Archive for October, 2011

Mining Company Risk

In the past I have discussed some risks associated with the junior mining sector. In this article it is important to recognize what has been reported in the past about mining operations in Venezuela.

As countries discover that they have real assets that are meaningful there is some likelihood that these mines or mining projects may come under increasing political pressure. For example recently Australia announced a proposed tax of 40% on producing mines. Although a proposal at this point, it is verification of the point I am making.

For a historic example, the International Business Times article a few years back stated, “Hecla Mining’s Isidora gold mine is the third operation in just one week in Venezuela’s mineral rich Bolivar State to suffer a roadblock. Venezuelan workers have stalled operations of the country’s largest gold miner, citing poor working conditions and demanding that President Hugo Chavez nationalize the mine.”

I interviewed Laura Skaer of the Northwest Mining Association to look at some potential mining law changes that are proposed in the United States. But I went on to state that we forecast more difficulty in the mining sector on a worldwide basis. The Hecla situation was resolved but not to Hecla’s or the mining industries benefit. I consider it my duty to give you the big picture and the long-term perspective. Most people do not follow the mining industry closely but some proposed changes have potential long-range effects.

Every now and then The U.S. House of Representatives proposes a bill that can impact the mining industry. In this era of a “jobless” recovery any industry within the U.S. is vital to all concerned. For those with a bent toward the “green” sector let me agree, but also state – “If it can’t be grown it has to be mined.”

There is a great deal of misinformation and outright lies about the mining industry. In today’s world most (not all) mining activity is done in a way that impacts the environment in the least obtrusive way, and in almost all cases (under U.S. standards) the property is brought back to the natural conditions after the mining is completed. This is a fact that very few other than those in the industry are actually aware.

Again there are exceptions, but for the most part the fact is, modern life demands metals and rare earths to function. An excellent review of the truth about the current state of mining affairs is a documentary film titled “Mine your own Business.” If you can rent this DVD it is highly recommend as it tells the real story of mining from a completely independent source.

My concern goes beyond the United States when I ask, “What is to prevent Mexico, South America, Canada or Australia from looking to impose new mining legislation that profits government and hinders the mining industry?” Obviously, as stated earlier Australia already has, who is to follow next?

We suggest that those in the industry take our lead and get this message out to the press, radio, and even the business television audience. This, in our view, is the most important issue in the mining industry today, and hardly anyone is talking about it. It might just be one of the reasons the junior miners are doing so poorly. Perhaps the market senses some very detrimental legislation over the next few years.

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Mining Industry and Water Protection

Modern mines collect veins of materials, which have been trapped over millions of years in the sediment. Once out in the open they can get into the ground water and move down hill with the normal erosion patterns and water flows. This is because the minerals have been buried for centuries underneath in layers from previous periods. In the old Berkeley Pit, a copper mine which is closed not far from the Sunlight Goldmine in Montana, the rain water mixing with the minerals left in the bottom of the Pit was quite toxic and contained arsenic, which is harmful in large amounts to humans and animals. Although arsenic is a poison, it is part of the natural occurring minerals in nature and common to that area. Small traces are not to bad, but once they become to high it is cause for alarm.

Most of the Copper Mines in the United States have been closed. Such as the famous old mine in AZ, Bisbee Mine. Arizona at one time had many copper mines. In 1972 Congress passes the Federal Clean Water Act to protect our fresh water supplies from mining waste. Years later many had become Super Fund Sites. Today our modern technologies can prevent pollution and still allow for mining, but since most have been closed and other nations are now in the Global Market selling these materials and there is little chance for the United States which was once a power house in mining to get back into the game.

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Advertised positions in the mining industry tend to attract skilled workers, there is still very much the need for unskilled workers. Many people are looking to start their career in an entry level position in the Australia mining industry often struggle to determine the best entry level position to gain employment in and what training or tickets they are required to hold.

Taking up unskilled entry level Australia mining jobs is often a great way to gain some experience working within the Australia mining industry as well as an opportunity to up skill and gain some training. An unskilled mining job is also a great method for skilled workers to gain entry into the mining industry and gain some mining specific skills to further their mining careers.

A number of unskilled mine jobs will require that you are physically fit due to the labour intensive tasks that you may be required to perform. However not all unskilled positions require a high level of physical fitness but you must be able to work long hours in sometimes difficult environments. You must also be able to follow instructions well and be committed to safety as you will have to work in a dangerous environment.

A unskilled labourer, aside from performing labour intensive tasks may also be required to operator certain machinery or drive trucks. Holding a truck licence or tickets can be of an advantage to you. Similar to other mining jobs in the industry, usually you will be required to work 12 hour shifts and work on a rostered basis. The roster that you will have depends on the company that you gain employment with. Some of the more common rosters include 3 weeks on and 1 week off as well as 9 days on and 5 days off.

There are a wide range of entry level mining jobs in the Australian mining industry. These range from more of a labouring position such as sample preparers, drillers assistants, trade assistants and general labouring positions. There are also entry level positions available for catering staff, cleaning staff and even office staff. Working in entry level mining jobs, you can still expect to earn a good income. The more experience you gain in an entry llevel position – the better your chances to move into a higher paying career.

To gain entry level mine jobs, you may still be required to meet certain requirements by mining companies. This may include undertaking certain training and having the right certificates and licenses. If you are serious about starting your career in entry level Australia mining jobs, it is important to ensure that you obtain the right advice. There is a lot to know before you start apply for jobs. Gaining the right advice can minimise your job searching time as well as ensuring that you are applying for the right jobs for you.

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