00106659 Mgmt Mercury in Artisanal Gold Mining (GOLD ISMIA) GEF Mid-Term Evaluation

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Evaluation Plan:
2021-2025, Indonesia
Evaluation Type:
Mid Term Project
Planned End Date:
08/2021
Completion Date:
07/2021
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
50,000

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Title 00106659 Mgmt Mercury in Artisanal Gold Mining (GOLD ISMIA) GEF Mid-Term Evaluation
Atlas Project Number: 00106659
Evaluation Plan: 2021-2025, Indonesia
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 07/2021
Planned End Date: 08/2021
Management Response: Yes
UNDP Signature Solution:
  • 1. Poverty
  • 2. Sustainable
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 1.4.1 Solutions scaled up for sustainable management of natural resources, including sustainable commodities and green and inclusive value chains
SDG Goal
  • Goal 12. Ensure sustainable consumption and production patterns
  • Goal 13. Take urgent action to combat climate change and its impacts
SDG Target
  • 12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment
  • 13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning
Evaluation Budget(US $): 50,000
Source of Funding:
Evaluation Expenditure(US $): 24,495
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Dalibor Kysela External Evaluator dkysela@gmx.at CZECH REPUBLIC
Hendra Michael Aquan External Evaluator hendra.aquan@gmail.com
GEF Evaluation: Yes
GEF Project Title: 00106659 Mgmt Mercury in Artisanal Gold Mining (GOLD ISMIA)
Evaluation Type: Mid-term Review
Focal Area: Persistent Organic Pollutants
Project Type: FSP
GEF Phase: GEF-6
GEF Project ID: 9707
PIMS Number: 5872
Key Stakeholders:
Countries: INDONESIA
Lessons
1.

The establishment of Field Facilitators (FF) proves to be a good example of a bridge between the central level of the project and its field site locations. The work of FFs helps to attract interest and commitment of local authorities for organization of training and awareness raising events. The FFs also serve as an effective and efficient tool for conveying the project support to mining groups in their formalization efforts, gaining access to financing and establishment of mercury-free processing plants.

Activities related to preparation and implementation of the gender-responsive village is a good practice for achievement of concrete results on promotion of gender balance in their institution and the community level. Cooperation with the Ministry of Women Empowerment and Child Protection increases visibility of the GOLD-ISMIA project as part of the programme for achievement of the rural SDGs.

Preparation of an awareness raising strategy for the project was based on results of the situation analysis, communication objectives, approaches, target audiences, key messages, and campaign implementation plans.  The awareness raising campaign itself was then developed in line with an innovation adoption model that divided the target audiences based on their capacity to absorb information and translate it into action.

The campaign focussed on drum operators and level I gold collectors that are considered as the primary target audience. This division maximizes impact of the awareness raising as it focuses on ASGM operators that have important roles in selection of the method of whole ore processing and in conducting amalgamation and burning processes for production of gold of certain purity. Focusing on the primary audience with the highest risk of mercury exposure maximizes the impact of the awareness raising activities. 

Provision of personal protective equipment (gloves to ASGM operators) complements the introduction of alternative technologies and awareness of the dangers of mercury also with awareness raising about personal safety through using PPE.  

The reality of implementation of this project prove that the results’ targets should be reviewed at the mid-term stage to account for actual realities on the ground and change of external conditions to make these more realistic and achievable. Indicators and targets for which the achievement is outside the control of the project, such as adoption of laws and policies and allocation of resources by external financial partners, carry high risk of non-achievement due to lack of contribution from external partners. Through provision of micro-grants to ASGM cooperatives, the project made a provision for mitigation of the lack of contribution from external partners, but such indicators and targets should be avoided to the extent possible.

Monitoring the quantities of ore, processed at the project sites, is the key to calculating the amounts of mercury that can be avoided. Such monitoring should be done in a systematic way in order to allow for estimation of the mercury avoided from the mercury-free processing units within the project locations through collecting the site-specific data from the owners of processing units on a regular basis.


Findings
1.

Insufficiencies in the project results framework, in particular poorly defined indicators and their target values, are not conducive to operational monitoring of progress towards achievement of the Outcomes and Objectives. By the MTR stage, good progress has been observed under the respective project components on institutional strengthening and awareness raising. The activities on access to finance and technical support have been slowed down due to the COVID-19 restrictions.

Micro-miners currently do not have any capability to test ore grade and to model their resource. Engaging with small-scale miners at the exploration stage could be an effective step supporting efforts to reduce and eliminate mercury use. Interventions for mercury-free ore processing techniques produce the desired effect only if accompanied with opportunities for increased profits. An effective way to convince miners to switch to mercury-free techniques is to demonstrate economic consequences of the inefficiency of the whole ore amalgamation process. 

