Fact Sheet : Potential Financial Mechanism for ASGM Sector

One of the most significant barriers to the development of a responsible ASGM sector is access to finance. Finance entities including banks, microfinance institutions, and other lenders do not commonly provide loans/credit/financing to the ASGM sector as the risks are often perceived to be too high and such entities do not have the expertise and experience to review ASGM loan applications or develop financial products that are tailored to the ASGM sector. On the other hand, miners’ cooperatives and organizations do not have much experience in record keeping and reporting or the preparation of loan applications, which can increase their access to conventional and new financing options.