MINERAL RESOURCES OF THE PH (MIN ECON) Flashcards
An ore when location, quantity, grade , geol characteristics, and continuity of mineralisaton are known and there is a concentration or occurence of the material of intinsic economic interest in or on earth’s crust in such form and quantity that there are reasonable prospect for eventual economic extraction
Mineral Resource
Econmicallyminerable part of a measure or indicated mineral resource
Ore Reserve
A portion of a mineralized envelope within which ore reserves have been defined
Orebody
What does the term economic imply in terms of ore reserve?
Extraction has been establsihed or analytically demonstrated to be viable or justifiable under reasonable investment assumption
Any single mineral or combination of minerals occuring in a mass, or deposit, of econmic interest
Mineralisation
What event in the mid seventies abruptly slowed down the deman in metals
Coeval Oil Crisis
What is the most produced mineral resources?
Sand and Gravel
What is the least produced?
Diamond, PGEs Gold, electronic metals and Silver
What is the most valuable mineral resources produce?
Crude oil, Natural gas, Coal and Sand and Gravel
What happens if demand for a minreal product is greater that the present supply?
Prices increases and companies profit and more investment is poured into the industry
What happens if the there’s a surplus of supply and low demand?
Price falls, producers loss and pulling out of resources/investments
Forces determining prices of mineral products
1) Demand and Supply 2)Gov’t Action 3)Recycling 4)Substitution and New technology
How does demand change?
1) Significant commodity substitution and 2)A change in technology 3)Expectation of future price change or shortagescan lead to hoarding thus increading demand
What is supply?
It refers to how much of a commodity will be offered for sale at a given price over a set period of time which is dependent on price and conditions of supply
What level of price will stimulate supply?
HIgh prices stimulate supply and increase in output
How does supply change?
1) Changes dure to force majuere circumstances 2) Improved technology in exploitation and 3)Discovery and exploitation of large new bodies
How does government action affect metal price?
Government can stabilize prices by hoarding stickpiles and control the spike of price.
How does recycling affect metal price?
Recycling prolong resource life, reduce mining waste and smelter effluecnts this leading to immunity from price rising, shortages of primary materials and actions of cartels. Also, energy for recycled materisals are usually lower than for ore treatments
How does substitution and new technology affect metal price?
Diminution in demand as the world thrives to improve techonology and find more effective substitution
Year when OPEC created uprecedented oil and metal price increase
1973
This helps in forecasting price trends of metalsover intermediate term (decades)
rise and fall of world business activity
An example of a world event which greatly affected metal price
OPEC 1973 oil crisis
What is the reason of nongold discoveries from 1976 onwards?
Difficult of exploration of a viable deposit in an unfavorable economic climate
What types of metals significantly decline in demand durng the 1990s?
Traditional metals, Mn, Pb, Sn ad W
What metals fluorished instead?
Ti, Ta and others
what was the price of Gold from 1934 to 1973?
$US 35 per troy ounce
Who and when was fixed link between dollar and gold removed?
Nixon, 1971
Highest price of Gold during the 1980s?
$US 850 per ounce
What was the result fo the rise of Gold price in 1971?
There was an increase in prospecting and disocvery of many large deposits
What type of industrial minerals are meant for local market?
Low Unit value
What type of industrials minerals are internationally tradeable?
High Unit Value minerals
How can a llow unit value becaome valuable?
When it is available close to a market
Differentiate the effects of world business activity between metals and non metals?
IM are generally more stable and affected less compared to metals
What brings grater stability in industrial mineral price?
Their use ad partial use in cnosumer nondurable for which consumption remains comparatively stable during recession or in other words, since industrial minerals are consistentl used by consumers its price is relatively stable
how does the value of a industrical mineral vary?
Depending on its end use and amount of processing/purification it has indergone.
An example of industrial mineral which varied with supply and demand?
POtash
What industrial minerals are likely to be short in supply?
sulfur, barite, talc and pyrophyllite
