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A Million Dollar Business

You may think that mining cannot be profitable anymore but you are wrong. Mining is still profitable. Global mining firms earned record profits last year. Leading the $133 billion profit was iron ore. Iron ore is the most profitable commodity at this time. Iron ore’s revenue rocked to 42% from 20%.

The Vancouver Company, Energold Drilling Corp has had in increase of 142% in revenues over the last couple of years. This is due to drilling 585,800 meters for mineral, that is an increase of 69%. This company drills in areas all over the globe. Mostly they drill in South America and Mexico and expect the demand for drilling to continue throughout 2012.

West Africa gold miner, Semafo had a great first quarter this year. The Semafo, Montreal based company sold gold 22 % higher than last year, giving them an increased net income of $31.5 million, 54% higher than last year.

Last year coal and diamond mining for Anglo American reported huge profits. The $13.3 billion earning was a record for the company. The increase allowed the miner to take a greater stake in the De Beers diamond business. Also mining in iron ore and manganese was up 23% as well for Anglo.

As you can see, mining is still very profitable. Just like with all businesses there are ups and downs. Finding that sweet moneymaking spot may be here today and gone tomorrow but for the iron ore and gold it’s an impressive time. Increases in profits and higher than normal forecasts show that this isn’t the beginning of the end but an exciting time for these companies. Getting covered in soot in a cold damp cave is only part of the profit building business of mining.

© 2011 Miners Story