MINERALS iN THE WORLD ECONOMY—1989  15shipment of large quantities
of iron ore from Sweden to Narvik, Norway, for loading onto vessels for export
through that port, and to the flow of a variety of minerals from several
southern African nations through the Republic of South Africa for export
through that country's 
ports. During 1989, efforts were continued to restore regular service on
rail lines in 
Mozambique and Zaire to lessen the dependence on the railroads and ports
of the 
~ Republic of South Africa by the nations ~ inthat area, but economic conditions
and continuing guerrilla activity and civil tin- 
rest prevented this from becoming a reality. Although not on an international
rail 
line, the rail tunnel through Canada's western Selkirk Mountains was completed

in 1989. This tunnel provides Canada's transcontinental main line the capability
to canyrawmaterials such ascoal, potash, and sulfur from the Canadian interior

smoothly and without interruption to the west coast for shipment to countries
on the Pacific Rim. Inland rail rates often, however, determine whether or
not the 
material being transported can compete 
on the world market. Although Canada has an extremelyflexible and efficient
rail system, the long haulage distances can result in a cost disadvantage
on the world 
market. Canadian coal typically travels between 1,000 and 2,000 kilometers
from producer to export ports. With the resulting costs of about $20 per
metric ton, the Canadian coal gets agreat deal of competition from coals
from countries such as the Republic of South Africa, which also has very
efficient mining and transportatinii, but shorterinternal haulage distances
that reduce the haulage costs to about $8 per metric ton. A new rail service
was initiated in the Republic of South Africa in 1989 that operates 200-car
trains at a maximum speed of 90 kilometers per hour compared with the previous
speed of 60 kilometers per hour, making Transvaal coal exported through Richards
Bay even more competitive on the world market. 
Major international pipeline movements of crudepetroleum and natural gas
in 1989w re, inge confinedtothe same area cited as the centers of rail movements
of mineral commodities. Noteworthy here, however, was the continuing operation
of the pipelines for both oil and natural gas from the U.S.S.R. to the other
centrally planned economy countries and on to some market economy countries
of Europe despite growing problems in the Sovietpetroleum and naturalgas
industries. 
Information on rail and pipeline transport of mineral commodities within
certainindividual countries is provided inthe 
appropriate country chapter. 
 
 
 
PRICES 
 
Comprehensive data on market prices 
for crude minerals and mineral products for the world as a whole do not exist,
and even the data that are available are not necessarilycompatible between
countries, particularly betweenthe market economy countries and the centrally
planned economy countries. Further, it should be cvident that the actual
delivered price for a small quantity of any specific commodity at some point
substantially removed from a production facility or a seacoast port willdiffer
appreciablyfromthatfor a large volume ofthe same product at or near its production
source or a major import center. 
Nevertheless, the regularly published prices ofselected major mineral commodities
in key market areas can be regarded as indicative ofgeneralworld price trends.

Tables 11, 12, and 13 summarize prices for selected metals in the United
States, the United Kingdom, and Canada, respectively, for 1985-89 inclusive,
with monthly data provided for 1989. In broadest overview, of the 20 prices
listed in the tables, 11 showed advances in the annual averages between 1988
and 1989,8 showed declines, and 1989 data were not yet availablefor 1(although
presumably it would reflect an upturn). These results were considerably less
impressive than those recorded between 1987 and 1988 when 16 showed upturns
and only 4 showed drops. 
Ofthe 11 prices recordinggains, copper was higher in both the U.S. and British
market, with the Canadian figure being unreported. For the red metal, the
price advances for both markets exceeded the inflationary rates for a third
consecutive year, although the 1988-89 gain was much less than that registered
for the past 2 years. The Canadian copper price, unreported for 1989, had
shown significant advances in both 1987 and 1988, and indeed had registered
a slight upturn between 1985 and 1986. This latter price increase, however,
which corresponded to declines on the U.S. and British markets, nevertheless
had been so small that it was not even sufficient to compensate for in- 
flation. Although the annual average prices in 1989 were appreciably higher
than those of 1988, examination ofthe monthly results demonstrates a generally
. downward trend across the year, with the Dccember 1989 price in both the
United States and the United Kingdom significantly below the 1988 average.

Lead recorded advances in the annual average price on allthree markets in
1989, in each case marking afourth consecutive yearmnwhichthe averageincreased.
Moreover, except in the case of the United Kingdom increase in 1989 and the
Canadian increase in 1988, the rise in the average price exceeded the inflationary
rate. For lead, monthly prices seesawed across theyear, and althoughthe December1989
average exceeded the 1988 annual average in each market, there were clear
indications of a modest yearend downturn. 
 Zinc likewise registered upturns far and 
away above the inflationary rate in 1989 and as with copper, the increases
in each market were for a third consecutive year. In each market, all gains
in 1987, 1988, and 1989 topped the inflation rate, with those in 1989 being
intermediate, on a percentage basis, between the lower increases between
1986 and 1987 and the phenomenally high increases between 1987 and 1988.
Monthly 1989 zinc prices peaked in each market in March, and with modest
fluctuations thereafter, edged 
downward, reaching their lowest 1989 levels inNovember(United Kingdom) and
December (United States and Canada). Despitethedeclines, however, the yearend
monthly prices were still substantially above the 1988 annual average. 
 In marked contrast to the price upturns for copper, lead, and zinc were
the substantial declines in the aluminum prices on both the United States
and United Kingdom markets. The 20% drop in the United States in terms ofthe
annual average price and thecorresponding25% drop inthe United Kingdom would
appeareven more significant if inflation were taken into account. Although
there were some minor upturns across the year in monthly results, the price
trend in both markets was down, with January averages being the highest and
December averages being the lowest. 
In each ofthe three markets, the annual average 1989 silverpricewas belowthat
of 1988, repeating the 1987 to 1988 performance. On a monthly basis, there
was a general downturn from January until September, followed by apartial
recovery.