Development Concept in the Mining Industry - An Accelerator to Achieve Regional Sustainable Development

Mineral resources are national assets which must be capitalised for national development. Those assets should be transferred into real economic capital and then into social capital to achieve national/regional prosperity. Successful development in the mining industry will depend on the correctness in determining the role of mining industries for regional development. Using the context of sustainable development, this paper will analyse the concept and process of mining industry development as an accelerator to achieve regional sustainable development, using the mining operations of PT Newmont Nusa Tenggara (PT NNT) in Batuhijau, Sumbawa Barat Regency as a case study. In the premining activity phase, Sumbawa Barat was dependent on the agricultural sector. Agriculture contributed around 40 per cent of the regional gross domestic product (GDP). Meanwhile, in the activity phase, mining became the sector with the biggest contribution to regional economy. From its operation in Batuhijau, PT NNT contributed around 70 per cent of the regional GDP per year since 2001. In year 2000, the GDP had increased 170 per cent from its figure in 1999. However, due to its depleting reserve, PT NNT will finish its activity in Batuhijau by year 2015. Consequently, the Government of Sumbawa Barat Regency must develop other sectors in the post-mining phase to sustain economic development. Based on location quotient (LQ) and input-output analyses, Sumbawa Barat should develop its priority sectors, ie agriculture, trading and hotel, services and construction to achieve sustainability after mining life. Development of these non-mineral sectors is expected to sustain economic growth in the region.