Jump to content

Mineral economics: Difference between revisions

From Wikipedia, the free encyclopedia
Content deleted Content added
m Mineral economics global integration: spelling: affect --> effect
 
(14 intermediate revisions by 7 users not shown)
Line 1: Line 1:
'''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.<ref>Gordon, Richard L., and John E. Tilton. "Mineral economics: Overview of a discipline." Resources policy 33, no. 1 (2008): 4-11.</ref>
'''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.<ref>Gordon, Richard L., and John E. Tilton. "Mineral economics: Overview of a discipline." Resources policy 33, no. 1 (2008): 4-11.</ref>


Mineral economics [′min·rəl ‚ek·ə′näm·iks] is specially concerned with the analysis and understanding of mineral distribution as well as the ‘discovery, exploitation, and marketing of minerals’. <ref>{{Cite web |title=mineral economics |url=https://encyclopedia2.thefreedictionary.com/mineral+economics |access-date=2022-05-31 |website=TheFreeDictionary.com}}</ref> Mineral economics is an academic discipline which constructs policies regarding mineral commodities and their global distribution. <ref name=":0">{{Cite journal |last=Eggert |first=Roderick G. |date=2008-03-01 |title=Trends in mineral economics: Editorial retrospective, 1989–2006 |url=https://www.sciencedirect.com/science/article/pii/S0301420708000032 |journal=Resources Policy |language=en |volume=33 |issue=1 |pages=1–3 |doi=10.1016/j.resourpol.2007.11.002 |issn=0301-4207}}</ref> 
Mineral economics [′min·rəl ‚ek·ə′näm·iks] is specially concerned with the analysis and understanding of mineral distribution as well as the ‘discovery, exploitation, and marketing of minerals’.<ref>{{Cite web |title=mineral economics |url=https://encyclopedia2.thefreedictionary.com/mineral+economics |access-date=2022-05-31 |website=TheFreeDictionary.com}}</ref> Mineral economics is an academic discipline which constructs policies regarding mineral commodities and their global distribution.<ref name=":0">{{Cite journal |last=Eggert |first=Roderick G. |date=2008-03-01 |title=Trends in mineral economics: Editorial retrospective, 1989–2006 |url=https://www.sciencedirect.com/science/article/pii/S0301420708000032 |journal=Resources Policy |language=en |volume=33 |issue=1 |pages=1–3 |doi=10.1016/j.resourpol.2007.11.002 |issn=0301-4207}}</ref> 


