Sector Programme
Extractives and Development
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Local Value Addition Construction Raw Materials

How are the cities of the future built? Which raw materials build the fundaments of wind and solar power plants? Construction raw materials are at the core of global future issues regarding increasing urbanisation and socio-ecological transformation. The sector programme “Raw Materials and Development” at the Federal Institute for Geosciences and Natural Resources (BGR) therefore devotes special attention to the topic of construction raw materials.

Construction raw materials and industrial minerals such as clay, lime, gypsum, sand and gravel, natural stone and crushed natural stone are comparatively cheap. At the same time, they involve high transport costs. They are therefore only suitable for export to a limited extent and their trade mostly focuses on a regional and local level. However, this is precisely why construction raw materials are of enormous importance for domestic value creation, especially in partner countries of development cooperation. A responsibly managed construction raw materials sector can contribute to strengthen the economy in the partner country and reduce poverty. Opportunities can arise especially for the promotion of employment, the development of local businesses or the expansion of infrastructure. At the same time, the often informally organised sector holds environmental, social and governance risks, for example with regard to soil erosion, land use conflicts, child labour, health and safety hazards or insufficient regulation. Basic information and reliable data on specific raw materials or contexts are needed, in order to better understand, promote or minimise development potentials and risks.

Using the potential for value creation

The aim of activities in the sector programme is to support enhancing the potential of construction raw materials for sustainable development in partner countries. To this end, a market study analysed the potentials and risks of selected construction raw materials and their value chains in metropolitan regions in India and Indonesia.

Strengthening formalisation

Based on the study in India and Indonesia, a collection of best practices from Africa, Asia, Europe and Latin America, as well as interviews with experts was developed. The report provides insights into different approaches to regulation and value creation, stakeholder inclusion, as well as environmental and human rights protection. The aim of the report is to formulate crosscutting learning opportunities for strengthening governance and formalisation in the sector.

Promoting sustainable and inclusive development

To enhance sustainable development, it is important to create a deeper understanding of the economic potential as well as the ecological, social and Governance risks associated with construction raw materials. This requires reliable data and in-depth analyses of context-specific impacts of the extraction of construction raw materials, for example regarding environment and climate, gender and political as well as social participation.

Contact: Evelyn Schnauder (External link)

Construction Raw Materials in India and Indonesia. Market Study and Potential Analysis.

Construction Raw Materials in India and Indonesia - Market Study and Potential Analysis. Preliminary Report.

File type PDF | Date of status 10/2020 | File size 8 MB, Pages 64 Pages | Accessibility Accessible

Construction Raw Materials in India and Indonesia - Market Study and Potential Analysis: Final Report

File type PDF | Date of status 05/2021 | File size 7 MB, Pages 128 Pages | Accessibility Accessible


BGR report: Building responsible construction material sectors. Insights from a global review

File type PDF | Date of status 11/2022 | File size 2 MB, Pages 32 Pages | Accessibility Accessible

Local Value Addition

LION - Local Investment Opportunities in Natural Resource Projects Internal link

LION models procurement expenditures of mining companies to provide local decision makers and suppliers with information on the huge procurement demand in the mining sector.

Local Value Addition
Abbau mit schweren Maschinen

Local Procurement Reporting Mechanism (LPRM) Internal link

Sustainable economic growth requires the diversification of the local economy, the establishment of supply chains and the targeted promotion of small and medium-sized enterprises. To strengthen local procurement in the long term, the Mining Local Procurement Reporting Mechanism (LPRM) was developed.

Responsible Supply Chains
ASM-Arbeiter in Sierra Leone

Artisanal and Small-Scale Mining Internal link

It is estimated that more than 100 million people are dependent on artisanal and small-scale mining. This makes ASM a major economic sector and an important source of income. At the same time, ASM is associated with various social and environmental risks.