Extractive industries for development series no. We cannot determine if the declining MCI-Wr score means that the economies of these countries have diversified or simply that the mining sector has contracted. This figure provides a sense of the scale of value of production relative to the size of the economy.Footnote 14. In oil producing countries the indicators rule of law and voice and accountability even show a situation in 2015, which is worse than it was in 1996. and ICMM 2018pp. We hope our data and analysis can give inspiration and direction for additional research to perform such analyses. It is impossible from the statistics to ascertain what the reasons are for these figures. There is a need to further develop the contribution index to deal with this issue. The figures show the total value of metal and mineral production relative to GDP on the vertical axis and the metal and mineral export as a percentage of total exports on the horizontal for every year since 1996. volume32,pages 223250 (2019)Cite this article. Clearly, it is a great challenge for emerging economies with a high MCI-Wr index to make sure that they have sound policies, legislation and regulations in place and competent staff implement them in order to make sure that benefits continue to flow from the mining sector and that they are used in a sustainable way. GDP from Mining in Indonesia decreased to 214281.80 IDR Billion in the first quarter of 2023 from 223698.50 IDR Billion in the fourth quarter of 2022. It is the country with the smallest value of its mining production included in the figure. Oil countries: Angola, Sudan, Cameroon, Congo, Rep. Equatorial Guinea, Nigeria, South Sudan and Chad. Based on the detailed data available for the sector, such as production, export, prices, mineral rents, exploration expenditure and government revenues, an analysis is carried out of the current situation for 2016, and trends in minings contribution to economic development for the years 19962016. Among the 20 countries with the highest production values in Table 3, only Australia, Chile, Peru and the DRC are among the highest-scoring MCI-Wr countries in 2016. Value added represents the sum of the costs-incurred and the incomes-earned in production, and consists of compensation of employees, taxes on production and imports, less subsidies, and gross operating surplus. Minings share of global GDP doubled in 4years, and was three times higher in 2011 than it was in 1996. The quick growth of mining in Mongolia has resulted in an equally rapid increase of government revenues but the volatility is also high making it difficult for mineral rich countries such as Mongolia to plan for their futures. Source: Own calculations, Mongolia, development in export and production values 20002016 (circles and circle colours are proportional to value of mine production). (Yicai Global) Oct. 11 -- The global mining industry's output equaled 6.9 percent of gross domestic product worldwide at USD5.9 trillion. McMahon, Gary; Moreira, Susana. How has that level of statistical contribution changed over the past 20years from 1996 to 2016? 8 and 9. James Otto, The competitive position of countries seeking exploration and development investment, Journal of the Society of Economic Geologist, Special Publication 12, pp. The results of this survey contradict the widespread view that mineral resources create a dependency that might not be conducive to economic and social development. The mining sector plays a vital role in the Ghanaian economy, as it attracts more than half of all foreign direct investment (FDI) and generates more than one-third of all export revenues. GDP from Mining in Canada averaged 126795.11 CAD Million from 1997 until 2023, reaching an all time high of 163348.00 CAD Million in April of 2019 and a record low of 99558.00 CAD Million in January of 1997. These figures have declined for some counties but the situation for most countries is still a significantly larger contribution of mining in 2016 than in 1996. This paper provides an update and expansion of an earlier study within the framework of the United Nations University (UNU) World Institute for Development Economics Research (WIDER) initiative Extractives for Development. Mineral rents followed the general metal price developments and reached a peak in 2011, but have declined since, although they are still higher in 2016 than they were in the 1990s. Percentage change in Human Development Index in low- and lower middle Sub-Saharan African economies Source: McMahon and Moreira, Percentage change in Governance indicators in low- and lower middle sub-Sahara Africa economies 19962015 Source: McMahon and Moreira, Mining countries: Burkina Faso, DRC, Cote dIvoire, Eritrea, Ghana, Guinea, Liberia, Madagascar, Mali, Mauritania, Mozambique, Namibia, Niger, Rwanda, Senegal, Sierra Leone, Tanzania, Togo, Zambia, Zimbabwe. Exploration increased by 15% in 2017.Footnote 23 Investments into new mines remain however at low levels. All prices are in nominal dollars. Journal of the Society of Economic Geologist, Special Publication 12:117, Raw Materials Data (2015) database on world mining industry, Stockholm, SNL Metals & Mining (previously Metals Economics Group, Halifax), Corporate exploration strategies, annual study various years. This site uses cookies to optimize functionality and give you the best possible experience. Google Scholar, Humphreys D (2015) The remaking of the mining industry. U.S. Bureau of Economic Analysis, Release: Non-mining countries: Central African Rep., Ethiopia, Lesotho, Benin, Burundi, Cabo Verde, Djibouti, Gambia, Guinea-Bissau, Kenya, Malawi, Somalia, Swaziland, Uganda. Minerals for which this indicator is