Abstract The main purpose of this paper is to provide a review of the European market for bentonite, a clay mineral with a wide range of industrial applications. The paper outlines some of the main uses of bentonite to gain a context in which the values of bentonite as an economic mineral can be understood. In addition, the paper examines the global geography of bentonite production and briefly addresses the world market and directions of trade. We focus on the recent years and attempt to shed light on where bentonite is produced, the direction of major trade flows and the main drivers of the European market.
As a consequence of the powerful changes that have occurred over the last three decades in the principal ‘drivers’ of economic change, there have been significant realignments in the global patterns of production and consumption of natural resources, as well as in the intensity of their use, in the quest to raise the level of material wellbeing throughout the world. In this paper, three large minerals-consuming (and -producing) countries are examined – the USA, China and Russia – and the story of a generation's economic progress (or decline, as the case may be) is seen through the lens of resource consumption – the ‘stuff’ that comprises a modern ‘standard of living’. After presenting data on gross domestic product, population, the observed levels and annual growth rates of consumption and production of four non-fuel minerals over a 35-year interval ending in 2005 for these countries and for the world, the paper includes a description of these countries' growing import dependence (or, as the case may be, their enhanced or reduced role as an exporter to the world economy) for some, or all, of these critical resources over this time period. These changing trends contribute to one of today's ‘front-burner’ public policy issues: resource-supply security. The last section of the paper examines the changing ‘intensity-of-use’ of these minerals. The paper concludes with some remarks on the geopolitical/environmental dilemma associated with resources, which is intensifying as we approach the beginning of the second decade of the twenty-first century.
All stages of petroleum development involve a chain of obligations and residual rights which include issues ranging from real environmental concerns to public perception of performance. Events in contemporary times suggest that the ability to deal effectively with these issues will be the defining moment in the energy industry this decade. One obligation currently occupying the front burner is the decommissioning of oil and gas installations. Decommissioning, which is the process of physical removal and disposal of structures at the end of their working life, is particularly complex due to the unpredictability of its date and cost. It is, however, unavoidable. While legislative and contractual mechanisms are easily formulated, the reality of implementation remains the answer to success. This paper aims at analysing the existing international and other legal regimes applicable to decommissioning, while considering country examples and outcomes of contractual relations. It also discusses emerging trends and explores the most environmentally responsive options. In its conclusion, it recognizes that though dynamic, decommissioning presents a whole new industry calling for creativity to bridge the gap which will yield optimal results. Acknowledgements I express my appreciation to David O. Adetoro (University of Glasgow) for his helpful comments on an earlier version of this manuscript. Notes 1. See, generally, Yergin (Citation1990). 2. See http://www.oilandgas.org.uk/issues/decommissioning/index.cfm; [cited 2009 Jan 26]. 3. See http://www.oilandgasuk.co.uk/issues/decommissioning; [cited 2009 Jan 26]. 4. The Brent Spar was a 14,500 tonne oil storage facility in the North Sea. An attempt to dispose of it in international waters was met with strong opposition from Greenpeace activists. Although the planned method of disposal was not illegal, opposition to it was based mainly on environmental considerations. The UK government, as well as Shell, had to immediately change earlier plans. This was a turning point for decommissioning. 5. See note 2. 6. See http://www.imo.org. 7. Section 5-1 of the Petroleum Activities Act 1996, No 72, Norway. 8. This was launched on 26 September 2007 during the Oil and Gas UK Decommissioning Seminar in Aberdeen.
As a consequence of the powerful changes that have occurred over the last three decades in the principal ‘drivers’ of economic change, there have been significant realignments in the global patterns of production and consumption of natural resources, as well as in the intensity of their use, in the quest to raise the level of material wellbeing throughout the world. In this paper, three large energy-consuming (and/or -producing) countries are examined – the USA, China and Russia – and the story of a generation's economic progress (or decline, as the case may be) is seen through the lens of energy consumption – the ‘stuff’ that fuels a modern ‘standard of living’. After presenting data on gross domestic product, population, the observed levels and annual growth rates of consumption and production of three fuel minerals over a 35-year interval ending in 2005 for these countries and for the world, the paper includes a description of these countries' growing import dependence (or, as the case may be, their enhanced or reduced role as an exporter to the world economy) for some, or all, of these critical resources over this time period. These changing trends contribute to one of today's ‘front-burner’ public policy issues: energy-supply security. The last section of the paper examines the changing ‘intensity-of-use’ of oil and total energy. The paper concludes with some remarks on the geopolitical/environmental dilemma associated with these energy resources, which is intensifying as we approach the beginning of the second decade of the twenty-first century.
