Liberia’s artisanal mines: Rethinking formality

This Column is based on the paper entitled "Gold and diamond artisanal mining in Liberia: Under the umbrella of (in)formality?" By Rémi Bazillier (University Paris 1, CNRS, CES), Beatrice Gibertini (University Paris 1, CNRS, CES & Vrije Universiteit Amsterdam), Stephen Jackson (University Paris 1, CNRS, CES)

✍️ Written by  Sara George

It is common to assume that a country abundant in natural resources, such as gold and diamonds, would be wealthy and that its population would enjoy prosperity. Yet, it is difficult to reconcile this expectation with the reality that many people working in these sectors remain poor.

In Liberia, artisanal mining of gold and diamonds provides a crucial source of livelihood for many, but it is largely conducted outside formal regulatory frameworks, meaning that miners operate outside government regulations and official licenses. This informality limits workers’ benefits and raises significant challenges related to safety, environmental impact, and human rights including child labor (Hilson, 2010; Hilson, 2002; Aryee et al., 2003;).

This article examines the operations of artisanal mining in Liberia, highlighting the differences between the gold and diamond sectors and analyzing the effects of formality and informality on mining practices, workers, and local communities. Its purpose is to illuminate the practical complexities and challenges of regulating this sector, beyond the mere issuance of licenses or laws, in order to inform more effective policies that support both workers and communities.

How artisanal mining works in Liberia?

Artisanal mining in Liberia refers to small-scale, labor-intensive mining carried out by individuals or small teams. These operations usually use simple tools and low technology, making them very different from large industrial mines. Each mining site is often owned by a miner who may or may not have an official license.

Mining teams are made up of diggers, who do the physical extraction, supervisors, and supporters, local investors who provide tools, food, and sometimes cash. Profits are usually shared between diggers and miners, often in a 50/50 or 70/30 ratio. Supporters play a major role in financing operations, especially for diamond mining, but this also creates dependency and potential exploitation.

Who really pays the price? Working conditions and social challenges

The artisanal mining sector in Liberia centers on two main minerals: gold and diamonds, each with its own dynamics and risks. Diamond mining is risky but can be very rewarding. Diamonds are rare and unpredictable so, finding even one can completely change a miner’s life. But theft is a big concern as losing just one diamond can mean losing months or even years of hard work. On the other hand, gold mining offers smaller yet more consistent returns, making it a more stable source of daily income.

These differences shape the social and economic structure of the sector. Diamond miners often depend heavily on supporters to finance tools and food as there can be long periods without discoveries, which create relationships of debt and dependency. However, gold miners usually work more on their own, facing their own serious risks, like mercury exposure when separating gold and unpredictable, unsafe working conditions.

We can also observe social problems in this sector where artisanal mining also reflects inequalities in gender and power. For instance, women are more present in gold mining, but their work is often undervalued, and they struggle to find male labor support unless they can offer wages or food. Moreover, other issues can be present like child labor, highlighting the human cost of these informal economies.

Despite these challenges, artisanal mining is deeply embedded in local economies. It provides livelihoods, supports families, and contributes significantly to local communities, even if much of it remains informal, outside official government rules and licenses.

Methodology and data collection 

Since much of artisanal mining in Liberia is informal and not officially recorded, researchers turned to extensive fieldwork to gather all the information they needed. They first analyzed the national mining register (2000–2022) to locate “Class C” artisanal licenses. And to capture the many informal sites, they conducted field visits across Gbarpolu County, one of Liberia’s main mining regions. Visiting over 200 communities and mapping 174 mining sites, they relied on local town chiefs to identify both formal and informal mines. Through interviews and focus groups with miners, women, and local traders, the team gained valuable insights into daily practices, challenges, and community dynamics. By combining official data with on-the-ground observations, the researchers were able to paint a more realistic picture. This mixed approach allows researchers to understand not only where mining happens, but also how it works socially and economically.

