Mineral Resources of the World

Mineral Resources of the World

The aim of this report is to describe different opinions related to the existence of mineral resources on Earth and to the way these are exploited. We shall try to present the point-of-views of both sides and also draw an objective conclusion in the end related to the trends in the field and the future of minerals in the world.

The minerals are solid, or more rarely, liquid substances, composed out of one or more chemical elements that are incorporated in different rocks and ores. According to their content, the mineral resources can be classified in two categories: metallic mineral and non-metallic minerals (salt, gypsum). The mineral elements are crucial for economic agents and governments. First of all, mineral elements are mined, processed and later on sold on domestic and international markets for profit. On the other side, governments earn an important source of revenues from granting exploitation rights and from the taxation imposed on the companies involved in the mineral industry.

Scientific articles on the topic of mineral resources

Some theoreticians have observed and noted the increasing demand for all materials (Cawthorn, 2007). According to Cawthorn, quoting Cohen's theory, verified by basic economic principles, the mineral elements market is characterized by a limited supply, as the natural resources are shrinking. The economic principles state that the price of the commodities must reflect the increase in demand, and therefore increase, so as to handle the scarcity issue of natural resources.

There is heated debate on the duration of mineral resources lasting. The estimations are based on two pillars: the annual consumption that is generally known for most mineral products and existent resources - both found and unidentified, which are impossible to estimate mainly due to large investigation costs. The official U.S. Geological Survey monitors the exact mineral resources, the database being continuously updated with the annual consumption figures, new mineral deposits found.

Academic, specialists and officials claim that global mineral resources are not limited, but the Earth is continually accumulating new resources. The reason behind the apparent shortage of minerals, and generally of all commodities (petroleum, natural gas, coal, and so on) is the corporate interest of using this artificial situation to enable the profit creation, for the company and its shareholders. The mining industry is estimated to possess raw materials for a maximum period of 20 years. Another example is platinum, subject again to Cohen's theory, that declares that 90% of world reserves are concentrated in only one location - Bushveld complex in South Africa, so new discoveries and possible manufacturing changes are virtually impossible. Also the article stipulates that on average the platinum and gold mines have a depth of 4 kilometers, while in South Africa the depth is only 2 kilometers. This is clear evidence that producers do not have the motivation to continue the investments for exploring purposes, due to the profit maximization purposes.