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examBoard: Cambridge
examType: IGCSE
lessonTitle: Factors Affecting Extraction Decisions I
Mining and quarrying operations don't just happen anywhere. Companies and governments must carefully weigh up multiple factors before deciding whether extracting rocks and minerals from a particular location is worthwhile. These decisions involve balancing geological realities with economic, environmental, social and technological considerations.
Key Definitions:
Mining companies want to make profits, but they must also consider environmental impacts. The balance between economic gain and environmental protection is often at the heart of extraction decisions. Modern mining aims to be profitable while minimising damage to ecosystems and communities.
While minerals may be needed globally for manufacturing and technology, local communities might face disruption from mining operations. Decision-makers must consider both the wider benefits to society and the specific impacts on people living near extraction sites.
The physical characteristics of a mineral deposit are fundamental to extraction decisions. No matter how valuable a mineral might be, if it's too difficult to access, extraction may not be feasible.
Higher concentrations of the target mineral (grade) make extraction more profitable. For example, gold mines can be economical with just a few grams of gold per tonne of rock, while iron ore typically needs concentrations of 30% or higher.
Larger deposits allow for longer mine life and greater total extraction. A small deposit might not justify the investment in infrastructure, even if the grade is high. The Kiruna iron ore mine in Sweden has been operating since 1898 because of its massive size.
Shallow deposits are cheaper to access than deep ones. The deeper you go, the more expensive and technically challenging extraction becomes. South Africa's gold mines reach depths of up to 4km, requiring sophisticated cooling systems for workers.
Other geological factors include the physical structure of the rock (is it stable or likely to collapse?), the presence of groundwater (which may need pumping) and the amount of waste rock that must be removed to access the valuable minerals.
Mining is ultimately a business and economic considerations heavily influence extraction decisions.
Even the richest mineral deposit won't be mined if the economics don't add up. Companies must consider both immediate costs and long-term financial prospects.
The current and projected price of the mineral directly affects profitability. For example, rare earth elements were once rarely mined despite their name, but skyrocketing demand for electronics has made their extraction much more profitable. Commodity prices can fluctuate dramatically, making long-term planning challenging.
Starting a mine requires massive investment in equipment, infrastructure and labour. Operating costs include energy, maintenance, labour and processing. The Bingham Canyon copper mine in Utah required billions in initial investment but has been operating profitably since 1906 due to its massive scale and efficient operations.
The proposed Carmichael coal mine in Queensland, Australia, highlights how extraction decisions involve complex trade-offs. The project promised economic benefits including jobs and tax revenue. However, it faced fierce opposition due to potential impacts on the Great Barrier Reef, groundwater systems and its contribution to climate change through coal burning. The company had to scale back plans significantly as environmental concerns and changing coal markets affected the project's economic viability. This case demonstrates how geological, economic, environmental and social factors all interact in extraction decisions.
Technology can make previously uneconomic deposits viable for extraction. Advances in mining equipment, processing techniques and safety systems continually change what's possible.
Throughout history, technological breakthroughs have revolutionised mining. From the steam engines that allowed deeper mining in the 1800s to today's automated equipment, technology shapes what can be extracted and how.
Different minerals require different extraction approaches. Open-pit mining works for near-surface deposits, while underground mining accesses deeper resources. In-situ leaching uses chemicals to dissolve and extract minerals without removing rock. The method chosen depends on the deposit characteristics and available technology.
After extraction, minerals must be separated from waste rock. Modern processing can make lower-grade ores profitable by efficiently separating small amounts of valuable minerals. For example, copper mines today can profitably process ore with less than 1% copper content, whereas historically 3% was considered the minimum.
Environmental impacts have become increasingly important in extraction decisions, both due to regulations and public expectations.
Mining inevitably alters the natural environment, but the extent and type of impact vary greatly depending on the location, extraction method and mitigation measures employed.
Mining in sensitive ecosystems can threaten endangered species and habitats. Companies must assess biodiversity impacts and may need to create offset areas or restoration plans. Mining is now restricted in many protected areas worldwide.
Mining can affect both water quantity (through usage and altering flow patterns) and quality (through potential contamination). Acid mine drainage, where sulfides in exposed rock create acidic water, is a particular concern requiring careful management.
Modern extraction plans must include provisions for restoring the land after mining ends. The cost of reclamation is factored into initial feasibility studies. Successful reclamation can transform former mines into wildlife habitats, recreational areas, or even agricultural land.
Mining doesn't happen in isolation from society. Local communities, governments and other stakeholders all influence extraction decisions.
Beyond legal permits, mining companies need community acceptance a "social license to operate." Without local support, projects face delays, protests and potential failure. Companies increasingly engage with communities early in planning to address concerns and share benefits.
Government policies, taxes and regulations significantly impact extraction decisions. Countries with stable, clear regulations tend to attract more mining investment than those with unpredictable rules. Environmental regulations have generally become stricter worldwide, requiring more thorough impact assessments before extraction can begin.
The proposed Pebble Mine in Alaska contains one of the world's largest undeveloped copper and gold deposits. Despite its potential economic value, the project has faced intense opposition because of its location near Bristol Bay, home to the world's largest sockeye salmon fishery. Local communities, fishing industry representatives and environmental groups have argued that the risk to this valuable ecosystem and traditional ways of life outweighs the economic benefits. This case shows how even geologically promising deposits may remain unexploited when environmental and social concerns are significant.
Extraction decisions involve weighing all these factors together. Companies typically follow a staged approach:
Throughout this process, companies must consider all the geological, economic, technological, environmental and social factors we've discussed. The final decision represents a complex balance of these sometimes competing considerations.
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