Chinese resource security policies and the restructuring of the Asia-Pacific iron ore market

This paper reviews the restructuring of the Asia-Pacific iron ore market in the wake of the rise of the Chinese steel industry. Prior to the 2000s, this market was characterised by two key features—high firm-level concentration on both the producer and consumer sides, and price determination through annually negotiated benchmark pricing between Australian mining and Japanese steel firms. However, owing to rapid growth in the Chinese steel industry and its emergence as the region's principal iron ore consumer, the Asia-Pacific iron ore market has been dramatically restructured during the last decade. This process has been accelerated since 2005 by Chinese governmental resource security policies, which have sought to address current record high iron ore prices through the use of foreign investment to sponsor new market entrants and the formation of an import cartel amongst the Chinese steel firms. This paper evaluates how these policies have driven restructuring in the Asia-Pacific iron ore market, through an analysis of the growth of China's steel industry, Chinese resource security policies aimed at lowering iron ore import costs, and their effects upon the regional market's ownership structure and price determination mechanisms. It argues that while Chinese investment and cartelisation policies have catalysed significant changes to the ownership and pricing structures of the Asia-Pacific iron ore market, they have carried only mixed benefits for the Chinese steel industry's resource security.     

Seaborne iron ore trade in the 1990s

This paper discusses how world steel production and seaborne iron ore trade have grown since 1950. The role of steel production forecasts in determining investment in the iron ore industry is examined. Forecasts for world steel production and the demand and supply of seaborne iron ore in the 1990s are presented. It is predicted that world steel production will increase by 64 million tons between 1991 and 2000. This increase will be located principally in the developing countries and China. The corresponding increase in seaborne iron ore trade will be approximately 55 million tons. Expansion projects will be located mainly in Australia and Brazil, but no greenfield iron ore projects will be undertaken. By the end of the decade, the demand for seaborne iron ore will be equal to its supply.     

Pig iron production structure in Japan

Japan is the world's largest steel producing country, and around half of its total input requirements for coking coal and iron ore are sourced from Australia. Moreover, around half of Australia's total coking coal and iron ore exports go to Japan each year. Therefore, changes in the demand for these two inputs are likely to have a significant impact on Australia. The purpose of this paper is to investigate the production structure of the blast furnaces in Japan and factors affecting the demand for iron making raw materials. The empirical study is based on the generalized Leontief cost function. Because of its functional flexibility, the model allows testing various hypotheses regarding pig iron production from blast furnaces. Based on the data from 1974 to 1991, the modelling results show that the Japanese ironmaking technology, when considered as an aggregate production process using fuel and iron ore as major inputs, could be characterized by fixed factor proportions, constant returns to scale and technical changes that can be explained by systematic changes in input mix. Moreover, while there is little variation in the iron ore usage rate, variations in fuel usage rate can be explained largely by changes in the make-up of iron ore charge and blast furnace production capacity over the sample period.     

Brazil's mineral development: Potential and problems

Although Brazil is well endowed with natural resources, some of these are unexploited due to poor communications and political instability. The authors review present government policy and the situation with regard to oil and gas, iron ore, manganese and steel and other minerals, and conclude that Brazil has a bright economic future.     

Indian mineral resources — a short review

Though India's iron ore and manganese exports are a major source of foreign exchange, the continent lacks sufficient reserves of many important minerals, or has only recently exploited known reserves on an adequate scale. This article reviews India's mineral resources and points out trends in exploration and production.     

Forecasting iron ore import and consumption of China using grey model optimized by particle swarm optimization algorithm

The iron and steel industry plays a fundamental role in a country's national economy, especially in developing countries. China is the largest iron ore consumption market in the world. However, because of limited domestic iron ore resources, a large proportion of iron ore is imported from other countries. Faced with the conflict between the iron ore supply shortage and the growing demand, it is necessary for the government to predict imports and total consumption. This paper develops a high-precision hybrid model based on grey prediction and rolling mechanism optimized by particle swarm optimization algorithm. We use the China Statistical Yearbook (1996–2011) as our database to test the efficiency and accuracy of the proposed method. According to the experimental results, the proposed new method clearly can improve the prediction accuracy of the original grey model. Future projections have also been done for iron ore imports and total consumption in China in the next five years.     

