What Happened to the Mining Industry in the US?

The Flow of Natural Resources and Raw Materials is vital to our nations Industrial Capacity and Job base. There are many reasons why we should be harvesting our own raw materials that already exist in this country, rather than importing them, whenever it is feasible or possible. When there are reasons, which prevent us from doing the collecting of those natural resources within our own country, then and only then should we look towards our trading partners to supply us such raw materials and resources.

When we can mine such raw materials within our borders and transport them short distances to the processing facilities, manufacturing factories, refineries, energy power plants and shipping ports or railroads for exporting at an expeditious and cost effective manner, we should. In our country we have seen the loss of most of our mining in the last 40 years. Some was due to Federal Clean Water Act in 1972, which was to prevent the pollution from things like strip mining.

Many other mines, drilling rigs and plants were closed due to the cost. This was often due to the World market price for the minerals or natural resource. Much of the mining was shut down due to regulations, labor costs, labor unions, OSHA rules, etc. Some examples of the problems of cost in mining have been overwhelming. When reviewing the recent closing of the Gold Mine in Butte, MT we find that the mine was closed due to the increasing costs of energy to crush the rocks to get the gold out. There costs in energy went from $280,000 per month to 1.6 million per month. Sure there were other issues although imagine getting that electricity bill and trying to manage your expenses? Unpredictable energy costs are necessary for mining and other heavy industry, price spikes on top of over regulations is a death nail.

Such over regulation has inadvertently caused the off shoring of America’s industrial might. Without mining near by the raw materials are expensive to transport, so thing are made closer to those raw materials. So in fact we are to blame for our manufacturing and industrial industry losses. We allowed over regulation and linear thought to make us weak. Think about it, this article was written on my visit to China; yep, made in China.

Read the rest of this entry »

The Coal Mining Industry And Investing In It

The History Of Coal Usage

Coal was initially used as a domestic fuel, until the industrial revolution, when coal became an integral part of manufacturing for creating electricity, transportation, heating and molding purposes. The large scale mining aspect of coal was introduced around the 18th century, and Britain was the first nation to successfully use advanced coal mining techniques, which involved underground excavation and mining.

Initially coal was scraped off the surface by different processes like drift and shaft mining. This has been done for centuries, and since the demand was quite low, these mining processes were more than enough to accommodate the demand in the market.

However, when the practical uses of using coal as fuel sparked industrial revolution, the demand for coal rose abruptly, leading to severe shortage of the coal output, gradually paving the way for new ways to extract coal from under the ground.

Coal became a popular fuel for all purposes, even to this day, due to their abundance and their ability to produce more energy per mass than other conventional solid fuels like wood. This was important as far as transportation, creating electricity and manufacturing processes are concerned, which allowed industries to use up less space and increase productivity. The usage of coal started to dwindle once alternate energies such as oil and gas began to be used in almost all processes, however, coal is still a primary fuel source for manufacturing processes to this day.

The Process Of Coal Mining

Extracting coal is a difficult and complex process. Coal is a natural resource, a fossil fuel that is a result of millions of years of decay of plants and living organisms under the ground. Some can be found on the surface, while other coal deposits are found deep underground.

Coal mining or extraction comes broadly in two different processes, surface mining, and deep excavation. The method of excavation depends on a number of different factors, such as the depth of the coal deposit below the ground, geological factors such as soil composition, topography, climate, available local resources, etc.

Surface mining is used to scrape off coal that is available on the surface, or just a few feet underground. This can even include mountains of coal deposit, which is extracted by using explosives and blowing up the mountains, later collecting the fragmented coal and process them.

Deep underground mining makes use of underground tunnels, which is built, or dug through, to reach the center of the coal deposit, from where the coal is dug out and brought to the surface by coal workers. This is perhaps the most dangerous excavation procedure, where the lives of all the miners are constantly at a risk.

Investing In Coal

Investing in coal is a safe bet. There are still large reserves of coal deposits around the world, and due to the popularity, coal will be continued to be used as fuel for manufacturing process. Every piece of investment you make in any sort of industry or a manufacturing process ultimately depends on the amount of output the industry can deliver, which is dependent on the usage of any form of fuel, and in most cases, coal.

One might argue that coal usage leads to pollution and lower standards of hygiene for coal workers. This was arguably true in former years; however, newer coal mining companies are taking steps to assure that the environmental aspects of coal mining and usage are kept minimized, all the while providing better working environment and benefits package for their workers. If you can find a mining company that promises all these, and the one that also works within the law, you can be assured safety for your investments in coal.

Read the rest of this entry »