Management of Mineral Resources

Mining is one of the oldest industrial activities. Its products are essential to modern civilization. Paradoxically, and despite a deep-rooted belief to the contrary, mining is not a lucrative industry— at least not in the aggregate. This assertion is true not only for recent years, one of the weakest periods in terms of metal prices, but also for a long time past. In 1776,Adam Smith said in The Wealth of Nations: “Of all those expensive and uncertain projects, how-ever, which bring bankruptcy upon the greater part of the people who engage in them, there is none perhaps more perfectly ruinous than the search after ... mines. It is perhaps the most disadvantageous lottery in the world... Projects of mining, instead of replacing the capital employed in them, ... commonly absorb both capital and profits.”