In this section of the blog, I will explain how mining functions.
In basic terms, mining is the extraction of precious metals and minerals from the earth.
The process for the creation of a mine starts with a team of prospectors and geologists who raise capital to fund their mining exploration. With a lot of luck, prospectors are able to identify a deposit of a commodity in enough quantity that it is worthwhile mining. In those cases, the deposit is usually sold for a lot of $$$ to bigger mining companies which are specialized in building and producing mines.
If the deposit is close to the surface, mining companies will opt for an open-pit mine design but if the deposit is buried deep, having an underground mine makes more economical sense. It is important to understand that mining is a business and a risk one too. A lot of capital is involved in setting up a mine and the returns are not guaranteed.
After careful evaluation of the deposit and numerous studies, if a mining companies decides to buy a deposit, it will undergo a lengthy regulatory process to acquire the proper permits to start constructing the mine. This construction period can take up to several years depending on the location and environmental footprints.
Stay tuned for more!