10947 (v.3) WASM Mineral Market Analysis 601

Area:

WASM Mineral Economics Teaching Area

Credits:

25.0

Contact Hours:

32.0

Lecture:

8 x 4 Hours Fortnightly

Prerequisite(s):

10939 (v.4) WASM Natural Resources Economics 601

Syllabus:

The nature of mineral market analysis, microeconomic principles - brief review. Demand and consumption - demand determinants, intensity of use - concepts and trends, material substitution, demand elasticities. Costs, supply and production - primary supply - stages, sources and determinants, secondary supply and recycling, supply elasticities, comparative cost analysis, long run cost trends. Market structure, prices, economic rents and competitiveness - the industrial organisation paradigm, mineral markets - types and evolution, prices - past and future, volatility hedging, cartels and commodity agreements, economic rents. Future trends and prospects - an examination of selected mineral commodities.

Unit Outcomes:

On successful completion of this unit, students will have- An appreciation for the determinants of demand and consumption of mineral and energy commodities. An understanding of the determinants of primary and secondary supply of mineral and energy commodities in both the short-run and the long-run. Analysed the industrial organisational framework of mineral sector producers and consumers. Developed a detailed market analysis of a major mineral commodity.

Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information.

Unit References:

Tilton, John, E. (1992), 'Economics of the mineral industries' in Howard, L. Hartman (ed.), SME mining engineering handbook (second edition), Vol. 1. Littleton, SME, pp.47-51. Maxwell, Philip. (1999), 'The coming nickel shakeout', Minerals and energy, Vol. 14, pp. 4-14. Tilton, John E. (1990) 'Introduction' and 'The outlook for world metal demand', in John E. Tilton, (ed.) World metal demand: trends and prospects. Washington D.C., Resources for the future, pp. 1-11, 255-267. Radetski, Marian. and Tilton, John E. (1990), 'Conceptual and methodological issues', in John E. Tilton (ed.) World metal demand: trends and prospects, pp. 13-34. Tilton, John E. (1993), 'Substitution of materials: economics', in M.B. Bever, (ed.) Concise encyclopedia of materials economics, policy and management. New York, Pergamon. Torries, Thomas F. (1988), Competitive cost analysis in the mineral industries: the example of nickel. Resources policy, Vol. 14, No.3, (September), pp. 183-204. Tilton, John E. (1999), 'The futureof recycling', Resources policy, Vol. 25, No. 3. (September), pp. 197-204. Porter, Michael E. (1980), Competitive strategy: techniques for analysing industries and competitors. New York, Free Press.

Unit Texts:

No prescribed texts.

Unit Assessment Breakdown:

Class project 20%, Final exam 60%, Quizzes 20%. This is by grade/mark assessment.

Year	Location	Period	Internal	Area External	Central External
2004	Bentley Campus	Semester 2	Y
2004	Kalgoorlie Campus	Winter Period	Y