How Does Mineral Extraction Work? How Minerals Are Extracted

The ground beneath your feet could contain valuable resources, and mineral extraction is how they’re taken from the ground for use. These minerals can become the fuel in our cars, the metals in our phones, and the energy that powers our homes. 

Keep reading to learn about how mineral and mining companies bring buried ore deposits to the surface through various mining operations, from oil and gas extraction to coal mining. 

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Key Takeaways

• Fossil fuels like crude oil and natural gas require different extraction methods based on where they are found underground. 
• Major mineral-producing countries like Australia, China, and the United States lead global production, with each country known for specific mineral resources. 
• Oil and gas companies, production operators, integrated corporations, and mining companies are the primary businesses that perform actual mineral extraction work.
• Property owners can identify potential mineral deposits through local research before reaching out to brokers like The Mineral Auction to sell their rights.

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How Are Fossil Fuels Extracted?

Fossil fuels are the primary source of energy in the world today. These resources require careful extraction techniques that vary based on their physical form and location.

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Crude Oil Extraction

The crude oil extraction process follows these key steps:

1. Drilling the Well – Oil extraction begins with drilling a deep hole into the earth using an oil rig. Workers install steel pipes called casings to give the well structure and strength. 
2. Primary Recovery – When underground pressure is high enough, oil naturally flows to the surface through the well without additional equipment.
3. Secondary Recovery – As pressure drops over time, operators pump water or gas into the formation to push more oil out and maintain production.
4. Artificial Lifting – Beam pumps and electrical submersible pumps bring oil up when natural pressure alone cannot do the job.
5. Tertiary Recovery – Advanced methods use heat, chemicals, or special gases to make thick oil flow more easily through the rock formations

Processing and Transport – After extraction, pipelines carry crude oil to processing facilities where refineries separate it into different products using distillation and chemical treatments.

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Natural Gas Extraction

Natural gas extraction follows a systematic approach with these primary methods used today:

• Vertical Drilling – This method works well when gas sits close to the surface in conventional deposits. These wells typically reach depths of 300 to 800 meters for straightforward extraction.
• ‍Horizontal Drilling – For this method, after drilling straight down, about 1,000 feet above the target zone, operators steer the drill bit sideways. The horizontal section extends one or two miles through the same rock layer to access more gas with fewer surface locations.‍
• Hydraulic Fracturing – This technique releases gas trapped in tight rock formations, such as shale. It functions by pumping a fluid made of 99.5% water and sand, plus 0.5% chemicals, at high pressure. ‍
• Gas Processing – After extraction, pipelines carry natural gas to processing facilities that remove impurities and separate methane from other components for commercial use.

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How Is Coal Extracted?

The modern mining process coal miners use for each property depends on how the coal seams lie beneath the surface. Which method is called for, between surface or subsurface mining systems, can have big impacts on your experience as a property owner.

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Underground Mining

When coal is buried deep underground, miners need to dig tunnels and shafts to reach it. One method is room-and-pillar mining, in which coal is cut in a pattern that leaves strong pillars to support the roof. 

Another method is longwall mining, which uses a large machine called a longwall shearer to cut coal along a long, straight wall. As the machine moves forward and the coal is taken out, and the roof behind it is allowed to fall in a safe, controlled way.

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Surface Mining

Surface mining works best when coal lies close to the ground surface. Mining companies remove the soil and rock (called overburden) covering the coal seam. This overburden gets set aside for later reclamation work. Large machines, such as excavators and haul trucks, scoop away the overburden to expose the coal. After mining, crews replace the overburden and restore the land surface.

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Strip Mining

Strip mining removes material in long strips to access shallow coal deposits and ore deposits. Operators take off one strip of overburden and mine the exposed coal or ore. They place the removed overburden into the previous strip as mining progresses. 

This technique is best for flat or gently rolling terrain and can cover large areas, but it requires careful planning for land restoration. The method also works well for both coal and metal ore mining when deposits occur in horizontal layers near the surface.

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Open Pit Mining

Open-pit mining creates a large hole in the ground to reach mineral deposits. Although it’s similar to surface mining, the hole typically goes much deeper. Mining operations use open-pit methods for extracting coal, copper, iron ore, and other buried ore bodies. Proper management prevents acid mine drainage that can occur when water reacts with exposed minerals.

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Major Mining Countries and the Resources They’re Known For

Now that you’ve learned a bit about how mineral extraction works, you might be curious about where these extraction activities happen the most. Several countries lead the world in mining because they have an abundance of natural resources and strong experience in extracting them. These countries include:

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Australia

Australia leads the world in mining operations across several categories. The country produces more bauxite, iron ore, and lithium than any other country. Australia also ranks among the top producers of coal, aluminum, copper, gold, manganese, nickel, silver, uranium, and zinc.

