Mineral Assets Research Articles

Environmental economics of green recovery in mineral extraction: Balancing production and conservation

This study examines data from 1995 to 2021 using self-regressive distribution lag modeling to uncover how mineral wealth utilization influences sustainable development in select Central Asian countries. Our findings highlight a critical challenge: increased mineral asset mining significantly hampers the region's ecological growth, both immediately and over time, due to its detrimental environmental impacts. However, there is a beacon of hope: a 1% increase in hydropower output can elevate the sustainability score by 0.19% in the long term and 0.10% in the short term, showcasing the transformative potential of renewable energy. On the flip side, escalating carbon dioxide emissions pose a serious threat, stalling green financial development through ecological harm and higher healthcare costs. Furthermore, urbanization slightly diminishes the long-term sustainability score by 0.06%. This gives a clear confirmation of the necessity of Central Asian countries to embrace the renovation of the state's vectors for conformism towards the idea of ecological sustainability. The necessary legislative measures, the development of renewable power sources, making natural resources trading more effective and integrating eco-friendly finance to support green projects will help the region chart its course toward a sustainable and prosperous development.

A KNETSCH PROPOSITION AND A DUE PROCESS FOR THE EVALUATION OF MINING PROJECTS IN ECOLOGICALLY SENSITIVE AREAS: AN ILLUSTRATION THROUGH TWO AUSTRALIAN CASE STUDIES

Drawn on some Knetsch observations, this paper illustrates a due process for the economic evaluation of mining projects that impact sensitive and irreversible ecological assets. Towards this end, two case studies of coal mining projects in Australia are considered — one on the Liverpool Plains in New South Wales and the other on the Galilee Basin in Central Queensland. The adverse environmental and social externalities of these projects are well known — especially the impacts on the Gunnedah and the Great Artesian Basins. Notwithstanding these impacts, which are exceedingly difficult to value, private financial analyses demonstrate significant revenue gains. Mining firms find such gains difficult to ignore. Nevertheless, economic analyses illustrate that the net benefits to Australia are possibly absent even without accounting for the costs of environmental social externalities. Given that the property rights of the mineral reserves are vested with the State, the Resource Rent Tax (RRT) becomes a legitimate fiscal policy tool. The paper argues that the assessment of mining decisions must account for the depreciation of the Mineral asset. When this depreciation is measured alongside the Hartwick–Rule, the mining projects demonstrate monetary viability only when the RRT is enforced and is invested in its entirety on options that generate annual returns in excess of 3% to 4%. If recognized, the costs of environmental and social externalities could readily wipe out this, and for that matter any, monetary viability owing to the irreversible nature of the natural social endowments.

Trend of critical minerals utilization for Indonesia’s Sustainable Energy Transition: A review

The European Union calculates supplies of essential minerals using an economic significance index, a supply risk index and an environmental risk index. The U.S. Geological Survey uses three indicators to assess critical mineral risks in the country: foreign ownership of mineral assets and activities, trade dependence, and indirect trade dependence. Indonesia has a history of strong mineral production, and new prospects in the critical minerals sector are developing rapidly. Positioned as a major producer of nickel, the main component of lithium-ion batteries used in electric cars. This supports technological innovation that can improve infrastructure and support sustainable development, which is in line with SDG 9. Indonesia is increasing its capacity to produce other important minerals, such as rare earth elements and cobalt, in addition to nickel production. This research uses the literature study method. The aim is to review the development of essential minerals towards sustainable development.

Mineral resource sustainability in the face of the resource exploitation and green recovery: Challenges and solutions

China's mining sector faces a pressing need to align profitability with eco-friendly resource extraction for sustainable development. Our study delves into the pivotal role of Renewable Energy Technology Innovation (RETI) in enhancing resource efficiency within this context. Analyzing data spanning 40 Chinese regions from 2000 to 2021, our research uncovers notable regional variations in RETI's impact on mineral resource sustainability. Rigorous validation measures, including addressing outliers and utilizing instrumental variable techniques, ensure the robustness of our findings. Specifically, RETI emerges as a catalyst for improving green mining resource efficiency in the Midwest and West regions but exhibits no parallel effect in the East. Crucially, the influence of RETI is intricately tied to changes in economic and human capital, offering valuable insights to expedite its adoption and optimize mineral asset sustainability in China's mining sector. This research contributes essential perspectives to propel the sector toward environmentally conscious practices and underscores the significance of adapting to cleaner energy sources for long-term viability.

