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Visualizing the Abundance of Elements in the Earth’s Crust

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Visualizing the Abundance of Elements in the Earth’s Crust

The Earth's Crust

Visualizing the Abundance of Elements in the Earth’s Crust

Elements in the Earth’s crust provide all the basic building blocks for mankind.

But even though the crust is the source of everything we find, mine, refine, and build, it really is just scratching the surface of our planet.

After all, the innermost layer of the Earth, the core, represents 15% of the planet’s volume, whereas the mantle occupies 84%. Representing the remaining 1% is the crust, a thin layer that ranges in depth from approximately 5-70 km (~3-44 miles).

This infographic takes a look at what elements make up this 1%, based on data from WorldAtlas.

Earth’s Crust Elements

The crust is a rigid surface containing both the oceans and landmasses. Most elements are found in only trace amounts within the Earth’s crust, but several are abundant.

The Earth’s crust comprises about 95% igneous and metamorphic rocks, 4% shale, 0.75% sandstone, and 0.25% limestone.

Oxygen, silicon, aluminum, and iron account for 88.1% of the mass of the Earth’s crust, while another 90 elements make up the remaining 11.9%.

RankElement% of Earth's Crust
1Oxygen (O)46.1%
2Silicon (Si)28.2%
3Aluminum (Al)8.2%
4Iron (Fe)5.6%
5Calcium (Ca)4.1%
6Sodium (Na)2.3%
7Magnesium (Mg)2.3%
8Potassium (K)2.0%
9Titanium (Ti)0.5%
10Hydrogen (H)0.1%
Other elements0.5%
Total100.0%

While gold, silver, copper and other base and precious metals are among the most sought after elements, together they make up less than 0.03% of the Earth’s crust by mass.

#1: Oxygen

Oxygen is by far the most abundant element in the Earth’s crust, making up 46% of mass—coming up just short of half of the total.

Oxygen is a highly reactive element that combines with other elements, forming oxides. Some examples of common oxides are minerals such as granite and quartz (oxides of silicon), rust (oxides of iron), and limestone (oxide of calcium and carbon).

#2: Silicon

More than 90% of the Earth’s crust is composed of silicate minerals, making silicon the second most abundant element in the Earth’s crust.

Silicon links up with oxygen to form the most common minerals on Earth. For example, in most places, sand primarily consists of silica (silicon dioxide) usually in the form of quartz. Silicon is an essential semiconductor, used in manufacturing electronics and computer chips.

#3: Aluminum

Aluminum is the third most common element in the Earth’s crust.

Because of its strong affinity for oxygen, aluminum is rarely found in its elemental state. Aluminum oxide (Al2O3), aluminum hydroxide (Al(OH)3) and potassium aluminum sulphate (KAl(SO4)2) are common aluminum compounds.

Aluminum and aluminum alloys have a variety of uses, from kitchen foil to rocket manufacturing.

#4: Iron

The fourth most common element in the Earth’s crust is iron, accounting for over 5% of the mass of the Earth’s crust.

Iron is obtained chiefly from the minerals hematite and magnetite. Of all the metals we mine, over 90% is iron, mainly to make steel, an alloy of carbon and iron. Iron is also an essential nutrient in the human body.

#5: Calcium

Calcium makes up about 4.2% of the planet’s crust by weight.

In its pure elemental state, calcium is a soft, silvery-white alkaline earth metal. It is never found in its isolated state in nature but exists instead in compounds. Calcium compounds can be found in a variety of minerals, including limestone (calcium carbonate), gypsum (calcium sulphate) and fluorite (calcium fluoride).

Calcium compounds are widely used in the food and pharmaceutical industries for supplementation. They are also used as bleaches in the paper industry, as components in cement and electrical insulators, and in manufacturing soaps.

Digging the Earth’s Crust

Despite Jules Verne’s novel, no one has ever journeyed to the center of Earth.

In fact, the deepest hole ever dug by humanity reaches approximately 12 km (7.5 miles) below the Earth’s surface, about one-third of the way to the Earth’s mantle. This incredible depth took about 20 years to reach.

Although mankind is constantly making new discoveries and reaching for the stars, there is still a lot to explore about the Earth we stand on.

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Misc

How Royalty Companies Manage Risk for Superior Returns

Royalty companies can flexibly manage risk more easily compared to mining companies, while still offering precious metals exposure.

