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INTRODUCTION Mineral explorationists range throughout the world looking for mineral deposits which can subsequently be made into mines. Mines are not found! Mines are made, usually at great cost and not often without significant risk. The process of making a mineral deposit into a mine involves a great deal more than a complete appraisal of the deposit. The making of a mine demands detailed feasibility studies of many factors, any one of which, if shown to be negative, could prevent the deposit from becoming a successful mine. Total feasibility analysis involves at least three major fields of study: (1) economic analysis, (2) financial analysis, and (3) political and environmental analysis. Economic analysis is essential for proper decision making at many stages in the evaluation of a mineral deposit. It is the yardstick by which the proposed mining project and alter- native investment opportunities are measured. Economic analysis is concerned with costs and potential profits and can be applied at various stages in the evaluation of a mineral deposit to determine if the project merits the additional funds necessary to bring about each succeeding stage. The nearer any deposit approaches to becoming a mine, the more carefully the economic analysis should be made. Financial analysis has reference to how, where, and at what cost the investment funds can be obtained to finance the proposed mine project. Political and environmental analysis has reference to the many intangible factors that can affect the making of a successful mine. These factors loom larger today than ever before, due to the profusion of government regulations and various environmental constraints now imposed upon the mineral industry both by law and by the weight of public opinion. Ultimately, many of these intangible factors can be resolved back into the economic analysis as an added cost to mine development, but more and more often they have become insurmountable obstacles to any development of certain deposits. The role of financial analysis and the analysis of intangible factors must never be underestimated when making a feasibility study upon which to base investment decisions; however, the emphasis of this text will be upon economic factors. THE PARAMETERS OF MINERAL ECONOMIC ANALYSIS The two major elements of economic analysis are: 1) The potential earnings or annual generated cash flow of the project. 2) The investment costs necessary to realize such earnings. If the difference between the two elements is large enough, i.e., if the return on investment from the cash flow is high enough to attract investors, the project can be said to be financially feasible. The mineral economic analysis must take into consideration many parameters, some of which are known or knowable within certain limits, and others of which are unknown or unpredictable within certain limits and for which estimates must be made. Because both known and estimated parameters enter into the same analytical computations, it is important for the analyst to realize the nature of each when considering the results of an analysis. Some parameters such as the grade of mining block, although estimated, are said to be known within mathematically defined limits. Other parameters, such as the future price for minerals produced, etc., can only be estimated or "guestimated" within reasonable limits for which no precision can be assigned. Known or Knowable Mineral Economic Parameters Known or knowable parameters are: 1) Tonnage and grade of valuable minerals for the total mineral body and for individual mining blocks. 2) Metallurgical recovery of valuable mineral. 3) Minimum operating life of mineral de- posit at any specified production rate. 4) Royalty schedule, property payments, etc. 5) Sales-purchasing agreements, smelter schedules, marketing contracts, etc.

Jan 1, 1980

Since the early 1990s it has been evident that electricity demand has outstripped investment in generation and transmission. At the same time, concerns were being expressed about the risks associated with the run down of the Maui gas field. It is axiomatic that the necessary investments firstly require a stable and supportive regulatory and fiscal environment, and secondly that such investments have long lead times. A unwillingness by successive Governments to fund the necessary infrastructure, however, lead to the profound restructuring of the electricity with the ultimate objective of transferring the investment risk from Government to the private sector. Successive power crises since 1992 result from a failure to put in place a regulatory framework necessary to provide the environment to allow the private sector to make the needed investments within the necessary timeframe. The electricity sector has now stabilised to the extent that the regulatory risks associated with generation investment have been reduced. This does not mean that risk has been eliminated, however, and both economic and environmental issues will continue to constrain investment in some power proposals particularly those in the South Island and especially any South Island coal or gas thermal proposal. This is firstly because of several very simple economic issues:  1. while the South Island may have significant coal resources it lacks a significant electricity market; 2. except for a six to ten week period in a dry year, low cost hydro will price any large-scale South Island thermal out of the market which will restrict any large scale thermal station to a dry year and/or peaking load; 3. except for a six to ten week period in a dry year, export capacity on the HVDC link to the North Island is constrained to around 964 MWe (and 482 MWe from North to South in dry years); and 4. construction of any new thermal plant in the northern half of the North Island will price any South Island thermal station out of the market. There are also significant environmental issues associated with the establishment of a large scale thermally based power station in the South Island. Because the South Island lacks any large scale economically proven gas reserves, the environmental constraints considered are those associated with coal production. A coal mine dedicated to power generation will have significant on-site impacts associated, in particular those associated with disposal of opencast overburden and visual impacts. These will, however, be partially offset by the relative remoteness of such sites to population centres. What cannot be offset, however, is the off-site impacts, in particular, CO2, SOx and NOx emissions, water disposal and acid mine drainage.

