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An application of economic growth pole to improving the environmental and socio-economic aspects of artisanal… Compaore, Ivan A. 2017

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  An application of economic growth pole to improving the environmental and socio-economic aspects of artisanal gold mining in Burkina Faso by Ivan A. COMPAORE   A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF APPLIED SCIENCE in The Faculty of Graduate and Postdoctoral Studies  (Mining Engineering)     THE UNIVERSITY OF BRITISH COLUMBIA (Vancouver)  October 2017  © Ivan A. Compaore, 2017   ii Abstract Artisanal and small-scale mining (ASM) is a poverty driven activity in many developing countries, associated with environmental and social degradation such as acid rock drainage, soil erosion, child labour, gambling, prostitution, alcoholism and social instability due to worker migration (Veiga et al., 2014a). Although ASM is an informal and illegal activity, it has been tolerated in developing countries because of its significant economic role in poverty reduction. Indeed, it has been estimated that about 100 million people across developing countries depend on artisanal mining for their livelihoods (World Bank, 2013) and Burkina Faso (located in West Africa) as a developing country is not spared the environment and socio-economic impacts related to ASM.  The objectives of the model developed in this study are to mitigate the environmental impacts of artisanal mining while enhancing its socio-economic benefits. The developed model is based on the theory of an economic growth pole (EGP) and its concepts of inter-industry linkage, external economies, and agglomeration. This approach has found success in better and sustainable organization of the agricultural sector in Burkina Faso, where most of the small farmers were previously left alone to produce food without tools, proper regulation, finance and land titles. In this study, the economic and environmental factors affecting artisanal mining have been defined and analysed in order to apply them to the EGP model.  The starting EGP model suggests that first a clean processing plant is required to generate sustainable growth, followed by a working organization to centralize activities and ensure better growth distribution for stakeholders (investors, miners, national authorities). As a theoretical approach toward the artisanal mining sector, there are no previous cases of the application of an economic growth pole. Therefore, this study discusses the feasibility of the model and its ability to tackle the impacts of artisanal mining. Importantly, the model tries to tackle the issues in artisanal mining by removing the financial restrictions for implementation of technological services at artisanal mining sites, and by providing a working organization for better distribution of revenues from technological service and for controlling the impacts of processing on the environment and health.    iii Lay Summary This thesis examines the artisanal mining impacts in Burkina Faso and suggests a model application of the concept of economic growth pole to face the important issues related to artisanal mining. Specifically, the key goal in this research is to develop an organizational working model around a suggested processing plant to respond to the environmental and socio-economic concerns of artisanal mining.  As contribution to the field of research, the conducted work contributes to highlight the importance of the management and organizational frameworks besides processing technologies to improve distributed revenues, sustainability and control of artisanal mining activities.      iv Preface The initial idea for this thesis came from a discussion with Dr Yassiah Bissiri and Dr Scott Dunbar, on the main environmental and socio-economic issues of the mining sector in my home country Burkina Faso.   Although I was engaged in researching and writing this thesis, many contributions have been made to this work. First, I have conducted the research for the literature review of the EGP and specific artisanal mining operations in Burkina Faso, while Dr Marcello Veiga provided me with the literature on artisanal and small-scale mining experiences worldwide. I have also designed the suggested model of EGP for artisanal mining, under the guidance of my supervisor Dr Scott Dunbar. Finally, I have conducted the economic simulation and analysis.     v Table of Contents ABSTRACT ................................................................................................................................................................ II LAY SUMMARY ....................................................................................................................................................... III PREFACE .................................................................................................................................................................. IV LIST OF TABLES ...................................................................................................................................................... VIII LIST OF FIGURES ...................................................................................................................................................... IX LIST OF ABBREVIATIONS .......................................................................................................................................... X ACKNOWLEDGEMENTS ........................................................................................................................................... XI CHAPTER 1 INTRODUCTION................................................................................................................................. 1 1.1 BACKGROUND ................................................................................................................................................ 1 1.2 PROBLEM STATEMENT ...................................................................................................................................... 5 1.3 OBJECTIVES OF THE THESIS ................................................................................................................................. 6 1.4 METHODOLOGY .............................................................................................................................................. 6 1.5 STRUCTURE OF THE THESIS ................................................................................................................................. 6 CHAPTER 2 LITERATURE REVIEW OF THE ARTISANAL MINING SECTOR AND THE ECONOMIC GROWTH POLE THEORY  .......................................................................................................................................................... 7 2.1 INTRODUCTION ............................................................................................................................................... 7 2.2 REVIEW OF THE COMMONLY PROPOSED SOLUTIONS IN BURKINA FASO ......................................................................... 8 2.2.1 Legal enforcement ............................................................................................................................. 8 2.2.2 Technical measures of exploitation .................................................................................................... 9 2.2.3 Security, health and safety measures ............................................................................................... 10 2.3 REVIEW OF THE THEORY OF ECONOMIC GROWTH POLE ........................................................................................... 10 2.3.1 Definition and origin of economic growth pole ................................................................................ 10 2.3.2 Factors developed by growth pole ................................................................................................... 12 2.4 THE EGP OF BAGRÉ IN BURKINA FASO ............................................................................................................... 13 2.4.1 Implementation and description of the Bagré pole .......................................................................... 13 2.4.2 Lessons learned from Bagré pole ..................................................................................................... 16 2.5 CONCLUSION ................................................................................................................................................ 16 CHAPTER 3 PRINCIPAL INADEQUACIES IN RELATION TO ARTISANAL MINING ACTIVITIES IN BURKINA FASO ... 19 3.1 INTRODUCTION ............................................................................................................................................. 19 3.2 TECHNICAL PARAMETERS ................................................................................................................................. 19   vi 3.2.1 Comminution ................................................................................................................................... 19 3.2.2 Recovery by mercury ....................................................................................................................... 21 3.2.3 Recovery by Cyanide ........................................................................................................................ 22 3.3 INFRASTRUCTURAL AND ORGANIZATIONAL PARAMETERS ......................................................................................... 22 3.3.1 Waste management ........................................................................................................................ 22 3.3.2 Water management ........................................................................................................................ 24 3.3.3 Energy source .................................................................................................................................. 24 3.3.4 Planning .......................................................................................................................................... 24 3.3.5 Regulations and security .................................................................................................................. 25 3.4 EDUCATIONAL PARAMETERS ............................................................................................................................. 26 3.5 FINANCING PARAMETERS ................................................................................................................................. 26 3.6 CONCLUSION ................................................................................................................................................ 26 CHAPTER 4 PROPOSED ECONOMIC GROWTH POLE MODEL FOR ARTISANAL MINING ..................................... 27 4.1 INTRODUCTION ............................................................................................................................................. 27 4.2 VISION OF THE MODEL ................................................................................................................................... 28 4.2.1 Approach to the model .................................................................................................................... 28 4.2.2 Targeted beneficiaries ..................................................................................................................... 29 4.3 DESCRIPTION OF THE MODEL ............................................................................................................................ 29 4.3.1 Mechanism of the model ................................................................................................................. 29 4.3.2 Process of the model ....................................................................................................................... 31 4.3.3 Targeted output .............................................................................................................................. 34 4.4 IMPLEMENTATION AND RISKS OF THE MODEL ........................................................................................................ 35 4.5 CONCLUSION ................................................................................................................................................ 36 CHAPTER 5 WORKABILITY OF THE ECONOMIC GROWTH POLE MODEL IN ARTISANAL MINING ....................... 38 5.1 INTRODUCTION ............................................................................................................................................. 38 5.2 FEASIBILITY AND ECONOMIC PERFORMANCE OF THE MODEL ..................................................................................... 38 5.2.1 Brief review of the geology and gold mineralization in Burkina Faso ................................................ 38 5.2.2 Model scenarios .............................................................................................................................. 40 5.2.3 Technical indicators of the model simulation ................................................................................... 48 5.2.4 Economic performance of the model ............................................................................................... 54 5.3 ECONOMIC BENEFITS FOR THE ATTRACTIVENESS OF STAKEHOLDERS ............................................................................ 63 5.4 ABILITY TO RESPOND TO ENVIRONMENTAL AND SOCIO-ECONOMIC IMPACTS................................................................. 65 5.4.1 Technical parameters ...................................................................................................................... 65 5.4.2 Infrastructural and organizational parameters ................................................................................ 66 5.4.3 Educational parameters .................................................................................................................. 67   vii 5.4.4 Financial parameters ....................................................................................................................... 67 5.5 CONCLUSION ................................................................................................................................................ 67 CHAPTER 6 CONCLUSION AND RECOMMENDATIONS ....................................................................................... 69 6.1 MAJOR RESEARCH FINDINGS AND SUMMARY ........................................................................................................ 69 6.2 FURTHER STUDIES .......................................................................................................................................... 70 REFERENCES ........................................................................................................................................................... 72 APPENDIX A  PRODUCTION SCHEDULE FOR SCENARIO A ............................................................................... 77 APPENDIX B  PRODUCTION SCHEDULE FOR SCENARIO B ............................................................................... 78 APPENDIX C  PRODUCTION SCHEDULE FOR SCENARIO C ............................................................................... 79 APPENDIX D  PRODUCTION SCHEDULE FOR THE LABORATORY ...................................................................... 80 APPENDIX E  ECONOMIC SIMULATION FOR SCENARIO A ............................................................................... 81 APPENDIX F  ECONOMIC SIMULATION FOR SCENARIO B ............................................................................... 82 APPENDIX G  ECONOMIC SIMULATION FOR SCENARIO C ............................................................................... 83 APPENDIX H  ECONOMIC SIMULATION FOR THE LABORATORY ..................................................................... 84      viii List of Tables Table 1: Mass balance for gravity concentration of the coarse gold ........................................................................ 43 Table 2: Mass balance for gravity concentration of the coarse and fine gold .......................................................... 46 Table 3: Preliminary assumptions for the simulation of the scenarios ..................................................................... 53 Table 4: Financial parameters ................................................................................................................................. 54 Table 5: Specific costs of the laboratory tests ......................................................................................................... 55 Table 6: Capital costs for the processing plant ........................................................................................................ 55 Table 7: Capital costs for the laboratory ................................................................................................................. 56 Table 8: Operating costs of the different scenarios of the plant .............................................................................. 57 Table 9: Laboratory operating costs ........................................................................................................................ 59 Table 10: Specific costs of the reagents .................................................................................................................. 60 Table 11: Financial summary .................................................................................................................................. 60 Table 12: Simulation results at different gold grade (9 g/t and 10 g/t) .................................................................... 62 Table 13: Estimation of the artisanal miners’ savings by using the model ............................................................... 65     ix List of Figures Figure 1: Geographic map of artisanal mining activities around the greenstone belt ................................................ 3 Figure 2: Retort model .............................................................................................................................................. 9 Figure 3: Growth pole’s extension and its cluster concept (Rodrigue, 1998-2016) .................................................. 12 Figure 4: Model of growth pole as system of development factors (Wojnicka-Sycz, 2013) ...................................... 13 Figure 5: Identified growth poles in Burkina Faso ................................................................................................... 14 Figure 6: Crushing phase (Ngo Minyem, 2012) ........................................................................................................ 20 Figure 7: Grinding phase ......................................................................................................................................... 20 Figure 8: Sluice box ................................................................................................................................................. 21 Figure 9: Mercury amalgamation and burning (Ngo Minyem, 2012) ....................................................................... 21 Figure 10: Cyanidation (Ngo Minyem, 2012) ........................................................................................................... 22 Figure 11: Plastic waste on site ............................................................................................................................... 23 Figure 12: Garbage dump on site (Sorgho, 2012) .................................................................................................... 23 Figure 13: Hydrocarbon infiltration (Sorgho, 2012) ................................................................................................. 23 Figure 14: Degradation of abandoned soil (Ngo Minyem, 2012) ............................................................................. 25 Figure 15: Unsafe mines’ habitat with risk of fire and flood .................................................................................... 25 Figure 16: Schematic of the model ......................................................................................................................... 31 Figure 17: Processing flowchart of scenario A ......................................................................................................... 42 Figure 18: Processing flowchart of scenario B ......................................................................................................... 45 Figure 19: Processing flowchart of scenario C ......................................................................................................... 47 Figure 20: Laboratory test procedure ..................................................................................................................... 