Mining industry

“ There are the usual paraphernalia of the mining industry, which we have already described in other places. In every direction there are mining-shafts and reduction-works, and for miles and miles around the country is full of prospecting holes, where gold has been sought but not found, at least in paying quantities. ”

“ All machinery for mining purposes is subject to only 11⁄2 per cent impost dues, the term machinery being stretched by the government to its uttermost possibilities to meet the mining industry, and it is made to include sheet lead, cyanide, etc. ”

“ Mining business, from an investment view, is of two sorts,—prospecting ventures and developed mines; that is, mines where little or no ore is exposed, and mines where a definite quantity of ore is measurable or can be reasonably anticipated. The great hazards and likewise the Aladdin caves of mining are mainly confined to the first class. Although all mines must pass through the prospecting stage, the great industry of metal production is based on developed mines, and it is these which should come into the purview of the non-professional investor. ”

“ It is true that much fraud has been prevented in the practice of taking up Government lands and it is also quite true that the Forest Service is endeavoring to uplift the mining industry in the western portions of the United States.
Mining is bound to become a still stronger factor in civilization as metallurgical processes multiply and there are discovered means of more economically extracting the valuable contents of ores. ”

“ It must be remembered that mining, though often so profitable, is nevertheless a destructive industry, thus differing from agriculture, which is productive, and manufactures, which are constructive. Every ton of stone broken and treated from even the best gold mine in the world makes that mine the poorer by one ton of valuable material; thus, to buy a mining property on its past reputation for productiveness is, as a rule, questionable policy, unless you know there is sufficient good ore in sight to cover the purchase cost and leave a profit. ”

“ These deposits are naturally the first to fail in productiveness, but the neighboring hills are formed of a gold-bearing quartz which is being crushed, night and day, by hundreds of powerful machines; and the works still pay ten thousand miners fair day-wages, besides giving the organized companies who employ them satisfactory dividends. Thus mining has been largely robbed of its adventurous character in this neighborhood, and perhaps also of most of its alluring charm, having become a sort of regular industry, like coal-mining, or even brick-making. ”

“ No one will think of carrying ore to the power when it is far more economical and profitable to carry power to the ore. In this connection the principle of the division of labour becomes very important. In its bearing upon the mining industry generally, whether in its application to the precious metals or to those which are termed the baser, and even in the work of raising coal and other non-metalliferous minerals, the fact that nearly all mines [Pg 183] occur in groups will greatly aid in determining the separation of the work of supplying power, as a distinct industry from that of mining. ”

“ The mining industry is the cornerstone of our economy, accounting for approximately 16 per cent of total exports, 4.6 per cent of gross domestic product and 100,000 high paying, skilled jobs. More jobs are created in urban centres from services and supply to the mining industry than in the actual mining communities. ”

“ The middle of the past century seems to have been a critical period in the mining industry of the earth. There was a great impetus given to mining by the greed for gold which caused the settlement of our western states and the Australian states, as already mentioned. But there gradually followed the opening up of mining in many other and hitherto unpopulated and uncivilized portions of the globe. ”

“ Looked at in a large way, the returns from the mineral industry are commensurate with the effort put into discovery and development of mineral resources, even though the returns to lucky individuals have been excessive. In respect to the importance of the human energy element, the mining of minerals is not unlike the cropping of soils. Some interesting economic studies have been made of mining districts to ascertain whether the total return has been equal to the total investments by both successful and unsuccessful participants. ”

“ But, while there are many mining companies—and successful ones, too—that hold upon their directorates men who probably never saw a mine prior to their present ventures, it may still be stated that it is obviously advisable to select for such places men who have knowledge and sound ideas concerning the industry of mining. ”

“ In the matter of circumstances, means, and paying results from mining, it has been shown, and it is incontestible, that the industry now stands, in every particular, upon a much more advantageous basis than it ever enjoyed. ”

“ But then, again, it is becoming plain to many experts in mining that, in working downwards from the surface itself, the future of their industry offers a wide field for the extension of the open-cut system. In proportion as power becomes cheaper, the expense attendant upon the removal of clay, sand, and rock for the purpose of laying bare the cap of a lode at a moderate depth becomes less formidable when balanced against the economy introduced by methods which admit of the miner working in the open air, although at the bottom of a kind of deep quarry. ”

“ It is to the public interest that deposits of mineral should not be permitted to remain idle and undeveloped. This has been recognized from the earliest times, and laws have been framed in all countries for the encouragement of mining enterprise. In many cases the state or the ruler has sought to obtain a share in the profits of mining, or even to work mines for the individual profit of the ruler or of the state. ”

“ After a mine is once opened and preparations have all been perfected to operate [106] upon a certain scale of output, it is quite essential that exploitation and production be maintained without material fluctuations, if the greatest economy is to be attained. Exploitation, i.e., development work, must be kept well in advance of actual mining operations to assure plenty of working space for the extraction of the normal output. ”

“ The ore as taken from the mine concentrates four tons into one, which has a gross value of one hundred dollars, and with the first concentrator, whose capacity was one hundred and twenty tons daily, returned three thousand dollars per day to the owners. The company employ one hundred and fifty men, and are well equipped for profitable mining. ”

“ Not so with silver and gold mines. They are most unreliable in both quality and quantity. Costly buildings and machinery are often erected to economize the mining of the ore, only to find no mine to operate by the time the buildings are completed and the machinery is working. ”