Cyanidation of amalgamation tailings contributes to formation of mercury-cyanide complexes and thus exacerbates the level of environmental pollution through discharges of final tailings into the local drainages. Although the project has informed the miners on ways to control the cyanide use and toxicity in the amalgamation tailings, this issue would require further attention in order to minimize the risk of environmental sustainability. Delay in field testing of the mobile cyanidation plant, coupled with the continued lack of access to financing for ASGM groups, poses a risk to wide roll out of the mobile processing plant. Failure to successfully deploy the mobile cyanide plant in the ASGM communities would hamper achievement of the target of reduction of mercury use before the end of the project.

Without knowledge about new sources of gold, ASGM operators have little or no incentive for taking out loans for ASGM operations. Information about new sources of gold is also a critical requirement for development of compelling business plans with a clear value proposition and revenue model to attract financial institutions to roll out loan schemes to ASGM groups. Some ASGM co-operatives established in the project field locations do not offer any management or assistance services directly related to ASGM operations to its members. Therefore, support to formation of cooperatives similar to co-ops in other sectors is not likely to be an effective measure for mercury reduction and elimination strategies.

Emission of mercury vapour to the air is a serious public health problem as available reports prove very high mercury levels in the air in populated areas around processing centres and gold shops. This issue would require some attention in the remaining period of implementation.

The ISMIA Project Board is constituted on exclusive participation of several line ministries and other agencies of the Government. The PB is considered as an interim body for coordination and oversight of mercury reduction efforts until an effective alternative will have been created and institutionalized to assume this responsibility. The complexity of the issue of mercury reduction in ASGM operations could not be fully addressed under the current ISMIA project but will require a continued intervention over a longer time that could be ensured through preparation of a follow-up project.


Recommendations
1

The Project Management Unit should undertake revision of the project results framework in order to have measurable indicators and achievable end-of-project target values. The revised logframe should be put for approval by the Project Board.

2

In the remaining time of the project. PMU should accelerate activities under Components 2 and 3 as access to financing and technical support are critical for achievement of the planned reduction in mercury use.

3

The project Implementation Partners should consider cooperation with the Geological Agency of Indonesia for establishment of ore testing facilities in the project field locations for determination of concentration of gold in the ore.

4

The PMU should ensure that trainings of the ASGM operators include practical demonstration of low efficiency of the whole ore amalgamation process and its consequences on profitability of the micro-miners’ operations.

5

The PMU should ensure training of the ASGM operators includes education about management of final tailings after cyanidation. 

6

The PMU should intensify activities related to small-scale cyanidation in order to provide clear and customized guidance to the ASGM communities. In particular, the field testing and demonstration of the mobile cyanidation plant should be accelerated. The project should collect and share the experience from the demonstration and early use of the mobile processing plant

7

The PMU should consider provision of support for specific capacity building on mineral prospecting including facilitation of access to relevant services and equipment, in cooperation with the Geological Agency of Indonesia.

8

The PMU should intensify consultations with the project ASGM communities about ownership and structure of miner co-operatives for distribution of loans for ASGM operations. Such consultations should include owners of ASGM operations and local investors, If possible, the project should also consider support for small-business loans to individuals who are legal ASGM operators.

9

The PMU should consider targeted awareness raising events about mercury pollution from burning amalgams including methods for preventing this pollution

10

The PMU, in cooperation with the GoI, should consider inclusion of APRI in the project activities including presence on the Project Board.

11

UNDP, in cooperation with the GoI Implementing Partners, should develop a road map for continued inter-ministerial coordination of activities on mercury reduction in ASGM in line with the National Action Plan for ASGM. This could include consideration of temporary institutionalization of the ISMIA Project Board until establishment a permanent coordination body. 

12

The PMU in cooperation with UNDP and the GoI Implementing Partners should develop an exit strategy for the project to encourage strong commitment to sustainability. The exit strategy should include discussion with key GoI stakeholders for possibility of preparation of a follow-up project under funding from GEF-8.

13

The PMU in cooperation with the UNDP CO should consider initiating a pilot assessment of the ways the ISMIA project interventions contribute to gender equality e.g. through monitoring the changes under the concrete case of establishment of the gender-responsive village. The results of the pilot assessment would serve as a basis for development of gender impact indicators for future programming.

Management Response Documents
1. Recommendation:

The Project Management Unit should undertake revision of the project results framework in order to have measurable indicators and achievable end-of-project target values. The revised logframe should be put for approval by the Project Board.

