Metal Trade Policies

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Metal Trade Policies

The Metals is the largest federal source of scientific and technological knowledge and policy advice regarding the resources of minerals and metals in Canada. At the federal level, the Sector promotes the sustainable development and exploitation of mineral resources and metals in Canada. Nationally and internationally, the sector sees the development of policies and provides advice and expertise to government, industry and Canadians (Canadian Government Report, 33).

There is a strong tendency towards integration in the metals and mining industry. Cross-border mergers have been taking place for several years. The attention is focused on technological improvements and new products. Through integration, companies tend to strengthen their position, lower production costs, and expand towards new markets. To enter the industry and make ground against incumbents that are cushioned by scale economies it is necessary to integrate. This trend puts smaller and weaker companies out of the industry and lowers the risk of newcomers. Therefore, as with many increased demands for product, players will be eager to involve themselves in the growing industry. For the most demand for platinum catalysts industry is expected to increase. One of the main problems that players face is the high cost of processing of platinum group metals (PGM). South Africa has three processing facilities owned by Anglo Platinum, Impala Platinum and Lonrho Platinum.Alternativny process, however, has been developed and is called ConRoast. ConRoast is a unique process that includes treatment of sulphide concentrates containing platinum group metals, nickel, copper and cobalt. It removes the sulfur from the metal sulphide concentrates by roasting iron, and then concentrate on the furnace with iron-based alloy as a collector of platinum group metals and other metals. This provides greater flexibility in the treatment of ore types and concentrate compositions without imposing restrictions on the minimum number of non-ferrous metals and sulfur. Nevertheless, the process still requires large amounts of capital and is not within the means of all players.

The metals and mining industry faces increasingly stringent environmental regulations, and companies are under pressure to develop cleaner and more efficient technologies. Recent years have seen punitive costs for violation of environmental regulations increase, threatening margins. In fact, they now include criminal penalties in some jurisdictions (OECD Report, 13-15). Fixed costs in this industry are high as the main outgoings are transportation and energy which have both faced increased prices. Despite a sharp decline in 2009 as commodity prices fell, the South African metals and mining industry showed growth overall for the period 2005 and 2009. This, coupled with a forecast for strong growth, makes the market attractive to new entrants. Overall, the threat of new entrants is assessed as moderate.

The Parliamentary Assembly is concerned that members of the Council of Europe, as part of their health policies, do not pay enough attention to the health risks of metals, while these risks are scientifically established in many cases. Thus, it is increasingly clear that the permanent exhibition and small doses of human beings to substances such as aluminum, cadmium, mercury or ...
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