The impact of Mining on Jordan’s Local Communities Al Hussain Bin Talal University Engineering College Mining Engineering Department Dr. Rami Al-Rawashdeh Dr. Awad Al-Titi Dr. Khaled Al-Tarawneh Eng. Mohammad Al-Awawdeh

Major Topics Introduction Contribution of Mining to Jordan’ economy Mining Wealth In Jordan Relationship between Mining dependence and socioeconomic indicators Comparisons of Socioeconomic indicators in northern, central and southern parts of Jordan Mining Companies contribution to local communities Conclusion & recommendation

Introduction The opening of a large mine has economic, environmental, and social consequences at the national and local levels. Large mines generate foreign exchange earnings and tax revenues and create employment directly and indirectly. Meanwhile, Local communities bear all the negative impacts of mining but receive few of the benefits. This presentation will explore the influence of mining on local community well-being with a comparison across a range of socioeconomic indicators.

Introduction: Jordan Major Development Indicators Human Development Index GDP per capita (at constant 2005 prices, USD) Adult literacy rate Infant mortality (per 1000 lives) Life expectancy at birth Year - 1221 65.4 60.2 1970 0.59 2109 43.3 66.2 1980 0.62 1799 90.5 30.0 69.9 1990 0.71 1926 98.9 23.3 71.6 2000 0.74 2817 98.8 17.5 73.4 2010 0.75 2855 99.1 16.0 73.7 2013

Major Topics Introduction Contribution of Mining to Jordan’ economy. Mining Wealth In Jordan. Relationship between Mining dependence and socioeconomic indicators. Comparisons of Socioeconomic indicators in northern, central and southern parts of Jordan. Mining Companies contribution to local communities Conclusion & Recommendation .

Contribution of Mining to Jordan’s economy (2013 est) It contributes to 4% to Gross Domestic Product (GDP) It contributes to 19 % of Total Exports It contributes to around 1 % of total employment Corporate taxes and mining fees (particularly for Jordan Phosphate Mines Company and Arab Potash Company) contribute to around 3 % of total government revenues

Contribution of mining to GDP from 1955 to 2013

Major Topics Introduction Contribution of Mining to Jordan’ economy Mining Wealth In Jordan Relationship between Mining dependence and socioeconomic indicators Comparisons of Socioeconomic indicators in northern, central and southern parts of Jordan Mining Companies contribution to local communities Conclusion & Recommendation

Mining wealth in Northern Jordan: North

Mining Wealth in central Jordan: Centre

Mining Wealth in Southern Jordan: South

Major Topics Introduction Contribution of Mining to Jordan’ economy Mining Wealth In Jordan Relationship between Mining dependence and socioeconomic indicators Comparisons of Socioeconomic indicators in northern, central and southern parts of Jordan Mining Companies contribution to local communities Conclusion & Recommendation

Relationship between Mining dependence and Human Development index from 2004 to 2013

Relationship between Mining Dependence and illiteracy rate from 2004 to 2013

Relationship between Mining Dependence and unemployment rate from 2004 to 2013

Relationship between Mining Dependence and Children suffering malnutrition from 2004 to 2013

Relationship between Mining Dependence and Life expectancy from 2004 to 2013

Relationship between Mining Dependence and Poverty rate from 2004 to 2013

Relationship between Mining Dependence and crime rate(per100,000) from 2004 to 2013

Relationship between Mining Dependence and infant mortality from 2004 to 2013

Major Topics Introduction Contribution of Mining to Jordan’ economy Mining Wealth In Jordan Relationship between Mining dependence and socioeconomic indicators Comparisons of Socioeconomic indicators in northern, central and southern parts of Jordan Mining Companies contribution to local communities Conclusion & Recommendation

Educational indicators South Region Middle North Indicator 11.3 7.2 8.7 Illiteracy (%) 3.3 2.9 2.8 Reading & Writing (%) 9.0 9.1 9.2 Net primary enrolment (%) 15.5 18.1 16.0 Net Secondary enrolment (%) 10.7 13.3 Bachelor Degree (%) 0.4 0.73 0.63 Master Degree (%) 0.15 0.23 0.2 PhD Degree (%) 0.93 0.96 0.94 Adult Literacy (Male) 0.83 0.89 0.84 Adult Literacy (Female) 0.88 0.92 Adult Literacy (Total)

Health Indicators Life Expectancy (Male) Life Expectancy (Female) South Region Middle Region North Region Indicator 68.9 71.3 69.9 Life Expectancy (Male) 71.7 73.6 72.9 Life Expectancy (Female) 2.7 1.15 1.58 Children Suffering Malnutrition (%) 26.0 19.0 20.0 Infant Mortality (per 1000) 2.6 0.1 % of Children that didn’t take Vaccines 0.84 0.73 0.83 Asthma (%) 2.3 1.3 2.2 Chronic Diseases (%) 0.78 0.45 0.70 Heart Diseases (%)

Economic indicators Indicator Human development Unemployment rate (%) South region Middle region North region Indicator 0.76 0.78 0.77 Human development 17.2 14.0 13.9 Unemployment rate (%) 12.4 16.3 Individuals below poverty line (%)

Major Topics Introduction Contribution of Mining to Jordan’ economy Relationship between Mining dependence and socioeconomic indicators Mining Wealth In Jordan Comparisons of Socioeconomic indicators in northern, central and southern parts of Jordan Mining Companies contribution to local communities Conclusion & Recommendation

Donations and Grants given by Arab Potash Company in 2013

Percentage of local communities expenditures (%) Total mining profits Table: Expenditures of Mining companies on local communities all over the country Percentage of local communities expenditures (%) Total mining profits (000) Total expenditures on local communities Year 1.7 75,326 1263 2005 5.8 77,846 4542 2006 1.1 276,797 3104 2007 1.5 775,516 11920 2008 1.3 316,787 4086 2009 2 342,534 7105 2010 1.6 627,386 10,083 2011 3.7 466,051 17,093 2012 5.4 369,933 20,288 2013

Major Topics Introduction Contribution of Mining to Jordan’ economy Relationship between Mining dependence and socioeconomic indicators. Mining Wealth In Jordan. Comparisons of Socioeconomic indicators in northern, central and southern parts of Jordan Comparisons of Socioeconomic indicators of Mining cities in Jordan. Conclusion & Recommendation.

Conclusion and recommendations Development Indicators ( e.g. economic, health and education) in the southern mining territories have lower values than in the northern and central parts. Though Mining Companies contributed to local communities development, but it was not enough especially when mining companies were achieving very high profits.

Conclusion and recommendations local communities should participate in decision-making and share the benefits of mining and governments should work as an intermediary between mining companies and local communities to insure their rights. Policies and rules have to be developed for redistributing part of mining wealth to local communities ( e.g. part of mining fees, taxes and profits ) and this has to be based on specific formulas.

Conclusion and recommendations Some developing countries establish a Mineral Development Fund (MDF), which is used to help fund public mining sector institutions and for funding projects in mining communities, e.g. in Senegal, 20 percent of mining revenues (taxes and royalties) are used to create a national equalization fund. The local authorities from the mining region would receive 60 percent of the fund, with the remaining 40 percent being shared by other local authorities in the country.