Oil Sands Mining in Canada
February 19, 2015
What is oil sands mining and why is it making news in Canada? Oil sand is either loose sand or partially consolidated sandstone. The sandstone is usually made up of a mixture of sand, clay and water. It is saturated with a dense form of petroleum.
Deposits are found in large quantities in Canada. Now, a company in Canada that works in the civil construction of oil sands mining projects says it is confident customers will continue to build and fund projects despite the big drop in world oil prices over the last several months.
Still, a high-ranking officer with the company admitted it is feeling the pressure stemming from customers' request to reduce fees.
The struggles are reflected in a recent overburden removal contract, which saw a purchase agreement of mining equipment that added up to more than 36 million dollars.
The article citing the mining equipment transaction also cited the timeframe of many mining projects. Those projects have lives of 40 years or more and spend years in the planning stages due to certain cost fluctuations.
It all highlights the instability of costs surrounding the mining industry as a whole.
Safe and efficient mining equipment is a must. It is one of the few constants in the ever-changing mining industry.