Industrial policy along the mining value chain: a new taxonomy and case studies

The strategic importance of the mining sector has grown significantly amid the twin transitions toward digitalization and sustainability, highlighting the need for active, well-coordinated industrial policies. Yet, government institutions have often developed such policies in siloes, leading to a lack of systemic focus. As industrial policy becomes increasingly intertwined with global value chains (GVCs), with many economies targeting specific stages of mining value chains, there is a pressing need for frameworks that support more coherent industrial policy design. This paper proposes a novel taxonomy to understand and justify the design of coherent industrial policies in the mining sector. Drawing on case studies from Australia, South Africa, and Chile, we demonstrate the taxonomy’s analytical value and practical relevance. Our findings reveal substantial heterogeneity in the policy instruments deployed and in the composition of industrial policy packages across the three countries. We also observe varying degrees of internal coherence and differing focal points along the mining value chain, reflecting distinct national strategies and capacities.