# Mining and quarrying: how the industry works Canonical: https://industrywiki.org/industry/mining/ Published: 2026-10-26 Mines extract useful material from deposits and separate it from waste. Geology, grade, recovery, access, processing capacity, and closure obligations determine whether a deposit becomes a viable business. ## scope Covers extraction and initial processing of metal ores and industrial minerals, including quarrying. Oil and gas extraction is a separate profile. Mining methods and permits vary by deposit and jurisdiction; environmental sources below include U.S. and regional guidance. ## segments ### name Surface mines and quarries ### description Remove material accessible from the surface. Overburden, pit geometry, haul distance, and waste movement affect economics. ### name Underground mines ### description Access deeper deposits through shafts, declines, or other workings. Ground conditions, ventilation, and development constrain output. ### name Processing and concentration ### description Separates valuable material using a deposit-specific route. A mine may sell ore, concentrate, or a more refined product. ## flow ### name Evaluate and develop ### description Characterize the deposit, test processing behavior, plan access and waste management, obtain approvals, and build infrastructure. ### name Extract and move ### description Drill, blast, cut, or otherwise recover material; separate ore from waste and transport it to stockpiles or processing. ### name Concentrate and recover ### description Crush, grind, sort, or use other appropriate separation processes. Recovery measures how much contained valuable material becomes product. ### name Sell and manage liabilities ### description Grade and ship product under customer terms while managing water, waste rock, tailings, rehabilitation, and eventual closure. ## economics ### revenue Unit A tonne of ore or concentrate, or a unit of payable metal/mineral, adjusted for grade, impurities, treatment charges, and contract terms. ### payers Smelters, refiners, manufacturers, traders, and construction-material users. Contained metal is not always fully payable metal. ### costs #### name Extraction and movement #### explanation Development, drilling, blasting, loading, haulage, and waste removal vary with depth, geometry, and ground conditions. #### name Processing and stewardship #### explanation Comminution, reagents, energy, water management, tailings storage, maintenance, and rehabilitation affect lifecycle economics. ### capital Access development, processing plants, power, water, transport, and waste facilities require investment before dependable revenue. A deposit can be valuable yet uneconomic to develop. ### working Capital Ore stockpiles, product awaiting assay or shipment, spare parts, and customer settlement delays tie up cash. Development and closure spending are not captured by short-run production margins. ### mechanism Recovered output depends on tonnes processed, grade, and recovery. A fall in grade can require more rock, energy, and waste handling for the same product quantity. Throughput and recovery can also trade off, so maximizing tonnes alone may reduce value. ## operations ### activities - Geological modeling and mine planning - Extraction, maintenance, and process control - Water, tailings, and rehabilitation management ### assets - Mine workings and haulage equipment - Processing plants and engineered waste facilities ### roles - Geologists and mining engineers - Metallurgists, operators, and environmental specialists ### records - Assays, ore-control plans, and production surveys - Processing balances, inspections, and waste-management records ### software - Resource modeling and mine scheduling - Fleet dispatch and process monitoring ### metrics #### name Head grade #### definition Valuable material concentration in feed entering the process. #### why Shows how much potential product is carried by each tonne. #### name Recovery #### definition Recovered valuable material divided by valuable material in the feed. #### why Connects metallurgy to output; it is not the same as concentrate grade. #### name Stripping ratio #### definition Waste moved relative to ore mined, with units and basis stated. #### why Reveals a key surface-mining cost driver. ## structure - A mineral resource estimate is not a promise of profitable production. Commodity prices, processing behavior, infrastructure, environmental obligations, and financing can change the economic boundary of a deposit. - Mines are geographically fixed, while customers and prices may be global. Nearby infrastructure can transform project economics, but a larger plant cannot remove geological uncertainty. Production schedules also affect which grades are mined now and which remain for later years. ## risks ### risk Geological or recovery shortfall ### mechanism Actual ore quality or processing behavior differs from the plan, reducing saleable output or increasing cost. ### risk Safety and ground instability ### mechanism Ground failure, equipment incidents, or inadequate controls can harm workers and halt production. ### risk Water or tailings failure ### mechanism Waste facilities and drainage create long-lived environmental and safety obligations extending beyond the last sale. ## dependencies ### upstream #### slug electric-utilities #### label Electric utilities #### relationship Power processing and other mine systems. #### slug oil-gas #### label Oil and gas #### relationship Supply fuels used by mobile equipment and logistics. ### downstream #### slug steel #### label Steel #### relationship Uses iron ore and other mineral inputs. #### slug cement #### label Cement #### relationship Uses limestone and other quarried materials. ### substitutes #### label Recycled materials #### relationship Can replace some primary mineral demand, depending on collection, purity, product requirements, and recovery economics. ## worked Example ### title Grade and recovery are separate levers ### assumptions - Illustrative metal ore: 100,000 tonnes processed at 1% grade and 90% recovery. - A second case has 0.8% grade at the same tonnes and recovery. ### calculation - First case: 100,000 × 0.01 × 0.90 = 900 tonnes recovered metal. - Second case: 100,000 × 0.008 × 0.90 = 720 tonnes recovered metal. ### takeaway The same processing throughput produces 20% less recovered metal. The calculation excludes payability, refining losses, and changes in