Mining is an industry dedicated to the extraction of natural
resources and here is where everything starts. Mining companies usually have to
pay royalties to governments which are some kind of taxes that they pay based
on their profit and the amount of minerals extracted from the ground. Mining
companies usually face environmental regulation enforced by governments, this
is done so the land won't be poisoned or polluted. Mining companies usually spend a great deal of
money and time in accomplishing all these regulations. Governments play a huge
role in the amount of mining investors, because of the royalties; mining
companies will decide whether to invest in a certain place or not based on the
royalties that they will have to pay. Also, the ownership of the mineral which
is determined by the governments plays a huge role in whether mining companies
will invest or not. Also, mining companies tend to stay away from unstable
governments because the government could take over the mining place and it
would be a huge lost for the company. In other words, mining companies will
only invest where the government is friendly a reasonable. Demonstrations are
another factor that affects the mining companies because usually people living
in the surrounding areas of the mining camps will demonstrate to get some good
or service from the mining company. For example, a mining company comes to this
place and they do their studies on the land and conclude that it is rich in
mineral recourses, then they have to apply for permits from the government to
extra the mineral, then they have to invest huge amount of money in environmental
regulations, make happy the people in the surrounding areas by offering
services like roads, water system, jobs, etc. And finally they have to pay
royalties to the government. In other words, the mining companies have to give
a ton benefits to people and entities that won't help them more profits. It
looks unfair for mining companies but they help a lot of people and still make
profit. In other words they work more in public relations than in extracting
minerals because they usually focus on pleasing everybody that can harm their business
directly or indirectly and after they have accomplished that goal they can
start to extract those precious metals.
Very interesting.
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