Profiles of Third World mineral producers

The paper attempts to determine whether Third World mineral and nonmineral economies can be profiled on the basis of a limited number of economic variables. Using discriminant analysis, the study finds that mineral economies differ significantly from their non-mineral counterparts. Of significance is the fact that external debt variables rather than such standard candidates as export instability or the share of the government sector in GNP are critical in this differentiation.     

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.     

UNITED NATIONS MINERAL EXPLORATION ACTIVITIES: 1960–1976

The United Nations Development Programme plays an important role in strengthening the economies of developing countries through mineral exploration projects, training in geosciences and institution building. This review demonstrates the effectiveness of such activities, both in terms of the economic value of mineral discoveries, and the less tangible, long-term contribution through development of infrastructure and skills, introduction of modern technology, and building up a body of reliable information as a base for future planning of mineral resources development.     

To trade or not to trade: Firm-level analysis of emissions trading in Santiago,Chile

Whether tradable permits are appropriate for use in transition and developing economies—given special social and cultural circumstances, such as the lack of institutions and lack of expertise with market-based policies—is much debated. We conducted interviews and surveyed a sample of firms subject to emissions trading programs in Santiago, Chile, one of the first cities outside the OECD that has implemented such trading. The information gathered allows us to study what factors affect the performance of the trading programs in practice and the challenges and advantages of applying tradable permits in less developed countries.     

The USSR, China, India and the world metals industry to 2010

Remarkable changes are occurring within the economies of the USSR, China and India that are influencing mineral industry activities. These three countries account for a major share of world minerals production and consumption. Their domestic reforms may ultimately have a serious impact on the global mining industry. This paper examines the present status of the Soviet, Chinese and Indian mineral industries, and forecasts conditions to 2010. Long-term characteristics analysed include industrial production, intensity of use, consumption, mine and plant expansion and trade policy. Six metals are highlighted in the study – aluminium, copper, lead, nickel, steel and zinc.     

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.     

Informal coal mining in Eastern India: Evidence from the Raniganj Coalbelt

Unauthorized mines are not uncommon in mineral-rich regions of poorer countries, and India is no exception. Whether they constitute merely a law and order problem including safety issues, or there are important social and economic questions involved has yet to be thrashed out. The mining industry, at regional, national and international levels, is ambivalent towards such mining, tending to draw attention away from their informal nature to the size factor.
This article looks into the problem of such informal mining in the light of empirical surveys in eastern Indian collieries. These are called peoples' mines and they serve a significant purpose in local economies. The article's thesis is that peasant communities are trying to claim back a portion of the local resources lost to them through appropriation by mining companies thus re-asserting their traditional rights to local mineral resources. In conclusion, the need for a new moral economy for mining regions is stressed: an economy in which local communities will play a powerful role.     

Adsorption of pesticides onto quartz, calcite, kaolinite, and alpha-alumina

The fate of pesticides in aquifers is influenced by the small but not insignificant adsorption of pesticides to mineral surfaces. Batch experiments with five pesticides and four minerals were conducted to quantify the contributions to adsorption from different mineral surfaces and compare adsorption characteristics of selected pesticides. Investigated mineral phases included quartz, calcite, kaolinite, and alpha-alumina. Selected pesticides comprised atrazine (6-chloro-N2-ethyl-N4-isopropyl-1,3,5-triazine-2,4-diamine), isoproturon [3-(4-isopropylphenyl)-1,1-dimethylurea)], mecoprop [(RS)-2-(4-chloro-2-methylphenoxy)propionic acid], 2,4-D (2,4-dichlorophenoxyacetic acid), and bentazone [3-isopropyl-1H-2,1,3-benzothiadiazin-4-(3H)-one 2,2-dioxide]. Specific surface area and mineral surface charge proved to be important for the adsorption of these pesticides. Detectable adsorption of the anionic pesticides (mecoprop, 2,4-D, and bentazone) was only measured when positive sites were present on the mineral surface. However, when CaCl2 was added as an electrolyte, a detectable adsorption of mecoprop and 2,4-D was also measured on kaolinite (which exhibits a negative surface charge), probably due to formation of Ca-pesticide--surface complexes. Adsorption of the uncharged pesticides (atrazine and isoproturon) was detected only on kaolinite. The lack of adsorption on alpha-alumina indicates that the uncharged pesticides have a greater affinity for the silanol surface sites (=SiOH) than for the aluminol surface sites (=AlOH) in kaolinite. No measurable effect of ionic strength was found for the uncharged pesticides. The results indicate that quartz and calcite play a smaller role than clay minerals.     

