Extractive Industries

Minerals and metals are the foundation of modern economies and are crucial to everyday life. From smartphones to electric vehicles, urban infrastructure, and fertilizers, they are the essential components in technologies and economic sectors we rely on. In many countries, the mining sector drives growth by generating exports and government revenues, creating jobs, and supporting local businesses and infrastructure development.

Demand for key minerals, such as copper, lithium, graphite, nickel, and rare earth elements, is expected to nearly double by 2040. Meeting this surging demand will require over $500 billion in new mining investment by 2040 and $1.7 trillion across mining, processing, and infrastructure by 2050. This creates a historic opportunity for developing countries to engage in the minerals and metals sector, diversify their economies, and increase their participation in global supply chains. Expanding from primarily extracting raw materials to processing, refining, and manufacturing means more of the value and jobs created by minerals stay local. To unlock this potential, countries need to overcome barriers, including:

• Weak policies and governance frameworks;
• Inadequate foundational infrastructure (including power, transport, water, and geodata infrastructure); and
• Limited access to long-term, affordable private capital, as mining projects are capital-intensive and high-risk.

The World Bank Group supports countries in several ways:

• We provide knowledge, policy advice, and technical expertise to strengthen governance, improve investment climates, and design transparent frameworks for mining and mineral value chains.
• We embed strong environmental, social, and governance (ESG) standards into mining operations, ensuring that mining delivers tangible community benefits and protects natural resources.
• We mobilize financing, equity, guarantees, and political risk insurance to make responsible mining investments bankable and scalable. Finally, we also support countries as they repurpose and rehabilitate mining lands, promote recycling, responsibly handle mining waste, and promote post-mining redevelopment—transforming former mine sites into renewable energy hubs, industrial zones, or community assets.

Our goal is to help countries use their mineral wealth to create jobs, grow industries, and improve lives. With sound governance, strategic investment, and environmental safeguards, these resources can become engines of growth that drive industrialization and regional development.

Over the past decade, the World Bank Group has funded approximately $10 billion in mining projects, and lending in the sector is expected to grow significantly from $3 billion during FY21–25 to an estimated $17 billion in FY26–30.

Last Updated: Nov 07,2025

The World Bank Group is scaling up its support to help countries attract investment, develop infrastructure, strengthen governance, and uphold strong environmental and social standards.

By doing so, we help countries unlock the full potential of their mineral resources, build resilient economies, and create jobs across the value chain. Our approach is tailored to each country’s specific context, supporting better governance and institutional capacity in some countries while expanding processing, manufacturing, and trade in others.  

We focus on three interconnected pillars:

I. Policy, Governance, and Institutional Strengthening

Strong governance is the foundation of a responsible mining sector. The World Bank Group supports governments to:

• Reform mining codes, fiscal frameworks, and legislation to attract responsible investment.
• Strengthen transparency, ESG standards, and benefit-sharing mechanisms.
• Provide advisory support to help governments and communities plan downstream investments and manage benefits fairly.
• Create the enabling environment through financing and global knowledge initiatives.
• Support mine closure, rehabilitation, and repurposing.

These efforts enable countries to capture greater value, enhance accountability, and establish institutions that can manage mineral wealth effectively.

II. Key Enablers for Mining-Led Value Addition

Minerals can drive development far beyond mine sites. Integrating processing and manufacturing into mineral value chains can significantly boost development. To realize these benefits, countries need to develop infrastructure—especially power, water, and transport—so they can affordably and reliably extract, process, and move minerals.

The World Bank Group supports countries to:

• Expand reliable and affordable physical (power, transport, water), and human capital (skills) infrastructure.
• Improve access to geodata and build capacity for contract negotiations and resource management.
• Develop regional economic corridors that connect mineral-rich areas to manufacturing and markets.
• Promote recycling and circular-economy solutions to extend the life of mineral value chains.

III. Private Sector Mobilization and Innovation

Mining requires capital, often more than governments can afford on their own. The World Bank Group helps to:

• De-risk private investment and provide long-term financing for project development.
• Manage environmental and social risks and promote responsible business conduct.
• Support research, technology transfer, and innovation to increase competitiveness and sustainability.
• Mobilize private capital in high-risk environments to create jobs, diversify supply chains, and expand local industries.

Country Compacts and Tailored Engagements

To turn strategy into action, the World Bank Group will implement country compacts in selected mineral-rich countries. These compacts will align policy, investment, and knowledge support across the value chain—from mining to processing and infrastructure.

Each compact will be tailored based on:

• Geological potential and data availability
• Government commitment and policy readiness
• Potential for transformative, in-country value addition
• Presence of responsible investors and adherence to strong ESG standards.

Countries that meet most criteria can receive targeted investment support, while others will focus on strengthening governance and enabling conditions.

Risk Management and ESG Focus

Responsible mining starts with strong environmental and social standards. All World Bank Group operations apply the World Bank’s Environmental and Social Framework (ESF) or IFC’s Performance Standards to ensure adherence to international best practices, meaningful consultation, and responsive grievance mechanisms. We work with clients to manage risks related to biodiversity, water, safety, gender-based violence, and community relations.