calculated by the World Bank are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite and phosphate.Footnote 8 Countries where other minerals and metals (coal being the most important one) are produced will get a lower MCI-Wr score as these rents are not included in the calculation. Figure 10 shows the MCI-Wr scores of the top 50 countries in 2016 relative to the situation in 1996. With exploration, it is more likely that new deposits will be found and the mining sector will grow and hence its contribution will increase. The 2016 update of the MCI-Wr index confirms that mining is an important part of many nations economies, and of these countries, a majority is low- and middle-income economies. Has the level of contribution changed as a result of the sharp drop in the prices of most extracted commodities since about 2011after the end of the so-called super cycle? Burkina Faso had only limited mining in early 2000s and the production value as percentage of GDP was close to zero and exports were accordingly very low. In mining countries in the region, HDI has risen by 43%, while in non-mining countries with only 24% and the same figure in oil producing countries. Chile and Australia show that also in some high-income countries, mining remains a vital part of the national economy. https://fred.stlouisfed.org/series/VAPGDPM, This is the same source as the one previously cited SNL Metals & Mining World Exploration Trends. In addition to the countries mentioned above, Kazakhstan and Russia have moved from the lower-middle to the upper-middle group. Of these, ten economies have climbed up one level between 1996 and 2016 in the World Bank income group classification (low (L), lower-middle (LM), upper-middle (UM) and high-income (H) countries). For each country, percentile ranks are calculated based on the four indicators, by dividing the country rank by the maximum rank within that indicator to generate a ranking between zero and one. Also among these countries, there had been an increase since 1996. Naturally, the figures for minings contribution had declined for most countries by 2016, but importantly the levels were still considerably higher than in 1996. In both figures mining countries are shown in green, oil producing countries in black and non-mining countries in red. 12 and 13) oil producing countries, mining countries and non-mining countries (countries with neither minerals nor oil production) and the development of Human Development Index and some indicators of governance where compared. Regions where the contribution of mining is particularly high include Western, Southern and Central Africa, Oceania, Central Asia and Latin America. A number of metals and industrial minerals follow, which each contributes less than 1 % of total global value of mine production (see Fig. GDP from Mining World Europe America Asia Africa Australia G20 This page displays a table with actual values, consensus figures, forecasts, statistics and historical data charts for - GDP from Mining. The countries of sub-Saharan Africa were divided into three groups (see Figs. U.S. Bureau of Economic Analysis, In recent years, several approaches to assess the magnitude of the contribution/dependence of countries on extractive resources have been presented.Footnote 4 This study is based on the Mining Contribution Index (MCI) that was developed by the ICMM.Footnote 5 A later version called Mining Contribution Index WIDERFootnote 6 (or MCI-W for short) was presented. At that time, GDP contribution reached as high as 25% for some countries and mining exports went over 85%. Activities dwindled in the early 2000s and reached a trough in 2002 at around 2 billion USD. Other sectors of the economy having grown at a higher rate than the economy in general have probably offset the negative effect of declining copper prices Mongolia is however still heavily dependent on mineral exports, around 8085% in the years 20062016. S&P Global Market Intelligence, Bastida AE Editor (2014) Can mining be a catalyst for diversifying economies?, special issue of mineral economics Vol 27, numbers 23, Ericsson M, Lf O (2017) Minings contribution to low- and middle-income economies, WIDER working paper 2017/148, Hailo D, Kipgen C (2017) The Extractive Dependence Index (EDI). The situation is slightly different for the diamond-producing countries because the oligopolistic situation in the diamond market probably has a stabilizing effect. Demand for metals and minerals in general has not dropped, rather it stays at the same levels as before and continues to increase slowly but steadily. The search for employment statistics could serve as but one example of the problems encountered when collecting the necessary statistics. Non-ferrous exploration expenditure dropped to 7300 MUSD in 2016, only a third of the 2012 level. Source: Own calculations. A continued and growing supply of metals and minerals will be particularly important in the transition to a fossil-free future and this additional demand for metals and minerals could be turned into economic and social development in mineral-rich emerging economies. As mentioned earlier, there are other shortcomings in these figures but none of them are considered serious enough not to include exploration in the MCI-Wr index. The absolute levels of production are relatively small for several of the states in the MCI-Wr, such as Guyana, Eritrea and Guinea but for the economy in a broader sense mining is an important contributor to all the states in the top 50. What are trends in regulating the mining sector? This area should clearly be one priority in continued research into the contribution of mining to national economies. The socio-economic issues are dealt with in the subsequent section. Contribution of the mining industry to GDP in Ghana from 1st quarter 2019 to 2nd quarter 2021 (in million Ghanaian cedis) [Graph], Trading Economics, September 30, 2021. In countries above the line, minings contribution to national economies has increased and below the line they have decreased. If this production of construction materials and coal for local use and also small-scale production of other minerals and metals, in particular gold and precious and semi-precious stones, not systematically covered in the statistics we have used, is included the contribution of mining to national economies would increase. In the present paper, the time series is updated to 2016 and a discussion is added of the development of some socio-economic indicators. 