The Role of Mining in National Economies

Abstract

The mining industry is a major force in the world economy, occupying a primary position at the start of the resource supply chain. However, its role in contributing to the national economies of different countries varies greatly and is neither well documented nor well understood. This publication addresses three interlinked topics. Firstly, it provides a global context for mining’s economic contribution that shows trends in the value of world production and identifies major producer countries. Secondly, it focuses on the elements of economic contribution at the national level. Here, a Mining Contribution Index (MCI) has been developed and each of the world’s 212 countries is compared using this index. Lastly and of particular importance, mining’s growing role in many low and middle income countries is examined and observations are offered regarding mining, development and poverty reduction. Evidence from case studies conducted by ICMM shows that foreign exchange earnings from mining can increasingly create positive developmental effects. In many countries, the mining and metals industry is gaining recognition as an important contributor to the critical policy objectives of job creation and poverty reduction.