Mineral-dependent economies
Topic: Primary Activities: Gathering, Pastoralism, Agriculture and Mining · NCERT: Class 12, Ch 4 "Primary Activities"
Meaning
Mineral-dependent economies are countries that earn more than half of their income from minerals alone. Several of them are in Africa, and a few are in South America and Asia. Their numbers matter more today because rich countries are leaving mining and refining, where labour costs are high, while labour-rich developing countries are growing in importance. Leaning so heavily on one export is risky. When world mineral prices fall, the whole economy suffers. This trap is often called the resource curse: a country rich in minerals ends up with slow growth, weak industry or conflict.
Example
Zambia relies heavily on copper from its Copperbelt towns of Ndola and Kitwe, close to the DR Congo border. Next door, the DR Congo's Katanga region supplies about 70% of the world's cobalt (verify current). Both countries feel every change in world metal prices.
Don't confuse with
- Major mineral producers: countries such as Australia or the USA mine large amounts but also have many other industries and services, so they do not depend on minerals.
Related concepts
- Mining
- Factors affecting mining activity
- Open-cast mining
- Underground mining
- Katanga-Zambia copper belt