50      x List of Abbreviations 2iE   International Institute for Water and Environmental Engineering AIDS   Acquired immunodeficiency syndrome ASM   Artisanal and small-scale mining BRGM  Bureau of Geology and Mineral exploration of France BUMIGEB  Mines and Geology Office of Burkina CFA   West African Franc CNSS   Contribution for social security CONEDD  National Council for Environment and Sustainable Development CWP   Centralized washing plant DA   Development authority DEMAS  Direction of Artisanal Mining and Small-scale Mining Exploitation DGMG  General Direction of Mines, Geology and Quarry ECA   Economic Commission for Africa EGP   Economic growth pole GPC   Gold purchase counters GRG   Gravity recoverable gold G&A   General and Administrative expense Hg   Mercury HIV   Human Immunodeficiency Virus ICP-OES  Inductively coupled plasma optical emission spectrometry IPE   Poverty Environment Initiative IRVM   Tax on dividend MASSIN  Ministry of Social Action and National Solidarity MECV   Ministry of Environment and Living Conditions MEF   Ministry of Economy and Finance MeHg   Methylmercury MMCE  Ministry of Mining, Quarry and Energy MMSD  Mining, Minerals and Sustainable Development NaCN   Sodium cyanide NPV   Net present value RENAPEE  National Network for the Promotion of Environmental Evaluations RI   Respiratory infections SONABHY  National Company for Oil and Gas STI   Sexually transmitted infections TMF   Tailing Management Facility TPA   Patronal Tax of Apprenticeship UNICEF  United Nations Children's Emergency Fund UO   University of Ouagadougou VAT   Value added tax WAD   Weak acid dissociable    xi Acknowledgements It is with pleasure and great honor that I would like to thank the many people who I have helped me elaborate this thesis.  First at all, I have to thank my research supervisor Dr Scott Dunbar of the Department of Mining Engineering, for his constant help and total support. Dr Dunbar has dedicated me a lot of his time, observations and advises that have helped me going throughout the process of accomplishing my thesis.  I also would like to thank Dr Marcello Veiga from the Department of Mining Engineering as well, whose knowledge and passion for the subject of artisanal and small-scale mining have inspired me to have my topic related to artisanal mining. In addition to the strong impression he made on me, his enthusiastic teaching style for the topic has left me good memories of his class. Getting through my dissertation has required me more than academic support and I have many people to thank for their support and their time. First, I must thank Halilou Bissiri for constantly providing me required information and data from artisanal mining sites in Burkina Faso. Then, I would like to thank Lamoussa Salif Kaboré, former Ministry of Mining and Energy in Burkina Faso and his staff for having provided me all the studies and data at the governmental level that were related to my topic and scope of research.  Finally and most importantly, none of this work could have happened without my family. My uncle Dr Yassiah Bissiri, who has first inspired me to go into the mining business and then he mentored and trained me in order for me to succeed. To my parents and my sisters, I am forever grateful for their unconditional love and support.         1 Chapter 1 Introduction 1.1 Background Although, there is not a common definition of artisanal and small-scale mining (ASM), it generally refers to practiced mining activities by individuals, groups, families or cooperatives, with minimal equipment in the informal (illegal) sector (Hentschel et al., 2002). Based on definitions of ASM activities by several countries, the following criteria of categorization have been selected by Chaparro (2000) without excluding their simultaneous usage: production volume; number of people per productive unit; intensity (volume) of capital employed; labour productivity; size of mine claim; quantity of reserves; sales volume; operational continuity; operational reliability; duration of the mining cycle.  Veiga et al. (2014a) highlighted that the term “artisanal mining” is not necessarily the same as “small-scale mining” as the latter term can refer to sophisticated and legal small operations. This is one of the main sources of misunderstanding in the legislation of developing countries. In Burkina Faso (located in West Africa), artisanal mining is precisely defined by the mining code (2015) as “any operation which consists of extracting and concentrating mineral substances to obtain marketable products by using traditional or manual methods and procedures”. Small-scale mining is defined as “small mines equipped with a minimum number of fixed installations using semi-industrial or industrial methods based on a primary discovery of a deposit  with a capacity not exceeding the treatment of 100 tonnes of ore per day” (Gueye, 2001).  Regulation of artisanal, and also small-scale, mining activities in Burkina Faso is defined in the mining code (2015) and essentially concerns the conditions for delivery of artisanal mining licenses and the obligations of recipients. Thus, artisanal or small-scale licenses of a maximum surface area of 100 ha (square or rectangle) are given to citizens, cooperatives or companies for two years, renewable twice, after confirmation that obligations have been fulfilled and that the license zone has not been requested for industrial mining, which requires a permit. Licenses do not prevent exploration from being carried out in the area and the mining code envisages compensation for the licensees in case the license is not renewed, due to a title of the same area being granted to industrial miners. Moreover, the holder of an artisanal mining license must comply with standard regulations relating to health and safety and preservation of the   2 environment, which could include reparation costs. Finally, taxation regulation concerns the holder of an artisanal mining license and the gold purchase counters (GPC). Fixed rights taxation on the holders of artisanal license is $712 for granted, renewed or transferred license (considering an average foreign exchange rate of US $0.00178 for one CFA). Fixed rights taxation on small-scale mining licenses is $1780 for granted license, $3560 for renewed license and $3560 for transferred license. Proportional rights taxation of the holder of an artisanal or small-scale license is about $53.4 per km2 per year. The GPC are governed by the same regulations as non-government commercial ventures and customs regulations with a minimum required export of 200 kg of gold (in nuggets) and a required quarterly basis report to the Minister of Mining. Agreement to purchase gold is delivered by the Minister of Mining to any individual interested in gold marketing activities and costs $8,900 for approval tax.  The artisanal and small-scale gold mining sector in Burkina Faso is estimated to have a total of about 300 sites, with 241 sites for artisanal, and 59 for small-scale mining. These are sites with exploitation licenses, according to the General Direction of Mines, Geology and Quarry (DGMG). The gold production from artisanal mining was officially reported in 2008 as 535 kg but the real estimated production was about 5,351 kg, considering that 90% of the gold produced in the sector is undeclared. Five to ten new sites have been recorded each year during the last decade, with 97.5% of the licensed sites having an area between 100 and 126 ha (sba-Ecosys-CEDRES, 2011). Figure 1 provides an overview of the distribution of artisanal mining sites in the national territory.   3  Figure 1: Geographic map of artisanal mining activities around the greenstone belt (DGMG, 2012)   Artisanal mining is usually associated with environmental and social degradation, such as acid rock drainage, soil erosion, child labour, gambling, prostitution, alcoholism and social instability due to worker migration (Veiga et al., 2014a).   Specifically, the impacts to soil in Burkina Faso include erosion, loss of fertility, pollution by liquid and solid wastes (plastic bags, batteries and used clothes) and contamination by noxious substances. There were approximately 216,583 tonnes of tailings generated in 2008 from artisanal mining activities, which were composed of detergent, oil, cyanide, acids, mercury and other heavy metals leached during gold recovery. Those tailings were discharged throughout all of the drainages, before being further disseminated by wind and erosion (sba-Ecosys-CEDRES, 2011). Deforestation occurs due to abusive uprooting of trees to retain mine walls, favoring erosion with one mine requiring about 500 trees for its retaining structures. At Gombeledougou site for example, the gazetted forest of Mou has become endangered because of the ineffective monitoring of such uprooting (Ngo Minyem, 2012).    4 Air is polluted by dust from the grinding step (most operations are dry-grinding), by smoke and gas emission from mills, motor-pumps and motors, by mercury vapors during amalgam burning and by cyanide vapors during decantation of the cyanidation pond.  Water impacts include the depletion of water, destruction of river banks, and surface and ground water pollution. At the Gombeledougou site for instance, the utilization of motor-pumps has significantly contributed to reductions in the level of ground water, with approximately 200 liters of water required to wash a 50 kg bag of ground ore and 800 liters required for each cyanidation pond (Ngo Minyem, 2012). According to sba-Ecosys-CEDRES (2011), the global water consumption of ASM activities in 2008 was estimated to be 637,023 m3. Water pollution is caused by the discharge of used batteries in the pits, the discharge of oils, hydrocarbons and chemicals (cyanide, acids, mercury and other heavy metals), all of which leach chemicals into surface or groundwater resources. According to sba-Ecosys-CEDRES (2011), about 5,350 kg of mercury was used in the country in 2008 alone.  As for health impacts, the activity itself results in traumatic injuries by shocks and collisions, with 7.6% of miners in the Fofora site frequently suffering traumatic injuries. Respiratory infection also occurs due to viruses like pneumonia, with 35.1% of miners in the Fofora site frequently suffering respiratory infections (Sawadogo, 2011). Moreover, between the years 2000 and 2010, 146 artisanal miners have been reportedly killed due to collapses on site, making artisanal mining the riskiest economic activity in the country (sba-Ecosys-CEDRES, 2011). Diseases from the precarious living conditions on ASM sites include malaria, due to the unsanitary water stagnation, with 18.3% of artisanal miners in the Fofora site frequently suffering from malaria. In addition, diseases from the precarious living conditions include digestive illnesses like diarrhea, gastritis and ulcers, caused by bacteria, viruses and parasites in the drinking water, with 7.6% of artisanal miners at the Fofora site frequently suffering from such digestive illnesses. As for behavioural-related diseases, the most frequently sexually transmitted infections (STI) are gonococcal infections and chancroid, according to the medical health records center of Kampti that reported an increase in patients affected by STIs from 230 in 2005 (the first year of artisanal mining activities in the region) to 620 in 2006 (Sawadogo, 2011).    5 In Burkina Faso, the mining boom of the late 90’s has seen a near exponential growth of artisanal mining activities around the country, which has contributed, besides the environmental issues, to the significant deterioration of life conditions of local populations where these activities take place. Indeed, 70 licenses were granted in 2003 for artisanal or small-scale mining activities whereas 241 were granted in 2008 according to the DGMG. The impacts of artisanal mining activities have been so severe that the National Network for the Promotion of Environmental Evaluations in Burkina Faso (RENAPEE) and some civil society groups have called for artisanal mining to be banned and labelled as a “wound for the country”.  1.2 Problem Statement Burkina Faso is a very poor country with a poverty rate in 2003 of 52.3% in rural areas, according to a national institute of statistics and demography. People who embark in artisanal mining do it out of desperation in order to provide food and medicine for their families. In total, 700,000 people work directly at ASM sites and approximately 518,495 people living within a radius of 40 km around those sites benefit from a daily mean income of 7 cents US. Moreover, while only 42% of the mining actors, which is approximately 300,000 people, have an annual mean revenue higher than the poverty line of US $147, the other remaining 58% contributes to reduce inequalities in rural areas (sba-Ecosys-CEDRES, 2011).  Even the World Bank (2003) recognized that artisanal gold mining contributed significantly in reducing poverty in some cases by stating that “about 100 million people – workers and their families - depend on artisanal mining compared to about 7 million people worldwide in industrial mining”. Moreover, artisanal mining has shown significance in helping to promote rural development, according to the World Bank. “Research has shown how artisanal mining assists rural households in building more dynamic and resilient livelihood strategies portfolios by, for instance, ‘dovetailing’ artisanal mining and farming economies. Further, it is a stimulus for trade and subsidiary business development around mine sites just as evidence in industrial or larger-scale mining operations” (World Bank, 2013).  In light of all the above, should the government go ahead and do what certain groups want: shutdown all artisanal mining activities and implement a law forbidding such activities in the country?   6  1.3 Objectives of the thesis The objective of this work is to suggest an application of the economic growth pole (EGP) concept to help mitigate the environmental impacts of artisanal mining in Burkina Faso, while enhancing the positive socio-economic benefits. The proposed method can help governments better regulate this important sector of the country’s economy.  1.4 Methodology The methodology of this work consists of three parts:  Documentation of several cases of artisanal gold mining activities in Burkina Faso, together with associated negative environmental impacts and positive socio-economic benefits in the communities where the activities occurred.  Analyses of the barriers to propose an economic growth pole model.  Economic simulation and analysis of the model.  1.5 Structure of the thesis Chapter 1 is the introduction where the justification and division of the thesis is presented. Chapter 2 is the literature review presenting first the solutions that have been considered so far at governmental and academic level and then the theory of economic growth pole. Chapter 3 gathers parameters of significance that create the issues in artisanal mining. Chapter 4 introduces and describes the suggested model of economic growth pole to be applied to artisanal mining. Chapter 5 simulates the model and discusses its applicability and workability.  Chapter 6 concludes this work and proposes recommendations for future work, on helping artisanal mining to become more attractive and sustainable.      7 Chapter 2 Literature review of the artisanal mining sector and the economic growth pole theory 2.1 Introduction Rather than shutting down all the artisanal mining sites, the solutions which have been studied so far, at the governmental and academic level, to alleviate the negative impacts of artisanal mining should be considered. Indeed, many study reports, obtained from the governmental and public services, namely the General Direction of Mines, Geology and Quarry (DGMG), the Mines and Geology Office of Burkina (BUMIGEB) and the Direction of Artisanal Mining and Small-Scale Mining Exploitation (DEMAS), have perfectly described the different impacts related to artisanal mining in Burkina Faso through field surveys, records from medical health centers and water and soil testing. However, the solutions and recommendations proposed (formalization, use of mercury capture systems, etc.) do not deal with many of the issues related to artisanal mining, as demonstrated by the failure of these recommendations to tackle the issues in many places worldwide. At the academic level, the different studies from the University of Ouagadougou (UO) and the International Institute for Water and Environmental Engineering (2iE) also show the same limitation in terms of suggested solutions. Specifically, the reviewed academic studies report on ASM impacts at the Fofora site in the province of Poni (Sawadogo, 2011); Gombeledougou site in the municipality of Kampti (Ngo Minyem, 2012); Sangoulanti site in the municipality of Kampti (Kahitouo, 2012); Mankarga site in the municipality of Boudry in the Ganzourgou‘s province (Sorgho, 2012); and Zougnazagmligne site in the rural district of Bouroum in the Namentenga’s province (Roamba, 2014).  The purpose of this literature review is to introduce the theory of the EGP as a possible solution to mitigate the impacts related to artisanal mining. From this perspective, the literature review goes first through the proposed solutions that have been considered so far at the governmental and academic level. Then, it defines the economic growth pole theory and the specific EGP of Bagré pole in Burkina Faso, as a basis for the model developed in this thesis. Finally, the literature review concludes by analysing the limitations of the suggested solutions by experts and academics in Burkina Faso, with the purpose of responding to those limitations in the EGP model.    8 2.2 Review of the commonly proposed solutions in Burkina Faso 2.2.1 Legal enforcement The most common recommendations concerning law enforcement are formalization and prohibition of dangerous chemical products. Indeed, sba-Ecosys-CEDRES (2011), Sorgho (2012) and Roamba (2014) have recommended formalization of the artisanal mining sector to facilitate taxation and monitoring of the activity. Specifically, Sorgho (2012) has recommended enforcing the conditions for acquisition of artisanal mining licenses, which do not determine the environmental requirements of the activity. For Sba-Ecosys-CEDRES (2011) and Roamba (2014), an institutional framework for dangerous chemicals management in artisanal mining has to be implemented and the border has to be reinforced in order to control chemical products crossing into the country.  Moreover, the grouping of artisanal miners in association or cooperative to facilitate certification into a trading label has been suggested by sba-Ecosys-CEDRES (2011) and Ngo Minyem (2012), as a strategy of sustainable development.  Sawadogo (2011) and Kahitouo (2012) have recommended to decentralize authority of artisanal gold exploitation to municipalities for better control of the ASM activity and local community involvement.  Concerning child labor, Yaro (2011) suggested sensitization of artisanal mining actors as a prevention measure. Yaro (2011) recommended also a governmental policy of support and social welfare through school infrastructures and training centers. As far as Roamba (2014) is concerned, child labour on artisanal mining site has to be forbidden and strictly controlled.  Finally, Sawadogo (2011) has strongly recommended the implementation of a governmental facility in artisanal mining sites to provide technical support to miners. According to Sawadogo (2011), this facility could be the unique gold trading post on sites for gold exportation and allow strict control for protection of the environment.    9 2.2.2 Technical measures of exploitation On the technical level, Sawadogo (2011), sba-Ecosys-CEDRES (2011), Kahitouo (2012) and Ngo Minyem (2012) have recommended to sensitize on the usage of retorts during burning of mercury amalgam. Indeed, retorts can recover 95% of the used mercury and avoid reject of this used mercury (vapor) in the environment. As shown in Figure 2, a retort can be built with  water plumbing connections (Veiga et al., 1995) in which the mercury vapor goes through the tube to be condense in a cold chamber (represented by the bucket of water on Figure 2).   Source : Veiga et al. 1995      Source : Ngo Minyem, 2012 Figure 2: Retort model  Kahitouo (2012) and Ngo Minyem (2012) have also recommended promotion of extraction methods without mercury such as chlorination, which consists of washing the ground ore with hydrochloric acid and chlorine to dissolve the gold particles. The filtrate obtained is then treated by sodium nitrate, zinc or ferrous sulfate to precipitate gold (Ngo minyem, 2012).  Popularization of rehabilitation techniques such as reforestation has also been developed as a potential solution by Ngo minyem (2012) and Sawadogo (2011).  Finally, sba-Ecosys-CEDRES (2011) and Ouedraogo (2013) have recommended training artisanal miners in a technical, environmental, administrative, and financial management framework; and assist artisanal miners to receive micro-credits.    10 2.2.3 Security, health and safety measures Several authors as Kahitouo (2012), Ngo minyem (2012), Ouedraogo (2013), Roamba (2014) and Sawadogo (2011) have recommended to sensitize artisanal miners on the best practices of chemical usage and the use of protective equipment. They have also recommended installation of garbage cans and sanitization system for wastewaters on sites. For Ngo Minyem (2012) and Roamba (2014), the collection of household refuse can be used for traditional composting for instance.   