Economics
Build Sustainable Mining-Driven Economies


Mining is booming throughout the developing world now, driven by the Asian industrial surge. IBI works with governments to put mining on a sound legal and regulatory footing. We also have developed a creative approach to infrastructure development. Most new mines imply major investments in transportation, electricity and water supply. IBI's regional planning approach looks for synergies with other economic clusters such as tourism, agriculture, fisheries, forestry, and artisanal mining to raise the overall rate of return on infrastructure. Using this approach and working with local officials and communities, in one of the poorest regions of Madagascar we were able to turn a $325 million mine investment into a $710 million multi-sectoral investment program. Over $500 million was pledged in the first year.

Small scale, artisanal mining (ASM) has emerged as an important means of creating jobs, diversifying rural employment, and raising incomes. ASM can be a good neighbor to formal mines when its environmental impacts are minimized, a responsible social structure develops, and good communications are maintained among artisanal miners, mining companies and government. In Tanzania, Liberia, Central African Republic and Madagascar, IBI worked from the grass roots to the highest levels to establish and implement policy and law that put both types of mining on a sound legal and administrative basis. We specialize in formalizing artisanal mining and have helped protect of thousands of rural jobs and reduce environmental damage and risks such as money-laundering and illegal arms trading.

To strengthen the Tanzanian ASM sector, IBI conducted a two-year USAID-funded pilot capacity building program resulting in a better administered sector, the creation of new jobs and a reduction of poverty in rural areas.

Pilot programs

  • Training of trainers to improve environmental and technical practices
  • ASM value-added (jewelry making)
  • Support to SMEs to become suppliers
  • Chamber of Mines workshops

Results

  • 50,000-70,000 formal ASM jobs created
  • Miners reduced water and air pollution
  • Tanzanite Protocols stabilized global market crisis
  • Mining economics integrated into policy
  • Technical best practices proven
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