The economy depends to a considerable degree on the extraction of its many mineral resources for fuels, industrial raw materials, and metal processing as well as for exports. Anthracite coal, with estimated reserves of 1.8 billion tons, is the most abundant of the country's mineral resources. It is produced in large quantity for both domestic consumption and export. Coal mines, largely concentrated in South P'yngan Province, produced 68 million tons and 22 million tons, respectively, of anthracite and the less abundant lignite coal in 1990. Despite a fairly steady increase in the 1980s, coal production has not been able to catch up with rising demand. This situation has created a persistent energy shortage because the country relies on coal as its main energy source and lacks any reserves of oil or gas.

The lagging coal industry remains a major bottleneck. The aging of existing mining equipment and facilities, the inefficiency that arises from the increasing need to mine deeper seams, and a lack of modern, efficient equipment are the primary reasons for the production lag in extractive industries. The persistence of these problems prompted Kim Il Sung to stress the importance of developing the mining and power industries and rail transport even in his 1992 New Year's address--the same theme he has repeated annually in his New Year's address for at least the previous fifteen years.

Because of the lack of domestic reserves, the country continues to rely on foreign sources for bituminous coal. Toward the end of the 1980s, China was the chief source of coking coal, followed by the Soviet Union.

The Anju District coal mining complex is the leading coal producer (see fig. 6). A large-scale open-pit mine was being developed in the Anju District in 1990. High-quality anthracite deposits are located in the Paegam District of Yanggang Province, and have estimated reserves of at least 1 million tons. Coal deposits amounting to 10 million tons also exist in Chunbi, T'- gol, and Kangdong in Kangdong District.

With estimated reserves of 400 million tons, iron ore continues to be important for domestic industry and is a major source of foreign exchange. According to Western estimates, annual iron ore output increased from 8 million tons in 1985 to 10 million tons in 1990. In the 1980s, new mines were added at Tksng and Shae-ri they supplemented older mines at Musan, nryul, Tkch'n, Chaeryng, and Hasng, all of which received considerable state investment. The expansion projects started in early 1988 to increase the production capacity of the Musan Mining Complex to 10 millions tons per year were completed in 1989. The long-term annual output target, however, is 15 million tons. The Chngp'yng Mine in South Hamgyng Province was commissioned to produce ores in February 1991.

North Korea possesses the largest and some of the best quality magnesite deposits in the world--an estimated 490 million tons. The mining of magnesite is important for the domestic industrial ceramics industry and for exports. Magnesite mines ar9cc are concentrated in the Tanch'n District in South Hamgyng Province annual output of magnesite in 1990 was estimated at 1.5 million tons. With the completion of expansion projects of the Tanch'n Magnesia Plant and the construction of the Unsng Crushing and Screening Plant in 1987, the production capacity of magnesia increased to 2 million tons annually. The government also began efforts to expand output capacity of magnesia in the Taehng District toward the end of the 1980s.

Other important minerals are lead, zinc, tungsten, mercury, copper, phosphate, gold, silver, and sulfur manganese, graphite, apatite, fluorite, barite, limestone, and talc also are found in great supply. Zinc and lead ingots, among the leading exports, are produced at domestic smelting plants in Tanch'n, Namp'o, Haeju, and Munpyng. With a capacity of 15 million tons, the K mdk Mining Complex in South Hamgyng Province is one of the leading producers. An estimated 200,000 tons of high-grade electrolytic zinc and an estimated 80,000 tons of lead were produced in 1990.

A joint venture project to redevelop the Unsan Gold Mine was unveiled in March 1987. The successful reexploitation of the mine, originally opened by a United States firm in 1896, with deposits estimated at more than 1,000 tons, could make it one of the world's major gold mines.

Building materials, such as the cement used in almost every construction project, are manufactured in large as well as smallscale local industrial plants. Annual cement output was estimated at 11.77 million tons and 12.02 millon tons, respectively, in 1989 and 1990.

Data as of June 1993