What drives shareholder returns in mining companies?

The mining industry has a long history of generating low shareholder returns. Over the past two decades, the average Canadian mining company has returned −8% per year, while the TSX composite index returned +7% per year. Prior studies indicate these low returns are driven primarily by volatile commodity prices and thus largely out of managers’ control. However, this research relies on small samples over short periods of time. To assess more robustly the distribution of shareholder returns across mining firms and to identify the relative impact of price versus other firm-specific factors on firm-level returns, we analyzed the performance of over 100 Canadian mining companies from 2003 to 2016. We find that commodity prices explained the majority of firm performance annually, but that over the long-run, mineral asset impairments had a much more significant influence on performance. Firms that significantly overperformed the industry experienced minimal impairments while firms that significantly underperformed experienced very large impairments. To deliver superior returns, it seems that mining firm managers and investors need to understand how to minimize impairments.

Words of Weather: A Glossary

Words of Weather: A Glossary

Appraisal of Engineering Phases of a Mineral Asset: From Exploration to Mine Approval

It is well known that the most common methodology for evaluating a mineral asset is the NPV. Most of the mining companies employ this technique for evaluating the expected economic benefits provided by the exploration and exploitation of a mineral deposit. However, companies also wish to know how their assets are creating value through the several exploration and development phases. The purpose being to assess the progressive value of the mineral asset in agreement with the information and data cumulated through the different steps from exploration to project approval. This paper establishes the value of a copper mineral deposit through their successive phases from exploration to feasibility and approval using the options’ binomial nodes framework. Results are applied to two copper negotiations for method validation.

Analyzing the Concept of Corporate Sustainability in the Context of Sustainable Business Development in the Mining Sector with Elements of Circular Economy

Promoting the concept and principles of sustainable development at the micro level requires that industrial companies understand and improve approaches to managing corporate sustainability. Currently, economics does not provide a universal definition of what corporate sustainability is. With regard to the mining sector, corporate sustainability issues reflecting the viability, value, and sustainable development potential of companies have not yet been studied extensively. The article discusses the conceptual foundations of corporate sustainability; the characteristics and a classification of approaches to defining corporate sustainability; and the relationship between corporate sustainability, sustainable development at the micro level, and circular economy. By analyzing the example of Russia, the influence of the mining industry on the environmental, economic, and social development of both a country with a resource-based economy and individual mining regions is shown from the viewpoint of sustainability. The distinguishing features of mining companies, which include natural capital and mineral assets, are studied in the context of promoting corporate sustainability. It is proven that the effective corporate management of ESG factors results in environmental and social influence that goes in line with sustainable development requirements and serves as a foundation for corporate sustainability. A refined definition of corporate sustainability has been formulated, the specific features of corporate sustainability management in mining companies have been determined, and the specific features of corporate social responsibility have been studied. The issue of integrating circular economy elements into the corporate sustainability concept is discussed, and it is claimed that the inclusion of circular business models in the corporate strategies of mining companies will contribute to their corporate sustainable development and boost their contribution to the achievement of sustainable development goals.

Effect of Processing on the Nutritional Quality of Ilex paraguariensis

Ilex paraguariensisA.St.-Hil. (IP) is a South American plant. IP-dried leaves have been consumed in the form of infusion by indigenous peoples since pre-Hispanic times. In recent years, IP has gained many beverage markets and new ways of consumption, reaching the category of a global consumer product. A side consequence is the increase in IP crops for the specification of human consumption. This situation is the driving force for the investigation of new uses of IP, including feed supplements for livestock and functional food for human consumption. A deep understanding of the influence of processing on the nutritional value of IP is crucial for the development of these alternative products. It is known that the quality and quantity of nutritional compounds occurring in IP depend on the origin, plant condition, and harvest time. However, the effects of the drying method of the leaves and the ageing time of dried leaves on the final IP products deserve further investigation. The present work presents the variation of the nutritional, digestibility, energy, and mineral assets of IP submitted to three different processes: open-air dried and crushed; dried under direct fire and grounded; and dried under direct fire, grounded, and aged for 6 months under controlled conditions. The presence of agrochemical residues and antinutritional factors were also studied. Processing widely influenced the nutritional and digestibility assets of IP leaves. The inorganic content (K, Mg, Ca, P, Zn, B and Fe) significantly varied among leaves treated using different processes. IP samples dried in open air resulted in the highest % of crude protein, Mg, K, S, and Mn. IP samples dried under direct fire resulted in the highest % of carbohydrates and Fe. IP samples dried under direct fire and aged for 6 months resulted in the highest % of digestible matter, Ca, P, Zn, and B. The results also showed quality protein levels between 10.03 and 19.06% of dry matter. The digestibility values showed that IP leaves are suitable for human functional foods and for enriched supplements for livestock feeds. No traces of agrochemicals or antinutritional factors were found.