Finally, Sawadogo (2011) has recommended to reinforce the medical centers on site to have better follow up of patients and disease evolution on site.  2.3 Review of the theory of economic growth pole 2.3.1 Definition and origin of economic growth pole There are many definitions from various theorists of economic growth poles (EGP). According to the Dictionary of Human Geography (Gregory et al, 2009, p. 339), EGP is defined as follow: “A dynamic and highly integrated set of industries, often induced by the STATE, organized around a propulsive leading sector or industry. EGP are intended to generate rapid growth, and to disseminate this through spillover and MULTIPLIER effects in the rest of the ECONOMY.”  The concept of economic growth poles was introduced in 1949 by Francois Perroux, who considered that “growth does not appear everywhere at the same time; it manifests itself in points or 'poles' of growth, with variable intensities; it spreads by different channels with variable terminal effects for the economy as a whole” (Perroux, 1955). In fact, Francois Perroux has considered three key notions to the concept of EGP, which are the notion of external economies, the notion of agglomeration and the notion of inter-industry linkages.  The inter-industry linkage, derived by Perroux from Schumpeter’s theories on the role of innovations and big business, refers to the leading industry inducing the phenomena of growth. This inter-industry linkage can be backward when production in one industry encourages growth of the industry supplying it, or forward when the availability of the output of an industry makes possible development of industries using that output. Thus, quick growth is induced by the advantages of economies in investment expenditure, proximity to markets and supplies, larger   11 and more diversified labour markets, rapid diffusion of technological innovation and the benefits of specialization and the organization of common managerial and infrastructure facilities (Wojnicka-Sycz, 2013).  External economies refer to a change in the output of one industry that affects costs in other firms. Propulsive industries contribute to the prosperity of all the surrounding firms through increased flows between suppliers and customers and contribute also to an increase of activity in the tertiary sectors because of the new income they generate (Wojnicka-Sycz, 2013). Thus, local trade and business not even directly associated with the growth pole can experience high demand induced by better resources and wages in the region (Gantsho, 2008).  Agglomeration refers to the idea that the generated innovations and knowledge by the growth pole spread among regions from one locality to its neighbors.  Figure 3 shows the EGP expansion as terminal flow and its cluster concept by Rodrigue (1998-2016). Figure 3A shows the initial growth pole creation and its agglomeration due to cluster people migrating nearer. Figure 3B shows the creation of a secondary growth pole due to the primary pole, which can connect with the primary terminal and grow as the primary growth pole (Sadaria, 2014).   12   Figure 3: Growth pole’s extension and its cluster concept (Rodrigue, 1998-2016)  2.3.2 Factors developed by growth pole As mentioned by Wojnicka-Sycz (2013), varied theories of economic growth and development have selected as interdependent development factors, diverse forms of capital:  The natural capital refers to natural resources, human resources (life expectancy), geographical location and environment.  The physical capital refers to public and private investment on the accumulation of assets in companies and public infrastructures such as transport and telecommunications infrastructure.  The financial capital refers to the availability of funds resulting from domestic or foreign demand, foreign aid or from financial institutions.  The socio-economic capital refers to interaction and its derived results between small and medium-sized companies, labour market, economic infrastructure promoting concentration of economic activities and informal institutions (membership organizations and associations).  The administrative capital refers to good governance and public safety.    13 Although those development factors from the group of capitals support directly the EGP, they are also interdependent and support two crucial factors, which are innovative industries and externalities. The innovative industries refer to high technology manufacturing and services, and knowledge-based entrepreneurship requiring specific conditions of location such as human capital and infrastructure. The externalities are the location close to dynamic areas benefitting from the knowledge diffusion effects (Wojnicka-Sycz, 2013). Thus, all those developments are interdependent and must be involved simultaneously in order to generate accelerated and continuous growth as well as spillover growth effects on neighbouring territories (Figure 4).   Figure 4: Model of growth pole as system of development factors (Wojnicka-Sycz, 2013)  2.4 The EGP of Bagré in Burkina Faso 2.4.1 Implementation and description of the Bagré pole The Bagré pole was initially developed by the government of Burkina Faso in association with the European Union and the Taiwanese Cooperation at the end of the 1980s to sustainably respond to the socio-economic impacts from the agricultural sector, resulting in an increase in private investment, employment generation and agricultural production.  As an EGP, Bagré pole has been developed several times, responding each time to particular needs in order to generate more sustainable growth by strengthening support for technical and business management skills, strengthening the linkages with the regional and global economy,   14 promoting a conducive business environment by including easy access to secure land and investment facilitation regulations, and promoting the availability of critical infrastructure and services in the project area. For this purpose, the pole has been strategically implemented by taking into account the following components of location and sequenced development.  Location The pole location has been chosen through a value chain of opportunities targeting agriculture and agro-processing (see Figure 5) and Bagré has therefore been identified for its high potential for agribusiness, horticulture, livestock, fish farming, and staple crops production. The location of the pole has been chosen on a regionally focused approach targeting private sector demand for optimum allocation of resources, better impacts on economic growth and poverty reduction.   Figure 5: Identified growth poles in Burkina Faso    15 Sequenced development The reforms and pole development have been sequenced by prioritizing the investment allocation. Indeed, the project investment has been scheduled and planned within an integrated approach to coincide with other sector investments to reach a minimum platform for growth.   The development of the zone management and investment climate in the project has been improved through an initial investment of US $20.5 million by the World Bank in 2011. An institutional capacity of the Government, named Bagré Development Authority, provides services to the private sector, improves the investment climate issues and addresses constraints blocking development of the project area. Specifically, the Bagré Development Authority has supported the local business associations, simplified the procedure for construction permits, facilitated enterprise registration by investors, provided technical assistance to attract private sector operators, and designed and installed an effective and socially responsible system to resolve land tenure issues. In addition, they have facilitated access to land by developing simpler and transparent procedures for investors to acquire land-use rights, reducing the cost of land transactions and installing an effective and socially responsible system to resolve land tenure issues, and planned land security and biodiversity conservation through environmental and social management. The Bagré Development Authority has also supported the adaptation and development of vocational training.  The development of the critical infrastructure to promote agricultural development has been improved through an initial investment of US $78.5 million by the World Bank in 2011. Specifically, this investment has been allocated to the development of irrigation infrastructures that allow the irrigation of up to 15,000 hectares (of which 9,000 has been developed by medium- and large-scale private investors) and the development of livestock infrastructures and equipment (wells, photovoltaic and manual powered pumps, reservoirs, troughs, tracks for the agro-pastoral areas, veterinary facility, slaughterhouse, marketplace, vaccination yards, and storage facility). The investment has also been used for the development of fisheries (refrigerated warehouse and cryogenic quick freezing equipment), the development of electricity and water supply network extensions, and the development of access roads.    16 The development of critical services and direct support for smallholders and small- and medium-size enterprises was achieved through an initial investment of US $12.5 million by the World Bank in 2011 to stimulate the establishment of small-scale enterprises and improve the small holders’ capacity and competiveness to respond to markets. Specifically, the developed services are energy fuel supply, communication and connectivity, input suppliers or providers of maintenance and repair services, banking facilities to provide funding for the development of irrigation infrastructure, and productive investments, especially for small holders and technical advisory services (World Bank, 2011).  2.4.2 Lessons learned from Bagré pole The implementation of Bagré pole has been strategically planned and organized for effective results in term of growth and sustainable development. As a learned lesson, the identified key elements determining the approach toward the pole include importantly the following:  The resources determination and planning. Understanding the nature of available resources (durable, mobile, tradable etc.) to strategically locate the pole and plan its development.  The stakeholders’ engagement. Understanding the stakeholder interest, role and significance in the activity process as well as their interaction with one another, helps to plan the involvement of stakeholders into the pole development. One example is to satisfy farmers working conditions and capacity to improve production quantity and/or quality. Another example is the satisfaction of targeted customer to improve revenue of the activity in a competitive market. Improvement of business climate also helps to attract investors.   The growth and development strategy. The sectors of specialisation and diversification are selected by considering the most profitable parts of the business in a short and long term. Strategic partnership and alliance are also part of the growth and development strategy, in order to capitalize on opportunities in the business concerning the market, products, costs etc.  2.5 Conclusion From all of the reviewed literature from Burkina Faso, academicians and governmental authorities have pointed out broadly the same impacts of varying significance depending on specific mine sites. Indeed, the impacts have been well documented through field surveys, records from medical centers and water and soils tests. As a result, the documented impacts are   17 consistent with typical impacts from the activity, observed worldwide particularly by Veiga et al., (2014a). However, the proposed recommendations in Burkina Faso look insufficient to resolve the reported issues, since they do not incorporate all of the issues and have demonstrated unsuccessful results in some places of the world.  In fact, legislation is not the key solution to environmental and socio-economic issues because miners do not meet the legal requirement and the long-time period bureaucratic procedures shows usually complexity. As pointed out by Veiga et al (2014a), “formalization without enforcement is just formalizing more pollution”. In order for the legislation to be effective, monitoring and enforcement programs have to be improved, since artisanal and small scale mining activities operate in remote areas where there is little regulatory authority (Hilson, 2002). In addition to control and monitoring of the artisanal mining activities, the official price offered to miners has to reflect the global price and be precisely within a margin of 5% according to Notestaller (1995), in order to prevent black markets development. Therefore, the main issue is the presence of authorities to make law application effective but also alternative solutions to help miners make sustainably a better living. Indeed, Marshall et al. (2017) vehemently stresses that formalization is a process and not the end. Thus, without education and organization of the miners, the process is not bringing any benefit for better practices and reduction of the pollution. Therefore, organization in cooperatives and associations can be a first step toward formalization but the miners, in particular the leaders, must be trained to implement safer, cleaner and more efficient mining and processing methods.  Concerning the recommendation of financial support from government or banks, it does not encompass the financial requirements in term of selectivity, guarantee, measurements of gold reserves, business plan etc. “Worldwide, not a single artisanal mine site is known that has evolved into a responsible small-mining operation thanks to bank financing” according to Veiga et al. (2014a). Banks are reluctant to provide miners with substantial loans due to collateral and risks of non-payment. Micro-credits are not enough to transform an artisanal miner into a responsible and productive small miner. Without better organization of the activity and determination of a minimum reserve, the artisanal mining activity seems risky for investors (Seccatore et al., 2014). In fact, the suggested recommendation for financial support by   18 academicians was more for a social return than a financial return and therefore attraction of investors and banks seems impossible.   Finally, sensitization to environmental, health and safety measures, including promotion of cleaner and safer mining and processing equipment is a good solution that needs to be more effectively developed by authorities with a better presence on artisanal mining sites. As mentioned by Hinton et al. (2003), effective development and implementation of technical assistance required to take into account the diversity of backgrounds (cultural, religious, economic, etc.), level of knowledge and varied perceptions of individuals in artisanal mining communities. Thus, authorities have to be necessarily in better contact with artisanal miners. Miners will only adopt technology if they see the economic benefit out it.   To conclude, the recommendations from the different authors show some limitations in the way of implementing them. It is well explained what to do to face the sector issues but nothing is proposed on how to concretely implement the proposed solutions by considering the significant parameters affecting those artisanal mining impacts.     19 Chapter 3 Principal inadequacies in relation to artisanal mining activities in Burkina Faso 3.1 Introduction In order to suggest an EGP dealing with artisanal mining, Chapter 3 identifies the critical parameters that control the socio-economic and environmental impacts.   From the analysis of several case studies in Burkina Faso for Fofora site (Sawadogo, 2011), Gombeledougou site (Ngo Minyem, 2012), Sangoulanti site (Kahitouo, 2012), Mankarga site (Sorgho, 2012) and Zougnazagmligne site (Roamba, 2014), four significant parameters of artisanal mining activities have been listed:  The technical parameters refer to the rudimentary (manual and undeveloped) equipment and techniques used by artisanal miners, impacting the mineral extraction and recovery efficiency. In addition to affecting environment and health of miners, this parameter is aggravated by the lack of financial support to access new technologies.  The infrastructural and organizational parameters relate to the lack of infrastructure and planning in artisanal mining sites and community that aggravate poverty, pollution and unhealthy living conditions. This is essentially caused by the lack of government presence and the unplanned migration of artisanal miners, making the current infrastructures inadequate.  The educational parameters refer to the lack of healthy, eco-friendly and profitable knowledge in term of mining and processing methods.  The financial parameters refer to the artisanal miners’ difficulties to obtain credits in order to finance their activities.  3.2 Technical parameters 3.2.1 Comminution Comminution involves the crushing and grinding techniques used by artisanal miners to liberate with little success gold from gangue mineral. Indeed, poor liberation causes the main loss of gold in the coarse fraction during the amalgamation (Veiga et al., 2014a).    20 In Burkina Faso, usually the crushing is conducted manually under sheds with hammers, anvils and nods of weaved bags in polypropylene to protect fingers and avoid particles projection. During this crushing step, miners are exposed to dust, which leads to frequent cutaneous diseases as well as lungs and eyes infections (see Figure 6).  Figure 6: Crushing phase (Ngo Minyem, 2012)  The grinding is usually dry, using a motorized mill with gasoil fuel and the impacts are noise pollution and soil pollution by fuel and sump oil spillage (see Figure 7). Source: Ngo Minyem, 2012     Source: Roamba, 2014 Figure 7: Grinding phase    21 3.2.2 Recovery by mercury For eluvial and colluvial ores in Fofora site, it is mined at the mountain’s foot by scrubbing brushes, rakes and adzes. Then, the ore is panned and some impurities (iron fillings) are removed with magnets. The concentrate is sometimes mixed with mercury to capture fine particles of gold (Sawadogo, 2011).   Concerning amalgamation of primary ore, the concentrate obtained in the sluice box is mixed with mercury (see Figure 8 and Figure 9). According to Roamba (2014), 50 kg of sluiced box concentrate requires 14.4 g of metallic mercury (Hg) on Zougnazagmligne site. Sba-Ecosys-CEDRES (2011) reports 1 gram of mercury (Hg) lost per gram of produced gold as a technical indicator for artisanal gold mining in Burkina Faso. Finally, the amalgam is burned off with a blowtorch to evaporate the mercury and obtain gold. So, pollution occurs when the amalgam is burned off and when the Hg-contaminated tailings are released.  Figure 8: Sluice box  Figure 9: Mercury amalgamation and burning (Ngo Minyem, 2012)    22 3.2.3 Recovery by Cyanide The tailings from sluice boxes and amalgamation are leached with cyanide in rectangular ponds with a depth of 0.5 m to 0.6 m. These ponds are lined with plastic as shown in Figure 10 and the alkaline cyanide solution is recirculated to dissolve the gold. At Zougnazagmligne site, each pond has the capacity to receive 4.5 m3 of ore to be mixed with 200 liters of water and 1kg of sodium cyanide (Roamba, 2014). The gold-mercury-cyanide solution is then drained off through PVC tubes containing zinc shavings, placed under the plastic cover. The zinc traps the gold in the tube and the cyanide solution is recirculated to the pond. The zinc is recovered and mixed with a solution of sulfuric acid to eliminate excess of zinc. The excess of zinc is further mixed with nitric acid to eliminate more impurities (lead, iron and zinc dissolution). The impacts on the environment are soil, surface water and underground water pollution by cyanide infiltration from stockpiled tailings, particularly during the rainy season.  Figure 10: Cyanidation (Ngo Minyem, 2012)  3.3 Infrastructural and organizational parameters 3.3.1 Waste management “Typically, solid or liquid wastes generated by artisanal miners are carelessly discharged to the nearby environment” as mentioned by Hinton et al. (2003). On the studied mining sites in Burkina Faso, mining and household wastes significantly impact the environment. At the mine site, barren ore is stockpiled and not properly managed, implying loss of agro-pastoral activities. Soil is also damaged by various discharged chemicals (mercury, cyanide, fuel, oils, etc.) and erosion. Some of the household wastes (plastic bags, used batteries, clothes etc.) are not recycled   23 but regularly incinerated, thus emitting air pollution. Figure 11, Figure 12 and Figure 13 show how carelessly wastes are managed on artisanal mining sites.    Figure 11: Plastic waste on site  Figure 12: Garbage dump on site (Sorgho, 2012)  Figure 13: Hydrocarbon infiltration (Sorgho, 2012)    24 3.3.2 Water management Water is intensively used on artisanal mining sites without any proper management. The used water from household and ore processing stagnate all over artisanal mining sites. Moreover, the lack of sanitization system contributes to health issues such as malaria due to mosquitos’ proliferation. In total, 637,023 m3 of water have been used in year 2008, as input of gold extraction in artisanal mining (sba -Ecosys-CEDRES, 2011). Thus, this total amount of water has not been properly managed and creates risks of contamination for the environment.   