Responsible Mining Solutions- Can It work?


Better mining corporations are adopting “Responsible Mining Solutions”. Mining even if it is small scale has a major impact on the environment, but if done on a good scale it also represents a valuable opportunity that benefits the national economy and local communities. Most companies have developed the mines on the basis of territorial planning or land use assessment, that is the main reason why most projects are being developed in the vicinity of forest ecosystems, biological corridors and habitats. Though if the companies use small- scale mining it does not have much impact or produces a large or significant impact as large-scale mining. However, it does have an important potential to contribute to the conversation of ecological functions in the mining surroundings and avoid cumulative environmental impacts.


As per mining is concerned, it involves a lot of boom and bust. That is, there may be great wealth when a new mineral deposit is discovered, but as our global economy is fueled by natural resources extracted from the earth but removing them is followed by erosion, pollution, deforestation and species loss. Moreover, communities living there suffer from great poverty when the minerals are gone. However, when the development encroaches on the pristine areas, it is essential for the mining companies to look for ways that work in harmony with nature and the ways in which they are less destructive to workers and communities.


Why is developing responsible mining solutions important?


It is more important than ever, for two reasons. First, as mentioned mining can be damaging to the communities living in that region and the ecosystems worldwide. Industrial mines present both opportunities and risks to local residents, governments and the environment. If there are relative to people living, a mine here or there can seem to be acceptable. But the world has now shifted and it has become more vulnerable and excessively crowded. Moreover, already with the industrial activities and now mining has released enough carbon into the atmosphere to damage the climate and destroy the space of people living there. So it is very important for the economy to back down to an earlier and safer state of environmental resilience and actively help in reducing damage as well as improve prevention.


Why should companies follow responsible mining?


When companies start operating in a responsible manner they see drastic results in the profits they earn. The benefits of mining in a socially responsible manner while following all the necessary solutions include reduced labour shortages, with no conflicts with the surrounding communities and with fewer impacts than irresponsible mining. Rather companies have started investing in local education and skill training, proving employment in the community they are mining in with more consistent production as a result of a healthier workforce and less likelihood of conflict by building better relationships with the local communities.


Clearly, when mining is done in a well-planned manner it can provide significant local employment, economic opportunity and government revenue. But because minerals are public assets, the decisions about their exploitation must be transparent. 


Responsible mining is relatively a new concept because of this reason it is taking time for companies to understand it. Even companies with high standards are under great pressure to deliver the best results.

For instance, when it comes to health and safety, everybody expects ‘zero harm’ from most of the mining companies and certainly for all miners working in public listings as well as the private ones. Followed by this example, though companies have not yet achieved zero harm but have reduced a lot in terms of injuries and fatalities and taking actions for all the health and safety standards, practices and training.

The Future Of Gold Mining Companies In The Post COVID Era


With the rage of COVID taking over the world, the markets have fumbled all over the world. There are no clear of settling at the moment, and with the prospects of investments getting bleak, the only thing you can rely on is Gold and other precious metals. They have become quite an attractive prospect for investors, which comes as good news for the gold mining companies. If you are on the lookout for some options that will give you a sure shot return in uncertain times, you may want to invest in gold mining companies. 

Why should you invest in Gold?

If we consider Gold's nature, it is a hard metal that will perform better when there is a slow economic and market growth. Even if the market is highly volatile, gold investors are safer with their investment. It has no connection with the falling economy or the weakening currencies as people can liquidate this hard metal anytime for cash exchange in case of an emergency. Several other factors that tend to impact Gold favorably remain in place, including easing monetary policies, fiscal stimulus, low to negative rates, and lackluster economic growth.

It has something to do with the previous sky-high profits that the gold mining companies made last year. Even if there is a considerable fall in the market right now, people are not worried as the gold prices will comparatively be in a calm state than last year. If we look at the growth for the past five years for the investors in the gold mining companies, there has been a considerable rise in the number of investors giving a high return on the investment to them. 