Jan 1, 2003

By M. C. LAKE

THE industrial development of the United States has been stimulated by the presence of high-grade iron ore in the Lake Superior district. These great deposits have been susceptible to economical extraction and are conveniently located for cheap lake vessel transportation to the great consuming centers. The district furnishes from 80 to 85 per cent of the iron ore annually consumed in the United States, and a full understanding of the available supply of this great commodity is so important that it is well to consider whether or not the industrial supremacy and national independence attained as a result of the abundance of cheap ore are permanent. The enormous deposits of high-grade ore available in the Lake Superior district have been the foundation upon which the vast industrial structure of the steel and allied industries has been built. It is extremely important to the country as a whole, and especially to those States and communities now dependent on Lake Superior ore for their prosperity, that their industries shall retain the particular advantages with which they are now endowed, and that a generous supply of high-grade raw material be available for their consumption at a satisfactory cost. The steel industry is so basic and fundamental that any fluctuation in the cost of its finished products as determined by the supply and cost of the raw materials involved in its manufacture will necessarily affect the business of a wide variety of industries which are dependent on it.

Jan 1, 1926

By Joseph E. Pogue

THERE are two methods employed in the development of oil pools. The older and dominant method is one in which the primary object is the protection of the underground deposit from drainage through competing wells, and considerations of efficiency of extraction and cost of production are subordinated thereto. The newer and less prevalent method is one in which maximum efficiency and minimum cost are the first objectives and developments to these ends may proceed undisturbed by the exigencies of competitive drainage. The second method has developed mainly in pools under single ownership and the term "unit operation" has come to be applied to this procedure. A single ownership, however, is not essential to the method, for unity of operation may be achieved by agreement under split ownership, or even by a concert of enlightened purpose. There are examples of unit operation where neither the ownership nor the management is a unit, but merely where unity of procedure has been attained, as is the case of the Yates pool. .Throughout this paper unit operation is used in its broad sense without implying sole ownership or single management, although unit operation is more conveniently attained where these conditions are present.

Jan 1, 1930

By Chester O. Ensign

Many publications to date have advocated under- seas mining operations, optimistically overlooking the paucity of information on mineral distribution and the ocean environments in which minerals occur. Such articles (smattered with opinion, as is this article) are herein tempered by my more conservative views on the economics of mining under the seas. For purposes of this paper, underseas mining refers only to the deeper surficial deposits of the continental shelf and the deep sea floor, i.e., the deposits of phosphorite and manganese nodules.

Jan 9, 1966

By Gerald Blackmore

"This paper suggests that with the settlement of long-term contracts of fifteen years' duration, with prospects of extension, the coal mining industry has, for the first time, a complete commercial justification for large-scale planning.The labour costs of coal production over past years are analyzed and, with the acceptance of the premise that the basic shift rates are certain to rise in the years to come, the paper suggests that forward planning should provide &r capital investment to make a traditionally labour-dense industry into a capital-dense industry.Automated methods of manpower deployment and timekeeping and the monitoring of all equipment back to a central control point are discussed as ail-important means of obtaining maximum utilization of high-cost capital investment.Principles of payment of the work-force, and the utilization of equipment 24 hours a day, seven days a week and the maximum number of days a year, are dealt with as means of achieving maximum capital utilization. Some of the new technical underground and coal preparation problems which will undoubtedly result from the concentration of workings and maximum machine utilization are discussed, and the author makes suggestions as to how these might be solved.In short, the author predicts that if the coal mining industry is prepared to recognize the problems and invest in modern equipment backed by highly trained staff. then the outcome will justify the high capital investment involved. He stresses the importance of human communications in achieving this end."

