Few nations are endowed with all the mineral resources needed to maintain a vigorous economy. Domestic resources must be augmented for foreign supplies.

The Circum-Pacific region, with its rich mineral endowment and relative proximity to many mineral importing centers, accounts for a large segment of international mineral trade. In 1971, the value of all mineral commodities exported and imported by Circum-Pacific countries totaled $24.0 and $25.4 billion respectively. These totals amounted to approximately 32% of total world mineral exports and 34% of imports. Much of this mineral trade remained within the region. In 1971, the value of trade between Circum-Pacific partners amounted to approximately $12.2 billion.

The impact of the Circum-Pacific countries on mineral trade is further illustrated by trade in selected metallic ores, concentrates, and metals. The region traditionally has produced and exported large quantities of copper and tin. In 1971, the region accounted for about 46% of world copper exports and supplied about 85% of world tin exports. Indonesia, Malaysia, Thailand, and Bolivia accounted for almost all of this total. Nickel also has been a traditional export commodity of the region. Canada and New Caledonia are the leading world producers of nickel and Canada is the largest exporter. More recently, increased demand, particularly from Japan, has resulted in large exports of bauxite and alumina, and iron ore and concentrates from Australia.

The industrialized nations of the world not only have been the primary contributors to the demand for Circum-Pacific mineral resources, but also have been prominent in financing its mineral development. The types of foreign participation vary considerably within the region, including direct investment, long-term purchasing contract, and debt underwriting.

The investment climate throughout much of the region generally has been favorable. This is illustrated by the rapid development of mineral deposits in Australia and Canada. However, the possibility of a less favorable investment climate within the region and increased competition between mineral importers may raise the cost of regional investment. This could result in a shift of mineral activity to other areas of the world.

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