State Companies In International Industrial Minerals Trading - 1. Introduction

The role of governments as a factor in the international non-metallic minerals industry can take several forms. Classically, the government acts as a taxing agent, collecting part of the economic rent on behalf of the country from private-sector mine operators. In addition to its taxation policies, the state can and does provide the practical commercial framework of regulatory and fiscal incentives and restraints that shape the activities of the mining firms. In addition to its functions as an agent of the public interest, the government can choose to take a more direct stake in the mining industry, and has done so in the instance of several industrial minerals that are actively traded on world markets. In this paper, the actions of three governments are reviewed and the consequences of their actions are examined.