Marketing – Key to Industrial Minerals Productivity

Introduction The role of marketing in the minerals and mining industry takes on different degrees of importance depending on the commodity, but nowhere are sales and marketing more important than in industrial minerals. This article compares industrial minerals marketing with the marketing of other mining and mineral products. Marketing in Mining Some broad generalizations on the marketing of industrial minerals in relation to other mineral products can be made without getting bogged down with exceptions to generalizations. Two totally different areas of mineral production are crude oil and natural gas, and metals, including ores and concentrates. Although these commodities are the basis for two completely different industries, they share two things in common from a marketing standpoint: • Their value per unit volume is usually high enough so that they can be transported great distances. • Their specifications are readily definable and, therefore, the quality of a standard product from a production run can be communicated by stating certain chemical and physical features. This permits sales to be consummated by telephone, telex, and letter, without the need to pretest the products under use conditions. In regard to the first item, industrial minerals, as opposed to oil, gas, and metals, are in most instances site specific. Location of the point of production in relation to the point of use is of paramount importance based on a generally lower unit to volume value. This means that transportation is a major factor, with the cost of getting the mineral to market commonly exceeding its f.o.b. value. Coal marketing has many characteristics in common with industrial minerals. Coal sales can es-