Copper marketing with forward and futures contracts: state-owned and private Chilean firms during the 1990s

The use of futures in copper marketing became common during the 1990s, but little attention has been put on the reasons for it and its relationship with other elements of marketing such as forward sales and premiums. This study focuses on these issues and the benefit of futures relative to annual forward contracts. It argues futures complement annual forward contracts to secure the average market price rather than to maximize revenue. The paper analyzes empirical evidence for the six largest Chilean copper producers. This sample reflects well the entire Chilean industry during the 1990s. The analysis shows that forward sales became more volatile and futures seem to be the instrument to avoid income fluctuation at the end of the marketing process. However, the benefits of futures compared to forward sales are very modest. In the last section we suggest a better marketing instrument to maximize revenue may be premiums.     

Copper recycling and scrap availability

According to existing estimates, available old copper scrap has more than tripled over the past 40 years. Secondary production (that is, copper produced from recycling old scrap), however, has only doubled. Indeed, over the past 10 years, while copper consumption and primary production have continued to expand briskly, while available old scrap has increased by over 35%, secondary production has actually stagnated.For a world concerned with sustainable development and the quality of the earth's environment, this performance is disappointing and in need of explanation. Other things being equal, one would expect the amount of recycling to increase with the availability of scrap, as many econometric models of the world copper market developed over the past several decades explicitly assume.The key to understanding sluggish growth in secondary production, this paper argues, is distinguishing carefully between (1) the flow of old scrap that arrives each year from products reaching the end of their useful lives during the year and (2) the available stock of old scrap that was not recycled during earlier years presumably because it was too costly to do so. Using an econometric model, the paper shows that old scrap stocks, which have contributed most of the increase in available old copper scrap over the years, have a very modest impact on secondary production. Old scrap flows have a much greater effect, but they account for only about 4% of the available old scrap for any given year.     

The Selebi-Phikwe Nickel/Copper Mine in Botswana

The development of the Selebi-Phikwe nickel/copper mine from its inception to the commencement of production and the role of the various parties in the financing of the project are described. The project was launched with every expectation of financial success by the Government of Botswana and the mining companies involved. Unfortunately, from the beginning it was plagued by technical difficulties which led to cost overruns and by falling nickel/copper prices which led to negative cash flows. Shortages of capital and cash flow difficulties necessitated three separate re-structurings of the financial package.     

Experiences in the water resources development and management for sustainable use in Zimbabwe

Fresh water has become a very topical, emotive and sensitive issue in Zimbabwe following the recent continued droughts in conjunction with lack of finance to expand water resources development. Heated debates have arisen over the availability, allocation, distribution, disbursement and conservation of this precious resource. A great deal of inefficiency has also resulted from Government Ministries or Departments playing all the roles, from policymaking to supply operations. Government authorities often make the mistake of controlling day-to-day management of water and sewage services. In fact, greater accountability results when Government authorities focus on policymaking, establishing regulatory regimes that provide incentives for achieving goals and sanctions for serious failures, while giving sufficient autonomy to entities responsible for investment and operations to control outcomes. It is becoming more and more evident throughout the world that provision of water, as opposed to the planning and allocation of the water resource, should be handled by commercial undertakers. Indeed, Zimbabwe and its neighbours are currently involved with changing the status of their water departments to corporate entities; Botswana, Malawi, Namibia, South Africa and Zambia have already commercialised or are currently in the process of commercialising their freshwater supply services.     

我国环保产业关联效应的投入产出分析

本文通过对比2007年与2012年投入产出表中环保产业与国民经济42个产业部门间的关联程度及结构的变化,分析得出环保产业的发展现状及产业关联结构有所优化。"环保产业不环保"的现状已有一定的改善,而"环保产业不服务于环保"的现象仍有碍于环保产业投资效率的进一步提升,大部分环保投资仍在中间生产过程中被消耗,产业生产效率水平较低。因此,政府应通过扩大环保技术投资、强化环境规制等政策打好产业组合拳,促进社会资本投资在加强环保产业内部竞争方面的综合作用,从而提高环保产业自身的价值创造能力,促进环保投资效率的提高。     

Impacts of foreign investment on sustainable development in a Chilean mining region

The desert mining region of Antofagasta, Chile, enjoyed spectacular economic growth in the 1990s as a result of foreign direct investment (FDI), mainly in the exploitation of the region's rich copper deposits. In a country considered by international financial institutions to be a good example of economic performance, Antofagasta has been termed a model region,and Chile's economic and social development in the 1990s has been considered a suitable model for other Latin American countries. However, development indices based on statistical data must be examined with caution, as human welfare does not necessarily keep pace with economic growth. This article analyses the Antofagasta Region in terms of problems that may occur in conjunction with accelerated economic growth, and how these can affect the environment, as well as the regional labour market. The article also examines a regional economic strategy for Antofagasta recently proposed by the local government, and suggests new alternatives for the sustainable economic development of the region.     

