ABSTRACT
The development of mineral resources has been one of the important factors in plans and programmes of any country's economic development. Many developing countries attract foreign investment in exploration of their mineral resources in order to accelerate their economic growth. Foreign investment in mining can have both positive and negative social, environmental and economic outcomes in recipient countries. This chapter examines the emerging social and human rights dimensions and trends in mineral extraction in developing countries. The operation of mineral projects may produce negative socio-economic and cultural impacts, including changes in land-use patterns, human rights abuses and destruction of cultural heritage and biodiversity. Payment of compensation is one of the most contentious issues in any conflict between the community, the state and mining companies. A fundamental problem relating to payment of financial compensation can arise in circumstances where the local or indigenous community may not have sufficient institutional and management capacity to deal with an influx of cash flow.
