| Publication |
2011.
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| Summary/Abstract |
North Korean mineral resources are substantial and some of these minerals (such
as magnesite, zinc, iron, and tungsten) could create highly competitive markets.
However, almost all of North Korean mines suffer from a lack of electric power
and alternatives must be sought in order to solve the country's electricity shortage.
To improve mine productivity the construction of large-scale hydro plants, the
remodeling of the overall power system and a cooperative policy with Russia and
South Korea are recommended. Foreign investors (including several South Korean
companies) are eager to participate in North Korean mining projects. However, it
has been difficult for investors to participate in these projects, as most want to
establish their own companies and operate the mines themselves. In this respect,
North Korea's weak points are its legal restrictions and poor infrastructure. Therefore, it is important that North Korea creates favorable conditions for investment
and upholds its contracts with foreign companies. It is hoped that North Korea and
South Korea will normalize relations in the near future and mining projects can be
restarted. Inter-Korean mining cooperation has the potential to be beneficial for
both sides, as North Korea could increase mining production and stimulate its
economy and South Korea could in turn secure nearby mineral commodities.
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