The Business of Mining by Arthur J. Hoskin

This monograph, authored by Arthur J. Hoskin, M.E., serves as a non-technical guide dedicated to American laymen interested in the mining industry. Written in 1912, it aims to dispel the notion that mining is purely a speculative venture by establishing it as a legitimate commercial enterprise that offers assurance of success equal to any other line of industrial activity, provided investors exercise sound business precautions. The book systematically covers everything from defining what constitutes a profitable mine to the logistics of claims, management, and investment strategy, highlighting the economic principles necessary for success.

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Who May Benefit from the Book

• American laymen in mining matters.
• Mining investors of small or large means.
• Individuals seeking non-technical economic principles of mining.
• Those evaluating the legitimacy of mining ventures.
• Students interested in the history and commerce of the industry.

Top 3 Key Insights

1. Successful mining is a legitimate business demanding the same comprehensive precautions and sound judgment as any other major financial enterprise.
2. A true “mine” is defined by its ability to yield minerals profitably, differentiating it from a mere prospect that carries unworkable values.
3. The industry is undergoing a shift toward scientific prospecting and large-scale open-pit methods, emphasizing efficiency and low-grade tonnage.

4 More Lessons and Takeaways

1. Investors should shun companies where organizers are excessively greedy or when properties suffer from capital-draining mistakes like premature plant installation.
2. The once-prevalent belief that ore values improve with depth has been largely refuted; managers should focus on lateral development rather than expensive deep sinking.
3. The economic choice of a mine opening (adit, shaft, or incline) must be based on topography and maximizing efficiency, often favoring adits for natural drainage.
4. Amortization is critical for mining investments, ensuring that capital is recovered throughout the finite, depleting life of the mine.

The Book in 1 Sentence

This non-technical guide assures laymen that mining is a reliable business if conducted with sound financial scrutiny and competent management.

The Book Summary in 1 Minute

(56 Seconds reading time) The Business of Mining assures readers that the industry is reliable, urging laymen to exercise sound business sense rather than treating ventures as speculation. Crucially, a mine is defined by its potential for profitability, not merely the presence of minerals. Historically, mining drove civilization; today, it is a foundation of global commerce, exemplified by the rapid doubling of known gold reserves projected for the next two decades. Modern methods emphasize scientific prospecting and large-scale operations, like profitable open-pit mining of low-grade copper. The book warns against premature capital expenditure and unscrupulous promoters. Successful management requires innate ability and strong engineering staff, continually inventorying diminishing assets through sampling. Ultimately, embracing modern efficiency and economic scrutiny is the key to legitimate success.

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Chapter-wise Book Summary

Introduction

“The purpose of this short monograph will be served if the author can feel assured that his readers will finish its perusal with the belief that mining may be followed as a business with just as much assurance of success as attaches to any one of the many lines of industrial activity.”

The introduction addresses the common perception that mining is inherently risky due to the long history of exploitation by malicious, unscrupulous, or simply ignorant intruders. The author notes that failures often result from erroneous conceptions or lack of knowledge by those running the operations, not always intentional deceit. The core conviction of the book is that mining can be relied upon just as much as any other business. The text avoids technical details and aims to establish the reliability of the industry by outlining proper lines of conduct for business people entering its precincts. Investors, whether large or small, are encouraged to apply the same precautions to mining projects that they would exercise in other enterprises.

• Chapter Key Points:
  • Mining is harmed by both deceitful people and management ignorance.
  • The book aims to prove mining is a reliable business.
  • Sound business conduct and due diligence are necessary for success.

Chapter I. What Is a Mine?

“Yes, according to the latest ideas, we are wrong in stating that any worked or workable mineral deposit is a mine, if it does not contain possibilities of profitable working.”

The definition of a “mine” has evolved from strictly subterranean workings to “any excavation made for the extraction of minerals,” including surface operations like open pits in Utah and Minnesota, and placers. However, a distinction is maintained between mines (extracting coal, metallic ores, or gems) and quarries (extracting building stone or clay). The most crucial modern definition stipulates that an excavation is only a true mine if it offers possibilities of profitable working. If values cannot be realized profitably—due to factors like hostile climate, lack of water, or uneconomical separation processes—the property remains merely a prospect. An unprofitable project at one time may become a mine later due to improved transportation or technology.

