As the global rhetoric around trade heats up, aluminum and steel are two metals that have been unexpectedly thrust into the international spotlight.
Both metals are getting considerable attention as journalists and pundits analyze how tariffs may impact international markets and trade relations. But in that coverage so far, one thing that may have been missed is the interesting history and context of these metals, especially within the framework of trade in North America.
Aluminum and Steel in North America
Today’s infographic tells the story of an ongoing North American partnership in these goods, and how this cooperation even helped U.S. and Canadian efforts in World War 2, as well as in addressing other issues of national security.
Aluminum and steel are metals that are not only essential for industry to thrive, but they are also needed to build infrastructure and to ensure national security.
Because of the importance of these metals, countries in North America have been cooperating for many decades to guarantee the best possible supply chains for both aluminum and steel.
The History: Aluminum and Steel
Here are some of the major events that involve the two metals, from the perspective of North American trade and cooperation.
The Pittsburgh Reduction Company, later the Aluminum Company of America (Alcoa), begins construction of a power plant and aluminum smelter in Shawinigan Falls, Quebec.
The company produces the first aluminum ever on Canadian soil.
This Canadian division is renamed the Northern Aluminum Company
New Uses & WW1
The Wright brothers use aluminum in their first plane at Kitty Hawk, North Carolina.
The first Model T rolls off the assembly line, and steel is a primary component.
The U.S. and Canadian steel industries surround the Great Lakes region. At this point the U.S., produces more steel than any other country in the world.
The US passes the Underwood Tariff, a general reduction in tariff rates that affected Canadian exporters. Zero or near-zero tariffs were introduced for steel. (The Canadian Encylopedia)
At this point, 80% of American-made cars had aluminum crank and gear cases.
World War I
The Great War breaks out. It’s the first ever “modern war”, and metals become strategically important in a way like never before. For the first three years, the U.S. helps the Allies – including Canada – which is already at war, by providing supplies.
Steel was crucial for ships, railways, shells, submarines and airplanes. Meanwhile, aluminum was used in explosives, ammunition, and machine guns – and the Liberty V12 engine, which powered Allied planes, was 1/3 aluminum.
During this stretch, America produced three times as much steel as Germany and Austria. By the end of the war, military usage of aluminum is sucking up 90% of all North American production.
After the war, the interruption of European aluminum shipments to North America drives up Northern Aluminum sales to the United States. In 1919, U.S. aluminum imports from Northern Aluminum totals 5,643 tons, while all European producers add up to 2,360 tons.
After aluminum gains post-war acceptance from consumers, Alcoa uses this new momentum to strike a deal to build one of the world’s greatest aluminum complexes in Quebec on the Saguenay River.
These facilities become the base for Northern Aluminum, which changes its name to the Aluminum Company of Canada (Alcan). By 1927, the area includes an entire new company town (Arvida), a 27,000 ton smelter, and a hydro power plant. This complex would eventually become the world’s largest aluminum production site for WWII.
The “Roaring Twenties” saw consumer culture take off, with autos and appliances flying off the shelves. Steel and aluminum demand continues to soar.
World War II
Canada and the U.S. establish the Permanent Joint Board on Defense, still in operation today. Near the same time, the Canadian-American defense industrial alliance, known as the Defense Production Sharing Program, is also established.
Canada and the U.S. agree to coordinate production of war materials to reduce duplication, and to allow each country to specialize, with The Hyde Park Declaration of 1941.
The principles of this declaration recognize North America as a single, integrated defense industrial base.
Canada builds the Bagotville airbase to protect the aluminum complex and hydro plants of the Saguenay region, which were crucial in supplying American and Canadian forces. A Hawker Hurricane squadron is permanently stationed, to protect the area.
The Saguenay facilities were so prolific that Canada supplied 40% of the Allies’ total aluminum production.
“The record proves that in peaceful commerce the combined efforts of our countries can produce outstanding results. Our trade with each other is far greater than that of any other two nations on earth.” – Harry Truman, 33rd U.S. President, 1947
Cold War & North American Integration
The U.S. focuses on Canadian resources after the President’s Materials Policy Commission warns of future shortages of various metals, which could make the U.S. dependent on insecure foreign sources during times of conflict.
Canada and the U.S. sign the Defense Production Sharing Agreement, which aims to maintain a balance in trade for defense products. At this point, Canada relies on the U.S. for military technology – and the U.S. relies on Canada for important military inputs.
The St. Lawrence Seaway opens, providing ocean-going vessels access to Canadian and U.S. ports on the Great Lakes. This facilitates the shipping of iron ore, steel, and aluminum.