The material resources for the iron and steel industries

The future supplies of iron ore, coking coal and ferrous scrap are discussed. There is no likelihood of the resources of iron ore being exhausted until well into the twenty-first century. Coking coal, on the other hand, is in shorter supply but it is being eked out by blending with non-coking coal and by making blast furnaces more efficient. Briquettes made completely from non-coking coal will play a part in iron making in the future. To ensure greater flexibility in steel making, hydrocarbons are being considered as possible substitutes for coal. Scrap has always played an important part in steel making and the amount recycled is increasing every year. But more effort is needed, for example, to ensure that the steel in car scrap is fully utilised and that refuse is efficiently recycled. Steel making increasingly demands the scrap to have few impurities and to be in uniform sized pieces. A cryogenic method of preparing such scrap is described. A futuristic way of extracting iron, non-ferrous metals and other saleeable by-products from refuse, by using redundant blast furnaces, is also discussed.     

Competitiveness and prospects for the African mining industry

Since the 1960s the Kédia mines have been the main source of iron ore for Mauritania. In the 1970s SN1M, the Mauritanian state enterprise responsible for the mining of the country's iron ore, concerned about the eventual depletion of its reserves at Kédia, and at the urging of its European customers, undertook to develop new iron-ore deposits at the Guelbs. The deposits at the Guelbs, however, were low-grade magnetite ore as opposed to the high-grade hematite ore at Kedia, and were much more costly to mine and process. The cost of the Guelbs project and its failure to meet production targets have strained the resources of SNIM to a financial and technical breaking point. The paper suggests that one solution to SNIM's difficulty may be to mothball the Guelbs project and to develop instead other deposits in the vicinity of the Guelbs.     

Integrating Science into Management of Ecosystems in the Greater Blue Mountains

Effective management of large protected conservation areas is challenged by political, institutional and environmental complexity and inconsistency. Knowledge generation and its uptake into management are crucial to address these challenges. We reflect on practice at the interface between science and management of the Greater Blue Mountains World Heritage Area (GBMWHA), which covers approximately 1 million hectares west of Sydney, Australia. Multiple government agencies and other stakeholders are involved in its management, and decision-making is confounded by numerous plans of management and competing values and goals, reflecting the different objectives and responsibilities of stakeholders. To highlight the complexities of the decision-making process for this large area, we draw on the outcomes of a recent collaborative research project and focus on fire regimes and wild-dog control as examples of how existing knowledge is integrated into management. The collaborative research project achieved the objectives of collating and synthesizing biological data for the region; however, transfer of the project’s outcomes to management has proved problematic. Reasons attributed to this include lack of clearly defined management objectives to guide research directions and uptake, and scientific information not being made more understandable and accessible. A key role of a local bridging organisation (e.g., the Blue Mountains World Heritage Institute) in linking science and management is ensuring that research results with management significance can be effectively transmitted to agencies and that outcomes are explained for nonspecialists as well as more widely distributed. We conclude that improved links between science, policy, and management within an adaptive learning-by-doing framework for the GBMWHA would assist the usefulness and uptake of future research.     

Potential CO2 emission reduction for BF–BOF steelmaking based on optimised use of ferrous burden materials

Currently, the blast furnace (BF) to basic oxygen furnace (BOF) is the dominant steel production route in the steel industry. The direct CO₂ emission in this process system exceeds 1 t of CO₂/t of crude steel produced. Different ferrous burden materials, for instance iron ore and scrap, can be used in various proportions in this steelmaking route. This paper analyses how energy use, conversion costs, and CO₂ emissions can be influenced by the use of different ferrous burden materials when producing crude steel. An optimisation mixed integer linear programming (MILP) model has been applied for analysis. By the use of the optimisation model, it is possible to highlight some issues of special importance, such as best practices to increase production at low conversion cost, or best practices to increase production at low CO₂ emission. It is found out that more benefits will be gained when using the system-oriented analysis to the steelmaking process. Furthermore, a comprehensive view of the trade-offs between the objectives of Cost and CO₂ can provide useful information for decision makers to generate strategies under the future emission trading.     

