1. 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

2. 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

3. 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.

4. 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

5. 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 .

6. 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

7. Contribution of mining to GDP from 1955 to 2013

8. 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

9. Mining wealth in Northern Jordan: North

10. Mining Wealth in central Jordan: Centre

11. Mining Wealth in Southern Jordan: South

12. 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

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

14. Relationship between Mining Dependence and illiteracy rate from 2004 to 2013

15. Relationship between Mining Dependence and unemployment rate from 2004 to 2013

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

17. Relationship between Mining Dependence and Life expectancy from 2004 to 2013

18. Relationship between Mining Dependence and Poverty rate from 2004 to 2013

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

20. Relationship between Mining Dependence and infant mortality from 2004 to 2013

21. 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

22. 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)

23. 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 (%)

24. 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 (%)

25. 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

26. Donations and Grants given by Arab Potash Company in 2013

27. 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

28. 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.

29. 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.

30. 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.

31. 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.