• Chapter Key Points:
  • A mine is now defined as any mineral excavation, including open pits.
  • Profitability distinguishes a mine from a prospect.
  • Non-metallic extraction (e.g., stone) is not considered mining.

Chapter II. What Is Mining?

“In its technical sense, an ore is a metalliferous mineral or an aggregate of such minerals, more or less mixed with gangue, and capable of being won and treated at a profit.”

Mining is the art or practice of profitably excavating and preparing coal, metals, and gems. The scope of “mining” often includes post-extraction treatment. Metallurgy is the recovery of metallic products, which may involve fire or wet methods like cyanidation. Ore Dressing involves concentrating valuable minerals by rejecting worthless material (gangue). Experts agree that ore dressing is an essential part of mining, often performed locally to save on freight costs. The scientific definition of ore dictates that it must be an aggregation of minerals from which metal may be profitably extracted. Activities that do not produce profit, such as driving crosscuts through barren rock or shaft-sinking for access, are generally termed “dead work” and are not considered mining.

• Chapter Key Points:
  • Mining covers extraction and preparation (ore dressing).
  • Ore is defined strictly by profitable metal extraction.
  • Real mining begins when profitable production starts.

Chapter III. The Antiquity of Mining

“Desire for the precious metals, rather than geographical researches or military conquest, is the principal motive which has led to the dominion of the earth by civilized races.”

Mining is one of man’s oldest activities. Ancient civilizations, including the Egyptians 6,000 years ago, used metals, and evidence of iron use dates back to 4,000 B.C.. Gold was likely the first metal worked because it was found natively and was resistant to corrosion. Historically, the pursuit of metals has been a primary force driving commerce, invasion, and the colonization of lands like Mexico, Peru, and the American West. The Old Testament refers to the mining of metals, and coal was used in Greece in 1330 B.C.. The industry is described as lying “at the heart of all commerce”.

• Chapter Key Points:
  • Mining dates back at least 6,000 years.
  • Gold was the likely earliest metal worked.
  • Mining provided the chief motive for global expansion and settlement.

Chapter IV. Mining’s Place in Commerce

“Statistics show that the combined dividends paid by the gold and silver mining companies of the United States are greater than the combined dividends paid by all of the banking institutions of the country…”

Agriculture and mining are the two fundamental commercial industries upon which all other human activity depends, exhibiting an inter-dependence. The establishment of the U.S. Bureau of Mines acknowledged the industry’s previous unjust retardation and need for governmental support. Global gold production experienced a great impetus in the mid-19th century; remarkable progress means the amount of gold accumulated throughout the world’s ages is expected to double in the next 20 years. The United States leads the world in the combined production of base metals (copper, iron, manganese, lead, and zinc) and ranks second in precious metals. Wealth acquired from mining is considered legitimate, as it is wrested from Mother Earth. Statistics demonstrate that U.S. mining dividends exceed those paid by all banking institutions and railroads combined.

• Chapter Key Points:
  • Mining and agriculture are the twin foundations of commerce.
  • Global gold production increased 81% between 1900 and 1910.
  • U.S. mining dividends surpass combined banking and railroad dividends.

Chapter V. The Finding of Mines

“The prospector of today has a general understanding of mineralogy and geology; he must have knowledge of mining methods, so that he may know whether a deposit, once found, can be exploited at a profit…”

The traditional, mystical, bearded prospector is being replaced by the scientific prospector, who is well educated in mineralogy, geology, and modern exploitation methods to assess profitability. Mineral discoveries are categorized into three types: Search (rewards of seeking), Chance (unpremeditated, like finding iron ore clinging to tree roots or gold in a saw-mill ditch), and Adventitious (finding a new metal while searching for or mining another). Famous examples of chance discoveries include the finding of gold in California and copper in Australia. Adventitious finds include silver discovered during early Comstock gold mining, and the shift from silver to copper values with depth at the Anaconda mine.

• Chapter Key Points:
  • The scientific prospector relies on geology and economic principles.
  • Discoveries are categorized as Search, Chance, or Adventitious.
  • The Anaconda mine shifted from silver to copper values adventitiously.

