Mining boosts economic development

Mining makes a large – and growing – contribution to emerging economies, according to a new report from the International Council on Mining & Metals (ICMM).

The report – “The role of mining in national economies” - includes the second edition of the ICMM’s Mining Contribution Index (MCI), which ranks 214 countries according to the importance of mining and metals to their economies.

“Of the 35 countries most dependent on mining, all but Australia and South Korea are developing countries,” the ICMM said in a press release. “Of the top 70, 63 are low-income countries that stand to expand their national economies through investment, exports, taxes and employment associated with mining.”

The report concludes that: “the critical focus is not on how mining can be sustainable, but on how mining, minerals and metals can contribute to sustainable development.”

The report also assesses the different ways that mining brings growth to national economies. It highlights foreign direct investment (FDI) in mining and metals operations and exports of mining products as the two most important channels for creating economic growth.

According to the report, mining can account for 60 – 90% of FDI in low- and middle-income countries and 30 – 60% of total exports.

“If mining makes a major contribution to a small economy, national decision-making will be driven by the development opportunities that can flow from the mining and metals industry,” said ICMM President, Anthony Hodge. “That is what we need to understand more clearly. This report increases out ability to strengthen the contribution of mining and metals to development.”

Written by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/mining/27012015/mining-boosts-economic-development-icmm-coal1804/