Mineral Resource Economics 1. Florian Fizaine

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3) attempts to deconstruct the myth that countries are genuinely opposed to each other in order to get their hands on metals. In reality, countries such as China, which has a real resources doctrine, are advancing their pawns to secure their future supplies without encountering any real resistance from industrialized countries. The author calls for the reconstruction of a genuine resource strategy in Western countries and for stopping the over-reaction to often truncated economic information.

      The second part of this book reports on the challenges that mineral resources face. They concern the multiple factors that can affect the supply of mineral resources.

      In a chapter focusing on the struggle between technical progress and the geological depletion of metal deposits, Olivier Vidal (Chapter 5) shows how two antagonistic approaches (optimistic and pessimistic) can be pooled into a formal approach of dilution–energy and energy–price relationships. Using formal theoretical tools, as well as empirical calibration on past data, he questions the perpetuation of observable price declines for most metals. This downward trend in prices should be reversed by the end of the century if the rate of technical improvement remains the same and if we continue to exploit increasingly less concentrated deposits.

      Measuring the environmental footprint of mineral resources is a challenge that Jacques Villeneuve and his co-authors at BRGM propose to take up (Chapter 6). Indeed, the environmental footprint of human activities goes beyond its sole measurement in terms of surface area used to take into account all the environmental impacts on the lifecycle of products. The aim here is to measure this footprint using an extended input–output table (IOT) that determines the consumption of mineral resources and their environmental impacts, induced by final demand with a fine level of disaggregation. These IOTs are then interconnected within a multi-regional model to assess the final impact, including imports, of national demand. In spite of limitations related to the difficulty of obtaining databases comparing data on a global scale, it can be seen that the environmental footprint of the demand for metals required for French final demand is mainly made abroad.

      We tend to forget this, but most of our consumption of raw materials requires some countries to specialize in the extraction of these resources. Yet a significant number of these countries have poorer economic health than countries without resources. Audrey Aknin (Chapter 8) shows the main factors that contribute to this resource curse. Far from the simple paradox of abundance, the resource curse is rooted in a variety of channels such as Dutch disease, increased income-seeking behavior, organizational failure, institutional dysfunction, corruption and civil war. The chapter also provides an overview of the recurrent failure of the various tools supported by international organizations to contain these phenomena. The author concludes with a few examples of countries that have successfully avoided the resource curse and the options that are now favored.

      The increase in the supply of mineral resources also faces social and legal issues. Thus, Victoire Girard and Agnès Zabsonré (Chapter 9) demonstrate that the exploitation of natural resources can make a major contribution to the process of economic growth and development and that a significant part of the populations of low-income countries depend on the exploitation of mineral resources through artisanal mining. The impact of this exploitation is a controversial issue, leading to a resource curse in some cases, or economic benefits in others. Industrial mining can certainly have some positive local economic impacts, depending on the quality of governance of local institutions and their ability to create economic benefits for related industries. However, artisanal mining appears to have a greater positive effect on the consumption, incomes and well-being of the local population. The long-term impacts on well-being, as well as on health through local pollution, are more uncertain and should be better documented by further research.

      We will also see that more mineral resources uses also mean more extraction. However, the opening of new deposits according to their location does not go without posing legal problems. Stéphanie Reiche-de Vigan (Chapter 2) proposes a review of the different legal regimes affecting mineral resources. She discusses issues related to the domestic law of territorial mineral resources through the French and American cases. The question of the exploitation of mineral resources is posed differently in international law, depending on whether the resources are territorial (in the case of the seabed of the continental shelf) or extraterritorial (the seabed of international waters and the Antarctic). She explains that the current legal regimes are insufficient, often truncated and do not guarantee respect for all aspects of sustainable development.

      Finally, Michel Deshaies (Chapter 3) traces how the presence of mineral resources influences the evolution of settlement mechanisms throughout history. In particular, the author shows that settlement mechanisms present historical, regional and material disparities (differences between metal and coal deposits). He also observes that territories where mining activities are carried out have to overcome several obstacles, such as recurrent conflicts with local populations, and also huge reconversion challenges for the post-mining period.

      In a third problematic, we propose to explore the major leverage actions often perceived as answers, or elements of answers, to the challenges mentioned above: domestic mining, substitution, decoupling (or material efficiency), recycling and the sobriety associated with the concept of low-tech.

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