The discipline of mineral economics examines the success and the implications associated with the mining industry and the impact the industry has on the economy socially and regarding the climate. <ref name=":1">{{Cite journal |last=Gordon |first=Richard L. |last2=Tilton |first2=John E. |date=2008-03-01 |title=Mineral economics: Overview of a discipline |url=https://www.sciencedirect.com/science/article/pii/S0301420708000068 |journal=Resources Policy |language=en |volume=33 |issue=1 |pages=4–11 |doi=10.1016/j.resourpol.2008.01.003 |issn=0301-4207}}</ref> Mineral economics is a continuing, evolving field which originally started after the Second World War and has continued to expand in today's modern climate. <ref name=":1" /> The identification of mineral sectors and their associated total revenue from specific commodities and how this varies across Countries is significant for global trade and fecundity. <ref name=":2">{{Cite journal |last=Guerin |first=Turlough F. |date=2020-10-01 |title=Perceptions of supplier impacts on sustainable development in the mining and minerals sector: a survey analysing opportunities and barriers from an Australian perspective |url=https://doi.org/10.1007/s13563-020-00224-5 |journal=Mineral Economics |language=en |volume=33 |issue=3 |pages=375–388 |doi=10.1007/s13563-020-00224-5 |issn=2191-2211}}</ref> Australia is a leading export in several mineral commodities thus providing a substantial percentage of revenue within the Australian economy. <ref name=":3">{{Cite web |last=corporateName=Commonwealth Parliament; address=Parliament House |first=Canberra |title=The minerals sector |url=https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook43p/mineralssector. |access-date=2022-05-31 |website=www.aph.gov.au |language=en-AU}}</ref> Other various leaders regarding mineral trading and contributions also holds significance in understanding and forming concise parameters to apply and construct. The establishment of such findings addresses concerns regarding societal support and sustainability concerns. The sustainability of the mining industry is also a key focus and how its direct impact on the environment must be monitored and necessary parameters applied. <ref name=":4">{{Cite web |last=corporateName=Commonwealth Parliament; address=Parliament House |first=Canberra |title=Sustainable Development and the Australian Minerals Sector |url=https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0001/01RP24 |access-date=2022-05-31 |website=www.aph.gov.au |language=en-AU}}</ref>
The discipline of mineral economics examines the success and the implications associated with the mining industry and the impact the industry has on the economy socially and regarding the climate.<ref name=":1">{{Cite journal |last1=Gordon |first1=Richard L. |last2=Tilton |first2=John E. |date=2008-03-01 |title=Mineral economics: Overview of a discipline |url=https://www.sciencedirect.com/science/article/pii/S0301420708000068 |journal=Resources Policy |language=en |volume=33 |issue=1 |pages=4–11 |doi=10.1016/j.resourpol.2008.01.003 |issn=0301-4207}}</ref> Mineral economics is a continuing, evolving field which originally started after the Second World War and has continued to expand in today's modern climate.<ref name=":1" /> The identification of mineral sectors and their associated total revenue from specific commodities and how this varies across Countries is significant for global trade and fecundity.<ref name=":2">{{Cite journal |last=Guerin |first=Turlough F. |date=2020-10-01 |title=Perceptions of supplier impacts on sustainable development in the mining and minerals sector: a survey analysing opportunities and barriers from an Australian perspective |url=https://doi.org/10.1007/s13563-020-00224-5 |journal=Mineral Economics |language=en |volume=33 |issue=3 |pages=375–388 |doi=10.1007/s13563-020-00224-5 |s2cid=219006011 |issn=2191-2211}}</ref> Australia is a leading export in several mineral commodities thus providing a substantial percentage of revenue within the Australian economy.<ref name=":3">{{Cite web |last=corporateName=Commonwealth Parliament; address=Parliament House |first=Canberra |title=The minerals sector |url=https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook43p/mineralssector. |access-date=2022-05-31 |website=www.aph.gov.au |language=en-AU}}</ref> Other various leaders regarding mineral trading and contributions also holds significance in understanding and forming concise parameters to apply and construct. The establishment of such findings addresses concerns regarding societal support and sustainability concerns. The sustainability of the mining industry is also a key focus and how its direct impact on the environment must be monitored and necessary parameters applied.<ref name=":4">{{Cite web |last=corporateName=Commonwealth Parliament; address=Parliament House |first=Canberra |title=Sustainable Development and the Australian Minerals Sector |url=https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0001/01RP24 |access-date=2022-05-31 |website=www.aph.gov.au |language=en-AU}}</ref>


{{TOC limit}}
{{TOC limit}}


== The history of mineral economics ==
== The history of mineral economics ==
Mineral economics did not become an academic discipline until after the Second World War, with the majority of current research being completed in other disciplines and fields. <ref name=":1" /> Although, mineral economics has continued to develop since the 1940’s by recognising the demand of such mineral commodities and the increase seen in trade globally. <ref name=":0" />
Mineral economics did not become an academic discipline until after the Second World War, with the majority of current research being completed in other disciplines and fields.<ref name=":1" /> Although, mineral economics has continued to develop since the 1940s by recognising the demand of such mineral commodities and the increase seen in trade globally.<ref name=":0" />


From late 1980’s to early 1990’s the demand of such mineral and metal products was minimal, with the perception of ’low rates of economic growth’ and ‘decline metal intensity of use’ the mineral economics sector was at risk of a ‘long-term decline’. <ref name=":0" />
From the late 1980s to early 1990s the demand of such mineral and metal products was minimal, with the perception of ’low rates of economic growth’ and ‘decline metal intensity of use’ the mineral economics sector was at risk of a ‘long-term decline’.<ref name=":0" />


During the 1990’s, economic transition became increasingly relevant across the globe. <ref name=":0" /> The proposal of foreign investment and trade, initially in response to the perceived ‘long-term decline’, promoted the demand of mineral resources and in doing so enhanced todays associated revenue of the sector. <ref name=":0" />
During the 1990s, economic transition became increasingly relevant across the globe.<ref name=":0" /> The proposal of foreign investment and trade, initially in response to the perceived ‘long-term decline’, promoted the demand of mineral resources and in doing so enhanced today's associated revenue of the sector.<ref name=":0" />


