Part I Host States, Mining Companies, and Mining Projects, 3 Other Actors in the Mining Industry

Abstract

This chapter focuses on players other than Host States and mining companies in the mining industry. These include prospectors, geologists, mining engineers, metallurgical engineers, trading houses, smelters, assayers, and investment banks. Prospectors play an important role in generating showings (evidence of localized mineralization), which are later optioned, acquired, or explored by mining companies. Geologists specialize in exploring and identifying new mines. Mining engineers specialize in mine design while metallurgical engineers devise and design the processes and physical installations necessary to process raw ore into refined metals or minerals. Most mining companies do not market or sell their production, relying instead on trading houses to buy their output, or selling it to large industrial users under long-term supply and purchase agreements. Smelters process the ore mined into refined metals. Assayers perform the chemical and metallurgical tests on samples of ores or minerals to determine the amount of valuable metals contained. Investment banks arrange the financing for mining projects. These different actors and activities entail specific risks and varying potential for international disputes.