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NATIONAL ECONOMICS UNIVERSITY FACULTY OF REAL ESTATE AND RESOURCES ECONOMICS *** GROUP ASSIGNMENT GROUP 6: MINERAL RESOURCES Hanoi, March 2022 Table of contents Introduction I Concepts and features Concepts Features II 2.1 Features 2.2 Classification Current status of mineral resource in the world and in Vietnam Current status in the world Table Current status in Vietnam Table III Case studies In the world 1.1 Box 1: Myanmar: 2020 Hpakant jade mine disaster 1.2 Box 2: EU paves way for renewable and low-carbon gases to replace fossil fuel In Viet Nam 2.1 Box 3: Vietnam's kingdom of coal wants to use mining waste in construction projects Comments and solutions Lessons learnt A Comments and solution according to Case study B Comments and solution according to Case study C Comments and solution according to Case study INTRODUCTION A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade (or quality), and quantity that there are reasonable prospects for eventual economic extraction However, there are several controversial issues about illegal exploitation in some cases This essay will help people gain more knowledge about this special resource, and relate it to the current Vietnam status before particularly analyzing some real cases in the world I CONCEPTS AND FEATURES Concepts Mineral resources are the accumulation of matter in the form of compounds or elements in the earth's crust, which in current conditions humans are capable of extracting useful elements or using them directly in life It’s a kind of natural resource, is a source of natural materials of inorganic or organic origin and mostly located in the ground The process of forming this type of resource is closely related to the development history of the earth's crust over a long period of thousands of years, sometimes millions of years Features 2.1 Features Mineral resources are nonrenewable resources The process of mineral formation is beyond human control and cannot be accelerated Mineral resources have a definite chemical composition The composition of chemical is unique in every other mineral The minerals whatever the type cannot be used directly They become usable only after they are processed and refined Minerals come from inorganic processes That means there is no existence of life in the formation of minerals Minerals are mostly found in solid forms with a definite international structure Mineral resources are not endless, some types of reserves are small, so with the development of modern industry, the depletion of mineral resources is a threat to many countries Mineral resources are often concentrated in an area called a mineral deposit 2.2 Classification Depending on the characteristics and properties of each type of mineral, one can classify them in many ways: - By existence form: solid (copper, lead, iron ), gas (gas, helium, argon ) and liquid form (oil, mineral water, ) - By origin: endogenous (igneous, or magmatic, in which minerals crystallize from a melts) and exogenous (a process whose raw materials are particles from other rocks that have undergone weathering or erosion) - By chemical composition: metals (aluminum, iron, manganese, chromium ) and non-metals (silicon, gypsum, seawater, groundwater ) II CURRENT STATUS OF MINERAL RESOURCES IN THE WORLD In the world Minerals are not evenly distributed in the earth's crust Mineral ores are found in just a relatively few areas, because it takes a special set of circumstances to create them Table Leading countries worldwide based on natural resource value as of 2021(in trillion U.S dollars) Country (main natural resources) Value in trillion U.S dollars Russia (coal, natural gas, oil, gold, timber, rare earth metals) 75 United States (coal, timber, natural gas, gold, copper) 45 Saudi Arabia (oil, timber) 34.4 Canada (oil, uranium, timber, natural gas, phosphate) 33.2 Iran (oil, natural gas)* 27.3 China (coal, rare earth metals, timber) 23 Brazil (gold, uranium, iron, timber, oil) 21.8 Australia (coal, timber, copper, iron ore, gold, uranium) 19.9 Iraq (oil, phosphate rock)* 15.9 Venezuela (iron, natural gas, oil) 14.3 India (coal, bauxite, chromite, diamonds, limestone, natural gas, titanium) 0.11 In Viet Nam Vietnam is considered a country with diverse mineral resources with more than 5000 mines of 60 types of minerals In which, some species have important reserves such as bauxite (672.1 million tons), apatite (0.778 million tons), titanium (15.71 million tons), coal (3,520 million tons), rare earths (1 million tons) and granite (15 billion m3) Petroleum reserves are estimated at about billion tons and gas at about 4,000 billion m3, distributed mainly in sediments from the South to the North Ion ore Bauxite Tin ore Reserves 13 mines with reserves of over million tons 5,5 million tons 32500 tons Zinc ore Copper Ore Titan 1400000 tons 1.874.382 tons about 663.15 million tons Table Reserve of metal resource in Viet Nam