Artisanal and Small-Scale Gold Mining: Rules and Costs

Artisanal and small-scale gold mining (ASGM) is gold mining done by individuals, families, groups or small companies with simple tools and little mechanisation, often outside the formal licence system. A 2023 peer-reviewed review reports that it takes place in more than 80 countries, employs about 15 million miners and produces up to 20% of the world’s gold (Ambio review, 2023). This page covers the scale, the places where it happens, the licence routes in four countries, the mercury rules under the Minamata Convention, and the money side for a small operator, with a calculator you can fill with your own numbers.

Artisanal and small-scale gold mining in numbers

People often say “artisanal mining” when they mean all artisanal and small-scale mining (ASM), which covers gold, gemstones, tin, tantalum and other minerals. Gold is the largest part. Three counts are used, and they measure different things, so do not add them together.

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People linked to artisanal and small-scale mining

Millions of people; the bars use different definitions and are not additive

• ASM workers, all minerals: the World Bank and Pact sector report reports that ASM employs over 44 million people across 80 countries (World Bank and Pact, May 2021).
• ASGM miners: about 15 million, of whom an estimated 4 to 5 million are women and children, with livelihoods for around 100 million people linked to the sector (Ambio review, 2023).
• Gold output: up to 20% of world production. The national action plans of 18 countries together reported 278 tonnes of ASGM gold a year, which shows how much of the activity can be counted from official plans (Ambio review, 2023).

Most of this activity is informal. Miners work without a licence, pay no royalty and sell through traders, so every figure above is an estimate with a wide range.

Where artisanal gold mining happens and who works in it

ASGM is spread across Africa, South America, Asia and the Pacific wherever gold sits in rivers, shallow gravels or narrow veins that large companies leave alone. The best-documented picture comes from the national action plans that countries file under the Minamata Convention. Five of them state what share of their ASGM gold is made with mercury, which also shows how different the countries are.

The same review notes that Zimbabwe, Uganda and Madagascar had the most mercury-intensive operations among the 18 plans it studied, while the Democratic Republic of the Congo, Nigeria, Sierra Leone and Guinea had the least (Ambio review, 2023).

Satellite and aerial imagery is now used to map where ASGM sites are and how fast they grow. A 2022 technical guidance document from the University of Geneva team describes how remote sensing can support ASGM policy, monitoring and evaluation (Giuliani et al., 2022). Licence holders can use the same kind of imagery to check for unlicensed digging on their own ground; our page on satellite-based mineral detection explains what the images can and cannot show.

Licensing and formalisation routes in four countries

Formalising means moving from untaxed, unregistered digging to a licence or registration that gives legal title to the ground and the right to sell the gold. The route differs by country, and in several of them it is open to citizens only. The table lists four cases from official or legal sources. Rules change, so confirm the current text with the regulator before you apply.

In Ghana, selling is also regulated: under the Ghana Gold Board Act (Act 1140, assented to on 2 April 2025), the Ghana Gold Board (GoldBod) is the sole buyer, seller, assayer and exporter of gold from the licensed artisanal and small-scale sector (Graphic Online, April 2025). A licence holder therefore sells through GoldBod or its authorised buyers.

Three patterns show up in these examples. First, the small-scale licence is usually reserved for citizens, so a foreign investor normally partners with a licence holder rather than holding the ground. Second, small licences are short and must be renewed, so keep the renewal date in your calendar. Third, a licence on paper is only useful if the boundary is right: before you apply, check the cadastre for overlaps with existing titles. Our guide to mining cadastre portals by country lists where to search, and the Ghana Minerals Commission licence guide goes deeper on that route.

▶ Whether a foreigner can get a small-scale mining licence in Africa, and the three routes that are open · 5:16

Mercury rules under the Minamata Convention

Mercury is used to catch fine gold: it binds to gold into an amalgam, and heating the amalgam drives the mercury off as vapour. The World Health Organization calls mercury use in ASGM particularly hazardous and says safer, non-mercury methods need to be promoted (WHO). The 2018 Global Mercury Assessment estimated that ASGM used 2,059 tonnes of mercury a year (range 897 to 3,131) and released 838 tonnes to air (range 675 to 1,000) (Ambio review, 2023). That is about 38% of global human-caused mercury emissions to air (Giuliani et al., 2022).

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Mercury use and emissions from ASGM, annual

Tonnes per year, 2018 Global Mercury Assessment range

What Article 7 requires

Article 7 of the Convention applies to every country that finds ASGM in its territory “more than insignificant”. Such a country must write a National Action Plan to reduce and, where feasible, eliminate mercury use. Each plan must set out strategies to end four practices: whole-ore amalgamation, open burning of amalgam, burning amalgam in residential areas, and cyanide leaching of tailings that still contain mercury (Ambio review, 2023). By that review’s count, 46 countries had started plan projects and 18 had submitted final plans.

The plans show where the problem lies. Open burning of amalgam was reported by 14 of the 18 countries, cyanide leaching of mercury-bearing tailings by 12 and whole-ore amalgamation by 6. The average ratio across the plans was about 1.3 units of mercury per unit of gold made. The countries also set targets: of a combined 352 tonnes of mercury used each year, they aim to cut 132.3 tonnes by 2025 and 247.7 tonnes by 2030.

