The new economic order and world mineral production and trade

World mineral production is dominated by the developed countries — the developing countries dominate production of only tin, cobalt, bauxite, and petroleum. This production pattern is largely the result of historical, political, and economic factors, and is not likely to change radically in the next decade. Apart from petroleum, there seems to be little opportunity for the formation of mineral-producer cartels, although there is considerable scope for constructive producer-consumer agreements. Given the pattern of world mineral production and trade, the developed countries would on the whole benefit more than the developing countries from price increases. The most acute present need is for new means of financing exploration and development of mineral deposits in the developing countries, and for means of redressing the worst imbalances between rich and poor nations outside of the commodity arena.     

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.     

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.     

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.     

The investment climate for gold mining

This analysis compares the gold mining industry investment climate in the USA to the investment climate in Australia. These two major gold producing nation's industries share many similarities; in both the USA and Australia, there is evidence of a maturing gold mining industry. Each country has experienced a dramatic increase in gold production and, more recently, greater mining of refractory ore and development of more underground operations. In the 1980s both nations experienced a pronounced rationalization trend that consolidated some gold producing operations and eliminated others. Each country commands a disproportionately large share of exploration expenditures. Land access, a major concern in the USA, has also become a critical issue in Australia as well. For all their similarities, however, the two countries have differences that are significant enough to influence mining company investment decisions. This paper explores those differences and how they may affect the future course of these nations' gold mining industries. Both effective government policy making and corporate strategic planning will occupy a major role in the future course of the two nations' gold mining industries .     

External Debt and Prospects for Minerals-exporting Developing Countries

This article examines the extent to which selected non-fuel minerals-exporting developing countries can rely on their traditional source of hard-currency earnings to promote future economic growth and to facilitate payments for interest and amortization of accumulated debt. The countries (and minerals) under consideration are: Chile (copper), Bolivia (tin) and Jamaica (bauxite). Incorporated into the study are sets of alternative assumptions regarding global demand for these minerals to the end of the century, market shares, mineral prices, external debt levels and interest rates. More specifically, the study examines the likely ranges of future export revenues of these countries from these minerals in the years 1990 and 2000, and the role that these future export revenues may play in servicing external debt.     

Iron and aluminium based adsorption strategies for removing arsenic from water

Arsenic is a commonly occurring toxic metal in natural systems and is the root cause of many diseases and disorders. Occurrence of arsenic contaminated water is reported from several countries all over the world. A great deal of research over recent decades has been motivated by the requirement to lower the concentration of arsenic in drinking water and the need to develop low cost techniques which can be widely applied for arsenic removal from contaminated water. This review briefly presents iron and aluminium based adsorbents for arsenic removal. Studies carried out on oxidation of arsenic(III) to arsenic(V) employing various oxidising agents to facilitate arsenic removal are briefly mentioned. Effects of competing ions, As:Fe ratios, arsenic(V) vs. arsenic(III) removal using ferrihydrite as the adsorbent have been discussed. Recent efforts made for investigating arsenic adsorption on iron hydroxides/oxyhydroxides/oxides such as granular ferric hydroxide, goethite, akaganeite, magnetite and haematite have been reviewed. The adsorption behaviours of activated alumina, gibbsite, bauxite, activated bauxite, layered double hydroxides are discussed. Point-of-use adsorptive remediation methods indicate that Sono Arsenic filter and Kanchan™ Arsenic filter are in operation at various locations of Bangladesh and Nepal. The relative merits and demerits of such filters have been discussed. Evaluation of kits used for at-site arsenic estimation by various researchers also forms a part of this review.     

New mercantilism: A perspective on how politics is shaping world metal supply

The major countries consuming metals tended historically to be also the major countries producing them. It was in their interest to promote mine development to provide low cost raw materials. Over the past fifty years, the share of global production accounted for by consuming countries has declined and producers and consumers of metals have been slowly moving into separate camps having distinct and differing interests. As a consequence of this, governments of producing countries have become more focused on how to maximise the benefit of metal extraction to their economies rather than on how to supply cheap raw materials; a tendency which has found expression in resource nationalism. Governments of consuming countries have in response become increasingly concerned about the implications of this tendency to their economic development and some countries, most notably China, have adopted robust policies to secure their supplies. Through their actions to influence capital flows within the mining industry and to force metals trade into channels which better serve their national interests (a process characterised here as ‘new mercantilism’), metal producing and metal consuming countries are reshaping global supply.     

Exploration's Role in Iron and Aluminum Supply Since the Second World War

This paper analyses the role of exploration in the worldwide supply of iron and aluminum by (1) reviewing changes in the level and geographic distribution of exploration since 1945, (2) studying important discoveries, and (3) comparing exploration's role in iron and aluminum supply with its role in the supply of other metals. It finds that even though exploration and discovery of new deposits account for part of the tremendous postwar expansion in the level and geographic distribution of iron ore and bauxite production, most of the areas that became major producers were known to contain significant mineralization long before detailed evaluation, development, and mining occurred. These areas needed increased consumer demand, lower ocean freight costs, or improved processing techniques to become economically attractive. Iron and aluminum are easier-to-find yet harder-to-process, and compared with other metals, discovering a better deposit will not reduce overall costs to the same degree as other cost-reducing forms of investment.     

ASPECTS OF PETROLEUM TRANSPORT IN DEVELOPING COUNTRIES

Dramatic changes in the institutional structure of the international oil industry in recent years have created new responsibilities and opportunities for developing countries in petroleum transport. The article discusses the prospects for changes in the ownership/control pattern of seaborne oil movements and the need for both oil producing and oil importing developing countries to pursue national plans to acquire shipping tonnage and expertise, without being deterred by the present depressed conditions of the world shipping industry. Drawing from the experience in India, it deals with some features and problems of petroleum transport by sea, pipeline, rail and road. It stresses the importance of co-operation among developing countries through common operation of deep-water terminals and large size tankers to optimise transport costs.     

