| Publication |
2011.
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| Summary/Abstract |
The minerals industry in the Democratic People's Republic of Korea (DPRK) is
responsible for a significant part of North Korea's exports and accounted for 15.2
percent of exports in 2005. The DPRK holds most of the total known minerals
deposits on the Korean peninsula and are estimated to be 30 times more than the
deposits of the Republic of Korea (ROK). The minerals production sector in
North Korea lacks modern equipment and suffers from electricity shortages.
Equipment in many mines is decades old and includes some materials that date
back to the Japanese colonial period. Due to its economic isolation, the DPRK is
unlikely to develop these resources and increase production independently. The
exception is uranium mines in the DPRK that have received significant resources
from the Korean People's Army (KPA). These mines use modern equipment and
transportation facilities, and their workers are accorded special status, receive
preferential access to food, and other bonuses. Given its inability to redevelop the
minerals sector domestically, exploitation of the DPRK's mineral resources
through linkages with South Korean and overseas consumer markets is likely to
be the most profitable way for the DPRK to develop its minerals sector. Chinese
and South Korean firms have the most experience in investing in the mineral sector.
Mineral sector development activities and Korean-Chinese business networks can
be extremely beneficial in building relations with DPRK officials and acting as
intermediaries for investors.
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