2016 MCI-Wr Top 30 countries (circles are proportional to value of total mine production). United States GDP From Mining 2023 Data - 2024 Forecast - TRADING ECONOMICS 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. Private goods-producing industries increased 4.0 percent, private services-producing industries increased 2.3 percent, and government increased 2.1 percent. 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. U.S. Bureau of Economic Analysis, We have tried to contact national statistical offices in the most important countries with limited success. Eleven economies have climbed up one step on the GNI development classification, to lower middle, upper middle or high-income category among the 20 low- and middle-income countries with the highest MCI-Wr score in 1996. ICMM, The role of mining in national economies, 3rd edition 2016. This page . Several LIE and MIE countries with high MCI-Wr scores in 1996 have developed successfully and risen in the World Bank classification from LIE to MIE, from LMIE to UMIE and from UMIE to HIE. Australian exports continue to flourish Employment has also been generally rising in the past 10years, and has not declined as much recently as the value of mine production, exports and other factors directly related to commodity prices. In all 20 countries, gold mining contributed more than 50% of the total value of all metal and mineral production. In this working paper there is also a more detailed discussion of employment in some mining countries. 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. Most countries, which show the largest increase in MCI-Wr, had no or only limited industrial mining in 1996 but investments were made during the first decade of the twenty-first century. In 2016 the contribution to exports by gold had increased to almost 80%. To learn more about cookies, click here. The search for employment statistics could serve as but one example of the problems encountered when collecting the necessary statistics. The export contribution to the MCI-Wr score in low- and middle-income economies is the single most important factor explaining their high ranks. SNL Metals & Minings World Exploration Trends focus on corporate spending. retrieved from FRED, The fourth dimension is time: the data presented in the printed graph is just for 2016 for obvious reasons. The global mining industry might be facing a similar situation during the 2020s as it did in the early 2000s: slowly increasing demand but hesitancy about investing and low supply elasticity in response to demand. The Geneva office of the ILO has been reorganised and is lacking resources, which has created additional problems. (Tercero 2016) The export contribution of metals and minerals provides a measure of the scale of mining in relation to other export activities, in particular for small low- and middle-income countries. "Despite our enormous mineral resources, the contribution of the mining industry to the economy remains minuscule. 4). Copper production doubled between 2011 and 2016 but in spite of that mine value as percentage of GDP decreased from 25% in 2011 to about 17% in 2016, there is a decrease of 30% (see Fig. In Surinam, Mali and the Sudan, gold contributed 100% of total value. Extractive industries for development series; no. The mineral rents for some countries are for some years higher or almost as high as the total value of mine production. Graph and download economic data for Value Added by Industry: Mining as a Percentage of GDP (VAPGDPM) from Q1 2005 to Q4 2022 about value added, mining, percent, private industries, private, industry, GDP, and USA. African mining countries in particular have increased their MCI-Wr score. If you continue to navigate this website beyond this page, cookies will be placed on your browser. This figure provides a sense of the scale of value of production relative to the size of the economy.Footnote 14. Mineral rents constituted 13% out of total GDP and DRC is ranked at number six in 2016. Could one explanation be that rents are also calculated on the production of metals and semi-products under way to become metal (blister copper and the like)? Non-fuel mineral resources grew very rapidly between 1995 and 2014, more than 10 times from 997 to 10.154 billion USD. The export contribution of mining is highest in Botswana, Sierra Leone, DR Congo and Mongolia at levels of 8090% of total exports, followed by, Mali, Burkina Faso and Zambia with export contribution levels at around 7080%. The third and fourth (exploration and mineral rents) warrant some explanation. Economic Growth - Minerals Make Life Mining industry worldwide - statistics & facts | Statista 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. Only 9 countries are high-income economies (see Tables4 and 5). Exploration expenditure was 143 MUSD in 2016 and expressed as a share of production value is 2%, and DRC is in 37th place globally. The MCI synthesises into a single number, and associated ranking, the significance of the economic contribution mining makes to . Activities dwindled in the early 2000s and reached a trough in 2002 at around 2 billion USD. 