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.     

Revegetation Strategies for Bauxite Refinery Residue: A Case Study of Alcan Gove in Northern Territory, Australia

Alumina extraction from bauxite ore with strong alkali produces waste bauxite refinery residue consisting of residue sand and red mud. The amount and composition of refinery residue depend on the purity of the bauxite ore and extraction conditions, and differs between refineries. The refinery residue is usually stored in engineered disposal areas that eventually have to be revegetated. This is challenging because of the alkaline and sodic nature of the residue. At Alcan Gove’s bauxite refinery in Gove, Northern Territory, Australia, research into revegetation of bauxite residue has been conducted since the mid-1970s. In this review, we discuss approaches taken by Alcan Gove to achieve revegetation outcomes (soil capping of refinery residue) on wet-slurry disposal areas. Problems encountered in the past include poor drainage and water logging during the wet season, and salt scalding and capillary rise during the dry season. The amount of available water in the soil capping is the most important determinant of vegetation survival in the seasonally dry climate. Vegetation cover was found to prevent deterioration of the soil cover by minimising capillary rise of alkalinity from the refinery residue. The sodicity and alkalinity of the residue in old impoundments has diminished slightly over the 25 years since it was deposited. However, development of a blocky structure in red mud, presumably due to desiccation, allows root penetration, thereby supplying additional water to salt and alkali-tolerant plant species. This has led to the establishment of an ecosystem that approaches a native woodland.     

Surface iron ore mining in eastern India and local level sustainability

Mining often brings certain irreversible changes to the surrounding environment. Different types of natural resources mostly surround the mines. Degradation of natural resources around the active mining zone may adversely affect the local economy. After cessation of mining operations local people may no longer be able to sustain their livelihood from the surrounding degraded natural resource; there are chances that the economy of the region will be shattered. The paper deals with this problem of local level sustainability of iron ore mining in eastern India. This problem is examined in the light of different theories of sustainability and national policies. By using household survey data, sustainability of iron ore mining in this region is tested. Substitution of depleting natural capital with other forms of capital can promote long-term sustainability of the local economy. This necessitates certain policy interventions to induce the mine operators to reinvest some part of their resource rent in the natural capital of the region.     

Raw material problems of the Soviet aluminium industry

The Soviet Union possesses a huge hydro-electric power potential in southern Siberia, providing attractive sites for aluminium reduction capacity, but is poorly supplied with high-grade domestic bauxite resources. An early enthusiasm for the use of non-bauxitic domestic materials, notably nepheline and alunite, has waned in recent years, and Soviet aluminium planners have shown an increasing preference for imports of bauxite and alumina. By 1975 as much as 40% of Soviet aluminium production was derived from imported raw materials, indicating an unusual willingness to become dependent on foreign ore sources for this strategic metal. Future intentions are demonstrated by the abandonment of earlier plans for an expansion of non-bauxite based production, the construction of a large alumina plant on the Black Sea coast and proposals for a second seaboard plant on the Pacific coast, both using imported bauxite.     

The role of the Australian minerals industry in world mineral supplies

Australia is one of the world's main producers and exporters of both fuel and non-fuel minerals. Among the main commodities produced for export are bauxite/alumina, iron ore, and nickel—Australia is also an increasingly important source of supply of black coal, especially for Japan, and is a significant producer and exporter of a number of base metals. Resources are adequate to support a substantial expansion of both non-oil fuels and other minerals. The potential for growth, both in terms of specific commodities and in the overall role of Australia in the world mineral industry, will depend to a very large extent on the cost competitiveness of Australian mining and on continuing inflow of capital.     

Market structure and bargaining power: A study of three international mineral markets

This paper considers how differences in the structure and arrangements between the international markets for bauxite, iron ore and copper affect the bargaining strength and division of benefits between buyers and sellers. After describing the characteristic features of each market, and noting the absence of appropriate economic theory to disentangle the issue at hand, an attempt is made to clarify the problem by considering the difference between the markets in terms of five factors - degree of concentration, ability of the parties to inflict losses on each other, varying shares of the raw material in final product prices, structure of the market in which the final products are sold, and the process of trade negotiation.     

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.     

Iron Ore Industry Emissions as a Potential Ecological Risk Factor for Tropical Coastal Vegetation

In the coastal zone of the Espírito Santo state, Brazil, fragments of restinga, which form a natural ecosystem, share their space with an increasing number of iron ore industries. The iron ore dust and SO(2) originating from the industry processing activities can interfere with the vegetation of the adjacent ecosystems at various levels. This study was undertaken in order to evaluate the effects of industry emissions on representative members of the restinga flora, by measuring physiological and phenological parameters. Foliar samples of Ipomoea pes caprae, Canavalia rosea, Sophora tomentosa, and Schinus terebinthifolius were collected at three increasing distances from an ore industry (1.0, 5.0, and 15.0 km), and were assessed for their dust deposition, chlorophyll, and Fe content. Phenological monitoring was focused on the formation of shoots, flowers, and fruits and was also performed throughout the course of a year. The results showed that the edaphic characteristics and the mineral constitutions of the plants were affected by industry emissions. In addition, the chlorophyll content of the four species increased with proximity to the industry. Phenological data revealed that the reproductive effort, as measured by fruit production, was affected by emissions and S. tomentosa was the most affected species. The use of an integrative approach that combines biochemical and ecological data indicates that the restinga flora is under stress due to industry emissions, which on a long-term basis may put the ecosystem at risk.     

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’.