2.4. Mining

The use of minerals in ancient times was largely confined to the making of tools, utensils and weapons. The actual development of mining began with the industrial revolution and its importance is continuously increasing.

The profitability of mining operations depends on two main factors:

1. Physical factors include the size, grade and the mode of occurrence of the deposits.

2. Economic factors such as the demand for the mineral, technology available and used, capital to develop infrastructure and the labour and transport costs.

The developed economies are retreating from mining, processing and refining stages of production due to high labour costs, while the developing countries with large labour force and striving for higher standard of living are becoming more important. Several countries of Africa and few of South America and Asia have over fifty per cent of the earnings from minerals alone.