3.3.3 Energy source The lack of energy sources is another issue from the infrastructural parameter, which influences the economy of artisanal mining activity at several levels, particularly the comminution step (Hinton, 2003). In fact, energy is even an important parameter for improving the living camp’s conditions and implementing effective technologies in artisanal mining sites.  3.3.4 Planning At the mining site, planning is an important parameter since it allows better working organization with efficiency results, less pollution through closure of the mining sites and efficient utilization of resources such as water. Figure 14 for example shows pollution by abandoned soil.  Moreover, the living camp and its external activities (restaurants, commercial stores etc.) are disorderly and dangerously constructed (see Figure 15). Those constructions are the main reasons of abusive trees and herbs cuts, affecting the landscape. In addition, the unsafe habitats expose miners to many risks during inclement weather with exposure to cold and flood during rainy season and house fire during dry season.   Without proper planning and organization, the infrastructures do not also respond adequately to the miners’ migrations and demands in term of medicine, energy, water, security and road traffic etc.   25  Figure 14: Degradation of abandoned soil (Ngo Minyem, 2012)   Source: Sawadogo, 2011    Source: Ngo Minyem, 2012 Figure 15: Unsafe mines’ habitat with risk of fire and flood  3.3.5 Regulations and security The fact that artisanal mining operates in remote areas, where the law enforcement is weak and practically nonexistent, makes the activity disorganized, informal and unsafe with illegal practices such as child labour. Part of the explanation for the social disorder in artisanal mining such as disputes, theft and lack of discipline is the lack of government authority and presence.    26 3.4 Educational parameters The lack of education affects all artisanal mining activity. Firstly, it impacts the economic efficiency through poor gold liberation techniques and gold recovery methods. Secondly, it affects in term of environmental, health and safety impacts through rudimentary extracting and processing methods. Moreover, Veiga et al. (2014a) claimed that miners “without training and education, miners do not know how to obtain legal mineral titles”. In order to get formalization, better recovery, better equipment, less accidents and diseases, artisanal miners have to be trained, educated and closely monitored in their activity.  3.5 Financing parameters As pointed out by Veiga et al. (2014a), there is no successful case of microcredits projects in African artisanal gold mine sites. “This is because, for many reasons, artisanal miners are not fully legalized and secondly, banks are very selective about which clients deserve the loan and demand collateral”. In fact, investors on artisanal mining are private and local, since artisanal miners do not establish geological gold reserves. The financing parameter is part of the reason why artisanal miners in Burkina Faso use rudimentary equipment with unsafe ore extraction and poor economic benefits.  3.6 Conclusion The defined parameters influence significantly the health, environmental and socio-economic impacts of the reviewed artisanal mining sites (Fofora site, Gombeledougou site, Sangoulanti site, Mankarga site, Zougnazagmligne site). Thus, if mitigations have to be found, it has to be within those significant parameters. In contrast with the public opinion around cities, who want anti-artisanal mining measures, the following proposed approach will help fighting against causes of artisanal mining impacts rather than the activity itself.    27 Chapter 4 Proposed Economic growth pole model for artisanal mining 4.1 Introduction In this chapter, the identified parameters are used to propose a model that could help make artisanal mining more attractive. Almost similar approaches have been developed in other natural resources sectors in Burkina Faso such as agriculture where most of the small farmers did not own land for farming, nor access to finance in order to get much needed farming tools that will allow them to sustain themselves. They were basically let alone to grow food for the others in tough weather conditions, with little education on best practices (such as land rotation, green fertilizers or other natural means to fertilize the soil) and lack of infrastructures such as transportation and storage equipment to access competitively the market.  However, the country has found success with better and more sustainable organization of the agricultural activity through EGP such as the Bagré pole that has contributed to develop robust and shared economic growth as well as food and nutritional security. The idea behind Bagré pole was to develop land acquisition and formalization, territorial infrastructures (irrigation, barrage etc.), equipment acquisitions and development of support services to create an optimal valorisation of agricultural potentialities for a constant, sustainable and well distributed growth (World Bank, 2011). On the economic level, the EGP has contributed to structure the production sector, diversify and increase the crop production and the country protection on export earnings. On the social level, the implementation of EGP has participated to social cohesion reinforcement, protection of population through food safety, reduce poverty and provide jobs, while improving lives conditions (Ministry of Economic and Finance/ National Technical Secretariat of SCADD, 2013). Indeed, the World Bank (2017) reported in its results report of November 2016 for Bagré, 23,720 jobs created, 28,089 direct beneficiaries, 158 established enterprises and 86 private service providers operating.  Based on the Bagré agricultural pole experience, this chapter describes an application of the economic growth pole model to the artisanal mining sector, by integrating the significant parameters.    28 4.2 Vision of the Model 4.2.1 Approach to the model The suggested approach to EGP is that it should be implemented by private investors associated with authorities of the country, who are primarily interested in attractive business opportunities from the mining sector at a relatively low investment risk. Although Bagré pole is a governmental initiative with significant investments, the proposed model is designed to be initiated by private investors for maximization of the pole growth and feasibility. Since an EGP is a long process of continuous growth with possible emergence of a secondary growth pole, the suggested approach focuses on a flexible starting model of EGP to be implemented. Therefore, the suggested starting model of EGP focuses mainly on improving the gold extraction methods of artisanal miners through a clean processing plant to significantly impact stakeholders’ revenues and create centralization of activities around the plant. Indeed, the current lack of technology, directly impacts the artisanal miners’ economy with only 30% of the available gold recovered in the process (Gueye, 2001), but it also significantly impacts the environment through rudimentary utilisation of mercury and cyanide on sites.  Additionally, the model organization has to ensure efficient management in terms of productivity, distribution of growth and centralization of activities. Importantly, the model has to guarantee better control of the ASM activity and also integrate a way to get the national authorities involved in the EGP development for further sustainable economic growth creation by taking into account the parameters described in Chapter 3. By ensuring that the artisanal mining activity is better regulated and organized, authorities should also have better control and taxation of the activity.  To summarize, the proposed starting model of EGP defines (1) the organizational model of the EGP to ensure control of the activity, better growth distribution, and involvement of stakeholders in the pole development; and (2) the implementation of processing methods to ensure improvement of the activity’s revenue for the stakeholders.    29 4.2.2 Targeted beneficiaries The EGP in artisanal mining is planned to directly affect five types of beneficiaries: - artisanal miners should be allowed better access to mining equipment, infrastructure and training programs that leads ultimately to higher income; - skilled technicians could directly access jobs in managing and operating the different facilities inside the pole; - local small and large private investors should have the opportunity to invest in many areas on the pole; - the government benefits from the project with better control on the impacts of the activity and higher income from taxes; - the local community can benefit as well from the structuring of the artisanal mining activity by direct and indirect job creation and regular taxes generation.  4.3 Description of the model 4.3.1 Mechanism of the model The model organization operates essentially through seven contracts: - a contract between investors of the plant and authorities; - a contract between investors of the plant and investors of the laboratory; - a contract between investors of the plant and investors of the Tailings Management Facility (TMF) - a contract between investors of the laboratory and authorities - a contract between investors of the TMF and authorities - an informal contract between investors of the plant and groups of artisanal miners  - an informal contract between authorities and groups of artisanal miners   As shown on Figure 16, the processing part of the artisanal mining activity is performed in the model through a processing plant, implemented by investors. Different investors, through a TMF, handle the tailings from the plant. The gold recovery for a specific batch of ore is estimated by a laboratory and implemented by other investors. Artisanal miners handle the mining part. The pole control and development is the duty of the authorities.   30 Specifically, investors are expected to be small- and medium-scale investors, investing in advanced processing plant, laboratories and management of tailings from the processing plant. Moreover, investors in the processing plant, the laboratory and the TMF are planned to be different investors, each choosing their own managers for the on-site operations. Thus, plant managers of the different facilities perform the management duties according to their assigned missions and objectives, but they also regularly report their operation to their respective investors and authorities.  The development authority (DA) is, as in the Bagré pole, a Government entity in charge of controlling and managing the pole. In the Bagré pole, the development authority was under the responsibility of the Ministry of Economy and Finance (MEF) and the Ministry of Agriculture; however, the responsible authorities in this starting model would be the MEF and Ministry of Mining, Quarry and Energy (MMCE). In the Bagré pole, the DA has established and staffed its project management team in accordance with its missions, with a general manager; a manager responsible for production; a financial manager; an investment promotion manager; an operations manager; a procurement specialist; a financial management specialist; a monitoring and evaluation expert; an environmental specialist; and a social and land specialist. In this starting model of EGP, authorities also have the responsibility of determining the DA team with respect to the efficient accomplishment of assigned missions and also the estimated revenues for the authorities from the pole activity.  Artisanal miners are all groups of miners from unauthorized sites and licensed areas, who would like to benefit from the services of the processing plant. Since promoters, which locally refer to holders of artisanal mining licenses for a certain area, usually make money from the activities of the artisanal miners, the goal of this starting model is to propose better deals for artisanal miners and to pressure promoters to improve the working methods in their permit areas with better payment to miners.   31  Figure 16: Schematic of the model  4.3.2 Process of the model Contract between investors of the plant and authorities First, the contract between investors in the plant and authorities ensures that the DA is responsible to collect the gold from the processing plant at a negotiated gold price, in order to introduce it into an official and governmental circuit. Indeed, having the authorities involved directly through the DA at the processing plant can help to control the processing plant operation and have proper taxation of the activity in order to avoid the typical 90% undeclared gold that is not subjected to taxes (sba -Ecosys-CEDRES, 2011). Concerning the negotiated gold price by authorities and investors, it should include an interest benefit on the real gold price, in order to finance the DA’s operation for gold transportation and exportation. From 1986 to 1996 in Burkina Faso, there was a public company under the responsibility of the Ministry of Economy   32 and the Ministry of Mining, operating somewhat like the Development Authority. The Burkinabe Precious Metals Counter (CBMP), according to article 3 of law N86-190/CNR/PRES of May 1986, was in charge of buying gold and precious stones from mining operations. The CBMP at that time had a monopoly for the exportation of produced gold by mining companies at an agreed price (article 1 and 5 of law N86-191/CNR/PRES). The monopoly of CBMP for exporting gold ended in 1996 with economic reforms to favor private sector development.  Then, the contract ensures that authorities agree on the different payment repartitions on produced gold, which are between miners and investors in the plant, between investors in the laboratory and investors in the plant and between investors in the TMF and investors in the plant. Thus, authorities proceed to the payment of the different stakeholders accordingly, with the DA paying artisanal miners directly on site for a batch of ore, after the laboratory tests determine the estimated extractable gold by the processing plant. Concerning the payment to the different investors, it is not done on site by DA but directly by authorities, which should be specifically the MEF. The term of payment to investors of the plant has also to be defined in this contract with flexibility for authorities to proceed to payment after gold exportation.  Contracts with investors in the laboratory The laboratory’s objective is to conduct tests on delivered batch of ore mined by artisanal miners in order to evaluate the gold grade and the adequate processing methods for gold extraction. Thus, the plant operator could select the most profitable method available at the processing plant to extract gold from the delivered batch of ore and DA could estimate the payment to miners considering the setup payment repartition. Indeed, testing the delivered ore prior to processing does not only determine the profitability of the processing, but it allows DA to pay miners upfront. Therefore, miners would not have to wait for several days for the plant to process their ore before receiving payment. Most likely, miners will have to wait one day after delivery of the ore for the laboratory to conduct the tests. It is also strictly planned in the model that the laboratory must be operated by private and independent investors to avoid any conflict of interest between the plant and the laboratory. Therefore, selection of the partner to run the laboratory has to be made conjointly by authorities and investors of the processing plant.    33 So, the contract between investors of the plant and investors of the laboratory determines the price for conducting lab tests. The contract between investors of the laboratory and authorities determines the term of payment according to the defined price and ensures that authority has a follow up on the on-site laboratory activity. Thus, laboratory tests reports have to be delivered to the plant operator and the DA.  Contracts with investors in the TMF The TMF’s objective is to plan, design and implement a TMF facility based on the estimated quantity of tailings to receive over a determined period. Based on a determined price to handle tailings from the plant, investors or contractors in the TMF selects the suitable construction and equipment in respect of the minimum environmental requirements.   Investors in TMF are supposed to support the initial investment of the TMF. However, in case of contractors handing only the TMF construction and operation, the plant investors will support the initial investment for the TMF. Therefore, the price for handling the tailings by contractors would have to be revised accordingly to exclude the investment risks and penalties that would have been for the benefit of the investors of the TMF. Indeed, investment risks for investors are marginal benefits considered in the tailings’ price for supporting the TMF investment. Concerning the penalty to lower the risks of investors in TMF, it is optionally determined for lower delivery than the expected minimum quantity of tailings over a determined period, since it impacts the revenues and therefore the return on investments.  Final decision on the selection of the TMF partners or contractors has also to be made conjointly between the plant operator and authorities.   So, the contract between investors in the plant and investors in the TMF determines the price for handling tailings from the plant, while the contract between investors in the TMF and authorities determines the term of payment and ensures that authority has a follow up on the TMF operation. Thus, TMF reports have to be delivered to the plant operator and to authorities.    34 Informal contract with artisanal miners The informal contract between investors and miners is materialized by the fact that some groups of miners use the service of the processing plant at the setup gold repartition. In fact, the payment repartition on produced gold is setup well ahead by the investors of the plant and authorities. Therefore, this informal contract means that miners are aware of the repartition payment and eventual service fees, before accepting to process their ore by the processing plant. So, this payment repartition between miners and investors of the plant has to be attractive for miners to justify that miners leave their current processing methods at 30% recovered gold (Gueye, 2001) but also that miners transport their ore to the processing plant (haulage cost).  The informal contract between authorities and miners symbolizes an involvement of authorities close to miners by setting up the DA as the institution in charge of (1) guaranteeing the respect of the agreed payment, (2) guaranteeing the reliability of the laboratory tests, (3) receiving complaints from artisanal miners.  4.3.3 Targeted output Economic Growth Economic growth is the first targeted output from the model, resulting directly from the gold recovery improvement by the processing plant. Indirect growth can also be expected with involvement of authorities and various investors to develop the pole activities. With significant revenue from proper taxation of the activity at the processing plant, authorities would have means to directly train miners and plan economic activities development in the pole.   Fair distribution of the economic growth The fair distribution of the economic growth in the model organization should firstly be the result of miners receiving an officially agreed payment for the processing of their mined ore and secondly authorities taxing properly the activity in respect of the tax legislation. Authorities are responsible to collect the gold and therefore know the proper taxation to apply to the different investors for their operations. The guaranty of a fair distribution for the economic growth is the fact that authorities is agreeing on the payment distribution and his handling this payment. Considering artisanal mining activities as a poverty-driven activity, artisanal miners are not let alone discussing and requesting their payment with investors.    35 Centralization of the artisanal mining activity Centralization is essentially the fact that all the stakeholders are linked to the processing plant. As a result, centralization ensures that the received ores from miners are processed under control of the DA, in respect of the environmental and safety standards. It can also allow efficient implementation of training and sensitization programs toward artisanal miners; in case the pole is successfully attractive for miners.   In order for centralization of activities around the processing plant to occur, the plant has to avoid the same failures than the Shamva processing centre in Zimbabwe. Indeed, Shamva processing center, which was initially successful in 1989, has stopped operation due to over capacity operation (Hilson, 2007) and long distance travel for miners to process the ores (Veiga et al., 2014b). Therefore, miners have returned to their faster polluting practices in this example of processing center. Thus, waiting times for ore transportation and laboratory tests before payment of miners in the EGP have to be attractive enough to favor centralization.  