The European Union has already cleared the path for the future accession of Turkey and the Western Balkan states (Albania, Bosnia-Herzegovina, Croatia, Kosovo, Macedonia, Montenegro and Serbia). The question is whether their mineral potential can significantly enrich Europe's supply situation, which is facing an international run on resources. Production and resource data for oil and natural gas clearly reveal that neither Turkey nor the Western Balkans have any considerable potential; their share of the EU-27 actual production is well below five per cent and they will remain net importers. Lignite is the only energy commodity with good potential. On the metal side, the accession countries produce chromium, boron and borates far in excess of European production; bauxite has a significant share. Other ferrous and non-ferrous metals primarily meet domestic demand. As expected, Turkey's mining and smelting production capacities, and its resources, are often larger than those of the seven Western Balkan states together. Short in oil and natural gas, however, Europe's supply needs provide Turkey with a trump card: its function as a long-term energy bridge between Asian producers and European customers. This might influence Europe's enlargement decisions.
The objective of this paper is to provide an overview of the market for steel scrap (or ferrous scrap) for steelmaking. A simple theoretical discussion of scrap markets is outlined, and it constitutes the basis for a discussion of consumption and supply behaviour, international trade patterns and the development of scrap prices over time and across world regions. The geographical scope is essentially world‐wide, but particular attention is paid to market behaviour and outcomes in Europe and the USA. In pursuing the above, the paper also reviews past research efforts on steel scrap markets and identifies topics for future economic research in the field. It is emphasized that improved knowledge of scrap markets ought to provide important lessons for public policy measures aimed at further increasing steel recycling rates, as well as for environmental impact assessment studies.
The coal mining industry is a vital economic sector for many countries including the United States (US). Coal is the primary fuel for electricity generation in the US and it is the cheapest and most abundant source of energy. The production of coal increased significantly from 573 million tonnes in 1978 to nearly 1.1 billion tonnes in 2006. This paper provides an overview of coal reserves in the US and an analysis of the coal industry's historical data with respect to the number of mines, total production, productivity, the number of employees, and safety and environmental records. It then discusses the issues challenging the coal industry regarding its future, including accurate estimation of reserves, regulatory limitation on carbon dioxide emissions, mine workers' safety, mine productivity, and resource optimization, as well as current efforts to address them.
This contribution is based on a study dealing with the limitation or withdrawal of ownership rights to real estates in favour of the mining industry. All EU countries are included as of the year 2006. The interventions of the state concern ensuring entry to other people's lands to carry out exploration activities and restraining the proprietary rights of landowners in favour of mining, including expropriation. The countries where mining legislation does not cover state interventions are also presented.
This article introduces elements of a global governance regime for sustainable resource management. It argues that such an approach is needed to combat the negative impacts arising from resource extraction and use as well as to overcome the co‐ordination problems of decentralized action. A first section summarizes main conflicts arising from limited access to natural resources and security of supply, environmental impacts and the performance of resource‐rich developing countries. A second section analyses existing initiatives for sustainable resource management such as resource funds, efforts to increase transparency, programmes in development co‐operation, standards and certification, material efficiency and resource productivity as well as efforts to limit the consumption of natural resources. Though these initiative have their merits, the article concludes that more systematic institutional mechanisms are needed. The third section introduces those institutional mechanisms: it describes the International Panel for Sustainable Resource Management (launched in November 2007), outlines elements of an international convention on sustainable resource management, develops the agenda for an international agency on the issue and discusses the interaction with existing international bodies such as the World Trade Organization. Written as a policy paper, the paper formulates proposals for various actors, from small‐scale miners to large‐scale global companies and governments. Its intention is to stimulate the debate and to broaden the horizon on the global dimension of using minerals.
This paper investigates the correlation and synchronization of cycles in the real prices of aluminium, copper, lead, tin, zinc, gold and silver from January 1947 through to July 2008. Standard correlation coefficients show strong correlations between all pairs of these prices, but this measure is difficult to interpret because it combines both the amplitude, duration and timing components of the movements in prices. The duration and timing of the cycles are measured separately using several cycle identification techniques. The co‐movements among the cyclical indicators from all these methods show very strong synchronization. We reject the hypothesis that these metal prices move independently of each other. This result indicates that there may be a ‘common cycle’ to real metal price movements and implies that price risk for producers and consumers of these metals is mostly systematic, or non‐diversifiable.