The World Bank Group also recognizes the importance of Free, Prior, and Informed Consent (FPIC) for Indigenous Peoples and the need for inclusive engagement with affected communities.

Last Updated: Nov 07,2025

The World Bank Group supports global and country-specific initiatives through the Extractives Global Programmatic Support (EGPS) Umbrella Trust Fund, which operates through four thematic windows, including:

1. Resilient and Inclusive Supply-Chain Enhancement (RISE) Partnership:
   Established in 2024 under Japan’s G7 Presidency, the RISE Partnership helps countries strengthen mineral governance, attract investment, and develop sustainable supply chains. It supports reforms, infrastructure, skills development, and intra-regional trade to create local value and jobs.
2. Climate-Smart Mining (CSM) Initiative:
   The Climate-Smart Mining Initiative helps countries mitigate the environmental impact of the sector and strengthen local livelihoods. It establishes a framework for responsible mineral development aligned with climate goals by advancing decarbonization, circular economy practices, and climate resilience while ensuring strong governance, community engagement, and environmental safeguards.
3. Artisanal and Small-Scale Mining (ASM):
   Artisanal and small-scale mining provides vital minerals for technology and clean energy but remains largely informal. It employs about 45 million people directly (up to half women) and supports another 270 million, often serving as the main nonfarm livelihood in rural areas. ASM contributes around 10% of global cobalt and 20% of gold bullion, yet informality can result in hazardous conditions, health risks, and gender-based violence. The World Bank Group’s new ASM Framework promotes the professionalization and social well-being of miners, empowering local communities and reducing poverty.
4. Transparency in Extractive Industries:
   The Transparency framework underpins our work for a well-governed extractives sector. It enables citizens and civil society to hold governments and industries accountable, foster transparency and dialogue, and improve governance models.

Last Updated: Nov 07,2025

Over the past decade, the World Bank Group has funded about $10 billion in mining projects, with lending expected to rise sharply to $17 billion in FY26–30. During this time, we have operated in over 75 resource-rich countries, delivering more than 400 analytical and advisory services to support policy reforms, improve investment climates, and strengthen institutional capacity.

Building the Future of Responsible Mining

The World Bank Group continues to drive innovation, partnerships, and results through its mining and minerals programs, deepening collaboration with development partners, multilateral development banks, the private sector, academia and civil society to build responsible and transparent supply chains. Through this work, the World Bank Group is helping countries transform their natural resource wealth into jobs, industries, and lasting prosperity—ensuring that mineral development fuels opportunity, resilience, and growth.

Recent examples include:

Investing in Human Capital through the Simandou Project (Guinea): As Guinea prepares for one of the world’s largest iron ore developments, the Simandou Project will create conditions to translate mineral wealth into human development. The World Bank Group is supporting the government to improve sector governance, sustainability and institutional capacities to collect and manage mining revenues and direct a share of proceeds toward local and skills development as envisioned by government. The focus on human capital aims to equip young people with higher learning and technical and vocational skills needed across the economy—ensuring that growth from mining leads to better jobs, social progress, and long-term productivity. progress, and long-term productivity.

Improving Regional Connectivity through the Lobito Corridor (Angola, Zambia, DRC): The Lobito Corridor is strengthening regional connectivity across Angola, Zambia, and the Democratic Republic of Congo. By modernizing one of Africa’s historic railway lines, the corridor provides landlocked, mineral-rich regions a more efficient route to global markets for copper, cobalt, and other critical minerals. This reduces transport costs, supports trade competitiveness, and catalyzes investment in logistics, manufacturing, and services along the route. The project also fosters regional integration, creates local jobs, and serves multiple purposes beyond the mining sector, including the transportation of agricultural products.

Enhancing Institutional Capacity and Community Benefits (Papua New Guinea): Since the late 1990s, the World Bank Group has been working with Papua New Guinea to create an enabling environment for sustainable mining by improving environmental and social standards, strengthening legislation and institutions, and building more meaningful relationships with mining-affected communities. This includes a pioneering initiative to empower women in mining, increase local benefits and mitigate health and safety risks. Altogether, our work has supported institutional capacity, benefit sharing, transparency, and early community engagement to translate mining activity into better development outcomes.

Some additional investments and partnerships include:

• Mauritania (DREAM Project) supports the country’s potential to become a hub for iron ore processing. In 2023, the iron ore sector generated 14% of state budget revenue, 9% of GDP, and 37% of total exports, with an established local mining company. Support includes the $82.5 million IDA DREAM Project on skills and economic diversification, potential advisory for renewable energy investment at iron ore mines, early-stage support to private energy developers, and assistance on a shared infrastructure plan for green hydrogen.
• Anglo American (2022): IFC’s first sustainability-linked loan in mining—$100 million—supported education for 73,000 schoolchildren and local small business capacity near their South African operations, with exclusive focus on social development indicators.

Last Updated: Nov 13,2025