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Mining significantly contributes to small and middle-income countries, report

Published: Jan 29,2015 08:21:52

 

A new ICMM report has unveiled the importance of mining and suggests that its role in national economies will build an understanding of the scope, scale, impact and potential of the industry to spur growth and development.

 

According to the report, it is possible and essential to bolster the contribution of mining to economic and social development.

 

Discounting Australia and South Korea, there are around 35 developing countries that are highly dependent on mining.

 

The paper noted that 63 of the top 70 are low-income countries standing to expand their national economies through the investment, exports, taxes and employment associated with mining.

 

The ICMM report stated 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 relationship between commercial mining and the economic and social development of host countries is complex and often contentious."
 

The five BRICS countries have the biggest share of world production value at present.

 

In order to join emerging countries such as Chile, Indonesia and Mexico, Uzbekistan and Turkey are rising the production value rankings.

 

ICMM president Anthony Hodge said: "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.

 

"That is what we need to understand more clearly. This report increases our ability to strengthen the contribution of mining and metals to development."

 

The report also evaluates ways that mining brings growth to national economies, which includes foreign direct investment and exports of the mining products.

 

In low and middle-income countries, mining can account for 60% to 90% of foreign direct investment and 30% to 60% of total exports.

 

Taxes and other fiscal revenues from mining typically only bring in 3% to 20% of a government's total revenues in low-income countries.

 

"The relationship between commercial mining and the economic and social development of host countries is complex and often contentious," the report said.

 

 

Source:mining-technology

 

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