LONG-TERM COPPER PRODUCTION OPTIONS OF THE DEVELOPING COUNTRIES

After petroleum, copper is the most important foreign exchange earner of the developing countries. Supply of copper from developing nations is heavily concentrated in six countries. The production strategies of these countries can, therefore, have a significant impact on world copper trends as well as on their own copper earnings. The author, former Chief Economist of CIPEC, examines the implications of two alternative growth paths for long-term copper production in these countries.     

Bauxite and alumina - Jamaica's reach for the future

Jamaica has developed a new strategy designed to allow it to expand its bauxite and alumina production, to diversify both its markets and its sources of investment and, to move downstream into the production of aluminium and semi-finished products. Some benefits of this new strategy are already evident, several bauxite mines are being expanded, alumina plants are being re-opened while others are adding additional capacity, and the countries of Europe, Asia and North America are showing renewed interest in investing in Jamaica. With its new strategy, Jamaica intends to participate more fully in the world economy.     

Managing mineral dependence: Papua New Guinea 1972–89

Papua New Guinea (PNG) managed the mineral booms of 1973–74, 1979–82 and 1987-89 well compared with other mineral exporting economies. Orthodox macroeconomic policies were one reason for this while the cushion afforded by the slow withdrawal of Australian aid was another. PNG also renegotiated MNC mining contracts in its favour without curbing foreign investment, but it managed its fragile political unity less well. Secession closed a large mine in 1989 while successful rent-seeking left wage indexation unreformed. Relatively high wages, exchange rate overvaluation and foreign investment controls in non-mining sectors retarded structural diversification: mineral dependence remains uncomfortably high a generation after the start-up of the first copper mine.     

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.     

Modelling future copper ore grade decline based on a detailed assessment of copper resources and mining

The concept of “peak oil” has been explored and debated extensively within the literature. However there has been comparatively little research examining the concept of “peak minerals”, particularly in-depth analyses for individual metals. This paper presents scenarios for mined copper production based upon a detailed assessment of global copper resources and historic mine production. Scenarios for production from major copper deposit types and from individual countries or regions were developed using the Geologic Resources Supply-Demand Model (GeRS-DeMo). These scenarios were extended using cumulative grade-tonnage data, derived from our resource database, to produce estimates of potential rates of copper ore grade decline.The scenarios indicate that there are sufficient identified copper resources to grow mined copper production for at least the next twenty years. The future rate of ore grade decline may be less than has historically been the case, as mined grades are approaching the average resource grade and there is still significant copper endowment in high grade ore bodies. Despite increasing demand for copper as the developing world experiences economic growth, the economic and environmental impacts associated with increased production rates and declining ore grades (particularly those relating to energy consumption, water consumption and greenhouse gas emissions) will present barriers to the continued expansion of the industry. For these reasons peak mined copper production may well be realised during this century.     

SX-EW copper and the technology cycle

Technology is viewed to advance through a series of cycles, starting with the emergence of a major breakthrough, followed by a period of ferment as alternate designs and improvements rapidly appear, leading to a dominant design, and then a long plateau period of minor incremental change. In this paper, the technology cycle model is applied to the history of solvent extraction electrowinning (SX-EW) processing of copper ore, which, along with other innovations, has transformed the US copper mining industry. The general framework of the technology cycle model holds, although there are differences relating to the specific nature of SX-EW processing.One particularly interesting difference is that SX-EW initially was complementary to the original method of ore processing, known as flotation. Only in recent years has it directly challenged flotation in the processing of supergene or transitional ore. In addition, the analysis shows that the SX-EW process helped the US producers maintain their competitiveness for at least a decade before the process was widely adopted by their main competitors, the Chilean producers. This raises questions about the widely held assumption that research and development of new innovations can provide firms and countries with little or no competitive advantage because new technologies diffuse very rapidly in today’s global economy.     

中国与美国对外直接投资区位选择的比较研究

基于邓宁的国际生产折衷理论,对比了中美两国投资规模、空间分布和发展阶段,利用灰色关联分析法比较了影响两国投资区位的因子.结果表明,影响美国对外投资的主要因子是人均GNP、CH和CO2的排放量,影响中国的主要因子是直接投资净流入量、航空运输量和CPI;美国对外直接投资属于市场导向型,而中国尚处于转型期,为对外投资第三阶段.     

Norway's offshore petroleum industry

During the past decade, Norway has become an important oil and gas producer. Annual production is six times national consumption. Development policies of the national government have been cautious, and future policies will probably follow a similar pattern. The government recently opened offshore areas poleward of 62°N latitude, a decision likely to have a significant impact on Norway's future as an oil producer. Norway maintains a tight reign on foreign oil company participation, domestic downstream processing of crude, oil company taxation and oil revenue investment within the national economy. Norway's large inflow of oil-related capital investments and production revenues have contributed to significant inflation and to changes in local labour supplies. Norway has always used its petroleum industry to further the country's overall development goals, a policy that will continue in the years ahead.     