World primary copper production is expected to increase due to growing demand. Reflecting the geographical divergence of copper deposits and demanding industries, copper is produced by various production paths, differing in regional and technological aspects and related environmental pressures. For the mitigation of environmental pressures related to global material flows and a more sustainable resource management, policy makers, producers and buyers require information on regional resource efficiencies and effects of the key processes within the global production chain. This study quantifies material flows of refined copper production and environmental pressures along the pyro‐ and hydrometallurgical paths for Chile and Germany. Inventories for involved unit processes are distinguished by region and most commonly applied technologies, including electric power supply. Different production paths are compared by environmental pressure indicators (primary energy requirements, total material requirements, wat...
This paper assesses the performance of the regulatory regime for foreign mining investment in the Philippines. Based on this, it outlines policy recommendations for the Philippine government, which, if implemented, are likely to improve the governance infrastructure in the sector and, in turn, reduce regulatory risk for foreign mining investors and attract more foreign investment. The main argument is that the poor performance of the governance structures in the Philippine mining sector is behind the high level of regulatory risk for foreign mining investment, and the low levels of foreign investment. After outlining the relevant theoretical frameworks essential for the assessment of the performance of the regime, the article maps the regulatory regime governing foreign mining investment in the Philippines by summarizing the major rules and regulations, institutions (rule‐makers and regulators) and stakeholders in the Philippine mining industry. This is followed by the assessment of the performance of the regulatory regime for foreign mining investment. Finally, policy recommendations for improving governance infrastructure in the sector are outlined. This paper, unique in its subject area, may assist the Philippine government and possibly governments of other developing countries in improving governance infrastructure in their mining sectors and, thus, reduce the level of regulatory risk and increase the amount of foreign investment in the sector.
Regulating power is needed to compensate for unplanned deviations from production and consumption plans. The transmission system operator (TSO) in each country is responsible for keeping the electric system balanced, and activates regulation if needed to keep the frequency in the network stable. The need for regulations will likely grow when more wind power is built in the power system, as it is difficult to forecast wind power production and make accurate production plans. By using data on wind power prognosis errors from the West Danish power system, a need for regulating power in the Swedish system is predicted, with 4000 MW of new wind power installed. An attempt is made to forecast pricing on regulating power in Sweden based on the need for regulating power along with other aspects. The results show that the regulating power market energy turnover increases together with the monetary turnover following the large‐scale installation of wind power. Acknowledgements The authors are employed by Vattenfall AB and Vattenfall Research and Development AB. They wish to thank Nils Andersson, Urban Axelsson, Viktoria Neimane, Robin Murray, Daniel Nordgren, Bo Wrang, Joakim Allenmark Fredrik Wik, Björn Wetterborg and Olof Nilsson. To a large extent this work is based on a working paper by Brandberg and Broman Citation(2006). The authors would also like to thank an anonymous referee for suggestions to improve the paper. The usual disclaimer applies and the authors assume sole responsibility for any errors. Any views expressed in the article are those of the authors and do not necessarily reflect the views of their companies. Notes 1. For descriptions of the Nordic markets, see Bergman Citation(2005) or Damsgard and Green Citation(2005). 2. As a rule of thumb, Sweden has 45% nuclear, 45% hydro and 10% other sources. See, for example, Swedish Energy Agency Citation(2005). 3. See www.nordpool.no 4. The data and facts in this section can be found at www.svk.se 5. The facts and figures on the Nordel TSOs is found at Nordel's site (www.nordel.org) if no specific source is noted. The national power networks within Norway, Sweden, Finland and East Denmark are connected synchronically and are therefore called a synchronous system. Together with the network in West Denmark, which is connected to Norway and Sweden with high voltage direct current (HVDC) cables in the north, they comprise the interconnected Nordic power system (INPS). West Denmark is connected synchronically to the continental European power system (UCTE) in the south. In each Nordic country there is a TSO responsible for the operation of the national network and for keeping it in balance. The TSOs within the Nordic power system are Svenska Kraftnät (SvK) in Sweden, Fingrid in Finland, Statnett in Norway and Energinet.dk in Denmark. As the national power systems are connected, the TSOs are required to co‐ordinate their work. This is carried out within the Nordel organization on a strategic level and agreements regulate how transmission of energy between the countries should be carried out. On a daily operational basis, SvK and Statnett share the overall responsibility of the entire network in co‐operation with the other TSOs. The