Chilean artisanal mining: a gambling scenario

Abstract

One of the most characteristic aspects of artisanal mining is the lack of geological exploration. Going into production without previous exploration is here defined as a gambling scenario. The present study intended to quantify the risk associated to such gambling by analyzing the operations of an area of artisanal underground gold mining in central Chile. To quantify the risks and the probable outcomes, a risk analysis technique called Event Tree Analysis has been applied. This technique is based on the analysis of possible multiple outcomes of single events or decisions and the probability of occurrence of each. Results show that chances of negative vs. positive revenue are 83% vs. 17%, with an order of magnitude of difference between worst-case and bestcase scenarios.

Mapping the Reality of Hg-Free Artisanal Small-Scale Gold Mining

“…This field study collected sample data from the mining area of Chancón (see Figure 2). This area has already been the focus of previous small-scale mining studies [30,38].…”

“…The material is processed in controlled and clean plants (therefore, no Hg or other pollutants are involved) and sold by ENAMI itself. In 2020, 1557 small miners were registered to sell their minerals to this agency [38].…”

“…In other cases, advances of between 30 and 50 m have been observed without "reaching" the vein. The associated costs of advances per meter are documented by Seccatore et al [30], and the chances of finding a vein and the associated economical risk of losing the investment for tunnel advance in the case of "missing" the vein are extensively documented, calculated and discussed by Espinoza et al [38].…”

Does formalization make a difference in artisanal and small-scale gold mining (ASGM)? Insights from the Philippines

“…Not only does it provide them with a sense of control over the fruits of their own work and the impression of being paid a fair share, but it also keeps alive the dream of 'striking it rich'. This is a common phenomenon, which has been described in the ASGM literature as 'gambling' (Espinoza et al, 2020;Geenen, 2018). While the system of the privilege share in place at MALP attempts to mirror this practice, it is not transparent, as ore is processed outside the mining area.…”

Peculiarities of drilling and blasting in underground small-scale mines

“…The mine in Chile studied for this research is located in the 55 th mining district of Chancón, near the city of Rancagua, in the VI region, central Chile. Details regarding the Chancón district and its mining culture are described thoroughly in Espinoza et al, 2020. In Chancón, along the years, the miners developed a very peculiar drilling and blasting pattern. A quite unusual diagram was observed at the early stages of the project, and it can be seen in Figure 1.…”