STUDY: ICMM says mining still key driver to middle income economies

LONDON, U.K. – The International Council on Mining and Metals has published new research outlining how many of the world’s poorest countries […]
Iamgold’s Rosebel mine in Surinam is expected to produce between 295,000 and 310,000 oz. of gold this year. (Image: Iamgold)
[caption id="attachment_1003725110" align="aligncenter" width="458"] Iamgold’s Rosebel mine in Surinam is expected to produce between 295,000 and 310,000 oz. of gold this year. (Image: Iamgold)[/caption] LONDON, U.K. – The International Council on Mining and Metals has published new research outlining how many of the world’s poorest countries have become more dependent on their income from mining despite a decline in commodity prices. The findings are part of the ICMM’s fourth Mining Contribution Index that ranks 182 countries according to the relative economic importance of natural resources to their economies. The latest Index confirms that between 2014 and 2016, many mineral dependent countries became even more dependent on mining revenues. The Mining Contribution Index combines data on the contribution of the mining industry to a country’s gross domestic product as well as royalties paid to host governments. The ranking indicates the importance of mining to the economic life of a country the potential for this to translate into economic and social progress. Unfortunately, it does not tell us if this potential has been realized. Fifteen of the top 25 ranked countries are African, so it should be no surprise that Suriname rose 46 places to the top of the Index.  In that country, mineral output doubled in value but the GDP fell 38%. A falling GDP was also seen in the second and third largest gainers. Aidan Davy, ICMM’s COO, had this to say: “This research shows the importance of getting the framework that governs mineral resources right if governments are to ensure that mineral wealth translates into broader-based economic and social progress. “It also shows the need to diversify and invest in other areas to insulate their economies from vulnerability to the commodity cycle” he added. Follow this link to read the entire ranking: 2018 Mining Contribution Index. The ICMM has also published a report on Social progress in mining-dependent countries.

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