ABSTRACT
According to conventional wisdom, countries that possess rich mineral deposits are fortunate. Such deposits are assets which form part of a country’s natural capital. Mining is the key that converts dormant mineral wealth into various forms of capital that directly contribute to a nation’s economic development. Despite the intuitive appeal of conventional wisdom, a new view of mining has emerged over the past two decades that questions the positive relationship between mineral extraction and economic development (Davis and Tilton, 2002). The issue, therefore, is how to ensure that mining contributes as far as possible to economic development and poverty reduction not only for a country as a whole, but also for the localities which are directly affected by the mining. The negative socio-economic and environmental effects of mining, particularly surface gold mining, which can counteract much of the positive effects of mining, need to be considered (Sarin et al., 2006).
