US strategic minerals: Policy options

The USA is becoming increasingly dependent on key strategic metals (such as chrome, cobalt, manganese and platinum-group metals) from politically unstable regions of the world. This dependence is the result of an inconsistent and fragmented US non-fuel minerals policy. Neglect of the US minerals industry has led to a decline in US mineral production and processing capabilities. Options for a comprehensive US non-fuel minerals policy include increased domestic production; increased substitution and recycling; a domestic stockpiling programme; and diversification of, and ensured access to, foreign sources of supply. These four options are examined and recommendations are made for increased mineral surveys of public lands, a regulatory review, domestic production of strategic minerals, tax incentives, conservation, stockpiling, and a foreign policy that will ensure security of supply.     

Harnessing the bonanza: economic liberalization and capacity building in the mineral sector

Over the past decade many developing and transition economies have liberalized their investment regimes for mining and privatized formerly state-owned mineral assets. In response, these economies have witnessed increased foreign investment in exploration and development, growth in the number and diversity of mineral projects, and the opening up of new channels for harnessing increased economic and social benefits from development in the minerals sector. The restructuring of fiscal and regulatory regimes to encourage foreign investment, and the associated influx of mining capital, technology and skills, is transforming traditional relationships between mining firms, local communities and the government. This transformation necessitates a re-evaluation of the most effective policy approaches to capture increased economic and social benefits from mineral production. This article considers effective mechanisms for improving the capacity of developing and transition countries to maximize the economic and social benefits of mineral production. Common challenges associated with minerals economies are reviewed. Consideration is given to the opportunities for harnessing foreign direct investment and the possibilities for creating new partnerships between local communities, industry, government, and multilateral development agencies through social investment projects. The article concludes with a series of recommendations for the design and implementation of policy approaches towards harnessing mineral production for economic and social benefit following the liberalization of investment regimes for mining.     

Determinants of foreign direct investment in the mining sector in Asia: A comparison between China and India

The aim of this paper is to assess the conditions that influence foreign direct investment in the mineral industries of China and India. The paper first surveys literature on the determinants of foreign direct investment to identify key conditions, under which host countries attract mining FDI. It then builds an evaluative framework which allows for comparative analysis. The paper then comparatively evaluates the performance of foreign investment regimes that govern mineral industries in China and India. Its findings show that the overall conditions for foreign mining investment in China and India are not favourable and that substantial policy, regulatory and other changes in both countries need to be made if more investment is to flow.     

Converging worlds

Summary Converging Worlds delineates how environmental events in the developing world can lead to economic and political instability—two major liabilities for US national security and economic interests abroad. Increasingly, US foreign policy analysis will have to include a close scrutiny of environmental events and a country’s natural resource profile to adequately anticipate global hot spots. A closer look at environmental events in the global context may also provide a sense of new options for foreign policy and private sector initiatives. Senior Liaison Officer United Nations Environment Programme Washington Representative and Senior Liaison Officer for the United Nations Environment Programme. Formerly National Director for Public Affairs of the US Environmental Protection Agency; Senior Coordinator for the American Petroleum Institute; and founder and President of the Bolton Institute. Major initiattives include Global Connections/Environment Conference (1980); City Care Conference (1979); and UN Habitat community assemblies (1975).     

Ghana: revival of the mineral sector

After almost two decades of decline, Ghana's mineral sector has rebounded significantly and is currently the main foreign exchange earner. Gold mining is the principal activity within the sector and accounted for 41 percent of total export earnings in 1996. This paper presents an overview of Ghana's mineral industry and covers mineral resources, production and reserves; mining investments; the role of mining in the economy; and the structure of the industry. An overview of the national mineral policy is also presented to depict the current regulatory and fiscal environment in which the industry operates. The spectacular reversal in mineral sector performance can be attributed to the adoption of World Bank recommendations in a new national mineral policy, the 1986 Minerals and Mining Law, aimed at revitalizing the sector.     

