Mining regions can play an essential role in meeting climate goals and in accelerating the recovery from the COVID-19 crisis. Global environmental agendas have recognised the relevance of the mining sector to accelerate the transition to a low-carbon economy. Particularly, European Union (EU) priorities, driven by the Green Deal and the new Industrial Strategy, have made the environmental sustainability of mining extraction and transformation a priority to achieve the EU’s climate neutrality goal by 2050. While mining is a global industry, its geographic concentration is a critical factor in the design of policies for sustainable economic development. Promoting environmentally sustainable regional mining value chains can provide new business opportunities for local firms and high-value-added jobs for local communities, while advancing in meeting the climate goals.

Andalusia is a growing player in the European mining sector, with the potential to become a frontrunner in environmentally sustainable mining and to reduce its income and employment gap with the rest of Spain. Andalusia is the southernmost region of Spain, with the largest population and second-largest land area in the country. It is the lead mining region in Spain (38.6% of mining production), the second-largest copper producer in Europe and a leader in marble and cement production. The region’s location in the Iberian Pyrite Belt (IPB), encompassing Seville and Huelva through to Southern Portugal, represents a global asset when it comes to metallic minerals. Within the region, Huelva is the main mining (TL3) region, carrying out 70% of the region’s metallic mining.

Andalusia, the southernmost region of Spain, has the largest population and second-largest land area in the country. It is the lead mining region in Spain in terms of production (38.6% of mining production) and employment (28.4%). Andalusia is also a growing player in the European mining sector, distinguishing itself as the second European producer of copper and leader in the production of marble and gypsum. The region’s location in the Iberian Pyrite Belt (IPB), encompassing Seville and Huelva through to Southern Portugal, represents a global asset when it comes to metallic minerals. Within the region, Huelva is the main mining (TL3) region, producing 70% of the region’s metallic mining The OECD regional database collects and publishes regional data at two different geographical levels, namely large regions (Territorial Level 2, TL2) and small regions (Territorial Level 3, TL3). Both levels encompass entire national territories. With some exceptions, TL2 regions represent the first administrative tier of subnational government (i.e. states in the United States or régions in France). TL3 regions are smaller territorial units that make up each TL2 region. Andalusia is composed of eight TL3 regions: Almeria, Cadiz, Cordoba, Granada, Huelva, Jaen, Malaga and Seville.

The chapter provides an overview of the main trends of the region, in the economic, social and environmental fields, setting the basis for policy recommendations in the following chapters. The chapter first describes the mining sector in the Spanish and Andalusian context. It then examines the demographic patterns in the region followed by its main economic trends. The final section of the chapter examines the main enabling factors for regional development and the quality of life of its citizens.

This chapter examines the strengths and bottlenecks of the mining sector and identifies strategies and policy responses to help unlock new growth opportunities in mining activities and the development of the region. The chapter begins with an overview of Andalusia’s mining business environment. It then analyses the strengths that the region can mobilise to meet higher levels of income and well-being through mining development. Finally, it examines strategies to overcome a number of challenges to boost competitiveness and create higher-value-added jobs.

The chapter starts with an overview of the relevant international and national policy framework for mining development in Andalusia, emphasising the need for a national mining strategy to support a sound mining value chain in Spain and the transition to a low-carbon economy. Then, it analyses Andalusia’s mining policy and provides recommendations to make the updated regional mining strategy a powerful tool to help Andalusia become a frontrunner in sustainable raw material technologies and practices to support the European climate neutrality goal and increase local well-being.