Natural and Mineral Resources

Definition

These are naturally occurring substances or materials that can be extracted from the earth and used for economic gain. They include things like oil, coal, gold, water, and timber.

Analogy

Think of natural and mineral resources as the ingredients in a recipe. Just like you need flour, sugar, eggs to bake a cake, industries need these resources to produce goods and services.

Related terms

Nonrenewable Resources: These are resources that do not replenish within a human lifespan such as fossil fuels (coal, oil) or minerals (gold).

Renewable Resources: These are resources that can be replenished naturally over time like sunlight or wind energy.

Extraction Industry: This refers to businesses involved in removing natural resources from the earth such as mining companies or oil drilling firms.