Lets talk about mining itself. Mining is a comprehensive industry. It needs other stages to complete each process before we get the metals or coal as products. Simplifiedly, mining industry will be divided from exploration, mining and mettalurgy.
In exploration stages could be divided at least into three stages. Each stage has evaluation and decision step before going through to next stage. It consequence to delineate the exploration area. Pre-eliminary exploration consists to reconnaissance or desk study about deposit target and exploration area, random chip sampling, regional geological – topography mapping, and airborne or remote sensing geophysical method. After getting result, it is evaluated to decide the exploration go to next stage and to delineate exploration area. Exploration continues to sub-detailed exploration for prospecting. The latest exploration is detailed exploration for finding deposit. The differences of its stage are related to delineated area (focus), sampling spacing (more detailed) and analysis (more analyses are purposed). Drilling purposes are usually done in sub-detailed and detailed exploration with different spacing. Exploration success depends on money, explorer and luck.
Mining starts after feasibility study of exploration stage is approved. The effective mine design should be purposed based on many factors (stated in the next explanation) to get the highest profit in mining operation. It is developed from construction and infrastructure preparation to mining processing plant. Construction of mining methods is developed based on whether underground or surface mining to get most profitable one. It should also have flexibilities in changing or expanding followed metal prices and demand.
Metallurgy stage consists to smelter and refinery. The development of metallurgy plant depends on many factors like government regulation, technology and capital. Processing plant cost is higher as mining development. As consequence, as many as possible metal products are tried to extract like copper, gold and platinum and to get higher recovery.
Each industry inside this circle has own income and relates to each other. In several places, it could be conducted in the same place, so final products are the main offers from the site. In real condition, many cases show that mining products are exported as raw materials. Added value or known as processing and refinery are done in other place (country). The high initial cost usually becomes reason why this last stage is not developed in the same place with mining. What do you think?
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