The Mining Industry of North Korea

North Korean mineral resources are substantial and some of these minerals (such as magnesite, zinc, iron, and tungsten) could create highly competitive markets. However, almost all of North Korean mines suffer from a lack of electric power and alternatives must be sought in order to solve the country's electricity shortage. To improve mine productivity the construction of large-scale hydro plants, the remodeling of the overall power system and a cooperative policy with Russia and South Korea are recommended. Foreign investors (including several South Korean companies) are eager to participate in North Korean mining projects. However, it has been difficult for investors to participate in these projects, as most want to establish their own companies and operate the mines themselves. In this respect, North Korea's weak points are its legal restrictions and poor infrastructure. Therefore, it is important that North Korea creates favorable conditions for investment and upholds its contracts with foreign companies. It is hoped that North Korea and South Korea will normalize relations in the near future and mining projects can be restarted. Inter-Korean mining cooperation has the potential to be beneficial for both sides, as North Korea could increase mining production and stimulate its economy and South Korea could in turn secure nearby mineral commodities. Adapted from the source document.