Development Of A Preliminary Methodology For Determining Maximum Economic Recovery

This study was initiated by the Bureau of Land Management (BLM) to develop guidelines for determining the maximum economic recovery of resources in coal mines. The work was in response to a requirement in the Mineral Leasing Act of 1920 and Federal regulations. The intent was to address the economic rainability of small, irregular reserves in existing longwall mines. In particular, there was a need to determine if room-and-pillar mining using a continuous miner (CM method) was economically sound, or whether unconventional (short or odd-shaped) longwalls could be used to recover small coal reserves economically. Small reserves, called "widgets" are left in longwall mines on one side of the mains, near outcrops and adverse geological conditions, or near any other location where reserve geometry does not lend itself to mining with a rectangular longwall panel. The work included (1) analysis of the geologic, geo-technical, and economic factors that influence the recovery of small coal reserves, (2) analysis of historic changes in supply, demand, and coal prices, (3) development of typical cost models for room-and-pillar and longwall mines, and (4) development of a practical methodology for determining maximum economic recovery. The methodology included an evaluation of the ratio of coal mined during longwall mining to that mined for development (LDR) as well as costs of maintaining coal quality depending on market conditions. The LDR is a good indicator of mine efficiency and overall coal recovery in modem longwall mines and thus is used to evaluate the