electricity consumption in the Nordic countries amounts to around 390 TWh annually, which in absolute numbers is small compared to the UCTE system, which has an annual energy turnover of 2,300 TWh but which makes the Nordic market roughly the same size as the German market. However, considering the relatively small population in the Nordic countries, the electricity consumption per capita is substantial. Hydropower delivers around half of the energy consumed in the Nordic region, even though the production mix varies considerably between the countries in the region. Norway produces ninety‐nine per cent of its electricity from hydropower, Sweden fifty per cent, Finland fifteen per cent and Denmark none. The maximum amount of power needed in the INPS is about 60,000–70,000 MW, depending on timing and climate. The INPS is sorted in subsystems rather than countries, although the borders often coincide for historical reasons. Sweden and Finland both consist of one subsystem each, while Denmark and Norway are divided into several, mainly due to frequently occurring internal bottlenecks. 6. This section has been adapted from Svenska kraftnät (www.svk.se). 7. Interviews were carried out with the following people: Jan‐Erik Hällström (Vattenfall Produktion, 24 May 2006); Olof Nilsson (Vattenfall Produktion, March 2006); Rickard Nilsson (Nord Pool's Stockholm Office, 3 May and 9 June 2006); Daniel Nordgren (Vattenfall Produktion, 25 February, 24 March, 8 May 2006); Fredrik Wik (Balanstjänsten, Svenska Kraftnät 27 April 2006); Bo Wrang (Vattenfall Produktion, 23 February 2006). 8. The database can be obtained by contacting Niclas.broman@vattenfall.com 9. Relative regulation is defined as the amount of regulation as a percentage of load. 10. See Brandberg and Broman Citation(2006) for further elaboration on this. 11. The addition to the spot price (the extra compensation demanded for regulating power) modelling does not have the same correlation as modelling the regulating price itself. This is due to the fact that the correlation between the actual prices for regulating power is determined with zero as a point of reference. An error of 10 SEK/MWh between the modelled and the real price does not have a large negative impact on the correlation when the price level is at, for example, 700 SEK/MWh. The same error of 10 SEK/MWh can have a severe impact on correlation if studying just the addition to spot price. For example, if additions are in the range of 50 SEK/MWh, an error of 10 SEK/MWh gives a lesser contribution to the correlation between the model and reality. The correlation between the additions to the regulating price is 0.58.
The overall purpose of this paper is to analyse how power generation technology choices will be affected by climate policy. Special attention is paid to the dissemination of renewable power technologies following climate policy initiatives in Sweden and Eastern Europe. An overall conclusion is that carbon policy will affect new investments in renewable power technologies in both Sweden and Eastern Europe, but it is difficult to provide a comprehensive assessment of the future power generation technology mix. In the Swedish case, it is suggested that in general it is not certain that compliance with the Kyoto commitments implies substantial increases in renewable power sources. If, therefore, renewable power sources are favoured for reasons beyond climate policy, additional policy instruments will be needed. In the Eastern European case it is indicated that although it is clear that the Eastern European countries are not homogeneous in terms of CO2 abatement potential and costs, no single country emerges as particularly low‐cost. This may have important implications for future JI/CDM activities. For instance, risk factors such as policy uncertainty and institutional obstacles may become crucial in determining the future allocation of JI/CDM projects across the region.
The important role of transmission system operators (TSOs) in the development of the internal electricity market is the main issue in this paper. The key question is how to get the former national entities to broaden their scope, including the values that trade across former ‘closed’ borders may realize. Further, the incentives to take an active part in the ongoing structural change concerning generation are discussed: For example, more wind power in the system may require more generation (and transmission capacity in certain areas as well as generation capacity for regulation). On the regulatory side it is reasonable not only to state a supranational goal, but also to follow it with legislation and a European entity empowered to take action furthering the objectives. This paper attempts to emphasize the importance and tools for changing governance, making it aimed at accommodating a path towards a sustainable integrated European electricity market.
Economic rent is the basic rationale for mineral royalties. Conceptually, royalty is a payment made by the mining lessee to the state (the owner of the mineral) as a consideration for the mineral which the lessee extracts and sells or uses in their own plant. In India, a royalty on major minerals is charged on both a unit of production basis and on an ad valorem (specified percentage of sale value) basis. The royalty on minerals is always a focal point for government as well for industry. Any change in the royalty rate drastically affects the fiscal performance of the mining industry. This paper provides an overview of royalty collection on major minerals in India. An attempt has also been made to compare the rate for calculation of royalty in India with that in selected countries of the world.