Jan 1, 1970

By Patrick Wong

The design of piling platforms is addressed in BRE (2004) for both fine grained and coarse grained subgrades. However, for coarse grained subgrades, piling platform designs can often be overly conservative due to either conservative assumptions on soil friction angle, or concerns over density variations of granular fill, particularly for made-ground. This paper provides guidelines on economic design of piling platforms on coarse grained subgrade by providing recommendations on ground characterization, assessment of soil properties and the use of non-linear stiffness soil behavior. An innovative performance-based design approach is also introduced, utilizing proof rolling with associated testing and interpretation using small strain theory to overcome concerns regarding potential ground variability of made-ground. A case study is presented to demonstrate the successful application of this performance-based approach to avoid having to construct a new piling platform over a 2 ha area. Small strain, non-linear stiffness theory was used to enable a practical proof rolling pressure to be adopted without having to reach the design or ultimate operating pressure. The author considers that the performance-based approach adopted on the case study may be similarly applied to a range of other projects to derive economic solutions.

Nov 1, 2022

By Hu Harries

WE RECENTLY completed a study for a client, who is an applicant to export gas from the Province of Alberta, on the effects of gas export on Alberta's economy. This study was part of the client's application ?before the Conservation Board, and, no doubt, some of you are familiar with it. Submissions by other applicants in earlier hearings before the Board and before the Royal Commission on Energy, as well as claims made by parties opposing export, have also brought forward a number of other opmwns regarding possible economic effects. Ali of these studies have been on a piecemeal basis. They have dealt with particular aspects of particular applications, and only indirectly and by inference with the overall question of gas ex-port. We have prepared this paper to review the overall picture and ex-amine, as far as time permits, all sides of the question. While the paper is entitled Economic Effects of Gas Export on Alberta, we felt that the area considered should in-elude northeastern British Columbia, not only because Westcoast, the first major gas export project, is essentially a northeastern B. C. project, but because this area has historically been, from the point of view of economic, if not of political, geography, part of Alberta. In this paper, when we talk of export, we mean export from the Province or, in this case, from Alberta plus northeastern B. C. Sales to other parts of Canada have exactly the same effect on the economy of this area as l1ave sales to the United States, provided, of course, they are made on equal terms.

Jan 1, 1958

By Joseph E. Pogue

THE period of new oil discoveries in Illinois began in February 1937, when The Pure Oil Co. found the Clay City field the forerunner of a number of limestone pools. The importance of the area was emphasized greatly in December of the same year with the discovery of excellent sand production by The Carter Oil Co. at Louden and in June, 1938, with the discovery by The Texas Co. of the Salem field producing from two sands and one lime- stone horizon. By September, 1939, new discoveries in Illinois were estimated to have added, under prevailing production practices, some 500,000,000 barrels to the crude oil reserves of the United States and to have produced to that date some 63,000,000 barrels with daily production passing the 300,000-barrel mark by Sept. 1.

Jan 1, 1939

By Leonard Bronitsky

The construction mineral aggregates industry--the largest industry on a tonnage basis--is threatened with large shortages in the near future. Ironically, these common minerals which include sand, gravel, and stone are among the most plentiful in the earth's crust. However, as these minerals are low in value and used in large volumes, they are extremely sensitive to transport cost, e.g., a haul of 20 miles doubled the delivered cost of mineral aggregates. Consequently, these minerals must be located close to points of demand to have economic usefulness. But the development of new deposits is virtually impossible near many urban areas for legal, sociological and economic reasons. The spector of unfinished urban transport systems, curtailed residential construction, and a general deterioration of the physical urban plant, looms as a direct consequent of future mineral aggregate shortages in the U. S. metropolitan areas. The shortages of mineral aggregates in the Greater New York Metropolitan Area (G.N.Y.M.A.) are prototypical of the shortages faced by the U. S. Metropolitan areas. This paper presents an economic analysis of the consequences of not considering the broad aspects of conservation economics as a major component of resource management. The needless annual cost for the G.N.Y.M.A. is shown to be $30 million.

