Innovation for sustainable development in artisanal mining: Advances in a cluster of opal mining in Brazil

The objective of this article is to understand how the promotion of clusters of small economic agents in the gem sector has brought some improvements in the economic, social and environmental conditions in the mining sector and activities related to it. The research provides policy and theoretical contributions to the field of gem production, as well as enhances understanding of the under researched opal production in Brazil. It argues that government funding and technical support dedicated to the development of mining clusters, i.e. working with small economic agents as a whole and not individually, could promote not only more economic development, but also effectively incorporate social and environmental issues, such as workers safety, water management and tailings recycling. The argument is based on an evaluation of environmental, economic, social and institutional aspects of the opal mining cluster in Pedro II municipality, Piauí state. The results suggest that some formalisation of existing practices and adequate policies have triggered innovation with some positive effects on the performance of artisanal mining. Nevertheless, there are indications that if decision-makers plan to make this cluster more sustainable, they will have to include other issues in the debate including developing substituting economic activities.