As the Olympics draw to a close and China begins to restart its factories, the mining industry finds itself at a crossroads. Spot prices for metals have declined recently, but operating costs have not. In a report covering the Peru Gold Symposium, Newmont’s chief executive explained publicly how the price of gold needs to be at least $700/oz just to cover mining costs. That was four months ago and the figure has probably climbed higher now. A report on the nickel markets demonstrates how escalating costs for energy (natural gas and electricity) and sulphuric acid are squeezing profit margins. It appears, for the time being, that mining costs may have caught up with the higher prices the industry has become accustomed to over the past few years. When the economic drivers begin to churn again in China, along with what’s already happening in India and Brazil, mined commodity prices could be headed north again soon. Mining is a tough business and this is not unfamiliar territory. Fortunately, our industry employs some of the world’s brightest minds. These professionals—E&MJ readers—routinely turn to intuition and technology to keep their competitive edge.

Two more stories (see the features Feasibility Studies and Sustainable Developments) offer readers some thought-provoking strategies on how to price and plan future projects. One clear message is that mining companies need to be honest with themselves when it comes to risk analysis. They also need to keep an open mind and consider the entire impact when they are planning projects. Savvy engineers can apply technology to improve mine sustainability. Through proper planning, they can reduce the size of the mine’s footprint and its overall power demand. Yes, it’s politically correct to be green, but in many cases it’s also cost effective.

E&MJ’s editorial mantra is to help its readers operate mines and processing plants more safely, efficiently and cost effectively. Unsafe, inefficient operations will not last—it’s a self-fulfilling prophecy. And, no one wants to be a part of that anyway. Progressive mining engineers, metallurgists and geologists want to empower their organizations, grow their careers and be a member of a winning team. They are seeking ways to add tangible value and we, at E&MJ, are trying to offer some tools to help them achieve this goal and recognize those that succeed. Enjoy this edition of E&MJ and please stop by Booth 767 and meet the editorial team if you are attending MINExpo 2008.

Steve Fiscor, Editor-in-Chief, E&MJ