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China

China produces the most minerals of its types through extensive mining operations. The country dominates gold production and leads in rare earth elements that power modern electronics. China also mines significant amounts of coal, iron ore, and non-ferrous metals.

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The United States

The US ranks third globally in mineral production. Nevada accounts for 70% of American gold production, from both underground and open-pit mining. The country also produces substantial coal, copper, and industrial minerals, with the US mining industry being a major player. Oil and gas extraction operations span from Texas to North Dakota to Alaska, making the United States a leader in fossil fuel production.

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Russia

Russia holds vast mineral deposits, which are extracted through difficult mining operations. Russia ranks among the top producers of gold, nickel, platinum, and palladium through metal ore mining. 

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Canada

Canada leads in potash, uranium, cobalt, and platinum group metals as precious metals. Saskatchewan's Athabasca Basin contains the world's highest-grade uranium deposits. Canadian mining benefits from technical expertise in both underground and surface mining.

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Brazil

Brazil has the world's largest niobium reserves and ranks third for bauxite and iron ore from major mining operations. The mining industry supplies key minerals for steel production and industrial processes. A major mining operator in the country operates world-class iron ore mines in the Carajás region using advanced strip mining and open-pit mining methods. 

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What Companies Extract Mineral Resources?

Several different types of companies extract minerals from the ground. Knowing these companies helps property owners identify potential buyers for their mineral rights:

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Mining Companies

These companies extract valuable minerals such as coal, gold, silver, copper, or iron ore through underground mining and surface mining. They purchase mineral rights mainly for mining operations to access buried ore deposits. In addition to the methods above, mining companies may also use placer mining for certain precious metals, which involves sifting placer ore materials, consisting of sediment and valuable minerals like gold. 

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Production Companies

These private companies are involved in the extraction and production of oil and gas from existing reserves. They purchase mineral rights to expand their production capabilities and increase their reserves through active mining operations.

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Integrated Oil and Gas Companies

These companies are involved in all aspects of the oil and gas value chain, from exploration and production to refining, distribution, and marketing. Integrated companies purchase mineral rights to secure long-term access to oil and gas reserves and ensure a consistent supply for their refining and marketing operations through controlled extraction.

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Independent Operators

Independent operators are smaller companies that specialize in specific regions or fields in oil and gas extraction. They often focus on buying and developing oil and gas reserves in a specific geographic area. Independent operators are often more likely to buy your mineral rights at a fair price.

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How to Find Mineral Deposits on Your Property

You won’t find out if your land holds valuable resources by just digging around; there are certain steps you need to take:

• Conduct Local Research – Research your area’s oil production history and mining operations. Look for oil wells, fields, or rigs that indicate active oil and gas extraction. Geological maps, surveys, and state energy offices can also help you determine whether your land contains oil or is near a productive basin.
• Hire a Professional – You can consult a geologist or petroleum engineer who understands the mining process. These professionals survey your land, analyze the reservoir rock, and check for indicators of underground reservoirs or buried ore deposits. 
• Collect Soil and Rock Samples – A geologist can conduct tests for the presence of hydrocarbons or mineral resources on your property. This process can reveal whether the correct elements are present for petroleum extraction or metal ore mining.
• Look for Surface Clues – Visible signs such as strange odors, oil stains, waxy substances, or bubbling puddles may indicate the presence of heavy oil reservoirs or liquid natural gas near the surface. Coal outcrops may also appear in hillsides where erosion exposes the seam. These surface indicators don't confirm a commercial deposit suitable for mining operations, but they're worth noting during property evaluation.‍
• Get Legal Help – While oil or mineral resources can be present on your land, you may not legally own the mineral rights. You should contact an attorney or mineral rights broker familiar with property rights and mineral ownership to determine whether you can legally profit from extraction.

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Turn Your Mineral Rights Into Profit With The Mineral Auction Today

If you find valuable mineral resources on your property, you can sell those rights to companies interested in extracting those resources. Understanding how mineral extraction works can help you feel more confident and prepared before starting any negotiations.

The Mineral Auction helps mineral owners get fair market value by creating competition among qualified buyers. Through a transparent mineral auction process, you can receive strong offers for your subsurface resources, whether those resources involve oil and gas extraction, coal mining, or metal ore mining operations.

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Get the best value for your mineral rights today through The Mineral Auction's transparent auction processes.

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