Mineral resources and national economic security: Current features

Abstract

Purpose is to estimate current mineral and raw material complex and its effect on national economic security basing upon determination and analysis of the integrated index. Methods. Eleven countries of the world with the developed iron-mining industry have been selected as the object of the research. Information database has been formed to calculate integrated index of mineral and raw material security (MRMS). Seven indicators characterizing economic and technical state of iron-ore industry have been specified as performance measures. The indicators have been classified according to their effect on final integrated estimation of MRMS state in a country. The study involves proprietary methodology to calculate integrated index of MRMS. Findings. MRMS has been distinguished in the system of national security. Following indicators have been proposed to be included into the system of national MRMS performance measures: production of mineral resources per capita; resource intensity of the economy; resource-efficiency of the economy; provision with the required mineral resources; export quota; intensity of mineral raw material consumption; and ratio of the volumes of raw material extraction and export of the products of primary processing and recycling (utilization efficiency). Positions and roles of mining industry in terms of provision with resources for the world economy have been evaluated on the basis of system approach (with the emphasis on mining industry). Basic current tendencies in the development of world mining industry have been highlighted including the following ones: increase in the consumption of mineral ore resources; growing intensity of the consumption of mined crude ore deposits and, consequently, depletion of the most commercial deposits; prevailing of mineral carbohydrate raw materials in the world mining industry; and increase in ore reserves consumption by the developing countries. Scientific and methodological approach to estimate the effect of mining industry upon the level of economic security has been approbated; the results have made it possible to evaluate MRMS of 11 leading producers of iron-ore raw material. Originality. It is in the use of innovative complex (integrated) estimation of MRMS level in certain countries which has allowed performing their grouping in term of corresponding security levels and determining the factors effecting economic performance of mineral and raw material component. Practical implications. The proposed integrated approach to the estimation of MRMS level of the countries favours the substantiation of the strategy to strengthen economic security in terms of the mining industry influence.