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The rule states that this would lead to a net price or " Hotelling rent " for it that rose annually at a rate equal to the rate of interest , reflecting the increasing scarcity of the resource. Nonaugmentable resources of inorganic materials i. Vogely has stated that the development of a mineral resource occurs in five stages: 1 The current operating margin rate of production governed by the proportion of the reserve resource already depleted.

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The Gray-Hotelling exhaustion theory is a special case, since it covers only Stages 1—3 and not the far more important Stages 4 and 5. Simon has stated that the supply of natural resources is infinite i. These conflicting views will be substantially reconciled by considering resource-related topics in depth in the next section, or at least minimized. Furthermore, Hartwick's rule provides insight to the sustainability of welfare in an economy that uses non-renewable resources. The perpetual resource concept is a complex one because the concept of resource is complex and changes with the advent of new technology usually more efficient recovery , new needs, and to a lesser degree with new economics e.

On the one hand, a material and its resources can enter a time of shortage and become a strategic and critical material an immediate exhaustibility crisis , but on the other hand a material can go out of use, its resource can proceed to being perpetual if it was not before, and then the resource can become a paleoresource when the material goes almost completely out of use e.

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Some of the complexities influencing resources of a material include the extent of recyclability, the availability of suitable substitutes for the material in its end-use products, plus some other less important factors. The Federal Government suddenly became compellingly interested in resource issues on December 7, , shortly after which Japan cut the U. This was the worst case for resource availability, becoming a strategic and critical material.

After the war a government stockpile of strategic and critical materials was set up, having around different materials which were purchased for cash or obtained by trading off U. In the longer term, scarcity of tin later led to completely substituting aluminum foil for tin foil and polymer lined steel cans and aseptic packaging substituting for tin electroplated steel cans.

Resources change over time with technology and economics; more efficient recovery leads to a drop in the ore grade needed. The average grade of the copper ore processed has dropped from 4. Cobalt had been in an iffy supply status ever since the Belgian Congo world's only significant source of cobalt was given a hasty independence in and the cobalt-producing province seceded as Katanga, followed by several wars and insurgencies, local government removals, railroads destroyed, and nationalizations.

This was topped off by an invasion of the province by Katangan rebels in that disrupted supply and transportation and caused the cobalt price to briefly triple. While the cobalt supply was disrupted and the price shot up, nickel and other substitutes were pressed into service. Following this, the idea of a "Resource War" by the Soviets became popular. Rather than the chaos that resulted from the Zairean cobalt situation, this would be planned, a strategy designed to destroy economic activity outside the Soviet bloc by the acquisition of vital resources by noneconomic means military?

An important way of getting around a cobalt situation or a "Resource War" situation is to use substitutes for a material in its end-uses. Some criteria for a satisfactory substitute are 1 ready availability domestically in adequate quantities or availability from contiguous nations, or possibly from overseas allies, 2 possessing physical and chemical properties, performance, and longevity comparable to the material of first choice, 3 well-established and known behavior and properties particularly as a component in exotic alloys, and 4 an ability for processing and fabrication with minimal changes in existing technology, capital plant, and processing and fabricating facilities.

An important way of replacing a resource is by synthesis, for example, industrial diamonds and many kinds of graphite , although a certain kind of graphite could be almost replaced by a recycled product. Most graphite is synthetic, for example, graphite electrodes, graphite fiber, graphite shapes machined or unmachined , and graphite powder.

Another way of replacing or extending a resource is by recycling the material desired from scrap or waste. This depends on whether or not the material is dissipated or is available as a no longer usable durable product. Reclamation of the durable product depends on its resistance to chemical and physical breakdown, quantities available, price of availability, and the ease of extraction from the original product. A good example where recycling makes a big difference is the resource availability situation for graphite , where flake graphite can be recovered from a renewable resource called kish, a steelmaking waste created when carbon separates out as graphite within the kish from the molten metal along with slag.

After it is cold, the kish can be processed. Several other kinds of resources need to be introduced. An abundant resource is one whose material has so far found little use, such as using high-aluminous clays or anorthosite to produce alumina, and magnesium before it was recovered from seawater. An abundant resource is quite similar to a perpetual resource.

Natural resource economics

Identified resources are those whose location, grade, quality, and quantity are known or estimated from specific geologic evidence. Reserves are that part of the reserve base that can be economically extracted at the time of determination; [16] reserves should not be used as a surrogate for resources because they are often distorted by taxation or the owning firm's public relations needs.

Harrison Brown and associates stated that humanity will process lower and lower grade "ore". Iron will come from low-grade iron-bearing material such as raw rock from anywhere in an iron formation, not much different from the input used to make taconite pellets in North America and elsewhere today. As coking coal reserves decline, pig iron and steel production will use non-coke-using processes i. The aluminum industry could shift from using bauxite to using anorthosite and clay.