International Taxation of Offshore Indirect Transfers of Mineral Assets: Legal Analysis Considering the Principle of Fairness and Sustainable Development

This article evaluates the current international tax regime that is applicable to gains on offshore indirect transfers (OITs) in the mineral industries against the concepts of fairness and sustainable development. It is first argued from a legal perspective that these two concepts encompass the principles of equality and legal certainty. Article 13(4) of the OECD (Organization for Co-operation and Development) and UN Model Tax Treaties and Article 9 of the Base Erosion and Profit Shift (BEPS) Multilateral Instrument for tax treaties are subsequently analysed to determine to what extent these provisions contribute to supporting tax equality among businesses and between countries as well as promoting legal certainty for both the taxpayers and tax authorities. It was determined that the structuration of mining operations in the form of joint ventures may pose particular challenges, including difficulties in valuing mineral assets or determining the sources from which interests derive value. In this respect, the inclusion of certain exceptions in Article 13(4) of tax treaties is proposed. One such instance could be the exclusion of the scope of the provision of gains made by alienators that hold a certain level of participation. The authors conclude that each country should determine whether to tax such capital gains, taking into account its own specificities and examining the tax system in its entirely. However, the current tax regime is a positive step forward towards fairer taxation and contributes to the fulfilment of specific sustainable development goals (SDGs), at least from the perspective of developing countries. Fairness, legal certainty, tax equality, offshore indirect transfer, sustainable development, tax avoidance, mineral industries, developing countries

Recent evolutionary trends in the production of biofuels

Substitutes for fossil fuels or petroleum-based diesel have comparable addresses to monoalkyl fatty acid esters or methyl ethyl esters (biodiesel) and might lessen carbon footprint and greenhouse gas emissions. Biodiesel may be made from renewable and sustainable ingredients consisting of vegetable oils and non-poisonous to the ecosystem. The manufacturing of biodiesel with renewable feedstocks and enzymes as catalysts can be supported commercially; however, studies into enhancing performance may be beneficial. Biodiesel gives a sustainable possibility to address the socio-economic and sustainable fuel problems. For competitive biodiesel, massive studies have been focused on growing new and sustainable biodiesel manufacturing technology to enhance productivity. Recently, fourth-generation biofuels (FGBs), genetically modified (GM) algae biomass, have attracted much interest from educational and business communities. However, changing FGBs with mineral assets stays fraught with many demanding situations. In particular, the technical elements of genetic engineering features want to be specified. However, little or no interest has been paid to GM algae biomass. Algal Genetics has a restricted quantity of development views and demanding situations dealing with FGBs. The fourth-generation biofuel concentrates on improving the microorganisms genetically. Although, in the primitive grade, the last two generations of biofuel require genetic change for the more like-suited in yielding a high-quality amount of green diesel. The aim is to define four generations with the most recent developments. This paper consists of the current production strategies of biofuel and the improvement efforts significant for third and fourth generations, mainly a genetic exchange of algae or bacterial strains and co-cultivation of several microorganisms.

КАПИТАЛИЗАЦИЯ МИНЕРАЛЬНЫХ РЕСУРСОВ КАК ИННОВАЦИОННАЯ ЭКОЛОГИЧЕСКАЯ СТРАТЕГИЯ

The paper presents issues of evaluation objects of subsoil usage and reflecting information of mineral assets for oil and gas companies. Estimation of the objects in the mineral resources sector is regulated by IFRS 6 «Exploration for and Evaluation of Mineral Resources», Russian Financial Standard, US GAAP and other normative documents. The authors` idea is to capitalize costs connected with the stages of geological exploration process, what is considered as an innovative component. Concepts of natural and environmental capital are overviewed. Different classifications of reserves and mineral resources of various categories of oil and gas are analyzed. The results of the study show that capitalizing reserves as mineral assets in oil and gas companies is possible and economically profitable.

