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.     

The potential supply of energy minerals in Australia

Australia is a sparsely populated country that is well endowed with energy resources, and the size of coal, natural gas, and uranium reserves relative to domestic demand has given Australia the opportunity to become a major exporter of these fuels. This paper assesses Australian supply potential of these three fuels, together with crude oil, through to the early years of the next century. With the exception of crude oil, supply potential appears adequate to meet projected domestic and export demand. However, crude oil supplies are unlikely to meet domestic requirements, and to the shortfall may be considerable.     

The significance of futures trading in minerals and oil

Futures trading has been introduced for aluminium and oil in recent years and the range of contracts available on various minerals and oil products continues to widen. Concern has been expressed by producers of a number of minerals, including nickel and platinum, that the introduction of futures trading may introduce a speculative element to price determination that will create inappropriate or excessively volatile prices. It is the purpose of this article to analyse the role of futures trading in relation to trade in underlying commodities in general and especially for trade in minerals and oil. Evidence from oil and platinum markets, in particular, is adduced and examined in the light of earlier evidence of the influence of futures trading on underlying commodities. The contribution of futures trading is examined in detail and conclusions are reached on the significance of futures trading for minerals and oil.     

The future markets for minerals: Some causes of uncertainty

This paper argues that the major uncertainties surrounding the future markets for minerals derive from three serious lacunae in mineral intelligence – first, the altered investment climate for minerals, the undetermined magnitude and geography of its effects, and its prospective impact upon supply; second, the paucity of macroeconomic, medium-term forecasts for the OECD economies, a deficiency that has seriously undermined the possibility of generating useful resource demand forecasts; and third, the indeterminate speed at which changes in the geography of mineral processing activities and metal manufacture are likely to occur.     

World supply of non fuel minerals: The geological constraints

The feasibility of trebling production of essential non fuel minerals by AD 2000 is considered in relation to a rise in world population to 6 billion (10⁹). Adequate supplies of common bulk ‘minerals’ like sand and gravel, brick clays and saline deposits, are assured, but mining will place additional strains on local environments. Ores of the metals that can be regarded as available in sufficient quantities include iron, aluminium, chromium, titanium, copper and nickel, and possibly also lead and zinc. In spite of the geological constraints imposed by complexity of geometry and genesis, reasoned resource estimates are possible for these, but they may not be feasible for rarer necessary minerals, such as those of the precious metals, mercury, niobium and flourine. The extraction of even the commonest of the non fuel minerals is conditioned by the availability of abundant energy at economic prices – this should be regarded as the critical factor.     

The necessity to elaborate minerals policies exemplified by Romania

Mineral resources represent an integral component within a country’s economy. Despite the fact that the need for raw materials undergoes continuous growth–especially in countries which experience industrial upswing–proper measures to secure the access to domestic mineral resources in the long term have only been applied marginally in a large number of states. This lack of future-oriented legal frameworks–referred to as ‘Minerals Policies’–might lead to a diversity of sectoral problems (eg. dependency on certain raw materials imports). Based on data analysis and subsequent demand forecasting comprehensive national Minerals Policies can be derived in order to anticipate emerging issues and to achieve optimum sustainable management of domestic geological resources. The necessity of such concepts is illustrated by the example of Romania focusing on non-energetic mineral resources.     

The illegal trading of high unit value minerals in developing countries

Attracted by the high unit value and low barriers to entry in terms of capital requirements, technology, infrastructure, minimum reserves and implementation time, the artisanal and small-scale mining of high unit value minerals, such as gemstones, diamonds and gold, has grown to significant proportions in developing countries. This is manifested by the value of output and large numbers of miners engaged in this activity. Despite the expansion of the subsector, its national economic role in many developing countries has largely been disappointing, primarily due to high levels of illegal trading activity. The objectives of this paper are to identify major factors responsible for the declaration problem. The economic impact of such activities is pointed out. To conclude the discussion, options are presented that provide a basis for eliminating illegal marketing practices and thereby strengthening the economic role of the subsector in meeting national development objectives of developing countries .     

