1. Minerals are necessary in maintaining today’s modern life. Mineral wealth as a natural asset can stimulate or enhance economic growth potential and social progress. It is expected that mining as an industry will continue to expand over the next 20 to 30 years to satisfy a continuously increasing demand from industrial production, agriculture, high-tech sectors, and merchandise producers.
2. ASEAN is endowed with abundant natural resources, including many mineral and energy resources. ASEAN also has a relatively large share of world reserve of certain minerals. Despite its relatively small share in the region’s Gross Domestic Product (GDP), the minerals sector is growing in importance in ASEAN. Strong economic growth in the region and globally is fuelling demand for mineral resources in many countries and creating incentives and opportunities for ASEAN member countries to commercialise their mineral reserves.
3. Minerals production accounted for a relatively small share of the total GDP in ASEAN, at around 0.9 per cent in 2003, while exports accounted for 0.7 per cent. The contribution of minerals production to GDP was highest in Indonesia (2.3 per cent of GDP in 2003), the Philippines (0.8 per cent) and Myanmar (0.7 per cent). Minerals production in ASEAN was valued at US$5.9 billion in 2003, while ASEAN minerals trade was valued at US$10.5 billion in 2002.
4. The key minerals produced in ASEAN in value terms are nickel, copper and tin. Production of bauxite is also large in terms of volume, although is relatively low in value terms. Gold, lead, zinc and iron ore, as well as gemstones are also among the minerals that are produced in ASEAN countries, although at relatively small volumes.
5. Aluminium and copper are the major metals consumed in ASEAN, while smaller volumes of zinc, lead, tin and nickel are also consumed. Metals and minerals consumption in ASEAN have increased since early 1990s, with the most rapid growth in industrial minerals, nickel, refined copper, lead and zinc.