Who is a Competent Person?

SAMREC (The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves) Clause 7 notes that 'Documentation detailing Exploration Results, Mineral Resources and Mineral Reserves from which a Public Report is prepared must be prepared by, or under the direction of, and signed by a Competent Person.' Similar statements with respect to Competent Valuators (CVs) and Qualified Reserves Evaluators (QREs) are contained in the SAMVAL (South African Code for the Reporting of Mineral Asset Valuations) and SAMOG (South African Code for the Reporting of Oil & Gas Resources) codes respectively. What does it mean to be a Competent Person (CP) in the context of compiling/signing-off on SAMCODE (South African Mineral Code) compliant documents? What do the registration and experience requirements mean? Who is ultimately responsible for the report and what does such responsibility prescribe?

Mineral Resource Depletion Assessment: Alternatives, Problems, Results

The depletion of non-renewable natural resources (primarily mineral and energy resources) and its assessment is a problem that is analyzed based on the concept of sustainable development. Mineral resource depletion assessment is particularly important for resource-based economies. It provides for assessing the impact of mineral asset disposal that results from the suspension or termination of operations conducted by a mining company due to insurmountable circumstances. The results of such an event will be manifested at the national, regional, and local levels and felt by mining companies, suppliers, workers, the population of the territory, and other stakeholders. The study clarifies the attributes and essence of mineral resource depletion, analyzes the advantages and limitations of the existing tools for assessing mineral resource depletion, identifies depletion factors, describes a methodology for assessing mineral resource depletion, and contains a case study of a tin deposit. The results of the study contribute to the development of the theory on the depletion of non-renewable natural resources. They provide for assessing losses to social wellbeing that can be caused by stopping the use of profitable mineral reserves.

Методологические основы оценки минерально-сырьевого потенциала: международный и российский опыт

Тhe paper considers the main approaches to the valuation of mineral deposits. The valuation of mineral resources is widely used in countries with developed mining industry, such as the USA, Canada, Australia, etc. Monitoring the value of mineral assets allows you to track current changes in their structure and serves as a basis for the fair withdrawal of mining rent. The methods of financial and economic evaluation of mineral deposits are based on the standard methodology for investment projects assessment. The most widely used is the net present value method, which is used only for the estimation of commercial reserves. The resource assessment can be carried out using comparative methods and be used to improve the infor-mativeness of the assessment. The paper reviews the methods used to access the mineral resource potential of Russian regions, forms of statistical observation, and standards of the Russian Society of Appraisers. Contemporary Russian legislation in the field of mineral raw material valuation is based on international experience, where the main valuation method of mineral assets is the method of net present value. With the approval in 2017 of the statistical form "Information on the current market value of mineral reserves”, official annual data on the value of mineral raw materials in the subsurface appeared in Russia for the first time. The methodology for assessing the mineral resource potential of the region should include such stages as ranking mineral deposits according to their investment attractiveness, evaluating selected deposits with approved reserves using the net present value method with determining the budget efficiency of projects, and evaluating the gross potential value of resources of promising mineral resource objects.

Study of Effective Environmental Engineering Impact Assessment on Coal Mining Projects

The mineral asset abuse assumes a significant function in monetary turn of events, yet it additionally causes numerous natural issues, particularly environmental issue. In coal mining, so as to accomplish feasible utilization of these assets, we should give exceptional consideration to eco-ecological insurance. This article first quickly presented the current status of natural designing effect evaluation and afterward talked about the time viability of appraisal through the investigation of its present status, utilizing ecological security check and acknowledgment in coal mining ventures. The creators consider that one-time evaluation of ecological effect on the coal tasks and "three synchronous" acknowledgment of the coal ventures executed in china as of now isn't sensible.

Understanding the government's attempt to transform attitudes towards a critical resource: Gold monetization in India

We examine the Indian government's attempts to transform consumer attitudes towards a critical mineral asset in order to bring a part of 25,000 tonnes of privately held gold back into economic circulation through the Gold Monetization Policy of 2015. Using a multi-method approach, we explain how the policy potentially reduced consumer access to an important resource through a flawed attempt at changing deeply entrenched habits, combined with a set of network issues in policy implementation. A nation-wide survey of 1200 households validated observations on gold consumption. Expenditure data from national household survey highlighted the aggravating role of customs such as dowry. 14 interviews with banks and refiners clarified that banks would promote gold monetization when accompanied by additional process control and effective risk mitigation. We conclude that implementation of a minerals policy involving end consumers and a set of other stakeholders requires deep understanding of consumer attitudes and tailoring of the policy towards stakeholder incentives.

