The Mineral Industry of the United Kingdom in 2010
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2010 Minerals Yearbook UNITED KINGDOM U.S. Department of the Interior October 2012 U.S. Geological Survey THE MINERAL INDUSTRY OF THE UNITED KINGDOM By Alberto Alexander Perez In 2010, the United Kingdom’s economy was ranked second to restrictions on their size and the payment of a royalty on the after Germany’s within the European Union (EU) in terms of amount of coal produced. the gross domestic product (GDP) based on purchasing power Most other mineral rights in England, Scotland, and Wales are parity. The United Kingdom’s GDP, in 2010 dollars, was privately owned with the exceptions of gold and silver, which are $2.173 trillion, which was a 1.3% increase compared with that vested in the Royal Family. A different situation regarding mineral of 2009. The country’s heavy industry, which was composed rights applies to Northern Ireland where, under the Mineral of companies that produced automotive and aviation products, Development Act (Northern Ireland), 1969, the rights to work chemicals, and machine tools, among others, relied heavily minerals and to license others to do so are vested in the state. on imported metal ores and concentrates, as well as on some The Government of the United Kingdom had ratified the industrial minerals and mineral fuels. The mineral fuels sector, Kyoto Protocol. The EU, however, decided to meet Kyoto which included coal, natural gas, and petroleum, formed a requirements as a whole, rather than as individual signatories, significant segment of the United Kingdom’s mineral industry. with each member state given a different emissions target by the In 2009, the country accounted for about 1.3% of the world’s EU (British Geological Survey, 2010a). refined nickel production, and in 2010, the United Kingdom produced 1.2% of the world’s crude salt output and 1.2% of the Production world’s potash production. In 2010, the United Kingdom’s industrial production The production of most minerals decreased in 2010 compared increased by 2.1% compared with that of 2009; the total with their output levels in 2009. A decrease was posted for output of its mining and quarrying sector decreased by 4.7% the third year in a row for crude steel production, which compared with that of 2009, and the output of base-metal and decreased by 3.6%; there were also significant decreases in metal products increased by 7.1%. These changes reflect the the production of primary aluminum (26.4%) and pig iron uneven economic recovery of the global markets, which affected (5.7%) compared with their 2009 levels of production. These the United Kingdom directly because it was a major regional decreases in production, just as with 2009, were a consequence processor of raw mineral materials and a manufacturer and of the idling of plants and production reductions owing to the producer of consumer durables and production was sensitive world economic slowdown and weak demand. In the industrial to changes in global demand (Jasinski, 2011; Kostick, 2011; minerals sector, barite production decreased by 8.3% whereas Kuck, 2011; Office for National Statistics, 2011a, p. 49–54; cement production remained stable. In 2010, the United U.S. Central Intelligence Agency, 2011). Kingdom’s total production of aluminum decreased by almost 8% despite of an increase of 8% in the production of secondary Minerals in the National Economy aluminum. The production levels for coal and coke remained about the same as in 2009. Natural gas production decreased by The United Kingdom’s mineral sector served domestic an estimated 13%, and crude petroleum production decreased economic needs, but the mining and processing companies also by 11.1%, which continued the trend of decreasing production played an important role in global mineral prospecting, mineral since at least the past 6 years (table 1). development, and mineral commodity trade. The London Metal Exchange remained the world’s leading central market for Structure of the Mineral Industry nonferrous metals. Domestic and foreign-owned corporations produced minerals Government Policies and Programs and mineral-based commodities. Table 2 is a list of major mineral industry facilities. The 1971 Minerals Act, as amended, is the statute that governs the development and exploitation of mineral deposits. Mineral Trade Minerals, as defined in Section 209 of the Act, include all minerals and materials in or under the land of a kind ordinarily The United Kingdom was a net importer of iron and steel, worked for removal by underground or surface workings; they coal, natural gas, crude petroleum, and petroleum products do not, however, include peat cut for purposes other than for in 2010. It exported metal ores valued at $6.42 billion.1 The sale. Mineral development is specifically addressed in the Town value of the country’s iron and steel and nonferrous metals and Country