including global leadership in solar power and electric vehicle manufacturing.

    The macroeconomic context driving urgency is severe. Demand projections point to significant supply gaps in the medium and longer term. Estimates suggest the world needs to mine as much copper in the next 50 years as it has in the last 5,000 years — a challenge that Wood MacKenzie estimates will require $2.3 trillion in net new mining investment globally to address. The pattern repeats across most critical minerals, with supply gaps both looming and material.

    The analysis argues that for the US, Europe and others to challenge China’s dominance, differentiation rather than imitation is the key strategic imperative. “Writing checks won’t be enough to change the critical minerals balance that China has earned,” the paper states. The proposed differentiator is excellence in responsible mining practices — an area where Western actors can build genuine competitive advantage in ways that China’s state-driven model has not prioritised.

    The logic operates through several mechanisms. Communities, Indigenous nations and other stakeholders in mining regions can accelerate or obstruct permitting processes depending on the trust relationships developed with project operators. Responsible practices that earn genuine social licence reduce conflict risk and improve the stability and predictability of mineral flows from operating mines. Artisanal and small-scale miners represent a particularly underutilised opportunity: these operators are often early exploration indicators, can be integrated into formalised supply chains through professionalisation and offtake agreements, and their collaboration with large mines reduces conflict risk while boosting aggregate productivity.

    The financing model proposed — Stakeholder Prosperity Bonds, developed as a subset of the broader sustainability bond market — combines artisanal mining professionalisation, improvements to large mine operations, infrastructure development, small-scale processing facility construction and regional capacity building into a single regional investment vehicle. The approach is framed not as a cost centre but as a generator of bankable value through productivity gains, risk reduction and regional development.

  • Why Artisanal Gold Mining Struggles to Go Legal in Kazakhstan Despite Record Prices

    Why Artisanal Gold Mining Struggles to Go Legal in Kazakhstan Despite Record Prices

    Reports of arrests of so-called illegal gold prospectors have become more frequent as gold prices hover near record highs. Despite legislative changes intended to legalize artisanal mining, many prospectors continue to operate outside the formal system. In an interview with inbusiness.kz, veteran geologist Bolat Kabaziev outlined why legalization has proven far more difficult in practice than on paper.

    According to Kabaziev, the 2018 Subsoil Code was expected to unlock large-scale legal artisanal mining on designated plots approved by regional authorities and the Ministry of Industry. In reality, progress has been slow. He said artisanal gold mining remains constrained by environmental and water protection rules, as well as technical limits on production volumes, mining depth and allowable equipment.

    While the law formally introduced artisanal mining licences, Kabaziev noted that bureaucracy remains a major barrier. Lengthy approvals at regional administrations have made the process complex and time-consuming. “On paper it was legalized, but in practice obtaining a licence has become difficult and slow,” he said.

    Kabaziev also addressed the blurred line between informal prospectors and outright illegal miners. While some prospectors argue that subsoil resources belong to the people, he stressed that unauthorized mining is still a criminal offense under existing laws on subsoil use and precious metals. A deeper issue, he said, is the lack of clear oversight mechanisms once licences are issued. For example, the law caps artisanal gold production at 50 kg per year, but there is no effective system to monitor actual output or the movement of mined gold.

    Additional obstacles include long approval timelines, multiple administrative clearances, technical constraints and, in some cases, resistance from local communities. Environmental and water permits are particularly hard to obtain, especially when gold-bearing placers are located in riverbeds, where approvals are often impossible.

    Kabaziev cautioned that artisanal placer gold mining is also a high-risk business. Even on officially designated plots, prospectors must study historical geological data and consult experts before investing. “Statistics show that only a few actually earn money, but this is rarely discussed,” he said.

    He also raised concerns about weak reporting requirements. Despite dozens of artisanal licences being issued in recent years, little gold is officially surrendered or recorded. Kabaziev believes most gold is sold through informal buyers, forming a shadow market, with uncertain downstream destinations. While estimates suggest illegal artisanal mining could amount to 10–15 tonnes of gold per year, he said much of this gold likely remains within Kazakhstan, entering jewellery production or, in some cases, refineries.

    With gold prices recently exceeding $5,000 per ounce, Kabaziev acknowledged a renewed “gold rush” mentality. However, he said the phenomenon remains poorly studied. He argued that true legalization would require open dialogue between authorities, law enforcement, industry experts and the prospectors themselves to address regulatory gaps, environmental concerns and market transparency.

  • Uzbekistan Hosts Open Dialogue with Artisanal Gold Miners and Jewelry Industry Stakeholders

    Uzbekistan Hosts Open Dialogue with Artisanal Gold Miners and Jewelry Industry Stakeholders

    On 30 May 2025, the Ministry of Mining Industry and Geology of Uzbekistan held an open dialogue with entrepreneurs engaged in the extraction of precious metals through artisanal and small-scale gold mining (ASGM). The meeting aimed to address sector-specific challenges and enhance cooperation between regulators and industry participants.

    The dialogue brought together Minister of Mining Industry and Geology B. Islamov, Tax Committee Chairman Sh. Kudbiyev, Chamber of Commerce and Industry Chairman D. Vakhabov, leaders of the “Uzbekzargarsanoati” Association, representatives of gold-mining businesses, officials from the State Subsoil Use Center, and the Mining and Geology Inspection.

    Participants discussed pressing issues faced by artisanal miners and presented proposals for improving the legal and operational framework for ASGM. Emphasis was placed on creating a more supportive ecosystem for gold extraction and strengthening cooperation in the downstream jewelry production sector.

    Authorities reaffirmed their commitment to maintaining an open and ongoing dialogue between state regulators and private sector players to support the development of a transparent, productive, and sustainable precious metals industry.