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The Challenges of Mineral Exploration in North America

June 13, 2013

The Challenges of Mineral Exploration in NA
There is no doubt that mineral exploration in North America is at an all time high, and is set to increase in the near future. Most analysts will agree that the recently discovered mineral deposits of various metals and much-needed chemicals in different industries, has attracted billions of dollars in investments. In fact, amongst all the North American countries, Canada is increasingly becoming a favorite mining destination due to its immense deposits of oil, metals, and other minerals that are in high demand in many industries. However, despite the great advances in the mining industry as well as growing demand for mineral products, it is a fact that mineral exploration in North America still faces challenges that cannot be ignored.
 
Even with the large deposits of minerals, there is still the controversial question of getting the favorable legislation to mine the minerals at economically viable rates. It is not a secret anymore that many mineral companies spend a lot of resources on lobbying just to ensure that their mining activities are not hampered by anti-mining entities that threaten to shut them down. There are many environmental groups and organizations that campaign heavily to stop further mineral exploration and mining activities in the interest of protecting an already delicate and imbalanced ecosystem. While they can bring valid points to consider, it is a fact that when mineral exploration and mining activities are well managed, the environment need not suffer any harm, and many people's lives can actually be enhanced by these mining activities.
 
The guarantee of certain targeted prices in the market after mineral exploration and mining activities is also a great challenge to many mining companies. It is true that mineral exploration usually takes a lot of time, and huge capital investments; that has to be borrowed from commercial banks or even governments. While the cost of borrowing may be economically viable, the guarantee of selling the minerals at target prices may pose a huge and hard-to-manage risk to the mineral companies. It is a fact that predicting the direction of prices in the market and hedging against similar risks is a skill in itself, and companies usually end up paying top dollar for talented individuals in the realm of financial and economic management.
 
Some mining companies opt to include energy futures as a hedging strategy as well as a means to make more money for their products. Others use a variety of innovative financial tools to achieve the same result. It is true that controlling the cost of mineral extraction is also critical to the success of the business. Using up-to-date drilling products and cost-effective drilling fluids can save the company huge sums of money in the long run. PVC Plus products offer great solutions at cost effective prices. Give us a call today, and see how we can help you on your next drilling project.

 

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