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Balancing Risk for Royalty Companies vs. Mining Companies

Risk is at the forefront of every company’s decision-making, especially for mining companies that operate large-scale mines in various jurisdictions.

While producing precious metals naturally carries a variety of risks, there is another way to get exposure to precious metals production with much lower risk: royalty companies.

Royalty companies provide up-front capital to miners in exchange for royalties on future mine production, providing a steady stream of revenue and precious metal exposure with far less risk attached to the company.

This graphic sponsored by Nomad Royalty looks at the risks royalty companies and mining companies face, and how royalty companies are able to mitigate and diversify with more flexibility to deliver stronger returns.

Trimming from the Top Line

By providing capital in exchange for a royalty or stream on a mine, royalty companies are an essential part of mine funding across the world. Along with competitively priced capital for mine developers, the lifetime royalties or streams received in return ensure royalty companies are invested in a mine’s lifelong success.

Mining royalty: A recurring percentage (typically between 0.5% to 3%) of revenue generated from a mine’s ore and mineral sales, paid out to the royalty holder.

Mining stream: An agreement for a recurring purchase of a percentage of a mine’s produced metals, at a previously agreed upon price (typically lower than the metal’s current market value). Typically mines will offer streams on metal by-products of the mine.

Royalties and streams are known as non-participating interests, meaning that the holders (royalty companies) have no obligation or expectation to further fund or assist with the mine’s production.

Along with this, royalties are from a mine’s top line revenue, meaning that the percentage given to royalty holders is calculated before operational expenses, sales costs, and other expenses are deducted. The difference between top line revenue and profit after expenses can be massive, changing the value of a royalty by millions of dollars.

YearVeladero Mine RevenueProfit after AISC Deducted2.5% Royalty of Revenue2.5% Royalty of Profit
2015$720M$106M$18M$3.7M
2016$685M$252M$17M$6.3M
2017$788M$219M$20M$5.5M
2018$732M$90M$18M$2.3M
2019$772M$166M$19M$4.2M
2020$666M$62M$17M$1.5M

Source: Mining Data Online

Both of these factors have a massive impact on the value of a royalty, as they ensure steady revenue shielded from the mine’s operational costs while requiring no maintenance or upkeep from the holder.

Sleeker Business, Lower Expenses

The nature of royalty companies naturally enables them to be lightweight businesses with incredibly low expenses. Compared to the many employees with varying skills needed to manage orebody exploration, project construction, and daily mine operations, royalty companies only require a tight team of specialized individuals.

While the top three gold mining companies (Newmont Goldcorp, Barrick Gold, and Newcrest Mining) have an average of around 15,500 employees each, the top three precious metals royalty companies (Franco-Nevada, Wheaton Precious Metals, and Royal Gold) each have less than 50 employees.

With minimal G&A expenses and no exposure to fluctuating operational costs, royalty companies skirt large amounts of operational risk compared to mining companies. Setting up a royalty agreement carries far less risk and takes much less time compared to developing a mine, meaning royalty companies can be much more nimble and lock down future revenue more easily.

This protection from operational risk allows for steadier revenue to ride out the bumpy market cycles commodities can have, and royalty companies typically have dividend policies to reflect this operational and financial stability.

More Freedom to Diversify Risk

The lightweight nature of royalty companies allows them more freedom and flexibility to diversify a variety of risks. By spreading out their capital properly, many of the risks mining companies struggle to avoid can be easily sidestepped by a royalty company.

While many mining companies tend to cluster their operations in single regions based on the assets they own or can purchase, royalty companies can more freely decide on which jurisdictions to set up royalty agreements. This also includes the perk of spreading out counterparty risk, as royalty companies can choose to work with a diverse selection of mine operators.

Along with diversifying royalties across jurisdictions and counterparties, royalty companies can carefully tune their portfolio’s exposure to specific commodities, unlike mining companies who cannot change what they find underground.

Royal Rewards for Reduced Risk

If having reduced exposure to this variety of risks wasn’t enough, royalty companies reap a variety of benefits compared to mine operators. Since royalty and stream agreements often last for the life of a mine, royalty holders receive the benefits of resource extension and mine expansion at no additional cost.

They also benefit from increases in precious metals prices, as increases in a mine’s revenue is reflected for royalty and stream holders as well. In times of metals price downturns, royalty companies are protected by their high margins and can use their cash reserves and credit to invest in royalties at a discount.

With far more freedom and flexibility in diversifying their risk, precious metals companies like Nomad Royalty provide investors exposure to gold and silver while protecting them from the many risks that plague the mining industry.

