Mad Machinist
Silver Member
As I alluded to in another post, I am writing a series of articles for an investment firm I know. Considering that most of you won't see them there, I decided to put them here. Enjoy.
When we consider the declining ore grades at the current large mines such as Grasberg in Indonesia or Many of the iron ore mines in Australia we see start to see a picture emerge. When we add into this the rising cost of environmental permitting, which will get much worse due to the tailings dam failure at Samarco in Brazil, we see the need for smaller projects to fill the gaps.
With smaller mines come smaller impacts. And with those smaller impacts come reduced cost of recovery and a reduced footprint thus having less effect on the local flora, fauna, and the general public. In many areas, this would mean less impact on the indigenous populations due to not having to move a historical location of a village or perhaps not having to remove a sacred area.
The results of the dam failure at Samarco is still being tallied. Many people died or are still missing, possibly never to be found, several river ecosystems were either destroyed or heavily damaged, and the local population will feel the after effects for generations to come.
We can see the fight over the removal of a sacred area in Arizona over the proposed Resolution Copper Project that would result in the loss of the Oak Flats Campground, an area believed sacred by the San Carlos Apache Tribe. The removal of a massive low grade ore body would leave a hole in the ground covering several square miles and over a thousand feet deep.
The open pit at Grasberg in all likelihood could never be reclaimed just due to the sheer size. Freeport McMoRan, the company operating the open pit, is now going underground in order to chase a declining ore grade in an area that has experienced decades of blasting resulting in a heavily fractured host rock due to shockwaves traveling through the rock from blasting. Many miners have been killed there already along with many other miners in other areas chasing declining ore grades underground.
When we look at the sheer lack of "world class" deposits being discovered we are being forced to venture into areas that are politically unstable. Such as the many areas in Africa. While Africa has numerous areas that are rich in minerals, there is always the possibility that the local warlords will form a tentative truce and forcibly take over the mines. With all the concern over conflict minerals and the required disclosure of said minerals, one has to wonder how long it will be before those things no longer matter with the desire for minerals to keep our society functioning.
Another aspect that needs to into account is the fact that many countries are asking for more and more from the large miners. Things like divesting a larger share of the company to the local government and people to the construction of power facilities like hydroelectric dams and power stations. In many of the areas the very roads and/or railroads the ore is transported on have to be built from scratch.
The environmental fight can be a mine killer. Pebble Beach in Alaska comes to mind when looking at this. While it is probably the largest copper/gold mineralization zone ever discovered, the odds of a mine there ever coming to fruition are not very likely due to the sheer impact on the local ecosystem and people there. Many large projects are killed during the environmental review stage just due to the sheer magnitude of scale.
While no one will deny that we need the minerals whether for building cars or renewable energy projects, the days of the large miners are numbered as more and more people become environmentally aware and can see how these projects will effect them years down the road. We have to have the necessary minerals for day to day life, that is undeniable. So we are left with a choice.
Do we continue with business as usual or do we look forward to the future where we can have the best of both worlds?
The Rebirth and Rise of the Small Scale Miner
Part I
I have to admit that when this idea was first brought up to me I had thought the asking individual had lost his mind. But after a long conversation, I began to see his point which was not that much different than mine. I do know that what will be contained in these articles will be laughed at and ridiculed by those supposedly "in the know" but everything contained herein is based in fact and through observation. No one believed the gentlemen who predicted that oil would be in the sub-$30 range, yet here we are. Part I
When we consider the declining ore grades at the current large mines such as Grasberg in Indonesia or Many of the iron ore mines in Australia we see start to see a picture emerge. When we add into this the rising cost of environmental permitting, which will get much worse due to the tailings dam failure at Samarco in Brazil, we see the need for smaller projects to fill the gaps.
With smaller mines come smaller impacts. And with those smaller impacts come reduced cost of recovery and a reduced footprint thus having less effect on the local flora, fauna, and the general public. In many areas, this would mean less impact on the indigenous populations due to not having to move a historical location of a village or perhaps not having to remove a sacred area.
The results of the dam failure at Samarco is still being tallied. Many people died or are still missing, possibly never to be found, several river ecosystems were either destroyed or heavily damaged, and the local population will feel the after effects for generations to come.
We can see the fight over the removal of a sacred area in Arizona over the proposed Resolution Copper Project that would result in the loss of the Oak Flats Campground, an area believed sacred by the San Carlos Apache Tribe. The removal of a massive low grade ore body would leave a hole in the ground covering several square miles and over a thousand feet deep.
The open pit at Grasberg in all likelihood could never be reclaimed just due to the sheer size. Freeport McMoRan, the company operating the open pit, is now going underground in order to chase a declining ore grade in an area that has experienced decades of blasting resulting in a heavily fractured host rock due to shockwaves traveling through the rock from blasting. Many miners have been killed there already along with many other miners in other areas chasing declining ore grades underground.
When we look at the sheer lack of "world class" deposits being discovered we are being forced to venture into areas that are politically unstable. Such as the many areas in Africa. While Africa has numerous areas that are rich in minerals, there is always the possibility that the local warlords will form a tentative truce and forcibly take over the mines. With all the concern over conflict minerals and the required disclosure of said minerals, one has to wonder how long it will be before those things no longer matter with the desire for minerals to keep our society functioning.
Another aspect that needs to into account is the fact that many countries are asking for more and more from the large miners. Things like divesting a larger share of the company to the local government and people to the construction of power facilities like hydroelectric dams and power stations. In many of the areas the very roads and/or railroads the ore is transported on have to be built from scratch.
The environmental fight can be a mine killer. Pebble Beach in Alaska comes to mind when looking at this. While it is probably the largest copper/gold mineralization zone ever discovered, the odds of a mine there ever coming to fruition are not very likely due to the sheer impact on the local ecosystem and people there. Many large projects are killed during the environmental review stage just due to the sheer magnitude of scale.
While no one will deny that we need the minerals whether for building cars or renewable energy projects, the days of the large miners are numbered as more and more people become environmentally aware and can see how these projects will effect them years down the road. We have to have the necessary minerals for day to day life, that is undeniable. So we are left with a choice.
Do we continue with business as usual or do we look forward to the future where we can have the best of both worlds?
?, the only reclamation necesary is perhaps 500 feet of road.The portal can be locked or blasted shut.Sigh. 
