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If Demand Forces Metal Prices Up, All of the Following Can Be Expected Except

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Elsevier

Resources Policy

Mineral resources: Geological scarcity, market price trends, and time to come generations

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Highlights

Geologically scarce mineral resources may face burnout within some decades to a century.

Thus far, there is no correlation between market place prices of mineral resource and their geological scarcity.

For conservation of geologically scarce minerals we cannot rely on the price mechanism of the complimentary marketplace organization.

Abstract

The extractable ores of the world's geologically scarcest mineral resources (e.g. antimony, molybdenum and zinc) may be wearied within several decades to a century, if their extraction continues to increase. This paper explores the likelihood that these scarce mineral resources tin be conserved in time for future generations without intervening but instead simply relying on the price mechanism of the costless market system. Commencement we talk over the office of geological scarcity in the long-term toll development of mineral resources. And so, to encounter whether geological scarcity affects the price of minerals nosotros compare the historical trends in the prices of geologically scarce mineral resources with those of geologically more arable mineral resource. The results show that in the period 1900–2013 the toll machinery did not result in high prices that provide advance alarm of exhaustion of minerals. We therefore contend that if conservation is left to market forces, it is non certain that geologically scarce minerals will be timely, automatically, and sufficiently conserved for future generations. We recommend preparing international policy measures targeted at a toll increase of the scarcest mineral resources, in order to accelerate exchange and recycling of these materials and help save the geologically scarcest mineral resources for futurity generations.

Keywords

Scarce minerals

Sustainable extraction

Price mechanism

Free market system

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Source: https://www.sciencedirect.com/science/article/pii/S0301420716300861

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