Mining - Changing Picture In Transitional Economies

Dramatic economic and political reform is under way in the transitional economies of the world. Transition extends beyond the restructuring of a nation's economy and political thinking. It also affects social, cultural and even religious aspects of society. Transition is a long-term process and generally unstable as the pace of reform is rarely the same across the many spheres of society. As nations modify their economies, industrial activities - including minerals exploration, extraction, processing and trade - are also being affected, according to a Financial Times of London management report. Mining policies are being revised to encourage greater foreign involvement, while legal regimes are being rewritten to protect foreign investments. From India to Peru, and South Africa to Russia, countries have been preparing, improving and expanding foreign investment laws, mining codes and economic stimulus measures to accelerate their minerals development. Privatization of mining is proceeding in many nations. Meanwhile, corporatization of former ministries and government agencies responsible for mining is also occurring. According to Minerals and Mining in the Transitional Economies: Poised For the Future, common objectives in the restructuring of a mining industry are to enhance overall economic and industrial growth, improve efficiencies in mineral recovery and use, acquire newer, advanced technologies, reduce environmental repurcussions of mining and improve safety conditions. The nature of mining is changing noticeably within the transitional economies. The industry is becoming more re¬sponsive to market forces and private sector concerns. The new report examines the changing characteristics of mining in the transitional economies. These include nations moving from centrally planned to market economies, as well as countries in the midst of economic and political reform, including the liberalization of industry. Information is presented to help business planners understand the impacts of transition on mining activities and re-evaluate their longterm strategies and market development policies. The document is divided into 10 chapters. Five of them are devoted to the evolving mining industries of Russia, South Africa, India, Peru and China. These countries were highlighted because their minerals sectors are undergoing changes. These include the opening up of their resources to foreign mining companies. According to the report's author, mining in the transitional economies during the next decade will be characterized by: ? Continued rewriting of national mining policies to create more favorable investment climates. ? Increased exploration for gold and selected base metals in newly opened regions. ? Innovative project financing schemes involving multiple partners and international lending institutions, such as the European Bank for Reconstruction and Development (EBRD). ? Increased gold and copper ore production capacity resulting from new investment and expansion of existing operations. ? Continued geographical shifting of metallurgical processing facilities from developed to other mineral-producing nations. ? Privatization of state-owned mining and processing assets requiring advanced technologies for improvement or expansion. ? Increased awareness of environmental concerns in business decisions related to mining and metallurgy.