ICMM says Suriname jumps to top of MCI

The International Council on Mining and Metals has published new research outlining how many of the world’s poorest countries have become more dependent on their income from mining despite a decline in commodity prices.

The findings are part of the ICMM’s fourth Mining Contribution Index that ranks 182 countries according to the relative economic importance of natural resources to their economies. The latest Index confirms that between 2014 and 2016, many mineral dependent countries, including Suriname became even more dependent on mining revenues. The Mining Contribution Index (MCI) combines data on the contribution of the mining industry to a country’s gross domestic product as well as royalties paid to host governments. The ranking indicates the importance of mining to the economic life of a country the potential for this to translate into economic and social progress. Unfortunately, it does not tell us if this potential has been realized. According to the ICMM’s latest report, Suriname rose 46 places to the top of the Index. In Suriname mineral output reportedly doubled in value but the GDP fell 38 percent. A falling GDP was also seen in the second and third largest gainers. In 2016 Suriname was on the 47th spot. Aidan Davy, ICMM’s COO, had this to say: “This research shows the importance of getting the framework that governs mineral resources right if governments are to ensure that mineral wealth translates into broader-based economic and social progress.

“It also shows the need to diversify and invest in other areas to insulate their economies from vulnerability to the commodity cycle” he added.