Surviving In The Competitive And Global Mining Industry

Mining is one of the oldest human activities. It goes back at least to the Bronze Age and possibly even the Stone Age. The Romans mined copper in Spain and tin in England some 2,000 years ago. The writings of Agricola in the 16th century show that mining was important in the Middle Ages. Today, more mineral commodities are mined in greater tonnages than ever before. This long and fascinating history closely tied with the economic development of the human race is one of the charms of the mining industry. It also, unfortunately, gives rise to some widespread misconceptions. Old industries are generally considered stodgy with mature and stagnant technologies. Costs tend not to decline as in newer industries, and may even increase with real wages. Costs are particularly expected to rise in the case of mining as the best mineral deposits are depleted. Thus, mining is often thought of as a sunset industry, destined to decline over time as the resource base is depleted. These perceptions have several important implications. They argue against economic policies that rely too heavily on mining and mineral processing to foster growth and development. The best and the brightest young people, along with society's other valuable resources, should be encouraged to enter newer industries. There the technological opportunities and the prospects for growth are more promising. These perceptions also suggest that the ability to compete in the mining industry depends largely on the quality of a company's or country's mineral deposits. Mining will take place first in countries with the lowest-cost deposits. Once these are exhausted, mining will shift to countries with the next best deposits. From time to time, new discoveries may also produce a shift in the location of mining, [ ] and may even for a time keep the costs and prices of mineral products from rising. Over the longer term, however, rising costs and prices are inevitable, as the world is forced to exploit poorer mineral deposits.