Combination of gold and mining investment

It seems like the only favorable option at present. The experts suggest that 'the defensive characteristics of gold blend well with the upside optionality of the gold equities.' Despite popular thinking, the two have a shallow connection in the market of investment. So, if you are heading to divide and conquer the market, making a sound investment in the gold equities and companies that are in gold mining seems like a great idea for portfolio diversification. However, this diversification will only bear you profitable results if you are on the lookout for long term investment. It is not a market for short-term investors looking for quick in and out money from the market presently.

Until there is conclusive research on the conditions of the virus in the market, there will be a lot of volatile mobility. You will need to have patience if you invest in the hard metals or any related precious metal portfolio. In short, the experts suggest that 'For investors who allocate 10%-20% of their portfolio to alternatives as they pursue diversification and non-correlated return streams, we believe a position in gold and precious metals equities should represent a component of that allocation.'

Investing in Gold Mining Stocks


In general, when investors look for investing in gold directly into their portfolio, they have the following choices to make: either buy a physical asset like bullion bars, trade-in commodities market or many investors prefer to take an indirect approach and invest in the stocks of gold mining companies. Most investors choose this indirect approach of buying stocks of companies having gold mines, for instance, in Colorado and implement strategies using options on gold futures. These companies offer a more liquid and low-cost way to invest in stocks and also comes with the allure of high rewards. But before you dive into it, choosing a company with a good track record, debt and the number of gold mines in different regions like Colorado should help you arrive on your decision.

Things to consider before investing in gold mining companies

Before you invest in gold double check your goals and long term strategies as gold is not a cheap commodity and a wrong decision can blow your hard-earned money. Like any investment, if you intend to purchase gold stocks here are a few points that you can follow:
      Choosing an investment mode:
Investing directly in gold mining companies offers exposure to gold. Note that, it is different than actually holding a physical commodity. But if you like the idea of exposure to gold, gold stocks can prove to be a good choice.

      Companies having multiple operations:
You are buying from a company, so it is important that you choose a company that is not dependent on a single gold mine production or has political stability in a single country.

      Start small:
In the initial stages of investing, it is possible to get overwhelmed and invest huge amounts of money at once which can hamper your investment choice. You can avail the advice of consultants which can help you make a better choice with the best returns.
Remember to start small and add more if you find it more convenient.

      It is important to stay updated:
It goes without saying that you should keep yourself updated on the rates, daily happenings and the state of the market to ensure you know about your investments at a given time. Regularly checking on gold rates can help you keep track of your investment. It is imperative to look for a company that is well established so that the investors don’t need to sell stocks at low prices.

What qualities to look for when investing in a gold mining company?


  1. The more effectively they manage their company the better as it will help protect your investment in the long run.
  2. As the gold mining business is typically located in hostile environments. So it is important that you look for a company working in a secure and politically stable region.
  3. Transparency is one of the important factors you should look for when choosing a gold mining company. Examine the miner’s current cash position and their outstanding debt. Then you can proceed with the decision to buy in a lump sum or at regular intervals.

Ethical Mining: A Difficult but Necessary Implementation

Ethics basically means taking various moral aspects of a business or an activity under consideration. Most businesses run in sync with profits and not in ethical range, but when safety is paramount in a business, such as mining, ethics play a major role in determining how a business takes such aspects into consideration. Ethical mining companies are not rare, but they are not common either. There is no central mining governing body that mandates ethical mining for mining companies, hence this is purely a decision that the firm involved has to take.



This creates different kinds of complications for mines, and more so for the miners that work for such mines. The basic principles of ethical mining involve dictating worker safety, and providing them appropriate compensations based on situations arising due to working in mines. Not only this, but mining firms also have to take care of the environment surrounding the mines, which forms an important part of ethical mining. In short, any decision that is taken not from a business point of view but from a moral point of view is considered inclusive undermining ethics.

Miners are the main lifeline of mining companies; without them, there would simply be no market for those mining firms. Many mines understand this perfectly well and take steps to ensure that their workers are well-trained and well-educated on basic mining safety. They are provided appropriate safety clothing and equipment, trained in evacuations in case of emergency, and taught emergency paths and walkways to escape from in case of accidents. This does not stop there; many mining companies also provide medical insurance to miners, along with accident compensations and other miner benefits that make working in mines worth it for those miners.

