Browsing by Author "Guzman, Juan Ignacio"

Now showing 1 - 5 of 5
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    Chile: On the road to global sustainable mining
    (2023) Guzman, Juan Ignacio; Karpunina, Alina; Araya, Constanza; Faundez, Patricio; Bocchetto, Marcela; Camacho, Rodolfo; Desormeaux, Daniela; Galaz, Juanita; Garces, Ingrid; Kracht, Willy; Lagos, Gustavo; Marshall, Isabel; Perez, Victor; Silva, Javier; Toro, Ignacio; Vial, Alejandra; Wood, Alejandra
    The energy transition relies heavily on minerals such as copper and lithium. In today's modern world, where consumers are increasingly aware of the need to protect tomorrow's natural resources, mining is expected to be not only economical but also socially and environmentally sustainable. In light of this, mining production must be competitive in these three dimensions of sustainability to meet demand, understanding that consumers will prefer a more sustainable material. This study aims to comprehend the competitiveness of copper and lithium Chilean production from a sustainable perspective using a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) developed by a panel of experts.Based on an analysis of 165 factors driving mining's sustainability, the copper industry in Chile ranks third in the sustainability ranking for the world, while lithium ranks second. The foregoing implies that Chile, the world's leading producer of copper and second global producer of lithium, still has room to improve sustainability by introducing the following measures: (1) improving effective communication among stakeholders; (2) dissemi-nating sustainability knowledge; (3) developing State mining policies; (4) restoring stability in the country; (5) developing a sustainable quality brand of Chilean commodities; and (6) capitalizing on valuable human capital.
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    Copper recycling and scrap availability
    (ELSEVIER SCI LTD, 2007) Gomez, Fernando; Guzman, Juan Ignacio; Tilton, John E.
    According to existing estimates, available old copper scrap has more than tripled over the past 40 years. Secondary production (that is, copper produced from recycling old scrap), however, has only doubled. Indeed, over the past 10 years, while copper consumption and primary production have continued to expand briskly, while available old scrap has increased by over 35%, secondary production has actually stagnated.
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    Dynamic relationship between refined and scrap copper prices
    (2024) Rivera, Nilza; Guzman, Juan Ignacio
    In this paper, we explore the relationship between refined and scrap copper prices, considering the possibility that this relationship may vary across various products and over time. Building upon the conjecture put forth by Phillip Crowson (Miner Econ 24(1):1-6, 2011), here referred to as the Crowson Conjecture, our study aims to investigate how the substitution between refined copper and copper scrap No. 1 and No. 2 can impact the prices of each other. To achieve this, we develop a theoretical model that allows us to understand the potential influence of substitution between refined copper and copper scrap No. 1 and No. 2 during different time periods. Additionally, we conduct an empirical test using monthly time series data spanning from January 2004 to June 2022, analyzing structural breaks in these prices. Our empirical analysis successfully identifies three distinct structural breaks: January 2004 to August 2009, September 2009 to July 2017, and August 2017 to June 2022. These breaks serve as critical time periods for measuring Granger causality between the examined prices. Interestingly, our findings indicate that the causal relationships between the refined and scrap copper prices change throughout these three analyzed breaks, providing evidence in support of Crowson Conjecture. By shedding light on the evolving nature of the relationship between refined and scrap copper prices, our study contributes to a deeper understanding of the dynamics within the copper market. These insights have implications for market participants and policymakers, enabling them to make more informed decisions regarding pricing and resource allocation strategies.
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    Mining and corruption
    (ELSEVIER SCI LTD, 2007) Petermann, Andrea; Guzman, Juan Ignacio; Tilton, John E.
    This study examines the links between mineral dependency and corruption. Specifically, it develops a cross-section econometric model that estimates the effects of per capita income, fuel exports, non-fuel exports, and average per unit value of mineral exports on corruption.
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    Short-term price volatility and reversion rate in mineral commodity markets
    (2020) Garcia, Diego; Guzman, Juan Ignacio
    The commodity price volatility is a critical characteristic of mineral markets, since it has planning as well as financial implications for different market participants such as governments, producers, investors, and consumers. This paper inquiries into the price volatility of mineral commodity markets by filling the gap between two main explanations available in the economic literature: the view of mineral economists, who establish that short-term price volatility arises mainly because in this time horizon supply cannot adjust to demand (which is associated with a very small speed of adjustment to market equilibrium), and the view of neoclassic microeconomic theorists, who affirm that supply adjusts instantly to demand (which is related with a high speed of adjustment to market equilibrium). We developed a conceptual model based on the current understanding of mineral economics, but where time to adjust to equilibrium plays a significant role into setting prices. Based on this, we posit that mineral commodity markets with larger reversion rates (i.e., the time necessary to achieve a long-term equilibrium price) have a smaller price volatility. By using a cross-sectional econometric model for 50 mineral commodities in the period 1900-2015, we found statistical support for an inverse relationship between short-term price volatility and reversion rates, which supports our hypothesis.