Mining contribution index
Mining contribution index
Index (MCI)
6th Edition
This index is designed to improve the
understanding of the role of mining in
national economies. It illustrates the
importance of good mineral resource
governance if governments are to ensure
that mineral wealth translates into broad-
based economic and social progress.
ICMM Introduction 2
Mining is a multi-trillion-dollar industry The MCI synthesises into a number – and an
associated ranking – the significance of the mining
operating in all corners of the world. sector’s contribution to domestic economies. It is not a
When done responsibly, mining can measure of success. Whether or not a relatively high
transform communities, improve position on the index ultimately translates into broader-
based economic and social benefit depends on several
social well-being and reduce poverty,
factors, and the quality of good mineral resource
making a significant contribution to a governance is a critical one.
safe, just and sustainable world.
The MCI complements ICMM’s Mining Principles which
ICMM’s Mining Contribution Index set a strong benchmark for the industry’s
(MCI) aims to understand the environmental and social performance. They include the
significance of the mining sector’s application of ethical business practices that support
sustainable development and promote open and
contribution to national economies by transparent management of natural resources. ICMM’s
creating a ranking of the relative Social Progress in Mining-Dependent Countries (2021)
importance of mining to the economy report explores this topic further, finding that mining-
dependent countries with stronger resource
of a country.
governance achieve greater socio-economic
improvement over time.
Building on the methodology used in — Mineral rents as a percentage of GDP in 2020. This
is revenues above the cost of extracting minerals
previous editions, the 6th edition of and metals, as a share of GDP. It is the difference
the MCI is a composite of four between the value of production of minerals at world
indicators, each capturing different prices and their total costs of production.
aspects of mining’s contribution to Calculated from: Total mineral rents as a percentage
national economies: of GDP (World Bank)
ICMM 4
What has changed
in the 6th edition
of the MCI?
Table 1: MCI rank and scores for the top 25 countries in the 6th edition
Metallic
Metallic Change mineral
mineral, in min. and coal Difference
metals and exp. contr. production Mineral in rank
6th coal export 2015-20 value 2020 rent between
edition 6th edition contribution (perc. (as % of (as % of 5th edition 6th and 5th
rank Country MCI score 2020 points) GDP) GDP) rank editions
Two or less data points available Above 80 Above 60, Above 40, Above 20,
0+
Zero to 20
less than 80 less than 60 less than 40
Table 2: Top 20 countries ranked on the production value of metallic mineral and coal
1 China 217.8 1 0 79
2 Australia 121.0 2 0 15
5 Chile 44.8 7 2 13
6 Brazil 38.3 6 0 30
7 Canada 36.3 9 2 42
9 Indonesia 27.7 4 -5 36
10 Peru 24.0 10 0 20
11 India 21.7 11 0 66
12 Mexico 17.8 14 2 55
13 Kazakhstan 14.2 12 -1 22
15 Finland 8.9 40 25 44
16 Ukraine 6.9 18 2 35
17 Zambia 6.5 20 3 7
18 Uzbekistan 5.8 23 5 9
19 Poland 5.6 16 -3 77
Mining Contribution Index (MCI) 6th Edition What has changed in the 6th edition of the MCI? 7
What accounts for some of the major changes in the value and/or minerals rents as a percentage of GDP.
MCI rankings? This was not evident in the 6th edition as only four of
There are four countries which have risen to feature in the 10 countries dropping out of the top 25 saw their
the top 10 countries in the 6th edition of the MCI – GDPs increase – an outcome consistent with the global
Liberia, Mauritania, Uzbekistan and Papua New Guinea. decline of GDP caused by COVID-19. A more plausible
The reasons for this are varied across the four explanation is the pandemic-induced collapse in
indicators, however, all experienced an increase in demand causing commodity price and production
mineral and metal export contribution, as well as a declines, and increasing cost of mining production
larger improvement in mineral and metal export relative to production value bringing down mineral rent
contribution over the past five years compared to the contribution. Meanwhile, Burkina Faso, which rose five
5th edition. One commonality among the four new places to claim the top spot in the 2022 MCI, saw an
entrants, and the top 10 more generally, is their heavy increase across all mineral and metal contribution
endowment of precious minerals and metals – indicators, as well as a rise in GDP.
particularly gold and silver – whose prices and exports
The countries which experienced the most substantial
have increased since the 5th edition.1 This is likely owing
changes – either an improvement or a decline in their
to investors turning to these commodities as a safe
ranking of more than 30 per cent of the index (a
haven during the COVID-19 pandemic. Global precious
change of 55 places or more) – are listed in Table 3.
