ABSTRACT
Business strategy in the mining industry encompasses the same kinds of goals and methods of achieving them as in other industries. First, orebodies are where you find them. Unlike manufacturing, marketing, or service industries, mine location is determined by geology. A second characteristic of modern mining is that it is highly capital intensive and requires a long gestation period following the initial investment before the product can be produced and sold. A third characteristic is that mining is a high-risk industry. A fourth characteristic is that most metals are more or less homogeneous products sold in world markets at prices determined on the commodity exchanges, as contrasted with differentiated manufactured products. A fifth characteristic of mining is that every orebody is a depleting resource, the output of which tends to decline over time. Finally, mining is subject to more regulations and government participation than is manufacturing or most service industries.