Jan 1, 1974

By Roshan B. Bhappu

Stimulated by current $0.80 to $1.20 per pound price tag of copper, considerable interest and activity have been generated in the copper mining camps throughout the world, and especially in the Southwestern United States and Northern Mexico copper belt. Under these economically favorable conditions, many of the marginal oxide-copper deposits, as well as newly discovered prospects, are under scrutiny for possible exploitation. For both the known deposits and new prospects, the big question facing the mine operator is the selection of the best method for processing these economically attractive oxide-copper deposits. Several variations of the hydrometallurgical processes are currently available for treating oxide-copper ores which can be mined by the open-pit method. Basically, these processes involve preparing the ore for application of an acid solution, applying the solution to the ore, and recovery of the metal from the pregnant solution. Dump leaching, heap leaching, vat leaching, agitation leaching and, in more recent times, in situ leaching or solution mining in combination with well established cementation process or the newly developed solvent extraction-electrowinning system have all been employed or have been investigated for the recovery of copper from oxide ores. Of these processes, dump, heap and vat leaching have been successfully practiced for treating oxide-copper ores. Agitation leaching is a relatively newcomer and has been adopted from the experiences of uranium and gold processing. Finally, the inplace leaching technique is the latest process to be suggested for possible treatment of oxide-copper ores.

Jan 1, 1974

By V. F. Hollister

The Ivanhoe district, Elko Co., Nevada, is located in the northern part of the Carlin trend of epithermal gold-deposits, but it differs from most mines in the belt in that Ivanhoe epithermal gold ores are found in 14 m.y. old Tertiary volcanic rocks as well as in the better known Paleozoic sediments. Within the Ivanhoe district U.S. Steel (USX Corp.) discovered and partly developed an epithermal gold deposit largely hosted by Tertiary rocks that, with a 167-hole program, was found to contain an open ended probable reserve of 4.0 million tons of heap leachable open pit oxide ore averaging .042 opt Au. An additional 4.0 m.t. of open pit sulfide ore averaging .048 opt Au were also developed. The U.S. Steel orebody was a blind discovery in that it just barely outcropped, and it was found by drilling through a premineral but barren cover of altered Tertiary volcanic rocks.

Jan 1, 1988

By Richard M. Chamberlin

Perlite is an altered rhyolitic glass with 2 to 5 wt % water that expands or "pops" when heated quickly to plasticity while evolving steam to form lightweight, glass foam. Commercial perlite deposits in New Mexico are well-developed zones of chemical weathering (hydration) superimposed on highly permeable and thick glassy zones at the chilled upper surface and toes of high-silica-rhyolite lava flows and lava domes. The maximum tonnage of glass in these volcanoes was predetermined by their unique eruptive histories. New Mexico perlite production (80% of US production of 571,00 st) is mostly from the 3.9 Ma high-silica-rhyolite lava flows at the No Agua Peaks volcanic center. The primary vent at No Agua is defined by a 900 ft-high rubidium-rich composite lava dome, known as West Peak, that contains minor perlite reserves. Slightly less rubidium-rich lava squeezed out from under the west flank of the dome to form relatively thin (250 ft) but highly vesicular lobate flows that now consist of about 50 % recoverable perlite. Finally, rubidium-poor lavas were extruded from a radial dike on the northeast flank of the dome. These thicker (400 ft) flow lobes contain about 20 % recoverable perlite. The largest mass of lava does not always contain the most perlite. The thinner (west) flow at No Agua yields the largest perlite reserves rather than the large composite lava dome or thicker (east) flow.