The Canada-U.S. Auto Pact allows for the integration of the Canadian and US auto industries in a shared North American market. This paves the way for iron ore, steel, and aluminum trade.
The U.S. and Canada sign a free trade agreement, which eventually gets rolled into NAFTA in 1994.
Modern Aluminum and Steel Trade
The U.S. and Canada are each other’s best international customer for a variety of goods – including steel and aluminum.
The Periodic Table of Endangered Elements
90 different elements form the building blocks for everything on Earth. Some are being used up, and soon could be endangered.
The Periodic Table of Endangered Elements
The building blocks for everything on Earth are made from 90 different naturally occurring elements.
This visualization made by the European Chemical Society (EuChemS), shows a periodic table of these 90 different elements, highlighting which ones are in abundance and which ones are in serious threat as of 2021.
On the graphic, the area of each element relates to its number of atoms on a logarithmic scale. The color-coding shows whether there’s enough of each element, or whether the element is becoming scarce, based on current consumption levels.
|C||Carbon||Plentiful supply / serious threat|
While these elements don’t technically run out and instead transform (except for helium, which rises and escapes from Earth’s atmosphere), some are being used up exceptionally fast, to the point where they may soon become extremely scarce.
One element worth pointing out on the graphic is carbon, which is three different colors: green, red, and dark gray.
- Green, because carbon is in abundance (to a fault) in the form of carbon dioxide
- Red, because it will soon cause a number of cataphoric problems if consumption habits don’t change
- Gray because carbon-based fuels often come from conflict countries
For more elements-related content, check out our channel dedicated to raw materials and the megatrends that drive them, VC Elements.
Mapped: The 10 Largest Gold Mines in the World, by Production
Gold mining companies produced over 3,500 tonnes of gold in 2021. Where in the world are the largest gold mines?
The 10 Largest Gold Mines in the World, by Production
Gold mining is a global business, with hundreds of mining companies digging for the precious metal in dozens of countries.
But where exactly are the largest gold mines in the world?
The above infographic uses data compiled from S&P Global Market Intelligence and company reports to map the top 10 gold-producing mines in 2021.
Editor’s Note: The article uses publicly available global production data from the World Gold Council to calculate the production share of each mine. The percentages slightly differ from those calculated by S&P.
The Top Gold Mines in 2021
The 10 largest gold mines are located across nine different countries in North America, Oceania, Africa, and Asia.
Together, they accounted for around 13 million ounces or 12% of global gold production in 2021.
|Rank||Mine||Location||Production (ounces)||% of global production|
|#1||Nevada Gold Mines||🇺🇸 U.S.||3,311,000||2.9%|
|#5||Pueblo Viejo||🇩🇴 Dominican Republic||814,000||0.7%|
|#6||Kibali||🇨🇩 Democratic Republic of the Congo||812,000||0.7%|
|#8||Lihir||🇵🇬 Papua New Guinea||737,082||0.6%|
|#9||Canadian Malartic||🇨🇦 Canada||714,784||0.6%|
Share of global gold production is based on 3,561 tonnes (114.5 million troy ounces) of 2021 production as per the World Gold Council.
In 2019, the world’s two largest gold miners—Barrick Gold and Newmont Corporation—announced a historic joint venture combining their operations in Nevada. The resulting joint corporation, Nevada Gold Mines, is now the world’s largest gold mining complex with six mines churning out over 3.3 million ounces annually.
Uzbekistan’s state-owned Muruntau mine, one of the world’s deepest open-pit operations, produced just under 3 million ounces, making it the second-largest gold mine. Muruntau represents over 80% of Uzbekistan’s overall gold production.
Only two other mines—Grasberg and Olimpiada—produced more than 1 million ounces of gold in 2021. Grasberg is not only the third-largest gold mine but also one of the largest copper mines in the world. Olimpiada, owned by Russian gold mining giant Polyus, holds around 26 million ounces of gold reserves.
Polyus was also recently crowned the biggest miner in terms of gold reserves globally, holding over 104 million ounces of proven and probable gold between all deposits.
How Profitable is Gold Mining?
The price of gold is up by around 50% since 2016, and it’s hovering near the all-time high of $2,000/oz.
That’s good news for gold miners, who achieved record-high profit margins in 2020. For every ounce of gold produced in 2020, gold miners pocketed $828 on average, significantly higher than the previous high of $666/oz set in 2011.
With inflation rates hitting decade-highs in several countries, gold mining could be a sector to watch, especially given gold’s status as a traditional inflation hedge.
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