HOME  |  NEWS  |  BLOGS  |  MESSAGES  |  FEATURES  |  VIDEOS  |  WEBINARS  |  INDUSTRIES  |  FOCUS ON FUNDAMENTALS
  |  REGISTER  |  LOGIN  |  HELP
<<  <  Page 7/7
Ann R. Thryft
User Rank
Blogger
Re: Uneven Distribution of Natural Resources
Ann R. Thryft   3/28/2012 12:17:22 PM
NO RATINGS

Greg, that's a good point about each country having a different mix of natural resources. Which is one of the major reasons the WTO exists. As Obama said, China agreed to follow certain rules of engagement under the WTO, and then chose not to by formulating these policies governing rare earth mining.


Ann R. Thryft
User Rank
Blogger
Re: Walking down a slippery slope
Ann R. Thryft   3/28/2012 12:16:23 PM
NO RATINGS

"Slippery slope" is a great phrase to describe this issue. Thanks, Beth. "What a mess" is the one that first occurred to me when I read about this action. Not faulting the US, Japan and Europe, but because they basically have been forced--in the poker game of international relations--into dealing this last hand by China. This is not a situation of the US litigating another country into mining. This is a case of one trading partner, China, reneging on its agreements with several other trading partners, refusing to change its behavior after multiple requests and negotiation, and leaving those other partners with only two possibilities: put tail between legs and leave the card game, with some pretty severe consequences, or up the ante.


Dave Palmer
User Rank
Platinum
Re: World Politics Over Natural Resources
Dave Palmer   3/28/2012 12:03:29 PM
NO RATINGS
I learned in another Design News article that the increase in rare earth prices was caused by speculation and hoarding, not by Chinese export limits.  The accompanying table was pretty persuasive; it showed that the restrictions have never actually come into play, since even the new, lower limits still exceed the total demand.

I also strongly oppose any effort to use "free trade" agreements to keep countries from deciding what to do with their own natural resources.

In my wife's town in El Salvador, a U.S. company operated a gold mine from 1968 until about 1999.  The cyanide process which they used severly contaminated the river; it is now devoid of fish, contains ten times the level of cyanide permitted by the World Health Organization, and is about as acidic as Coca Cola.  Many people in the area are suffering from kidney failure.

Owned by a wealthy Milwaukee family, the company's fortunes seem to have taken a turn for the worse when its founder died.  His son seems not to have inherited his business acumen; the company's gold mining operations ended in 1999, and according to SEC filings, the company has had no earnings since 2002.  In 2006, the company's mining permit was revoked as a result of its history of environmental problems.

In 2010, the company decided to sue the government of El Salvador for $100 million in "lost profits" under the U.S.-Central America Free Trade Agreement.  You read that right; the company which was responsible for destroying the river decided to sue the country whose river they had destroyed.  Never mind the fact that the company hadn't had any earnings for four years before their permit was revoked.

Fortunately, this "get rich quick" lawsuit was ultimately thrown out on a technicality.  But the mess the company left is still there.  And the idea that companies can challenge a nation's right to protect its own people and environment, and to decide how its own natural resources will be used, is still the law. 

Nancy Golden
User Rank
Platinum
World Politics Over Natural Resources
Nancy Golden   3/28/2012 10:14:22 AM
NO RATINGS
Sounds very similar to the ongoing politics about oil and the Middle East. No easy answers here...to what degree are countries obligated to participate in the world market regarding their own natural resources? What drives those decisions and what rights do other countries have as citizens of the world? The people holding the natural resources have a much different perspective from those who desire them...and at a price that is reasonable...who defines that? Very interesting article and it will be interesting to see how this moves forward.

Greg M. Jung
User Rank
Platinum
Uneven Distribution of Natural Resources
Greg M. Jung   3/28/2012 8:57:48 AM
NO RATINGS
Great article which also reminds us that each country does not have the same natural resources as its competitors.  As other larger countries (such as China and India) become more and more industrialized and modernized, they will also compete for the same valuable, finite and rare resources on planet earth, which can cause these types of disputes to become more frequent (and more intense).

Hopefully, we can continue to work these issues out peacefully through third party organizations.

Beth Stackpole
User Rank
Blogger
Walking down a slippery slope
Beth Stackpole   3/28/2012 6:32:54 AM
NO RATINGS
I think this whole rare earth issue goes down a slippery slope. While I applaud any efforts to invigorate American manufacturing, whether it's to provide an advantage or to simply level the playing field, there is definitely a case to be made that the United States has no business litigating any country into making decisions about what or what not to mine. That said, China does have a history of manipulating and restricting trade to its competitive advantage. The bottom line is these materials are critical to the future of American manufacturing and innovation--and most importantly, jobs--therefore we have to take some kind of aggressive stand to ensure access. Hopefully, as Ann says, this will happen without ligitation intervention from the WTO.

<<  <  Page 7/7


Partner Zone
Latest Analysis
A bold, gold, open-air coupe may not be the ticket to automotive nirvana for every consumer, but Lexus’ LF-C2 concept car certainly turned heads at the recent Los Angeles Auto Show. What’s more, it may provide a glimpse of the luxury automaker’s future.
Perhaps you didn't know that there are a variety of classes, both live and archived, offered via the Design News Continuing Education Center (CEC) sponsored by Digi-Key? The best part – they are free!
Engineer comic Don McMillan explains the fun engineers have with team-building exercises. Can you relate?
The complexity of diesel engines means optimizing their performance requires a large amount of experimentation. Computational fluid dynamics (CFD) is a very useful and intuitive tool in this, and cold flow analysis using CFD is an ideal approach to study the flow characteristics without going into the details of chemical reactions occurring during the combustion.
The damage to Sony from the cyber attack seems to have been heightened by failure to follow two basic security rules.
More:Blogs|News
Design News Webinar Series
12/11/2014 8:00 a.m. California / 11:00 a.m. New York
12/10/2014 8:00 a.m. California / 11:00 a.m. New York
11/19/2014 11:00 a.m. California / 2:00 p.m. New York
11/6/2014 11:00 a.m. California / 2:00 p.m. New York
Quick Poll
The Continuing Education Center offers engineers an entirely new way to get the education they need to formulate next-generation solutions.
Jan 12 - 16, Programmable Logic - How do they do that?
SEMESTERS: 1  |  2  |  3  |  4  |  5  |  67


Focus on Fundamentals consists of 45-minute on-line classes that cover a host of technologies. You learn without leaving the comfort of your desk. All classes are taught by subject-matter experts and all are archived. So if you can't attend live, attend at your convenience.
Learn More   |   Login   |   Archived Classes
Twitter Feed
Design News Twitter Feed
Like Us on Facebook

Sponsored Content

Technology Marketplace

Copyright © 2014 UBM Canon, A UBM company, All rights reserved. Privacy Policy | Terms of Service