Developing a Mining Business


Well the development of a
mine site is very complex and it’s complex for
a number of reasons. First and foremost is that
mining is a global business. If you’re developing a mine site
in Borneo or Papua New Guinea, it’s a completely different physical
environment than one might find if they were developing a mine site in
Northern Saskatchewan for example. So in order to understand what is needed to
finance these operations, they have to be in a position first of all to evaluate
the potential for a mine. Looking at the ore deposit itself, relying on geotechnical
and mining engineering and geological information and data
to provide some idea as to what the value of that deposit might be. And once they’ve established that value, then they bring their reports and
their evaluations to a financing body whether it is the head office of the
mining company where the decisions to finance the mine site are made,
or whether it is to an investment bank or to venture capitalists if it happens to be
a smaller organization that’s looking at developing the mine site. The evaluation that the engineers
and geologists provide represents the foundation of the proposal to raise capital. If the people who are providing
the capital believe what they see in terms of the evaluation of the mine site,
then the money is raised to develop it.

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