Strategies For Enhancing The Contribution Of Gemstone Mining In Developing Countries
Volume 3 - Issue 6, June 2019 Edition
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Author(s)
Dr. S Kambani
Keywords
Small-scale mining; gemstone mining sub-sector; Economic development; mineral policies; institutional framework support.
Abstract
The principal objective of this study is to suggest strategies for enhancing the contribution of gemstone mining to economies of developing countries (DCs). There are three major reasons for the study, namely, (i) the sub-sector’s apparent significant economic potential, (ii) a conspicuous lack of scientific literature on aspects of mining, processing and marketing, and (iii) the unique position held by gemstone mining in the world’s mining industry. The study focusses on five principal areas. First, the interrelationship between minerals and economic development is discussed. The special role and potential held by small scale mining (SSM) in contributing to the development objectives of DCs, is emphasized. Second, a review of the international gemstone industry is conducted. The high unit value of gemstones, the elevated geological risk, special mining techniques and complex marketing mechanisms, places the industry in a unique position within the world’s mining sector. A strong positive correlation is found to exist between the consumption of gemstones and the GNP per capita. The consumption is also found to set in only above a certain level of GNP per capita which provides an indication of where gemstone markets are. Thirdly, a detailed evaluation of policies and sub-sector constraints is presented. It is established that the sub-sector’s constraints are largely a direct result of an unsupportive policy environment. While aiming at improving the total operational business environment of the economy, policies must emphasize the role of free markets systems, state ownership of mines and control of marketing must be limited to improve the sub-sector’s productivity and efficiency. Effective mineral resource policies as reflected by sound mineral legislation as well as high quality of institutional framework support, is also a pre-condition to the successful development of the sub-sector. Lastly. Resulting from the investigation of policies and sub-sector constraints, options for the removal of constraints are identified. The identified options are then combined into a general development strategy model for the sub-sector.
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