Sustainability concerning mineral economics was first introduced and discussed in 1993. <ref name=":0" /> Sustainability within the mineral sector concerns the following criteria; commercially viable, consistent with social preferences for the environment and acceptable social consequences. <ref name=":0" />
Sustainability concerning mineral economics was first introduced and discussed in 1993.<ref name=":0" /> Sustainability within the mineral sector concerns the following criteria; commercially viable, consistent with social preferences for the environment and acceptable social consequences.<ref name=":0"/>

Consistent within today's modern society, sustainability concerns are still a major issue regarding mineral economics. A major development in comparison to the 1940’s is the scope of which mineral economics as a discipline manages and analyses such commodities and their associated sector. The integration and collaboration from global trade has encouraged such progression of the discipline. While research is continued within the mining sector, specifically regarding the expansion of mineral trade and export, the significance regarding the support from the public remains consistent in ensuring that mineral economics is reflective of current concerns.


== Mineral economics global integration ==
== Mineral economics global integration ==
Mineral economics is a discipline that concerns several countries globally. <ref name=":5">{{Cite journal |first=G. |last=Walser |date=2002 |title=Economic impact of world mining |url=https://inis.iaea.org/search/search.aspx?orig_q=RN:33032900 |language=English}}</ref> Global parameters and perspectives are necessary to ensure impartial diversity across sectors regarding both trading and contribution. <ref name=":5" />
Mineral economics is a discipline that concerns several countries globally.<ref name=":5">{{Cite journal |first=G. |last=Walser |date=2002 |title=Economic impact of world mining |url=https://inis.iaea.org/search/search.aspx?orig_q=RN:33032900 |language=English}}</ref> Global parameters and perspectives are necessary to ensure impartial diversity across sectors regarding both trading and contribution.<ref name=":5" />


The Mining Contribution Index WIDER (MCI-W) ranked the Countries with the largest mining contribution in 2014. <ref name=":6">{{Cite book |url=https://oxford.universitypressscholarship.com/view/10.1093/oso/9780198817369.001.0001/oso-9780198817369 |title=Extractive Industries |date=2018-11-22 |publisher=Oxford University Press |isbn=978-0-19-881736-9 |editor-last=Addison |editor-first=Tony |volume=1 |language=en |doi=10.1093/oso/9780198817369.001.0001 |editor-last2=Roe |editor-first2=Alan}}</ref> The following five Countries listed in descending order; DRC, Chile, Australia, Mongolia and Papua New Guinea are the leading Countries to attain the largest mineral contribution globally. <ref name=":6" />
The Mining Contribution Index WIDER (MCI-W) ranked the Countries with the largest mining contribution in 2014.<ref name=":6">{{Cite book |url=https://oxford.universitypressscholarship.com/view/10.1093/oso/9780198817369.001.0001/oso-9780198817369 |title=Extractive Industries |series=WIDER Studies in Development Economics |date=2018-11-22 |publisher=Oxford University Press |isbn=978-0-19-881736-9 |editor-last=Addison |editor-first=Tony |volume=1 |language=en |doi=10.1093/oso/9780198817369.001.0001 |editor-last2=Roe |editor-first2=Alan}}</ref> The following five Countries listed in descending order; DRC, Chile, Australia, Mongolia and Papua New Guinea are the leading Countries to attain the largest mineral contribution globally.<ref name=":6" />


The impact of distributing such mineral commodities has a major affect on the economy internationally, often contributing to employment and generating income. <ref name=":5" /> The global demand of Mineral Economics has the potential to cause both positive and negative outcomes on society and the environment. <ref name=":7">{{Cite journal |last=Christmann |first=Patrice |date=2021-07-01 |title=Mineral Resource Governance in the 21st Century and a sustainable European Union |url=https://doi.org/10.1007/s13563-021-00265-4 |journal=Mineral Economics |language=en |volume=34 |issue=2 |pages=187–208 |doi=10.1007/s13563-021-00265-4 |issn=2191-2211 |pmc=8059114}}</ref>
The impact of distributing such mineral commodities has a major effect on the economy internationally, often contributing to employment and generating income.<ref name=":5" /> The global demand of Mineral Economics has the potential to cause both positive and negative outcomes on society and the environment.<ref name=":7">{{Cite journal |last=Christmann |first=Patrice |date=2021-07-01 |title=Mineral Resource Governance in the 21st Century and a sustainable European Union |url=https://doi.org/10.1007/s13563-021-00265-4 |journal=Mineral Economics |language=en |volume=34 |issue=2 |pages=187–208 |doi=10.1007/s13563-021-00265-4 |issn=2191-2211 |pmc=8059114}}</ref>