Management Response: [Added: 2021/07/30]

The PMU is not an independent and autonomous entity. It works under the Implementing Partner (Ministry of Environment and Forestry - MoEF). It is better for the consultants to address the recommendation to the Implementing Partner.

The Project Result Framework (PRF) was agreed among the stakeholders in the country (GOI and other relevant institutions. It went through a long process at national and international levels. It was already reviewed by UNDP at regional and HQ levels, GEF Secretariat and GEF Council. GEF provided funding according to the PRF that should be achieved.

If PMU proposed revision on the Project Results Framework, it would require approval at many layers, including the GEF Council. Therefore, the project in coordination with Implementing Partners (MoEF and BPPT), RTA and UNDP CO would review the list of revision and further discuss with Project Board members.

The best approach to facilitate the recommendation would be to develop a technical strategy document with measurable indicators

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The project will develop stand-alone performance indicators as part of the Annual Work Plan to track activities progress.
[Added: 2021/07/30]
MoEF, BPPT, UNDP 2022/06 Initiated
2. Recommendation:

In the remaining time of the project. PMU should accelerate activities under Components 2 and 3 as access to financing and technical support are critical for achievement of the planned reduction in mercury use.

Management Response: [Added: 2021/07/30]

In coordination with MoEF, BPPTand relevant stakeholders, the project will  accelerate activities under Component 2 and 3.

The project has conducted 2 (two) technical trainings on existing mercury-free processing plant in Kulon Progo to strengthen the capacity of 102 miners from 6 project sites. More trainings will be held in 2021. In order to achieve the target on mercury reduction, project has developed 6 (six) Mercury-free Detailed Engineering Design (DED) that will be established in 6 project sites by early 2022.

The provision of financial access to ASGM miners is on progress. Through Low Value Grant Agreement (LVGA) between the project and 6 ASGM cooperatives, the project has delivered USD 481,853 that will be used by the cooperatives to establish mercury-free processing plants. By the end of this year, 6 (six) mercury -free plants will be established.

In coordination with The Agency for Revolving Fund Management for Cooperatives and Small and Medium Enterprises (LPDB), relevant banks and Ministry of Cooperative and SMEs, the project keeps on maintaining its progress

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The project facilitates technical training and mercury-free field-testing technology. It is on progress and expected to finish by the end of 2021. It will contribute to the total amount of mercury reduction in ASGM sector.
[Added: 2021/07/30]
MoEF, BPPT 2022/11 Initiated
The project continues its partnership with Bank Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) and The Agency for Revolving Fund Management for Cooperatives and Small and Medium Enterprises (Lembaga Pengelola Dana Bergulir - LPDB) to provide loans for ASGM miners.
[Added: 2021/07/30]
MoEF , BPPT 2022/11 Initiated
The project will keep on monitoring the progress under Component 2 and Component 3 that will be addressed in annual report.
[Added: 2021/07/30]
MoEF , BPPT 2022/11 Initiated
3. Recommendation:

The project Implementation Partners should consider cooperation with the Geological Agency of Indonesia for establishment of ore testing facilities in the project field locations for determination of concentration of gold in the ore.

Management Response: [Added: 2021/07/30]

MoEF and BPPT have initiated the collaboration with Geological Agency since 2020. The Geological Agency supported the project in formalization process by conducting gold exploration in Obi (Halmahera Selatan). In 2021, MoEF and BPPT will coordinate with the Geological Agency to conduct gold exploration survey in North Gorontalo to meet the requirement of mining area permit (WPR).

In 2020, the project conducted ore characteristic survey for primary and secondary ore in 6 project sites to figure out the mineral composition. The result of the survey can be found at LINK(page 54 – 72). For secondary ore or alluvial, BPPT completed ore testing in a project site, Kuantan Singingi in Riau Province. The result can be found at LINK. Both results according to the ore testing are used to determine the design of mercury-free gold processing plant that will be introduced by the project.

On the other hand, the establishment of ore testing facilities is beyond the project target. BPPT and Badan Geology are available to support when the project needs ore testing.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Field survey for gold exploration and capacity building on mineral prospecting by Geological Agency in Hulawa Village is scheduled in Q1 2022.
[Added: 2021/07/30]
MoEF and BPPT 2022/11 Initiated
4. Recommendation:

The PMU should ensure that trainings of the ASGM operators include practical demonstration of low efficiency of the whole ore amalgamation process and its consequences on profitability of the micro-miners’ operations.

Management Response: [Added: 2021/07/30]

The project has provided trainings related with formalization, alternative technology, waste treatment for ASGM operators in 6 project sites. 

