Country Report North Korea February 2011

The domestic economy: The resources development agency is upgraded

On December 1st North Korea reorganised the way it runs its resources sector. What had been the "State Guidance Bureau of Resource Development under the Ministry of Mining Industry", has been upgraded to become the Ministry of State Resource Development. This suggests a renewed emphasis on the mining sector, which is crucial for both domestic growth and exports. It may also reflect a perceived need for better co-ordination and a top-down vision, amid reports of local jurisdictions striking their own individual deals for Chinese companies to invest in mines.

On January 5th the South's state data agency, Statistics Korea, released figures showing that the North's resource deposits were estimated to be worth at least US$6.1trn as of 2008. Specifically, North Korea's minerals include the world's largest reserves of magnesite (6bn tonnes, valued at US$2.4trn), as well as coal (20.5bn tonnes, worth US$2.4trn), limestone (100bn tonnes, worth US$1.1trn), iron ore (5bn tonnes, worth US$270bn), gold (2,000 tonnes, worth US$54.5bn) and zinc (21m tonnes, worth US$2.18bn).

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