Planning (Minerals) Regulations, 1971, and the exports were $7.9 billion and $9.1 billion, respectively. The Town and Country Planning (Minerals) Act, 1981. Mineral United Kingdom became a net importer of natural gas in 2004, rights to mineral fuels, such as coal, petroleum, and uranium, belong to the state. The Coal Authority is authorized to license 1Where necessary, values have been converted from the British pound sterling open pit and underground mines to the private sector subject (£) to U.S. dollars (US$) at the average rate of £0.54=US$1.00 and from the euro area euros (€) to US$ at the average rate of €0.680=US$1.00 for 2010. United Kingdom—2010 48.1 of crude petroleum in 2005, and of refined petroleum products Glebe operated the Cavendish Mill near Stoney Middleton to in 2006 after many years of self-sufficiency (Office for National produce acid-grade fluorspar, together with byproduct barite and Statistics, 2011b, p. 22, 34, 40). lead concentrate. In October 2009, Glebe Mines’ ore reserves were estimated to be about 1.2 million metric tons. In 2009, Commodity Review Glebe Mines was fined more than $61,000 for the damage caused by the failure of one of the mine’s tailings dams in 2007, Metals which resulted in flooding and waste discharge into surrounding areas and the nearby village of Stoney Middleton (British Gold.—The number of licenses for exploration and Geological Survey, 2010b, p. 48). development of gold mines in the United Kingdom decreased Iron and Steel.—Tata Steel Europe (formerly the Corus in 2009 (the latest year for which information was available) Group) mothballed the Teeside cast products works in from 32 to 24 because eight licenses were relinquished in February. As a result, 1,600 workers were slated to be laid off Northern Ireland. The number of leases remained constant at (Independent, The, 2010). four. Exploration continued at Cononish in Perthshire County, Scotland, and in Omagh and Armagh in Northern Ireland. In Mineral Fuels Scotland, Scotgold Resources plc of Australia had licenses from Mines Royal (the licence granting authority in the Coal.—Coal production in the United Kingdom increased United Kingdom) for the areas around Glen Lyon, Glen Orchy, slightly in 2010, making it 3 years in a row that an increase and Inverliever, and the company owned the gold and silver in production had been achieved against the long-term trend assets of the Cononish deposit near Tyndrum. of production decreases. In 2009 (the latest year for which In Northern Ireland, the Omagh (formerly Cavanacaw) information was available), Coal Authority licenses for opencast deposit located 10 kilometers (km) southwest of the town sites in production totaled 35 and included 19 in Scotland, 9 in of Omagh was owned by Omagh Minerals Ltd., which England, and 7 in Wales. Scottish Coal Co. Ltd. was the leading was a wholly owned subsidiary of Galantas Gold Corp. of opencast coal mining company in the United Kingdom and the Canada. The deposit had a proven and probable reserve of second ranked net coal producer (British Geological Survey, 367,310 metric tons grading 7.52 grams per metric ton gold 2010b, p. 33). across a width of 4.43 meters within the designated open pit The generation of electricity accounted for the majority of area. Galantas had been granted exploration licenses to the west the country’s total coal consumption. About one-third of all and north of its existing license and currently held licenses for electricity generated in the United Kingdom was supplied by an area totaling 460 square kilometers. coal (British Geological Survey, 2010b, p. 33). Conroy Diamonds and Gold plc was exploring in the Natural Gas and Petroleum.—In September 2010, Egdon Clontibret district. The district is located on the border Resources p.l.c. received approval to redevelop the gasfield of Northern Ireland and the Republic of Ireland near situated onshore in Kirkleathan, North Yorkshire (British Co. Monaghan (British Geological Survey, 2010b, p. 49–50). Geological Survey, 2011, p. 75). Nickel.—Alba Mineral Resources plc relinquished its four Maersk Oil UK Ltd. (Maersk) began production in January exploration licenses in the Aberfeldy area in Perthshire County, at its Lochranza oilfield, which had been developed by Maersk Scotland. This area covers Arthrath, Kilmelford and part of the next to the Dumbarton field in the United Kingdom’s sector Ochil Hills (British Geological Survey, 2010b, p. 73). of the North Sea about 255 km northeast of Aberdeen. Maersk announced in August that it had produced first oil from its Industrial Minerals Affleck field in the United Kingdom’s sector of the North Sea (British Geological Survey, 2011, p. 75). The United Kingdom remained a significant producer of such The Buzzard oilfield in the outer Moray Firth was again the minerals as barite and calcareous material for cement, clays, and most prolific oilfield on the United Kingdom Continental Shelf fluorspar.