A big hurdle in its implementation is that there are many mines that put profits above their workers’ safety. In their terms, ‘workers can be replaced but money lost is lost’. Such mines rarely implement ethical practices to ensure the safety of their workers. Many local governing bodies have stepped in to ensure that ethical practices for worker safety are followed in as many mines as possible.
Ethical practices don’t stop at just worker safety; it also pertains to the quality of produce and waste disposal practices. Many mines often mix impurities with mined minerals to make them heavy, as mined minerals are usually sold on their weight basis. A mine with proper ethics in place will always be honest with their sales and to their clients. Monitoring this outside the mine is difficult, so it is up to the mining firm to decide whether they want to be honest with their products or throw away all ethical thinking.

Finally, mining firms have to look after the surrounding environment, especially if there is a city, town or a village in close vicinity of the mine. They have to ensure that proper waste disposal practices are followed and land dug responsibly so that it does not affect their surroundings much, for it shall put them at risk if not followed properly.

How is Gold Mined? Looking at the Steps Involved in Gold Mining Process


Gold may be expensive for many, but that is mostly when we look at gold jewelry. Gold is actually used in a variety of industries such as semiconductor industries, food industries, manufacturing and many more. Most of us who only know gold as being used to create jewelry and decorations are unaware of the vast scope of gold’s applications, and hence its rising demand.
This has led to many goldmines worldwide working round the clock to mine all the gold the world needs. The USA is one of the biggest producers of gold due to the presence of many gold-rich belts in the country. The gold mining process is a highly tedious and lengthy process, as it can take a lot of time to find and my gold. Here is a detailed documentation of steps involved in gold mining process:
Step 1: Looking for Source
The first step involves looking for an area that is rich in gold deposits. Many scientists and geologists are employed by mining firms to explore historically gold-rich areas and determine the approximate quantity of gold that can be feasibly mined. Once the areas are identified, the next step is to develop a mine.
Step 2: Developing the Mine
The second step involves developing and setting up a mine in the gold-rich area. If the area is a site of the previous mine, then that mine is redeveloped and redesigned by the new mining firm to tailor it towards their operations. Tunnels are dug, heavy equipment shipped to the mining site, electricity and water are arranged, and shelter for miners and officers are set up in the area surrounding the mine. Miners are also hired and trained to be able to work and move around in the mine safely. Permits are also obtained as necessary.
Step 3: Beginning of Operations
The next step is the main step where gold mining actually starts. If the gold is present relatively close to the surface, then gold can be found within 1 year or less of the start of mining operations. But if gold is present deep inside or if the terrain is rough and hard, it may take many years before the first batch of gold is mined. The amount of time a mine is in operation varies from a few years to over a decade or more, depending on the amount of mineable gold in the site.
Step 4: Ceasing Operations
Mining firms cannot mine gold infinitely, as there comes a point when gold reserves are fully depleted. In fact, many mines choose to cease operations even if gold is present, citing unfeasibility and safety reasons; maybe the mine is extremely unsafe to work in after years of mining, or the cost of mining is far more expensive than the profits obtained from gold. But when such a point in time arrives, the mining company has to start limiting its operations gradually, eventually ceasing all operations. Equipment is removed from the site, tunnels are blocked off and the mine is decommissioned.
Step 5: Cleanup and Land Reclamation
It is the responsibility of mining firms to clean up the surrounding area and let the land reclaimed back to nature. Mining firms can either employ in-house departments to clean up the area or hire 3rd party firms for the same. Cleanup includes marking hazardous areas, disposing of waste, closing off unsafe sections of the mine, putting back any dug-up areas and many more. Cleanup post-mining is not actually mandatory for mining companies, but they have a moral obligation to do so, especially if the mine is located in close proximity to a settlement such as a city, town or village where people live.  

About us

In its quest for gold, GS Mining focuses not only on recovering the richest ore, but on doing so with state of the art sustainable and ethical practices. Our goal is to bring dormant mines back to life and revenue, while at the same time enhancing and rejuvenating the environment and communities in which we operate.