Eunomix CEO Claude Baissac believes that the greater concern is that African mining jurisdictions have become mired in a “macabre cycle” characterised by reactive nationalism, economic collapse, debt forgiveness and privatisation, all of which flow from the cyclical nature of mining. “History shows that mining, because of its essential cyclicality, has crests and troughs in terms of its capacity to attract investment. For example, the long commodity bear of the 80s and 90s was characterised by low commodity prices and low investment,
"According to Eunomix, Zambia and Chile produced a tenth each of the world’s copper in 1970. By 2017, Zambia’s share had fallen to 4 per cent due to the legacy of the nationalisation while Chile controlled more than a quarter of world production."
"South Africa's minerals policy has changed the market in inefficient ways, exacerbated the impact of external factors such as volatile commodities prices and failed to meet its primary objectives"
The report focuses on the diverging growth paths of the Zambian and Chilean copper mining sectors. In 1970 the two countries both produced about 700,000 tonnes of copper a year – about 10% each of global copper production. In 2017, Chile produced 27% of world production and Zambia 4%. These trends are analysed and explained. Says Eunomix CEO Claude Baissac: “It is one of the great ironies of the modern era that the most far-reaching efforts of governments to maximise benefits
"Resource nationalism drives fear in mining corporations. But the concept is not inherently negative. Most agree that a country with a significant mineral endowment should reap widespread benefits from its resource. But throughout Africa that is where agreement ends. Norway is hardly seen as resource-nationalistic. Yet it should be labelled so: state ownership, high levels of oil taxes, and a world-leading fund that stabilises and diversifies the economy while funding a generous welfare system. This framework serves the people, and
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These things my spirit bids me
teach the men of Athens:
brings countless evils for the city,
but Eunomia brings order
and makes everything proper,
by enfolding the unjust in fetters,
smoothing those things that are rough,
sentencing hubris to obscurity
making the flowers of mischief to whither,
and straightening crooked judgments.
It calms the deeds of arrogance
and stops the bilious anger of harsh strife.
Under its control, all things are proper
and prudence reigns human affairs
Thus wrote the Athenian statesman Solon, philosopher and poet in the 6th century BC, of Eunomia, daughter of Zeus, who in dreams would appear to the rulers of the city-state and inspire them to legislate and rule justly and competently.
Eunomia, it seems to us, represents the ideal metaphor of the proper management of human affairs, and has inspired the name EunomixTM.