The integrated mineral industry consists of nine defined stages, namely: 1) exploration stage; 2) development stage; 3) mining stage; 4) milling and concentrating stage; 5) marketing and transportation stage; 6) smelting stage; 7) refining stage; 8) semi- fabricating stage; and 9) fabricating stage. (After Santos, T. M. PIDS Survey [1981])

While the major demand for minerals still emanates from the developed, industrialized countries (where the per capita consumption of minerals is many times greater than that of the developing countries), significant changes in the global pattern of mineral demand and supply are taking place thereby affecting the configuration of the mineral industry.

B.1 Developed Countries - Reduction in Demand

However, in the developed countries, much of the basic demand for machines and equipment for factories, and cars and appliances for homes has already been met, and that this surge of demand is tapering off. There is still a replacement market, but with changes in tastes and technologies, partly due to miniaturization of many items, as for example with the down-sizing of automobiles to take into account increased fuel costs. Also, there has been a shift to non-metallic components made of plastics or special materials (usually mineral-based) that are lighter in weight and lower in cost. This represents a long-term reduction in demand.

B.2 Developing Countries - Increase in Demand

Many new countries are becoming industrialized. They are now building their infrastructures, concomi- tantly increasing demand for mineral raw materials to facilitate economic build-up.

arallel to this development is a very large increase in the domestic market for consumer goods Thus, a dramatic shift in the quantity demand for minerals from the developed to the developing countries is expected as populous states like China and India move up the ladder of development and increase their per capita consumption.

B.3 Changes in the Mineral Supply and Industry Development Patterns

These changes in the demand for minerals bring parallel changes in mineral supply patterns. Again, there are two things to consider. The newly industrializing countries are following the traditional pattern of developing their own mineral industries, both on the level of basic raw materials and on mineral processing. For example, domestic steel making capac- ity is high on the list of any developing country aspiring for some form of self-sufficiency in industrial produc- tion. Increasingly, the world's iron and steel produc- tion is undertaken in China, India, Brazil and Korea.

Much of the new capacity for smelting and refining of minerals is located in the developing countries where mineral ores are produced rather than in Western Europe, Japan or the USA. This development is partly due to the pressure of the host governments on the foreign-controlled mining companies to upgrade the level of the indigenous mineral industry as well as to increase the market value of exported mineral products. At the same time, in the developed countries, the home governments are forcing their own mineral smelters and refiners to close shop and to relocate elsewhere for environmental considerations.