Implementing concise and fair access to mineral commodities was recommended by the Neighbourhood, Development and International Cooperation Instrument (NDICI) in 2021, although this recommendation has not yet been published. <ref name=":7" /> Creating a more renowned and inclusive mineral economy has been suggested to encourage higher sustainability of mineral economics respective to the abundance and market value of such commodities. <ref name=":7" />
Implementing concise and fair access to mineral commodities was recommended by the [[Neighbourhood, Development and International Cooperation Instrument]] (NDICI) in 2021, although this recommendation has not yet been published.<ref name=":7" /> Creating a more renowned and inclusive mineral economy has been suggested to encourage higher sustainability of mineral economics respective to the abundance and market value of such commodities.<ref name=":7" />


== The mineral economics sector in Australia ==
== The mineral economics sector in Australia ==
Mineral resources are an increasingly valuable commodity within Australia’s mining and mineral sector. <ref name=":1" /> Australia’s largest exports include ‘coal, oil and gas, metals, non-metals and construction materials’, and their mass distribution accounts for a substantial revenue into the Australian economy. <ref name=":3" />
Mineral resources are an increasingly valuable commodity within Australia's mining and mineral sector.<ref name=":1" /> Australia's largest exports include ‘coal, oil and gas, metals, non-metals and construction materials’, and their mass distribution accounts for a substantial revenue into the Australian economy.<ref name=":3" />


Mineral economics has major influence on government policies which ultimately has systematic implications for the sectors overall success and performance. <ref>{{Cite journal |last=Davis |first=Graham A |date=1998-12-01 |title=The minerals sector, sectoral analysis, and economic development |url=https://www.sciencedirect.com/science/article/pii/S0301420798000348 |journal=Resources Policy |language=en |volume=24 |issue=4 |pages=217–228 |doi=10.1016/S0301-4207(98)00034-8 |issn=0301-4207}}</ref> The mineral economic sector has limiting factors despite the precedented revenue, specifically oil producing nations regarding ‘debt, deficits, inflation and an inefficient public sector’. <ref name=":8">{{Cite web |last=Gittins |first=Ross |date=2017-02-03 |title=Mining's economic contribution not as big as you might think |url=https://www.smh.com.au/business/minings-economic-contribution-not-as-big-as-you-might-think-20170203-gu4r5l.html |access-date=2022-05-31 |website=The Sydney Morning Herald |language=en}}</ref>
Mineral economics has major influence on government policies which ultimately has systematic implications for the sectors overall success and performance.<ref>{{Cite journal |last=Davis |first=Graham A |date=1998-12-01 |title=The minerals sector, sectoral analysis, and economic development |url=https://www.sciencedirect.com/science/article/pii/S0301420798000348 |journal=Resources Policy |language=en |volume=24 |issue=4 |pages=217–228 |doi=10.1016/S0301-4207(98)00034-8 |issn=0301-4207}}</ref> The mineral economic sector has limiting factors despite the precedented revenue, specifically oil producing nations regarding ‘debt, deficits, inflation and an inefficient [[public sector]]’.<ref name=":8">{{Cite web |last=Gittins |first=Ross |date=2017-02-03 |title=Mining's economic contribution not as big as you might think |url=https://www.smh.com.au/business/minings-economic-contribution-not-as-big-as-you-might-think-20170203-gu4r5l.html |access-date=2022-05-31 |website=The Sydney Morning Herald |language=en}}</ref>


Consequently, the economic growth seen globally congregates the mineral sector to construct policies and procedures to predict both economic growth and depletion, as well as ensuring socioeconomic viable policies. Such policies also alleviates limiting factors previously mentioned, while also providing the opportunity for trends and associated revenue to be predicted and analysed which offers the potential to provide additional structures of parameters to limit inflation and deficits within the sector. <ref name=":9">{{Cite journal |last=Mainardi |first=S |date=1997-02-01 |title=Mineral resources and economic development: A survey |url=https://doi.org/10.1080/03768359708439950 |journal=Development Southern Africa |volume=14 |issue=1 |pages=61–77 |doi=10.1080/03768359708439950 |issn=0376-835X}}</ref>
Consequently, the economic growth seen globally congregates the mineral sector to construct policies and procedures to predict both economic growth and depletion, as well as ensuring socioeconomic viable policies. Such policies also alleviates limiting factors previously mentioned, while also providing the opportunity for trends and associated revenue to be predicted and analysed which offers the potential to provide additional structures of parameters to limit inflation and deficits within the sector.<ref name=":9">{{Cite journal |last=Mainardi |first=S |date=1997-02-01 |title=Mineral resources and economic development: A survey |url=https://doi.org/10.1080/03768359708439950 |journal=Development Southern Africa |volume=14 |issue=1 |pages=61–77 |doi=10.1080/03768359708439950 |issn=0376-835X}}</ref>

