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Highlights
- Understand key mining stages from discovery to production
- Explore development steps across exploration types
- Learn how mines transition into long-term output
Mining companies listed on the ASX200 index operate in a complex and capital-intensive environment, where turning early-stage exploration into long-term production involves meticulous planning, technical assessments, and financial diligence. The journey from identifying a mineral resource to actual ore production can span decades and requires careful navigation through each critical stage of the mining lifecycle.
- Exploration: Finding the Resource
This phase includes greenfields and brownfields exploration. Greenfields efforts aim to discover untapped deposits in unexplored regions, whereas brownfields exploration focuses on extending life at existing or nearby mines. Companies such as Sandfire Resources (ASX:SFR) and De Grey Mining (ASX:DEG) actively invest in these efforts.
Exploration begins with prospecting—using tools like geophysical surveys, geological mapping, and geochemistry to detect potential mineral zones. If promising signs are found, companies proceed to drilling, which further evaluates the size, grade, and depth of the deposit using techniques like core sampling and trenching.
- Development and Planning
After a resource is outlined, detailed feasibility studies help determine the economic and technical viability of the proposed operation. Environmental and social impact assessments are key at this stage, and continuous stakeholder engagement is essential. Companies like IGO Limited (ASX:IGO) follow rigorous frameworks to obtain a "social licence to operate," especially when operating near communities.
Approval from government bodies and regulators is required for the mine to proceed. This includes environmental permits and mining licenses, often granted after thorough risk and impact analysis.
- Financing and Construction
Project financing blends debt and equity to support infrastructure development. Market factors such as commodity prices and investor sentiment play a crucial role. Companies including Pilbara Minerals (ASX:PLS) rely on offtake partnerships and robust financial structuring to support this phase.
Construction activities range from road building and overburden stripping to establishing operational facilities. Depending on the deposit type, either surface mining (e.g., open-pit) or underground mining techniques are employed.
- Commissioning and Production
With infrastructure in place, commissioning tests the system to ensure operational integrity. First ore signals the mine is functional, and production gradually ramps up to capacity. Over a lifespan of 10 to 30 years, operations such as ore hauling, crushing, and processing—including techniques like heap leaching or SAG milling—enable economic extraction.
- Closure and Rehabilitation
Once the resource is depleted, decommissioning and rehabilitation ensure environmental sustainability. This includes restoring land, water quality, and supporting post-mining land uses like agriculture or conservation. Rehabilitation strategies are often initiated even during active production, ensuring long-term benefits for future land use and community interests.