Chapter VI. Mining Claims

“The application of this doctrine of ‘extra-lateral rights’ has led to innumerable controversies that have crippled many worthy mining enterprises.”

Mining property is considered real estate, and the U.S. government has an elaborate system for disposing of public lands under classifications like coal, placer, and lode claims. Lode claims cover ore deposits in their natural place (vein, lode, mass) and are legally restricted to 1,500 feet long by 600 feet wide (maximum). Obtaining a patent (deed from the government) is expensive, requiring $100 of labor per claim annually and $500 worth of improvements per 20 acres for placers. A significant flaw in U.S. statutes is the doctrine of “extra-lateral rights,” which allows a locator to follow a dipping vein outside the vertical side boundaries. This doctrine leads to immense litigation and controversy, and many districts have adopted unwritten laws that restrict claims to ground within vertical boundaries, which is viewed as the only fair plan.

• Chapter Key Points:
  • Claims are classified as coal, placer, or lode with varying costs.
  • Patenting requires proof of bona fide values and substantial labor/improvement.
  • “Extra-lateral rights” is a unique U.S. law that causes costly legal conflicts.

Chapter VII. Placering

“In view of the wonderful improvements brought forth by mechanical engineers, it is improper to deny that the future will bring still further reductions in placer costs.”

Placers are surface accumulations of minerals found in stream wash and are secondary deposits resulting from the disintegration of primary mother lodes. Methods for working placers range from simple tools like the pan (handling about 1/2 cubic yard per 10 hours) and the rocker (or cradle) to the more continuous long tom. Modern intensive methods include prospect drilling using churn drills and the widespread use of large floating dredges (“gold ships”). Dredging is highly economical, with costs dropping to as low as three cents per cubic yard in favorable climates like California. Hydraulicking uses powerful water jets called “giants” or “monitors” to wash gravel into sluices. In arid regions, dry placering technology is being developed to effect gravitational or pneumatic segregation with minimal water.

• Chapter Key Points:
  • Placer deposits result from primary rock disintegration and water transport.
  • Techniques range from basic panning to large-scale mechanical dredging.
  • Dredging costs can be exceptionally low, sometimes reaching three cents per cubic yard.

Chapter VIII. Open Mining

“The development of this open or surface mining has introduced entirely new economic ideas. With no costs for timbering of mine passages, for ventilation, or for hoisting, and with a very material decrease in manual labor per ton mined, immense masses of rocks are now really ore, although a few years ago they were nothing but lean, country rock.”

Open mining, using modern steam shovels, is an American innovation that revolutionized the handling of ore. This method has established unprecedented cost figures, allowing the profitable mining of immense, low-grade deposits. The Utah Copper Company, for example, successfully mines copper ore averaging slightly less than two percent by handling over 10,000 tons daily. Open pit mining drastically reduces costs by eliminating the need for timbering, ventilation, and hoisting. The process often involves “stripping” the overburden before ore excavation. The success of this intensive, large-scale operation has created a demand for properties with large, low-grade deposits, often referred to as “Porphyries”.

• Chapter Key Points:
  • Open mining uses steam shovels to handle immense tonnages.
  • It eliminates major underground costs (timbering, ventilation, hoisting).
  • The practice has converted low-grade rock into profitable ore.

Chapter IX. Considerations Preceding the Opening of Mines

“Always bear in mind that legitimate mining is just as much a commercial enterprise as is any other kind of business.”

A successful economist-manager must investigate numerous items before opening a mine. Initial steps include a meticulous examination of the title to preempt costly litigation after the property becomes valuable. Topography influences the mine mouth selection, factoring in safety from slides and efficiency of transportation, which may require railroads or aerial tramways. Climate (extremes of heat or cold, disease, short working seasons) and the difficulty of securing competent labor can determine project viability. The question of unionism is also a critical managerial decision. The manager must secure reliable and cost-effective supplies, including timber, machinery, fuel, and water. Operations should be planned for the long term based on the shape and size of the ore body holdings.

• Chapter Key Points:
  • Title examination is essential to prevent future lawsuits.
  • Labor competence and reliable supplies greatly influence costs.
  • The scale of operation must be planned for the life of the property.