What changed at the latest meeting

At the sixth meeting of the parties in Geneva (3 to 7 November 2025), delegates adopted 22 decisions. The ASGM decision recognises the need for alternative livelihoods for mining communities and asks the Secretariat to examine how supply-chain transparency and certification could reduce mercury use and hold buyers and intermediaries to account (Geneva Environment Network). For a licence holder, the practical reading is that buyers and refiners are being asked to show where their gold came from, so an operation that avoids mercury and keeps records will find it easier to sell.

The treaty binds governments, not individual miners. Your own duty comes from national law and your licence conditions, which in many countries restrict or ban mercury. See our article on mercury and gold mining for the solutions in more detail.

Recovering gold without mercury: options for small operators

The US Environmental Protection Agency states that concentration methods, used well, can eliminate or greatly reduce the need for mercury, and that many small-scale miners already reach high recovery without it (US EPA). The ore must first be crushed or milled so the gold is freed from the rock, and the milled material should be of similar grain size, which screens or sieves give you. The methods it lists are gravity-based (panning, sluicing, shaking tables, spiral and vortex concentrators, centrifuges), magnetic separation and flotation, followed by direct smelting or chemical leaching for the final recovery.

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Mercury use targets in 18 national action plans

Tonnes of mercury per year

Which method suits you depends on the ore, the gold particle size, and the water and power you have. Test a sample before buying equipment: a lab test of your own ore tells you what recovery to expect, and recovery is the single biggest number in the calculator below.

▶ The seven environmental impacts of mining, explained in plain words · 2:31

Economics for a small operator

Four numbers decide whether a small operation makes money: the grade of the ore in grams per tonne (g/t), the share of that gold you recover, the price you actually receive, and your monthly costs. The price you receive is not the headline gold price. A value-chain study in Uganda found that producer organisations in Karamoja received roughly 55% of the gold’s value measured against the London Bullion Market Association (LBMA) price, while traders in Kampala offered up to 97% once weight and purity were taken into account (Sturmes, 2018). That gap is the reason formal sales channels and clear assay certificates matter, and it is also what the Convention’s supply-chain work targets.

Use the calculator to see how a change in recovery or in the share of spot price you receive moves your monthly result. Type your own tonnes, grade, price and costs. The values shown are examples only.

What to add to the costs

• Licence fees, renewals and any surface-rights or landowner payments.
• Royalty or sales tax, charged in many places on the value of the gold you sell.
• Fuel, power, water, crushing and milling, and labour.
• Environmental permits and monitoring, where your country requires them.
• Assay and transport to the buyer.

A practical checklist before you start

1. Search the cadastre for the ground: check who holds titles around you and whether protected areas or communities overlap.
2. Confirm the licence type you are eligible for, who can hold it and how long it lasts.
3. Test your ore for grade and recovery before you invest in equipment.
4. Choose a route without mercury and train the crew in dust, water and fuel safety.
5. Agree the buyer, the assay and the payment terms in advance; keep records of each sale.
6. Plan the closure: budget for backfilling pits and keeping topsoil, because closure work costs money.

Satellite screening can help at step one and step three: it can show iron-stained or clay-altered ground and the extent of existing workings before you walk the area.

▶ How gold goes from rock to ring: found, crushed, dissolved, caught and refined · 5:27

Frequently asked questions

What is the difference between artisanal and small-scale gold mining?

Artisanal mining is manual or low-tech work, usually by individuals or families. Small-scale mining uses more equipment and often employs a crew. The Minamata Convention treats both together as ASGM.

How many people work in artisanal gold mining?

About 15 million miners work in ASGM according to a 2023 review, within a wider ASM workforce of over 44 million people reported by the World Bank and Pact in 2021.

Where does artisanal gold mining happen?

In more than 80 countries. Zimbabwe, Uganda, Mali, Guinea and Ecuador are among those whose national action plans report the share of gold made with mercury.

How much of the world’s gold comes from artisanal miners?

Up to 20% according to the Ambio review (2023).

Is artisanal gold mining legal?

It is legal when done under the licence or registration of the country, such as a small-scale licence in Ghana, a primary mining licence in Tanzania or REINFO registration in Peru. Mining without the required licence or registration is outside the law of the country concerned.

Can a foreigner hold a small-scale mining licence?

In Ghana and Tanzania the small-scale licence is reserved for citizens or for companies owned only by citizens, according to the sources in the table above. Check each country’s rule.

What does the Minamata Convention say about mercury in gold mining?

Article 7 requires each country with significant ASGM to write a National Action Plan to reduce, and where feasible eliminate, mercury use, and to end four practices, including open burning of amalgam.

Can small miners recover gold without mercury?

Yes. The US EPA describes gravity, magnetic and flotation concentration followed by smelting or leaching as routes that avoid mercury that many small-scale miners already use.

How much do artisanal miners earn from the gold they sell?

It depends on the buyer and place. A Uganda study found producer groups receiving about 55% of the LBMA value, while Kampala traders offered up to 97%.

Can a cooperative or small company hold a licence?

In Ghana a small-scale licence can be granted to a person, a group of persons, a cooperative society or a company, according to Act 703 as summarised by Mondaq.

Where can I get a quote for mapping my licence area?

Use the mining quote form, and see our guide to prospecting for gold for the field steps.