Jordanian mining push will produce limited results

Subject

Outlook for the mining sector.

Significance

In recent years, the government has begun a drive to diversify the mining sector away from its traditional focus on potash and phosphates. Initial exploration efforts have offered promising indications of the potential for mining new metallic and mineral resources, especially in the south of Jordan.

Impacts

• Recent proposals to reduce electricity tariffs would attract more interest in the mining industry if implemented.
• The government may begin considering additional incentives for miners.
• Successful exploitation of oil shale will reduce energy imports and shore up Amman’s foreign exchange and debt position.
• Mining sector employment will grow, but not by enough to have a significant impact on wider discontent over socio-economic conditions.