Potential markets for materials can be identified and profit generated if extraction cost is brought down.
Also, the nickel ore was of a lower grade than originally thought, so extraction costs were higher.
In 2008, the average extraction cost of oil was less than $5 per barrel.
The extraction costs are still higher than in an ordinary field, but the finding costs are zero.
Even before the peak was reached, high extraction costs could cause the UK to lose the competitive advantage it currently enjoyed in manufacturing and shipping.
Oil companies quote "reserves" which some people confuse with the actual amount of oil underground, but are more to do with extraction costs.
Ore mining exceeds the demands of domestic steel mills, but export potential is weakened by high extraction costs.
The prices of coal and crude oil are currently many times higher than the corresponding exploration and extraction costs combined.
At current prices (he has been selling the stone for over $100/ton), it is estimated to be worth around $2.5 billion, minus extraction costs.
This will be reflected in higher extraction costs, which means exorbitant prices.