Sustainability website / Economic contribution / Socio-economic development

The economic contribution and development impact of Xstrata’s operations and projects are particularly significant for communities in remote areas, developing countries or regions with high unemployment or a low level of state support and amenities. These include Xstrata’s sites and projects in Peru, the Philippines, New Caledonia, Colombia, South Africa, some remote areas of Australia, Canada and north Chile.

The development of a nation’s mineral wealth often marks an important step in its socio-economic development and can contribute to sustainable improvements in health, prosperity and living standards. Mining makes an important contribution to many of the world’s developing economies and foreign investment is often critical to successfully realising mineral resources. However, in some countries, mineral wealth has not prevented economic stagnation, social conflict and political problems.

Helping host countries and communities to unlock the benefits of mining is critically important to the continued ability of the mining industry to operate and gain access to new resources. ICMM’s groundbreaking Resource Endowment Initiative aims to identify the factors that are required from government, civil society and mining companies to enable countries and communities to benefit more from mineral wealth while continuing to attract foreign investment in the mining sector.

This initiative has been under way for over four years and has identified a number of key elements required to ensure mineral endowments are translated into sustainable benefits for host nations and communities in mining regions. Xstrata is actively participating in the next stage of ICMM’s work in Peru to catalyse partnerships to explore this research further and implement its findings. Similar work is being undertaken by ICMM in Tanzania and Ghana.