STOCKHOLM (ResourceInvestor.com) -- Raw Materials Group, the mineral consultancy, and Global Challenge, a Swedish developmental NGO, today jointly launched the Mining for Development initiative. Its goal is to find new ways to enable mineral-rich developing countries to benefit from the long experiences of using minerals and mining to foster social and economic development that has been built in Sweden and other Nordic countries.
Nordic countries host most of the remaining mining and smelting industry in Europe. They are also home to world leading mining equipment companies, engineers, consultants and academic researchers. Add to this these countries' unique experiences of administrating and regulating exploration and mining both at local, regional and national levels, including government authorities, trade unions and industry. The need to improve governance of the sector is since long a standing issue in Sweden: to limit its environmental consequences, to minimise negative effects on health and safety of the mine workers, to optimise its social impacts or to safeguard adequate fiscal gains from mineral exploitation. Many developing countries still need assistance to address these issues.
Securing the supply of metals and minerals has become a high priority issue also in several major economies as the U.S., Japan, China and recently also the E.U. The importance of metals, whether the traditional LME metals or new rare metals such as lithium, gallium and indium has dawned upon politicians and the public. It is clear that no society can do without metals.
Most of the world's mining industry and the bulk of the remaining mineral resources are found in developing countries. Continued economic growth in emerging economies, in spite of cyclical swings, will keep metal and mineral demand at high levels. The race for resources will continue and even intensify. This opens up new opportunities for mineral rich developing countries, in particular in Africa - a giant continent which has not yet been systematically explored. Tragically however the extraction of mineral resources has often not been to the advantage of these countries' economic and social development. On the contrary - minerals have often contributed to conflicts and suffering, sometimes linked to poor economic performance and corruption. Today, however, with strong demand, continuing high prices - in spite of recent nervousness - and the present focus on corporate social responsibilities and transparency the chances are better than ever that the mineral riches can be used to further the economic situation of the majority of the population in the mineral rich countries.
Mining for Development is inspired by the successful Norwegian Oil for development programme in which the development agency Norad coordinates Norwegian experiences to support a sustainable development in oil rich developing countries. The project would supplement other initiatives such as for example the Extractive Industries Transparency Initiative and the African Union's mining project. The Mining for Development idea is supported by a wide range of Swedish actors from industry and government alike and will serve as a platform for the support from Swedish society to secure developmental gains from mining.
For further information please contact: Magnus Ericsson, Raw Materials Group, +46-70-558 0065