Australia's contribution of minerals has the potential to sustain implications regarding social repercussions regarding sustainability and current anthropogenic concerns. Australia is recognised as one of the leading contributors of mineral commodities globally. Despite the revenue associated with mineral commodities and the economic assistance, concerns regarding the impacts of mineral sectors and their detriment on climate specific concerns are heightened. The introduction and implementation of climate concerned protocols to limit such detrimental affects has the potential to alter such negative views and shift the current view of mineral commodities as a detriment.


== The Australian economy and its contribution ==
== The Australian economy and its contribution ==
The mineral sector is a major contributor to the Australian economy, specifically regarding its profiting revenue. The Australian mineral sector contributes ‘8 per cent of Gross Domestic Product’ into the economy. <ref name=":3" /> Australia’s exportation of black coal, iron ore, alumina, lead and zinc is identified as the largest global distributor. <ref name=":3" /> Mineral commodities and their distribution does not only provide profit to distributors but also offers support socioeconomically. <ref name=":9" /> The Australian economy and its leading distributor status, also promotes revenue in worldwide trade through export and relations. <ref name=":3" />
The mineral sector is a major contributor to the Australian economy, specifically regarding its profiting revenue. The Australian mineral sector contributes ‘8 per cent of Gross Domestic Product’ into the economy.<ref name=":3" /> Australia's exportation of black coal, iron ore, alumina, lead and zinc is identified as the largest global distributor.<ref name=":3" /> Mineral commodities and their distribution does not only provide profit to distributors but also offers support socioeconomically.<ref name=":9" /> The Australian economy and its leading distributor status, also promotes revenue in worldwide trade through export and relations.<ref name=":3" />


Despite this associated contribution, the mineral sector is ‘capital intensive’, relying heavily on machinery, which ultimately only supplements ‘2% of jobs’ within the mining sector, having minimal impact on overall economic benefit. <ref name=":8" />
Despite this associated contribution, the mineral sector is ‘capital intensive’, relying heavily on machinery, which ultimately only supplements ‘2% of jobs’ within the mining sector, having minimal impact on overall economic benefit.<ref name=":8" />


Foreign trade revenue attains contradictory elements also, due to the foreign stakeholders associated within the mining industry and their affiliated revenue, limiting overall economic value for Australia. <ref name=":8" /> However ensuring dynamic and accessible trade at a global scale has the potential to enhance Australia’s associated revenue regarding many diverse mineral sectors, while also providing the opportunity to expand regarding other economical trade and building a positive relationships alike.
Foreign trade revenue attains contradictory elements also, due to the foreign stakeholders associated within the mining industry and their affiliated revenue, limiting overall economic value for Australia.<ref name=":8" />


== Sustainability concerns ==
== Sustainability concerns ==
[[File:Image of the Mining industry.jpg|thumb|Concerns for mining sectors and their projected waste.]]
In today’s current climate, concerns are present regarding the sustainability of mineral resources. <ref name=":2" /> While the mineral sector provides a substantial income into the economy seen in several leading Countries contributing to exports. Mineral economics and the associated sectors, has established concerns effecting the endurance associated with mineral exportation and its associated income. <ref name=":2" />


In today's current climate, concerns are present regarding the sustainability of mineral resources.<ref name=":2" /> While the mineral sector provides a substantial income into the economy seen in several leading Countries contributing to exports. Mineral economics and the associated sectors, has established concerns effecting the endurance associated with mineral exportation and its associated income.<ref name=":2" />
The identification of such sustainability concerns, in relation to different sectors has been heavily discussed in recent years. <ref name=":4" /> Aspects such as climate change as well as the production and distribution of mineral commodities within the mining and mineral sector have been determined as significant in relation to concerns of mineral economics. <ref name=":4" /> More specifically regarding proposed literature, introducing such protocols and to ultimately promote and sustain funding ensures such sustenance and success within the concerned sector. Such policies which are implemented while also ensuring necessary parameters are outlined and complied with, ensures the longevity and future of mineral commodities and their distribution globally.