The ‘new’ economics of iron and steel

The author commences his analysis of the iron and steel industry by examining the historical background of the industry, and discusses its importance for the world economy. He examines the implications for the world industry of the successful development of the steel industry in Japan, and traces the evolution of a commodity cartel in the iron ore market, analysing the price levels of the commodity in the ‘free’ and ‘controlled’ markets. Following a discussion of the role of energy and coking coal supplies in the industry, the author examines the evolution of this industry in the less developed countries, with particular reference to the role of technology in the industry's development. He concludes that there have been important structural changes in the world industry, embraced by the concept of ‘partial demise’.     

Wishful thinking and reality in the concept of vertical integration of developing countries in metal production

The concept of vertical integration plays an important role in the discussion on a New World Economic Order as well as in the Integrated Programme for Commodities. The idea is to relocate raw material processing industries and first stages of manufacturing from the advanced countries to the commodity exporting developing countries. As far as metal production is concerned – and this paper deals with iron and steel, aluminium, copper and tin – the conclusion is that vertical integration is in general far too simple a concept. Only project based analysis can reveal if development in this direction can be regarded as politically and economically feasible.     

Mitigation paths for Chinese iron and steel industry to tackle global climate change

Based on a recognition of the essence of climate change and the pressure on China to reduce its greenhouse gas (GHG) emissions, this paper interprets the important role that the Chinese iron and steel industry may play in managing emissions. Through an investigation of the key sources of GHG emissions in the Chinese iron and steel industry, a comparison of the current Chinese and international situations, and a survey of the technology and methods available for reducing GHG emissions, and their application in China, the authors analyze the major issues currently faced by the Chinese iron and steel industry, and propose the following four approaches through which the industry might reduce its GHG emissions: (1) encouragement of clean development mechanism (CDM) projects, mainly involving secondary energy reuse, to provide capital and technology for GHG reduction activities in China; (2) stimulation of the social responsibility-based voluntary carbon market (VCM) to increase the long-term benefits for the Chinese iron and steel industry from emission reductions; (3) undertaking of strict energy auditing to help enterprises establish appropriate emission reduction targets and formulate reasonable plans; (4) promotion of emission reduction-oriented investment within the industry to obtain profits from project operation, while at the same time gaining extra compensation for emission reductions. More specifically, the design of each of these approaches should take into consideration the related economic factors and incentive mechanisms.     

开放市场条件下四川省环保系统各级环境监测站的发展方向

加入WTO后四川省环保系统监测站如何克服自身缺陷，积极应对国内外监测机构的挑战，是未来几年内各监测站所共同面临的问题。本文回顾了我省监测站监测能力现状，分析了入世后各级环境监测站所面对的形势，并结合四川省实际情况提出了我省环保系统环境监测站在开放市场条件下的发展重点和发展方向。     

The Governance of sustainable development in Wales

A new institutional architecture is emerging in Wales to govern sustainable development. The National Assembly for Wales (hereafter referred to as the 'Welsh Assembly')1 has a statutory duty to promote sustainable development in the exercise of all its functions; its response has been to design a set of political and organizational arrangements to manage this policy area, and to prepare a Scheme that sets out how it proposes to discharge this duty. Devolved government in Wales has also been the catalyst for the emergence of collaborative relationships and partnerships between different sectors and interests. The Welsh Assembly and the Welsh Local Government Association have published a Compact jointly committing them to promote sustainable development; national non-governmental organizations such as Oxfam and the World Wide Fund for Nature have set up Welsh agencies; local government sustainable development coordinators have formed a national network; a national Sustainable Development Forum has been created; and the Welsh Assembly has taken the lead in establishing a European network of countries interested in sharing best practice on sustainable development. A new Wales-specific structure and system is materializing and the test now is how far this will be effective in delivering sustainable development policies and solutions at local and national levels. This paper examines the challenges in managing sustainable development, and the potential for success of this new governance system, drawing on recent research undertaken by the author on behalf of the Joseph Rowntree Foundation. The examination is set in the context of different theories of governance, and sustainable development is conceptualized as a 'wicked issue'—one that cannot be resolved by organizations and agencies acting autonomously, but rather needs concerted focus and action across all sectors.     

