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.     

Landowner equity in Papua New Guinea's minerals sector: Review and policy issues

The involvement of local communities as equity holders in major mineral resource developments dates back over a decade in Papua New Guinea. This article reviews the history and result of landowner equity at two of Papua New Guinea's major mines (Porgera and Lihir), with a particular focus on the contribution of these equity holdings to local sustainable development. It is found that while an equity holding can provide significant returns to a local community, it also exposes them to significant financial risk. A second major area of concern is the structures and instruments by which revenues generated from the equity are distributed and utilized within the local community. Further research and policy redirection is required before local equity holding can be viewed as making a significant contribution to local sustainable development.     

Green procurement in the Asian public sector and the Hong Kong private sector

Since the 1980s, green purchasing/green procurement has increasingly been recognised as an effective means of addressing and reducing negative environmental impacts related to product production and consumption around the world. This paper reviews the procurement practices and policies of five Asian countries and Hong Kong, in the context of an international overview of green purchasing and practices. The extent of government involvement in green procurement is found to directly determine its overall effectiveness, and up-to-date information resources clearly enhance delivery and performance. A case study in Hong Kong demonstrates how public leadership on green procurement has advanced green procurement in the private sector.     

Coal sector reform and its implications for the power sector in China

Coal is the major primary energy which fuels the economic growth in China. The Soviet-style institution of the coal sector was adopted after the People’s Republic was founded in 1949. But since the end of 1970s there have been major changes: the market mechanism was introduced to the coal sector and the Major State Coal mines were transferred from central to local governments. This paper explains these market-oriented and decentralized reforms and explores their implications for the power sector, now the largest single consumer of coal. The argument of this paper is that the market-oriented and decentralized reforms in the coal sector were influenced by the changes in state energy investment priority as well as the relationship between the central and local governments in the context of broader reforms within China’s economy. However, these market-oriented and decentralized reforms have not equally influenced the power sector. Even though initial coal sector reform spurred power generation, the subsequent fragmented reforms raise concern about electricity shortages.     

Environmental performance policy indicators for the public sector: the case of the defence sector

The development of environmental performance policy indicators for public services, and in particular for the defence sector, is an emerging issue. Despite a number of recent initiatives there has been little work done in this area, since the other sectors usually focused on are agriculture, transport, industry, tourism and energy. This type of tool can be an important component for environmental performance evaluation at policy level, when integrated in the general performance assessment system of public missions and activities. The main objective of this research was to develop environmental performance policy indicators for the public sector, specifically applied to the defence sector. Previous research included an assessment of the environmental profile, through the evaluation of how environmental management practices have been adopted in this sector and an assessment of environmental aspects and impacts. This paper builds upon that previous research, developing an indicator framework--SEPI--supported by the selection and construction of environmental performance indicators. Another aim is to discuss how the current environmental indicator framework can be integrated into overall performance management. The Portuguese defence sector is presented and the usefulness of this methodology demonstrated. Feasibility and relevancy criteria are applied to evaluate the set of indicators proposed, allowing indicators to be scored and indicators for the policy level to be obtained.     

Rehabilitation of the Ghanaian mining sector

As part of the Ghanaian government's efforts to revive the national economy a series of measures were instituted. They included devaluation of the local currency, reduction of budget deficits and the rehabilitation of basic infrastructure. The mining industry plays an important role in the national economy and special measures were also introduced to encourage its rehabilitation and development. A new licensing system was introduced and a new fiscal regime was established which inter alia allows mining companies to retain part of their export earnings offshore. The response of the private investment community to those changes has been excellent and investment in the mining industry has increased substantially.     

Exchange-rate economics for the resources sector

The paper provides an account of aspects of exchange-rate economics that are of particular relevance to the resources sector. The issues discussed include exchange-rate volatility and the risk management practices used to deal with it, the role of productivity differences across countries, and the impact of a booming resources sector on the country's exchange rate. The discussion is organized around a simple stylized model that emphasizes the quantity theory of money and purchasing power parity as a long-run link between prices and exchange rates.     

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 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.     

Jordan,minerals extraction and the resource curse

In its role as a competitive producer of phosphate and potash Jordan has not suffered noticeably from the Resource Curse over the past 50 years. However, the effects on its economy because of its geographical proximity to major oil-producing states have been both positive and negative. It is arguable that an oil resource curse has applied to Jordan.     

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.     

Analysis of the life cycle of non-ferrous minerals

This paper examines the utility of a methodology for forecasting the lifecycle of metals obtained from non-renewable resources which are subject to high rates of growth in consumption. A rate method is used, subject to arbitrarily chosen upper limits of reserves. One general pattern which emerges is that extraction of the resource will tend to rise exponentially in face of falling rate of discovery of new reserves; a degree of ‘overshoot’ occurs. In other words, an economy might continue to be geared to a given non-renewable resource with a degree of optimism about reserve life being maintained until well after it is justifiable and there may be inadequate time for the price mechanism alone to operate to generate development of substitutes, and for the introduction of intensive recycle technology or greater selectivity and economies in the use of the original resource.It is concluded that the methodology used here could be useful to study the possible forms of lifecycles for the base metals.     

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.     

The Ethiopian mining sector

The Ethiopian Constitution of 1928 vests in the state ownership of all mineral resources. However, the mining code of 1944 recognized the right of individuals and private companies to explore for and develop those resources. The results were quite impressive; Ethiopia became a producer of gold, platinum, copper and other minerals. A revised mining code in 1971 further extended the rights of individuals and companies to develop the mineral resources of the country. In 1974, the newly established revolutionary government eliminated private ownership of mines and established instead state-owned mining companies to develop the mineral resources of the country. In time, the demand for government funding by other sectors of the economy left little for the mining sector and it went into decline. To correct that problem, the Government of Ethiopia in 1989 decided to again make private ownership in the mining sector legal. This paper describes some of the recent initiatives to open the mining sector to private enterprise.