The identification of such sustainability concerns, in relation to different sectors has been heavily discussed in recent years.<ref name=":4" /> Aspects such as climate change as well as the production and distribution of mineral commodities within the mining and mineral sector have been determined as significant in relation to concerns of mineral economics.<ref name=":4" />


== The future of mineral economics ==
== The future of mineral economics ==
The future of minerals and their integration within society relies heavily on mineral economics and the policies constructed. <ref name=":10">{{Cite journal |last=Bardi |first=Ugo |date=2013 |title=The Mineral Question: How Energy and Technology Will Determine the Future of Mining |url=https://www.frontiersin.org/article/10.3389/fenrg.2013.00009 |journal=Frontiers in Energy Research |volume=1 |doi=10.3389/fenrg.2013.00009 |issn=2296-598X}}</ref> The integration of sustainable energy supplementation reveals concerns regarding the success and future of mineral usage, however it is important to note that technological advancements can not ‘replace energy’ entirely. <ref name=":10" /> Despite the current concerns of mineral availability in the future and an expected decline in minerals, a precedented increase of associated costs regarding mineral commodities is precedented. <ref name=":10" /> This heightens the necessity of implementing technologies and sustainable practices ensuring longevity of mineral resources and sectors, through recycling mineral resources and ensuring adequate policies are constructed reflective of both trade and exports. <ref name=":10" />
The future of minerals and their integration within society relies heavily on mineral economics and the policies constructed.<ref name=":10">{{Cite journal |last=Bardi |first=Ugo |date=2013 |title=The Mineral Question: How Energy and Technology Will Determine the Future of Mining |journal=Frontiers in Energy Research |volume=1 |doi=10.3389/fenrg.2013.00009 |issn=2296-598X|doi-access=free }}</ref> The integration of sustainable energy supplementation reveals concerns regarding the success and future of mineral usage, however it is important to note that technological advancements can not ‘replace energy’ entirely.<ref name=":10" /> Despite the current concerns of mineral availability in the future and an expected decline in minerals, a precedented increase of associated costs regarding mineral commodities is precedented.<ref name=":10" /> This heightens the necessity of implementing technologies and sustainable practices ensuring longevity of mineral resources and sectors, through recycling mineral resources and ensuring adequate policies are constructed reflective of both trade and exports.<ref name=":10" />

The integration of sustainable practices and policies, allows mineral economics as a discipline to gain support from the public sector. In conjunction with technological advancements previously mentioned, it has been predicted that the future of mineral economics respective of trade and exports is not at substantial risk of collapse.




==See also==
==See also==
Line 68: Line 60:


==External links==
==External links==
* [http://www.mineralecons.com A research library for mineral economists]. Updated articles on mineral discovery, production, policy and project evaluation.
* [https://link.springer.com/journal/13563 Mineral Economics academic journal]
* [https://link.springer.com/journal/13563 Mineral Economics academic journal]


<br />{{econ-term-stub}}
[[Category:Mineral economics| ]]
[[Category:Mineral economics| ]]
[[Category:Mining engineering]]
[[Category:Mining engineering]]


{{econ-term-stub}}

Latest revision as of 12:48, 26 May 2024

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.[1]

Mineral economics [′min·rəl ‚ek·ə′näm·iks] is specially concerned with the analysis and understanding of mineral distribution as well as the ‘discovery, exploitation, and marketing of minerals’.[2] Mineral economics is an academic discipline which constructs policies regarding mineral commodities and their global distribution.[3] 

The discipline of mineral economics examines the success and the implications associated with the mining industry and the impact the industry has on the economy socially and regarding the climate.[4] Mineral economics is a continuing, evolving field which originally started after the Second World War and has continued to expand in today's modern climate.[4] The identification of mineral sectors and their associated total revenue from specific commodities and how this varies across Countries is significant for global trade and fecundity.[5] Australia is a leading export in several mineral commodities thus providing a substantial percentage of revenue within the Australian economy.[6] Other various leaders regarding mineral trading and contributions also holds significance in understanding and forming concise parameters to apply and construct. The establishment of such findings addresses concerns regarding societal support and sustainability concerns. The sustainability of the mining industry is also a key focus and how its direct impact on the environment must be monitored and necessary parameters applied.[7]

