Mining

This chapter provides instruments for policymakers in countries where mining has the potential either to contribute significantly to poverty reduction or to heighten risks to the lives of the very poorest of society. Policymakers will find that, to a large extent, depending on how well mining policies and frameworks are developed, the mining sector will be biased toward either exerting a positive or a negative influence on development in these countries. Mining is a unique industry whose impact extends to national and local economic development, environment, and socio-cultural profiles, often specific to a few large mining areas in a particular region or country.

There are approximately 60 developing and transition countries where mining is or could become an important economic activity. These include (a) countries that are important mineral producers in the international marketplace, (b) countries that are modest producers by international standards but where mining makes an important contribution to the regional or national economy, and (c) countries where small-scale or artisanal mining provide significant employment in rural or remote communities. Table 25.1 lists countries in these categories.

This chapter discusses the four dimensions of poverty—economic opportunity, capability, security, and empowerment—in the context of two generically different forms of mining: (1) large-scale mining and (2) small-scale and artisanal mining. Both create very different contexts for opportunities and risks that may evolve from the use of natural resources. We recommend referring to dedicated chapters of this book for specific information on such issues as macroeconomics, environment, water, health, transport, private sector development, energy, and participation.

In developing a section on mining for a Poverty Reduction Strategy Paper (PRSP), policymakers will want to focus on (a) gathering relevant data to understand actual and potential poverty-related impacts, risks, and opportunities of the mining sector in their country (see also section 25.3 of this chapter); (b) setting clear objectives and identifying priorities for intervention in a consultative process regarding poverty impacts and the mining sector; (c) identifying the mechanisms to achieve the objectives, including needed changes to policies, laws, and regulations; and (d) establishing the necessary institutional arrangements, including authorities, responsibilities, and capabilities, to implement the mechanisms. Depending on a country’s civil society, the consultation and priority setting should include local community representatives and community-based organizations (CBOs), local government representatives from respective mining regions, industry associations, trade unions, nongovernmental organizations (NGOs), and other relevant parties. In most cases, it would be useful if the process were led by the country’s mining ministry or agency. Typically, these have harnessed the country’s mining expertise and will be ready to contribute to formulating policy for poverty reduction. A constructive partnership can almost always be created with the medium-scale and large-scale mining private sector, so that all data and expertise available can be leveraged to create sustainable development opportunities for a vibrant mining sector that contributes to poverty reduction (see chapter 7, Participation).

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