Mineral mining and exploration industry have grown exponentially throughout time. Mining activities are essential in accelerating the community’s economic growth. However, the scale of the mineral projects may present several challenges both for the ecosystem and the local environment. These are impacting the long-time debate on mining.
Mining Companies and Organizations
There is a growing number of mining companies that are implementing sustainable methods and considering the environments and communities that they’re operating in.
Aside from environmental, societal and political factors that are in play, the quality of the mineral projects become more difficult to find. Oftentimes, prospectors have to go to remote locations which are at times, dangerous only to find acceptable projects.
Mining Level Category
The major miners are basically companies that are operating at large-scale projects and with global reach. Major players are conducting exploration activities that seek new form of revenue or to upgrade their current resources.
Then there is the mid-tier miners with a smaller market cap than of major miners. They oftentimes have one and/or several projects running simultaneously.
Lastly is the junior miners. They normally consist of professional teams that are exploring mineral deposits and as soon as it’s identified, they are developing them to prove that there’s a resource that could be extracted and gathered for economic advantage.
The junior minor will normally solicit a partnership or is also termed as a “Joint Venture” with a bigger mining group that has enough resources and expertise in constructing and operating a mine. These kinds of partnership agreement comes in several forms and normally, ends in a very lucrative project for both parties.
Capital market is important in funding the startup and/or the expansion of a business. After all, this isn’t just applicable to mining companies but to any other businesses too whether it is wholesale kitchen cabinets Texas, restaurants, precious stones and so forth. As a matter of fact, many of the biggest and most popular companies of today would not be where they are now without capital.
This is the exact same reason why junior miners typically make partnerships with bigger mining companies to have the funds they need for the project.