(introduction...)

The Third World no longer supplies raw products only and a not negligible proportion of the mineral production is now processed in the exporting countries, especially those of South America, the Caribbean and Asia. In addition, other Third World countries, such as South Korea or Taiwan, are importing large quantities of metallic ores in order to process them into metallic products.

Table 9.1 Third World's share in world production (1982)

Source: UNIDO and Metal Bulletin. Revue de la Metallurgie, etc.

Local ore processing developed mainly during the last decade. In 1974, Third World mining countries were processing one-third of their mineral output, that is, the same proportion as in 1950!

The extent of local processing varies according to the physical characteristics of the minerals. The purely technical necessity of processing is of course greater for copper ore, of which the metal content is between 0.5% and 4%, than for iron or bauxite ores, which have a grade of 50% or more. The processing technology also plays some role in location decisions. Thus, for copper and bauxite, processing technology is discontinuous, which makes possible the segmentation of the production process over different countries. But for iron ore, this segmentation is impossible as smelting and refining must be located on the same site. Yet the new technique of the direct reduction of iron ore by hydrocarbons now allows for only one production stage being located in the mining country, that is, the production of pre-reduced iron pellets which can be exported. The very specific technology related to uranium, however, requires its processing to be located in the consuming countries.

Other, non-technical, factors determine, of course, the degree of local processing of minerals in the Third World. As a rule, local processing for copper is much more developed than for iron ore and for iron ore more than for bauxite.

In 1980, Zambia processed 97% of its copper ore into blister and 90% of its blister into refined copper, while the corresponding figures for Zaire were 94% and 46%. These figures are relatively high by comparison to those of other Third World copper producers: 80% and 60% for Chile: 90% and 20% for Peru; and much lower percentages in the Philippines and in Papua New Guinea. Bauxite processing, however, is less developed in Africa, and there is only one alumina smelter, located in Guinea, which transforms only a small fraction of the locally produced bauxite ore. Lastly, the steel industry is totally absent in the main iron ore producing countries.