The Business of Mining / A brief non-technical exposition of the principles involved in the profitable operation of mines

by Arthur J. Hoskin

Kennedy Mine, Jackson, California.

It seems coincidental that the rush for gold in 1849-50 should have been almost simultaneous with the remarkable development of our other mineral resources. All of our great discoveries of coal, oil, silver, iron, lead, copper, and zinc can be said to have followed closely upon the discovery of gold in California. It is not supposed that the discovery of iron in northern Michigan in the early eighties had any connection with the "Pike's-Peak-or-Bust" expeditions, nor that the opening and development of the vast coal beds of Pennsylvania had any bearing on the discoveries of lead and zinc in the great Mississippi Valley. But, on the other hand, there can be traced a very intimate relation between the finding of gold, silver, copper, and lead in the Rocky Mountain states and the search for gold in California: the pioneers en route to the coast were the discoverers and settlers in Colorado, Wyoming, Utah, and Montana.

Figures are not available for arriving at such striking or reliable conclusions in regard to the world's production of metals other than gold, but there is no logical reason to doubt that such increases have been just as pronounced as in the case of the yellow metal. In fact, there are good grounds for assuming that the figures for silver, lead, iron, and zinc would show up even more spectacularly; while with coal, we know that we are now in the greatest period of the world's production.

The United States leads the world in the production of the base metals, such as copper, iron, manganese, lead, and zinc, taken collectively or separately. Our country stands second in the production of the precious metals, gold, platinum, and silver. We have the greatest variety of mineral products, as well as the greatest production of complex ores, or those carrying more than one valuable metal. We produce more copper than the rest of the world combined. Although we stand in second place when considering the production of gold, we still possess the Homestake mine in the Black Hills, famous as being the gold mine with the greatest tonnage in the world; and the Camp Bird mine, in the San Juan district of Colorado, famous the world over for its highest average value of gold ore. This great mine is now nearly exhausted and is about to close down after making a wonderful record.

South Africa produces the greatest amount of, and the purest, natural gold in the world. Great Britain has an insignificant production of both gold and copper, and still it is noteworthy that the English-speaking nations control the world's production of both these metals. British and American citizens own seven-eighths of the world's gold mines. England stands second in the consumption of copper, which, of course, is mainly imported.

Russia controls the world's output of platinum, with very little competition. In a similar manner, Canada has the control of nickel production. Mexico, although not commonly regarded as a gold mining country, is rapidly coming to the front and possesses the Esperanza mine, said to be one of the most profitable gold mines in the world.

To more emphatically show the importance of the mining industry, especially in our own country, the following facts are taken from 1900 census returns: Agriculture produces annually about $725 per capita; mining, $1,910; and manufacturing, which is dependent upon the others, $760. The National Banker has said: "Statistics show that the combined dividends paid by the gold and silver mining companies of the United States are greater than the combined dividends paid by all of the banking institutions of the country; and the combined dividends paid by the copper mining companies of the United States exceed the combined dividends paid by all of our railroads."

There is one thought that will always comfort any person who is engaged in furthering legitimate mining: Wealth acquired from a mine is not wrested from any being but Mother Earth, and it is not, therefore, in the class with the much discussed "tainted money" that is said to be wrung from unfortunate human beings.

The following tables are presented to give the reader ideas concerning the productions of gold and silver during recent years. Among the interesting points that may be noted are the following:

The gold production of the world took a sudden drop in 1900, but it immediately resumed its upward climb. During the decade from 1900 to 1910, this production increased over 81 per cent.