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Volume 3 (2019)


Some aspects of mining for the global economy

D. Popov1

Mining represents a wide segment of the economy, including about 6 thousand companies and 2.5 million employees worldwide, as well as an informal component known as traditional and small mining business, covering about 15-25 million people. The industry affects the interests of many actors, including the state (which plays a key role in the role of the regulator, allowing mining companies to maximize their contribution to the economy), investors, contractors and suppliers, service companies, indigenous people and their organizations, settlements affected by development, trade unions, research organizations and consumers.

Only for the period of 10-12 years (from 2002 to 2012) the role of mining in the global economy has grown rapidly. The total volume of mining products at value in 2012 was six times higher than in 2000 and 60% higher compared to 2008. Data shows that during this period the growth rate of the mining industry significantly exceeded the global GDP(Gross domestic product) growth rate , reflecting the relative increase of the importance of mining for the global economy.

This boom was caused in large part by the unprecedented growing demand for minerals and metals in China, India and other developing countries, which contrasted with the lack of any growth in the previous decade. This growth in the mining industry was the result of a combination of higher prices and increased production volumes.

The tendency shift of mining to developing countries continues. There are currently two major regions in the world that are relatively less geologically explored than others. These are Africa and the Arctic, including Siberia, Alaska, Northern Canada, Greenland and the countries of Northern Europe. In addition, there are opportunities for mining at the bottom of the deep seas. The first permissions for mining at a depth of 1.500 m. were recently issued in Papua New Guinea.

In the long term, most of the new production capacities are expected to be produced in the same minerals and metals as today: coal, iron ore, copper, bauxite, phosphorites, as well as in smaller, but also significant volumes - nickel, zinc and lead. For example, by 2030, demand for iron ore may reach 3.500 million tons annually, and for copper and nickel, respectively, 28 and 4 million tons. Iron ore, copper, gold and nickel will remain the largest investment targets. These metals will account for up to 85% of all future investments in mining.

In the long term, most of the new production capacities are expected to be produced in the same minerals and metals as today: coal, iron ore, copper, bauxite, phosphorites, as well as in smaller, but also significant volumes - nickel, zinc and lead. For example, by 2030, demand for iron ore may reach 3.500 million tons annually, and for copper and nickel, respectively, 28 and 4 million tons. Iron ore, copper, gold and nickel will remain the largest investment targets. These metals will account for up to 85% of all future investments in mining.

References
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