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AngloGold to Search Seabed for Minerals, Essay Example
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There is currently a massive effort by Anglo-Gold Ashanti Ltd. and De Beers companies to mine the seafloor for gold and other minerals that can be used to create jewelry and other products to be sold on the open market. These two companies appear to be the two main companies that are working to mine the seafloor for these types of minerals.
Two of the largest mining companies that specialize in precious metals and base metals are Neptune Metals and Nautilus Metals Inc. based out of Australia and Canada, respectively. Neither of these companies has begun to mine the seafloor for minerals, although Neptune has just recently applied for its mining license to begin mining the seafloor. Together, Anglo-Gold and De Beers hold the only mining licenses, which make them the sole competitors in this industry
The minerals are highly sought after for their value in jewelry production and total profit on the open market. Last year, De Beers produced almost 1.06 million carats of gold by mining waters that ranged from 90 to 140 meters deep. Anglo-Gold is hoping to add the necessary funding for the two companies to work together to more than double that production from last year. Overall, mining underwater is a very new concept and has only recently begun to be used by mining companies looking specifically to obtain minerals and precious metals from the earth. Along with this, very few companies have the mining resources and technology that are necessary to begin mining efforts underwater. These two companies could hold a global monopoly on the underwater mining industry, at least for the time being until new companies can begin receiving licenses and technological resources to do so.
References
Stewart, Robb M. “AngloGold to Search Seabed for Minerals – WSJ.com.” The Wall Street Journal – WSJ.com. 06 Oct. 2009. Web. 06 Oct. 2009. <http://online.wsj.com/article/SB125476737822665337.html>.
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