Unlocking shared value for our global energy transition: 3 proven models for LSM-ASM collaboration
Our global energy transition is driving a surge in both large-scale (LSM) and artisanal and small-scale mining (ASM) to meet the soaring demand for critical materials like lithium, cobalt, copper and rare earths. By 2050, up to 6.5 billion tonnes of these resources will be needed — despite efforts to reduce reliance through recycling and innovation — to support technologies like wind turbines, solar panels and electric vehicle batteries.
An increase in mining these critical minerals is necessary to meet the Paris Agreement’s target to limit global warming to below 2oC and ideally 1.5oC and mitigate the most severe and disproportionate impacts on the most marginalized and poor in our society. And it is not just raw materials.
Achieving the Paris Agreement’s climate goals requires not only more mining but also a 175% increase in land use for bioenergy, wind, solar and mining. A 57% rise in water demand for non-fossil fuel energy systems such as nuclear power and hydrogen production, carbon capture and storage and cleaning solar panels is also needed.
As metal prices soar, mining expands into new frontiers, and climate-pressures on land and water use increase, more communities and Indigenous peoples will be impacted as people are attracted to ASM as a vital lifeline in times of economic turmoil. The recent crisis in South Africa highlights this.
In October, hundreds of informal miners, including undocumented migrants stating they had been forced into labor by criminal gangs, became trapped after entering a disused LSM tunnel in search of gold. They remained underground for over two months, fearing arrest or deportation, with police restricting food and water access, despite a court order. After a tense stand-off, more than 150 miners were eventually rescued and, tragically, three bodies recovered.
While ASM remains a largely informal activity driven by poverty, unsupported and vilified leading it open to capture by nefarious actors, these types of LSM-ASM crises are likely to continue. The need for positive, mutually beneficial community-mining relationships is more critical than ever. This is where the Voluntary Principles on Security and Human Rights and partnerships between LSM-ASM and communities come into their own.
Established in 2000, the Voluntary Principles provide a framework for how companies and governments should conduct their security operations at mining, oil and gas sites while respecting human rights. They also support wider industry sustainability aims as global stakeholders demand more tangible community-level impact from mining companies with community engagement shifting from corporate social responsibility “nice-to-haves” to a core business imperative.
To bridge this gap, below are three examples of proven LSM-ASM and community engagement and formalization models that can be utilized in the responsible pursuit of clean energy materials.
Model 1: Direct mining support
One of the most effective partnership models is direct mining support from LSM to ASM operations. This engagement often focuses on formalizing ASM activities and can take various forms—from ceding land, licenses and geological data to ASM miners to providing technical support for safer, more productive and environmentally sound mining practices. Financial partnerships, such as equipment loans and offtake agreements, can also ensure that ASM miners can operate sustainably.
In some partnerships, ASM miners are permitted to operate on LSM concessions. This requires a strong legal framework that allows for ASM’s participation, financial sustainability and supply chain due diligence to meet global responsible mining standards. In other cases, ASM operates outside of LSM concessions. For these partnerships to work, geological deposits must be available for long-term ASM activity with data made available to enable miners to target areas and obtain financing for operations. Existing ASM pre-financing relationships must also be understood as miners are often required to sell minerals back to investors at reduced prices in return for ongoing capital investment. This approach ensures miners can engage directly with LSM, avoiding conflicts and ensuring that they are not beholden to other buyers.
The Mutoshi Cobalt Pilot from 2018 to 2020 in the Democratic Republic of Congo (DRC) exemplifies the benefits of LSM-ASM partnerships. Trafigura and Chemaf collaborated with local ASM cooperative COMIAKOL, supported by international NGO Pact, to provide site access and technical support, improving working conditions and increasing production. Key outcomes included six million work hours with no fatalities, improved working conditions for 70% of participants and enhanced roles and safety for women miners. This pilot underscores the power of LSM-ASM partnerships when all stakeholders align around responsible mining goals.
Model 2: Complementary livelihoods
Complementary livelihood models focus on creating or enhancing non-mining job opportunities for local communities. These programs aim to reduce dependence on ASM while providing stable, complementary income sources. Livelihoods must be relevant to local communities, offer comparable financial returns to ASM or have better working conditions and social acceptance.
As local economies around LSM sites grow, new opportunities for ecosystem services — such as waste collection, land restoration and renewable energy — can emerge. These activities not only reduce informal ASM but also contribute to more sustainable post-mining communities.
At Tanzania’s Geita Gold Mine, security reforms rooted in Voluntary Principles best practices have created livelihoods for over 900 people while improving LSM-ASM relationships. The community policing program has recruited and trained 957 unarmed community police across 32 localities in and around Geita Mine. The mine, in conjunction with the Tanzania Police Force, has built skills, fostered career growth, and curbed collusion and corruption. The community police, working on 12-month terms as agreed with the local community leadership forums, not only benefits the respective communities economically, but also act as the first line of defense, protecting the Geita forest reserve and reducing crime incidents in the Geita Mine area like trespassing, burglary, assault and rape, among others. This innovative model demonstrates how inclusive security can benefit both communities and mining operations.
Model 3: Community Development
Community development is a vital component of any successful LSM-ASM partnership. These initiatives can improve working conditions, health and safety standards, and gender equality within ASM communities. LSM can also support broader community development efforts, such as renewable energy access, environmental protection and education, which contribute to overall well-being and sustainability.
In Rwanda, Trinity Metals has placed community development at the core of its operations, doubling its workforce to 5,000 since consolidating three small-scale mines in 2022. With 99% of employees Rwandan and 75% in leadership roles, the company provides livelihoods while boosting tin, tungsten and tantalum production through mechanization and professionalization. Collaborating with local government, Trinity co-funds development projects, including building a bus station, providing medical insurance for 2,000 vulnerable households and supporting farmers’ cooperatives on the concession to improve nutrition and provide food to the mine’s canteen.
The company has also recruited 150 previously informal small-scale miners and unlicensed mineral traders that were operating unauthorized on their concession, integrating them into its workforce and fostering long-term community growth.
Conclusion
The collaboration between LSM and ASM has proven to be a powerful tool for fostering responsible mining practices and driving community-level impact. Practical partnership models, such as direct mining support, complementary livelihoods and community development, offer a path forward for companies looking to meet growing ESG demands while ensuring sustainable, inclusive growth.
As global demand for energy transition minerals and precious metals increases, the need for strong LSM-ASM partnerships will only become more pressing. By working together, LSM and ASM can contribute to local prosperity, national development and global sustainability, creating a mining sector that benefits everyone.
James McQuilken is director of responsible mining at Pact.