Asia Mining

https://www.bloomberg.com/

Indonesia’s economy is losing out on commodity gains after lawmakers wrapped protectionist policies around the nation’s resources. Their next problem: finding a lucrative replacement.

Commodities now account for about 40 percent of all exports, down from almost 60 percent five years ago, according to Morgan Stanley. They make up just 6 percent of gross domestic product, half as much as in 2012, as trade restrictions worsened the impact of a price rout over much of that period. Crude oil and gas output has declined to levels last seen in the early 1970s.

While Indonesia’s coal output will be higher next year than in 2013, production of key mineral exports including bauxite, tin and nickel will still be well behind the commodity cycle’s peak, BMI Research estimates. The drag on activity may complicate President Joko Widodo’s plans to accelerate economic growth to 7 percent, with an investment push in manufacturing to offset lost commodity income yet to yield results.

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http://business.inquirer.net/

Anti-mining groups proliferate these days. They want to ban mining because it is anti-environment. Do they really mean what they say? Minerals and metals have been part of our way of life for thousands of years. Unless we go back to the Stone Age. Recall the Iron, Copper and Bronze Ages. Disclosure: I studied geology, mining and metallurgy courses at UP Diliman.

Let’s start with our homes. The refrigerator is made of steel. Stainless steel is made from iron, nickel and chromium. The tin cans for canned goods are made from tin and steel. The aluminum cans came from mined alumina. The glass we use is from silica sands.

And the house we live in is made from cement from limestone, steel bars and nails. And how will electrical appliances, like TV and air-conditioners, work without copper wires?

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http://thediplomat.com/

If the China-Pakistan Economic Corridor doesn’t live up to the hype, Russia may stand to benefit.

China’s planners have studied the art of using economic pacts to pursue strategic objectives. The “One Belt, One Road” initiative (OBOR) and the Asian Infrastructure Investment Bank (AIIB) are prime examples. China has pinned its hopes of gaining strategic preeminence in the South and Central Asian regions thanks to its deep pockets.

Infrastructure investment confers power to influence regional affairs. But South and Central Asia are not lacking of powers seeking influence — Russia and Iran have their own regional investments, plans and partners.

The China-Pakistan Economic Corridor (CPEC) is particularly important for China. With access to Pakistani ports, China will be able to expand its market reach and bring in foreign direct investment to ease the devaluation of the renminbi.

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