A major trend reshaping the global gold industry today is the surge in the level of artisanal and small-scale gold mining (ASGM). What was once viewed as a peripheral activity is now one of the most consequential forces influencing the market, economically, socially, and geopolitically. ASGM accounts for an estimated 20% of global mined supply, employs over 20 million people directly, and supports the livelihoods of more than 100 million worldwide.
Yet for all its economic weight, ASGM remains overwhelmingly informal, underregulated, and high-risk. It is a sector marked by significant environmental degradation, widespread mercury use, poor safety conditions, and a growing intersection with illicit finance, organised crime, and armed groups. ASGM was once viewed as an equivalent to subsistence agriculture, its lack of legal status and regulation was seen by many as just reflecting endemic informality in the economies of many developing countries. But the surge in the price of gold, growing mechanisation and the increasing presence of organised crime has changed all that. The scale, scope, and urgency of these challenges are now undeniable, and so too is the opportunity to deliver meaningful reform.
In response, the World Gold Council, together with an expanding coalition of public and private sector partners, has been working to support the responsible transition of ASGM from informality to legitimacy. Through collaboration with governments, central banks, industrial mining companies, multilateral institutions, and technology providers, the World Gold Council and its partners are contributing to the design of practical solutions to strengthen ASGM ecosystems. These include improving traceability, reducing mercury use, expanding access to formal markets, enhancing coordination with law enforcement, and supporting the development of more responsible supply chains.
As the scale and impact of ASGM continue to grow, it is becoming increasingly clear that this segment of the gold market cannot be viewed as peripheral. Its evolution has direct implications not only for gold supply and price dynamics, but also for geopolitical stability, environmental sustainability, and the integrity of global markets. Addressing its risks and unlocking its potential requires a coordinated and technically grounded approach, rooted in local realities but informed by global best practice.
A growing share of global gold production
At the turn of the 21st century, ASGM contributed around 4% of the global gold supply. Today, that figure is closer to 20%; up to 1000 t annually. This significant growth reflects a confluence of factors: the sustained rise in gold prices during this time period from around US$250/oz to over US$3500/oz in 2025, the gradual decline in employment opportunities within other rural sectors, and increasing demand from local and regional buyers, including state actors. For many countries, particularly in sub-Saharan Africa, South East Asia, and Latin America, ASGM is now a pillar of rural economic life. In some regions, it provides one of the only viable alternatives to poverty or migration. It is also an important source of foreign exchange, often exceeding the value of traditional exports such as coffee, cocoa, or timber. But this expansion has come with systemic costs.
This is a preview of an article that was originally published in the September 2025 issue of Global Mining Review. Subscribe to Global Mining Review for free to read this article in full and many more here.