New report highlights role of mining in national growth and development
Mining and metals industries can be important drivers of sustainable development for some of the most impoverished regions of the world, according to a new report released today.
‘The role of mining in national economies’, published by the International Council of Mining and Metals (ICMM), draws on research conducted by Oxford Policy Management to illustrate mining’s contribution to growth and development in every national economy in the world. The report highlights how, of the 70 countries most dependent on mining, 63 are low-income countries that stand to expand their national economies through the financial flows associated with mining.
Despite the growing importance of mineral production around the world, its role in sustainable development is rarely well-documented and, as a result, often poorly understood. This lack of robust evidence constrains informed decision-making and, in the worst cases, can result in tension between different stakeholders.
OPM’s mining specialist and lead author of the report, Dan Haglund, said 'Whilst large-scale mining is often associated with negative environmental and social impacts, these risks can be turned into opportunities when the sector is effectively governed, in partnership with civil society and industry itself. By promoting a common understanding of how these impacts emerge, the report should support more constructive engagement across all stakeholders in the mining sector'
ICMM president, Anthony Hodge, said: ‘If mining makes a major contribution to a small economy, national decision-making will be driven by development opportunities that can flow from the mining and metals industry. This is what we need to understand more clearly.’
OPM worked with the ICMM and Raw Materials Group to update the seminal report - first published in 2012 – which incorporates a pioneering index ranking countries according to the importance of mining and metals within their economies. The team conducted a review of global trends including mining’s contribution to macro-level indicators, mineral price trends and production cost trends - and helped develop case studies of major producer countries.
The report has a number of important policy implications: by better understanding the role of extractives to a national economy, in particular the different channels through which mining can bring growth - governments, private companies and local communities can better work together to harness the positive impacts of the industry for the benefit of all.