The study begins by laying out a simple framework of the potential channels through which extractive activity affects local livelihoods and communities. It then applies this framework to a single extractive sector - large-scale gold mining - in three African countries: Ghana, Mali, and Tanzania. Results suggest that mining communities on average experience positive but limited welfare benefits. The study delineates three broad channels - market, fiscal, and environmental - through which local areas and regions may be affected, and informs public policy and corporate behavior on the welfare of communities situated close to extraction sites and the opportunities that mining can offer them