Struggle for competitiveness: An industry perspective for the nineties

"This paper focusses on what seem to be the leading indicators of prosperity in the minerals industry during this decade: the geographical distribution of deposits, environmental impact, capital allocation and acid consumption. There is a potential for meeting environmental criteria at a reasonable profit margin, but those with limited acid demand within economic range will face hard times to meet growing environmental concerns, resulting in additional mine closures. At the other end, those with old waste dumps who are thinking about smelting capacity additions will need capital influx at a much larger rate than ever before. All things considered, a change should be made in the way the world's copper reserves are computed, because there is a growing need to internalize these effects back to the ore blocks before a meaningful estimate of reserves becomes available.IntroductionThe copper industry has undergone several changes during the past decade, many of which were expected to take place because they rel1ect the economics of ageing mines. However, many others took place that shocked the industry because they were not completely under control. The focus of this paper is to rel1ect on those changes, and on market expectations for this decade that somehow depend on their impact.To review the prospects for new mine developments and expansions from an industry perspective to a full extent, it would be necessary to consider not only the deposits themselves, but also geographical constraints, environmental constraints, labour composition, technology development and use, the availability of capital, ownership issues, and integration within the industry. This paper, however, will concentrate on only some of the key elements that are believed to playa major role in shaping the market in the decade that has just begun. These elements, all interconnected, are:"