Mining can bring substantial investment, exports and employment to national economies. In Chile, mining generated US$63 billion in exports in 2025, (59% of export earnings), US$7.42 billion in taxes, and 305,000 direct jobs. Yet the communities closest to a mine do not necessarily benefit.
This is the “paradox of proximity”. Neighbouring communities experience the most immediate impacts and have the strongest expectations of benefit. But where they are remote or disadvantaged, nearby communities may be least well equipped to secure jobs or contracts because of gaps in skills, infrastructure, finance or business capacity.
Responsible mining standards can help close that gap, by translating broad commitments into practical expectations against which company action and outcomes can be assessed.
From opportunity to outcomes – and related disclosures
The International Council on Mining and Metal’s (ICMM) Principle 9 commits company members to contribute to the social, economic and institutional development of host countries and communities. It’s related Performance Expectations call for inclusive identification of community development priorities, access to local enterprises for contracting opportunities throughout the project lifecycle, and partnership with government and other development actors.
Taxes, royalties and social investment matter, but employment, procurement, skills development and enterprise development create more immediate connections between a mine and its surrounding economy. A recent study estimated that every mining or contractor job supports around three additional Chilean jobs, and every US$1 of mining’s contribution to GDP generates approximately US$0.80 elsewhere in the economy, including through demand for business services, construction, transport, engineering, logistics and technology.
However, these wider economic benefits do not necessarily accrue to the regions and communities hosting mining operations. The challenge is to strengthen local economic linkages so that mining activity translates into lasting regional development.
Building regional supplier networks and capability
Procurement is one of the most direct ways mining can strengthen local economies, particularly in Chile, where mining accounted for 53% of GDP in Antofagasta 33% in Atacama and 29% in Tarapacá in 2023. The challenge is to convert that economic weight into lasting opportunities for local businesses.
The Quellaveco mine in Peru’s Department of Moquegua, shows how this can work in practice. Between August 2018 and April 2024, Anglo American and Quellaveco contractors reported approximately US$528 million in purchases from over 4,100 regional suppliers. A local business portal publicises demand from the company and its contractors, while a supplier-certification initiative had helped 156 local businesses achieve SGS safety certification by the first quarter of 2024. These initiatives combine access to opportunities with practical support to help local enterprises meet industry requirements.
| National/Regional focus | Reported information | What this illustrates |
| Chile overall (2025) | US63 billion export; 305,000 directly employed | The national scale of mining’s economic contribution in Chile |
| Quellaveco, Department of Moquegua, Peru | US$528 million in procurement; 4,121 local suppliers | Procurement combined with supplier support programme |
| Los Pelambres, Choapa Province, Chile | 52% local employment; US$211 million local procurement, US$2,206 million nationally | The local employment and economic impacts as well as national procurement |
Minera Los Pelambres in Chile’s Choapa Province offers another example. Its local supplier portal connects contractor’s purchasing needs with businesses in Choapa and the wider Coquimbo Region. By June 2026, more than 230 local suppliers and 70 partner companies were registered. Antofagasta’s 2025 Sustainability Databook reports that 52% of Los Pelambres workers were local, and that of some US$2.5 billion in procurement, 87% was spent within Chile and US$211 million (10%) locally.
Other mining companies are pursuing similar approaches. BHP’s regional ‘Suppliers & Future’ purchasing programme connects SMEs in Antofagasta and Tarapacá with opportunities at Escondida and its other Chilean operations, with a goal to reach US$3.5 billion in local purchases over the next five years. Codelco’s employment and supplier centre in Calama, developed with Sercotec and implemented by Proloa, had brought more than 240 local businesses into its network by November 2025.
Together, these examples show how standards can prompt practical action, making opportunities visible, closing capability gaps and drawing in major contractors.
Partnership for lasting local development
Beyond individual initiatives, the wider governance environment also matters. A 2021 ICMM study on social progress in mining-dependent countries found significant improvements in three quarters of 41 socioeconomic measures linked to 12 Sustainable Development Goals over 1995-2018. Countries with higher-quality governance tended to see stronger socioeconomic progress, with Chile scored performing well on both measures.
Intermediaries can help connect these actors. In Chile, Fundación Chile works through initiatives such as Expande and the CCM-Eleva Alliance to connect mining-company demand with technology suppliers and aligns workforce development with the skills a more automated industry requires. Such partnerships also have the potential to provide support to smaller and medium enterprises to meet the responsible sourcing requirements of larger companies which are increasingly the norm.
Ultimately, responsible mining standards can help establish clearer expectations for companies, improve transparency and accountability, and support partnerships that strengthen local economies.
Standards alone cannot guarantee strong local development outcomes, but they can foster a more systematic approach to delivering them. The ultimate test is not how much value mining generates overall, but how much benefit is created locally and endures beyond the life of the mine.
Aidan Davy joined ICMM in 2007 and serves as Co-Chief Operating Officer, leading work on mining standards, sustainability reporting, tailings management and policy engagement. With over 35 years of sustainable development experience, including at the World Bank and IFC, he specialises in environmental, social and governance issues, particularly in the mining industry.