International Development Grant

Sustainable Development of Artisanal and Small-Scale Gold Mining in Indonesia

Project Number: CA-3-D001607001

Status: Closed

Country/Region:

Indonesia 100.00%

Maximum Contribution: $8,498,844.00

Start Date: August 14, 2015

End Date: September 30, 2021

Duration: 6.1 years

Project Description

The project aims to improve incomes health and the environment of the vulnerable and marginalized men and women dependent on the artisanal and small-scale gold mining (ASGM) economy in targeted areas in Central Kalimantan South Kalimantan Java and Sulawesi. The project improves mining environmental and social practices for men and women involved in the ASGM including identifying alternatives to mercury use and training on safe handling of cyanide. The project also supports targeted subnational governments to better collaborate with the formal extractive sector and supports the formalization of ASGM activities through legal trade of responsible artisanal gold and value-added products in domestic and international markets. Activities include: (1) provide training on better practices for men and women miners; (2) provide training to targeted government and civil society groups on ASGM regulation and management; and (3) establish collaborative mechanisms with other relevant initiatives promoting responsible gold and diversification of the ASGM economy. This initiative supports the Government of Indonesia’s implementation of the Minamata Convention on mercury which both Canada and Indonesia signed in 2013.

Expected Results

The expected intermediate outcomes for this project include: (1) improved environmental health and social practices adopted and implemented by men and women gold miners and service providers in targeted areas; (2) improved artisanal and small-scale gold mining (ASGM) policy and technical environment in targeted provinces; and (3) increased participation by private sector and civil society in a responsible and legal ASGM sector.

Progress & Results Achieved

Results achieved as of the end of the Project (December 2021): (1) improved mining practices in three targeted communities in Indonesia by establishing three mercury-free gold mining processing plants; (2) trained and mentored 843 artisanal miners and cooperative members 246 women; 597 men on various artisanal and small-scale gold mining topics such as business and supply chain management waste management mineral processing gender equality as well on important and relevant health themes such as COVID 19-awareness; (3) produced 56 grams of gold and 44 grams of silver in mercury-free processing facilities; (4) strengthened three project cooperatives to manage the three mercury-free gold processing facilities; (5) strengthened three women cooperatives who help women’s economic empowerment; (6) seven artisanal and small-scale gold mining modules and curricula developed and shared with government and other partners for further outreach and capacitation; (7) signed memorandum of understanding with the UNDP project planet GOLD to disseminate knowledge and to share these artisanal gold products to ensure alignment and coherence within the sector; (8) signed responsible gold purchase agreement in one of the project facilities linking the formal gold market to aproximately150 miners; (9) increased government officials’ level of awareness of the Minamata Convention. This strengthened their capacity to implement policies related to artisanal and small-scale gold mining. It also led to an improvement of services in their communities; and (10) facilitated 16 policy dialogues and actions to reform this type of mining. Forums workshops and document reviews were held to support the formalization of this mining sector and the implementation of the National Action Plan on mercury elimination by the government of Indonesia.

Key Information

Executing Agency:
Artisanal Gold Council

Reporting Organization:
Global Affairs Canada

Program:
OGM Indo-Pacific

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Health education 15%
Small and medium-sized enterprises (SME) development 30%
Mineral/mining policy and administrative management 40%
Environmental education/training 15%

Aid Type: Project-type interventions

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Unsolicited Proposal

Policy Markers
Level 1 Gender equality
Level 2 Environmental sustainability (cross-cutting)
Level 1 Nutrition
Major Funding (>$1M)
Budget Breakdown
2015-04-01 to 2016-03-31 $8,498,844 CAD
Geographic Information
730
Project Number: CA-3-D001607001