Chapter X. Mine Openings

“An adit will not only be cheaper, foot for foot, than a shaft or incline, but, if given the proper, slight grade, it will afford a natural drainage outlet for all subsequent workings above its level.”

The choice among a shaft (vertical passage), an incline or slope (sloping passage), or an adit (horizontal opening from the surface) is critical for mine economy. Driving an adit is generally much cheaper than sinking a shaft or incline of equal capacity. The primary advantages of an adit are that it provides natural drainage (saving pumping costs) and eliminates the need for hoisting machinery. Adits are common in rugged mountain regions like the San Juan, while shafts are necessary in flat terrain. Inclines allow the simultaneous determination of deposit values and exploration as work progresses. Crucially, managers must avoid over-planting and ensure initial openings are flexible enough for advantageous enlargement should output exceed expectations.

• Chapter Key Points:
  • Adits are the cheapest opening type and save significantly on pumping costs.
  • Shafts (using cages) allow faster hoisting than inclines (using skips).
  • Plans should possess elasticity to accommodate future business increases.

Chapter XI. Types of Ore Bodies

“The filling of a vein is not eruptive, at all. Veins have been filled from circulating aqueous solutions, by slow depositions, that have occupied very long periods.”

Leading mining geologists have defined specific types of ore bodies. A vein is a single, ore-bearing fissure filled by slow deposition from circulating aqueous solutions, distinct from a dike (which is eruptive filling). A lode is an assemblage of closely spaced veins where the intervening rock is also mineralized enough to be mined as one mass (e.g., Cripple Creek). The term “true fissure vein” is obsolete, as all veins necessitate a fissure. A bed or blanket vein is a nearly flat deposit conforming to sedimentary layers (like coal seams). A chimney (rudely elliptical) or stock (irregular) typically fills extinct volcanic necks or geysers (e.g., Kimberly diamond mines or the Bassick Mine). A mass is a highly irregular deposit, often formed by the chemical replacement of host rocks.

• Chapter Key Points:
  • A vein is a single fissure filled by long-term aqueous deposition.
  • A lode is an aggregate of veins worked as a single profitable body.
  • Masses are irregular deposits often formed by chemical replacement.

Chapter XII. The Questions of Depth and Grades of Ore

“We must, therefore, decide that it is always wise to think twice before condemning a mine because its grade of product is low.”

The belief that ore bodies improve with depth has been largely refuted; values generally grow poorer as depth is gained. Gold ore is often richest near the surface because the stable gold particles remained while surrounding gangue was dissolved away. In contrast, copper ore often undergoes secondary enrichment, resulting in the best grades found some 200 feet down, where dissolved copper salts reprecipitate. Modern economics increasingly favor mines with large, continuous bodies of low-grade ore worked intensively for long periods. The Homestake mine, for example, is highly profitable by netting 53 cents per ton from 4,000 tons mined daily, making it more valuable than a small mine producing high-grade ore. Advances in metallurgical processes mean minerals previously considered worthless are continually being converted into profitable ore.

• Chapter Key Points:
  • Ore values tend to decline with increasing depth.
  • Low-grade ore in vast quantities provides greater, more reliable profits.
  • Metallurgical improvements constantly redefine what constitutes “ore”.

Chapter XIII. Valuation of Mining Property

“The greatest error of the usual investor in mining schemes is to rely upon either no report at all or upon a worthless one furnished by an impostor.”

When property is sold, an expert engineer must be employed to estimate the intrinsic value. Mine sampling is a scientific process: samples are taken, assayed individually, and the engineer must remain disinterested, holding no financial stake in the property examined. Meaningless terms like “ore in sight” are now obsolete. Ore reserves are classified based on the extent of their exposure: ore blocked out (exposed on four sides), ore partly blocked (three sides), and probable ore or ore faces (two sides). Valuing undeveloped prospects requires high technical training. The most common mistake investors make is relying on worthless reports or no report at all when buying a prospect.

• Chapter Key Points:
  • Valuation requires scientific sampling by an impartial, trained engineer.
  • Ore reserves are categorized based on their level of exposure.
  • Relying on unqualified experts is the investor’s greatest error.