Jan 1, 1994

By Brian W. Mackenzie

The paper addresses five questions concerning the economic of gold exploration in the western Canadian shield. Can historical footprints be used to project future gold prices for exploration planning? Experience suggests that gold price forecast are too clo ely tied to current market events to provide meaningful guidelines. What range of breakeven gold price will typically be required to ju tify gold exploration in Canada? Minimum price requirements. initially asses ed at $540 to $1080 per ounce, probably lie in the range of $480 to $760 per ounce (expressed in 1985 Canadian dollar). Within Canada, what role do regional conditions and taxation policies play in determining the viability of prospective gold exploration targets? Striking interprovincial differences are found to exist, given the same geological circum tance -Nova Scotia, ew Brunswick, and Quebec rank towards the top in term of motivating exploration, Briti h Columbia provides the least investment incentive, while Saskatchewan and Manitoba place around the middle of the Canadian league. How can minimum acceptable tonnage-grade conditions for gold targets in the western shield be established and, then, constructively applied to provide exploration planning guidelines? Minimum target conditions, realis tically defined in terms of a broad band of doubt, can be used judiciously to help balance the direct costs of uneconomic exploration with the opportunity costs associated with rejecting economic deposits. How does the average cost per ounce of gold discovered in the western shield compare with the overall Canadian experience? Average discovery costs for the we tern shield, apprai ed at $100 per ounce, are shown to compare favourably with the Canada-wide record.

Jan 1, 1986

By Carlos Gualdron, Elizabeth Gomez, Rafael Bolivar

The productivity index of the Coopracarcegua Ltda., a mid-size coal mining company of Norte de Santander, Colombia, was related absenteeism using accident, productivity and profit data four years. The analysis was based on type, severity and frequency of accidents, number of absentee days; price per metric ton, and other relevant parameters. The enterprise is formed by 5 different mines of thermic coal, each one with different exploitation technologies and different productivity. Each mine was analysed separately and the loss of profit due to absenteeism was calculate for each one. The study showed that the foregone earnings due to absenteeism in terms of the whole productivity of the enterprise was about of 6.6% of the total profit average the 4 years, with calculated values of 14.7%, 3.5%, 8.4% and 4% per year in the evaluated period. The study identified that the most important cause of absenteeism was "General Disease". The foregone earnings in 2009, the highest loss for the analysed period, was about US$ 0.937 million and during the whole evaluated period was US$ 2.46 million.

Jan 1, 2014

Mining executives often have a difficult task determining what the strategic objective of the business should be as this can be impacted by the prevailing market conditions. In addition, they have no mechanism to quantitatively 'test' the impact of this strategic decision on the business and understand the underlying dynamics. During the commodities bull run of 2003 to 2008 the strategic objective may have been to grow the long term value of the business (NPV) through increased tonnage, acquisition and finding new reserves, which all came with an increasing fixed cost base. Now with the financial crisis upon us and the collapse of commodity prices and demand, executives have adjusted their strategies as 'cash is king' and short-term cash flow, in some instances at the expense of long terms value, is the order of the day. For many mining companies, mine closures, reductions in production and cost cutting exercisers are now the focus. In many instances, management do not have an ability to rapidly test different strategic alternatives to 'test' the impact on value, unit costs, reserves and profitability at the operational level and optimize the underlying trade-off variables. Economic modelling of the complete business value chain is a means of linking the operational 'reality' and strategic choices, so that the full impact can be assessed. This paper describes some of the challenges facing mining executives and how economic modelling can be applied to make decision making more rigorous.

Jan 1, 2010

By Alexander Sutulov

The Western industrial nations are facing today what can be defined as a gradual takeover of their investments in the developing world and more importantly, they are beginning to feel approaching problems with their adequate raw materials supply. This puts them into a strategically hazardous situation, which years ago would probably have been solved by conventional wars. However, the present political and military situation, and particularly the development of nuclear arms, makes such confrontations almost impossible or at least extremely dangerous. Thus other peaceful and more pragmatic solutions should be sought. This is particularly important because the present supply-demand situation in raw materials has a very strong political and ideological background. In the ultimate analysis there are two economic systems, that of free enterprise and the other of the collective or socialistic ownership. Both are competing for world domination, and it seems that both are eager to prove their advantages to the yet uncommitted Third World, which commands the great majority of the human race and a large part of its natural resources.