The history of mineral economics

[edit]

Mineral economics did not become an academic discipline until after the Second World War, with the majority of current research being completed in other disciplines and fields.[4] Although, mineral economics has continued to develop since the 1940s by recognising the demand of such mineral commodities and the increase seen in trade globally.[3]

From the late 1980s to early 1990s the demand of such mineral and metal products was minimal, with the perception of ’low rates of economic growth’ and ‘decline metal intensity of use’ the mineral economics sector was at risk of a ‘long-term decline’.[3]

During the 1990s, economic transition became increasingly relevant across the globe.[3] The proposal of foreign investment and trade, initially in response to the perceived ‘long-term decline’, promoted the demand of mineral resources and in doing so enhanced today's associated revenue of the sector.[3]

Sustainability concerning mineral economics was first introduced and discussed in 1993.[3] Sustainability within the mineral sector concerns the following criteria; commercially viable, consistent with social preferences for the environment and acceptable social consequences.[3]

Mineral economics global integration

[edit]

Mineral economics is a discipline that concerns several countries globally.[8] Global parameters and perspectives are necessary to ensure impartial diversity across sectors regarding both trading and contribution.[8]

The Mining Contribution Index WIDER (MCI-W) ranked the Countries with the largest mining contribution in 2014.[9] The following five Countries listed in descending order; DRC, Chile, Australia, Mongolia and Papua New Guinea are the leading Countries to attain the largest mineral contribution globally.[9]

The impact of distributing such mineral commodities has a major effect on the economy internationally, often contributing to employment and generating income.[8] The global demand of Mineral Economics has the potential to cause both positive and negative outcomes on society and the environment.[10]

Implementing concise and fair access to mineral commodities was recommended by the Neighbourhood, Development and International Cooperation Instrument (NDICI) in 2021, although this recommendation has not yet been published.[10] Creating a more renowned and inclusive mineral economy has been suggested to encourage higher sustainability of mineral economics respective to the abundance and market value of such commodities.[10]

The mineral economics sector in Australia

[edit]

Mineral resources are an increasingly valuable commodity within Australia's mining and mineral sector.[4] Australia's largest exports include ‘coal, oil and gas, metals, non-metals and construction materials’, and their mass distribution accounts for a substantial revenue into the Australian economy.[6]

Mineral economics has major influence on government policies which ultimately has systematic implications for the sectors overall success and performance.[11] The mineral economic sector has limiting factors despite the precedented revenue, specifically oil producing nations regarding ‘debt, deficits, inflation and an inefficient public sector’.[12]

Consequently, the economic growth seen globally congregates the mineral sector to construct policies and procedures to predict both economic growth and depletion, as well as ensuring socioeconomic viable policies. Such policies also alleviates limiting factors previously mentioned, while also providing the opportunity for trends and associated revenue to be predicted and analysed which offers the potential to provide additional structures of parameters to limit inflation and deficits within the sector.[13]

The Australian economy and its contribution

[edit]

The mineral sector is a major contributor to the Australian economy, specifically regarding its profiting revenue. The Australian mineral sector contributes ‘8 per cent of Gross Domestic Product’ into the economy.[6] Australia's exportation of black coal, iron ore, alumina, lead and zinc is identified as the largest global distributor.[6] Mineral commodities and their distribution does not only provide profit to distributors but also offers support socioeconomically.[13] The Australian economy and its leading distributor status, also promotes revenue in worldwide trade through export and relations.[6]

Despite this associated contribution, the mineral sector is ‘capital intensive’, relying heavily on machinery, which ultimately only supplements ‘2% of jobs’ within the mining sector, having minimal impact on overall economic benefit.[12]

Foreign trade revenue attains contradictory elements also, due to the foreign stakeholders associated within the mining industry and their affiliated revenue, limiting overall economic value for Australia.[12]

Sustainability concerns

[edit]

In today's current climate, concerns are present regarding the sustainability of mineral resources.[5] While the mineral sector provides a substantial income into the economy seen in several leading Countries contributing to exports. Mineral economics and the associated sectors, has established concerns effecting the endurance associated with mineral exportation and its associated income.[5]