Chapter XIV. The Mine Promoter

“The real solution of this dilemma in which the honest men engaged in such work find themselves placed is to denounce, forcefully, the charlatan as being not a real promoter but a gross misrepresentation of one.”

The title “promoter” has acquired a stigma because of the numerous charlatans and “sharks” who exploit mining opportunities for personal gain, primarily targeting small, inexperienced investors. These unscrupulous promoters often retain the majority of a company’s stock, ensuring they reap the greatest benefits if the property succeeds, while relying on the small investor’s cash to fund development. Postal authorities have worked diligently to curb these frauds. Although the term is associated with deceit, there is a legitimate need for honest individuals to promote and organize worthy mining enterprises; the solution is to denounce the charlatans and restore credit to the honest promoters who place the business on a strict business-like footing.

• Chapter Key Points:
  • Unscrupulous promoters target inexperienced small investors.
  • Promoters often appropriate the majority of stock for themselves.
  • Legitimate promotion is necessary, and charlatans must be forcefully exposed.

Chapter XV. Incorporation and Capitalization

“If he will not thus act fairly, it indicates either a questionable piece of property or an avidity undesirable in a partner. It is accordingly advisable to shun offerings in such concerns.”

Mines are universally operated as corporations. Capitalization can be based on expected future value or current invoice value. Prospects are often capitalized arbitrarily (e.g., 100,000 shares at $1 par) and stock is sold at low figures (e.g., 10 cents) to fund prospective development. The standard practice is for property owners to sell their holdings for the entire capital stock, then donate a portion back as “treasury stock” for funding. A major point of criticism is that organizers often appropriate 50% or more of the capital stock for themselves, even though an undeveloped prospect is worth far less than half a proved mine. Investors should be wary of companies where organizers exhibit such greed, or where the capitalization is too high to allow for fair dividends.

• Chapter Key Points:
  • Capitalization often reflects future potential, not present value.
  • Owners often donate stock back to serve as “treasury stock”.
  • Investors should avoid concerns where organizers claim excessive stock percentage.

Chapter XVI. Mining Investments

“The average mine, if continuously worked, seldom lasts longer than three to five years. A mine is valuable not for what it has produced, but for what it is capable of producing.”

Investments in operating mines should be handled with the same business precautions used for buying any mercantile establishment, using engineering reports to determine valuation and life. Unlike standard businesses that aim for growth and longevity, a mine is most successful when it rapidly depletes its assets. While the life of mines in uniform deposits (like the Rand’s reefs) can be accurately forecast, the duration of mines with irregular ore bodies (like Tonopah’s) is wholly problematical. To counter this depleting nature, amortization—the systematic recovery of invested capital plus interest over the mine’s life—is a necessary economic practice that is gaining traction. Longevity can also be achieved by acquiring new territory to which efficient management and transferable equipment can be moved.

• Chapter Key Points:
  • Mines are unique because success means rapidly depleting assets.
  • Amortization is required to recover capital due to the mine’s finite life.
  • Long-term companies can ensure continuity by acquiring and developing new properties.

Chapter XVII. Mine Equipments

“One who considers these matters from an economic standpoint will recognize that there must exist some proper ratio of mine output to treatment capacity.”

The increasing adoption of machinery in mining is essential because good labor is scarce, wages are rising, and low-grade ores require greater tonnages. Machinery replaces manual labor, reducing wages, trouble, and fatalities. Power is derived from steam, water, or transmitted electricity/compressed air. A grave and common error is the premature installation of elaborate plants (mills, smelteries) before sufficient ore reserves are proven, often exhausting capital needed for development. Management should first spend money proving the property’s value. If the mine is worthy, custom works can be used during development until the company’s own mill, built in scalable units (e.g., 10 or 100 tons per day), is ready to handle the maximum output efficiently.

• Chapter Key Points:
  • Machinery is necessary to handle increased low-grade ore tonnages.
  • Do not install elaborate plants prematurely; prove the ore body first.
  • Equipment should be installed in flexible units to match proven capacity.

Chapter XVIII. Mine Management

“Good mine management is based upon three elements: first, sound engineering; second, proper coördination and efficiency of every human unit; third, economy in the purchase and consumption of supplies.”

