Antartic minerals: A common heritage approach

The potential value of Antarctic mineral resources, including petroleum, has already spurred efforts by the Antarctic Treaty powers to establish a legal and technical regime for minerals. Management and control of Antarctic minerals need not, however, be left to the countries that have staked territorial claims or otherwise been active in Antarctica. Possible mineral regimes include open access (or first-come, first-served) and a variety of multilateral and international approaches. This article suggests that a common heritage approach would be most suitable for Antarctica and, despite opposition to such an approach among the Antarctic Treaty powers, would be a practical solution to the mineral development issue. The time for international organizations to act to establish such a common heritage regime is, however, growing short.     

Resource diplomacy in a Canadian perspective

Concern for the supply of resources—renewable and nonrenewable—has been evident during the 1970s. All countries seek to increase the economic and social returns from the exploration, processing and distribution of minerals so as to improve the quality of life of their people. Proper resource management is imperative because of the interdependence of the mineral sector with other leading sectors of the economy and also because of the importance of minerals in the web of international economics. This paper emphasises the significance of recent international events as they affect the mineral industry and the Canadian position in the ever changing world of resource diplomacy.     

Imperatives for attracting investment and technology in the Indian mining sector

In India, the mineral resource inventory and the production of a large number of important minerals have registered significant increases during the last few decades. Yet the country continues to be a net importer of many high value and scarce minerals and metals, like gold, diamond, and several base metals. Exploration and development of the resources of these minerals are technology- and capital-intensive. To bring technology and capital through foreign direct investment (FDI) into the Indian mineral sector, it is imperative to lay stress on: accurate resource estimation and categorization, as well as realistic projection of the true values; rationalization of legislative measures based on R&D studies and reorganization of the implementation machinery; conducive tax structure; notification of acts and rules applicable to offshore mineral resources; time-frames for granting licences and leases; encouragement to labor productivity by rationalizing labor laws; reforms in the monetary system to increase market competitiveness of Indian minerals; and judicial reforms. FDI in the Indian mineral sector is important to firm up the knowledge-base of mineral resources and their optimum exploitation.     

‘Reserves’ as a leading indicator to future mineral production

The factors which influence the size and value of mineral reserves are discussed and an example is given of a more rigorous system for measuring supplies of non-renewable resources.The extent to which reserves and resources of minerals can be used as leading indicators of future mineral production is examined and examples of the dangers of over-reliance on this factor are described.Key aspects, such as confidence limits, differences in the economic exploitability, the dynamic nature of reserves, and their variability in grade, are examined in some detail using the South African coal industry as an example.     

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.     

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 .     

Mineral consumption in the UK, 1945–1980: A statistical analysis

Trends in the UK consumption of 12 metallic and 19 non-metallic minerals are examined for the period 1945–1980. Comparisons are drawn between these trends and developments in per capita GDP, total world consumption and UK mineral processing capacity. Although the consumption of most minerals has shown a tendency to stagnate or decline in recent years, taking the post-war period as a whole the consumption of non-metallics has displayed a faster and more sustained growth than that of metallics; thus their share of the total value of minerals consumed in the UK has increased significantly.     

Urbanization and mining: a case study of Michigan

The US mining industry is increasingly an industry of industrial and construction minerals production. In 2002, these types of minerals accounted for 80% of the value of non-fuel minerals produced in the USA. Industrial and construction mineral production tend to be smaller operations and nearer urban areas than metallic mining and have somewhat different problems. This paper is a study of the growing impact of urbanization and land-use fragmentation on mining, particularly industrial and construction minerals production. An analysis of the state of Michigan is used as a case study to present the issues and concerns.     

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.     

Long-term projections of non-fuel minerals: We were wrong,but why?

This article revisits global projections made in 1981 of eight metallic and fertilizer minerals for the year 2000. The principal objectives of the present study are to quantify the differences between the projected and observed levels of consumption for the year 2000 for eight of the 26 non-fuel minerals covered in the earlier study, and, then, to attempt to attribute these (often) large differences to the major determinants of minerals demand: income, technological, regulatory and other public policy changes, and changes in the recycling rates of the metallic minerals. The eight minerals are: aluminum, copper, iron, mercury, nickel, phosphate rock, potash and tin.This follow-up study begins with a discussion of the need for long-term projections of minerals. This section also includes a summary of the major determinants of the long-term demand for, and supply of, minerals, and a review of some of the earlier assessments of mineral needs and availability.Section 3 of the article begins with a short summary of the World Input–Output Model, the main methodological tool used in the earlier study that was developed by Prof. Wassily Leontief, the 1973 Nobel laureate in economics, and the way in which non-fuel minerals were represented in that system. This section also provides a summary of other global modeling efforts of non-fuel minerals that were carried out at a similar point in time for a similar interval.Section 4 presents the actual population, GDP and per capita GDP changes over the 1970–2000 time interval compared with the projected rates for these important determinants of mineral use, along with the projected and observed growth rates of minerals consumption for the eight non-fuel minerals included in this study. When the projections are compared to the observed global consumption rates for the year 2000, the differences range from +43% for nickel to +229% for potash.Section 5 discusses the apparent reasons for the differences between the projected and observed global consumption rates of these non-fuel minerals that include differences in the growth of GDP and GDP per capita, changes in recycling rates (for the metallic minerals), technological change, and regulatory or other public policy changes that have affected mineral use over the 30-year-interval ending in 2000.In light of the data and analysis presented in Sections sec# and sec#, the article concludes with some remarks, made almost a quarter of a century ago, by Prof. Leontief on the need and justification for long-term projections.     