The identification of such sustainability concerns, in relation to different sectors has been heavily discussed in recent years.[7] Aspects such as climate change as well as the production and distribution of mineral commodities within the mining and mineral sector have been determined as significant in relation to concerns of mineral economics.[7]

The future of mineral economics

[edit]

The future of minerals and their integration within society relies heavily on mineral economics and the policies constructed.[14] The integration of sustainable energy supplementation reveals concerns regarding the success and future of mineral usage, however it is important to note that technological advancements can not ‘replace energy’ entirely.[14] Despite the current concerns of mineral availability in the future and an expected decline in minerals, a precedented increase of associated costs regarding mineral commodities is precedented.[14] This heightens the necessity of implementing technologies and sustainable practices ensuring longevity of mineral resources and sectors, through recycling mineral resources and ensuring adequate policies are constructed reflective of both trade and exports.[14]

See also

[edit]

References

[edit]
  1. ^ Gordon, Richard L., and John E. Tilton. "Mineral economics: Overview of a discipline." Resources policy 33, no. 1 (2008): 4-11.
  2. ^ "mineral economics". TheFreeDictionary.com. Retrieved 2022-05-31.
  3. ^ a b c d e f g Eggert, Roderick G. (2008-03-01). "Trends in mineral economics: Editorial retrospective, 1989–2006". Resources Policy. 33 (1): 1–3. doi:10.1016/j.resourpol.2007.11.002. ISSN 0301-4207.
  4. ^ a b c d Gordon, Richard L.; Tilton, John E. (2008-03-01). "Mineral economics: Overview of a discipline". Resources Policy. 33 (1): 4–11. doi:10.1016/j.resourpol.2008.01.003. ISSN 0301-4207.
  5. ^ a b c Guerin, Turlough F. (2020-10-01). "Perceptions of supplier impacts on sustainable development in the mining and minerals sector: a survey analysing opportunities and barriers from an Australian perspective". Mineral Economics. 33 (3): 375–388. doi:10.1007/s13563-020-00224-5. ISSN 2191-2211. S2CID 219006011.
  6. ^ a b c d e corporateName=Commonwealth Parliament; address=Parliament House, Canberra. "The minerals sector". www.aph.gov.au. Retrieved 2022-05-31.{{cite web}}: CS1 maint: multiple names: authors list (link)
  7. ^ a b c corporateName=Commonwealth Parliament; address=Parliament House, Canberra. "Sustainable Development and the Australian Minerals Sector". www.aph.gov.au. Retrieved 2022-05-31.{{cite web}}: CS1 maint: multiple names: authors list (link)
  8. ^ a b c Walser, G. (2002). "Economic impact of world mining". {{cite journal}}: Cite journal requires |journal= (help)
  9. ^ a b Addison, Tony; Roe, Alan, eds. (2018-11-22). Extractive Industries. WIDER Studies in Development Economics. Vol. 1. Oxford University Press. doi:10.1093/oso/9780198817369.001.0001. ISBN 978-0-19-881736-9.
  10. ^ a b c Christmann, Patrice (2021-07-01). "Mineral Resource Governance in the 21st Century and a sustainable European Union". Mineral Economics. 34 (2): 187–208. doi:10.1007/s13563-021-00265-4. ISSN 2191-2211. PMC 8059114.
  11. ^ Davis, Graham A (1998-12-01). "The minerals sector, sectoral analysis, and economic development". Resources Policy. 24 (4): 217–228. doi:10.1016/S0301-4207(98)00034-8. ISSN 0301-4207.
  12. ^ a b c Gittins, Ross (2017-02-03). "Mining's economic contribution not as big as you might think". The Sydney Morning Herald. Retrieved 2022-05-31.
  13. ^ a b Mainardi, S (1997-02-01). "Mineral resources and economic development: A survey". Development Southern Africa. 14 (1): 61–77. doi:10.1080/03768359708439950. ISSN 0376-835X.
  14. ^ a b c d Bardi, Ugo (2013). "The Mineral Question: How Energy and Technology Will Determine the Future of Mining". Frontiers in Energy Research. 1. doi:10.3389/fenrg.2013.00009. ISSN 2296-598X.

Further reading

[edit]
  • Gocht, Werner L., et al., 1988, International mineral economics: Mineral exploration, mine valuation, mineral markets, international mineral policies. Springer-Verlag, Berlin, ISBN 3-540-18749-9
[edit]