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. The paper covers all countries but low- and middle-income developing economies are given additional attention to follow up on our earlier study.Footnote 3 Our intention is to collect and analyse statistical data on a global level over a long period of time and to give an empirical contribution to the discussion about the role of mineral resources in economic and social development of countries. Minerals . Government revenues from mining as a share of GDP (%)Source: IMF Resource Revenue Data, 2016. Mineral production value at the mine stage was 6.8 billion USD in 2016 and the mineral production value as per cent of GDP was 12%: on this indicator, the DRC is ranked as number two. It contributed only 1.2% to national tax collection, and comprised . Inequality, the Gini coefficient.Footnote 21. Coal constitutes roughly half of the total value of industrial mine production globally. 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. By contrast, the bottom 20 economies in the MCI-Wr index have increased slightly less, 18% between the years 19962015 (Fig. 14, mineral prices are one important but not the sole determinant of the changing levels of exports, value of mine production, mineral rents and exploration expenditures also play an important role. GDP from Mining in the United States averaged 379.06 USD Billion from 2005 until 2022, reaching an all time high of 533.90 USD Billion in the first quarter of 2020 and a record low of 241.40 USD Billion in the fourth quarter of 2005. THE mining sector accounted for P102.3 billion, equivalent to 0.6% of gross domestic product (GDP) growth in 2020, according to the Mines and Geosciences Bureau (MGB). The figure confirms that the countries with the highest levels of export contribution are mainly low- or lower-middle-income economies. 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. Mineral exports constitute 86% of total exports and the DRC is ranked as the second most important country in relation to mineral export contribution. Geographically, Africa, in its entirety, and in particular West Africa is a good example of economic development of mineral-producing countries. This figure does not represent the contribution of mining to GDPon average, perhaps only a third of production value represents value addition to the national economy compare, ICMM 2014. Non-mining countries: Central African Rep., Ethiopia, Lesotho, Benin, Burundi, Cabo Verde, Djibouti, Gambia, Guinea-Bissau, Kenya, Malawi, Somalia, Swaziland, Uganda. By 2016, the production value as a percentage of GDP was around 6% and exports as percentage of total exports were growing continuously. Other drivers are mining and environmental legislation, security of tenure, tax system, availability of infra structure and competent and trained staff.Footnote 16 All these factors are directly or indirectly influenced by national and local political decisions. Measured with a set of governance indicators (corruption, effectiveness, political stability, regulatory quality, rule of law and voice and accountability), mining countries have developed significantly better than non-mining countries and oil producing countries. Minings contribution to economic activity in the low- and middle-income countries clearly increased between 1996 and 2016. Among the top 50 countries, ranked by export contribution, 18 are low-income economies and 14 are lower-middle-income economies. This is a first and preliminary indication that inequality, as measured by the Gini coefficient, is not necessarily directly linked to development of mining in LIE and MIE countries. To conclude this brief and introductory statistical survey of social indicators in mining countries, particularly in Africa, there are indications that economic development in the mining sector does not automatically mean a deterioration or slowdown of social development. Human development index development 19962015 Source: UNDP. 1213. Between June 2019 and June 2020, the total output of Australia's mining industry increased by 1.1%. Figure 3 shows the top 30 MCI-Wr countries. Mineral rent is the difference between the value of production of a mineral at world prices and the total cost of production including in costs an estimate of the normal return on capital. natural resource booms in theory and empirics. Mineral wealth developments are treated in increasing detail by the World Bank in the study The Changing Wealth of Nations 2108. The situation is slightly different for the diamond-producing countries because the oligopolistic situation in the diamond market probably has a stabilizing effect. The World Bank report The Contribution of the Mining Sector to Socioeconomic and Human DevelopmentFootnote 22 and ICMMs Social progress in mining-dependent countries give further examples and discuss these issues in more detail. This is particularly important for a number of LIEs like Sudan, Burundi and Cameroon where small-scale/artisanal gold production is considerable. 2014. https://doi.org/10.1007/s13563-019-00191-6, DOI: https://doi.org/10.1007/s13563-019-00191-6. The capturing by government of some part of total resource revenues as government revenues (mainly taxes and royalties) is crucial to generate development for many reasons, not least that the mineral resources are considered non-renewable. 