JOHANNESBURG (miningweekly.com) – The global mining industry makes its biggest contribution in the world’s poorest regions, an International Council on Mining & Metals (ICMM) study has found.

The study, which became available in published form on Tuesday, finds that mining spurs the growth and development of national economies in general and impoverished economies in particular.

Created to catalyze strong environmental and social performance in mining, ICMM shows in its latest report that it is both possible and essential to strengthen the contribution of mining to economic and social development to make the world an economically stronger place.

Mining can account for as much as 60% to 90% of foreign direct investment (FDI) in low- and middle-income countries and 30% to 60% of total exports.

Like the first edition in 2012, ICCM's new report also assesses the different ways that mining brings growth to national economies, with the most important channels being FDI when foreign corporations invest in mining and metals operations and exports of the mining products.

“This report increases our ability to strengthen the contribution of mining and metals to development,” says Anthony Hodge, the president of ICMM, which has among its 21 major mining and metals members indigenous South African mining company African Rainbow Minerals, headed by executive chairperson Patrice Motsepe, Anglo American, AngloGold Ashanti, Antofagasta, Glencore, Gold Fields, Lonmin, BHP Billiton, Rio Tinto, Mitsubishi and Sumitomo.

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

Some very low-income countries, however, do rely heavily on mining for fiscal revenues, for example, the Democratic Republic of Congo, which relies on mining for 25% of its fiscal revenues, and Guinea, which relies on mining for 23%.

Botswana, a middle-income country, draws 44% of its revenues from mining.

“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,” Hodge adds.

Of the 35 countries most dependent on mining, all but Australia and South Korea are developing countries, and of the top 70 countries, 63 are low-income countries that stand to expand their national economies through mining-linked investment, exports, taxes and employment.

The report notes 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 traditional approach to understanding the economic importance of mining has been to focus on the percentage that any single country accounts for in total world mining production and, from that perspective, the five Brics countries of Brazil, Russia, India, China and South Africa have the biggest share of world production value, while Uzbekistan and Turkey are rising up the production value rankings to join emerging countries like Chile, Indonesia and Mexico.

The ancient mining industry has fostered economic development since the dramatic evolutions of humankind in the bronze and iron ages.

In contemporary society, the critical need for mining and metals across all societies is undisputed. But this report dramatically illustrates that mining in today’s world is also a potentially powerful engine of development.

The research underpins the priority of ICMM members to foster sustainable development based on a strong understanding of the role of mining and evidence of what works.

While global mining companies have the potential to generate significant economic benefits and also have disruptive economic, social and environmental impacts, the report says that positive impact is best assured by companies working together with governments and communities, using evidence and experience to plan well, and basing strategic decisions on long-term sustainability and the multiplier effects mining can have throughout the economy.