Global competition for strategic mineral supplies

The USA's dependence on imported sources of strategic minerals has grown substantially since the second world war, while its ability to protect the sealanes critical to foreign supplies has deteriorated. Domestic production has been severely hampered by a lack of access to mining on public lands, and by excessive environmental regulations. No major purchases have been made for the strategic stockpile in 20 years. Concern has been growing in Western Europe and in Japan about secure supplies of strategic minerals. Being even more dependent on foreign sources of supply than the USA, some of these countries have recently initiated their own strategic stockpilling programmes. The USSR, long an important exporter of metals, appears to have changed its mineral trade policy, and has sharply reduced exports while entering the market as an importer of a number of key metals. These developments foreshadow growing competition for world supplies of strategic minerals.     

Risks and opportunities for foreign investment in the mineral sectors of the Central Asian Republics: Kazakstan,Kyrgyzstan, Tajikistan and Uzbekistan

With the dissolution of the former Soviet Union in 1991, the nations of Central Asia gained independence and began the transition to market driven economies. Both the political and economic transformations of the Central Asian Republics (CARs) (Kazakstan, Kyrgyzstan, Tajikistan and Uzbekistan) have been difficult primarily because of a holdover of various centrally planned `command and control' approaches to national development. The extensive mapping and exploration of the CARs during the Soviet era (approximately 1921–1991) led to the discovery of several hundreds of mineral deposits that were subsequently evaluated, and it is this `pool' of known, but undeveloped, deposits which is of major interest to foreign and domestic companies. However, foreign investment in the mineral sectors of the CARs is at best quite modest and there are very few positive signs that foreign investment will increase dramatically in the near term. The major risks that the mining industry faces as it works in the CARs arise primarily from the fact that the nations are transitional economies which lack both a comprehensive legal framework and experience in dealing with foreign mining corporations and their practices. The major risks are political, economic, financial, infrastructure, contractual, environmental, social and cultural and workforce related. If all individual risk factors are weighted equally, the relative ranking of the countries (from least risk to most risk for mineral development) would be Kyrgyzstan, Kazakstan, Uzbekistan and Tajikistan respectively. However, such a classification scheme does not effectively weight the importance of mineral potential. If the risk criteria are weighted with respect to geologic potential, the ranking of the countries would be (from least risk to most risk) Kazakstan, Uzbekistan, Kyrgyzstan and Tajikistan, respectively.     

Economic Impact of Sea-bed Mineral Resources Development in Light of the Convention on the Law of the Sea

In 1983, the Preparatory Commission for the International Sea-Bed Authority and the International Tribunal for the Law of the Sea appointed its officers, decided upon its structure and adopted a programme of work. In July of the previous year, the US Government announced that it would not sign the Convention on the Law of the Sea and thus would not participate in the deliberations of the Preparatory Commission. As part of the Texts adopted, Resolution II establishes a scheme for the Protection of Pioneer investment pending the entry into force of the Convention. This scheme is predicated on the philosphy embodied in the Convention in respect of the establishment of a resource policy for the development of sea-bed mineral resources and takes into account its basic component, the limitation of production. This article investigates the impact of future sea-bed mineral development on the affected economies of developing land-based producer states. It also reviews the mechanisms to be utilized to mitigate against possible adverse impacts and attempts to assess the extent to which these resources may be exploited in the medium term.     

区域旅游发展动力机制模式研究——以安徽省会经济圈为例

旅游发展动力机制研究一直是旅游学研究的热点,特别是关于区域旅游发展动力机制模式的研究更是旅游界以及各级政府、旅游规划部门等研究和关注的重点.通过对国内外旅游发展动力机制研究的综述以及旅游发展动力机制模式的评析总结的基础上提出了资源驱动型、经济驱动型、项目带动型、市场推动型、政策主动型、区域联动型等六类区域旅游发展动力机制模式,并以安徽省会经济圈为例进行了案例研究,提出了发展建议和对策.     

National minerals policies and stakeholder participation for broad-based development in the southern African development community (SADC)

This paper explains how the well-accepted concept of improved stakeholder participation during mineral policy development leads to a national mineral policy that accommodates the diverging views and interests that allows wide acceptance of decisions, enhancing the success of implementation and, ultimately, national benefits. This process is based on lessons learnt during the South African experience and has been successfully applied in the development of the Namibian and Malawian national minerals policies. An effective policy in the SADC will engineer the delicate balance between poverty reduction and an internationally competitive minerals sector. This balance enhances the possibility of long-term economic growth and development in the SADC region. The overriding advantage of this strategy is that it generates ‘home-grown’ policy instruments and implementation of mineral law with which stakeholders can identify. This process presents a new challenge to traditional policy formulation strategies in emerging economies and the bottom-up approach, linked to wide political support, allows the potential realisation of national objectives.     