Success requires sound business management driven by innate administrative ability, not simply experience in unrelated mercantile fields. The mining engineer is a crucial and highly varied role, often acting as the manager’s trusted aid and spanning mechanical, civil, electrical, and metallurgical engineering, along with geology and physics. Consulting engineers provide valuable, non-exclusive expertise. Due to the constant depletion of assets, management must maintain continuous inventory via systematic and scientific sampling of working faces, not just when a sale is pending. One of the most common mistakes is nepotism—filling responsible positions with inexperienced relatives or friends.

• Chapter Key Points:
  • Sound management relies on engineering efficiency and supply economy.
  • The engineer performs a vast array of technical functions.
  • Managers must avoid nepotism and employ competent professionals.

Chapter XIX. Prices of Metals

“There is only one product of mines that has a constant market value, viz., gold.”

Gold is the only mine product with a constant market value, set at the “mint value” of $20.6718 per Troy ounce, established because gold is the standard of value. All other base metals are handled on avoirdupois weights. Silver has a fluctuating market price, set daily in New York and London. Platinum is more than twice as valuable as gold due to limited production (mostly Russia) and increasing usage. Tin is controlled by London markets. Copper prices are set daily in New York, with “lake” copper (Lake Superior, the purest) selling slightly higher than electrolytic copper. Iron and manganese are sold to smelters based on tons of ore. Producers of lead and zinc (spelter) receive lower prices than the market quotations, with the difference consumed by freight, smelting, and middlemen profit.

• Chapter Key Points:
  • Gold has a fixed market price of $20.6718 per Troy ounce.
  • Platinum is the most valuable metal, with restricted production driving high prices.
  • The US produces over 60% of the world’s copper.

Chapter XX. Mine Accounting

“The only persons who have a reasonable right to be secretive are those who have something they do not care to share or divulge to their fellow-men.”

There is no uniformity in mine accounting practices because conditions vary drastically between districts and types of mines. Strong companies maintain detailed accounts that track expenditures for every specific operation, which is highly useful for assessing labor efficiency and preventing cost leaks. While some successful companies (e.g., United Verde) maintain tight secrecy, others (e.g., Portland Gold Mining Company) keep their records entirely open. The modern trend favors publicity in all dealings. Secrecy is generally unwarranted for legitimate coal or copper mining companies unless they are tax dodgers, trespassers, or involved in research or maintaining a temporary market monopoly.

• Chapter Key Points:
  • Mining lacks uniform accounting systems due to operational diversity.
  • Detailed accounts prevent leaks and gauge efficiency.
  • Legitimate mining should generally avoid secrecy and favor publicity.

Chapter XXI. Investment in Mining Stocks

“Concerning the average stock purchaser, then, we may conclude that it is speculation rather than true investment that he is seeking.”

The general public is drawn to mining stocks by the speculative lure of potential large returns. The author stresses that safe investment is possible if the public uses the same sound business sense they apply to other purchases. Prospectuses are often used as “bait,” and 75% are deemed unreliable due to willful misrepresentation or gross exaggeration. Investors are cautioned against companies that guarantee specific dividends or those that sell treasury stock while simultaneously declaring dividends (“get-rich-quick” schemes). Failures frequently result from management mistakes like nepotism (hiring inexperienced relatives) or the investor’s failure to secure a competent engineer’s report. Investors must learn to curb their gullibility and recognize that mining success depends on invisible factors and sound management, not luck.

• Chapter Key Points:
  • Investors should purchase stock with sound business sense, not speculative intent.
  • Avoid companies that guarantee dividends or exaggerate prospects.
  • Hiring a competent engineer to assess value is essential protection.

Chapter XXII. The Men of the Future in Mining

“We look to the young men of the present and future to correct all of the shortcomings that have hindered the establishment of mining upon its deserved plane of stability in the minds of the general public.”

Alarmist fears about the exhaustion of the world’s metal reserves are generally unfounded; vast undeveloped areas and deep ore bodies remain. Apparent decline in old mining districts is often due to outdated methods, not ore exhaustion. Technological advances continually equalize depletion rates, ensuring that mining will be carried on with increased magnitude as long as man exists. Examples include the profitable treatment of mine dumps that were previously considered waste. Future success in mining rests on young men who are expected to place the industry on a legitimate plane of stability. While college training is not strictly essential, a technical, mining education significantly improves the chances of success for operators and engineers.