4.4 Implementation and risks of the model In order for the model to be feasible and attractive, the implementation strategy has to reduce at most the risks for the stakeholders. First, a particularly challenging risk is related to the pole location. The location must be chosen so as to minimize the haulage cost for artisanal miners that would benefit from the processing plant service but also to obtain ore with an attractive gold grade. In fact, estimating the minimum required ore and gold grade is an important aspect to promote the mining pole to investors in terms of required equipment investment, as well as the expected cash flow and payback time. Artisanal mining exploration is carried out by simple observation of the surface area, looking for indicator minerals such as quartz or pyrite and plants that accumulate gold such as bauhinia reticulate or diospyros mespiliformis and conducting test excavations to a depth of 0.5 to 1 meter (Ngo Minyem, 2012). Thus, the strategy is to implement the pole in a region based on the history of gold production and after on-site investigations and review of official reports. There is also a possibility, if the plant allows it, to process some tailings from previous extraction in order to recover some unrecovered gold and reduce the risks for investors.    36 The second risk is that some of the stakeholders may not properly fulfill their commitments and therefore affect the model activity. Indeed, the TMF operator has to be able to responsibly handle the daily tailings over the determined period, as defined in the initial TMF design. The laboratory operator has to provide reliable reports in an acceptable time period, so that the model operates efficiently with the miners not being overly delayed. The DA also has to be able to efficiently collect the daily produced gold and proceed to make payments according to contracts, so that the pole reputation is not affected by delays in the payment of miners, and the processing plant operation is not affected by delays in the payment for investors.  All of the stakeholders, except the miners, must support initial investment before the activity starts, which for the DA includes the establishment of the official gold circuit for exportation and the payment to miners at the start of the processing plant operation. This means that the major risks are supported by all the stakeholders except the miners, who only take the risk to transport their ore to the plant when the pole operates. Thus, all the stakeholders taking major risks have to efficiently work together for the success of the pole, by eventually sharing their regional knowledge in term of gold production and promoting the pole activity toward artisanal miners.  4.5 Conclusion To conclude, the suggested starting model of EGP toward artisanal mining operates first through a clean processing plant to create significant growth and then through contracts to centralize activities around that processing plant by ensuring better growth distribution. Through contracts, the model is organized as follows: (1) the processing plant processes the ore delivered by artisanal miners, according to the laboratory tests; (2) the laboratory must conduct quick tests on the ore to determine the extractable gold by the processing plant operation, so that the plant operator decides on the most profitable processing method and the DA provides miners upfront payment according to the determined payment distribution; (3) The TMF collects, handles and manages tailings from the processing plant according to the agreed TMF design; (4) The authorities pay for the processed gold at a negotiated price, handle the payment of miners and investors and control the pole activity; and (5) artisanal miners still carry out the mining.    37 Since the processing methods developed in Chapter 3 for current ASM sites are rudimentary, a process with mechanized equipment is an efficient innovation that has the potential to convince miners to use the pole services for better revenues. Therefore, the main challenge in the model would be to locate and implement the pole in an area which is close to attractive gold resources and which meets the TMF requirements. Indeed, the case of Shamva processing center has been highlighted as an example of failures, such as the long waiting time for miners to get paid, due to the long distance for ore transportation and the over capacity of operations (Hilson, 2007; Veiga et al., 2014b). Therefore, being close to attractive gold resources provides an incentive for miners to use the pole service, by reducing their haulage costs and waiting time. For resources far from the pole, the well-organized groups of miners would have to decide if the pole service is worth the time and investment to transport their ore. Ultimately, a transportation service to collect ore from artisanal mining sites and to deliver it rapidly to the pole, should be considered to significantly improve the pole activity by collecting ore from many remote areas at attractive costs for miners. Thus, promoters having their licensed sites far from the pole would still have pressure to improve their extraction technique and deals toward miners.     38 Chapter 5 Workability of the economic growth pole model in artisanal mining 5.1 Introduction Although some economic growth poles have been developed around the world for agriculture particularly, the suggested economic growth pole for artisanal mining represents an undeveloped approach. Thus, the idea of economic growth pole for artisanal mining requires demonstration of its workability and efficiency.  In this perspective, Chapter 5 first simulates the economic performance of some processing scenarios of the model and discusses secondly the model applicability to face the environmental and socio-economic impacts of the artisanal mining sector.  5.2 Feasibility and economic performance of the model 5.2.1 Brief review of the geology and gold mineralization in Burkina Faso  Three major litho-tectonic domains characterize the geology of Burkina Faso: a Paleoproterozoic basement underlying most of the country; a Neoproterozoic sedimentary cover developed along the western, northern and south-eastern portions of the country; and a Cenozoi mobile belt forming small inliers in the north-western and extreme eastern regions of the country. Gold mineralization occurs in the Birimian greenstone belts of the Paleoproterozoic basement, which extend through Ivory Coast, Guinea, Mali and Ghana and comprises a mix of metamorphosed volcanic, sedimentary and plutonic rocks. The country is crossed over 400 km by the two major Birimian greenstone belts of Houndé and Boromo belts, which host multiple gold and base metal deposits (Huot et al., 1987). As illustration, Figure 1 in Chapter 1 demonstrates the location of ASM activities all over the greenstone belt in Burkina Faso.    39 Generally, gold deposits in the Birimian greenstone belts of West Africa are late orogenic hydrothermal deposits that exhibit a strong relationship with regional arrays of major shear zones. Kappenschneider et al. (2012) has classified the gold deposits in West Africa into the following types:  - Structurally-controlled, epigenetic lode or stockwork mineralization related to major shear zones with native gold (Poura, Burkina Faso; Kalana, Mali) or with gold associated with sulphides, often locked in arsenopyrite (Ashanti type: Obuasi, Ghana);  - Stratiform deposits hosted in tourmalinized turbidites (Gara Deposit Loulo, Mali); - Disseminated sulphides hosted in volcanic or plutonic rocks (Syama, Mali; Yaouré, Ivory Coast; granitoid-hosted Ayanfuri, Ghana);  - Paleo-placer deposits: auriferous quartz-pebble conglomerates (Tarkwa, Ghana); modern placers (eluvial, alluvial).  Especially in Burkina Faso, Béziat (2007) has determined two main styles of gold mineralization based on some intensive data collection over the major greenstone belts of the country:  - Quartz-vein hosted occurs in all lithologies with gold, concentrated within the deformed veins and associated with either sulfides or tourmaline.   - Disseminated mineralization style occurs exclusively in albitites (and to a lesser extent listvenites) with gold occurring mainly within alteration halos of generally undeformed quartz-albite-carbonate vein.  In the quartz-vein style deposits, the gold grades range from 8 to 12 g/tonne in steeply dipping, boudinaged veins and in shallow dipping, folded veins, with generally less than 1 g/t in the alteration halos. The quartz sulfide veins are characterized mainly by pyrite as the most common sulfide and native gold with subordinate amounts of ore minerals such as chalcopyrite, sphalerite, pyrrhotite and galena. In quartz-tourmaline veins, globular grains of gold (less than 2 mm) are concentrated within layers of tourmaline, typically in terminations of tourmaline crystals and small grains of gold (less than 100 microns) which fill fractures or cleavages.  In the disseminated style deposits, the gold grades range from 10 to 6000 ppb in the albitites and 10 to 200 ppb in the listvenites. Sulfides (mainly pyrite) are milometer to sub-millimeter sized aggregate in fractures or disseminated in sulfide alteration halos and accompanied with arsenopyrite in metasediments and metavolcanics. Telluride gold in disseminated style deposits   40 occurs as very small particles to up 20 microns. Native gold is free grains in fractures in pyrite, associated with pyrrhotite, chalcopyrite and gangue minerals of quartz and muscovite grains. The range of silver content in the gold varies from 10 to 28 weight percentage of silver (Béziat, 2007).   To summarize, the gold is typically free milling when mineralization is associated with an organized network of quartz veins containing subordinate amounts of carbonate, tourmaline, sulphides, and native gold. Gold may be free milling but also refractory in the alteration zones with disseminated sulphides (Roxgold Inc., 2014). With a deep weathering profile and therefore extensive surface oxidation of bedrock, gold deposits in Burkina Faso usually comprise a surface of oxide zone with free milling gold, an intermediate transition zone and a deeper fresh rock zone.  5.2.2 Model scenarios The scenarios simulate the economic performance of the processing plant, considering some likely types of gold ore to receive from artisanal miners and indicators concerning artisanal mining in Burkina Faso. Indeed, the processing plant is planned to have varying processing methods in order to process most types of gold ore with attractive recovery. The purpose is for the plant to be implementable in most areas and attract most artisanal miners from different sites.   Artisanal miners in Burkina Faso exploit auriferous quartz-veins, paleo-placers (concentrations of minerals in which the host material is a consolidated rock) and lenses of disseminated mineralization. With an average depth of 70 meters for vein ore exploitation, artisanal miners mostly extract oxide ore and free milling gold. Thus, three scenarios for the economic simulation of the starting model would be developed in this chapter: - the processing of placer and mostly coarse gold ore in free milling and oxidized ores as scenario A - the processing of coarse and fine gold in free milling and oxidized ores (sulphide) as scenario B - the processing of coarse, fine and very fine gold in free milling and oxidized ores (oxide) as scenario C    41 Scenario A: Processing of placer and coarse gold in free milling and oxidized ores This scenario illustrates the process for placer and coarse gold in the free milling and oxidized ores, having particle sizes higher than 0.6 mm, as shown in Figure 17. In this scenario, paleo-placers and coarse gold ores from artisanal miners do not require pre-treatment for gold extraction and only require physical separation by gravity concentration.  The first step of comminution reduces the particle size of the ore in order to liberate the disseminated and associated gold minerals from the gangue, before separation is performed. In fact, gold does not need a total liberation from the gangue minerals in order to be concentrated. As long as the particle develops a weight to be separated from the silicate or carbonate minerals, the gold particle (liberated or not) can be concentrated (Veiga et al., 1994). The comminution is sequenced through the crushing and grinding processes. The crushing process simply reduces the particle size of the ore to such a level that grinding can be carried out until the gold and gangue minerals are substantially produced as separate particles. During the crushing process, the ore is compressed against a rigid surface, while grinding involves abrasion and impact of the ore by the free motion of grinding media (steel mill balls).  Gravity separation is performed by a series of two centrifugal gold separators and a shaking table. The centrifugal concentrators use the principles of a centrifuge at high speed operation and enhanced gravitational force to separate particles of different density. The shaking table is an inclined table using the motion of particles (according to specific gravity and size), by oscillating backwards and forwards with riffles that hold back particles closest to the deck. Smelting of the gravity concentrate is done with a furnace in the presence of fluxes such as Borax, at temperatures greater than the gold melting point (1,064 °C).    42  Figure 17: Processing flowchart of scenario A  Considering a targeted daily ore production of 20 tonnes at an average gold grade of 10 grams/tonne of ore, primary crushing has been selected to reduce the ore to a size of 90 mm. The secondary crushing is performed for an output size of 2 mm through a cone crusher. Four ball mills do the fine grinding of the material to 0.6 mm, at a feed capacity of 2.5 tonnes/hour each. Concentration is done as indicated in the mass balance of Table 1, with two centrifugal gold concentrators having a feed capacity of 10 tonnes/hour each. Then, a shaking table improves the concentrates from the centrifugal concentration to an assumed concentrate weight of 2.75 kg as detailed in Table 1. Thus, the final concentrate grade is estimated to be 5.09%, considering 10 grams/tonne gold grade and an overall gold recovery of 70% in the scenario. Finally, smelting of the concentrate is achieved by an induction furnace at an estimated melting time of 30 minutes and filtering of the tailings is handled by the TMF operator.   43 Table 1: Mass balance for gravity concentration of the coarse gold Plant operation Concentrator 1 Concentrator 2 Shaking table Feed (kg) 20,000 19,940 110 Tailings (kg) 19,940 19,890 107 Concentrate (kg) 60 50 2.75  Therefore, the production schedule for scenario A with 8 hours processing time is designed as shown in Appendix A, considering the described equipment to provide a daily ore processing of 20 tonnes/day.   Scenario B: Processing of coarse and fine gold in free milling and oxidized ores This scenario illustrates the process for coarse gold having particles size higher than 0.6 mm and fine gold having particle sizes between 0.2 mm and 0.6 mm in the free milling and oxidized ores, as shown in Figure 18. Indeed, sulfide-containing, free milling ores can be treated by flotation of fine free gold and auriferous sulfides (mainly pyrite and arsenopyrite) accompanied by cyanidation of the flotation concentrate (Woodcock et al, 2007).   As scenario A, the first step in scenario B is the recovery of coarse gold through first comminution to liberate the disseminated gold minerals with the gangue and then gravity separation by a series of two centrifugal concentrators and a shaking table.  Froth flotation of the reground tailings from gravity concentration exploits the differences in surface properties for selective separation. In this flotation process, the ground ore is first mixed with water in a conditioning tank and the desired mineral is rendered hydrophobic by the addition of chemical collectors. Then, the pulp of hydrophobic particles and hydrophilic particles is introduced to flotation cells that are aerated to produce bubbles, in order for the hydrophobic particles to attach to the air bubbles and form froth at the top of the flotation cell. The hydrophilic minerals from the first flotation stage (rougher) are subjected to the scavenger flotation stage to recover left valuable particles, before tailings to be filter by the TMF.  Solid/liquid separation is also done on the flotation concentrate to achieve reduction of moisture content and recover some water from the flotation process. Intensive cyanidation is the process to recover the fine gold particles from the flotation concentrate by dissolving gold into cyanide solution following the Elsner equation:    44 4 Au + 8 CN- + O2 + 2 H2O = 4 Au(CN)2- + 4 OH- Merrill-Crowe process removes gold of the “pregnant” solution (leach solution containing dissolved gold) by zinc precipitation after the cyanidation process, according to the following chemical reaction:  2Au(CN)2 -+ Zn = 2Au + Zn(CN)4-2 First stage of the Merrill-Crowe process is the removal of solids by a clarifier, to reduce the solid content to approximately 5 ppm. The second stage of the Merrill-Crowe process is the removal of oxygen from the pregnant solution by a deaeration tower and vacuum pump, in order to allow precipitation of gold with zinc dust. In the third stage of Merrill-Crowe, zinc dust and lead nitrate are introduced in the clarified and deaerated solution to precipitate the gold. Fourth stage of Merrill-Crowe is the removal of gold precipitates through a filter press. Then, the gold precipitates are treated by sulfuric acid to dissolve zinc before smelting.  The principle of cyanide destruction is to convert cyanide into a less toxic compound through an oxidation reaction. The considered process of cyanide destruction in this scenario is sulfur dioxide and air (SO2/Air), which utilizes SO2 and air in the presence of a soluble copper catalyst to oxidize both free cyanide and cyanide weakly-complexed with metals to cyanate (OCN-), following the equation (Michael Botz, 1999):  CN- + SO2 + O2 + H2O → OCN- + SO4-2 + 2H+ In fact, cyanide refers to one of the following three classifications of cyanide: (1) free cyanide, which refers to hydrogen cyanide (HCN) and cyanide ion (CN-); (2) weak acid dissociable (WAD) cyanide, which comprises free cyanide and weak and moderately strong metal-cyanide complexes of silver (Ag), cadmium (Cd), copper (Cu), mercury (Hg), nickel (Ni) and zinc (Zn); and (3) total cyanide, which comprises free cyanide, WAD cyanide and strong metal-cyanide complexes of Fe. Although, the cyanide strongly-complexed with iron is not oxidized in SO2/Air, it is removed as an insoluble copper ferrocyanide salt. Finally, the SO2/Air process is planned in this scenario to be applied for the slurry tailing from the processing plant and the barren solution from Merrill-Crowe.    45  Figure 18: Processing flowchart of scenario B  As in scenario A, the targeted daily ore production in scenario B is 20 tonnes at an average gold grade of 10 grams/tonne of ore and the equipment to recover the coarse gold is same. So, primary crushing to a size of 90 mm is handled by a jaw crusher. Secondary crushing is performed for an output size of 2 mm through a cone crusher. Four ball mills of 2.5 tonnes/hour capacity each do the fine grinding of the material to 0.6 mm and then the regrinding after gravity concentration to an output size of 0.2 mm by using different ball sizes. Gravity concentration is done as indicated in the mass balance of Table 2, with two centrifugal gold concentrators having a feed capacity of 10 tonnes/hour each. Then, a shaking table improves the concentrates from the gravity concentration as indicated in Table 2. Concentrate from the gravity concentration is smelted by an induction furnace at an estimated melting time of 30 minutes. The reground tailings (of 0.2 mm size) from the shaking table and the centrifugal concentrator 2 are conditioned in a tank prior to flotation. Selection of the conditioning tank and flotation tanks for   46 the rougher (3 cells) and scavenger (3 cells) have been done considering an approximate feed tonnage of 20 tonnes/day, an estimated specific gravity of 2.9, a pulp density of 35%, a conditioning time of 10 minutes and a volume factor for aeration of 15%. Tailings from scavenger flotation are delivered to the TMF, while a thickener recovers water from the flotation concentrate. Then, a leach reactor does the intensive cyanidation of the estimated 3.8 tonnes concentrate from flotation (concentrates from rougher and scavenger flotation in Table 2), prior to the Merrill-Crowe process. Smelting of the Merrill-Crowe precipitate is also done by the induction furnace after sulfuric acid treatment to dissolve zinc. Finally, SO2/Air process is performed with two agitated tanks. One tank treats the tailings slurry and the other tank treats the barren solution. The oxygen for the plant (flotation, cyanidation and cyanide destruction) is delivered by an air solution system consisting of an air compressor, an air dryer, an oxygen generator, an air tank and an oxygen tank.  