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The Flow of Natural Resources and Raw Materials
There are many reasons why we should harvest our own raw materials that already exist in this country, instead of importing them, whenever possible or feasible. When there are reasons that prevent us from gathering these natural resources in our own country, then and only then must we look to our trading partners to supply us with such raw materials and resources. When we can mine such raw materials within our borders and transport them short distances to processing plants, manufacturing plants, refineries, power plants and shipping ports or railways for export quickly and cost-effectively. In our country, most of our mining operations have been lost in the last 40 years. Part was due to the federal Clean Water Act of 1972, which was designed to prevent pollution from things like strip mining.
Many other mines, rigs and facilities were closed due to costs. This was often due to the world market price of minerals or natural resources. Much of the mining was shut down due to regulations, labor costs, unions, OSHA rules, etc. Some examples of cost problems in the mining industry have been overwhelming. Looking at the recent closure of the Butte gold mine in MT, we find that the mine was closed due to the rising cost of energy required to crush the rocks to extract the gold. Energy costs went from $280,000 per month to $1.6 million per month. Surely there were other problems, but imagine getting an electric bill and trying to manage your expenses? Unpredictable energy costs are essential for mining and other heavy industries, price spikes in addition to extra regulations are a death knell.
Now in many countries people have protested against mines, gold and silver is easy to protest because it is related to greed because these minerals are also considered legal tender. A great mine to visit is one of the first gold mines in the country, the Reed Gold Mine in Charlotte. There were more than 300 gold mines in North Carolina in the 1820s. This, of course, long before CA’s 49s. The reed mine operated until 1912. A total of 13 gold mines were closed in the past two years in response to low gold prices or the depletion of ore in Canada. Collecting gold under most conditions required in North America is no longer possible unless it can be collected together with other precious metals and the remaining material can still be screened for iron ore, copper or other metals. There are several places on Earth where several metals occur in close proximity. Mining, like many industrial enterprises, can often cause air pollution. When excess mined that isn’t used accumulates and often washes into the ground in rain, the other minerals released are more concentrated than much of the normal runoff.
This is because the minerals have been buried for centuries in the layers of previous periods. In the old Berkeley Pit copper mine, which is closed near the Sunlight gold mines in Montana, the rainwater mixed with the minerals left at the bottom of the pit was quite toxic and contained arsenic, which is harmful to humans in large quantities. and animals. Although arsenic is a poison, it is part of naturally occurring minerals and common to this area. Small marks are not bad, but when they grow high, it is a concern.
Transportation costs are also important in mining. Most of the mines still in operation are very close to major rail lines, even with all the regulations and rules in place, there is still mining in the United States. Borax in Dagget, CA. The borax mine was moved from the Harmony Borax Works mine in Death Valley, the second hottest place on earth with temperatures as high as 134 degrees. In the 1880s, the famous 20-mule team borax trains hauled their loads a grueling 165 miles to the railroad in Mojave. This is an example of why the transportation factor is critical to the efficiency of mining in order to keep the costs of factories that use the raw material or natural resources under control.
If you look at surface mines in North America, those with rights to the area can compete if economies of scale and market prices remain stable. There are also many other factors to consider, for example, if your other countries do not have the same environmental control rules, they can often sell raw materials to other countries, who in turn can sell their finished products, such as special alloys, steel, etc., cheaper than your company can produce them. What would appear to be dumping; sell their products cheaper than it costs to manufacture them. Many countries support such industries with huge tax incentives or by subsidizing these industries and/or companies. There are many reasons for this, sometimes it is just to ensure that the companies in question sell their products to the countries’ government agencies for infrastructure projects. Sometimes it’s about appeasing the workforce and providing jobs. Sometimes it is in retaliation for a perceived or real trade war by another trading partner country that supports one of its other industries. Dynamics of World Trade; industry, peace, quality of life of the population, cash flow, raw materials and natural resources; are quite extensive, as you might have guessed.
If you look at coal mines on earth; Gillette, WY; you can see a perfect example of how mining works when everything is right. Hundreds and hundreds of full train loads leave every week for coal-fired power plants across the country. The economies of scale in such mines are incredible, fun to watch and very serious, every second counts, now that’s pure efficiency science. It’s amazing how far we’ve come in the last few centuries. The world’s deepest coal mine is more than 5,000 feet underground in Great Britain. Many in the United States are over 1,200 feet deep, most have been closed and now a few remain. There is a mine in Alabama that is the deepest vertical-pit coal mine in North America, operating 2,140 meters underground. Coal mines in Washington State, Pennsylvania, West Virginia and Alabama will find it difficult to compete with the incredible economies of scale of the Gillette WY surface mine. Underground coal mines can be quite dangerous. There are gases and coal dust underground and if a fire starts, it steals all the oxygen. Recently, the rescue of the coal miners in PA caught the world’s attention as rescuers and emergency workers worked non-stop to stay alive until every man got out.
Mining is a dangerous business and safety is essential, and its productivity is high. Ground machines and robotics have made many mining operations in the United States profitable and much safer. Environmental issues are also a topic, as we have discussed. Things in the mining industry have changed significantly in the US in the last 25 years, the only question is; did they change too quickly? The reason we won WWII was because of our industrial production, we had the raw materials and the will and we could do everything here, are we sure we want to lose that kind of ability in the future, after all it’s still a cruel world, surely humanity hasn’t killed our own species yet, there will be more wars. The key issue in mining is the competition between third world countries that litter the environment and the environmental regulations that apply here. Today, in the United States, we have new innovations to protect the environment without slowing down the process. These new methods are expensive in the initial activation of the project, but usually, once started, they are phased out over a considerable period of time. Many colleges hire environmental engineers who specialize in mining. .
By doing this it is possible to do mining right, but environmental laws are not the only regulations that mining has to deal with, there are also OSHA laws and countless other regulations.
In this country, we have salt mines, uranium mines, zinc, lead, molybdenum, iron ore, copper, silver, gold, aluminum, etc. Some of what we should dig up is old computers, scrap and disposal of cars and aluminum. to old airliners parked in the desert.
America can compete if we drop the attitude and delays that result from frivolous lawsuits, bad law enforcement, and false regulations that are said to help the people when in reality they serve no free man. If you read Ayn Rand books, you can get an idea of this. Different places in the world have all the same minerals as we have here. Overall, we need to change our attitude towards mining issues. There are brilliant entrepreneurs, state-of-the-art equipment, smart industry consultants who can and do do their jobs without polluting, without harming the environment and still making a substantial profit. Who wins? We do so because world market prices for raw materials and resources dictate the cost and effectiveness of having them here in the country before we start making something of those resources and materials that is good for America. We should let these brilliant problem solvers in the name of profits help us figure out how to do it right, right now we are over-regulating and not listening to these new technologies and the thinking of those in the know.
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