Political Risks of Transnational Petroleum Investment: the Mitigating Role of National and International Insurance Programmes

As in the case of all foreign investments in general, political risk has been one of the more serious inhibiting factors in petroleum operations by transnational companies. In practice, however, these risks can be significantly mitigated or eliminated altogether, through the insurance programmes which are normally available to all foreign investors. This article reviews the petroleum activities of some of such programmes, notably those sponsored by the US Federal Government under the Overseas Private Investment Corporation (OPIC) and, more recently, by the World Bank under its newly created Multilateral Investment Corporation Agency (MIGA).     

International oil market – new directions

This article focuses on changes in the international petroleum industry during the past 20 years and examines some major trends, especially since the oil price collapse of 1986. The resumption of rapid increases in oil demand since 1986 in the developed market economies and the developing world has already led to a pronounced production shift to OPEC member countries where output increased by 6.6 million barrels per day or, 37% since 1985. Cutbacks in petroleum investments in non-OPEC countries are likely to result in even more dependence on the vast proved oil reserves of OPEC. However, the gap between peak output and sustainable production capacities in OPEC has narrowed and there is an urgent need for sizeable investments to expand capacities. Such investment programmes are already being implemented by transnational oil corporations in countries such as Indonesia and Nigeria where the companies had retained equity participation. In other countries such as Iraq and Venezuela where oil operations had been nationalized, transnational oil corporations are being invited to participate in new arrangements for oil production. New arrangements are also being considered in Eastern Europe and the USSR. New understandings, dialogue and cooperation between oil-consuming and producing countries will be necessary for the security of investments, supplies and markets in this process. The unanswered question is whether such cooperation can be achieved in time in order to avoid yet another energy crisis.     

The small-scale water provider in Paraguay: bringing private sector efficiency to water resource use and the provision of drinking water to the poor

This article provides a case study of small-scale private sector provision of water supply in Paraguay, where the Government has sought sector policy reforms that would encourage private investment in drinking water supply. Ironically, while the Government has focused almost entirely on garnering the interest of large private international water companies, much smaller local firms have already made significant investments in drinking water services for the poor, all without any participation or encouragement from the Government. Outside Paraguay's two major cities, Asunción and Ciudad del Este, large numbers of aguateros currently provide piped potable water to lower-income people. Though the aguateros have little legal footing — they are in many respects informal and unregulated —they have constructed as much as one third of all the new drinking water connections in these two cities over the past 20 years. The small-scale water systems in Paraguay offer a model of financial, economic, and water-use efficiency. This article asserts that an abundance of groundwater resources, cheap access to electricity for pumping, and a spirit of informal investment, among other variables, has spawned widespread use of this approach. This article documents and analyzes the features of these independent small-scale water providers in Paraguay and the efficiency they bring to the use of water resources in meeting drinking water demands among the poor. It also cautions against policies that may trample on such entrepreneurial spirit in the name of State-managed privatization.     

Golf Course Development in a Major Tourist Destination: Implications for Planning and Management

The planning and design of golf course developments is influenced by many factors. This paper focuses on the environmental ramifications of insufficient or lack of compliance with standard environmental and economic planning practices. Specifically, it looks at a tourist destination location that was under the influence of extensive land development and investment speculation. The Gold Coast in Australia was the focal point for large overseas investment due to changes in government legislation regarding foreign investment. Due to the economic climate in the second half of the 1980s many golf course resort developments were built, approved, or planned. Many of these circumvented normal business and environment planning processes. The result has been a dangerous concentration of golf facilities in environmentally sensitive areas and an oversupply of golf facilities. Both of these matters are discussed in terms of the general planning process and the potential economic and environmental impacts to the Gold Coast and similar destinations in other parts of the world.     

CuSO4 treatment of nuisance algal blooms in drinking water reservoirs

Since the turn of the century, copper sulfate has been used extensively as an algicide to control nuisance algal blooms in drinking water reservoirs Recent experimental results have shown that the toxicity of copper to algae is determined by the activity of ionic copper, and not the total copper concentration The sensitivity of algae to ionic copper has been found to vary considerably for different algal species Chemical processes such as precipitation, complexation by dissolved organic substances, and adsorption by suspended material can be important in controlling the chemical speciation of copper added to drinking water reservoirs The copper sulfate dosage required for effective treatment of a reservoir is shown to depend on water chemistry and the copper sensitivity of nuisance algal species By evaluating copper chemistry and copper sensitivity of nuisance algal species it may be possible to obtain effective treatment with lower copper sulfate dosages in some reservoirs     

不同来源地外商直接投资与工业能源消耗强度——基于江西省11个设区市的实证研究

运用2007—2010年江西省11个设区市的面板数据,分析外商直接投资对地区工业能源强度的影响。根据来源地不同,将直接投资分为港澳台直接投资和其他外商直接投资两类。研究表明,港澳台直接投资和其他外商直接投资对地区工业能源强度有显著的正影响;与港澳台投资相比,其他外商投资对地区工业能源强度的影响更大。