Table 2: Mass balance for gravity concentration of the coarse and fine gold Plant operation Concentrator 1 Concentrator 2 Shaking table Rougher flotation Scavenger flotation Feed (kg) 20,000 19,940 110 19,997 17,998 Tailings (kg) 19,940 19,890 107 17,998 16,198 Concentrate (kg) 60 50 2.75 2,000 1,800  Therefore, the production schedule in scenario B is designed as shown in Appendix B, considering the described equipment to provide a daily ore processing of 20 tonnes per day. Indeed, 34 hours are required to process a batch of 20 tonnes of ore without affecting processing time of the next batch of ore that starts at the 24th hour.  Scenario C: Processing of coarse and very fine gold in free milling and oxidized ores This scenario illustrates the process to recover coarse and fine gold as in scenario B. However, scenario C is designed to also recover finer particles (less than 0.2 mm) compared to scenario B (see Figure 19).   As in scenario A and B, the first step is the recovery of coarse gold through first comminution to liberate the disseminated gold minerals with the gangue and then gravity separation by a series of two centrifugal concentrators and a shaking table.    47  Agitated cyanidation extracts gold from the reground tailings of gravity concentration. The agitated tanks are equipped with agitators, baffles and gas introduction to maintain the solids in suspension in the slurry.   As in scenario B, Merrill-Crowe and cyanide destruction processes are performed the same in scenario C through a clarifier, a deaeration tower, a vacuum pump, a filter press and a SO2/Air.    Figure 19: Processing flowchart of scenario C  As in scenario A and B, the targeted daily ore production is 20 tonnes and the equipment to recover the coarse gold are the same with a jaw crusher, a cone crusher, four ball mills model, two centrifugal gold concentrators and a shaking table. Since gravity concentration in scenario C concerns only the coarse gold, the considered mass balance for the ore is as indicated in Table 1.     48 Agitated cyanidation of the reground tailings from the shaking table and the centrifugal concentrator 2, is done with 4 leaching tanks to have an acceptable leach profile. The selection of these four agitated tanks considers an approximate feed tonnage of 20 tonnes per day, a specific gravity of 2.9, a pulp density of 50% and an effective volume factor of 0.92. Solid/liquid separation is done through a thickener at a feed capacity of 20 m3 to separate the “pregnant” solution and the solid tailing, prior to Merrill-Crowe processing of the leach solution. Smelting of gravity concentrate and Merrill-Crowe precipitate (with sulfuric acid treatment to dissolve zinc) are done by the induction furnace.   The overall time to process a batch of 20 tonnes of ore is about 38 hours as indicated in the production schedule (Appendix C) without affecting the processing time of the next batch that start at the 24th hour.   5.2.3 Technical indicators of the model simulation Laboratory process Metallurgical tests will determine the circuit and procedure to follow in the processing plant. Thus, the DA can pay miners before processing the delivered ore, based on the metallurgical tests results (estimated grade and gold recovery).  So, the suggested laboratory equipment and tests have been designed in order to determine the gold recovery to expect from each scenario of the simulation. In principle, a change of scenario and acquisition of equipment by the processing plant should also correlate with new laboratory tests and equipment.   Based on the review of the leaching and the GRG tests by Clarke (2005) and Egan et al. (2016), Figure 20 has been developed to summarise the laboratory tests and procedure for the three possible scenarios of the model implementation.  First, representative samples from delivered ore have to be carefully determined for the lab tests to be meaningful.     49 Secondly, the crushing at the first stage consists of a single jaw crusher producing a particle size less than 90 mm, for a sample feed of 39.5 kg. At the second stage, a hammer mill reduces the size of the sample to 6 mm.  Then, splitting of the crushed sub-sample is to have representative 15 kg sub-sample subjected to the gravity recoverable gold (GRG) test, 9 kg sub-sample subjected to the flotation test, 50 grams subjected to sample characterization and 15 kg sub-sample subjected to the grinding test associated with leaching test.   Pulverizing a crushed sub-sample of 50 g prior to fire assay and sub-sample characterization is the step, where the particle size of the sample is brought down to low microns (74 to 125 microns).   The grinding test for a 15 kg sample by the first ball mill determines the required grinding time for liberation, after analyse with the results from GRG test and leaching test.  The leaching test determines the required leaching time and conditions for efficient gold recovery as experimented. It involves a 1 kg sample in each leaching test mixed with appropriate cyanide solution (1% NaCN) into a polyethylene bottle. Then, the bottle rolls for a determined period at pH of 10, for gold dissolution through cyanide complex formation. The GRG test indicates the amenability of a 15 kg sample to gravity concentration, based on progressive particle sizes reduction by the second ball mill. The objective during this test is to recover gold as liberated while minimizing over grinding. Thus, this second ball mill is planned to use different ball sizes, weights and numbers to achieve 250 microns and 100 microns. The flotation test indicates the floatability of the gold particles in 9 kg sub-sample at various sizes (250 microns and 100 microns) and under three different flotation conditions.  The fire assay test is performed on the pulverized sample and the concentrates of the GRG. During this test, a sample of 50 grams is mixed with the assay fluxes (borax and soda ash) and silver (Ag) as collector in crucible. Then, the fusion process takes place in the furnace at a temperature of 1,060°C and the molten slag is poured into a mould to form a lead button. Following the fusion process, the lead button is then placed in a preheated cupel at 950°C to   50 recover the Ag (doré bead) and gold. Finally, the Ag doré bead is digested in hot nitric acid (HNO3) at approximately 95°C, before being cooled for two hours for gold analysis by inductively coupled plasma optical emission spectrometry (ICP-OES). Assaying of the leaching solution is done by the ICP-OES after dilution of the cyanide solution.  Sample characterization and tails characterization from leaching test and GRG test are done through aqua regia, follow by ICP-OES analyze. A sample of 1 g is digested with aqua regia (mixture of one part hydrochloric acid and three parts nitric acid) for 2 hours on a hot plate at 95 ° C and under a fume hood.  Then, the sample is cooled and diluted with deionized water, before being analyzed for elements by the ICP-OES.  The lab tails from the different tests are disposed after simple settling tests. The overall time to conduct all the tests on representative sample from a batch of ore is estimated to 26 hours as indicated on the laboratory production schedule (Appendix D).   Figure 20: Laboratory test procedure (based on lab procedures from Clarke 2005; Egan et al. 2016)    51 Tailing Management Facility (TMF) implementation and process The objective of the TMF is that tailings solids and stored water and chemicals are contained to prevent health, safety and environmental impacts. Tailings can be stored and managed in a variety of ways depending on their physical nature, site topography, climatic conditions, environmental regulation and socio-economic context (LPSDP, 2016). Thus, it is the purpose of the investors of the TMF and their operator to manage the tailings from the plant by meeting the environmental and socio-economic requirements.  Tailings received from the plant will come from the gravity concentration in all scenarios, from the flotation operation in scenario B and from the cyanidation operation followed by cyanide destruction in scenarios B and C.  In the first step of the TMF procedure, the operator in charge of the TMF has to investigate the pole and possibly run laboratory tests in order to designate the appropriate location to implement the TMF. Specifically, the site investigation has to analyse the physical properties of the soil and the competency of the bedrock.  Secondly, The TMF design has to conceptualize (1) the embankment types, stages, elevation and rate of rise depending on the types and quantity of tailings to be received; (2) the TMF site selection and type with the possible acquisition of drainage depending on climate, topography, hydrology and geology; (3) the control of seepage and the required water quality; (4) the possible future need for embankment raising; and (5) the TMF closure and rehabilitation to minimize environmental impacts (LPSDP, 2007).  The construction of the embankment is handled according to the design, while equipment acquisition concerns the TMF operation of filtration of the designed tailing type (slurry, thickened, paste or cake), transportation and deposition of tailings. Indeed, the TMF operator has to select suitable equipment to handle the tailings in an economic manner considering the payment repartition of the activity but also in respect to the minimum environmental requirements.    52 TMF operation comprises the transport and the deposition of tailings, as well as the monitoring of the facility. There are some operational risks such as geotechnical failure, seepage and dust emission, and therefore, an emergency action plan has to be envisaged to ensure effective responses to any indicators of potential impacts. Monitoring of the TMF includes the proper management of changes in operation, which can involve climatic changes, changes in the demands for tailings storage volume, changes in the nature of the ore and received tailings, and changes in the regulatory requirements and expectations from the DA.  TMF closure and rehabilitation are also crucial to the TMF management, since exposed sediments on the surface of tailings may be remobilized by wind, contaminants may be transported by rainfall run-off, and seepage and failure may occur due to erosion of the embankment from rainfall run-off. Therefore, the objective in closure, decommissioning and rehabilitation is to have a safe facility, containing tailings and minimizing seepage of contaminated water with little ongoing maintenance (LPSDP, 2016).    Assumptions A list of assumptions for the simulation of the different scenarios can be found in Table 3. Those assumptions have been determined essentially by reviewing processes in the mining industry for laboratories, flotation processes, agitated cyanidation processes, Merrill-Crowe processes, smelting processes and SO2/Air processes. Although the processing plant is planned to operate as long as profitable, the simulation is run over 5 years to analyse the starting operation of the EGP.   53 Table 3: Preliminary assumptions for the simulation of the scenarios Indicators Units Values Simulation period years 5 Authorized time of exploitation in a year (for licensed sites) months 8 Maximum power consumption by the plant in scenario A kW 92 Maximum power consumption by the plant in scenario B kW 117 Maximum power consumption by the plant in scenario C kW 147 Maximum power consumption by the laboratory kW 19.8 Water consumption by the plant in scenario A m3/batch of ore 35 Water consumption by the plant in scenario B m3/batch of ore 50 Water consumption by the plant in scenario C m3/batch of ore 42 Water consumption by the laboratory liters/sample 47 Borax consumption by the plant g/tonne of ore 100 Borax consumption by the laboratory g/sample 10 Soda ash consumption by the plant for smelting g/tonne of ore 300 Soda ash consumption by the plant for flotation g/tonne of ore 250 Soda ash consumption by the laboratory (flotation test and fire assay) g/sample 100 Potassium amyl xanthate (PAX) consumption by the plant g/tonne of ore 65 Potassium amyl xanthate (PAX) consumption by the laboratory g/sample 2 Pine oil consumption by the plant ml/tonne of ore 100 Pine oil consumption by the laboratory ml/sample 1 Alkaline calcium hydroxide (Ca(OH)2) in flotation of the plant  kg/tonne of ore 0.5 Alkaline calcium hydroxide (Ca(OH)2)  consumption by the laboratory g/sample 42 Hydrochloric acid (HCl) consumption by the laboratory ml/sample 16 Zinc consumption by the plant g/tonne of CN 38 Lead nitrate consumption by the plant g/tonne of CN 12 Sodium cyanide (NaCN) consumption by the plant kg/tonne of ore 1 Sodium cyanide (NaCN) consumption by the laboratory g/sample 12 Sulfuric acid consumption by the plant g/g of zinc 1.4 Sulfur dioxide (SO2) consumption in cyanide destruction g/g of CN- oxidized 4.5 Alkaline calcium hydroxide consumption in cyanide destruction g/g of CN- oxidized 5 Copper sulfate (CuSO4-5H2O) consumption in cyanide destruction g/g of CN- oxidized 0.2 CN- oxidized in effluent ml/l 300 Nitric acid consumption by the laboratory (fire assay and aqua regia) ml/sample 1048 Silver collectors in laboratory g/sample 1 Plant labor people 13 Laboratory labor people 9 Gold recovery in scenario A % 70% Gold recovery in scenario B % 85% Gold recovery in scenario C % 90%    54 5.2.4 Economic performance of the model Financial parameters Estimates of the financial parameters in the economic simulation are shown in Table 4. Table 4: Financial parameters Parameters Units Values US Dollar to CFA Franc foreign exchange rates  CFA 561 CFA to US Dollar Franc foreign exchange rates  US $ 0.00178 Gold price US $/g of gold 37.21 Gold price of the DA US $/g of gold 35.35 Price of laboratory tests US $/sample 887.20 Payment to TMF  US $/tonne of tailings 40 Royalty tax Percentage of FOB real value 4% Corporate income tax Percentage on operating profit 17.5% Tax on dividend Percentage 6.25% Depreciation Percentage 20%  The foreign exchange rates are 24-month averages from June 2014 to May 2016. The gold price is an average of monthly gold prices from June 2015 to May 2016. Considering the fact that the DA has a 5% interest on the gold price, as typical gold buyers in Burkina Faso, the gold price applied to the gross revenue is 5% less than the real price.  A royalty tax of 4%, payable to the Burkina Faso government, has been selected for this simulation considering the defined gold price. The royalty published in the Burkina Faso Mining Code ranges from 3% to 5% depending on the gold price: 3% when the gold price is less than or equal to $1,000/oz.; 4% when the gold price is greater than $1,000/oz. and less than $1,300/oz.; and 5% when the gold price is greater than or equal to $1,300/oz. (Ernst and Young Global Ltd, 2014).  Referring to the General Code of Taxation, Ernst & Young Global Limited (2014) has summarized the taxation concerning the mining sector in Burkina Faso for the year 2014. Corporate income tax is 27.5% of taxable income, after depreciation with special regimes, including a reduction of 10% from the corporate income tax for mining companies, and dividend tax is 6.25%. Depreciation is based on the depreciation rates set out for factory materials and equipment by the General Tax Code before tax application. Details of the $887.20 for conducting laboratory tests on 39 kg sample are given in Table 5.   55 Table 5: Specific costs of the laboratory tests Details of the laboratory tests Values Drying 39 kg sample $0.6 Crushing 39 kg sample and pulverizing 50 g sub-sample $40 Splitting the sample $15.6 3 gravity tests $39 6 flotation tests $66 8 grinding (grinding tests and size reduction for flotation and gravity tests) $40 4  cyanide bottle roll tests $56 Direct reading of 12 leached gold solutions by the ICP $84 16 fire assays $216 22 aqua regia tests with ICP analysis. $330 TOTAL $887.2  Capital costs Estimates of the capital costs for the plant and laboratory are given in Table 6 and Table 7. The starting model of the pole has for purpose to process efficiently all type of mined ore. Therefore capital cost is the same in the simulation of the three scenarios, although a part of the capital assets are required in each scenario. Table 6: Capital costs for the processing plant   Units Values Jaw crusher $ 5,625 Cone crusher $ 43,500 4 Ball mill (with chrome forged carbon steel ball) $ 51,440 2 Gravity concentrators $ 26,000 Shaking table $ 2,000 Conditioning tank $ 2,500 6 Flotation cells $ 24,000 Thickening of flotation concentrate $ 5,000 Leach reactor  $ 30,000 4 Agitated tanks $ 32,000 Solid/liquid separation $ 20,000 Merrill Crowe $ 71,500 SO2/Air (2 agitated tanks) $ 20,000 Induction furnace  $ 5,000 Equipment cost $ 338,565 Generating sets  $ 136,364 Plant installation $ 14,973 Working tools and safety equipment $ 10,157 TOTAL CAPITAL COST $ 500,059    56 Equipment costs are direct quotations from manufacturers and estimates based on the market’s prices.    Generating sets are five generating sets of 30 kW and two generating sets of 20 kW at respective unit price of $20,321 and $17,380 that include maintenance and installation.  Plant installation is a rough estimation for key in hand construction in rural areas for 150 m2.  The working tools and safety equipment are estimated to be 3% of equipment costs and refer to gloves, masks, helmets, glasses, smelting tools (crucibles, tongs, moulds etc.) and analysers (for the conditioning tank, flotation process, cyanidation process and cyanide destruction process).   Table 7: Capital costs for the laboratory   Units Values Jaw crusher $ 2,000 Hammer mill $ 2,500 2 ball mill $ 7,500 Pulverise $ 2,500 Set of 5 splitter riffle $ 600 Vibrating screen $ 2,000 Gravity concentrator $ 3,500 Agitator rolls (bottle type) $ 3,000 Air drying oven $ 2,500 6 laboratory flotation cells  $ 7,500 ICP spectrometer $ 50,000 Fire assay furnace $ 3,500 Cupellation furnace $ 3,000 Fume hood $ 2,500 Equipment cost $ 92,600 Generating set $ 17,380 Laboratory installation $ 3,922 Working tools, security and safety equipment $ 2,778 TOTAL CAPITAL COST $ 116,679  Equipment costs for the laboratory are also direct quotations from manufacturers and estimates based on market prices.  Generating set is 20 kW at price of $17,380 that includes maintenance and installation. Laboratory installation is a rough estimation for key in hand construction in rural areas for 30 m2.     57 The working tools and safety equipment are estimated to be 3% of equipment costs and refer to safety gloves, safety masks, safety helmets, safety goggles, fire assay tools (crucibles, tongs, moulds, scales, etc.) and laboratory tools (protective chemical clothing, beakers, test tubes, flasks, cylinders, pH meters, thermometers, scale, hot plate, microscope, etc.).   Operating costs Estimates of the operating costs during dry season are given in Table 8, considering the daily feed tonnage of 20, as detailed in the production schedules (see Appendix A, Appendix B and Appendix C). The operating cost for the laboratory is given in Table 9, considering the operating time for laboratory as detailed in Appendix D.  Indeed, operating time to process 20 tonnes of ore is determined to 8 hours in scenario A, 34 hours in scenario B and 38 hours in scenario C, as indicated in the production schedule of each scenario. The operating time to conduct all the laboratory tests on a representative sample of a batch is about 26 hours.  Table 8: Operating costs of the different scenarios of the plant   Scenarios   Units  A B C Total labor cost $/month 8,150 8,150 8,150 Tax on salaries (TPA) $/month 326 326 326 Tax on salaries (CNSS) $/month 1,304 1,304 1,304 Maintenance cost $/month 846 846 846 Power supply cost (gasoil for generating sets) $/month 2,300 7,466 10,427 Water supply cost $/month 2,340 3,342 2,807 Smelting reagents (borax and soda ash) $/month 744 744 744 Flotation reagents (PAX, pine oil, soda ash) $/month 0 1,318 0 Cyanidation reagents (NaCN, lead nitrate, Ca(OH)2) $/month 0 129 1,290 SO2/Air reagents (SO2, Ca(OH)2, CuSO4-5H2O) $/month 0 317 3,173 Merrill-Crowe reagents (zinc, lead nitrate and H2SO4) $/month 0 26 262 Total operating cost  $/month 16,009 23,969 29,330  Labor cost in the processing plant is simulated considering three shifts of eight hours each for operators and their assistants in order to have the plant working full time. One operator and two assistants work in each shift at a monthly salary of $800 for the operators and $400 for the   58 assistants. The simulation also includes two supervisors at a monthly salary of $1,000 and one manager at a monthly salary of $1,350.  Taxes on salaries comprise the TPA (Patronal Tax of Apprenticeship), which represents 8% of expatriate salaries and 4% of national salaries and the CNSS (Contribution for social security), which include the retirement pension (5.5% for employee and 5.5% for employer, with a maximum taxable basis of $1,000), professional risk (3.5% only for the employer, with a maximum taxable basis of $1,000) and family allowances (7% only for the employer, with a maximum taxable basis of $1,000).   The annual maintenance cost has been estimated to be 3% of the equipment cost. Power supply is calculated considering a combination of generating sets of 20 kW, with consumption of 3 liter/hour of gasoil, and 30 kW, with consumption of 5 liter/hour of gasoil. 