AmCham Macedonia Fall 2018 (Issue 59) | Page 7

Fall 2018 / Issue 59 Economic boost from the mining industry Minerals and metals are the basic elements of computers and smartphones, vehicles and public transport, the facilities where we live or work, and the green technologies that make the world a more sustainable place to live. Their benefits have entered our everyday life and thanks to them, the standard of living on a global scale has been greatly improved over the past 100 years. Mining through numbers According to the National Mining Association (2016), the U.S. mining directly and indirectly has generated more than 1.5 million full-time and part-time jobs in 2017, including employees and the self-employed. U.S. mines accounted for 523,000 jobs and jobs in other industries attributable to or induced by U.S. mining totaled more than 1 million. U.S. labor income associated with U.S. mining exceeded $95 billion in 2017, which includes wages and salaries, other employee benefits and owner-operator business (proprietors’) income. Numbers by the Mining Association of Canada, 2017- Facts and Figures of the Canadian Mining Industry indicate that mining is an important driver in the Canadian economy as well. Beyond its direct economic impact, the industry also supports many firms and sectors that supply mining with the goods and services it needs to function. The industry directly employs more than 403,000 workers across the country in mineral extraction, smelting, fabrication and manufacturing, and indirectly employs an additional 193,000. Proportionally, the mining industry is also the largest private sector employer of Indigenous peoples in Canada and employment is poised to increase. The industry’s $57.6 billion contribution to Cana- da’s gross domestic product in 2016 included $24.5 billion in mineral extraction, and $32 billion in mineral processing and manufacturing. The average annual pay for a mining worker in 2016 exceeded $100,000, which surpassed the average annual earnings of workers in the forestry, manufacturing, finance and construction sectors respectively. In terms of the mining industry, Macedonia is a country rich with copper, iron, lead, lignite, zinc, and other minerals. In the mining sector there are total of 4,257 employees at average gross salary of $910 compared to the $647 on a national level and 144 legal entities registered under the mining sector. Macedonian mines export 3 556 425 euros Cover Story EMPLOYMENT IN THE MINERAL EXTRACTION STAGE, 2007-2016 a year (example from 2015) and mining along with the energy sector and industry processing contribute with 16 % to the GDP according to the official data by the State Statistical Office (2018). It is important to understand the potential positive impacts that the mining industry could have in Macedonia and its communities. Based on examples from Canada and the US, these impacts typically spread through different job positions and training, business cooperation, improved infrastructure, scholarships, funding for sports, healthcare and community groups etc. In terms of the labour market, the mines usually offer diverse job positions that are not strictly mining related jobs and employees go through rigorous in-depth training and know-how exchange with experienced managers in the sphere. The skills gained from the mines could be well applied elsewhere in the job market, including the fact that other businesses might be attracted by the pool of skilled labour. The diverse job offerings in the mining business are admin staff, accountants, database managers to operational workforce like truck drivers, shovel operators, topographic surveyors, geologists, engineers just to mention a few. Nonetheless, mining is important for national govern- ments as well due to the fact that the country’s wealth is directly correlated to the export of minerals and metals, and the taxes that mining companies generate for the national budgets. Practicing safe mining is also crucial to environ- mental development, as modern mining companies are strictly regulated and this is highlighted through the latest low-carbon regulations imposed by governments so that companies must learn how to operate in a carbon-restricted world. In fact, mining industry promotes more efficient use of energy, environmental awareness, and cutting-edge tech- nology to minimize impact on the environment, projects for access to clean water and rehabilitation programs. Lastly, the service and the manufacturing market in Macedonia would benefit greatly from the development of the mining industry, as mining projects quite often are ambitious ones that would need the help from local businesses to bring them up to speed. AmCham Macedonia Magazine 7