Since the project’s inception workshop and technical trainings, the operators have been informed that the amalgamation process has lower efficiency compare with cyanidation. The materials about low efficiency of amalgamation refer to miner’s testimonial and project’s assessment in 6 project sites which stated that cyanidation is able to produce gold 80 – 90% higher than amalgamation (report is available at: LINK). In addition, the project also provided calculation of operational cost and revenue of small mobile mercury-free processing plant according to the following report page 22 – 25: LINK.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The project continues delivering the technical training to introduce the alternative mercury-free technology including practical demonstration of waste management and the profitability of this gold processing technology.
[Added: 2021/07/30]
MoEF , BPPT 2022/11 Initiated
5. Recommendation:

The PMU should ensure training of the ASGM operators includes education about management of final tailings after cyanidation. 

Management Response: [Added: 2021/07/30]

The training material about management of final tailing after cyanidation has been developed and included on training module. Since 2020, the project has conducted the training on mercury-free technology using this training module. 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The technical training on mercury-free alternative technology for ASGM miners from 6 project sites is on progress. The upcoming training will be conducted in Kulonprogo (Yogyakarta), Sekotong (NTB) and Pulau Aro (Riau).
[Added: 2021/07/30]
BPPT, MoEF, UNDP 2022/11 Initiated
6. Recommendation:

The PMU should intensify activities related to small-scale cyanidation in order to provide clear and customized guidance to the ASGM communities. In particular, the field testing and demonstration of the mobile cyanidation plant should be accelerated. The project should collect and share the experience from the demonstration and early use of the mobile processing plant

Management Response: [Added: 2021/07/30]

The 1st batch of field testing and demonstration of micro-leaching tank was held in March 2021 and the 2nd batch is scheduled in Q4 2021. Such activities are expected to finish in Q4 2021. A video about demonstration activities and result has been published (video’s link).

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The upcoming field testing will be conducted in Obi in Q4 2021.
[Added: 2021/07/30]
BPPT, UNDP 2021/12 Initiated
7. Recommendation:

The PMU should consider provision of support for specific capacity building on mineral prospecting including facilitation of access to relevant services and equipment, in cooperation with the Geological Agency of Indonesia.

Management Response: [Added: 2021/07/30]

In supporting the formalization to obtain mining area permit (WPR) which requires gold content in the proposed area, the project in coordination with Geological Agency will conduct gold exploration survey in North Gorontalo. By the end of the survey, Geological Agency will provide capacity building for miners about the important of mineral prospecting.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Field survey for gold exploration and capacity building on mineral prospecting by Geological Agency in Hulawa Village is scheduled in Q1 2022.
[Added: 2021/07/30]
BPPT, MoEF, UNDP 2022/11 Initiated
8. Recommendation:

The PMU should intensify consultations with the project ASGM communities about ownership and structure of miner co-operatives for distribution of loans for ASGM operations. Such consultations should include owners of ASGM operations and local investors, If possible, the project should also consider support for small-business loans to individuals who are legal ASGM operators.

Management Response: [Added: 2021/07/30]

The project has supported the establishment of 16 ASGM cooperatives in project site. It is including facilitation of consultation between Cooperative Agency in District level with cooperative members to discuss the ownership, organization structure and business plan. Afterwards, the project provided trainings related with all project components and supervision on how to apply loans.

As of April 2021, 18 loan applications were approved by the financial entities i.e. BRI and Cooperatives. All loans were submitted by individual ASGM miners.

In the upcoming project implementation, the project will intensify the coordination with miner cooperative and financial entities to support the financial access for establishment of mercury-free equipment

Key Actions:

Key Action Responsible DueDate Status Comments Documents
In coordination with relevant stakeholders i.e. Ministry of Cooperative and SMEs, Cooperative Agency, The Agency for Revolving Fund Management for Cooperatives and Small and Medium Enterprises (LPDB) and financial entities, the project will conduct socialization on ASGM business to miner’s cooperatives, to support ASGM’s small-business loans for individual miners.
[Added: 2021/07/30]
MoEF , UNDP 2022/11 Initiated
9. Recommendation:

The PMU should consider targeted awareness raising events about mercury pollution from burning amalgams including methods for preventing this pollution

Management Response: [Added: 2021/07/30]

The raising awareness activities that were held in 6 project sites delivered information about sources of mercury pollution including from burning amalgams and also information on impacts of mercury to human health and environment, disadvantages of using mercury in ASGM, some facts about illegal status of mercury Information. Miner communities, teachers, local communities and youth groups involved in the raising awareness.

