BMI's Executive Summary

[TOP]

A dearth of mineral resources and low levels of sustainability have forced Taiwan to halt exploration and production activities for key commodities, such as coal and gold, and focus more on refining imported raw materials. A large portion of the island's mineral imports help in making processed products such as aluminium, copper, lead, nickel, tin and zinc.

Taiwan's mining output has declined consistently since the 1970s to reach a state where the industry accounted for only 0.1% of the total industrial production value in 2005. In September 2006, mining output fell by 7.8% year-on-year (y-o-y). Such output is now largely limited to marble, limestone and dolomite for production of cement and stone, which is used primarily by the construction industry. With reserves estimated at over 300bn tonnes, marble is Taiwan's key mineral resource. The industry also produces limited quantities of copper, manganese and sulphur.

Coal, once a key constituent of Taiwan's mining industry, fizzled out due to difficult mining conditions and competition from cheaper imports. Production was substantially down from almost 5mn tonnes in 1968 to a paltry 80,000 tonnes in 2000. In 2001, Taiwan discontinued operations at its last operating coal mine. Taiwan's mineral imports have, in the meantime, risen meteorically to support the continuing rise in demand. In 2005, Taiwan imported a total of 60.4mn tonnes of coal. Power generation accounts for 77% of Taiwan's coal consumption.

The Taiwanese government controls all mineral resources in the country, which are regulated by the Ministry of Economic Affairs (MOEA). The MOEA has also promulgated the Mining Law and the Mine Safety Law, which constitute the bulk of the legal framework for the supervision of mineral resources in Taiwan. The Department of Mines and Bureau of Mines (BOM) under MOEA are the authorities that implement mining laws and regulations governing all private and state-owned mining contractors. The functions of BOM include surveying of the mining area, regulation of the standards in mining operation, review of mining projects, site inspection and the issue and renewal of mining licences.

Chapter 1 - Executive Summary

Chapter 2 - Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 3 - SWOT Analysis

Taiwan Political SWOT

Taiwan Economic SWOT

Taiwan Business Environment SWOT

Chapter 4 - Business Environment

Chapter 5 - Business Environment

Introduction

Regional Overview

Table: Philippines Regional Ave. Scores 1

Taiwan: Business Environment Ranking

Table: Philippines Business Environment

Legal Issues

Intellectual Property Rights

Labour Force

Foreign Investment Policy

Political Environment

Chen Still Under Fire

Cross-Strait Relations Remain A Key Issue

Chapter 6 - Industry Forecast Scenario

Metals Price Outlook

Lower Metal Prices, But Still Historically High

Risks To Outlook

Global Industry Overview

Regional Analysis

Taiwan Mining Industry Forecast

Table: Taiwan Mining Industry Forecast

Chapter 7 - Appendix A: Mining Ratings: Methodology

Introduction

Breakdown Of Ratings

Breakdown Of Components

Chapter 8 - Appendix B: The World Economy

Outlook And Risks

Table: Global Assumptions

United States

Soft Landing Ahead

Risks To Outlook

Europe

Moderating, But Solid Economic Growth

Medium-Term Growth Outlook

Japan

Japan In 2007 & 2008

Japan’s Medium-Term Prospects

China

China In 2007 And 2008

China’s Medium-Term Prospects

Commodities

Correction To Continue

Lower Metal Prices, But Still Historically High

Risks To Outlook

Oil

Chapter 9 - Appendix C: Regional Demographic Data

Table: Manufacturing Wages (ave. per annum), US$

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn