>>1167709Modernization leads to a different usage of the labor force.
So instead of massive amounts of people inhouse, you get a reasonable amount of people inhouse, who needs more certification.
And then on top of that, you externalize more of the cost: Parts, external repair experts
To view it in your lens, is narrow, not because there will be fewer people mining/refining, but also because it means those people will keep their local community alive and keep other industries alive.
To have a mining operation you need onsite:
1. A mine
2. A workforce
And then nearby, within reasonable commute distance, you need:
3. A local metal workshop, to avoid 2-4 weeks of production stop due waiting for parts
4. Something nearby for the sake of commuting long distances. Can be buss station at a town center, alongside a car rental agency.
Or a train station.
Or a small airport/helipad
5. A certification agency in the county that provides certification for the needed heavy industry machines
6. Enough nearby infastructure that its possible to build a railway stretch to the nearest cargo terminal
7. A nearby refinery, to reduce overhead cost of transportation and increasing value of what is mined. The refinery also needs railroad access, or access to the sea for transportation to storage/customer
Now, as these are in places, the local community can suddenly use the bigger operation to subsidize smaller industry. From metal widgets, to running construction companies with the surplus labor. If the operation grows or shirnks, there is suddenly large warehouses that other companies can hire for expansion as well.
And thats on top of all the smaller stores that exists because the workforce needs food. And the infastructure needed to keep such a thing going, in terms of water/electricity/sewage/etc.
And refining is more profitable than mining, meaning refining is even more important.