Dynamics of global oil prices,exchange rate and precious metal prices in India

This study examines cointegration and Granger causality among global oil prices, precious metal (Gold, Platinum and Silver) prices and Indian Rupee–US Dollar exchange rate using daily data spanning from 2nd January 2009 to 30th December 2011. ARDL bounds tests indicate that the series are cointegrated. Toda–Yamamoto version of Granger causality has been employed to establish the causation amongst the variables. The study also examines generalized error variance decomposition of variables due to various shocks in the system. Such information provides insight into the transmission links between the global oil market and the Indian precious metals and foreign exchange market. These have the potential for significant impact in further research, portfolio management and central bank policy design.     

The role of the CMEA's foreign trade monopolies in mineral markets

The business rationality of the CMEA mineral traders is bound by several characteristics of mineral production under central planning and by the mechanics of foreign trade monopoly. These characteristics include aspects such as: priority of national economic goals over trading strategies of the Foreign Trade Organisations (FTOs) in Eastern Europe; balance-of-payment problems; the organizational complexities and the weakness of the incentive mechanism, as well as the lack of an appropriate performance criterion. It is suggested that the 30 mineral trading FTOs in the CMEA tend to perform in a manner comparable to marketing departments of the Western mineral industries but are at a clear disadvantage when compared with ‘stand alone’ Western intermediaries making profits through risk taking and abhoring bureaucracy and rigidity in management.     

Mineral development prospects of the Indochina area

Reform is under way in several nations within the Indochina area to stimulate economic growth and foreign investment. Though once forbidden, participation by foreign companies in mining exploration and development activities in Myanmar, Kampuchea, Laos, Thailand and Vietnam is now being solicited by the respective governments. This paper presents a preliminary evaluation of mineral and energy resources in the region and outlines possible development scenarios based on economic policies, financial and infrastructural constraints and industry interest. The investment climates for resource-related projects are assessed qualitatively by country. Clearly, the long-term development potential of mineral and energy resources in the Indochina area is large, and the potential gains outweigh any of today's problems.     

Privatizing the minerals sector

The end of the Cold War presents new challenges for the dynamics associated with mineral resources development. Broader approaches are needed to help mineral rich developing countries develop their minerals sector. These countries need to embark upon programmes of policy reform and privatization in order to make their mineral resources industries more efficient and responsive to free market forces (such as supply and demand and price), and to turn mineral sector decision making over to the private sector. This article examines the use of policy reform and privatization strategies to increase mineral resource production in developing countries, thereby contributing to both developing country economic growth and developed country access to mineral supplies .     

Mercury: The good, the bad, and the export ban

We analyze the bipartisan call to ban US exports of commodity mercury. An export ban can generate positive environmental benefits by increasing the scarcity of mercury in developing economies where significant toxic releases occur. We show, however, that a direct mercury purchase and retirement policy can achieve the same foreign environmental goals without adverse impacts on domestic environmental quality. We present qualitative and quantitative evidence that highlight the potential inefficiencies of a mercury export ban as a method of achieving environmental objectives.     

World phosphate supply

The Bureau of Mines investigated the resources, costs, capacities, market relationships, and short- and long-run supply of phosphate rock and phosphoric acid. The 206 mines and deposits evaluated in 30 market economy countries (MECs) contain an estimated 35.1 billion tonnes of recoverable phosphate rock (demonstrated resource level). US resources are sufficient to satisfy both the domestic market and an export market for phosphate products well beyond 2000. Resource depletion at current producers, however, means new property development (with higher costs) will be required if US production levels are to be maintained. Existing worldwide capacity can satisfy expected demand through the early 1990s. Expansion at existing mines or low demand growth could mean no new property development is required before the late 1990s. Worldwide, almost $8 billion could be required for the development of new phosphate rock properties between now and 2000, given 3% annual growth in demand. Though profit may not be the principal motivation for development of government-owned operations, most properties that could develop in the 1990s would require price increases of 20–50% to break even. To earn a 15% rate of return on investment, prices must rise to nearly double the $23–271 tonne US price level of 1988. Current US phosphate rock and phosphoric acid producers appear to be competitive (on a variable cost basis) with many other suppliers in major markets. New US properties will have higher variable costs than current producers; however, they are competitive with most projected new foreign development. The US phosphoric acid industry will most likely face increased competition as more of the foreign phosphate rock producers develop the capacity to process rock into phosphoric acid and other fertilizer products.     

