Economic aspects of postmining land use planning

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis, it was determined that the profitability of a project is most sensitive to delays in production, particularly if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.