Florian Fizaine - Mineral Resource Economics 1

1 Cover

2 Title Page SCIENCES Energy , Field Directors – Alain Dollet, Pascal Brault Raw Materials and Materials for Energy , Subject Heads – Olivier Vidal and Frédéric Schuster

3 Copyright First published 2021 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc. Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address: ISTE Ltd 27-37 St George’s Road London SW19 4EU UK www.iste.co.uk John Wiley & Sons, Inc. 111 River Street Hoboken, NJ 07030 USA www.wiley.com © ISTE Ltd 2021 The rights of Florian Fizaine and Xavier Galiègue to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. Library of Congress Control Number: 2021935806 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN 978-1-78945-024-8 ERC code: SH1 Individuals, Markets and Organisations SH1_12 Agricultural economics; energy economics; environmental economics PE10 Earth System Science PE10_10 Mineralogy, petrology, igneous petrology, metamorphic petrology

4 Introduction I.1. Why are mineral resources important? I.1. Should we fear a new mineral jump caused by the decarbonation of energy? I.1. Systemic mechanics associated with multiple corollaries: insights provided by interdisciplinarity I.1. References

5 PART 1: Background 1 Assessment of European Demand for Mineral Resources by Material Flow Analyses: The Case of Cobalt 1.1. Introduction 1.2. Cobalt market: structure and operation 1.3. A method combining value chain analysis and material flow analysis 1.4. Results of and discussions on cobalt flow analysis in the European Union 1.5. Conclusion 1.6. Appendix: quantities of cobalt contained in primary and refined streams, recycling rates, and cobalt waste management 1.7. References 2 Financialization of the Minerals and Metals Market: Origin, Challenges and Prospects 2.1. Introduction 2.2. Dynamics of financialization: understanding the heterogeneity of the minerals and metals sector 2.3. Effects of financialization: from price dynamics to value chain change 2.4. Conclusion 2.5. References 3 Geopolitics of Metals: Between Strategies of Power and Influence 3.1. Introduction 3.2. Natural resources doctrine 3.3. Abundant, sensitive, critical, and strategic metals 3.4. Competitive consumption 3.5. Proliferation of “unobtanium metals” 3.6. Strategy of influence, strategic stock, and exploration 3.7. Conclusion 3.8. References 4 Mineral Wealth Endowment, a Construct 4.1. Introduction 4.2. Mineral endowment, an attempt at clarification 4.3. Unequal distribution of resources 4.4. Discussion: building mining endowment 4.5. Conclusion 4.6. Acknowledgements 4.7. References

6 PART 2: Issues 5 Modeling the Long-Term Evolution of Primary Production Energy and Metal Prices 5.1. Introduction 5.2. Relationship between concentration and production energy 5.3. Equivalence between energy and price 5.4. Technological improvement and evolution of production energy and metal prices over time 5.5. Application to copper primary production 5.6. Application to nickel, aluminum, silver, and gold 5.7. Conclusion 5.8. References 6 Environmental Footprint of Mineral Resources 6.1. Introduction 6.2. Notion of environmental footprint 6.3. Principles of input–output analysis 6.4. Towards IOTs extended to the environment 6.5. Calculation of environmental footprints of metals by MRIO analysis 6.6. Conclusion 6.7. References 7 Why Should We Fear Energy and Material Savings? Deconstructing a Sustainability Myth 7.1. Introduction 7.2. Conceptual critique of the “eco-efficiency” principle 7.3. Rebound effects or unintended consequences of “producing more with less” at the macrosystemic level 7.4. Conclusion 7.5. References 8 The “Resource Curse” in Developing Mining Countries 8.1. Introduction 8.2. How to take into account the contribution of exhaustible resources to sustainability and measure the “resource curse” 8.3. Mining activity and the “resource curse”: macroeconomic and sectoral issues 8.4. Mining income: an unstable and toxic income for States 8.5. Is the “resource curse” inevitable? 8.6. Conclusion 8.7. References 9 Industrial and Artisanal Exploitation of Natural Resources: Impacts on Development 9.1. Introduction 9.2. Impacts of industrial extraction 9.3. The case of artisanal mines 9.4. Conclusion 9.5. Acknowledgements 9.6. References

7 Conclusion C.1. Mineral resources issues, object of human representation C.2. Some enlightenment regarding physico-socio-economic feedback C.3. References

8 List of Authors

9 Index

10 End User License Agreement

1 Introduction Figure I.1. Material footprint of various power generation production systems (s... Figure I.2. Metal footprint per kWh by type of power generation system (source: ... Figure I.3. Share of metal footprint of the electricity sector by power generati...

2 Chapter 1 Figure 1.1. Cobalt mining and refining in 2018 (based on Darton Commodities (201... Figure 1.2. Change in cobalt consumption between 2009 and 2018 (%) (based on Ros... Figure 1.3. Production of refined and semi-refined cobalt, by product type (acco... Figure 1.4. Multi-linked cobalt value chain. For a color version of this figure,... Figure 1.5. Changes in import prices of intermediate products and refined produc... Figure 1.6. Material flow analysis for cobalt in the EU in 2017 using STAN softw... Figure 1.7. Structures of cobalt imports (a) and exports (b) in the form of ores... Figure 1.8. Production of finished and semi-finished products containing cobalt ... Figure 1.9. Imports (a) and exports (b) of finished and semi-finished products c... Figure 1.10. “In-use stock” of cobalt, 2008/2017 (tons). For a color version of ... Figure 1.11. Main EU suppliers (a) and customers (b) for primary, intermediate, ...

3 Chapter 2Figure 2.1. Comparative evolution of iron ore and base metal prices (index, base...Figure 2.2. Changes in LME cobalt forward prices (three months) (USD per metric ...

4 Chapter 4Figure 4.1. Change in R/P ratio (based on Schodde (2010) and USGS (1998–2018)) Figure 4.2. Change in R/P ratio for copper by country (USGS 1998–2018). For a co...Figure 4.3. Variation in tin R/P ratio by country (USGS 1998–2018). For a color ...Figure 4.4. Distribution of copper mining endowment (copper reserves by country ...Figure 4.5. Two large deposits that were the largest copper producers in their t...Figure 4.6. Distribution of tin mining endowment, position of some major world d...

5 Chapter 5Figure 5.1. Minimum metallurgical (Em), separation (Es), and mining plus comminu...Figure 5.2. Production energy calculated with equation [5.7] as a function of th...Figure 5.3. Production energy calculated with equation [5.7] as a function of 20...Figure 5.4. a) Correlation between the energy calculated with equation [5.8] and...Figure 5.5. Price (a) and production energy (b) calculated as a function of the ...Figure 5.6. Calculated energy of copper production over time (a) and average ore...Figure 5.7. Calculated price of copper over time (a) and ore grade (b). The grey...Figure 5.8. Observed (blue curves) and calculated (black curves) prices. For a c...

6 Chapter 6Figure 6.1. Diagram of the INSEE IOT. MC: transport and commerce margins; com.tr...Figure 6.2. Representation of MRIO databases Figure 6.3. Distribution of world metal production for final consumption in Fran...Figure 6.4. Distribution by country of metal production required for final deman...Figure 6.5. Distribution by country of metal production required for French fina...