CSEP Sustainable Mining Attractiveness Index (SMAI)
Reading Time: 3 minutesDistrict-level Study of Major Mining States in India
Abstract
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This paper presents the second edition of the CSEP Sustainable Mining Attractiveness Index (CSEP SMAI). The first edition evaluated the mining sustainability of 24 districts of Jharkhand. The second edition has expanded the scope to 323 districts across India’s top 12 mining states—Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, Tamil Nadu, and Telangana. These states produce various minerals, including bauxite, chromite, copper, iron, lead, manganese, zinc, and limestone.
Although they have significant mineral resources, some of these states are among the country’s more impoverished and rank poorly in various human development metrics. The paper highlights the economic importance of mining activities and the need to be environmentally responsible and safeguard the welfare and livelihoods of the local communities.
The SMAI aims to provide stakeholders with a holistic understanding of the potential of mineral resources-led, district-level development in states. The performance of all 323 districts from the 12 mining states has been divided into three groups (high, medium, and low) based on their mining characteristics and their mining potential and performance (MPP).
The SMAI has been computed by evaluating the districts under these three groups using various secondary data. The data were normalised and aggregated under the five broad pillars that reflect the sustainable mining attractiveness of a district: (1) mining potential and performance; (2) infrastructure; (3) policy and governance; (4) socio-economic status; and (5) the environment. The weighted arithmetic mean of the scores of the five pillars has been calculated to reach the SMAI score for each district.
The Index is computed based on investment attractiveness and sustainability. The MPP and the business-enabling positive economics pillars (policy and governance; and infrastructure) constitute investment attractiveness. The sustainability attribute rests on the normative economics pillars (socio-economic status; and the environment). The study results provide information for potential mining businesses and highlight policy priorities for respective governments and administrations to improve the attractiveness of districts for holistic, sustainable mining development.
Q&A with the authors
What is the core message conveyed in your paper?
The CSEP Sustainable Mining Attractiveness Index introduces a holistic approach to evaluate the performance of districts in India on their efficient, equitable, and sustainable extraction of mineral resources. While mining can provide jobs and essential raw materials for various downstream industries, it has often been criticised for its adverse environmental and social impacts. In this paper, we propose various indicators falling under five broad categories (the pillars of sustainable mining), which point towards an effective mining regime that can benefit various stakeholders.
What presents the biggest opportunity?
We find that some of the most impoverished communities in the country inhabit districts with the most significant mineral resources. District, state, and union administrations can all play a role in encouraging sustainable mining operations, which would create jobs, induce social development, and provide fiscal gains for the State governments. An evident low-hanging fruit is increasing investments in mineral exploration – only 29 per cent of India’s obvious geological potential has been explored, and various mineral resources require further exploration before mining can begin.
What is the biggest challenge?
One of the biggest challenges in existing and new mining operations is ensuring environmentally sustainable practices and treating local communities as equal partners. Despite the large scale of existing mining activities and the royalties and taxes earned from them, districts and states have not yet been able to uplift affected communities. The slack lies in many areas, including scarce access to potable water and poor health and education indicators. District administrations can use the findings of this study to isolate the focus areas for utilising District Mineral Foundation funds and other welfare schemes.
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