Boom, Bust, Boom: A Story About Copper, the Metal that Runs the World

There is a saying in the mining world: “It used to be one poor man digs a hole and gets rich. Today a rich company digs a hole and goes broke.”

After ten months of working in investment banking mostly focused on metals and mining, I decided to finally pick up a book about the business of mining itself. Although I’ve previously read books on the history of natural resources (e.g. Daniel Yergin’s books on oil, Power of Gold), this was the first book that focused solely on mining.

Overall, it was a compelling read. Although I was expecting a more technical book on mining itself, particularly the technical and geological aspects, this book’s focus on the environmental and social impacts of mining was illuminating. Prior to reading this book, I was largely ignorant of the negative ramifications of mining.

The author did a good job presenting a balanced view of mining, which I think can be summed up as a necessary evil. Unfortunately, mining commodities such as copper, nickel, and zinc are necessary for our standards of living. The air-conditioner, the computer, railways – these things would not be as convenient or available without the presence of large scale mining.

It was also fascinating to read the author bring up mines that I’m familiar with, such as the Rosemont mine in Arizona. Recently, I worked on a private equity’s activism campaign to refresh the Board of Directors of Hudbay Minerals, which owns the Rosemont mine and is attempting to finalize permitting and begin construction.

The book’s focus on the Pebble mine, Resolution Copper mine, and Grasberg mine is also interesting. In addition to their unique social and political considerations, the scale and complexity of these mines are hard to fully comprehend.

The author finally concludes that in the battle of interests between the mining corporation and the local community, the corporation almost always win. Unfortunately, I concur. There is a common fixation of political leaders across all of human history – security of resources, at any cost.

I wonder if technology will ever solve some of the ills of the mining sector? Indeed, the mining method has been largely unchanged since humans first started mining – we pick up ore, crush it, and look for the precious commodity within. There was mention of promising new methods of extraction, such as Curis Resources’ in-situ mining method. But I have to imagine that someone will come up with a cleaner method for extraction in future. We can now grow meat in labs, FFS.

I came away from the book with a greater understanding, appreciation, and perhaps even apprehension, of the mining industry.