CHANGING CONCEPTS, APPROACHES AND TECHNIQUES IN MINERAL EXPLORATION

The concepts, approaches and techniques in mineral exploration are changing to meet the demands of society for the discovery of new ore deposits. Recent developments in mineral processing and metal production have made it possible to consider deposits not acceptable before, such as low-grade uranium and copper occurrences, lateritic nickel, iron-rich chromites, lithium in brines, and disseminated beryllium deposits. New concepts on the formation of mineral deposits, as for example the continental drift theory, and new exploration techniques, such as remote sensing, airborne mapping and sampling, electronic data storage and analysis, assure a higher success rate of exploration projects.     

The Tucson Mineral Show and the market for collector minerals: The potential for artisanal and small scale miners

Minerals that are sold to collectors are often produced by artisanal and small scale miners in many developing countries. The market for collector minerals is not well understood by most government agencies or NGOs but has a large impact on the artisanal and small miners that have the opportunity to produce these minerals because of the high prices that can be realized. This paper describes the collector mineral market that is held annually in Tucson, Arizona, that analyzes the competitive forces that affect the profitability of the mineral dealers at the show and describes potential methods for artisanal and small scale miners to participate successfully in the show. Most collector minerals produced by artisanal and small-scale miners are valued for their aesthetic qualities instead of mineral content. The 43 shows that operate during the first two weeks in February make up the largest gem and mineral show in the world, the Tucson Show. The Tucson Mineral Show is a subgroup of six shows that specialize primarily in collector minerals.There are several competitive forces at the Tucson Mineral Show that can affect the profit potential of dealers that participate in the show. These forces include potential entrants, suppliers, buyers, substitutes, and rivalry among existing competitors. New entrants face several barriers to entering the market place including the supply side economies of scale, demand side benefits of scale, and capital requirements. Because of these barriers, the cost of doing business and the way that promoters organize and manage the shows, it is difficult for artisanal and small scale miners to enter the show and compete with established dealers. However, with support from entities such as local governments, non-profit organizations, and international organizations the artisanal and small scale miners have the potential to have their minerals sold at the Tucson Shows for prices that would be greater than what can be achieved in the local market. Methods to help the artisanal and small scale miners compete include direct sales or consignments to retail dealers, tailgating, development of sales co-operatives, and the creation of an artisanal/small scale mineral show.     

Using the cumulative availability curve to assess the threat of mineral depletion: The case of lithium

The cumulative availability curve shows the quantities of a mineral commodity that can be recovered under current conditions from existing resources at various prices. The future availability of a mineral commodity depends on the shape of its cumulative availability curve (determined by geologic considerations, such as the nature and incidence of the available mineral deposits), the speed at which society moves up the curve (determined by future demand and the extent to which this demand is satisfied by recycling), and shifts in the curve (determined by cost-reducing technological change and other factors). While the shape of the curve for any given mineral commodity may or may not be known, it is knowable since the geologic processes responsible for the curve's shape took place many years ago. In contrast, the factors governing how fast society moves up the curve and how the curve shifts over time are not only unknown but also unknowable.Using lithium as an example, this article shows that knowledge about the shape of the cumulative availability curve can by itself provide useful insights for some mineral commodities regarding the potential future threat of shortages due to depletion. Despite the inherent uncertainties surrounding the future growth in lithium demand as well as the uncertainties regarding the future cost-reducing effects of new production technologies, the shape of the lithium cumulative availability curve indicates that depletion is not likely to pose a serious problem over the rest of this century and well beyond.     

