In this section of the blog, I will explain how mining works. In basic terms, mining is the extraction of precious metals and minerals from the earth.
The process of creating a mine starts with a team of prospectors and geologists who raise capital to fund their mining exploration projects. With diligence and a lot of luck, prospectors can identify a deposit of a commodity in enough quantity that it is worthwhile to mine. In those cases, the deposit is usually sold for a lot of $$$ to bigger mining companies which are specialized in building and operating 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 an underground mine is the better option. It is important to understand that mining is a business and a risk one too. A lot of capital is involved in setting up mines and the returns are not always guaranteed.
After careful evaluation of the deposit and many feasibility studies, if a mining companies decides to buy a deposit, it will undergo a lengthy regulatory process to acquire the proper permits to start construction at the mine site. This construction period can take up to several years depending on the location and environmental footprints.
Stay tuned for more!