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The flow of natural resources and raw materials

There are many reasons why we should be collecting our own raw materials that already exist in this country, rather than importing them, whenever feasible or possible. When there are reasons that prevent us from collecting these natural resources within our own country, then and only then should we look to our trading partners to supply us with such raw materials and resources. When we can extract those raw materials within our borders and transport them short distances to processing facilities, manufacturing factories, refineries, power plants, and shipping ports or railways to export quickly and profitably. In our country we have seen the loss of most of our mining in the last 40 years. Some were due to the Federal Clean Water Act in 1972, which was to prevent contamination from things like open pit mining.

Many other mines, drilling rigs and plants were closed due to cost. 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 mining have been overwhelming. Reviewing the recent closure of the gold mine in Butte, MT, we found that the mine was closed due to increasing energy costs to crush the rocks and extract the gold. Energy costs went from $ 280,000 per month to 1.6 million per month. Sure there were other problems, although imagine receiving the electricity bill and trying to manage your expenses. Unpredictable energy costs are necessary for mining and other heavy industries, price spikes in addition to regulations are a death nail.

Now in many countries people have protested against mines, gold and silver are easy to protest because they are associated with greed, since those 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 over 300 gold mines in North Carolina in the 1820s. This, of course, long before the 49’ers of CA. The Reed mine was active until 1912. A total of 13 gold mines closed in the past two years in response to depressed gold prices or mineral depletion in Canada. Collecting gold under the conditions required in most of North America is no longer feasible, unless it can be collected alongside other precious metals and the remaining material can be further sifted for iron ore, copper, or other metal. There are several places on Earth where multiple metals appear in very close proximity. Mining, like many industrial endeavors, can often cause air pollution. When the excess that is not used is removed, it piles up and often seeps into the ground when it rains, those other minerals released are more concentrated than much of the normal waters downstream.

This is because minerals have been buried for centuries in layers from earlier periods. At the old Berkeley Pit, a closed copper mine not far from Sunlight Goldmine in Montana, the rainwater mixing with the minerals left at the bottom of the pit was quite toxic and contained arsenic, which is harmful in large amounts for humans. And animals. Although arsenic is a poison, it is part of the natural minerals present in nature and is common in that area. Small trails aren’t bad, but once they get too high it’s cause for alarm.

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Transportation costs are also important in mining. Most of the mines that still operate today are very close to the main rail lines, even with all the regulations and rules that exist, there is still some 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 of up to 134 degrees. Mojave. This is an illustration of why the transport factor is fundamental in the efficiency of mining to keep down the costs of the factories, which use raw material or natural resources.

If you look at landmines in North America, those with rail service directly to the site can compete if economies of scale and market prices remain stable. There are many other factors to consider as well, for example if your other countries do not have the same rules for environmental controls, they can often sell those raw materials to other countries which in turn can sell their finished products such as special alloys, steel. , etc. at prices lower than what your companies can produce. That would appear to be dumping; selling their products for less costs them to produce. Many countries prop up such industries with huge tax incentives or by subsidizing those industries and / or companies. There are many reasons for this, sometimes it is simply to ensure that those companies are in business to sell products to government agencies in countries for infrastructure projects. Other times it is to appease the workforce and provide jobs. Sometimes it is in retaliation for a perceived or actual trade war from another trading partner country, which is propping up one of its other industries. The dynamics of world trade in; industry, peace, quality of life of the populations, flow of money, raw materials and natural resources; They are quite extensive, as you may have guessed.

If you look at the above ground coal mines in; Gillette, WY; you can see a perfect example of how mining works when all is well. Hundreds and hundreds of entire trains depart weekly 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 is taken into account, it is now a pure science in efficiency. It is amazing how far we have come in the last few centuries. The deepest coal mine in the world is located more than 5000 feet underground in the UK. Many in the United States are more than 1,200 feet deep, most of them closed and now few are left. There is a mine in Alabama, which is the deepest vertical shaft coal mine in North America, operating 2,140 feet below the surface. It is difficult for the coal mines in Washington State, Pennsylvania, West Virginia and Alabama to compete with the incredible economies of scale of the Gillette WY Air Mine. Underground coal mines can be quite dangerous. There are gases under the ground and coal dust and if a fire breaks out all the oxygen is robbed. Recently, the rescue of coal miners in the Palestinian Authority caught the world’s attention as rescuers and head-to-head rescuers worked non-stop to stay alive until all the men got out.

Mining is a dangerous business and safety is essential and comes at a high cost in productivity. Above ground machinery and robotics have made many mining efforts in the United States profitable and much safer. Also in question, as we have commented, are environmental issues. Things in the mining industry have changed significantly in the United States in the last 25 years, the only question is; Did they change too fast? The reason we won WWII was because of our industrial production, we had the raw materials and the will and we were able to do it all here, we are sure that we wish to lose that ability in the future, after all, it is still a world cruel, the human race surely has not finished killing our own species yet, there will be more wars. The key issue in mining is competition between third world countries destroying the environment and our environmental regulations in force here. Today in America, we have new innovations to protect the environment without slowing down the process. These new methods are expensive in the original capitalization of a project, but typically pay for themselves over a significant period once started. Many universities are creating environmental engineers specializing in mining. .

By doing this, the job of mining properly is doable, but environmental laws aren’t the only regulations mining operations have to deal with – OSHA laws and a myriad of other rules also exist.

In this country we have Salt Mines, Uranium Mines, Zinc, Lead, Molybdenum, Iron Ore, Copper, Silver, Gold, Aluminum, etc. Some of what we should be mining are old computers, car scrap and scrap, and Aluminum in old airplanes parked in the desert.

America can compete, if we abandon the attitude and delays caused by frivolous lawsuits, bad laws, and bogus regulations that are said to help people when in reality they serve no free man. If you read Ayn Rand’s books, you can get an idea of ​​this. Different places in the world have the same minerals that we have here. In general, we have to change our attitude on the problems of mining, there are some brilliant entrepreneurs out there, state-of-the-art equipment, smart industrial consultants who can and will do the job without polluting, without harming the environment and still become a considerable profit. Who wins? We do it, because world prices for raw materials and resources dictate the cost and efficiency of having it here in the country before we start doing something with these resources and materials that is good for America. We should allow these brilliant problem solvers in the name of profit to help us figure out how to get it right, we are currently over-regulating and not listening to these new technologies and the thinking of those in the know.

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