How diffilcult/Easy to start a Mining Business in Chile?

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good2bme
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How diffilcult/Easy to start a Mining Business in Chile?

Post by good2bme » Fri Dec 05, 2014 1:31 pm

I read this article not so long ago about Copper mining and micro mining, It mentioned Chile, Bolivia, Peru an Equador to name a few...

Has anyone in this forum ever owned or ran a small or micro mine or knows a Gringo that has?

If so, how difficult do you think it would be for a foreigner to get into copper mining? an average Joe, not Bill Gates...

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Dosedmonkey
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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by Dosedmonkey » Fri Dec 05, 2014 1:42 pm

How much experience do you have in mining and prospecting?

I guess you'll need some inside info on land that has oppotunities for mining but isn't public knowledge so you can buy at low price? That's just a guess.

I seen those guys surface mining gold on Canada on tv quite impressive what a cowboy outfit can achieve but it seems to be hit and miss wether they make the income the way they run it.

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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by nwdiver » Fri Dec 05, 2014 2:11 pm

Difficult, all land in Chile (pretty much all except for National Parks) is privately owned, so you have to acquire property, the only successful small mines I know are hard rock gold mines, which you need to have lots of experience to even contemplate......... ask Los 33.......
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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by pinkboy » Fri Dec 05, 2014 11:28 pm

Perhaps you can contract yourself and services to existing mines? What mining experience do you have? I imagine a small micro mining business would be quite capital and labour intensive. Possibly lucrative though little chance to break into regarding the above comments.

I come from a mining maintenance (fixed and mobile plant) background in Australia, but will be moving to Chile in 12mths. I guess if I get bored I can always start up again and do some possible consulting work. I definitely wont be getting back into my current line of work unless I exhaust every option.


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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by good2bme » Sat Dec 06, 2014 1:00 am

Thanks for the replies guys. So for the record I have no mining experience,so at this point you must think this guy is mental, lol...What i do have is the uwavering belief that you can do anything with the right people around you. I know mining is extremely technical, dangerous and a difficult business, so i am also not making light of how difficult an undertaking it would be. What i am interested in would be barriers to entry, information on aquiring suitable land, staff, wages and potential cost. I was hoping to luck out and find a gringo who went in search of el dorado or atleast the copper equivalent to share his/her experiences.

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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by pinkboy » Sat Dec 06, 2014 3:08 am

First you're going to need some land to mine. But how do you know what you buy is going to be profitable? So instead of buying land, you lease some land for a set period of time (think years). During this set lease you are then going to have to get approvals for exploration which takes time and lots of effort. Then after these approvals you are set to explore and drill all over your lease, which will take considerable time and funds. Then, after considerable time and cost, you discover that this piece of land isnt a viable piece of land to mine. Lucky you didnt buy it, but you still have to pay 7 more years on the lease as you cant break the contract.

So you move onto the next nice piece of land and so on. Same again, wait for exploration approvals, then drill, then test (all at considerable cost and time). Finally, you have a viable piece of land to mine.

Now you need a mining permit. So more cost and time to get the appropriate approvals in place (after Government red tape takes you for a ride with delays and considerable 'extra' costs).

Right, so after several years of finding the right viable piece of land, all the approvals, all the costs, you're ready to turn the first sod of soil. Crap, you're going to need a shovel, and a wheelbarrow to move the dirt. Then, when your hands and your wallet is bleeding to the bone, you sell your first few kgs of Copper. With the proceeds, you then think to yourself 'If I get a digger and a truck, I can mine more dirt'. So, off to the bank to add to the costs.

Now you have the digger and a truck, you're going to need another employee, because you cant be in the digger and the truck at the same time. Further expense (and staff are time consuming too). Now you have sold your first Ton on Copper, you think to yourself 'Geez, I need to up my operation"- so you head to the bank once more and get a swag more cash to buy a fleet of trucks, several diggers and then advertise for many more staff.

Next your operation is so big, you float the company and then have not only clients to please, but shareholders as well. Think considerable time and cost to keep this operation viable including cashflowing its past costs, its current operating costs and its environmental costs well after the lease is fully mined and mothballed.

And so on and so on.............


Moral of the story - unless you have a $h!tl0@d of time and money, mining isnt going to be an easy road.

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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by El Lechero » Sat Dec 06, 2014 9:29 am

I heard of a gringo who came searching for gold a few years back. I think he was an Aussie. He didnt find gold but he realised there was another business in Chile. Crushing shells from the shelfish industry to use for lime/calcium on agriculture land to fix it. So give it a crack who knows where it might lead you.

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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by fraggle092 » Sat Dec 06, 2014 2:48 pm

Difficult

Like anything here, there is a lot of paperwork involved. You need to read and understand these:

http://www.sernageomin.cl/pdf/mineria/n ... siones.pdf
http://www.sernageomin.cl/pdf/mineria/s ... Cierre.pdf

Its the most crooked activity I have seen here, and thats saying a lot. Many people lose their asses.
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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by Dosedmonkey » Sat Dec 06, 2014 3:23 pm

There is a lot of other business opportunities in Chile more suited to small businesses!

Where you from and what's your background? Maybe we can brain storm.

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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by thisisreallycomplicated » Sat Dec 06, 2014 3:36 pm

I don't know anything about the mining business. But if you need to hire other people to do the work, I'd suggest trying something "simple" first, like hiring a plumber. And see how that goes, before sinking lots of time and money into something more complicated.
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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by Rhodolite » Sat Dec 06, 2014 4:15 pm

Umm...are you quite certain that you must lease or own land in order to mine on that land? I have been told -- although I find it difficult to believe -- that if I show up with GPS coordinates, I can make a claim for and receive mineral rights at that location irrespective of ownership. Show up where? Chilean government /ministry office. Which one? The one regulationg mining activitites. Vague answers to pertinent questions. What do you think?

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Re: How diffilcult/Easy to start a Mining Business in Chile?

Post by admin » Sat Dec 06, 2014 7:18 pm

get yourself a shovel, and start mining. Now if you want to make any money at it, that will cost you (big).

I got in to watching some of those mining shows in alaska for a while. they were fun. However, after a season or so i realized that has got to be the worst investment ever. I can think of about million other things to do with half million to million dollars of capital, that will make a lot more money. likely putting it in a savings account would be better, at least your not loosing most of it.

Those guys, with and without experience, dump a couple hundred thousand dollars a year in operational costs, have nearly a million dollars worth of machinery (likly most still under payment), to get something like a 50,000 dollars worth of gold, that they split 8 ways. At the end of the season they could have all made more money at the local wall mart, without risking their life.

As one forestry engineer that worked for us put it, "in chile, you own 1 meter above the surface, and 1 meter below". You need a permit to use anything outside those two meters or so, and that includes mining rights.

Now, if you want to go out and pan for gold or something, no one is going to bother you. Anything more serious, and break out the checkbook and you should know a whole lot more about what you are doing.

In other words, the way to make a small fortune in mining, is start with a large one.

That said, I have acutely considered doing some gold prospecting for fun, as i have some suspicions about particular pieces of land in Chile. Actually, not even suspicions. I know there are proven gold, and registered mining rights in the areas. So, I have thought it would be fun to go see what else is around. Lots of geological activity in Chile, so lots of cool rocks. A few might actually be worth something.
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