Lecture 11 - Geopolitics, strategic metals

Question 1

3 reasons why minerals are politically significant

Answer 1

1. Minerals constitute the base of an advanced economy - vital for industry and military capability
2. Mineral wealth is distributed in an inequitable manner amongst countries - 1973 OPEC Oil price prices
3. Minerals figure in attempts by states to utilise techniques of “economic statecraft”, - 1991 Gulf war

Question 2

Iron ore reserve distribution

Answer 2

1. China 2. Ukraine 3. Russia 4. Australia 5. USA

Question 3

Economic statecraft i.e. sanctions

Answer 3

• UN sanctions against Iran
• 1973 OPEC countries decided to place oil embargo on US raising oil prices

Question 4

Resource Nationalism

Answer 4

• examples of countries securing greater control over their own indigenous assets
• examples of countries exerting political influence to secure access to key industrial resources

Question 5

Result: Concept of strategic minerals in USA

Answer 5

Use between world wards where USA drafted a list of 28 minerals which had presented wartime difficulties.
Lead to stockpiling of minerals for military, industrial and essential civilian need

Question 6

4 components of strategic mineral evaluation

Answer 6

1. Production - capacity, labour, Conflict: Supply sources
2. Transportation - Risks to major supply lines
3. Consumption - Cost of possible disruption
4. Trade - Collective price agreements

Question 7

Uses of Chromite

Answer 7

• stainless steel
• furnace walls
• chrome plating
• paint

Question 8

Chromite ore production

Answer 8

Most from South Africa and Kazakhstan followed by India
95% of chromium resources are concentrated in SA.
No substitute for chromite ore in the production of ferrochromium or stainless steel.
So high strategic rating

Question 9

How to determine “Criticality”

Answer 9

• Demand growth
• Supply risks
• Recycling restrictions