Addressing Barriers to Formalization and Sustainability in the ASGM Sector

The planetGOLD Suriname project highlights critical challenges faced by the Artisanal and Small-scale Gold Mining (ASGM) sector, particularly the lack of access to finance, technical capacity, and coordinated policy responses. These barriers continue to limit the sector’s transition to safer, more sustainable practices and hinder long-term socio-economic development in mining communities.

Despite the relatively high value of gold, ASGM activities remain undercapitalized. Miners receive far below international market prices due to long value chains involving multiple intermediaries. Without access to affordable credit or banking services, miners are unable to invest in cleaner, mercury-free technologies. This financial exclusion also restricts the ability to support social services such as education, healthcare, and environmental conservation.

The mobility of miners—frequently moving between informal sites or across borders in search of new opportunities—adds complexity to efforts to formalize the sector. The absence of business registration, lack of financial records, and insufficient understanding of fiscal regulations further reinforce the perception of ASGM as a high-risk sector among commercial lenders.

Low technical capacity remains another major constraint. Many miners lack access to training and appropriate technology. There is limited awareness about mercury-free alternatives, despite their benefits in improving gold recovery and reducing environmental damage. Moreover, the lack of national expertise and resources limits the government’s ability to monitor and manage mining operations effectively.

A broader regional and systemic approach is essential. Mercury use and cross-border migration require cooperation beyond national borders. Issues of land tenure, Indigenous and tribal rights, and the absence of inclusive legal frameworks further complicate responsible mining efforts. Meanwhile, low education levels and limited outreach mean that many miners and community members remain unaware of the dangers of mercury and the opportunities for safer practices.

The planetGOLD Suriname initiative—implemented with the support of the Ministry of Natural Resources—aims to address these root barriers by improving financial inclusion, building technical capacity, and promoting regional collaboration. Achieving formalization and sustainability in the ASGM sector will require a shared commitment from government, financial institutions, Indigenous leaders, and miners themselves.