NJC_H2_ECONS_P1_QP

This document consists of 7 printed pages and 1 blank page. NATIONAL JUNIOR COLLEGE Economics Department [Turn Over © NJC 2017 ECONOMICS 9757/01 Paper 1 28 August 2017 2 hours 15 minutes Additional Materials: Answer Paper READ THESE INSTRUCTIONS FIRST Write your name and subject class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use an HB pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, glue or correction fluid. DO NOT WRITE IN ANY OF THE MARGINS. Answer all questions. Start each question on a new piece of paper . Start parts (e) and (f) for Question 1 on a new piece of paper. Start parts (d) and (e) for Question 2 on a new piece of paper. Fill in the necessary information on the cover pages. At the end of the examination, fasten all your work securely with the cover pages given. The number of marks is given in brackets [ ] at the end of each question or part question. NATIONAL JUNIOR COLLEGE SH2 Preliminary Examinations for General Certificate of Education Advanced Level Higher 2

© NJC 2017 9757/01/A/S/17 2 Answer all questions. Question 1 Challenges and Outlook of the Copper Market Extract 1: Miners face challenge tapping copper opportunities Both Rio Tinto and BHP Billiton, two of the world’s top ten copper producers, believe the copper market is oversupplied now but will tighten from 20 18, with growing deficits. Demand for copper is expected to be steady, given that it has a wide ran ge of applications such as electrical wiring and pipes, and is forecast to be widely needed as China shifts towards more consumer-led growth. But the complexity and expense of mining projects m eans the larger miners may not be in a position to generate a quick acceleration of copper output. Rio took a step forward in December to build Resolution, a US copper mine expected to be one of the world’s largest. Rio owns 55% of the project, with BHP owning 45%. Yet obtaining all the permits for Resolution could easily take Rio another five to seven years. Because receiving approval for mines is so laboriou s, Rio and others have walked away from some projects, even if the copper resources involve d are substantial. Since 2013 Rio and Anglo American, another major mining company, have both given up on Pebble, a huge copper deposit in Alaska that is controversial for its potential effect on fisheries, for example. Another challenge for miners is the expense involve d in building mines. Glencore, another major copper miner, sold its Las Bambas project in 2014 t o MMG, a subsidiary of China's Minmetals, for about $7 billion. MMG said in October that the rema ining 25% of construction would cost between $2.7billion and $3.2 billion. BHP, which owns Olym pic Dam, an Australian mine, abandoned an expansion plan in 2012 because of th