• Chapter Key Points:
  • Metal exhaustion concerns are misplaced; resources remain vast.
  • Technology ensures that mining will continue to expand.
  • Technical education and innate business ability are key for future professionals.

Chapter XXIII. Miscellaneous Considerations

“It seems to be a fact that every tyrant eventually proves his own undoing.”

This chapter addresses external issues, particularly the historic tyranny of custom smelter and milling monopolies in the West. By eliminating competition, these trusts imposed exorbitant charges and arbitrary prices, forcing potentially profitable mines to close. However, this greed led to the trusts’ diminishing business, as oppressed miners installed their own concentration and reduction plants. This revolt resulted in wonderful advances in metallurgical processes. The leasing system (renting property to miners who pay a percentage royalty) has often proved the only successful way to operate mines that companies found unprofitable, as lessees work with diligence and economy. The author concludes by reiterating his belief in legitimate mining, emphasizing that close scrutiny of every operation, method, and employee is necessary for success.

• Chapter Key Points:
  • Monopolistic smelter trusts imposed unjust charges on miners.
  • Miners countered smelter tyranny by installing their own plants.
  • Leasing systems prolong the life of mines uneconomical for company operations.

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Notable Quotes from the Book

1. “So long as men—or women—will take as fact the word of any untrained or inexperienced individual concerning investments, just so long will there be resultant financial losses, no matter what the line of business.”
2. “The simple fact that a man can get some gold-bearing dirt from a hole in the ground does not mean that he has a mine.”
3. “At bituminous and anthracite mines whose products contain objectionable amounts of impurities, it is a common practice to subject the output to a Washing to remove the deleterious substances before shipment to the market.”
4. “Our own day has witnessed the subjugation of the Boer. Because of Mexico’s mineral wealth, many optimistic Americans are beginning to prophesy the annexation of our sister republic.”
5. “A heavy, troublesome rock which accumulated in the sluices, much to the disgust of the miners, turned out to be cerussite, a fine ore of lead.”
6. “This is obviously the only fair plan, and it is hoped that, whenever the legislators at Washington get time to give to the matter the attention it deserves, our nation will be favored with a revision of this and a number of other objectionable mining laws which have retarded the industry.”
7. “In mining regions, it is generally the case that the mines, themselves, are above the settlements in which are the railroads or treatment plants, so that the mine products will transport readily by the natural force of gravity.”
8. “An adit mine is not a practicable thing in a flat country like Nevada or the Rand, but in the rough country of the San Juan it is the customary kind of a mine.”
9. “The business of mining is one which is most successful only when actually depleting the assets at the most rapid rate.”
10. “The work of sizing up the quantity and the value of available ore is known as sampling. It is not well to limit the practice of sampling to the times only when a sale is contemplated.”

About the Author

Arthur J. Hoskin, M.E., was a highly qualified mining professional responsible for this non-technical exposition on profitable mine operation. Hoskin served as a Consulting and General Mining Engineer. Among his notable professional roles, he was the Western Editor of “Mines and Minerals” and previously held the position of Professor of Mining at the Colorado School of Mines. He was also a member of the American Institute of Mining Engineers and the Colorado Scientific Society. The book, The Business of Mining, was published in 1912 and aims to educate American laymen, focusing on the economics and proper conduct required to treat mining as a reliable business rather than speculation. The sources provided do not contain details regarding other books authored by Hoskin or personal biographical details outside of these professional credentials.

How to Get the Most from the Books

Read this book to learn the essential economic and business principles of mining, ensuring you apply sound scrutiny and avoid relying on untrained advice before investing.

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Conclusion

The ultimate message of The Business of Mining is that the mining industry is a basic foundation of commerce and should be treated as a legitimate business, rather than a gamble. The author concludes with a strong reiteration that when operations are built upon sound business principles, incorporating strict attention to economy and expert advice from the start, failures are minimized. This work, prepared for laymen, provides the simple descriptions and elementary details necessary to guide them toward successful financial involvement and to avoid the pitfalls of fraud, premature investment, and poor management.