Artisanal Gold Mining in Northwestern Argentina Roberto Sarudiansky 1,2 Heinrich Kleine Hering1 6th Annual CASM Conference Antsirabe, Madagascar, November 2006 Fundación Ecoandina 1 San Martín National University 2

Bolivia Argentina Chile Salta Province Jujuy Province 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Economic and Social Indicators ARGENTINA JUJUY SANTA CATALINA RINCONADA GDP (2005) 171 billion 1,1 billion ---- GDP per capita (2005) u$s 4.446 u$s 1.804 Unemployment (2001) 9,6 % 10,8 % UBN (2001) 17,7 % 28,8 % 38,6 % 46,1 % Illiteracy (2001) 2,6 % 4,7 % 13,6 % 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Mining in Argentina Early 90’s The production value was around US$ 450 million Mainly exploitation of industrial minerals and ornamental rocks (Metals represented less than 20%) Low exploration activities Absence of a global environmental legislation 2005 The value of total mining production was US$1,9 billion (Metals represent more than 57%). Mining exports were US$1,5 billion. Mining investment was US$805 million. Mining drilling was 415.000 m Large corporations mining production represents more than 50% 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Background The Puna is a plateau in the NW of Argentina The Puna has an old mining tradition Mining (lead, zinc, silver, tin, gold and iron – small and medium size mines) was very important in Jujuy Province economy during the first half of last century There is just one important mine in operation today: Mina Aguilar (lead, zinc, silver) Mina Pirquitas (tin and silver) is restarting operation Gold extraction in rivers and placers has been an alternative productive activity Some small size private projects in gold placers started operating in the area - conflicts with local communities (agriculture vs. mining) 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Background (cont.) In the 80’s three government agencies implemented a gold program in the Puna: Provincial Mining Directorate, National Development Bank and Federal Investment Council. Activities consisted of: Technical assistance Legal assistance Purchasing of production Organization of working groups 800 “miners” participate in this program Production increased to 30 kg/year Gold price on site was market price (twice the previous price) 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Characterization of the deposits and extractive activities Artisanal gold extraction in rivers and placers with low technology and infrastructure Gold contents are about 3 to 5 g/m3 in rivers and 1 g/m3 in placers The process is “ clean”: no mercury or cyanide are needed The product may be considered as “ecologic gold” 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

6th Annual CASM Conference Antsirabe, Madagascar, November 2006

6th Annual CASM Conference Antsirabe, Madagascar, November 2006

6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Current situation The economy and infrastructure in this region is poorly developed and the government (provincial, national) is not very interested in this region Artisanal gold miners are still working but in a very small scale Artisanal gold miners have neither technical nor economic assistance from government agencies The only ongoing assistance is from Ecoandina Foundation: Assistance with equipment and organization of working groups On site purchasing of gold production Introduction of the “fair trade” concept 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Ecoandina Founded in 1999 to integrate private initiatives on environmental and social projects in the area of Puna. Projects Solar energy (cookers, pumps, room heating, etc.) Drip irrigation Water supply Ecological mining Education 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Ecologic Gold in Puna Region Proyect Objective: To improve life quality in the local communities of Santa Catalina and Rinconada Counties, Jujuy Province 5 Communities involved: Misa Rumi, Santa Catalina County Casa Colorada, Rinconada County Rinconada, Rinconada County Lagunillas de Farrallón, Santa Catalina County San Juan and Oros, Santa Catalina County 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Ecologic Gold in Puna Region Proyect - Activities To provide information to communities on ecological gold and fair trade concepts To assist gold miners on extractive methods To assist gold miners on gold marketing To register artisanal gold miners To organize working groups and assist them on efficient work organization and equipment use To establish links with fair trade organizations To develop an on site certified system for ecologic gold purchases To link the project with other regional social projects To assist local authorities and NGO’s to identify alternative sources of funds applied to development To identify possible conflicts (use of lands, water resources) and to propose solutions 6th Annual CASM Conference Antsirabe, Madagascar, November 2006

Muchas gracias Misaotra tampoko ecoan@imagine.com http://www.ecoandina.org 6th Annual CASM Conference Antsirabe, Madagascar, November 2006