For the last few years I've been teaching a postgraduate course in mineral resources policy and economics alongside my paid consulting work.
Over nine lectures it covers the evolution and current scope and breadth of the mining industry, the definition of reserves and resources, the determinants of mineral demand and supply and the formation of prices in theory and in practice. It then goes on to discuss how mining companies decide to invest and examines trends in exploration and orebody discoveries. The economic contribution of mining is then analysed along with its social and economic costs, before policies for managing, regulating and taxing the sector are discussed from the perspective of mineral importing and of exporting economies.
After this first lecture in a series of nine you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
After this second lecture you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
After this third lecture you should be able to: Explain the major influences on the supply of any mineral product, and their relative importance in both the short run and the longer term; recognise and explain the importance of costs in determining supply, and interpret the nature of the various types of cost; understand the constraints on changes in supply in both the short and long run for different classes of minerals, and recognise the implications for mineral policies; recognise and explain the role of recycling in the supply of mineral products, and its major determinants.
After this fourth lecture you should be able to: Understand the way in which demand and supply interact to determine prices in different types of mineral market; recognise the importance of market structure and evaluate its influence on price determination; predict how prices of mineral products might evolve under varying economic conditions; distinguish between short-term ephemeral influences on prices and their underlying determinants; recognise and understand the way in which exchange rates and prices interact in mineral markets.
After this fifth lecture you should be able to: Understand the main features of the different types of pricing used in the mineral and metal markets, and recognise their strengths and weaknesses; be able to explain why each mineral or metal has the pricing system that it does; work out how the charges for base metal concentrates are calculated; be aware of the main functions of the London Metal Exchange, and understand terminal market pricing; have an introduction to commodity marketing.
After this sixth lecture you should be able to: Understand why the mining industry has to invest in exploration and new mine and processing capacity; be able to explain the various forces driving spending on exploration, and how their relative importance changes overtime; appreciate the relevance of political and institutional factors to decisions to explore and invest; understand that appropriate mining codes and fiscal regimes are necessary but not sufficient conditions for attracting investment; be able to describe the main trends in exploration expenditure over the past fifteen years; understand the complexity of the influences on mine investment and development.
After this seventh lecture you should be able to: Explain how mining can contribute directly and indirectly to economic development; apply the concept of income and employment multipliers to a mining project; understand the nature of economic rent, and the complexities involved of calculating true rent in the mineral industries; be aware of the continuing debate about the relationship between mining and economic growth, and understand the nature of the evidence; critically explain the various economic arguments deployed about the disadvantages of mineral development; distinguish between the disadvantages that are intrinsic to mining and those that are often associated with mining.
After this eighth lecture you should be able to: Understand the basic concept of sustainable development; be able to explain the relevance of sustainability to the extraction of non-renewable resources; appreciate the social and environmental constraints within which the mining industry operates; distinguish between the roles of companies and governments; recognise the need to reconcile objectives that often conflict, and the scope for realistic trade-offs between such objectives.
After this final lecture you should be able to: Understand the differing objectives of consuming and producing nations; recognise how the policies of mineral-rich countries may change as their mineral industries mature; analyse the potential issues for mineral producer, and be aware of the appropriate policies for dealing with them; appreciate the conflicting nature of many objectives, and the need for trade-offs between those objectives; be aware of the global context within which countries set their policies towards their mineral industries.