Scarcity of Geological Minerals

Question: Discuss about the Scarcity of Geological Minerals. Answer: Introduction: Modern industrialisation has created massive demand for scarcest geological minerals such as zinc, antimony and molybdenum. Currently, most limited mineral resources may have become exhausted if the extraction of the scarcest minerals continues to surge. Meanwhile, the increase in demand and production shortfall of the most limited geological minerals can fuel higher prices of the mineral resources. By following the historical trend of the rarest geological minerals, many of mineral resource has faced geological scarcity at the highest level leading the price surge. Meanwhile, the study of Henckens, van Ierland, Driessen, and Worrell (2016) on geological scarcest mineral resources identified how the extraction of the most limited minerals continues to surge in demand leading to exhaustion of the mineral resources. On the other hand, the impact of the same on the relevant metal industry has been evaluated providing distinct evidence. In the discussion, the role of public investment in the mining industry and the government policy on this event has been criticised (Henckens et al., 2016). Understandably, the production of zinc, antimony, molybdenum and other scarcest geological minerals has been cut down to a reasonable limit fuelling massive price surge. Also, the increase of mineral consumption per capita has become another serious issue. Precisely, the scarcity of geological minerals may lead to economic scarcity in developed economies. Global industrialisation has increased the demand of mineral resources at the highest level. Meanwhile, the production of the mineral resources has not been increased according to the demand due to limited resources of scarcest geological minerals. As a result of the scenario, the mineral producing countries such as Australia, USA, and European nations have faced stiff challenges to deal with the situation. Due to lack of production of minerals such as Zinc, Lead, antimony and molybdenum, the price of the commodity has increased radically (Henckens et al., 2016). On the other hand, the metal producing industry, and metal industry have to pay the price for increasing price of scarcest minerals. Due to price surge of minerals, the cost of production of metals such as aluminium, copper, nickel has to be increased creating a direct pressure of inflation. Also, the public investment of mining industry has created the scarcity of the minerals more than ever. Arguably, during the past five decades, industrialisation has caused significant consumption of minerals (Christmann, 2013). The study of the article has been evaluated to identify how substitute procedure can mitigate the issue of scarcity of mineral resources. The downfall in the geological mineral resources has resulted in the fall in supply of various regularly used minerals. It can be seen though research that the production has fallen by around 50 percent, whereas the demand increases on with the development of the manufacturing and metal industry (Bleischwitz and Bringezu, 2008). Hence, the rise in the price of the products is the primary step that has been taken by the metal extracting industry to control the rising demand and falling supply of geological minerals (Christmann, 2013). For example, comparing the price of zinc in February 2015 and February 2016, it can be seen that the price has risen by more than 100 percent. A supply diagram has been presented below for better understanding of the steps taken by the metal extracting industry to meet the challenges of minerals as scarce resource in Australia. Figure: Fall in Supply of Minerals Source: (Avery, 2007) Considering the above diagram, it can be seen that the supply of minerals have decreased in the recent years due to no discovery of new mineral resources in Australia. On the other hand, the demand has kept on increasing due to rise in the production level in all across the globe (Avery, 2007). Hence, it can be seen that the supply curve has shifted towards the left from S to S1 and the demand curve has shifted from D to D1 resulting in rise in a huge rise in the price of minerals in Australia and several other regions of the world (Avery, 2007). In order to meet the crisis of minerals, the government of Australia has undertaken different initiatives and introduced new policies. The Minerals Council of Australia has developed teams to discover new mines for minerals such as zinc, aluminium, copper, nickel and others (Henckens et al., 2016). The team of experts in geological excavation are conducting different researchers and projects to find new sources of minerals in the country. Some of the projects have been initiative in the regions of Queensland, Tasmania and several places in Australia (Henckens et al., 2016). Along with that, the government has introduced a floor pricing policy to maintain a minimum rate in the mineral industry to balance the profitability of the metal extracting companies and metal buyers in the Australian market. On the other hand, the Minerals Council of Australia has undertaken several educational programs to minimise the use of scarce minerals in the country (Bleischwitz and Bringezu, 2008). It ha s been believed by experts that if no new mineral resources are discovered, the stock of scarce geological minerals will be exhausted in the coming five to ten decades. Hence, it is important for the government and common people to use geological minerals in a sustainable manner to keep them available for the future generations (Henckens et al., 2016). Furthermore, the Minerals Council of Australia has started an initiative to develop substitutes of the scarce minerals that are undersupplied in the Australian market. The review of the article has identified how large industrial production in the developed as well as emerging economies has influenced the demand for mineral resources. Moreover, the major supplying countries of the scarcest minerals such as Australia, China, the United States of America, and European countries have not found any substitute for limiting the consumption of the minerals. As a result of the phenomenon, the extraction of scarcest minerals is rapidly surging due to global demand. Therefore, high-quality mineral producing nations such as Australia have faced significant challenges to meet the global demand. Moreover, the cost of production and geological scarcity of mineral resources has been identified as one of the primary outcomes of the event. References Avery, J. (2007).Energy, Resources, and the Long-Term Future. 1st ed. Singapore: World Scientific Publishing Company. Bleischwitz, R. and Bringezu, S. (2008). Global Governance for Sustainable Resource Management.Minerals Energy - Raw Materials Report, 23(2), pp.84-101. Christmann, P. (2013).Mineral resources: should we fear a shortage?. [online] Paristechreview.com. Available at: https://www.paristechreview.com/2013/02/12/mineral-resources-shortage/ [Accessed Nov. 2016]. Henckens, M., van Ierland, E., Driessen, P. and Worrell, E. (2016). Mineral resources: Geological scarcity, market price trends, and future generations.Resources Policy, [online] 49, pp.102-111. Available at: https://www.sciencedirect.com/science/article/pii/S0301420716300861.