11 and 75. Mineral rents as a percentage of GDP decreased from 12.411.3% for PNG. 9). The change over time in the total global value of mineral production follows the general metal/mineral prices developments. World Bank/International Bank for Reconstruction and Development, The Growing Role of Minerals and Metals for a Low Carbon Future, Washington, DC 2017. inequality, has been constant or decreased in 13 countries and increased only in four countries. London, UK - ICMM today publishes two reports - the 6th Edition of The Mining Contribution Index (MCI) and the ICMM Members' Tax Contribution Report: 2021 Update - that highlight the contribution the mining industry makes to the economies of host countries.. In Mali and Suriname, gold is the only metal mined and hence contributes 100% of the total value, and in Burkina Faso, Guyana, Ghana, Uzbekistan and Tanzania gold mining contributes between 84 and 94%. Many low and middle-income mineral-rich countries have experienced strong growth for a decade or longer, propelled by a rapid expansion of their mineral exports and a rise in prices of these commodities. In the present MCI-Wr based on the latest available data for 2016,Footnote 13 the Democratic Republic of Congo (DRC) is ranked as the country with the largest contribution of mining to its economy, see Table 1. Rather the oppositeif more LIE and MIE were rich in non-fuel minerals their chances of economic development and possibly also socio-economic progress would have been better than they are at present when only limited non-fuel mineral resources are known. Categories > National Accounts > National Income & Product Accounts > Industry. The figures for both GDP and export share of metals and minerals are considerably higher on average for the LIEs than for the MIEs. Dec 12, 2022. The regions where mining contributes less to national wealth are Western Europe, the Middle East and North Africa, Japan and some countries in South Asia. The global mining industry experienced a period of unprecedented change during the first 15years of the new millennium. There are only three high-income economies (HIE) among the top 50 countries in the 2016 MCI-Wr, but 17 upper-middle-income economies (UMIEs), 16 lower-middle-income economies (LMIE) and 14 low-income economies (LIEs) (see Table 2). - 94.182.178.53, Islamic Azad University Vice President of Research and Tech (3000206431) - Islamic Azad University Central Organization (2000333760). Slider with three articles shown per slide. Australia and South Africa would have considerably higher mineral rents if also coal would have been included as both these counties are important coal producers. This is by far the largest increase of all asset types measured in this study. Private goods-producing industries increased 4.0 percent, private services-producing industries increased 2.3 percent, and government increased 2.1 percent. The reason for this single addition to the mineral rent indicator is that among the low- and middle-income countries with high MCI-Wr scores, Angola, Botswana and Namibia are countries where diamond mining is particularly important. Quarterly. Mining development trends 19952018: prices, exports, exploration, value of mine production, mineral rents Sources: Raw Materials Data, World Bank, SNL Metals & Mining, UNCTAD 2016. The U.S. minerals mining industry supports nearly 1.0 million jobs. Gold mining countries are experiencing a slower but still continuing growth. Nevertheless, the statistical conclusion from the 2014 MCI-W study is confirmed by this update including also socio-economic indicators. Among the countries with the highest MCI-Wr score in 2016, Suriname, Mauritania, and Mongolia had mineral rent figures over 20% of GDP (24.0, 22.3 and 21.5 respectively). Figure 3 is a four-dimensional chart with the export contribution shown on the X-axis and mineral value as percentage of GDP on the Y-axis. It was mainly the strong demand for metals and minerals in China which drove these developments. Countries for which data do not exist are omitted from the ranking. Finance currently accounts for 20% of GDP, with the state accounting . For an extended discussion of the resource curse please see Nlle and Davis Neither Dutch nor disease?natural resource booms in theory and empirics, Mineral Economics 2018, 31pp. Federal Reserve Bank of St. Louis; These exploration efforts have made it possible to start and expand mine production in the country in later years and the concomitant increase in the MCI-Wr index. For an extended discussion see: Hailo, D. and Kipgen, C., op. Guyana is the country with the highest contribution of mining as share of GDP at 18% of the value of all non-fuel minerals at the mine stage. This is particularly important for a number of LIEs like Sudan, Burundi and Cameroon where small-scale/artisanal gold production is considerable.
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