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The Largest Copper Mines in the World by Capacity

Where are the world’s largest copper mines, and just how large are they? Here are the 20 largest copper mines by capacity.

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The Largest Copper Mines in the World

Copper is one of the most-used metals in the world, for good reason.

Global copper production has expanded with populations and economies, especially in China, which consumed 54% of the world’s refined copper in 2020. Copper’s demand comes from various industries, ranging from construction to renewable energy.

But before copper reaches its array of end-uses, miners have to extract and refine from deposits within the ground. So where are the world’s largest copper mines, and just how large are they?

Types of Copper Deposits

The location of mines ultimately depends on the occurrence and discovery of copper deposits. There are two main types of copper deposits:

  • Porphyry deposits:
    These are copper ore bodies formed from hydrothermal fluids from magma chambers that lie deep below the deposit.
  • Sediment-hosted deposits:
    These deposits are formed when copper-bearing fluids mix with permeable sedimentary and volcanic rocks.

Copper is primarily sourced from porphyry deposits, which are concentrated in the Americas. Therefore, many of the world’s largest copper mines operate in this region.

Top 20 Copper Mines by Capacity

North, South, and Central America collectively host 15 of the 20 largest copper mines. These three regions combine the capacity for nearly 36% of global copper production in 2020.

RankMineCountryAnnual Production
Capacity (tonnes)
Capacity as a %
Global Production†
1EscondidaChile 🇨🇱 1,400,0007.0%
2CollahuasiChile 🇨🇱 610,0003.1%
3Buenavista del CobreMexico 🇲🇽 525,0002.6%
4MorenciU.S. 🇺🇸 520,0002.6%
5Cerro Verde IIPeru 🇵🇪 500,0002.5%
6*AntaminaPeru 🇵🇪 450,0002.3%
6*Polar DivisionRussia 🇷🇺 450,0002.3%
8Las BambasPeru 🇵🇪 430,0002.2%
9GrasbergIndonesia 🇮🇩 400,0002.0%
10El TenienteChile 🇨🇱 399,0002.0%
11*ChuquicamataChile 🇨🇱 370,0001.9%
11*Los BroncesChile 🇨🇱 370,0001.9%
11*Los PelambresChile 🇨🇱 370,0001.9%
14KansanshiZambia 🇿🇲 340,0001.7%
15Radomiro TomicChile 🇨🇱 330,0001.7%
16*KamotoCongo 🇨🇩300,0001.5%
16*Cobre PanamaPanama 🇵🇦 300,0001.5%
18Bingham CanyonU.S. 🇺🇸 280,0001.4%
19ToquepalaPeru 🇵🇪 265,0001.3%
20SentinelZambia 🇿🇲 260,0001.3%

*Mines with equal capacities have the same rankings. †2020

The Escondida Mine in Chile is by far the world’s largest copper mine. Its annual capacity of 1.4 million tonnes means that it can produce more copper than the second and third-largest mines combined.

Porphyry copper deposits are often characterized by lower grade ores and are mined in open pits. As a result, some of the top copper mines are also among the world’s largest open pits. The Bingham Canyon Mine (seen below) in Utah, United States, is the deepest open pit with a depth of 1.2 km. It’s also the largest man-made excavation on Earth, spanning 4 km wide.

Chuquicamata and Escondida are the second and third-deepest open pits, respectively.

Indonesia’s Grasberg Mine is another notable name on this list. It produces both gold and copper on a massive scale and has the world’s largest known reserve of gold and the second-largest reserve of copper.

Overall, the top 20 mines have the capacity to produce nearly nine million tonnes of copper annually—representing 44% of global production in 2020. However, with demand for refined copper expected to rise 31% between 2020 and 2030, these existing sources of supply might not be enough.

Falling Grades, Rising Demand: New Mines on the Block?

According to the International Energy Agency, average copper ore grades in Chile have declined by 30% in the last 15 years. Since Chile’s mines produce more than one-fourth of the world’s copper, these falling ore grades could be a cause for concern—especially with a deficit looming over the market for refined copper.

New copper mining projects are becoming more valuable and it wouldn’t be surprising to see fresh names on the list of the largest copper mines. For example, the Kamoa-Kakula Mine, which started production in May 2021, is expected to churn out 800,000 tonnes of copper annually after expansion. That would make it the second-largest copper mine by capacity.

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