cost. ## scenario ### change Ore hardness increases while the plant equipment is unchanged. ### effects - Grinding may require more energy per tonne or processing throughput may fall. - The mine must reconcile material delivery with the slower processing constraint. - Blending or process changes can help, but recovery and product quality must be monitored alongside throughput. ### watch - Energy per tonne - Plant throughput and recovery - Stockpile quality and inventory ## misconceptions ### claim A large deposit is automatically a profitable mine. ### correction Grade, recovery, access, costs, permissions, infrastructure, and closure obligations determine economic viability. ## sources ### id usgs-extraction ### title How do we extract minerals? ### organization U.S. Geological Survey ### url https://www.usgs.gov/faqs/how-do-we-extract-minerals ### supports How deposit location, shape, strength, grade, cost, and price influence mining method. ### id epa-mining-review ### title EIA Technical Review Guidelines: Non-Metal and Metal Mining Volume I ### organization U.S. Environmental Protection Agency ### url https://www.epa.gov/sites/default/files/2014-04/documents/miningvol1.pdf ### supports Mine lifecycle, processing, environmental impacts, and waste-management planning; 2011 technical guidance. ### id epa-waste ### title Report to Congress: Wastes from the Extraction and Beneficiation of Metallic Ores, Phosphate Rock, Asbestos, Overburden from Uranium Mining and Oil Shale ### organization U.S. Environmental Protection Agency ### url https://www.epa.gov/sites/default/files/2016-03/documents/epa-530-sw-85-033.pdf ### supports Definitions and mechanisms of ore beneficiation, tailings, and extraction wastes; historical technical reference. ## evidence ### scope - usgs-extraction - epa-mining-review ### flow - epa-mining-review - epa-waste ### economics - usgs-extraction - epa-mining-review ### operations - epa-mining-review ### structure - usgs-extraction ### risks - epa-mining-review - epa-waste ## related Concepts - yield - capital-intensity - operating-leverage - regulation-and-market-entry ## classification ## editorial Note Process descriptions draw on the cited primary sources. Business-model interpretation is editorial synthesis; worked-example figures are illustrative assumptions, not industry benchmarks. Regulation and commercial arrangements vary by jurisdiction. ## companies ### selection Note Illustrative mining companies spanning bulk commodities, precious metals, copper, and other industrial minerals across several regions. This is not a ranking by reserves, output, or revenue; shared ventures are not counted as additional companies. ### verified On 2026-10-26 ### entries #### name Antofagasta #### kind Company group #### segment Chilean copper mining #### description Operates copper mines in Chile, including Los Pelambres and Centinela. Its mining division connects ore extraction and processing with the infrastructure required to bring copper products to market. #### url https://www.antofagasta.co.uk/media/4905/49913-antofagasta-ar25-web-ready.pdf #### name Barrick Mining Corporation #### kind Company #### segment Gold and copper mining #### description Operates gold and copper mining businesses across several countries, including joint ventures. Its portfolio connects mineral-resource development with mine operations, processing, and long-term investment decisions. #### url https://www.barrick.com/operations/ #### name BHP #### kind Company group #### segment Bulk commodities and copper #### description Produces iron ore, steelmaking coal, and copper through open-cut and underground operations. Its diversified assets connect different ore bodies and processing requirements with industrial commodity markets. #### url https://www.bhp.com/about/our-businesses #### name CMOC Group #### kind Company group #### segment Copper, cobalt, and specialty minerals #### description Operates mining and processing businesses producing copper, cobalt, molybdenum, tungsten, niobium, and phosphates. Its geographic portfolio connects different mineral deposits with specialized extraction and processing capabilities. #### url https://en.cmoc.com/ #### name Freeport-McMoRan #### kind Company #### segment Copper mining and processing #### description Operates copper mines using routes including concentration, leaching, and solvent extraction with electrowinning. Its South American operations show how ore characteristics influence the form of copper sold. #### url https://www.fcx.com/operations/south-america #### name Glencore #### kind Company group #### segment Mining and commodity marketing #### description Produces metals and minerals and also markets physical commodities. Its industrial and trading businesses connect extraction and processing assets with transport, customer requirements, and commodity markets. #### url https://www.glencore.com/what-we-do #### name Newmont #### kind Company #### segment Gold and associated metals #### description Mines gold, copper, silver, and other metals through a portfolio of operations. Its business connects mineral exploration and reserve development with extraction, processing, and mine-lifecycle management. #### url https://www.newmont.com/about-us/about-mining/default.aspx #### name Rio Tinto #### kind Company group #### segment Diversified mineral production #### description Produces commodities including iron ore, aluminium, copper, and lithium. Its portfolio connects mining and mineral processing with different industrial supply chains and the infrastructure each requires. #### url https://www.riotinto.com/en/products #### name Southern Copper #### kind Subsidiary #### segment Integrated copper production #### description Grupo México-controlled producer with mining, smelting, and refining facilities in Peru and Mexico. Its operations connect ore extraction with concentrate production and further conversion into copper products. #### url https://southerncoppercorp.com/wp-content/uploads/2025/06/m2024.pdf #### name Vale #### kind Company group #### segment Iron ore and base metals #### description Produces iron ore and pellets alongside copper and nickel, with associated logistics operations. Its business connects mineral extraction and processing with transport infrastructure and industrial customers. #### url https://vale.com/en/what-we-do Examples are illustrative, not benchmarks. Editorial method: https://industrywiki.org/methodology/