User:HayCl00/Mineral economics

Mineral Economics [′min·rəl ‚ek·ə′näm·iks] mineral of commercial value. Is specially concerned with the analysis and understanding of mineral distribution as well as the ‘discovery, exploitation, and marketing of minerals’ ("mineral economics", 2022).

Mineral economics is an academic discipline which constructs policies regarding mineral commodities and their global distribution (Eggert, 2008).

This discipline examines the success and the implications associated with the mining industry and the impact the industry has on the economy (Gordon & Tilton, 2008). Mineral economics is an evolving field which started after the Second World War and has continued to expand in todays modern climate (Gordon & Tilton, 2008). The identification of mineral sectors and their associated total revenue from specific commodities and how this varies across countries is significant for global trade and fecundity (Guerin, 2020). Australia is a leading export in several mineral commodities thus providing a substantial percentage of revenue within the Australian economy ("The minerals sector", 2022). The sustainability of the mining industry is also a key focus and how its direct impact on the environment must be monitored and necessary parameters applied ("Sustainable Development and the Australian Minerals Sector", 2022).

The history of mineral economics
Mineral economics did not become an academic discipline until after the second world war, with the majority of current research being completed in other disciplines and fields (Gordon & Tilton, 2008). Although mineral economics has continued to develop since the 1940’s by recognising the demand of such mineral commodities and the increase seen in trade globally (Eggert, 2008).

From late 1980’s to early 1990’s the demand of such mineral and metal commodities was minimal, with the perception of ’low rates of economic growth’ and ‘decline metal intensity of use’ the mineral economics sector was at risk of a ‘long-term decline’ (Eggert, 2008).

During the 1990’s, economic transition became increasingly relevant across the globe (Eggert, 2008). The proposal of foreign investment and trade, initially in response to the perceived ‘long-term decline’, promoted the demand of mineral resources and in doing so enhanced todays associated revenue of the sector (Eggert, 2008).

Sustainability concerning mineral economics was first introduced and discussed in 1993 (Eggert, 2008). Sustainability within the mineral sector concerns the following criteria; commercially viable, consistent with social preferences for the environment and acceptable social consequences (Eggert, 2008).

The mineral economics sector in Australia
Mineral resources are an increasingly valuable commodity within Australia’s mining and mineral sector (Gordon & Tilton, 2008). Australia’s largest exports include ‘coal, oil and gas, metals, non-metals and construction materials’, and their mass distribution accounts for a substantial revenue into the Australian economy ("The minerals sector", 2022).

The mineral economic sector influences government policies ultimately having systematic implications for the sectors overall success and performance (Davis, 1998). The mineral economic sector has limiting factors despite the precedented revenue, specifically oil producing nations regarding ‘debt, deficits, inflation and an inefficient public sector’ ("Mining's economic contribution not as big as you might think", 2022).

Consequently, the economic growth seen globally congregates the mineral sector to construct policies and procedures to predict both economic growth and depletion, as well as ensuring socio-economical viable policies. Such policies also alleviates limiting factors previously mentioned, while also providing the opportunity for trends and associated revenue to be predicted and analysed which offers the potential to provide additional structures of parameters to limit inflation and deficits within the sector (Mainardi, 1997).

The Australian economy and its contribution
The mineral sector is a major contributor to the Australian economy, specifically regarding its profiting revenue. The Australian mineral sector contributes ‘8 per cent of Gross Domestic Product’ into the economy ("The minerals sector", 2022). Australia’s exportation of black coal, iron ore, alumina, lead and zinc is identified as the largest global distributer ("The minerals sector", 2022). Mineral commodities and their distribution does not only provide profit to distributers but also offers support socio-economically (Mainardi, 1997). The Australian economy and its leading distributer status, also promotes revenue in worldwide trade through export and relations ("The minerals sector", 2022).

Despite this associated contribution, the mineral sector is ‘capital intensive’, relying heavily on machinery, which ultimately only supplements ‘2% of jobs’ within the mining sector, having minimal impact on overall economic benefit ("Mining's economic contribution not as big as you might think", 2022).

Foreign trade revenue attains contradictory elements also, due to the foreign stakeholders associated within the mining industry and their affiliated revenue, limiting overall economic value for Australia ("Mining's economic contribution not as big as you might think", 2022).

Sustainability concerns
In today’s current climate, concerns are present regarding the sustainability of mineral resources (Guerin, 2020). While the mineral sector provides a substantial income into the Australian economy, mineral economics has established concerns effecting the endurance associated with mineral exportation and its associated income (Guerin, 2020).

The identification of such sustainability concerns, in relation to different sectors has been heavily discussed in recent years ("Sustainable Development and the Australian Minerals Sector", 2022). Aspects such as climate change as well as the production and distribution of mineral commodities within the mining and mineral sector have been determined as significant in relation to concerns of mineral economics ("Sustainable Development and the Australian Minerals Sector", 2022). More specifically regarding proposed literature, introducing such protocols and to ultimately promote and sustain funding ensures such sustenance and success within the sector. Such policies which are implemented while also ensuring necessary parameters are outlined and complied with, ensures the longevity and future of mineral commodities and their distribution.