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

• Published in: Geographical research 2022-02, Vol.60 (1), p.179-195
• Main Authors: Nunez‐Picado, Adriana, Martinus, Kirsten, Sigler, Thomas
• Format: Article
• Language: English
• Subjects: Australia; Capital; Case studies; Clean energy; Clean technology; Companies; Corporate structure; Destinations; Economic geography; Economic research; Energy technology; exploration; Extraction; Foreign investment; Functional integration; Geography; globalisation; Globalization; Heterogeneity; junior firms; Latin America; Minerals; mining; Mining industry; Multinational corporations; National systems; Regional development; Spatial analysis; Stockholders
• ISSN: 1745-5863; 1745-5871
• DOI: 10.1111/1745-5871.12505

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. This study found three patterns of junior firm globalisation strategies and roles among Australian junior firms in Latin America: specialised service providers, regional spearheads, and mineral avant‐gardists. We conclude that Australian junior firms are crucial for the development of critical resource basins in other nations and that there is significant firm heterogeneity and functional integration in mining globalisation.