A mineral commodity life-cycle?: Relationships between production,price and economic resources

The production, price and economic resources profiles of a number of mineral commodities are examined and consideration is given to the theory that such profiles can be related to one another within the framework of a life-cycle model of development. While the behaviour of some of the commodities examined appears to lend support to the theory, that of others reveals fundamental problems with its underlying assumptions. It is concluded that, while the demand for a mineral commodity in specific uses may indeed manifest cyclical tendencies, as a general behavioural theory and as a basis for resource estimation the life-cycle model applied to minerals is of little value.     

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.     

Mineral economics: Overview of a discipline

Mineral economics is the academic discipline that investigates and promotes understanding of economic and policy issues associated with the production and use of mineral commodities. While its origins can be traced back at least 200 years to the writings of David Ricardo and other early Classical economists, it emerged as a separate academic field only after World War II and then primarily in the United States. As a separate academic discipline, its roots are found in mining schools that needed to consider the milieu in which minerals are sold. While geologists, mining engineers, and others with technical backgrounds were largely responsible for creating the first stand-alone mineral-economics programs, ultimately trained economists became participants as well. Moreover, even after the rise of mineral-economics departments, most of the research in the field continued and continues to be carried out in other academic units, including traditional economic departments and engineering schools, as well as in government agencies, nonprofit research organizations, consulting firms, and international organizations.     

World mineral production and consumption in 1978

This article is an abridged version of a report on the status of world mineral production and consumption in 1978. Various indexes are used to assess the position in 1978 in comparison with that of earlier periods (1950 and 1973). The data given in this article are based on the calculation of mining production in terms of value. 51 major minerals are dealt with — six fuel materials, 22 metal materials, and 23 non-metal materials.     

The current status of the US mining industry

The US economy annually needs over 4 billion tons of new mineral supplies. The value of domestically produced energy and processed materials of mineral origin exceeds $175 billion annually, but domestic production of both raw and processed minerals is not keeping pace with demand.     

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.     

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.     

Investment and future mineral production

The author reviews recent estimates of world resources and reserves and notes that reserves tend to grow with mineral consumption. Legal and economic constraints to the extraction of minerals are at least as important as physical availability. The author also points out that there is far more investment in minerals (government induced investment, companies diversifying into mining, etc) than some commentators suggest. However, the large mining projects of the 1960s belong to the past, and supplies of minerals may well become tight if there is a concerted economic boom.     

The Environmental sustainability of mining in Australia: key mega-trends and looming constraints

At first ‘sustainable mining’ could be perceived as a paradox—minerals are widely held to be finite resources with rising consumption causing pressure on known resources. The true sustainability of mineral resources, however, is a much more complex picture and involves exploration, technology, economics, social and environmental issues, and advancing scientific knowledge—predicting future sustainability is therefore not a simple task. This paper presents the results from a landmark study on historical trends in Australian mining, including ore milled, ore grades, open cut versus underground mining, overburden/waste rock and economic resources. When complete data sets are compiled for specific metals, particular issues stand out with respect to sustainability—technological breakthroughs (e.g. flotation, carbon-in-pulp), new discoveries (e.g. uranium or U), price changes (e.g. Au, boom/bust cycles), social issues (e.g. strikes), etc. All of these issues are of prime importance in moving towards a semi-quantitative sustainability model of mineral resources and the mining industry. For the future, critical issues will continue to be declining ore grades (also ore quality and impurities), increased waste rock and associated liabilities, known economic resources, potential breakthrough technologies, and broader environmental constraints (e.g. carbon costs, water). For this latter area, many companies now report annually on sustainability performance—facilitating analysis of environmental sustainability with respect to production performance. By linking these two commonly disparate aspects—mining production and environmental/sustainability data—it becomes possible to better understand environmental sustainability and predict future constraints such as water requirements, greenhouse emissions, energy and reagent inputs, and the like. This paper will therefore present a range of fundamental data and issues which help towards quantifying the resource and environmental sustainability of mining—with critical implications for the mining industry and society as a whole.     

US resources policy: The 1982 report to congress

This paper analyses the extent to which the new Reagan mineral policy will encourage increased US production, substitution, recycling and conservation, domestic stock-piling and diversification of foreign supplies. Major inadequacies of the mineral policy are the transfer of responsibility for research and development from the government to the unprepared private sector, the lack of emphasis on short-term research and development in mineral processing technology, and the lack of coordination between minerals policy and national security and foreign policy. However, overall the policy is a positive step towards reducing the current US minerals supply vulnerability.