“ An ore must be an aggregate or association of natural [20] minerals, or a single mineral, from which metal may be profitably recovered. Mines are excavations in the earth from which ore, coal or gems are taken. Mining is the art or practice of operating mines.
Throughout the subject, we see the inseparable idea of profit. The work of carrying on operations in a railroad tunnel is not mining; the driving of adits through barren rocks to reach ore bodies is not mining; the sinking of shafts through worthless "wash" or rocks with a view of opening avenues for the removal of ore is not mining. ”

“ Given that the project has been determined upon, and that the enterprise has entered upon the second stage, that of determination of method of attack, the immediate commercial result limits the mining engineer's every plan and design to a greater degree than it does the other engineering specialists. The question of capital and profit dogs his every footstep, for all mines are ephemeral; the life of any given mine is short. Page 189 Metal mines have indeed the shortest lives of any. ”

“ Having considered the accepted definition of a mine, let us now extend our reasoning a little and inquire just what is meant by mining. At first thought, one would say that mining is, in a broad sense, the art or practice of excavating, at a profit, the ores of metals, the beds of coal, the gravels of placers and the deposits containing precious stones. Are we justified in letting this definition stand as it is? If we do not make any change, we must exclude all quarries, sand banks, clay pits, and the numerous sorts of works that are producing the non-metallic minerals of commerce. ”

“ Such companies, with superior mechanical facilities to do much labor, in a short space, will be enabled to go over the whole mineral field, although already dug over by individuals, and reap yet a rich reward of their efforts. And when there will be no more gold washing to be done, then a new era in the mining of the country will commence—we mean a regular system of mining by sinking shafts into the very bowels of the rocks will be entered upon. ”

“ Some mines cannot be economically operated without the treatment of the ores upon, or close to, the mining property. With certain sorts of low-grade ore, or with those kinds of ores that may be concentrated before shipment, provision should be early made for the erection of appropriately designed mills. We say the subject should be considered early, but we do not advocate the premature erection of any mill. ”

“ It may be taken as a safe axiom that to make gold-mining in the mine as distinct from mining on the Stock Exchange really profitable the same system of economy, of practical supervision, and scientific knowledge which is now adopted in all other businesses must be applied to the raising and extraction of the metal. Then, and not till then, will genuine mining take the place to which it is entitled amongst our industries. ”

“ Indeed, this system of mining partakes of the nature of quarrying rather than that of mining in the ordinary sense, the ore being scooped from the surface of the ground. One naturally thinks of a mine as being subterranean; but in the great open-pit mines in the Lake Superior region, which are the largest mines in the world, all the mining is done at the surface of the earth. ”

“ In irregular and uncertain deposits this work of development should be kept at all times so far in advance of mining operations as to ensure a regular and uniform output. In some cases, where the barren areas are large, it may be necessary to have two or three years’ supply of ore thus blocked out in advance. A mine, however, may be over-developed, which results in loss of interest on the capital unnecessarily locked up for years by excessive development, and involves additional cost for the maintenance of such openings until they are needed for active mining operations. ”

“ By the help of these and a vast number of other kindred inventions, the business of mining in all its branches has been revolutionised and transformed, even within the last half century. With the vast increase in the output of coal, and of ores, and the incalculable saving of hand labour, the number of operators has been increased in the same proportion, their wages increased, their hours of labour shortened, and their comforts multiplied in variety and quantity, with a diminished cost. ”

“ Mining may be said to begin whenever there is produced an output upon which there is some profit. Exploitation may be in valuable ground. If so, we may say that mining is in progress during the exploitation. The driving of levels or drifts in an ore body—or of entries in a bed of coal—produces the valuable products of the mine, and we may, therefore, consider that mining is taking place.
The driving of a crosscut through barren rock to reach an ore body is dead work; but the driving of a drift or level in a vein is either exploitation or mining. Dead work produces no ore. ”

“ The law of diminishing return applies therefore to mining, in a still more unqualified sense than to agriculture: but the antagonizing agency, that of improvements in production, also applies in a still greater degree. Mining operations are more susceptible of mechanical improvements than agricultural: the first great application of the steam-engine was to mining; and there are unlimited possibilities of improvement in the chemical processes by which the metals are extracted. ”

“ Since the extension of the railway systems and the establishment of a stable government, mining is again attracting a great deal of attention. The government encourages foreign investments in the mines. Many of the old bonanzas have been taken over by new companies with both good and bad results for the investors. The introduction of modern machinery has so reduced the cost of mining that lower grade ores can be profitably worked. ”

“ It is becoming more and more important for the active mining man to post himself upon the methods and economies of this latter-day mining practice. The development of this open or surface mining has introduced entirely new economic ideas. With no costs for timbering of mine passages, for ventilation, or for hoisting, and with a very material decrease in manual labor per ton mined, immense masses of rocks are now really ore, although a few years ago they were nothing but lean, country rock. ”

“ One means of providing against an extinction of a mining company's activity with the exhaustion of the ore bodies in the mines is to provide new mining territory to which operations may be transferred at the proper time. This plan has been very successfully carried out by a number of large mining companies. When a mining company has been maintaining its identity for a considerable period, it has reached a very desirable stage of economy in the make-up of its various lists of officials, superintendents and engineers. ”