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The dominant forces that affect the mining industry in today's economy are globalization, entrepreneurship, and unprecedented minerals availability. The current malaise and diminished economic importance of the base and precious metal mining industry in the world economy are the result of ongoing, longterm trends. Shifting market forces within a changed geopolitical landscape have resulted in excess supplies and reduced demands for high-unit-value mineral products and for geologists and engineers in the exploration and mining industries. Although these changes are still evolving, professionals and the mining companies that employ them must realize that these changes are irreversible.

Mining has five dominant characteristics: (1) it is essential to society, (2) it is effective in keeping society supplied with abundant, low-cost mineral products, (3) historically, it has been wealth destructive for investors, (4) it has been subsidized, and (5) it is shaped by social and political forces. What is different now is that instead of being subsidized, the industry is being handicapped by governments and abandoned by investors. The industry has reacted to a marketing problem with an inappropriate strategy of cost reduction and increased production. The increased supply has resulted in decreased prices. Mining companies are earning low or negative rates of return.

Remedies for the larger mining companies and the high-unit-value metals businesses include:

  1. Exemplary behavior to regain the trust of the public, governments and investors;

  2. Continued consolidation to become sector leaders;

  3. Profit through value-added vertical integration and direct marketing to consumers;

  4. Development of innovative consumer-based financing mechanisms, especially for exploration ventures.

Individuals and small groups that have been displaced from the mainstream must become entrepreneurs. They must engineer their own survival by shifting careers or by finding, developing, and capitalizing on exploration and production opportunities that are unrecognized by, or are too small for, the major companies.

The mining industry is here to stay. It is too necessary to society to be abandoned; however, the future size and shape of the industry will probably be unrecognizable to most of us. It will be leaner and more opportunistic. It will be characterized by entrepreneurial corporations of all sizes that dominate niches and sectors and that anticipate and profit from the changing needs of society

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