According to the announcement in October 2014 of the US Geological Survey (USGS): In 2012, Vietnam ranked 7th in crude oil production in the Asia Pacific region (110 million gallon barrels); contributes 2.3% of the total world tin production and 1.8% of the total cement production, 1% of the world total barite production According to calculations, in the period 2008 - 2013, the contribution of the mining industry to Vietnam's GDP increased from 9.07 % in 2008 to 11.49% in 2013, equivalent to 411,673 billion VND III CASE STUDIES ABOUT MINERAL MANAGEMENT In the world 1.1 Case study #1 Box 1: Myanmar: 2020 Hpakant jade mine disaster “…Myanmar’s worst mining disaster, in June last year rain began to saturate the ground at the northern section of the Wai Khar open-pit jade mine in the region of Hpakant Eventually, on July, a huge volume of quarry slope materials “collapsed into a flooded open pit, burying and killing at least 172 jade miners”, write the authors Although mining companies in Hpakant had been ordered by the authorities to suspend operations from July for three months for the monsoon season, https://www.nature.com/articles/d41586-021-01740-2 impoverished freelance scavengers were still hunting for unpicked jade exposed by rain Heavy rainfall was initially assumed to be the trigger for the collapse Myanmar’s National Human Rights Commission blamed the landslide on the lack of due diligence and risk assessment from mining companies — at least 12 of which owned licences covering specific parts of the Wai Khar mine at the time of the accident But non-governmental organizations say that a lack of regulatory oversight from the government in the mining industry is also a major problem endangering the lives of miners in Myanmar 1.2 Case study #2 Box 2: EU paves way for renewable and low-carbon gases to replace fossil fuel The European Commission on Wednesday (15 December) unveiled a package of gas legislation that aims to steer Europe away from fossil gas towards more sustainable energy sources, like renewable and low-carbon hydrogen To reach its aim of net zero emissions by mid-century, Europe needs to drastically increase the level of electrification across the economy, but the European Commission says there will still be a need for gas in certain sectors that are difficult to electrify, like heavy industry and transport “We know that electricity alone cannot deliver all the energy we’ll need in the future and renewable and other low carbon gases will increasingly replace fossil fuels,” said Frans Timmermans, the EU’s climate chief “Europe needs to turn the page on fossil fuels and move to cleaner energy sources This includes replacing fossil gas with renewable and low carbon gases, like hydrogen,” he said According to the EU executive, gaseous fuels, like biogas, biomethane, renewable and low-carbon hydrogen, as well as synthetic methane, will represent around a fifth of final energy consumption by 2050 “Electrification is a primary tool to implement renewable energy sources in all sectors where this is technically and economically feasible However, electrification is not today at least possible in all sectors,” said a senior EU official who was briefing the press on Tuesday (14 December) “That is where we will continue to need gaseous fuels and, to meet our Green Deal objectives,” the official continued, saying “these gaseous fuels, which today are mainly fossil-based, need to be decarbonised” To enable the transition, the European Commission has introduced measures to support renewable and low carbon gases, reduce methane emissions and decarbonise buildings “The aim is to reduce the share of fossil gas in the mix by, on the one hand, energy efficiency measures which reduce the overall consumption, but also then by replacing it with these renewable and low carbon gases and electrification,” said an EU official In Viet Nam 2.1 Case study #3 Box 3: Vietnam's kingdom of coal wants to use mining waste in construction projects2 https://e.vnexpress.net/news/news/vietnam-s-kingdom-of-coal-wants-to-use-mining-waste-in-constructionprojects-4396596.html Quang Ninh Province, the biggest producer of coal in Vietnam, is proposing that waste rock discarded in exploitation be used as material for the ground filling process in construction projects Every year, coal mines in the northern province dump about 150 million cubic meters of soil and rock, creating piled up hills on thousands of hectares of land in Ha Long and Cam Pha towns This wasteland is close to residential areas, causing air pollution and posing the risk of landslides, especially during the rainy season In a notable case, a storm in 2015 caused landslides at the waste dump owned by the Coc Sau Coal JSC in Cam Pha Town, filling houses and land of people in the vicinity with soil and rocks Now, the province’s authorities have thought of a solution Cao Tuong Huy, Quang Ninh’s deputy chairman, noted that as this waste piles up, the