L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...
L. Fituni, I. Abramova Resource Potential of Africa and Russia's ... L. Fituni, I. Abramova Resource Potential of Africa and Russia's ...
vately owned. The leading enterprises in the nonferrous metals sector included RUSAL for aluminum and MMC Norilsk Nickel for cobalt, copper, gold and other byproduct metals, nickel, and PGM. In the ferrous metals sectors, the major metallurgical enterprises were “EvrazHolding Group Ltd”., Holding Company “Metalloinvest”, “Mechel” Steel Group, OJSC (Open Joint Stock Company) “Novolipetsk Steel” Co., OJSC ‘Magnitogorsk Iron and Steel Works”, and “Severstal” enterprises. For assessing the developmental efficiency of resource base use in Africa and Russian we have to appraise the levels of their respective self-reliance and self-sufficiency in various kinds and categories of natural resources. For such purposes the existing natural resource base (NRB) is usually divided into three groups: relatively satisfactory, problematic, and critical. The basic differentiation criterion would be the degree the particular kind of natural resources ensure the expansion and development of the resource base as whole, on the one hand, and the achievement of domestic developmental goals, on the other. For both Russia and Africa the relatively satisfactory component of the NRB comprises natural resources that are of great importance for the national economy: oil and gas, coal, uranium, iron ore, copper, precious metals, diamonds, potash salts, apatite, etc. Their reserves are large enough to meet both current and future domestic and export needs (Table 2.2.1). Table 2.2.1. Level of capacity utilization in the Russian mining sector (percent) 1980 1990 1995 2000 2002 2003 2004 2005 2006 2007 2008 Coal 94 93 72 84 82 85 84 85 84 82 81 Coal processing at enrichment enterprises 93 94 72 71 68 73 81 77 71 75 71 Commercial iron ores 93 98 84 92 90 93 94 97 93 94 90 Non-mineral construction materials 85 91 52 56 57 61 63 67 61 71 66 89
However, the level of efficiency of the use of the resources base is declining. In accordance with official data the extraction of the majority types of mineral resources is higher than the increment in reserves. The only exclusions are: molybdenum, gold and coal. Especially alarming is the situation with zinc (extraction 5 times higher than the increase in reserves), wolfram (nearly 8 times) and bauxites (13 times). These figures indicate that the owners of the now privatized mining companies are over-exploiting the natural resources of the nation. Zinc, lead, tin, antimony, barite, fluorite, and graphite show a less uniform situation. The situation in Africa varies from country to country, but on the whole looks healthier. Africa is rich in practically all of the above mentioned mineral resources and plays an important role as a globally important exporter. From the point of view of NRB utilization efficiency African nations face a problem of different nature: the mined ores are consumed locally to a very limited extent. The demand on the part of national manufacturing industries is negligible. The Russian situation may be considered as both similar and different. Though Russia is one of the world’s leaders in reserves of these minerals, their production is often not enough to satisfy even the low domestic consumption, still some producers find it more profitable to export them, than to sell at the domestic market. Selling the product abroad through specially designed intricate schemes, which use employ off-shore proxy companies may allow to shelter some of the proceeds from taxation and stash away significant amounts of thus illegally preserved funds in the West, secure from the government scrutiny and possible investigations. On the whole the host economies are interested in such investments, since they increase the financial base and of their credit institutions, such flows are predictable and usually remain with the same account for many years. On the whole such investors tend to be conservative, with preference of relatively low income, predictable and reliable assets. Much of that money is invested into status assets: expensive real estate in high-end or historic areas, football clubs, yachts, objects of art etc. 90
- Page 40 and 41: uses to track terrorists. Algerian
- Page 42 and 43: sum, in exchange for terminating th
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- Page 46 and 47: ing Angola’s large oil resources
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- Page 50 and 51: the continent. To help African coun
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- Page 56 and 57: 100,000 students from almost every
- Page 58 and 59: 15 U.S. Geological Survey, Mineral
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- Page 62 and 63: tion in the global division of labo
- Page 64 and 65: of other nations (manifest in an ex
- Page 66 and 67: The mineral resource base (MRB) of
- Page 68 and 69: In Nigeria, the smelter at Ikot Aba
- Page 70 and 71: ite production at Komi to reach 6.5
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- Page 74 and 75: 25-26 thousand tons of copper conce
- Page 76 and 77: Country 75 Cost Ranges Namibia 0 20
- Page 78 and 79: The Elkon district, Southern Yakuti
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- Page 94 and 95: Table 2.2.2. Distribution of capita
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- Page 106 and 107: The second LUKOIL project in Egypt
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However, the level <strong>of</strong> efficiency <strong>of</strong> the use <strong>of</strong> the resources base<br />
is declining. In accordance with <strong>of</strong>ficial data the extraction <strong>of</strong> the<br />
majority types <strong>of</strong> mineral resources is higher than the increment in<br />
reserves. The only exclusions are: molybdenum, gold <strong>and</strong> coal. Especially<br />
alarming is the situation with zinc (extraction 5 times higher<br />
than the increase in reserves), wolfram (nearly 8 times) <strong>and</strong> bauxites<br />
(13 times). These figures indicate that the owners <strong>of</strong> the now privatized<br />
mining companies are over-exploiting the natural resources <strong>of</strong><br />
the nation. Zinc, lead, tin, antimony, barite, fluorite, <strong>and</strong> graphite<br />
show a less uniform situation.<br />
The situation in <strong>Africa</strong> varies from country to country, but on<br />
the whole looks healthier. <strong>Africa</strong> is rich in practically all <strong>of</strong> the<br />
above mentioned mineral resources <strong>and</strong> plays an important role<br />
as a globally important exporter. From the point <strong>of</strong> view <strong>of</strong> NRB<br />
utilization efficiency <strong>Africa</strong>n nations face a problem <strong>of</strong> different<br />
nature: the mined ores are consumed locally to a very limited extent.<br />
The dem<strong>and</strong> on the part <strong>of</strong> national manufacturing industries<br />
is negligible. The Russian situation may be considered as both<br />
similar <strong>and</strong> different. Though Russia is one <strong>of</strong> the world’s leaders<br />
in reserves <strong>of</strong> these minerals, their production is <strong>of</strong>ten not enough<br />
to satisfy even the low domestic consumption, still some producers<br />
find it more pr<strong>of</strong>itable to export them, than to sell at the domestic<br />
market. Selling the product abroad through specially designed<br />
intricate schemes, which use employ <strong>of</strong>f-shore proxy<br />
companies may allow to shelter some <strong>of</strong> the proceeds from taxation<br />
<strong>and</strong> stash away significant amounts <strong>of</strong> thus illegally preserved<br />
funds in the West, secure from the government scrutiny<br />
<strong>and</strong> possible investigations.<br />
On the whole the host economies are interested in such investments,<br />
since they increase the financial base <strong>and</strong> <strong>of</strong> their credit institutions,<br />
such flows are predictable <strong>and</strong> usually remain with the same<br />
account for many years. On the whole such investors tend to be conservative,<br />
with preference <strong>of</strong> relatively low income, predictable <strong>and</strong><br />
reliable assets. Much <strong>of</strong> that money is invested into status assets:<br />
expensive real estate in high-end or historic areas, football clubs,<br />
yachts, objects <strong>of</strong> art etc.<br />
90
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