100 kW is delivered for four hours and 20 kW is delivered for two hours in a daily operation of scenario A. For simplicity, including the variation of power when the processing of the next batch starts, 120 kW is delivered for nine hours, 40 kW is delivered for four hours and 20 kW is delivered for 11 hours in daily operation of scenario B. For simplicity, as stated above, 150 kW is delivered for three hours, 100 kW is delivered for five hours and 70 kW is delivered for 16 hours in a daily operation of scenario C. The selected price for gasoil is US $1.05, which is an average of the price over a period of two years in Burkina (2015 and 2016) and which does not vary significantly because of the regulation policy through subsidy by the National Company for Oil and Gas (SONABHY).  Water cost is calculated considering the water requirements in each scenario as defined in the preliminary assumptions (Table 3) and the price for water of $2.2/m3, which is provided by the National Office for Water and Sanitization (ONEA) and includes service fee, sanitization fee and the value added tax (VAT).  Reagent cost required by the plant operation (smelting, flotation, cyanidation, cyanide destruction and zinc cementation) for borax, soda ash, pine oil, potassium amyl xanthate (PAX), sodium cyanide (NaCN), alkaline calcium hydroxide (Ca(OH)2), sulfur dioxide (SO2), copper sulfate (CuSO4-5H2O), lead nitrate and sulfuric acid (H2SO4) are detailed in Table 10.   59  Table 9: Laboratory operating costs   Units  Values  Total labor cost $/month 8,150 Tax on salaries (TPA) $/month 326 Tax on salaries (CNSS) $/month 1,304 Maintenance cost $/month 232 Power supply cost (gasoil for generating set) $/month 2,268 Water supply cost $/month 14 Reagents (borax, soda ash, PAX, pine oil, HNO3, HCl, Ca(OH)2, NaCN and Ag collectors) $/month 438 Total operating cost  $/month 12,732  Labor cost for the laboratory is simulated considering three shifts of eight hours each for operators in order to have the laboratory working full time. Two operators work in each shift at a monthly salary of $800. The simulation also includes two supervisors at a monthly salary of $1,000 and one manager at a monthly salary of $1,350.  Taxes on salaries comprise the TPA (Patronal Tax of Apprenticeship), which represents 8% of expatriate salaries and 4% of national salaries and the CNSS (Contribution for social security), which include the retirement pension (5.5% for employee and 5.5% for employer, with a maximum taxable basis of US$1,000), professional risk (3.5% only for the employer, with a maximum taxable basis of US$1,000) and family allowances (7% only for the employer, with a maximum taxable basis of US$1,000).  The annual maintenance cost has been estimated to be 3% of the equipment cost.  Power supply is for one generating set of 20 kW with consumption of 3 liter/hour of gasoil, delivering power for 24 hours. The selected price for gasoil is also $1.05, as an average of the price over a period of two years in Burkina (2015 and 2016).  Water cost is calculated considering the laboratory requirement as defined in the preliminary assumptions (Table 3) and the price for water of $2.2/m3, which is provided by the National Office for Water and Sanitization (ONEA) and includes service fee, sanitization fee and the value added tax (VAT).    60 Reagent cost required by the laboratory for borax, soda ash, pine oil, potassium amyl xanthate (PAX), sodium cyanide (NaCN), alkaline calcium hydroxide (Ca(OH)2), hydrochloric acid (HCl), nitric acid (HNO3) and silver collectors, are also given in Table 10.  Table 10: Specific costs of the reagents  Details of the reagents Unit Values Borax g $0.008 Soda ash g $0.0033 Pine oil ml $0.002 Potassium Amyl Xanthate (PAX) g $0.0027 Sodium cyanide (NaCN) kg $2.15 Alkaline calcium hydroxide (Ca(OH)2) g $0.005 Sulfur dioxide (SO2) kg $1.5 Copper sulfate (CuSO4-5H2O) g $0.0044 Zinc kg $10 Lead nitrate  g $0.2 Sulfuric acid (H2SO4) kg $0.275 Hydrochloric acid (HCl) ml $0.0039 Nitric acid (HNO3) ml $0.0046 Silver collectors g $6  Financial results Summary of the financial results from the simulation is given in Table 11.  Table 11: Financial summary   Scenarios   Unit A B C Simulation period years 5 5 5 Processed ore (without operation in rainy season) tonnes 24,000 24,000 24,000 Gold price $/g of gold 37.21 37.21 37.21 Gold price of the D.A $/g of gold 35.35 35.35 35.35 Operating cost $ 625,678 943,358 1,158,076 Payment to laboratory $ 1,064,640 1,064,640 1,064,640 Payment to TMF $ 960,000 960,000 960,000 Royalty tax $ 143,779 140,029 147,030 Milling cut-off grade g/tonne 1.05 1.30 1.52 Model cut-off grade (for the plant to operate) g/tonne 5.75 5.60 5.88 Payment to artisanal miners at the model cut-off grade $ 623,171 936,829 1,159,000   61  The milling cut-off grade does not consider the TMF cost, the cost of laboratory tests, the royalty and the payment repartition between miners and the plant manager. Therefore, the difference between the model cut-off grade and milling cut-off grade is the cost of the setup contractual parameters for the simulation. Thus, the stakeholders have to properly define in the contracts, the different prices, penalties and eventual variable fees such as processing service fees for low grades ores, in order for the model to properly share the risks and benefits for all the stakeholders.  Table 12 presents the simulation results and taxes application at two gold grades (9 grams/tonne and 10 grams/tonne) to evaluate the gold grade impacts on the stakeholders’ revenues in the suggested model parameters.    62 Table 12: Simulation results at different gold grade (9 g/t and 10 g/t)   Scenarios  Unit A B C Simulation period years 5 5 5 Processed ore (without operation in rainy season) tonnes 24,000 24,000 24,000 Gold recovery % 70% 85% 90% Discount rate % 10% 10% 10% Ore grade of 9 g/t Gross revenue of the model $ 5,626,152 6,831,756 7,233,624 Capital cost $ 504,061 507,474 507,474 Operating cost $ 636,377 952,770 1,165,776 Pre-tax NPV (at 10% discount rate) for the plant $ 233,201 407,704 383,762 Total depreciation prior to taxation $ 338,565 338,565 338,565 Taxable income $ 454,908 639,042 613,778 Corporate income tax $ 79,609 111,832 107,411 Tax on dividend (IRVM) $ 28,432 39,940 38,361 After-tax NPV for the plant (at 10% discount rate) $ 155,366 298,364 278,744 Revenue of authorities (royalty, income tax and IRVM) $ 333,087 425,043 435,117 Payment to artisanal miners by the DA $ 1,547,579 2,096,129 2,278,979 Payment to laboratory $ 1,064,640 1,064,640 1,064,640 Pre-tax NPV (at 10% discount rate) for the laboratory $ 318,737 318,737 318,737 Payment to TMF $ 960,000 960,000 960,000 Payback time (without stoppage of activity in rainy season) months 22 18 18 Ore grade of 10 g/t Gross revenue of the model $ 6,251,280 7,590,840 8,037,360 Capital cost $ 504,061 507,474 507,474 Operating cost $ 636,377 952,770 1,165,776 Pre-tax NPV (at 10% discount rate) for the plant $ 448,846 669,559 661,020 Considered depreciation prior to taxation $ 338,565 338,565 338,565 Taxable income $ 682,454 915,348 906,338 Corporate income tax $ 119,430 160,186 158,609 Tax on dividend (IRVM) $ 42,653 57,209 56,646 After-tax NPV for the plant (at 10% discount rate) $ 332,078  512,942 505,945 Revenue of authorities (royalty, income tax and IRVM) $ 412,134 521,029 536,750 Payment to artisanal miners by the DA $ 1,832,012 2,441,512 2,644,679 Payment to laboratory $ 1,064,640 1,064,640 1,064,640 Pre-tax NPV (at 10% discount rate) for the laboratory $ 318,737 318,737 318,737 Payment to TMF $ 960,000 960,000 960,000 Payback time (without stoppage of activity in rainy season) months 17 14 14  A discount rate of 10% has been chosen to address the market risks of the scenario. With risks on price and currency changes considered in the cashflow, the discount rate simply accounts for the   63 interest return investors should expect from the market when making an investment. 10% discount rate represents the interest rate on loans from banks in Burkina Faso. 0, 0 and 0 details respectively the economic simulation of scenarios A, B and C.  5.3 Economic benefits for the attractiveness of stakeholders The economic simulation evaluates the model performance for the different stakeholders at a 20 tonnes/day operation over five years, considering the model organization and setup agreements. The payment to the TMF is set to $40/tonne of tailing, the laboratory tests are set up to $889.20/sample, the DA’s gold price is $35.35/g and the payment repartition between artisanal miners and investors of the processing plant is 50/50 of the gross revenue after deduction of the payment for TMF, laboratory tests and royalty tax.  Considering all the operating costs supported by the plant’s gross revenue, the ore cut-off grade is about 5.75 g/t in scenario A, 5.60 g/t in scenario B and 5.88 g/t in scenario C, as defined in Table 11. Below these grades, other suggestions have to be considered by the plant operator in conjunction with the DA. Indeed, there is still opportunity for all the stakeholders to fairly benefit of the model, since the ore grades below the model cut-off grades are still higher than the milling grades (1.05 g/t in scenario A, 1.30 g/t in scenario B and 1.52 g/t in scenario C). Therefore, the contracts have to be well defined in the first instance in order to consider various ore grade ranges, and then the laboratory tests results have to be sufficiently reliable for the investors of the plant to reduce their risks.  In case some parts of the processing cost have to be supported by artisanal miners, the suggested cost has to consider the current processing cost in ASM sites, in order to keep the pole model attractive for artisanal miners. Table 13 estimates this cost to be $4,063 for 20 tonnes of ore to be processed by artisanal miners, considering the unit cost of the inputs in artisanal mining activity in Burkina Faso as described by sba -Ecosys-CEDRES (2011) and Roamba (2014).  The authorities directly benefit from the model by controlling the gold exportation and therefore avoiding the 90% tax evasion in artisanal mining activities mentioned by sba -Ecosys-CEDRES (2011). Further taxes can also be applied with the organization of the artisanal mining activity set   64 out in the model, such as the corporate income tax and the taxes on dividends that are applied to the processing plant. Taxation of the laboratory and TMF should also be considered, since they are considered as independent activities.  The investors in the TMF have a business opportunity, globally evaluated to be $960,000 in the suggested simulation of the model, for five years management of approximately 20 tonnes/day of tailings. In case the contract stipulates a penalty for non-delivery of minimum monthly tonnage of tailings, the investors of TMF would have fewer risks in the model. Thus, it is the responsibility of the TMF’s investors and manager to be able to properly collect and manage the tailings in a safe, and environmentally and economically responsible manner.  The investors in the laboratory have a pre-tax NPV at a 10% discount rate of $318,737 for five years activity based on the simulated model, as detailed in 0. At a price of $887.20/sample, the gross revenue is considered to be $1,064,640 for 1,200 tested samples over five years and the revenue of the laboratory is designed to be related to the number of samples analysed. Thus, an increase in the plant operation, which would require more samples to be analysed, is a potential mechanism to positively impact the laboratory revenue. In this, case the laboratory would likely have to increase its capital investment to satisfy the fast provision of laboratory test results, as indicated in the contracts.  The artisanal miners benefit mostly from the pole, with no required investment for greater gold extraction from their ore. Even if miners participate in the laboratory costs, TMF costs and royalty taxes, there is more gold to recover through the model compared to usual extraction methods, which are typically limited to 30% gold recovery (Gueye, 2001). Besides receiving a fast payment (corresponding to the laboratory testing time) after delivery of their ore, miners have the possibility to save the money of their processing costs (see Table 13).   65 Table 13: Estimation of the artisanal miners’ savings by using the model  Processing inputs in ASM Units Total costs for 20 tonnes of ore Water $10.03/m3 $602 Mercury $3.6/14,4 g of metallic Hg $1,440 Crushing $16/ tonne of ore $320 Grinding $58.85/ tonne of ore $1,177 Washing (sluice box) $20.06/ tonne of ore $401 Cyanidation $6.15/ tonne of ore $123 Total costs for 20 tonnes of ore $ $4,063  5.4 Ability to respond to environmental and socio-economic impacts 5.4.1 Technical parameters A mechanized processing plant incorporating the crushing, grinding, gravity separation, gold extraction and smelting is a clear innovation compared to the current extraction methods of artisanal miners in Burkina Faso (see Chapter 3), which allows more gold recovery and therefore opportunities for investment.   The plant is planned to be operated according to the expected type of ore received, with respect to the environmental requirements concerning mercury and cyanide, particularly. The environmental and health threats related to mercury are not considered in the model, since no mercury is planned to be used. However, mercury burning amalgam exposes miners and the surrounding communities to mercury inhalation, while the mercury released in tailings can dissolve in freshwater to ultimately form methylmercury (MeHg) through the ecological food chain. This is the most poisonous form of mercury targeting, essentially, the human nervous system. MeHg accumulates and biomagnifies in the food chain with dramatic neurological effects, particularly in children, neonates and foetuses, such as impairment, sensory and auditory disturbance, cardiovascular diseases and reproductive effects with risk of abortion for pregnant women (Xinbin Feng, 2010). Symptoms, such as insomnia, fatigue, weakness, anorexia, weight loss, gastrointestinal disturbance and erethism may occur at high exposure (Bernhoft, 2012). Mercury vapor inhalation is also an important threat for artisanal miners in Burkina Faso, since the average mercury concentration of miners surveyed by Ouedraogo (2006) was about 194.5 μg Hg/g of creatinine. In addition, 68.8% of the surveyed miners had higher mercury concentration in their urine than the recommended reference value of 35 μg Hg/g of creatinine.     66 Thus, the model presented here can help the authorities to efficiently comply with the Minamata convention on mercury that was signed in October 2013 with accession in April 2017. Indeed, this convention states in its first article its objective of protecting human health and the environment from anthropogenic emissions and releases of mercury and mercury compounds (UNEP, 2013). Hence, the designed pole, as a provision of technical and financial assistance, can efficiently pursue the reduction and elimination of mercury as developed in article 7 related to artisanal and small-scale gold mines.  Concerning cyanide, the model operates a proper management system by eventually destroying the WAD cyanide by the SO2/Air process. Although cyanide has low persistence in the environment (no accumulation and biomagnification in the food chain) and low chronic toxicity, cyanide in low concentration as in ASM is mostly toxic and detrimental for wildlife, birds and aquatic life by reduction of swimming performance, inhibiting reproduction, disruption of respiration and delayed mortality (ICMC, 2014). In this purpose, the TMF plans the management and monitoring of the slurry and water from the processing plant, while the DA regularly controls the operation of the TMF.  5.4.2 Infrastructural and organizational parameters The model improves the organization of the artisanal mining activity in term of transparency with all the shareholders expected to be fairly remunerated by respecting their defined tasks. Indeed, the DA has the responsibility to export the produced gold and thus knows how much tax to apply to each stakeholder. In addition, the DA is the only actor proceeding to payment of the stakeholders according to the basis of agreements in contracts and the delivered reports (reports from the TMF on the received tailings, report from the plant on the produced gold and delivered tailing, laboratory results and report on the tested samples). Thus, reports have to match and stakeholders have means of control through the supervision of the DA. Besides the reports, the DA also monitors and controls each of the infrastructures (plant, TMF and laboratory) to ensure that the environmental aspects are strictly respected.  Moreover, authorities have the possibility by getting involved into the pole, to be better aware of situations on artisanal mining sites on the pole. Therefore, authorities can effectively plan further   67 development of the pole by associating the other stakeholders and implement training and sensitization programs.     5.4.3 Educational parameters The model undertakes some important impacts related to the lack of education of artisanal miners, in term of better recoveries, reduction of the chemical risks and proper management of water and tailings. Indeed, artisanal miners are neither required in the model to have the knowledge to operate the processing plant nor the business management knowledge to gain access to the pole financing. The investment to the pole is designed to be handled by private investors and the plant facilities (laboratories, TMF and plant) are designed to be operated by technicians.   5.4.4 Financial parameters The model offers investment opportunities at low risks in the artisanal mining sector, with the highest milling cut-off grade of 1.52 in scenario C, as a basis of negotiation for the investors in the plant operating at 20 tonnes per day. Thus, the different prices and payment distribution can be flexibly negotiated and determined under the supervision of the authorities, to ensure a better deal for miners, compared to their current working remuneration, in order for the pole to be attractive.  Although the geological gold reserves are still undetermined, the strategy is to start the pole by a small operation of 20 tonnes per day and plan development of the pole or eventual relocation based on the starting implementation results. Moreover, transportation of miners’ ore at attractive fees can be envisaged through new independent investors making the pole more attractive and economically beneficial for miners.  5.5 Conclusion In this chapter, the feasibility of the model has been analysed through a simulation of three different scenarios of the likely types of ore to be received, namely, the processing of placer and coarse gold ore in free milling and oxidized ores in scenario A, the processing of coarse and fine gold in free milling and oxidized ores (sulphide) in scenario B, the processing of coarse, fine and very fine gold in free milling and oxidized ores (oxide) in scenario C.   68  Since the gold reserves are undetermined in the region where the artisanal mining activities occur, a 20 tonnes/day operation for each scenario has been selected for simulation in this starting model of EGP, with the possibility for improvement over time in the processing capacity and methods.     For a 20 tonnes/day processing operation, the milling cut-off grades are about 1.05 g/t in scenario A, 1.30 g/t in scenario B and 1.52 g/t in scenario C, and therefore, the contracts between stakeholders in the model have to be well elaborated with various possibilities to minimize risks for each stakeholder. Indeed, considering all the operating costs with half of the TMF, laboratory, and royalty costs supported by the plant gross revenue, the plant cut-off grade is about 5.75 g/t in scenario A, 5.60 g/t in scenario B and 5.88 g/t in scenario C, as shown in Table 11.   Finally, the model tries somehow or another to directly face the different issues affecting in artisanal mining by improving the financial restrictions to implement technological services in artisanal mining sites. Moreover, the model improves the working organization for better distribution of revenues and control of the processing impacts on the environment and health.      69 Chapter 6 Conclusion and Recommendations 6.1 Major research findings and summary Shutting down all artisanal mining activities is not necessarily the adequate and best option in Burkina Faso, since artisanal mining has the potential for well distributed economic growth. Rather than fighting against the artisanal mining activity itself, the approach here is to address the factors affecting artisanal mining in order to make the activity sustainable. From this perspective, the factors analysed in Chapter 3 (technical, educational, financial, organizational and infrastructure parameters) affecting the environmental and socio-economic impacts of ASM, has helped model an approach of an economic growth pole for ASM as follows:  The model offers processing services to artisanal miners through a plant, which operates according to the laboratory tests.  