Review of 1987 international mining activities

Introduction Despite the focus on the so-called "high-tech" and service components of the economy, the minerals industry in 1987 continued to provide the world the overwhelmingly dominant share of the total raw material supply for all manufacturing operations. And, in the form of fertilizers and other soil treatment materials, minerals also supplied indispensable raw materials to ensure continued high production of the agricultural and forestry sectors of the world's economy. Moreover, the role of minerals as a source of construction raw materials was essential to that sector. On the basis of preliminary and partial statistics on world output of crude mineral commodities, 1987 appears to have been a year of further recovery from the recessional years of 1981-1983. The value of world crude mineral industry production (all mineral commodities including fuels) apparently advanced about 5% to nearly $1.1 trillion in terms of constant 1983 dollars.' That is significantly above the recently revised 1986 level of nearly $1.05 trillion, but still considerably below the record-to-date high of $1.27 trillion set in 1980, as shown in Table 1. That growth in value took place despite relatively flat world oil prices - oil being the most important component of the aggregate, as it has been for decades. There is insufficient information available to assess the total value of processed mineral commodities (refined metals, refined oil, manufactured fertilizers and the like). But a figure of $2.6 trillion (constant 1983 dollars) would be a quite conservative estimate for those materials derived only from primary or newly mined materials. And an additional, as-yet-unestimated increment should be added for processed materials derived from secondary raw materials - scrap and other reclaimed substances. From a world trade viewpoint, minerals and mineral products dominate in terms of tonnage. For example, in 1985, on a weight basis, mineral commodities including fuels constituted more than 58% of all goods moving through the Suez Canal and 53% of all goods passing through the Panama Canal. These waterways cannot accommodate giant tankers and ore carriers. So an even larger share of total oceanic trade is composed of minerals and mineral products. Yet, in terms of value, the share of the total accounted for by these industrial essentials is much lower than that accounted for by other commodities, most notably sophisticated high-tech equipment and other goods with a relatively high per-pound value. Worldwide data on the value of mineral export trade for 1987 is so incomplete at this writing that it is impossible to assess that actual level. Indeed, the compilation of similar available data for 1986 covers only the exports of nations with developed market economies. In 1985, these countries accounted for only 67% of total world exports of all goods. They accounted for only 41% of world exports of major mineral commodities: crude nonmetals; metal ores, concentrates, and scrap; mineral fuels; nonferrous metals excluding gold; and iron and steel. For these developed-market-economy countries, the value of exports of these major mineral commodities declined by more than 10% between 1985 and 1986. Most of the shortfall came as a result of a 26% drop in the value of fuels exports. If these patterns of