Market Structure of the mining industry Essay Example | Topics and Well Written Essays - 500 words

Market Structure of the mining industry - Essay Example Secondly, the industry bears a global trait as the largest companies come from distinct countries, including the developing nations (Shapiro, Rusell & Pitt, 2007). More to these, a lot of capital gets invested in this industry, which makes it capital intensive. Fatal injuries also characterize the mining industry according to Gunningham (2007). The ore bodies in this industry also have a relatively short productive life expectancy. More to these, the industry hires technicians to conduct the various processes, as well as engineers and geologists for short periods. In addition, areas affected by mining activities lack development, due to the negative environmental impacts of mining activities (Marinos, 2001). Gross defines an iron ore â€Å"as any merchantable or beneficiated mineral aggregate, that occurs in sufficient quantity to be a sustained supply of raw material to industry, and from which iron can be satisfactorily recovered under existing economic conditions or which may be usable in anticipated economic circumstances† (Geology Report No. 22). This means that iron ore mining serves as an important economic activity as it leads to the derivation of profits. In Minnesota, for example, this industry greatly affects the region. It contributes billions of dollars to the state’s economy. More to this, it accounted for 11,200 jobs in 2010 in the area, and pays huge taxes to the state, thus boosting the economic capacity of the region. Additionally, the industry supports local schools in Minnesota, thus highlighting the significance of this industry, wherever the activity takes place (â€Å"Minnesota iron Organization†, 2014). Various characteristics can be associated with this type of mining. First, iron deposits can be classified into three types. The first one relates to iron deposits that are suitable for iron ore in their natural condition. The second type refers to iron deposits