Placing resources: Junior mining companies and the locus of mineral potential

Kneas, David

doi:10.1016/j.geoforum.2020.05.007

Cited by 19 publications

(10 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Drawing on all firms listed on the ASX’s materials subgroup in September 2019, we identified a data set of 55 Australian junior firms. We used four criteria to select the junior firms: firm residence in Australia and announced operations in Latin America—excluding non‐Australian junior firms listed in ASX; specialisation in mining exploration (Deonandan & Dougherty, 2016; Dougherty, 2013; Kneas, 2020)—excluding mining services suppliers, financial or shell firms; market capitalisation equal to or less than AU$500 million (cf. White, 2016); and, reliance on external investors to support their operations, especially equity markets (Gilbert, 2020; Kneas, 2020; Majury, 2014)—excluding private junior firms as no publicly available records were found. …”

Section: Methodsmentioning

confidence: 99%

“…Our analysis explored the spatial distribution and composition of Australian junior firm operations for insights on the globalisation strategies and roles these firms adopt in the mining industries. We assumed that the spatial distribution and composition of operations described how firms managed geological, economic, and political risks (Eggert, 2016), established particular integrations with larger firms (Dougherty, 2011), and enabled access to capital (Gilbert, 2020; Kneas, 2020; Olofsson, 2020).…”

Section: Methodsmentioning

confidence: 99%

“…This arrangement enables quick decision‐making, frugal operations, great mobility, and flexibility (Dougherty, 2013). Such firms engage in little or no mineral production and are dedicated mostly to resource speculation and exploration (Dougherty, 2013; Kneas, 2020), including the identification, characterisation, and value assessment of mineral deposits, later turned into saleable assets (Eggert, 2016; Hogan et al, 2002). These activities require minimal infrastructure or supporting services and are subject to fewer regulatory controls and forms of scrutiny than are applied to mining extraction activities (Tilton et al, 2016).…”

Section: Junior Mining Firms and Their Globalisation Strategiesmentioning

confidence: 99%

“…Some junior firms contextualise their projects in terms of high mineral demand and resource deficit such as those related to lithium (Kneas, 2020) and thereby seek to reduce their economic risks. Others position their own near others’ successful projects, also to reduce political or geological risks (Kneas, 2020). To reinforce perceptions about resources’ potential and lower notions of political and economic risks inherent to their projects, some use industry political rankings, discount rates (Gilbert, 2020), or resource projections (Olofsson, 2020).…”

Section: Junior Mining Firms and Their Globalisation Strategiesmentioning

confidence: 99%

“…Junior mining firms (hereafter junior firms) are small firms mostly focused on mining exploration to find and prove mineral reserves that are quickly turned into saleable assets (Haslam & Ary Tanimoune, 2016). Unlike large multinational firms and state‐owned enterprises, junior firms are nimble and flexible (Dougherty, 2011; Kneas, 2020). Compared with large firms, they are less constrained by path‐dependent national systems and operating conventions, less encumbered by statutory restrains or corporate structures, and less accountable to shareholders expecting profitable returns.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Globalisation strategies and roles among Australian junior mining firms in Latin America

Nunez-Picado

Martinus

Sigler

2021

Geographical Research

View full text Add to dashboard Cite

Australian junior mining firms’ globalisation strategies and roles inside the sector remain understudied in economic geography. Such firms are often overshadowed by larger global mining interests, whose operations drive most foreign direct investment, capital, and operational expenditure tied to resource extraction. Unlike large multinationals and state‐owned enterprises, junior firms are nimble, often untethered from path‐dependent national systems, less encumbered by statutory constraints or corporate structures, and less accountable to shareholders. This study sought to understand globalisation strategies and roles among junior mining firms by reference to a case study of 55 Australian junior firms in Latin America. We used spatial analysis to uncover three patterns of junior firm globalisation strategies and roles: specialised service providers supporting the further development of mature and emerging mining industries; regional spearheads opening new destinations; and mineral avant‐gardists developing new speculative industries that are critical to clean energy technologies. We conclude both that Australian junior firms play a crucial role in the development of critical resource basins in other nations and that there are significant forms of firm heterogeneity and functional integration at the core of mining globalisation that need to be more comprehensively incorporated in economic geography research.

show abstract