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 should also be noted that for some countries, there is no GDP figures for a certain year. Nickel and zinc are each roughly an order of magnitude smaller and approximately the same level as the fertilizer minerals phosphate and potash: 23% of the total value of production at the mine stage. For some countries, production value as percentage of GDP and mineral exports is even higher in 2016 because of a strong growth in production offsetting the decline in prices. The global mining industry experienced a period of unprecedented change during the first 15years of the new millennium. A period with low profitability and limited investments very quickly turned into a situation with record high metal prices, improved profitability and a plethora of new investment projects. Given the uncertainties discussed in the Methodology section above, it seems as if a careful recalculation of the mineral rents would be useful in order to determine more precisely their contribution to national economies or perhaps the replacement of this indicator by using value added in the sector. In some cases, it is further difficult to separate between employment in the mining sector from oil and gas industries. Note: Other circles are other countries and their position in 2014. There is a need to further develop the contribution index to deal with this issue. Sierra Leone, DR Congo and Mongolia are all countries where non-fuel mineral exports account for more than 80% of total exports. This site uses cookies to optimize functionality and give you the best possible experience. 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. 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? Employment is further somewhat less volatile than the other factors under study, and there was for example only a marginal dip during the global financial crisis in 20082009. and ICMM 2018pp. The mining industry contributed close to R400-billion to the Gross Domestic Product (GDP) last year despite facing economic challenges and the COVID-19 pandemic. For each of the MCI-Wr top 20 low- and middle-income economies, Fig. This rapid growth and later equally quick decline in value of metal and mineral production naturally had strong effects on MCI-Wr. The MCI-Wr index for individual countries has moved up and down depending on the performance of their mining sector relative to other sectors of the economy and on the global metal market trends. It is notable that the top 20 MCI-Wr group of countries has managed to develop at the same pace in this period as have the rest of world group (RoW) including most high-income countries. Exploration expenditure as a percentage of production value at mine stage (sourced from SNL Metals & Mining, the data was previously presented by Metals Economic Group and lately by S&P Global but is one continuous time series). Ghana - Mining Industry Equipment - International Trade Administration Among the 20 countries with highest MCI-Wr, there are two high-income counties (Australia and Chile) while among the next 30 countries, Canada is the only additional HIE. In reality, if all metals and minerals would be included, and if all exploration undertaken by all types of entities, not only corporates but also governments, total exploration on both a national or global basis is definitely higher than indicated by SNL. In the present version (MCI-Wr), we have chosen to relate the exploration expenditure to the mine production of each country and not as earlier use the absolute size of exploration as the indicator. Exploration increased by 15% in 2017.Footnote 23 Investments into new mines remain however at low levels. This sustained strong economic performance goes against the accepted wisdom that even though the mining sector, like other extractive industries, can generate foreign exchange and fiscal . Although . 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. Categories > National Accounts > National Income & Product Accounts > Industry. All the countries in the MCI-Wr top 20 together account for 19.1% of total world production value, but Chile and Australia together, the only high-income countries, stand for 13.3%. Gold stands out in that its price did not fall as precipitously as several other metals. James Otto, The competitive position of countries seeking exploration and development investment, Journal of the Society of Economic Geologist, Special Publication 12, pp. In addition to the countries mentioned above, Kazakhstan and Russia have moved from the lower-middle to the upper-middle group. Magnus Ericsson. the average annual total compensation per job in the mining industry is almost twice the all-industry average of $69,311. Namibia, Suriname, Peru and Botswana were classified as lower-middle-income countries in 1996 and upper-middle-income countries in 2016. 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. A discussion of the second and third question follows: changes in contribution over time both since 2014 and over the entire period under study. - 94.182.178.53, Islamic Azad University Vice President of Research and Tech (3000206431) - Islamic Azad University Central Organization (2000333760). The development of the Gini coefficient in the 20 low- and middle-income countries with the highest MCI-Wr ranking in 1996 over a period until the mid-2010s is shown in Table 10.