Minerals In The World Economy

Although virtually every available indicator of world mineral industry activity demonstrated a gain in 1983 relative to the 2 very poor years of 1981 and 1982, the overall prospects for future years seemed far from bright. There were significant upturns in the quantity and value of mineral commodities produced, traded, and consumed in 1983, and many nonfuel mineral prices advanced, although the price advances in current dollars in most instances barely compensated for inflation. The pattern of investment in exploration and development of new mining ventures and new plant construction reflected virtual industry-wide concern that substantial upturns in demand for mineral commodities in the near future were unlikely, at least for most large volume products. The world oil glut continued despite cutbacks in production, and substantial stocks of many other mineral commodities mitigated against growth in total productive capacity, at least among market economy nations. In these countries, development activity at both mines and plants was confined largely to programs aimed at substituting new, more efficient installations for old, uneconomic or marginally economic plants. Among the centrally planned economy countries, the pattern was somewhat different on the whole, but even there, growth in total productive capacity was evidently somewhat restrained, although it seemed questionable whether the restraint was a function of intentional planning or simply an inability to accomplish planned programs on schedule. International political events, particularly the Iran-Iraq war and the unstable situation in the eastern Mediterranean countries (Lebanon, Israel, and Syria), continued to adversely affect mineral industry activities in those areas. Similarly, the internal and international conflicts in Central America negatively influenced mineral industry operations there. In Afghanistan, it appeared that there was some upturn in the very modest mineral industry operations, but industry activities there undoubtedly continued to be affected by confrontations between the Soviets and the local citizenry.