The researchers also decide to analyze both active and expired licenses. The idea of including expired ones was important because in Liberia, many mines keep operating even after their licenses expire; due to high renewal costs or administrative delays (as it can take 6 months for a one-year license).

Gbarpolu County was chosen for the fieldwork because it has a large number of both gold and diamond licenses, making it one of the country’s most active mining areas. 

What did researchers find?

In Gbarpolu County, researchers looked at how close small gold and diamond mines are to official mining licenses. Gold mines are scattered all over, especially at the edges of the county, and many operate without a license. To find out whether this has always been the case for gold mines or if some licenses had just expired and weren’t renewed in time, the researchers included expired licenses in their analysis. They found that the overall picture didn’t change, suggesting that most gold mines probably never had a license in the first place.

Diamond mines, on the other hand, are concentrated in specific areas and usually close to licenses. Interestingly, one license can cover multiple mines at once, for example, researchers found that in some areas, one license applied to up to 14 mines. This means the license is for a big area, and many mines in that area are considered under the same legal permission, which makes it easier for the authorities to monitor them. Also, as figure 4 and 5 represent, diamond mines are very close to each other, with an average distance of 0.7 km between them, while gold mines are more spread out, averaging 2.3 km apart. This shows that diamond mining is easier to formalize and regulate, while gold mining remains more dispersed and often informal.

Moreover, researchers interviewed town chiefs to understand how local communities view formal vs. informal mining and they found that about half of the mines were considered “formal” by chiefs (60% for gold and 56,5% for diamonds), even if they didn’t have official licenses. And while diamond towns had more mines and licenses in absolute numbers, we can observe that the difference between the share of licensed gold and diamond mines is not significant. 

Why formalization matters

Formalization is a key step in strengthening any economy. When economic activities become part of the formal system, they can be regulated, taxed, and supported more effectively. It helps governments collect revenue, ensure fair competition, and provide workers with legal rights and social protection. Formalization also encourages productivity and access to credit, training, and markets, which are often unavailable in the informal sector.

In the context of artisanal mining, the objectives of formalization are not always clear. In Liberia, most policies focus on granting miners a Class C license, which allows small-scale mining but restricts the use of heavy machinery and limits the adoption of better techniques. As a result, many miners remain trapped in low-productivity activities, while diggers (the workers who extract minerals) continue to operate informally and without legal protection. Moreover, mining authorities often lack the necessary resources and staff to enforce regulations effectively. For instance, field agents frequently do not have vehicles or basic equipment to conduct proper inspections. 

As for the important goal increase government revenue, long delays, high fees, and complex licensing procedures discourage miners from registering their operations (Chen,2012). In some cases, local mining agents rely on informal payments from communities, creating a cycle that further undermines formalization efforts.

Overall, while formalization has the potential to bring positive change to Liberia’s artisanal mining sector, current policies tend to benefit the government more than the miners themselves. Effective formalization should therefore go beyond licensing, it should recognize miners’ work, protect their rights, and strengthen monitoring mechanisms.

Rethinking formalization: Beyond paperwork

To sum up, the article shows gold and diamond mining work in very different ways: diamond mines are concentrated and easier to regulate, while gold mines are spread out and often informal. Current rules, like the Class C license, help only a little and don’t fully protect miners or improve their working conditions.

It also gave us a fresh perspective on formalization, showing that there’s more to it than just government regulations. Local communities know the mining sites very well, and their knowledge is invaluable. But understanding the situation isn’t enough on its own. To make a real difference, formalization should go beyond paperwork: it should recognize the work of miners, protect their rights, and make mining safer and more productive.

For many people, artisanal mining is their only source of income, which makes it even more important that the sector is clear, fair, and well-organized. It needs to be humane, giving workers the protection and safety measures they deserve, so they can carry out their work without unnecessary risks while contributing to a more sustainable and well-regulated sector.

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