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The metal mining industry in Eastern Europe

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  • Olivier Bomsel
  • Christian von Hirschhausen

Abstract

The mining industry has been one of the backbones of the socialist countries of Eastern Europe, not only in economic, but also in political, terms. Three years after the beginning of economic reforms, the mining industry in all the Eastern European countries is facing dramatic changes. Most mines are mining ores below acceptable cut‐off grades, and there is no hope of finding new, richer deposits. Downstream metallurgical industries will need to replace their former suppliers. In addition, the social contract that had been maintained under the socialist governments is about to be undone and a new form of internal organization must be found. The success of the economic reforms in Eastern Europe depends upon the capacity to develop new industrial relations: the large mining combinates will have to be transformed into competitive capitalist enterprises and the role of the state must be redefined. Prospects for this transformation vary greatly, from metal to metal and from country to country. Finally, restructuring in Eastern Europe will also affect European and world markets, both on the supply and demand sides. The integration of the Eastern European mining industries into the international mining community should be the medium‐term goal of all the participants.

Suggested Citation

  • Olivier Bomsel & Christian von Hirschhausen, 1992. "The metal mining industry in Eastern Europe," Natural Resources Forum, Blackwell Publishing, vol. 16(4), pages 250-260, November.
  • Handle: RePEc:wly:natres:v:16:y:1992:i:4:p:250-260
    DOI: 10.1111/j.1477-8947.1992.tb00856.x
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    References listed on IDEAS

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    1. Hansjörg Herr & Andreas Westphal, 1991. "Economic Coherence and the Transformation of Planned Economies into Monetary Economies," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 13(3), pages 307-327, March.
    2. Magnus Ericsson & Andreas Tegen, 1990. "The evolving structure of the European mining industry," Natural Resources Forum, Blackwell Publishing, vol. 14(1), pages 14-21, February.
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