Aggregates are granular materials – sand, gravel and crushed rock, in particular. Usually they are not thought of as a hot spot of environmental policy. This paper looks at the most important aspects of the aggregates system throughout Europe and puts it into the wider context of sustainable resource management as launched by the European Commission (2005b [Eurostat] Statistical Office of the European Communities, editor. 2001. Economy‐wide material flow accounts and derived indicators, Luxembourg: EC. A Methodological Guide. ed. 2000 [Google Scholar]) in its thematic strategy (COM(2005) 670 final). Aggregates are important for sustainable resource management chiefly for two reasons:•their material intensity – their relevance for increasing resource productivity in the European Union (EU) as part of the Lisbon strategy and the sustainability strategy;1 1. See: http://ec.europa.eu/growthandjobs/index_en.htm for information on the EU Lisbon strategy, and http://ec.europa.eu/sustainable/for information on the EU sustainability strategy. •their environmental intensity – their relevance for increasing eco‐efficiency and for lowering environmental impacts in the EU.Both dimensions will be looked at in this paper. For understanding those dimensions, the aggregates value chain – the construction material industries, the building industries' outcomes, and the housing sector – is crucial too. The paper sheds some light on aggregates value chains, but does not attempt to provide a full comprehensive view. Distinction is made between direct factors (aggregates themselves and economic incentives for sustainable aggregates management) and indirect factors (downstream environmental and economic relevance of aggregates). It is argued that such a wide life‐cycle perspective will become important for any policies on aggregates. The second section looks at the economic relevance of aggregates throughout Europe in more detail and considers driving forces for the use of aggregates within an economy. The environmental relevance of the aggregates will be reasoned in the third section. Following this, section four looks at existing EU, national and international policies, such as energy and mining policies and taxes that affect or have side effects on the aggregate system. Concluding thoughts are given to the way ahead in the final section.
The material stocks in the anthroposphere are growing faster than ever due to urbanization and growing per capita use. Owing to the growing potential insecurity of raw material supply the evaluation of resources gains increasing attention. Despite growing utilization of anthropogenic deposits, ‘urban mining’ has not yet sufficiently been supported by specific exploration methods. An exploration method for anthropogenic deposits is proposed and described by application to the copper stocks of Switzerland. The method combines material flow analysis with a bottom‐up analysis of material stocks. The stock composition and temporal characteristics are analysed by surveys and literature analysis. The stock amounts to 269±31 kg capita−1 for the year 2000. The retrospective data are used as parameters to construct a dynamic stock model, which is calibrated by historical trade statistics. The potential for drafting scenarios is discussed. The stock situation in Switzerland is reviewed and compared with that of other regions.
Despite, and because of, all the technological progress, mankind is as much as ever dependent on the steady availability of a wide range of natural resources such as air, biological resources, energy, land, minerals, and soils. The enormous and accelerating growth in the demand for these resources recorded during the 20th century is likely to further accelerate during the 21st, driven by continued demographic growth, new technologies and the desire of many as yet underdeveloped, but sometimes highly populated, countries such as Brazil, China, India and others to access the same standards of living as developed countries. Competition for resources was always a powerful driver of both conflicts and of damage to our fragile, life‐supporting environment. In a sustainable development context, humanity needs a well‐distributed economic growth while avoiding negative environmental and social impacts. Intra‐generational and inter‐generational equity are requisites, as well as the careful management of the global environment. This paper focuses on mineral resources issues, as seen from a European, a geological survey and broader sustainable development perspectives, attempting to identify domains where actions are required. There are a number of issues that will shape the future of the EU mineral resources industry, and from there the many downstream economic sectors using minerals and metals: governance, access to land, availability of the technical competences needed by the industry and its related institutions (environmental agencies, geological surveys, mining directorates and inspectorates), research and development, trends in globalization, cooperation with developing countries, environmental impacts, and security of supplies. Factual data and information are needed to better appreciate the mining sector's impact, to support decision makers in their strategic choices, to inform stakeholders, to compare mining with other economic activities and, more generally, to render the debate more objective. EuroGeoSurveys, the Association of the European Geological Surveys, calls for a European Mineral Resources and Metal Strategy. In a context of growing global competition for mineral and other natural resources, and despite their vital importance to the EU economy and to the developing world, mineral resources issues receive insufficient holistic attention in the EU‐level policy debate and policy making. This results in inconsistencies and discrepancies in the implementation of the Lisbon competitiveness strategy, the EU sustainable development policy and the EU development policy. It weakens, rather than strengthens, the competitiveness of the EU minerals industry. The Thematic Strategy on the Sustainable Use of Natural Resources could be a framework for such an EU Mineral Resources Strategy.