In regards to the preventive action of mercury pollution, the project distributed 1500 Personal Protective Equipment (PPE) to the miners in 6 project sites in 2020. A video about the function of PPE and how to use PPE have been shared to miners

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Production of poster/infographic about preventing mercury air pollution could reduce the impacts.
[Added: 2021/07/30]
MoEF , BPPT, UNDP 2022/11 Initiated
10. Recommendation:

The PMU, in cooperation with the GoI, should consider inclusion of APRI in the project activities including presence on the Project Board.

Management Response: [Added: 2021/07/30]

According to the project organization structure, APRI is not a member of Project Board. Therefore, APRI is not invited to Project Board Meeting.

 

However, during the project preparation, UNDP, BPPT and MoEF invited APRI and other stakeholders to share their experience and expertise. During the project implementation, MoEF and BPPT invited APRI regularly in the project activities at national level and project sites.

 

In 2019, MoEF, BPPT and UNDP invited APRI to join the National and District inception workshops. In 2020, MoEF, BPPT and UNDP invited APRI to get involved in the following events: (1) International seminar on alternative technology for ASGM; (2) Raising awareness event; (3) Two coordination meetings with Project Implementing Partners; (4) Technical training in technology.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
APRI representatives at 6 project sites are invited to the ASGM formalization trainings that are conducted in Q2-Q4 2021. The project will keep inviting APRI to the project’s upcoming events.
[Added: 2021/07/30]
MoEF, BPPT, UNDP 2022/11 Initiated
11. Recommendation:

UNDP, in cooperation with the GoI Implementing Partners, should develop a road map for continued inter-ministerial coordination of activities on mercury reduction in ASGM in line with the National Action Plan for ASGM. This could include consideration of temporary institutionalization of the ISMIA Project Board until establishment a permanent coordination body. 

Management Response: [Added: 2021/07/30]

According to Presidential Decree No. 21 Year 2019 regarding RAN-PPM (National Action Plan on Mercury Reduction and Elimination, there are 17 Ministries/ Institutions assigned by the President of Indonesia to be the responsible parties.

List of the parties is available at this link Page 13 – 14.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The Ministry of Environment and Forestry as a focal point for National Action Plan will organize inter-ministerial coordination to provide some updates on the preparation of COP-4 Minamata Convention that will be held in 2021/2022.
[Added: 2021/07/30]
MoEF, UNDP 2022/11 Initiated
12. Recommendation:

The PMU in cooperation with UNDP and the GoI Implementing Partners should develop an exit strategy for the project to encourage strong commitment to sustainability. The exit strategy should include discussion with key GoI stakeholders for possibility of preparation of a follow-up project under funding from GEF-8.

Management Response: [Added: 2021/07/30]

PMU will complete the exit strategy in coordination MoEF, BPPT and UNDP.

Considering the lessons learned and recommendations, the project will prepare a concept note able to follow up the project under GEF-8 funding.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
• PMU in coordination with MoEF, BPPT and UNDP has identified the exit strategy i.e. the initiation of Center of Excellent as a training centre for mining sector.
[Added: 2021/07/30]
MoEF, BPPT, UNDP 2022/11 Initiated
UNDP CO Indonesia will work with UNDP BRH to follow-up any potential funding from GEF-8.
[Added: 2021/07/30]
MoEF, BPPT, UNDP 2022/11 Initiated
13. Recommendation:

The PMU in cooperation with the UNDP CO should consider initiating a pilot assessment of the ways the ISMIA project interventions contribute to gender equality e.g. through monitoring the changes under the concrete case of establishment of the gender-responsive village. The results of the pilot assessment would serve as a basis for development of gender impact indicators for future programming.

Management Response: [Added: 2021/07/30]

The Project will have a specific gender assessment to complete the mid-term evaluation as a process of comparing and assessing the achievement of project intervention, according to the gender action plan. In addition, the gender assessment will measure the project intervention contribute to gender equality and review the progress of Gender Responsive Village that was established in Kuantan Singingi District.

The findings of  gender assessment will improve the gender workplan to strengthen gender equality through better transformative action to make sure that any discriminatory actions in ASGM sector of project areas are either mitigated or removed.

In addition, the result of gender assessment will be reviewed together with Implementing Partners and The Ministry of Women Empowerment and Child Protection  (MoECP).

Key Actions:

Key Action Responsible DueDate Status Comments Documents
The project will develop the Term of Reference (ToR) of gender assessment.
[Added: 2021/07/30]
MoEF, BPPT, UNDP 2022/03 Initiated
The gender assessment will be conducted by an expert consultant in Q4 2021.
[Added: 2021/07/30]
MoEF, BPPT, UNDP 2022/03 Initiated

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