Artisanal Gold Value Chain

Slavery in Artisanal Gold: Out of Sight. Out of Mind.

Modern slavery in the artisanal and small-scale gold mining (ASGM) sector is a serious global issue. It includes forced labour, child labour, debt bondage, and human trafficking, often occurring in remote, informal mining regions across Africa, Latin America, and Asia. ASGM produces 20% of the world’s gold and employs an estimated 15–20 million people, yet remains largely unregulated, leaving workers vulnerable to exploitation.

Overview of the Artisanal Gold Supply Chain

Extraction: Gold is mined using simple tools by small-scale miners or informal cooperatives.

Trading: Gold passes through local traders and middlemen, often mixed and smuggled.

Export & Refining: Gold is refined in major hubs (UAE, India, Switzerland).

Retail: Final products enter global markets, including jewelry and electronics.

Nature of Modern Slavery in the Chain

Key forms of modern slavery in ASGM include:

Forced labour: Miners coerced through debt, threats, or violence.

Child labour: Children as young as six perform hazardous tasks, including handling mercury and deep shaft mining.

Trafficking: Adults and children are trafficked to mine sites, sometimes under false promises of wages.

Sexual exploitation: Women and girls in mining regions face high risks of sexual abuse and coercion.

Miners frequently work in unsafe conditions with no contracts, withheld wages, long hours, and no access to grievance mechanisms.

Geographic Focus

Africa: In the DRC, armed groups forcibly recruit miners and children. In Mali, Burkina Faso, and Ghana, tens of thousands of children work in hazardous gold mines.

Latin America: In Venezuela’s Orinoco Mining Arc, criminal groups use violence and intimidation to control mines. Similar abuses occur in Peru, Brazil, and Colombia.

Asia: The Philippines, Indonesia, and Myanmar report extensive child labour and forced labour, often linked to poverty and informal recruitment networks.

Evidence from Reports

The Global Slavery Index flags ASGM as high risk, especially in conflict areas like the DRC and Peru.

Human Rights Watch and Free the Slaves have documented forced and child labour, including sexual slavery and torture in DRC and Venezuela.

The ILO and US Department of Labor list gold from over a dozen countries as produced with child or forced labour.

Industry and Regulatory Response

Due diligence frameworks: OECD Guidance and the LBMA Responsible Gold Guidance promote ethical sourcing.

Voluntary standards: Fairtrade and Fairmined certify select artisanal mines, though coverage is limited.

Government regulation: Laws like the US Dodd-Frank Act and EU Conflict Minerals Regulation mandate supply chain reporting. However, enforcement is often weak, and traceability remains low due to smuggling and informal trade.

Challenges in Addressing the Issue

Opaque supply chains: Gold from abusive sources is easily mixed into global markets.

Weak enforcement: Inadequate regulation and corruption hinder oversight.

Conflict and criminal control: Armed groups profit from and enforce exploitative practices.

Economic dependence: Poverty drives families to rely on child labour and unsafe mining for survival.

Recommendations and Pathways Forward

Strengthen local enforcement and prosecute traffickers and abusive employers.

Formalize artisanal mining through licensing, cooperatives, and training.

Mandate corporate due diligence in importing countries.

Improve traceability using digital tracking systems.

Invest in community development to provide alternatives to mining.

Enhance collaboration between governments, NGOs, companies, and affected communities.

Ending modern slavery in the artisanal gold sector requires global accountability and action—both at the mine site and in the boardrooms of the companies sourcing this gold.