A novel economic-filter for evaluating sub-Saharan diamondiferous kimberlites

SYNOPSIS Because of their high degree of geological complexity, kimberlite-hosted diamond deposits are exceedingly difficult to evaluate for economic viability. Accordingly, standard mineral asset evaluation protocols (e.g., the Cost-, Market-, and Income Approaches defined in the SAMREC Code) may not hold sufficient predictive abilities for these deposit types, especially at the early stages of exploration. Here we present a novel tool, a cost filter approach towards preliminary evaluation of economic viability of southern African kimberlite-hosted diamond deposits, using the AK6 and BK11 diamond deposits from the Orapa diamond field as case studies. The development of this cost filter is underpinned by elements of both the Market Approach (i.e., comparisons to similar deposits) and the Income Approach (i.e., use of net present value (NPV) calculations) for mineral asset evaluation. Importantly, the cost filter is constrained through modification of only two primary variables (the average diamond value and the diamond grade) and thus differs significantly from other cost filters that rely on estimation and assumptions for every parameter input into an NPV calculation. The cost filter correctly predicts the sub-economic status of the BK11 diamond pipe, and is thus presented as a useful geo-economic tool for early stage kimberlite evaluation within the local southern African context. The approach and its theoretical underpinning foreseeably hold vast potential for use in the economic evaluation of other ore commodities, particularly where socio-economic and political risk factors can be negated by employing a geographic constraint. Keywords: diamond, economic viability, kimberlites, southern Africa, cost models filter.

Fully armed: Is the application of the arm’s length principle the best method to address transfer mispricing in the mining industry in developing countries?

Tax revenue in developing countries has the potential to reduce poverty and strengthen the social contract between government and citizens. The mining sector in developing countries can represent one of the most significant opportunities for the generation of domestic revenues. However, due to their dependence on corporate income tax, developing countries are the most vulnerable to transfer mispricing. The ‘Arms Length’ Principle has been proposed as the international standard to address transfer pricing. This paper evaluates the practical implementation of the‘Arms Length’ Principle method in developing countries for mining transaction and compares it with several alternative methods. These methods include ‘the sixth method’, Global Formulary Apportionment, Safe Harbours and Advanced Pricing Agreements. The paper illustrates the challenges of using relevant domestic comparables, the capacity to administer the ‘Arms Length’ principle, and the dependence on receipt of a large amount of information. The study illustrates the importance of a method which aligns profit with the economic activity which produced that profit while ensuring that developing countries are practically able to implement the technique with complex industries such as mining. The paper argues that the use of alternative methods, such as Safe Harbours and Advanced Pricing Agreements, in conjunction with the ‘Arm’s Length Principle’ would support countries to realise the opportunities for domestic revenue from their mineral assets. The paper also argues for the use of the sixth method for transactions involving finished products.

Investigation on Producing the Flux Cored Wire Modified with Concentrated Complex from Tomtor Mineral Assets

Multiple use of pan concentrate from placer deposits directly in technical process without prealltoment of pure components could become one of promising directions in the field of receiving wide range of multicomponent metal and ceramic powdered materials. In this paper as the object of comparative examination, we present the hemimethylated plating made of exploited experimentative flux cored wires based on industrial Ni-Cr-B-Si system powder modified with rare-earth elements of concentrated complex from Tomtor mineral assets Republic of Sakha (Yakutia). The structure of received plating is heterogeneous and has oxidation coating as boundaries. According to the data of the phase shift analysis plating predominantly consist of Fe-Ni austenitic alloy phases with the Cr, Si carbide and Cr boride precipitation strengthening, plating generally consist of Al2O3, Cr2O3 и Fe2O3 oxide. The research of the plating ultimate composition testifies the equable allocation of main and alloying elements, local location of some elements in the structure of the plating. Microhardness of flux cored wire plating substantially depends on composition and fabricated structure. It has been established that the introduction of rare earth elements provided the formation of strengthening phase with the high hardness of plating resulting in wear resistance increase.