Magnesium metal and magnesia consumption i. Sulfur will be obtained from pyrites , then gypsum or anhydrite. Metals such as copper , zinc , nickel , and lead will be obtained from manganese nodules or the Phosphoria formation sic! These changes could occur irregularly in different parts of the world. While Europe and North America might use anorthosite or clay as raw material for aluminum, other parts of the world might use bauxite, and while North America might use taconite, Brazil might use iron ore.

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New materials will appear note: they have , the result of technological advances, some acting as substitutes and some with new properties. Recycling will become more common and more efficient note: it has! Ultimately, minerals and metals will be obtained by processing "average" rock. Rock, tonnes of "average" igneous rock, will yield eight tonnes of aluminum, five tonnes of iron, and 0. The USGS model based on crustal abundance data and the reserve-abundance relationship of McKelvey, is applied to several metals in the Earth's crust worldwide and in the U.

The potential currently recoverable present technology, economy resources that come closest to the McKelvey relationship are those that have been sought for the longest time, such as copper, zinc, lead, silver , gold and molybdenum. Metals that do not follow the McKelvey relationship are ones that are byproducts of major metals or haven't been vital to the economy until recently titanium , aluminum to a lesser degree. Diverse authors have further contributions.

Some think the number of substitutes is almost infinite, particularly with the flow of new materials from the chemical industry; identical end products can be made from different materials and starting points.


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Plastics can be good electrical conductors. Since all materials are times weaker than they theoretically should be, it ought to be possible to eliminate areas of dislocations and greatly strengthen them, enabling lesser quantities to be used. To summarize, "mining" companies will have more and more diverse products, the world economy is moving away from materials towards services, and the population seems to be levelling, all of which implies a lessening of demand growth for materials; much of the materials will be recovered from somewhat uncommon rocks, there will be much more coproducts and byproducts from a given operation, and more trade in minerals and materials.

As radical new technology impacts the materials and minerals world more and more powerfully, the materials used are more and more likely to have perpetual resources. There are already more and more materials that have perpetual resources and less and less materials that have nonrenewable resources or are strategic and critical materials. Some materials that have perpetual resources such as salt ,stone, magnesium , and common clay were mentioned previously.

Thanks to new technology, synthetic diamonds were added to the list of perpetual resources, since they can be easily made from a lump of another form of carbon. Synthetic graphite, is made in large quantities graphite electrodes, graphite fiber from carbon precursors such as petroleum coke or a textile fiber. A firm named Liquidmetal Technologies, Inc. It makes amorphous metal alloys , which retain a random atomic structure when the hot metal solidifies, rather than the crystalline atomic structure with dislocations that normally forms when hot metal solidifies.

The Liquidmetal alloys can supplant many high performance alloys. Exploration of the ocean bottom in the last fifty years revealed manganese nodules and phosphate nodules in many locations. More recently, polymetallic sulfide deposits have been discovered and polymetallic sulfide "black muds" are being presently deposited from "black smokers" [22] The cobalt scarcity situation of has a new option now: recover it from manganese nodules. Partnering with Nautilus are Tech Cominco Ltd.

There are also other robot mining techniques that could be applied under the ocean.

Rio Tinto is using satellite links to allow workers kilometers away to operate drilling rigs, load cargo, dig out ore and dump it on conveyor belts, and place explosives to subsequently blast rock and earth. The firm can keep workers out of danger this way, and also use fewer workers. Such technology reduces costs and offsets declines in metal content of ore reserves. Finally, what is a perpetual resource?

The ASTM definition for a perpetual resource is "one that is virtually inexhaustible on a human time-scale". Examples given include solar energy, tidal energy, and wind energy, [26] to which should be added salt, stone, magnesium, diamonds, and other materials mentioned above. A study on the biogeophysical aspects of sustainability came up with a rule of prudent practice that a resource stock should last years to achieve sustainability or become a perpetual resource, or for a worse case, years.

If a resource lasting or more years is perpetual, one that lasts to years can be called an abundant resource, and is so defined here. Your GarlandScience. The student resources previously accessed via GarlandScience. Resources to the following titles can be found at www. What are VitalSource eBooks? For Instructors Request Inspection Copy. The wellness of a community is dependent upon the security of food, water, environment and energy. Such a security is best realised through science-illuminated earth, space, hydrological, pedological, information management of local resources waters, soils, bioresources, minerals, rocks, sediments, etc.

Moreover, activities, employment and many other things come along with the availability of natural resources, which will require and affect policy. It is intended for researchers, professionals and students in environmental and earth sciences, mining, geography, sociology, economics and for policy makers and investors searching for potential in the natural resources industry. Water, Soils crop and ecosystem management covering food, drinking water, sanitation and hygiene, etc. Rocks, minerals and sediments covering industry, energy, fuels, mining, civil constructions, etc.

Bioresources and Biodiversity 4. Environments 5. How to achieve a low-carbon, technology-driven, socially-equitable, economic growth, through scientific use of natural resources. Aswathanarayana General Editor has teaching, R. That he is indeed a polymath is evidenced by his ten, highly-acclaimed, internationally published books most of them through A.

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