Tuesday 11 August 2026Vol. VI
Artisanal miners working an alluvial gold site
ASGM

Formalising artisanal gold keeps failing on the same thing: working capital

Licensing schemes multiply while the financing that would make compliance survivable does not. The pattern repeats across three continents.

By Sofia Andrade

The sequence is the same everywhere. A licence costs money and time before it generates a single legal sale. Cleaner processing requires equipment before it improves recovery. Both costs land on operators who are financed week to week by the buyer they are being asked to leave.

What has actually worked

Programmes that pair a licence with an offtake agreement and a small equipment facility, so the compliance cost is amortised against a contracted sale rather than paid up front out of nothing.

What has not

Training without equipment. Equipment without maintenance. Anything that measures success in workshops attended.

Sofia Andrade
Latin America Mining Correspondent

Sofia is a Latin America mining correspondent covering permitting, community consultation and informal production in the Andean belt.