Framing Dynamics and Political Gridlock: The Curious Case of Hydraulic Fracturing in New York

‘Fracking’ was on New York's agenda since 2008, yet no decision was made about it until late 2014. The gridlock is an intriguing puzzle given that the Marcellus shale is considered a ‘world class’ energy supply, and development has been aggressive in other US states. While policy scholars typically conceptualize gridlock as policy stability, this paper examines it as a dynamic process by which competing discourse coalitions engage in interactive framing processes that (re)structure the discussion. This suggests that the interaction between contending coalitions influences gridlock. Yet, we lack knowledge about interactive framing between competing coalitions during policy controversies. Our main finding is that a central mechanism of gridlock is the production of conflict through interactive framing dynamics that deny a shared discursive space capable of ushering in a consensus, or reasoned agreement. In New York, this contest evolved from a policy consensus about the economic benefits of fracking to policy negotiation that incorporated environmental threats, and to prolonged policy controversy in which competing discourse coalitions contested notions of fracking in relation to energy production, environmental protection, public health, economic development, and governance. While a ban has been instituted, the failure to bridge discourse coalitions suggests that controversy will persist unless meaning disputes are resolved.     

柳江国家地质公园的科学价值与地质环境保护

秦皇岛柳江国家地质公园以地质遗迹资源丰富、地貌景观多样而闻名,具有重要的科学研究价值和旅游价值。然而地方政府为满足短期经济发展的需要,过度开发园区内的煤炭、水泥灰岩等矿产资源,致使一些珍贵的地质遗迹被破坏。为此,从政策、法规以及宣传教育层面对地质遗迹的保护提出一些建议。     

Binational management of hazardous waste: The maquiladora industry at the US-Mexico border

Foreign-owned industry in the form of assembly plants, termed maquiladora, has become very important in Mexico to the extent that it represents the second largest source of foreign exchange and is a valuable source for employment and regional development. The economic prosperity gained from the rapid growth of the maquiladora industry has been accompanied by increased environmental and human health risks associated with generation of hazardous waste. Diversification of industry has resulted in the predomination of those sectors that likely use hazardous substances. The Mexicali-Calexico border region was selected to demonstrate the potential for environmental and health risks associated with the generation of hazardous waste. Estimates for the generation of hazardous waste were obtained from 34 maquiladora plants in Mexicali, represented by the electronic and electrical equipment and parts, mechanical and transportation equipment, and toys and sporting equipment sectors. Repeated detection of volatile organic compounds in the New River at the US-Mexico border suggests that hazardous waste from the printed circuit board industry in Mexicali is not being disposed of in a proper manner. Potential adverse health effects, such as carcinogenic and mutagenic responses associated with the detected volatiles, are discussed. US and Mexico national legislation and the Binational Environmental Agreement were examined for their adequacy to ensure proper management of hazardous waste generated by the maquiladora industry. Environmental policy options are presented that focus on: (1) increased environmental accountability of US parent companies for their maquiladora assembly plants in Mexico; and (2) more integration between US Customs and border states with the US Environmental Protection Agency to improve the binational management of hazardous waste generated by the maquiladora industry.     

Japan's develop-for-import policy

Much of the world's remaining mineral resources lie within the underdeveloped nations of the Third World. The current crisis of confidence characterized in international investment and trade in extractive resources has become detrimental to both the resource-rich developing countries and the resource-hungry industrialized countries. Japan is one nation that has developed a strategy to foster mutual trust and to restore confidence in the international extractive industries. This paper examines Japan's develop-for-import policy, ‘kaihatsu yunso’, and its design, implementation and effects on securing foreign resources supplies.