Jan 7, 1974

By D. Auerswald, M. Kotze, V. Yahorava, T. Udayar

Uranium can be recovered from lower grade uranium ores (<800 mg/kg U3O8), leach residues, and waste dumps cost-effectively via resin-in-pulp (RIP). Using this technology, no solid/liquid separation or washing of the leach residues are required. Furthermore, the uranium recovery can be higher than with conventional methods. RIP technologies have, however, been perceived negatively due to concerns around potential resin fouling and losses. This paper highlights the advancements made in RIP and discusses a number of potential applications where the technology could deliver economic and consequential environmental benefits by reducing the uranium levels in the waste.

Jan 1, 2014

Carbon sequestration in planted forests provides an immediately available, low cost option to address the greenhouse impacts of coal mining and coal utilisation in a carbon constrained world. In addition, planted forests also offer the opportunity to address other environmental issues, particularly salinity and loss of biodiversity. Given salinity is characteristically associated with agriculture in the 500 to 700 mm rainfall belt, then where such forests can also produce commercial timber products, they offer the additional opportunity to establish new, diversified rural employment in both timber growing and processing. In the majority of Australian catchments affected by salinity, where rainfall is generally less than the 700 mm limit to conventional forestry, and where groundwater reserves are often saline, the objective of achieving economically viable forestry production presents a significant challenge. In 1996, Saltgrow commenced a collaborative breeding program to combine the salt and stress tolerance of E camaldulensis, with the growth rate, stem form and wood properties of the commercial species, E grandis and E globules. This program aimed to produce trees with the potential for commercial rehabilitation of saline landscapes. Results covering a range of site conditions from SaltgrowÆs network of over 100 trials around Australia are presented. The opportunity for commercial plantations integrated with agriculture in low to medium rainfall areas to address salinity and sustainability will be discussed. In addition, the significant potential for partnerships between land-rich, cash-poor farmers, catchment management authorities seeking to invest in public good projects that enhance environmental sustainability, and major carbon producing industries with either mandated or voluntary requirements to curtail net emissions will also be discussed.

Jan 1, 2005

By A. S. Bayne

WITH the great increase in the use of power-driven machinery in industry, and consequent large-scale operations, the hazards to which , workmen are exposed have become much more numerous than at the beginning of the century. This is especially noticeable in mining. In the past thirty years or so, improvements in methods of excavation and metallurgy have made possible the exploitation of deposits which would have failed to make ore in previous years. This improvement, together with the in-creased use of machinery, has facilitated the mining of tremendously greater tonnages with a marked decrease in unit cost of production. This &apos;speed up&apos; in mining creates numerous problems demanding close attention of operators and necessitates careful prep;tratory planning, as well as diligent supervision of actual operations. Underground openings increase in size so fast, and all phases of mining, mucking, and transportation proceed at such a rate, that a short period of reduced vigilance on the part of operators . results in disaster, both from the standpoint of safety and economies. Happily, the challenge of increased hazards has been successfully met by a general application of the slogan &apos;Safety First&apos;. Today, we have large manufacturing concerns devoted entirely to the development and production of safety equipment for the protection of workmen in various branches of industry. Machinery manufacturers, in co-operation with their mining customers, have included the best possible in foolproof devices in the manufacture of hoists, compressors, boilers, electric motors, and equipment of all kinds. Mining companies and private individuals spend thousands of dollars and devote a great deal of time to research with the single object of preventing accidents and combating miners? diseases. Governments throughout the world have written regulations into their statures for the protection of miners and operators. Staffs are appointed to enforce these laws and investigate accidents to ascertain means of preventing them for the future benefit of the industry.

Jan 1, 1938