The minerals sector, sectoral analysis, and economic development

Sectoral analysis, a new branch of political science, alleges that mineral extraction creates a socio-political climate that promotes inflexible statism, which in turn leads to substandard development performance. The theory, that mineral economies underperform bureaucratically and economically, is said not only to hold in a post-dictive sense for the mature mineral economies, such as Zambia, but also in a predictive sense for the newer mineral economies, such as Ecuador. This essay reviews and assesses this hypothesis in the light of the empirical evidence comparing mineral production, state capacity, and economic performance. It finds that the sectoralist view is supportable only in selected cases, and is not a general result.     

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 .     

US nonfuels minerals policy

Nonfuels minerals policy in the USA flows from the differential and unique reactions of these industries to general economic policies in the areas of taxation, land use, environment, and international trade. To search for nonfuels minerals policy as direct statements by the US government on nonfuels minerals is futile. Nevertheless, the industries are unique in many characteristics, and the application of these general policies to the minerals industries creates unique situations. This uniqueness has been recognized by a virtually constant policy review over the past 10 years. The current effort is just beginning, and to prejudge now the outcome of this discussion is premature. However, it is not premature to argue that because of the uniqueness of these industries, it may be expected that their problems will be receiving public attention for many years to come.     

Shortfalls in minerals investments

The international minerals industry continues to have a substantial investment shortfall. The widening exploration and mineral development gaps, not only in the lesser developed countries but also in the developed nations, are sowing the seeds for future mineral supply disruptions and conflicts. Mutuality of interests demands concerted initiatives, individual as well as collective, to reverse the investment trends established by international mineral finance and the multinational corporations in order to pave the way for secure mineral supplies in the future at acceptable prices.     

US federal tax policy: The evolution of percentage depletion for minerals

We are often tempted to believe that a nation's resource policy is the result of careful deliberation and conscious design and is articulated in a relatively few statutes. This paper traces the history of percentage depletion in the USA and finds that this particular resource policy has evolved in the absence of a recognizable master plan. Percentage depletion has developed through a continuing political tug-of-war in the US Congress as a seemingly unending array of special interest groups sought and finally gained the prize of percentage depletion for their industry.     

PVC-based composite material containing recycled non-metallic printed circuit board (PCB) powders

The study is directed to the use of non-metallic powders obtained from comminuted recycled paper-based printed circuit boards (PCBs) as an additive to polyvinyl chloride (PVC) substrate. The physical properties of the non-metallic PCB (NMPCB) powders were measured, and the morphological, mechanical and thermal properties of the NMPCB/PVC composite material were investigated. The results show that recycled NMPCB powders, when added below a threshold, tended to increase the tensile strength and bending strength of PVC. When 20 wt% NMPCB powders (relative to the substrate PVC) of an average diameter of 0.08 mm were added, the composite tensile strength and bending strength reached 22.6 MPa and 39.83 MPa, respectively, representing 107.2% and 123.1% improvement over pure PVC. The elongation at break of the composite material reached 151.94% of that of pure PVC, while the Vicat softening temperature of the composite material did not increase significantly compared to the pure PVC. The above results suggest that paper-based NMPCB powders, when used at appropriate amounts, can be effective for toughening PVC. Thus, this study suggests a new route for reusing paper-based NMPCB, which may have a significant beneficial environmental impact.     

Ranking countries for minerals exploration

This paper presents the results of a survey of multinational mining companies pertaining to the ranking of countries for non-fuel minerals exploration in the early 1990s. It ranks countries in order of greatest exploration interest in the early 1990s, as well as countries that have geologic potential but unacceptable investment climates. It provides a list of priority commodities for exploration, the criteria for exploration levels, critical and negotiable factors in selecting countries for exploration, and the investment climate ratings of countries where exploration is probable in the early 1990s. The results of the survey indicate that major minerals exploration activities are concentrated in a small number of countries. Political and economic reforms around the world should increase the number of countries receiving active private sector minerals exploration in the 1990s.