mineral and metal exports increased by 13 per cent from
Seventeen countries experienced dramatic changes to
2018 to 2020. 2
their rankings in the 6th edition, compared with just
Ten countries dropped out of the top 25 in this edition nine in the 5th edition and 11 in the 4th edition. In all
due to a range of factors, however, most experienced cases, the biggest gainers experienced positive
declining production value and minerals rents as a changes in export contribution, whereas the opposite
percentage of GDP. This includes Suriname, which was true for those countries that experienced a
suffered a severe decline in mineral rent contribution, significant decline in their rank. Most gainers also saw
knocking it off its number 1 position and down 36 either their production as a percentage of GDP or
places. In the last edition, one common factor among mineral rent contribution rise. Previously absent from
the countries dropping out of the top 25 was an the index due to a lack of published data, Iran entered
increase in GDP leading to a decline in the production the 2022 MCI in 41st position.
1. Gold increased from $/toz 1,269 to $/toz 1,770 between 2018-2020, while silver
increased $/toz 15.7 to $/toz 20.5 (World Bank, CMO Pink Sheet, 2021)
2. Global production value of pearls, precious stones and gold increased from
$471,783,028.7 in 2018 to $531,748,840.7 in 2020 (UNCTADstat)
Change in metallic
mineral and coal
Change in export production value Change in mineral
Gains/falls since contribution (as % of GDP) from rent (as a % of GDP)
6th edition rank Country 5th edition (2018-2020) 2018-2020 from 2018-2020
Mining Contribution Index (MCI) 6th Edition What has changed in the 6th edition of the MCI? 9
Conclusion
Overall, the 6th edition of the MCI upholds the findings improving resource governance through the
of previous editions with most mining-dependent implementation of the EITI Standard.3 While positive,
countries continuing to rank highly. The majority of further progress is needed. Many of those in the top 25
these countries are also low and lower-middle-income, are yet to become EITI member countries, and/or
underscoring the importance of mining to their remain at the lower end of Worldwide Governance
economies. In contrast to the previous edition, where Indicators’ rankings. Moreover, 64 percent sit in the
the highest-ranked countries in the 5th edition featured bottom half of the Sustainable Development Goal index,
prominently in the 4th edition, the 6th edition of the MCI signifying that mineral dependence is not consistent
showed less stability among the top-ranking countries. with SDG progress. It is clear that there is more to do to
This points to the impact of the COVID-19 pandemic on ensure mining’s contribution to national economies is
mining-dependent countries, with some economies maximised – for example through greater government
worse affected than others. efforts to manage their mineral resources responsibly
and continued determination by industry to ensure
Of the top 10 ranked countries in the 6th edition of the
mining translates into broader-based sustainable
MCI, eight are implementing countries of the Extractive
economic and social development.
Industries Transparency Initiative (EITI) making
moderate/meaningful or high/satisfactory progress in
3. https://eiti.org/countries
ICMM 10
Mining Contribution
Index (MCI)
Metallic
Metallic Change mineral
mineral, in min. and coal Difference
6th metals and exp. contr. production Mineral in rank
6th edition coal export 2015-20 value 2020 rent 5th between
edition MCI contribution (perc. (as % of (as % of edition 6th and 5th
rank Country score 2020 points) GDP) GDP) rank editions
Mining Contribution Index (MCI) 6th Edition Mining Contribution Index (MCI) 13
Metallic
Metallic Change mineral
mineral, in min. and coal Difference
6th metals and exp. contr. production Mineral in rank
6th edition coal export 2015-20 value 2020 rent 5th between
edition MCI contribution (perc. (as % of (as % of edition 6th and 5th
rank Country score 2020 points) GDP) GDP) rank editions
114 Antigua and Barbuda 33.2 6.7% 5.53 pp 0.00% 0.00 179 65
144 Hong Kong SAR, China 19.5 11.9% -1.54 pp 0.00% 0.00 140 -4
156 Costa Rica 14.2 1.3% 0.14 pp 0.00% 0.00 110 -46
161 St. Kitts and Nevis 13.5 0.7% 0.27 pp 0.00% 0.00 149 -12
162 Equatorial Guinea 12.4 0.3% 0.24 pp 0.00% 0.00 150 -12
168 Trinidad and Tobago 11.2 1.7% -0.24 pp 0.00% 0.00 135 -33
169 Macao SAR, China 10.5 3.7% -7.16 pp 0.00% 0.00 164 -5
171 Sri Lanka 10.2 2.0% -0.69 pp 0.00% 0.00 146 -25
176 Marshall Islands 9.0 0.1% -0.03 pp 0.00% 0.00 144 -32
178 St. Vincent and the Grenadines 8.6 0.4% -0.20 pp 0.00% 0.00 180 2
Mining Contribution Index (MCI) 6th Edition Mining Contribution Index (MCI) 15
ICMM stands for mining with principles.
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