Question

How do mining companies make money?

Answer 1

Hint: Mining is the process of extracting valuable minerals. Setting a mine requires a lot of things, like proper study, geological work, capital investments, etc.

Complete answer: The process of extracting valuable minerals or other geological materials from the earth is known as Mining. From a deposit, ore body, vein, reef, seam the extraction takes place. Mining is done to obtain a material that cannot be grown through the processes of agriculture, or cannot be produced in factories, etc.

Limestone, coal, metals, rock salt, potash, clay, chalk, oil shade, gravel, etc are the ores that are recovered by the process of mining. The extraction of non-renewable resources, natural resources that cannot be manufactured quickly such as natural gas, petroleum, are also included in mining.

The following are the ways through which the mining companies make money:-
-The mining deposits on which small and medium-sized mining companies work are economic. The mining companies perform some geological work to figure out whether the site is favorable or not. Once the future looks satisfactory, the small mining companies try to deal with larger mining companies to initiate the work.
-From smaller companies or geological experts, the larger mining companies acquire mineral prospects. After this, they try to raise capital or funds through investments to set up a mine. After the setup of mines, the process of mining starts by which companies earn money.

Note: In India, one of the major economic activities is mining. In the largest mineral producing nation, our country is ranked fifth. India is one of the largest exporters of bauxite, Iron ore, mica, etc. in the world.