Investigation of declared seating preference and measured cognitive performance in a sunlit room

Current daylighting standards are not sufficient to guarantee a high-quality daylighting experience as they fail to take the behavior of building occupants into consideration. The way that a daylit room is appreciated and used has not been fully explored, especially under sunlighting conditions. This research is the first of its kind to assess how the distance between a subject and a sun patch on the floor is related to a broad range of behavioral responses, including conclusive preference and measured cognitive performance. One hundred subjects participated in a controlled experiment in a work setting. Investigations of the declared preferences of seating area and subjects' cognitive performances indicated that people are not always aware of the environmental factors that influence their behavior. Subjects were generally attracted to sunlight and outdoor views, but they did not necessarily perform best in these preferred areas. Privacy and a sense of control were two hidden factors that greatly affected subjects' decisions and performances. Current daylighting literature and design practice do not pay adequate attention to such factors as sense of visual control or privacy in the design of rooms. On the other hand, the perceived problem of visual glare caused by sunlight penetration did not affect performance as much as subjects believed it would. An additional result suggested that individual behaviors were more affected by environmental elements than were group activities.     

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.     

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.     

Economic liberalisation, innovation, and technology transfer: opportunities for cleaner production in the minerals industry

The liberalisation of investment regimes for mining over the past decade is encouraging an inflow of foreign investment for mining and mineral processing projects in developing and former centrally-planned economies. This new investment is occurring at a time of technological change within the international mining industry as market and regulatory pressures lead the most dynamic firms to invest in the development or acquisition of new technologies and management practices. The effective transfer and assimilation of these technologies enable mining companies to combine gains in productivity with improvements in environmental management. Joint ventures and other strategic alliances between inwardly investing firms and the newly privatised or remnant state-owned mining enterprises may provide an effective vehicle for the transfer of the techniques for more productive and cleaner operations. Specific examples of innovative process and remediation technologies are analysed and it is suggested that the ability of innovative technologies to improve competitiveness and sustain best-practice environmental management in the recipient is linked to the transfer and effective acquisition of the capacity to manage the complex processes of technological and organisational change. The paper closes with some recommendations for further research directed towards a systematic examination of this hypothesis.     

Mining during the next 25 years: issues and challenges

This article examines possible future trends in the mining industry in the light of past developments. After a preliminary discussion, the article considers various aspects of demand, supply, corporate structures, geographic distribution of investment, and social and environmental factors influencing the minerals industry. Scepticism is expressed about the smooth, exponential growth envisaged by many commentators. Some risks are elaborated, and a digression about gold is included.
The article argues that, while the minerals industry has concentrated on reducing cash costs through technical innovation and productivity improvement, new approaches may be needed in future that are not directly linked to economies of scale. Contracting out is an interesting trend with major implications.
The view that the mineral industry's corporate structure is becoming increasingly concentrated is challenged. Developments in consumer countries as well as historical precedents strongly suggest a more diverse structure.
The spread of minerals investment from North America and Australasia, and the resurgence of foreign direct investment in minerals projects, are placed in context and discussed from the viewpoints of both companies and host countries.
Although the appropriate responses to many of these issues can only properly be made by governments at all levels, the industry has to play its part.     

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.     

Mine size and the structure of costs

The number of operating mines has fallen sharply for most mineral products, and the average size of mine risen, with the changes gathering momentum during the 1990s. The paper looks at trends in copper, zinc and gold, and then explores the relationship between size and unit costs in copper mining, separately for underground and open-pit mines, in order to ascertain the existence and importance of economies of scale. Changes in mine size have been accompanied by major technological and geographical shifts. There is only a weak relationship between the scale of mines and overall unit costs per tonne of copper produced. The paper discusses the data and explores some of the reasons.     

Understanding world metals prices—Returns,volatility and diversification

In recent times, the prices of internationally traded metals have reached record highs and there is considerable uncertainty regarding their future. This phenomenon is partially driven by strong demand from a small number of emerging economies, such as China and India. This paper uses a long time-series (1900–2007) on 21 metals prices to investigate their properties, and presents unique features of their volatility, including a decomposition into within- and between-group components. If most volatility is commodity-specific rather than “global”, then metals-exporting dependent economies can smooth income via diversification.     

Regional development benefits of mineral projects

This paper discusses the development impact of mining and mineral processing on the regions in which they are located. The discussion is organized so as to be of relevance for policy formulation in resource-rich developing countries which consider the exploitation of their mineral wealth. The hypothesis is that mining technology, interpreted in a broad sense, has undergone a profound change since 1900. In consequence, experiences of mineralbased regional development in the industrialized countries around the turn of the century are of little relevance to the Third World in the 1980s. Contemporary mineral ventures have very weak regional development repercussions in the absence of forceful policies specifically directed towards the regional development goal.