Capital & Economic Rent Considerations In International Mineral Development ? Introduction

This paper has been written as one of a group of papers dealing with the subject "Cost Elements in Mining". What are cost elements in mining? The mine operator thinks of direct mining costs in terms of labor, materials, supplies and power, and we might define cost more generally as the price paid to acquire or produce something. Economic theory also has its concepts of cost. From one point of view, that of the consumer, the cost of mineral commodities might be viewed as the total price industry pays for mine output. Similarly, the mining company engaged in the on-going business of finding, developing and operating new mines is concerned very much today with the distribution of all the revenue paid for mine output and not just with its direct or controllable cash costs. In other words, what will the labor force, the supplier of energy, explosives, and reagents, and the supplier of government services, management, capital and the ore reserves receive for their contribution to production.