demand for soil and rock to fill ground at many construction sites in the province is high at around 130 million cubic meters per year Therefore, the province came up with a plan to use waste rocks discarded in the coal mining process as ground filling materials for a five-year (2021-2025) period Hoang Cao Phuong, head of the Minerals Department under the ministry’s General Department of Geology and Minerals of Vietnam, said the ingredients in the waste rock from coal mines in Quang Ninh are mainly mineral substances commonly used as building materials Therefore, the proposal of Quang Ninh Province to use it as ground filling material for construction projects was reasonable While this policy was formulated since early this year, it is yet to be implemented until now because of a number of obstacles, Huy said III Comments and solutions/ lesson learnt A Case study #1: Myanmar: 2020 Hpakant jade mine disaster Comments - Lack of regulatory oversight from the government in the mining industry - These terrible consequences resulted from the poor design and mismanagement - The mining site is under aggressive mining cycles that are exacerbated by frequent, uncontrolled landslides Solutions - Training and Education: Safety training for both experienced and new miners educate them about the risks of the mining occupation and how to reduce them - Wear Safety Equipment: Miners should be equipped with safety and modern equipment, including helmets, lanyards, harnesses, gloves, safety glasses, and gloves, among other protective gears - Never Ignore an Impending Danger: It is undeniable that the mining sector is innately filled with danger will mean that Employees must be alert all the time and watching out for their colleagues as well - Make use of Safety Mining Signs: Safety mining signs basically warn people of any possible hazard and encourage employees to be careful at all times + These signs should precisely state the message to avoid confusion and they should be large enough to be read from a distance + these warning signs should be put strategically in locations where accidents are most likely to occur B Case study #2: EU paves way for renewable and low-carbon gases to replace fossil fuel Comments - A sensible policy to reduce global warming emissions (one of the main reasons leading to drought, sea-level rise, and extinction) - Improving public health: The air water pollution emitted by fossil fuels and natural gas is linked with breathing problems, neurological damage, heart attacks, cancer, premature death, and a host of other serious problems - Job and other economics benefits: Compared with fossil fuel technologies, which are typically mechanized and capital intensive, the renewable energy industry is more labor intensive > more jobs are created for each unit of electricity generated from renewable sources than from fossil fuels Solutions - Based on their policy, we should follow and renovate to fit with our available resources - Encouraging our nation to refer this policy C Case study #3: Vietnam's kingdom of coal wants to use mining waste in construction projects Comments - Reducing environmental pollution: construction waste, water pollution - Saving materials used for construction projects - Saving government budget Solutions - Encourage both construction companies and state – owned enterprises to follow this good policy - Vietnam government should have more policies to support these useful ideas LIST OF REFERENCE Deadly Myanmar mine disaster caused by poor planning, say data sleuths https://www.nature.com/articles/d41586-021-01740-2 Vietnam's kingdom of coal wants to use mining waste in construction projects https://e.vnexpress.net/news/news/vietnam-s-kingdom-of-coal-wants-to-use-mining-waste-inconstruction-projects-4396596.html Leading countries worldwide based on natural resource value as of 2021(in trillion U.S dollars) https://www.statista.com/statistics/748223/leading-countries-based-on-natural-resource-value/ EU paves way for renewable and low-carbon gases to replace fossil fuel https://www.euractiv.com/section/energy/news/eu-paves-way-for-renewable-and-low-carbon-gases-toreplace-fossil-fuel/ Viet Nam mineral resource’s reserve, mineral resources contribute to Viet Nam’s GDP https://gccgroup.vn/en/an-introduction-to-vietnams-mineral-potential/ ...Table of contents Introduction I Concepts and features Concepts Features II 2.1 Features 2.2 Classification Current status of mineral resource in the world and in Vietnam Current status in the world. .. of the Minerals Department under the ministry’s General Department of Geology and Minerals of Vietnam, said the ingredients in the waste rock from coal mines in Quang Ninh are mainly mineral. .. small, so with the development of modern industry, the depletion of mineral resources is a threat to many countries Mineral resources are often concentrated in an area called a mineral deposit
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