The model requires the laboratory to conduct tests on the delivered ore, in order to determine the grade and the amount of extractable gold by a processing plant operation, so that the plant operator decides on the most profitable processing method and the DA allocates proceeds to miners’ through upfront payment according to the determined payment repartition.  The model requires the TMF to collect, handle and manage tailings from the processing plant according to the agreed TMF design and costs.  The model requires the authorities to pay for the processed gold at a negotiated price, handle the payment of the miners and investors and control the pole activity;   The model requires artisanal miners to still handle the mining part of the activity but also the haulage of their mined ore to the pole, if they wish to take advantage of the model’s service.  The model requires contracts between the stakeholders to first determine stakeholders’ revenue (price for sample tests by the laboratory, price for handling the tailings by the TMF, applied gold price by the DA and payment repartition between artisanal miners and the processing plant) and then guarantee effective application of the agreements through reports to the DA and regular control of the DA.  The model’s risks and limitations are mostly related to the fact that the gold reserves in the area of implementation are not determined prior to the pole implementation and artisanal miners have to trust the pole services. As a non-experimental approach to the artisanal mining sector, the   70 defined model of an economic growth pole has been analysed under certain conditions to demonstrate its applicability and its feasibility. For a simulation of 20 tonnes/day processing operation, results show a milling cut-off grade of 1.05 g/t in scenario A (processing of placer and coarse gold ore in free milling and oxidized ores), 1.30 g/t in scenario B (processing of coarse and fine gold in free milling and oxidized ores) and 1.52 g/t in scenario C (processing of coarse, fine and very fine gold in free milling and oxidized ores). Moreover, the simulation results indicate a model cut-off grade of 5.75 g/t in scenario A, 5.60 g/t in scenario B and 5.88 g/t in scenario C, considering all the operating costs with half of the TMF, laboratory and royalty costs supported by the plant gross revenue. Thus, contracts between stakeholders in the model have to be well elaborated with various possibilities depending on the defined gold grade by the laboratory, in order to minimize risks and cut-off grades for stakeholders in the model.  Finally, the model has some potential ability to respond to environmental and health issues in artisanal mining by facing parameters affecting those issues. Indeed, the model in the simulation avoids usage of mercury and suggests better options of gold recovery, in respect of the signed Minamata convention by Burkina Faso. In addition, the model suggests in facing the technical parameter a better management of the cyanide by destructing through SO2/Air of the free and WAD cyanides. As infrastructural parameters, the laboratory improves the efficiency of the model services, while the TMF improves the tailings and water management from the artisanal mining activity. Thus, miners are no longer required to meet financial requirements form banks as well as the required knowledge for proper and safe management of chemicals, water and tailings.   6.2 Further studies This thesis introduces an application of the EGP concept to artisanal mining as solution to the environmental, socio-economic impacts related to the activity. Thus, the thesis focuses essentially to demonstrate an implementation of the EGP concept and its feasibility for artisanal mining in Burkina Faso.  Based on the findings of this thesis, further research on this topic should address the following issues:   71  The specific locations of application of the model in Burkina Faso, along with the appropriate equipment by considering the artisanal mining rate, the availability of the inputs and the ore geology.  The appropriate measures and investments in the pole development to face the issues related to the mining part of ASM activities (collapses, abandoned mines, careless dynamites usage, lack of ventilation inside the pits etc.).  The appropriate measures and investments in the pole development to increase the processing capacity and methods, in order to process more economically all types of miners’ ore, which include sometimes refractory ore.  The feasible infrastructures and exportation circuits that can be considered by authorities in respect of the expected taxes and payment to receive.  The specific TMF that can implemented in such a pole, considering the receiving payment and technical parameters in Burkina Faso, in order to have a safe, sustainable and economically profitable facility.    72  References Bernhoft, R. 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Appendix A  Production schedule for scenario A     TIME 0h-1h 1h-2h 2h-3h 3h-4h 4h-5h 5h-6h 6h-7h 7h-8hJaw crusher XCone crusher X#1 Ball mill X X#2 Ball mill X X#3 Ball mill X X#4 Ball mill X XCentrifugal concentrator 1 X XCentrifugal concentrator 2 X XShaking table X XSmelting XLegendX : Processing task for a batch of 20 tonnes ore  78 Appendix B  Production schedule for scenario B  TIME 0h-1h 1h-2h 2h-3h 3h-4h 4h-5h 5h-6h 6h-7h 7h-8h 8h-9h 9h-10h 10h-11h 11h-12h 12h-13h 13h-14h 14h-15h 15h-16h 16h-17hJaw crusher XCone crusher X#1 Ball mill X X X X#2 Ball mill X X X X#3 Ball mill X X X X#4 Ball mill X X X XCentrifugal concentrator 1 X XCentrifugal concentrator 2 X XShaking table X XConditionning tank X X X X X X XRougher flotation (3 cells) X X X X X X X X X XScavenger flotation (3 cells) X X X X X X X X XFlotation concentrate thickner X X X X X X X X XIntensive cyanidationMerrill CroweSO2/AirSmelting TIME 17h-18h 18h-19h 19h-20h 20h-21h 21h-22h 22h-23h 23h-24h 24h-25h 25h-26h 26h-27h 27h-28h 28h-29h 29h-30h 30h-31h 31h-32h 32h-33h 33h-34hJaw crusher XCone crusher X#1 Ball mill X X X X#2 Ball mill X X X X#3 Ball mill X X X X#4 Ball mill X X X XCentrifugal concentrator 1 X XCentrifugal concentrator 2 X XShaking table X XConditionning tank X X XRougher flotation (3 cells) X X X X X XScavenger flotation (3 cells) X X X X X XFlotation concentrate thickner X X X X X X X X X X X XIntensive cyanidation X XMerrill Crowe X X X XSO2/Air XSmelting XLegendX : Processing task for the inital batch of 20 tonnes ore X : Processing task for the next batch of 20 tonnes ore 79 Appendix C  Production schedule for scenario C   TIME 0h-1h 1h-2h 2h-3h 3h-4h 4h-5h 5h-6h 6h-7h 7h-8h 8h-9h 9h-10h 10h-11h 11h-12h 12h-13h 13h-14h 14h-15h 15h-16h 16h-17h 17h-18h 18h-19hJaw crusher XCone crusher X#1 Ball mill X X X X#2 Ball mill X X X X#3 Ball mill X X X X#4 Ball mill X X X XCentrifugal concentrator 1 X XCentrifugal concentrator 2 X XShaking table X XAgitated leaching tanks (3 tanks) X X X X X X X X X X X XThickenerMerrill CroweSO2/AirSmeltingTIME 20h-21h 20h-21h 21h-22h 22h-23h 23h-24h 24h-25h 25h-26h 26h-27h 27h-28h 28h-29h 29h-30h 30h-31h 31h-32h 32h-33h 33h-34h 34h-35h 35h-36h 36h-37h 37h-38hJaw crusher XCone crusher X#1 Ball mill X X X X#2 Ball mill X X X X#3 Ball mill X X X X#4 Ball mill X X X XCentrifugal concentrator 1 X XCentrifugal concentrator 2 X XShaking table X XAgitated leaching tanks (3 tanks) X X X X X X X X X X X X X X XThickener X X X X X XMerrill Crowe X X X XSO2/Air XSmelting XLegendX : Processing task for the inital batch of 20 tonnes ore X : Processing task for the next batch of 20 tonnes ore 80 Appendix D  Production schedule for the laboratory  TIME 0h-1h 1h-2h 2h-3h 3h-4h 4h-5h 5h-6h 6h-7h 7h-8h 8h-9h 9h-10h 10h-11h 11h-12h 12h-13h1st stage crushing X2nd stage crushing XPulverization X1st ball mill for grinding test X X X2nd ball mill for size reduction X X X X XScreening of sub-sample X X X X X X X XConditioning 1 X XConditioning 2 X XConditioning 3 X XLeaching (time 1) after 1st grinding X X X X X XLeaching (time 2) after 1st grinding X X X X X X X X X X X XLeaching (time 3) after 1st grinding X X X X X X X X X X X XLeaching (time 1) after 2nd grinding X X X X X XLeaching (time 2) after 2nd grinding X X X X X X X X X X XLeaching (time 3) after 2nd grinding X X X X X X X X X X XLeaching (time 1) after 3rd grinding X X X X X XLeaching (time 2) after 3rd grinding X X X X X X X X X XLeaching (time 3) after 3rd grinding X X X X X X X X X XGRG test X X XFlotation (time 1) X X X X X XFlotation (time 2) X X X X X XFlotation (time 3) X X X X X XFire assay and ICP analyse X X X X X X X X XAssaying of leaching solution X X XAqua regia and ICP analyse X X X X X X X X X X XSettling test of the tails X X X X X X X X XTIME 13h-14h 14h-15h 15h-16h 16h-17h 17h-18h 18h-19h 19h-20h 20h-21h 21h-22h 22h-23h 23h-24h 24h-25h 25h-26hLeaching (time 1) after 1st grindingLeaching (time 2) after 1st grindingLeaching (time 3) after 1st grinding X X X X X X X XLeaching (time 1) after 2nd grindingLeaching (time 2) after 2nd grinding XLeaching (time 3) after 2nd grinding X X X X X X X X XLeaching (time 1) after 3rd grindingLeaching (time 2) after 3rd grinding X XLeaching (time 3) after 3rd grinding X X X X X X X X X XGRG testFlotation (time 1)Flotation (time 2)Flotation (time 3)Fire assay and ICP analyseAssaying of leaching solution X X X X X XAqua regia and ICP analyse X X X X X X X X X XSettling test of the tails X X X X X X 81 Appendix E  Economic simulation for scenario A  Unit TOTAL TOTALSimulation period Year 1 2 3 4 5 1 2 3 4 5Processed ore tonnes/year 4,800 4,800 4,800 4,800 4,800 24,000 4,800 4,800 4,800 4,800 4,800 24,000Total extracted gold at 70% recovery g/month 30,240 30,240 30,240 30,240 30,240 151,200 33,600 33,600 33,600 33,600 33,600 168,000Real gold price $/g 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21Gold price of the D.A $/g 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35Gross revenue from the model $ 1,125,230 1,125,230 1,125,230 1,125,230 1,125,230 5,626,152 1,250,256 1,250,256 1,250,256 1,250,256 1,250,256 6,251,280Gross revenue for the plant $ 534,484 534,484 534,484 534,484 534,484 2,672,422 593,872 593,872 593,872 593,872 593,872 2,969,358Gross revenue for artisanal miners $ 534,484 534,484 534,484 534,484 534,484 2,672,422 593,872 593,872 593,872 593,872 593,872 2,969,358Royalty tax $ 45,009 45,009 45,009 45,009 45,009 225,046 50,010 50,010 50,010 50,010 50,010 250,051Paiement to laboratory $ 212,928 212,928 212,928 212,928 212,928 1,064,640 212,928 212,928 212,928 212,928 212,928 1,064,640Paiement to TMF $ 192,000 192,000 192,000 192,000 192,000 960,000 192,000 192,000 192,000 192,000 192,000 960,000Operating costTotal labor cost $ 63,163 65,200 65,200 65,200 65,200 323,963 63,163 65,200 65,200 65,200 65,200 323,963Tax on salaries (TPA) $ 2,527 2,608 2,608 2,608 2,608 12,959 2,527 2,608 2,608 2,608 2,608 12,959Tax on salaries (CNSS) $ 10,106 10,432 10,432 10,432 10,432 51,834 10,106 10,432 10,432 10,432 10,432 51,834Maintenance cost $ 6,560 6,771 6,771 6,771 6,771 33,645 6,560 6,771 6,771 6,771 6,771 33,645Power supply cost (gasoil for generating sets) $ 17,821 18,396 18,396 18,396 18,396 91,405 17,821 18,396 18,396 18,396 18,396 91,405Water supply cost $ 18,132 18,717 18,717 18,717 18,717 92,998 18,132 18,717 18,717 18,717 18,717 92,998Smelting reagents (borax and soda ash) $ 5,766 5,952 5,952 5,952 5,952 29,574 5,766 5,952 5,952 5,952 5,952 29,574Total operating cost $ 124,074 128,076 128,076 128,076 128,076 636,377 124,074 128,076 128,076 128,076 128,076 636,377Capital costEquipment cost $ 338,565 0 0 0 0 338,565 338,565 0 0 0 0 338,565Generating sets $ 136,364 0 0 0 0 136,364 136,364 0 0 0 0 136,364Plant installation $ 14,973 0 0 0 0 14,973 14,973 0 0 0 0 14,973Working tools, security and safety equipment $ 10,157 0 0 0 0 10,157 10,157 0 0 0 0 10,157Working capital $ 4,002 0 0 0 0 4,002 4,002 0 0 0 0 4,002Total capital cost $ 504,061 0 0 0 0 504,061 504,061 0 0 0 0 504,061Pre-tax cashflow $ -318,619 181,440 181,440 181,440 181,440 407,141 -261,732 238,327 238,327 238,327 238,327 691,574Depreciation $ 67,713 67,713 67,713 67,713 67,713 338,565 67,713 67,713 67,713 67,713 67,713 338,565Taxable income $ 0 113,727 113,727 113,727 113,727 454,908 0 170,614 170,614 170,614 170,614 682,454Corporate income tax $ 0 19,902 19,902 19,902 19,902 79,609 0 29,857 29,857 29,857 29,857 119,430Tax on dividend (IRVM) $ 0 7,108 7,108 7,108 7,108 28,432 0 10,663 10,663 10,663 10,663 42,653Total Taxation $ 0 27,010 27,010 27,010 27,010 108,041 0 40,521 40,521 40,521 40,521 162,083After-tax cashflow $ -318,619 154,430 154,430 154,430 154,430 299,100 -261,732 197,806 197,806 197,806 197,806 529,491Ore grade of 9 g/t Ore grade of 10 g/t 82 Appendix F  Economic simulation for scenario B  Unit TOTAL TOTALSimulation period Year 1 2 3 4 5 1 2 3 4 5Processed ore tonnes/year 4,800 4,800 4,800 4,800 4,800 24,000 4,800 4,800 4,800 4,800 4,800 24,000Total extracted gold at 85% recovery g/month 36,720 36,720 36,720 36,720 36,720 183,600 40,800 40,800 40,800 40,800 40,800 204,000Real gold price $/g 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21Gold price of the D.A $/g 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35Gross revenue from the model $ 1,366,351 1,366,351 1,366,351 1,366,351 1,366,351 6,831,756 1,518,168 1,518,168 1,518,168 1,518,168 1,518,168 7,590,840Gross revenue for the plant $ 649,017 649,017 649,017 649,017 649,017 3,245,084 721,130 721,130 721,130 721,130 721,130 3,605,649Gross revenue for artisanal miners $ 649,017 649,017 649,017 649,017 649,017 3,245,084 721,130 721,130 721,130 721,130 721,130 3,605,649Royalty tax $ 54,654 54,654 54,654 54,654 54,654 273,270 60,727 60,727 60,727 60,727 60,727 303,634Paiement to laboratory $ 212,928 212,928 212,928 212,928 212,928 1,064,640 212,928 212,928 212,928 212,928 212,928 1,064,640Paiement to TMF $ 192,000 192,000 192,000 192,000 192,000 960,000 192,000 192,000 192,000 192,000 192,000 960,000Operating costTotal labor cost $ 63,163 65,200 65,200 65,200 65,200 323,963 63,163 65,200 65,200 65,200 65,200 323,963Tax on salaries (TPA) $ 2,527 2,608 2,608 2,608 2,608 12,959 2,527 2,608 2,608 2,608 2,608 12,959Tax on salaries (CNSS) $ 10,106 10,432 10,432 10,432 10,432 51,834 10,106 10,432 10,432 10,432 10,432 51,834Maintenance cost $ 6,560 6,771 6,771 6,771 6,771 33,645 6,560 6,771 6,771 6,771 6,771 33,645Power supply cost (gasoil for generating sets) $ 57,858 59,724 59,724 59,724 59,724 296,754 57,858 59,724 59,724 59,724 59,724 296,754Water supply cost $ 25,902 26,738 26,738 26,738 26,738 132,854 25,902 26,738 26,738 26,738 26,738 132,854Smelting reagents (borax and soda ash) $ 5,766 5,952 5,952 5,952 5,952 29,574 5,766 5,952 5,952 5,952 5,952 29,574Flotation reagents (PAX, pine oil, soda ash, Ca(OH)2) $ 10,217 10,547 10,547 10,547 10,547 52,404 10,217 10,547 10,547 10,547 10,547 52,404Cyanidation reagents (sodium cyanide, Ca(OH)2) $ 1,000 1,032 1,032 1,032 1,032 5,128 1,000 1,032 1,032 1,032 1,032 5,128SO2/Air reagents (SO2, Ca(OH)2, CuSO4-5H20) $ 2,459 2,539 2,539 2,539 2,539 12,614 2,459 2,539 2,539 2,539 2,539 12,614Merrill-Crowe reagents (zinc, lead nitrate and sulfuric acid) $ 203 210 210 210 210 1,041 203 210 210 210 210 1,041Total operating cost $ 185,760 191,752 191,752 191,752 191,752 952,770 185,760 191,752 191,752 191,752 191,752 952,770Capital costEquipment cost $ 338,565 0 0 0 0 338,565 338,565 0 0 0 0 338,565Generating sets $ 136,364 0 0 0 0 136,364 136,364 0 0 0 0 136,364Plant installation $ 14,973 0 0 0 0 14,973 14,973 0 0 0 0 14,973Working tools, security and safety equipment $ 10,157 0 0 0 0 10,157 10,157 0 0 0 0 10,157Working capital $ 5,992 0 0 0 0 5,992 5,992 0 0 0 0 5,992Total capital cost $ 506,051 0 0 0 0 506,051 506,051 0 0 0 0 506,051Pre-tax cashflow $ -272,585 227,473 227,473 227,473 227,473 637,308 -203,509 296,550 296,550 296,550 296,550 982,692Depreciation $ 67,713 67,713 67,713 67,713 67,713 338,565 67,713 67,713 67,713 67,713 67,713 338,565Taxable income $ 0 159,760 159,760 159,760 159,760 639,042 0 228,837 228,837 228,837 228,837 915,348Corporate income tax $ 0 27,958 27,958 27,958 27,958 111,832 0 40,046 40,046 40,046 40,046 160,186Tax on dividend (IRVM) $ 0 9,985 9,985 9,985 9,985 39,940 0 14,302 14,302 14,302 14,302 57,209Total Taxation $ 0 37,943 37,943 37,943 37,943 151,772 0 54,349 54,349 54,349 54,349 217,395After-tax cashflow $ -272,585 189,530 189,530 189,530 189,530 485,536 -203,509 242,201 242,201 242,201 242,201 765,296Ore grade of 9 g/t Ore grade of 10 g/t 83 Appendix G  Economic simulation for scenario C  Unit TOTAL TOTALSimulation period year 1 2 3 4 5 1 2 3 4 5Processed ore tonnes/year 4,800 4,800 4,800 4,800 4,800 24,000 4,800 4,800 4,800 4,800 4,800 24,000Total extracted gold at 90% recovery g/month 38,880 38,880 38,880 38,880 38,880 194,400 43,200 43,200 43,200 43,200 43,200 216,000Real gold price $/g 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21 37.21Gold price of the D.A $/g 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35 35.35Gross revenue from the model $ 1,446,725 1,446,725 1,446,725 1,446,725 1,446,725 7,233,624 1,607,472 1,607,472 1,607,472 1,607,472 1,607,472 8,037,360Gross revenue for the plant $ 687,194 687,194 687,194 687,194 687,194 3,435,971 763,549 763,549 763,549 763,549 763,549 3,817,746Gross revenue for artisanal miners $ 687,194 687,194 687,194 687,194 687,194 3,435,971 763,549 763,549 763,549 763,549 763,549 3,817,746Royalty tax $ 57,869 57,869 57,869 57,869 57,869 289,345 64,299 64,299 64,299 64,299 64,299 321,494Paiement to laboratory $ 212,928 212,928 212,928 212,928 212,928 1,064,640 212,928 212,928 212,928 212,928 212,928 1,064,640Paiement to TMF $ 192,000 192,000 192,000 192,000 192,000 960,000 192,000 192,000 192,000 192,000 192,000 960,000Operating costTotal labor cost $ 63,163 65,200 65,200 65,200 65,200 323,963 63,163 65,200 65,200 65,200 65,200 323,963Tax on salaries (TPA) $ 2,527 2,608 2,608 2,608 2,608 12,959 2,527 2,608 2,608 2,608 2,608 12,959Tax on salaries (CNSS) $ 10,106 10,432 10,432 10,432 10,432 51,834 10,106 10,432 10,432 10,432 10,432 51,834Maintenance cost $ 6,560 6,771 6,771 6,771 6,771 33,645 6,560 6,771 6,771 6,771 6,771 33,645Power supply cost (gasoil for generating sets) $ 80,805 83,412 83,412 83,412 83,412 414,453 80,805 83,412 83,412 83,412 83,412 414,453Water supply cost $ 21,758 22,460 22,460 22,460 22,460 111,598 21,758 22,460 22,460 22,460 22,460 111,598Smelting reagents (borax and soda ash) $ 5,684 5,952 5,952 5,952 5,952 29,492 5,684 5,952 5,952 5,952 5,952 29,492Cyanidation reagents (sodium cyanide, Ca(OH)2) $ 9,998 10,320 10,320 10,320 10,320 51,278 9,998 10,320 10,320 10,320 10,320 51,278SO2/Air reagents (SO2, Ca(OH)2, CuSO4-5H20) $ 24,594 25,387 25,387 25,387 25,387 126,143 24,594 25,387 25,387 25,387 25,387 126,143Merrill-Crowe reagents (zinc, lead nitrate and sulfuric acid) $ 2,030 2,096 2,096 2,096 2,096 10,414 2,030 2,096 2,096 2,096 2,096 10,414Total operating cost $ 227,223 234,638 234,638 234,638 234,638 1,165,776 227,223 234,638 234,638 234,638 234,638 1,165,776Capital costEquipment cost $ 338,565 0 0 0 0 338,565 338,565 0 0 0 0 338,565Generating sets $ 136,364 0 0 0 0 136,364 136,364 0 0 0 0 136,364Plant installation $ 14,973 0 0 0 0 14,973 14,973 0 0 0 0 14,973Working tools, security and safety equipment $ 10,157 0 0 0 0 10,157 10,157 0 0 0 0 10,157Working capital $ 7,415 0 0 0 0 7,415 7,415 0 0 0 0 7,415Total capital cost $ 507,474 0 0 0 0 507,474 507,474 0 0 0 0 507,474Pre-tax cashflow $ -278,901 221,158 221,158 221,158 221,158 605,729 -205,761 294,298 294,298 294,298 294,298 971,429Depreciation $ 67,713 67,713 67,713 67,713 67,713 338,565 67,713 67,713 67,713 67,713 67,713 338,565Taxable income $ 0 153,445 153,445 153,445 153,445 613,778 0 226,585 226,585 226,585 226,585 906,338Corporate income tax $ 0 26,853 26,853 26,853 26,853 107,411 0 39,652 39,652 39,652 39,652 158,609Tax on dividend (IRVM) $ 0 9,590 9,590 9,590 9,590 38,361 0 14,162 14,162 14,162 14,162 56,646Total Taxation $ 0 36,443 36,443 36,443 36,443 145,772 0 53,814 53,814 53,814 53,814 215,255After-tax cashflow $ -278,901 184,714 184,714 184,714 184,714 459,957 -205,761 240,484 240,484 240,484 240,484 756,174Ore grade of 9 g/t Ore grade of 10 g/t 84 Appendix H  Economic simulation for the laboratory     Unit TOTALSimulation period Year 1 2 3 4 5Tested samples samples/year 240 240 240 240 240 1,200Price for full test US $ per sample 887.20 887.20 887.20 887.20 887.20 887.20Generated gross revenue for the lab $ 212,928 212,928 212,928 212,928 212,928 1,064,640Operating costTotal labor cost $ 63,163 65,200 65,200 65,200 65,200 323,963Tax on salaries (TPA) $ 2,527 2,608 2,608 2,608 2,608 12,959Tax on salaries (CNSS) $ 10,106 10,432 10,432 10,432 10,432 51,834Maintenance cost $ 1,794 1,852 1,852 1,852 1,852 9,202Power supply cost (gasoil for generating set) $ 17,577 18,144 18,144 18,144 18,144 90,153Water supply cost $ 24 25 25 25 25 125Reagents (Borax, Soda ash, PAX, pine oil, HNO3, HCL, Ca(OH)2, sodium cyanide and Ag inquarts) $ 2,669 2,756 2,756 2,756 2,756 13,691Total operating cost $ 97,860 101,017 101,017 101,017 101,017 501,926Capital costEquipment cost $ 92,600 0 0 0 0 92,600Generating sets $ 17,380 0 0 0 0 17,380Plant installation $ 3,922 0 0 0 0 3,922Working tools, security and safety equipment $ 2,739 0 0 0 0 2,739Working capital $ 2,561 0 0 0 0 2,561Total capital cost $ 119,201 0 0 0 0 119,201Pre-tax cashflow $ -4,133 111,911 111,911 111,911 111,911 443,513Pretax NPV (at 10% discount rate) $ 318,737Payback time (without stoppage of activity) months 9

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