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
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