New Tech, New Deal: Mining policy options in the face of new technology
Summary
The report examines how digitization, AI, and automation are restructuring the mining industry, potentially reducing low-skilled employment and altering fiscal revenues for host countries. It suggests a 'new deal' based on collaboration between governments and companies, focusing on skills training, economic diversification through social impact investing, and the strategic use of technology to benefit local communities and artisanal miners.
Key insights
- Technological adoption in mining is driven by several factors, including declining ore deposits, more difficult geology, the need to improve worker safety, and the necessity of managing environmental impacts.
- The labor market in mining is undergoing a restructuring where automation, drones, and the IoT create high risks for low- and semi-skilled occupations, while creating new, higher-paying roles in engineering and information technology.
- New technologies may negatively impact host government finances by reducing payroll taxes due to a smaller workforce and increasing the risk of base erosion and profit shifting as value is moved to foreign technology providers.
- In artisanal and small-scale (ASM) operations, basic technologies can improve safety and environmental performance, but productivity-enhancing tools risk displacing the large numbers of low-skilled workers, including women and youth, who typically characterize the sector.
- To address skills mismatches, the report recommends partnerships between universities, training institutions, and the mining industry to design curricula, alongside increased government spending on STEM education, particularly for women.
- Governments are encouraged to move beyond traditional CSR toward 'social impact investing' to foster self-sustaining, profitable entrepreneurial activities in non-mining sectors like light industry or agriculture.
- Mining companies can provide direct benefits to local communities by sharing high-speed connectivity, providing real-time data on tailings dam stability and water quality, and sharing GIS mapping for agricultural use.
- Digitalization offers governments tools to improve resource governance and tax collection by providing real-time data on the grade and quantity of extracted ores, which helps prevent corruption and profit shifting.
Cite the original document
- APA
- Ramdoo, I., Cosbey, A., Geipel, J., & Toledano, P. (2021). New Tech, New Deal: Mining policy options in the face of new technology. International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-09/new-mining-technology-policy-options-summary-en.pdf
- Chicago
- Ramdoo, Isabelle, Aaron Cosbey, Jeff Geipel, and Perrine Toledano. New Tech, New Deal: Mining policy options in the face of new technology. International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-09/new-mining-technology-policy-options-summary-en.pdf.
- Wikipedia
- {{cite report |last1=Ramdoo |first1=Isabelle |last2=Cosbey |first2=Aaron |last3=Geipel |first3=Jeff |last4=Toledano |first4=Perrine |title=New Tech, New Deal: Mining policy options in the face of new technology |publisher=International Institute for Sustainable Development |date=August 2021 |url=https://www.iisd.org/system/files/2021-09/new-mining-technology-policy-options-summary-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{ramdoo2021new, author = {Ramdoo, Isabelle and Cosbey, Aaron and Geipel, Jeff and Toledano, Perrine}, title = {{New Tech, New Deal: Mining policy options in the face of new technology}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = aug, url = {https://www.iisd.org/system/files/2021-09/new-mining-technology-policy-options-summary-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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