青龙县铁矿企业对生态环境的影响及防治对策

青龙县部分铁矿企业的无序开采给水土保持、生态环境带来了严重危害。落实科学发展观，以生态科学为指导，建设资源节约型、环境友好型的铁矿开采企业迫在眉睫。为此提出以下防治对策：加大执法力度，加强对铁矿企业的监管；编报水土保持方案，严格审批服务；因地制宜，采取水土保持措施；强化铁矿企业生态环境保护，推广尾矿综合利用。     

Regulation for environmental protection: The Nanticoke industrial complex,Ontario, Canada

This assessment of the environmental protection regulatory system for the $2.2 billion iron and steel plant, oil refinery, and thermal generating station composing the core of the greenfield Nanticoke industrial complex is based upon: the use of governmental and industrial research in project management; technology and institutional arrangements for environmental protection; evidence of environmental changes to date; analysis of government and industrial approval files; and interviews with government, industry, and interest group representatives. Planning, regulation, and management have been reasonably efficient and effective to the beginning of the operational stage for all three major industries as of spring 1980. Of major future concern, however, is management of the cumulative and synergistic impacts of the industries and associated development on air quality as well as the lands, waters, and sensitive ecosystems of the nearby Lake Erie coast. Continuous monitoring, more comprehensive research, and better overall coordination of government, industrial, and public interests are required if Nanticoke benefits are to be achieved without undue cost to pre-project resource users within and outside the Haldimand-Norfolk region.     

Long-term iron ore price modeling: Marginal costs vs. incentive price

The paper studies and applies the approaches to forecast long-term (LT) real prices of iron ore. This price is crucial for valuation of investments in Greenfield iron ore projects on the horizon of more than 5 years. The forecast is obtained by three different approaches which are usually used by investment bank analysts: marginal costs approach and 2 approaches based on calculation of incentive price. The paper concludes that there has been a structural shift on the iron ore market and LT iron ore prices will be higher by 20–30% than the average of industry forecasters suggest. This is related to the 2 key factors which were taken into account in this study—depletion of existing iron ore deposits and targeted return on investments for new projects. In addition, escalated industry costs inflation is claimed to be the factor which will bolster nominal iron ore prices at high levels in the long-term. Using a Monte-Carlo simulation approach, confidence interval for future iron ore price was estimated.     

Utilising of the oiled rolling mills scale in iron ore sintering process

Up to 5% of steel is lost with the scale at hot rolling operation. This waste contains 69-72% of iron in the form of oxides. However, its recycling is confronted with presence of up to 20% of oil and 10% of water. E.g. when the oiled scale is introduced as an additive to the iron ore sintering mixture, incomplete combustion of liberated oil at heating during sintering process creates problems for gas cleaning and may even lead to damage of the equipment. A possibility to improve combustion of the scale's oil at the sintering process by preparation of a mixture with peat was shown in the laboratory experiments. Industrial trials demonstrate possibility to increase the oil combustion degree at sintering 2.7 times as much. Consumption of the oiled scale was increased from zero to 12.8 kg (in a form of scale-peat blend) per ton of sinter, which allows for closing the loop of this waste at the integrated steelmaking factory.     

Indicators for change: Taking a lead

The authors argue that sustainable development is a political concept arising from interactions between socio-economic and physical systems. As such, political values are implicit in many qualitative aspects of sustainability and its communication through indicators. In Great Britain, local government has played the lead role in Local Agenda 21, involving interest groups and community organisations in varying degrees, through public participation. However, the need for local solutions to sustainability problems also exists in Northern Ireland, where governmental bodies are unwilling or unable to accept responsibility for Local Agenda 21. In the Northern Ireland context, the evolving role of Non-Governmental Organisations (NGOs) and the community sector in the indicators issue has been markedly different to that in the rest of the UK. There are potential problems concerning political values and mandates when the NGO/community sector assumes the lead in such tasks. The authors argue that, while criticisms of explicit and/or implied political values can be well grounded, addressing these must go beyond questions of objectivity in collection and presentation of indicators and projects must be understood by developing feedback and review mechanisms. The authors review the Northern Ireland sustainability indicators project and evaluate the feedback procedures in place. Lessons learnt from this exercise are explored with reference to (i) the current organisation of Local Agenda 21 within local government in Northern Ireland and (ii) national and international parallels.