Mining: Risks and Rewards

Today’s post is brought to you by Ausenco.

Mining has been a popular way to pull minerals from the ground for thousands of years, and it is still being used extensively today. While mining used to focus around coal and gold – and still does, in some places – a lot of the mining that happens today, in connection with companies like Ausenco, is focused more on finding oil. The world’s infrastructure is dependent on oil as a power source for many reasons. The oil wells that have been used for decades are slowly drying up, as any well will, so the push to find new sources has never been more important. The overall supply of oil in the world is not as low as people think; it is just a matter of getting to it.

When deciding to open a new mine or go on an expedition, one thing that companies have to do is to sit back and assess the risks and rewards of the project. This tells them if it is worth it or not, and they can then move forward in whatever direction is best for the company. Below are a few of the things that they have to think about.

It all starts with looking at the possible gains and weighing them against what is going to be spent. If an expedition is hoping to find $1 million in crude oil but it is going to cost $4 million to get the team in place, travel to the right location, drill the well, and build all of the necessary pipelines, it would not be worth it.  They also have to factor in the damage that can be done to the local environment and weigh the cost if they can safely drill without causing creating a large footprint in that environment.

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