Page 8 - Mines and Minerals Reporter eMagazine - Volume December 2024

MINING GROWTH

have been formed by the government of India through DGMS empirical evidence found that natural capital crowds out
(Directorate of General of Mines Safety) mining act-1952. The the human capital which is a big factor to slower down the
mining law and guidelines are being articulated mostly for economic development and growth of nation (World Bank,
the mining affected peoples benefit. The frequently affected 2011; James, 2015). The reason behind the economic crisis in
people by the hazardous process of mining can claim the mineral rich countries is lower public expenditure on human
sufficient benefits for their livelihood security, smooth and capital (education and skills, health) rather choose to hire
healthy life. skilled and educated outside laborers (Esham et al, 2005).
The expenditure on human capital is not significant which
LITERATURE REVIEW pull down the mineral rich countries from development.
at the same time, the countries like Finland and Norway
have their expenditure more on human capital which
Developing countries like India can generate employment helps them to overcome the problem of resource e curse
due to abundant labour by mining industry rather the satisfactorily(Holden, 2013; Shao and Yang, 2014).
developed countries where the process more mechanize and
capital intensive. The mineral sector provides employment, There is a huge amount of revenue and foreign exchange
tax revenue and other benefits to the public as well as reserves have been contributed by the mining industries to the
process of economic development in a nation (Hilson, 2002;
Roopnarine, 2006; Mishra, 2009). It can be applied to India;
the mining sector has contributed a significant share after
the policy changes and proper monitoring system in 1980s.
More numbers of private enterprises were entered into the
sector and became more vibrant after the economic reform,
1991 in India. There has been a greater change in policy in a
global prospect through globalisation in 1991 to attract more
FDI into mining sector for the growth and development. The
economic reform has not only facilitated development and
growth but also strengthen the mining sector with better
employment opportunities and other benefits. The changes
in policies have brought economic strength to both rich
and poor. For instance, capitalists can earn more profit by
investment and it generates employment for the local poor
people. The employment opportunities in mining sector
are facilitating more income to the poor and strengthen
their standard of living. Moreover, the mining activities and
government. The abundant natural resources can contribute industrialisation creates market and business opportunities to
a large part to the development through mineral industries other non-mining worker or local residents which brings the
and related other sectors. The infrastructural development outmigration down (Black, McKinnish & Sanders, 2005). The
is also an achievement by the mining industrialisation. Most social sector is also strengthening by mining activities through
of the natural resources are available in forest tribal area the development in infrastructure, health, education and
which is remote villages and the infrastructure such as rail, roads for the local people in mines area (Das, 2005).
road, power, township, schools and air field’s facilities are
given by the industries. For instance, the copper abundant Odisha has a huge mineral resources deposit which attracts
countries such as Congo, Chile and Peru have improved the domestic as well as international investors to invest in
infrastructural development by mining industries (Daniel No. extractive sector. Importantly, after economic reform, 1991,
Lapedas, Encyclopedia of Energy, Hill Book Company, 1976, (LPG) most of the MNCs from outside are investing which makes
page 1383). The economy of a region, culture, all over society mineral destination hub to a poor state like Odisha. There
across the globe have affected by the mining activities. is a positive as well as negative impact of mineral resource
abundance in the state. In one hand, the mineral resource
There are mainly five capital assets such as human capital, deposit facilitates the economic growth development and
natural capital, physical capital, financial capital and social infrastructural development and employment opportunities.
capital which are help to improve the economic development Paradoxically, although the natural resources, forest and tribal
in an economy. Human capital plays a vital role to develop the living in a parallel geographical area, it creates conflict due to
economy through health, education and skills. Etc. natural environment and livelihood threat from mineral extraction.
capital includes land, water; air and forest also have the
contribution to the growth of an economy. There are several Due to a variety of anthropogenic activities, such as

6 MINES & MINERALS REPORTER / DECEMBER 2024