Natural resources and the markets of the future – What the experts say
"The good news," said Jens Nagel, Managing Director of the German wholesale, foreign trade and service sector association (Bundesverband Großhandel, Außenhandel, Dienstleistungen e.V. – BGA), "is that we have reached the bottom of the cycle and things are now on the way back up." Sharing this mood of cautious optimism is the Chairman of the raw materials giant BHP Billiton, Marius Kloppers. He estimates that by the start of 2010, metals will once again be very much in demand. The dates for bauma 2010 fall precisely within this period of resurgence, so important, global impetus is expected from this leading trade fair.
The President of the German Federal Institute for Geosciences and Natural Resources (Bundesanstalt für Geowissenschaften und Rohstoffe – BGR), Hans-Joachim Kümpel, sees an "acute demand for research and development work. We have to investigate new reserves of energy resources and develop innovative technologies for exploring and exploiting the new deposits." From a geological point of view, the global availability of natural gas, coal and uranium are not endangered for the foreseeable future, even if demand rises. Kümpel points to the overriding importance of coal, calling for climate-friendly ways of using this fuel.
India, the partner country of bauma in 2010, is seeking to attract more private investors to the country through its new mining policy. Currently the government is reforming its legislation relating to mining. The Indian minister for mines, B.K. Handique, hopes to be able to raise the proportion of mining in gross domestic product (GDP) from the current 2% to 5%; the minimum he expects is 4%. India still lags behind many other countries rich in raw materials in terms of its exploitation of its resources. According to the Federation of Indian Mineral Industries mineral deposits have only been explored in 2.3% of the territory.
The government in New Delhi hopes the mining reforms will generate 250 million US dollars per annum of foreign direct investment in the country within five years. Lucrative prospects await mining investment in the region. Raw material prices are rising again, prompted amongst other things by India´s rapidly advancing industrialisation. However, India is not only rich in raw materials, it is also a market for these resources, which makes the country attractive for international mining companies.
If access to electrical energy is a measure of an industrially developed society, the challenge facing India becomes immediately clear with the following fact: only 55.5% of the population currently has access to electricity at present (for comparison: in China, it is 99.4%, and worldwide, 75.6%). Yet the country is rich in primary energy resources: Coal India is the largest coal producer worldwide, extracting 403 million tonnes in 2008. The total for Indian coal production in that year was 465 million tonnes; also an additional 54 million tonnes had to be imported. India´s coal reserves are estimated at 350 billion tonnes. India has around 750 million tonnes of crude oil in the ground, of which 38.4 million tonnes are extracted each year. Reserves of natural gas extend to 1,075 billion cubic metres, 30 billion of which are extracted each year.
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