1Minerals in the World 
Economy 
By Charles L. Kimbell1 
 
 
 The year 1979 was a period of increased activity for the world's mineral
industry, distinctly in contrast with 1978 when estimated world crude mineral
output value declined slightly and most phases of the industry's activity
were somewhat curtailed. In 1979, most major mineral commodities recorded
significant gains in output, with a substantial number achieving new record
highs; details on trade levels for 1979 were not available, but increases
over those of 1978 were expected on the basis of partial data. Consumption
of most commodities edged higher; in some cases the higher demand levels
were met largely through draw-downs of stocks accumulated in recent years,
while in other cases notable output increases were required to meet demand.

 Actually, 1978 was not a bad year for all elements of the mineral industry
if changes in output levels of the various commodities are. considered as
a measure of performance. There were far more individual commodities registering
production increases between 1977 and 1978 than registered declines, but
some of those reported as declining were relatively major commodities (bauxite,
aluminum, copper and zinc were notable). Moreover, the upturn in productive
activity in 1978 was not matched by increases in profits. However, 1979 was
unquestionably a year of renewed expansion efforts, although some commodity
areas, most notably the steel industry component, were still experiencing
difficulties. 
 During 1978-79, a number of political events—some international
in
scope, some confined largely to single nations—had significant
influence
upon world mineral supplies, and other such events had the potential of having
significant impact on the world's mineral industry. 
 Most notable of these was the continuing crisis situation in Iran. In early
1978, industrial activity there was somewhat impaired by civil disorders
directed at the regime of Shah Muhammad Riza Pahlavi. Later in 1978 major
strikes and riots occurred, and as 1979 began, the Shah departed the nation,
leaving the Government in the hands of Prime Minister Baktiar. Among efforts
to appease the rebellious factions, that Government officially prohibited
oil exports to Israel and the Republic of South Africa, although this was
more symbolic than practical because total oil exports had fallen to a trickle
as domestic disorders so reduced output that it was barely more than adequate
to meet internal demand. It should be noted that curtailment of oil output
in early 1979 was probably matched by curtailments in production of virtually
all other mineral products, although reporting on such activities has been
very sparse and of questionable value since the deposal of the Shah. There
was evidence of some resumption of activities in the early spring of 1979
as the Baktiar regime was replaced by the provisional government of Mehdi
Bazargan, the group installed by Ruhollah Khomeni, but restoration of normal
economic activity was impossible Owing to civil disorders that continued
to plague the nation, most significantly those in oil-rich Khuzistan Province
and neighboring Kurdistan, both along the Iran-Iraq border, where Arabic
ethnic minorities complained of oppression by the Khomeni regime and where
problems flared into open fighting with the revolutionary militia. 
 The November seizure of the U.S. Embassy led to a new round of problems
for Iran's mineral industry—termination of shipments of oil industry
equipment from the