Lecture 11 resources 2 political Flashcards
What is the geography of distribution of raw materials mean.
minerals are politically significant -
why are minerals politically significant?
1) Minerals constitute the base of an advanced economy (they are vital for the creation of industrial and ultimately military capability). ☺
2) Because mineral wealth is distributed in an inequitable manner amongst countries.
3) Minerals figure in attempts by states to utilise techniques of “economic statecraft” i.e. sanctions.
provide 3 examples of why are minerals politically significant
1) During the period between the two world wars.[Many political analysts contend minerals played a significant part in Germanys expansionist policies].
2) The 1973 OPEC Oil price increase. [When the price of crude oil quadrupled from $2.5 to $10 per barrel.]
3) 1991 Gulf War. [ When major developed countries showed they will fight for access to mineral resources.]
why is there a difference in production and consumption? steel industry
some countries are buying more than they produce and some are producing more than they need.
Largest reserves
China, Ukraine, Russia, Australia, US
largest consumers
China, Japan, US, Russia, South Korea.
give an example of sanctions
1973 OPEC oil embargo - sanctions on the US because it has been supporting Israel.
- cut supplies to the US
raised price of oil to American allies in Europe.
EU sanctions on Iran 2012
caused a massive reduction in Iran’s revenue
US sanctions on Rusal (Russian aluminium company) caused increase in prices of aluminium - this is passed onto the consumer.
What is resource nationalism?
- Countries that secure greater control over their own indigenous assets.
- Countries exerting political influence to secure access to key industrial resources.
What are the politics of Zambia?
Politics in Zambia -
Copper, poverty and tax dodging: At the heart of Zambia’s high stakes elections
*Zambia’s election violence is a fight over scarce resources, as government failed to
capitalise on recent high copper prices to fight poverty and boost development, while
some companies underpaid taxes by billions of dollars.
*Recent steps to lower mining royalties, after mining companies threatened to cut
production, exacerbate the funding crisis in health, education and social programmes.
*Church, community-based and other groups have put forward concrete proposals to fight
illicit financial flows and protect communities that show a way forward for the new
government.
What is the concept of strategic minerals?
- initially in the US - between the wars, USA was department drafted a list of 28 materials - wartime difficulties.
- 1939 - US army and Navy defined what was considered strategic as = items essential for defence, supply from foreign sources and needed for wartime.
- 112 US strategic material stockpiling act 1979:
Strategic material =
a) would be needed to supply the military, industrial and essentially civilian need
for the US during a national emergency and
b) are not found or produced in the USA in sufficient quantities to meet such a need.
is it reserves that causes problems with access to resources?
No, it is the distribution of minerals that causes problems - 25% of global production of diamonds, vanadium, PGE, chromite, cobalt and
manganese are from Angola, Botswana, Lesotho, Mozambique, S. Africa, Tanzania, Zambia, Zimbabwe.
What are the 4 primary components of strategic mineral evaluation?
1) production Capacity; Labour; Violent Conflict; Supply Sources.
2) Transportation: Risk to various major supply lines of minerals
3) Consumption: Concerned with cost of possible disruption
4) Trade: Collective price agreements
What are the uses of Chromite?
Chromite uses:
- stainless steel
metal casting
furnace walls
chrome plating
paint
where is chromium produced - trends etc.
Chromium is produced in south Africa (largest), then turkey, India, Kazakhstan production centred around poorer countries.
Key facts about chromium
- two largest ore producers = 2/3 or world production (Kazakstan and South Africa)
- 95% of chromium resources are geographically concentrated in South Africa
- no substitute for chromite ore in the production of ferrochromium nor in stainless steel, the major end use, or for chrome in supper-alloys, the major strategic end use.
What were the goals of the security of supply minerals program?
1 - to understand E-tech element cycling and concentration in natural systems.
2 - Understand how to predict and mitigate the environmental effects of extraction and recovery of E-tech elements.
What determines if a mineral is in a critical state?
Demand growth
- rapid = more than 50% increase of total demand until 2020
- moderate = more than 20% increase of total demand until 2020
Supply risks
- regional concentration of mining - more than 90% share of the global mining in the major three countries.
- Physical scarcity (reserves compared to annual demand)
- temporary scarcity (time lag between production and demand)
- structural or technical scarcity (metal is just a minor product in a coupled production and inefficiencies occur in the mining process, production and manufacturing.)
recycling restrictions
o High scale of dissipative applications
o Physical/chemical limitations for recycling
o Lack of suitable recycling technologies and/or recycling infrastructures
o Lack of price incentives for recycling
