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By Clement K. Chase, F. Milton Lewis, Roshan B. Bhappu

In situ extraction for copper, gold and uranium, generally involves several common alternative processes and techniques. These include dump leaching, heap leaching, leaching of fractured ore in-place or bore hole mining and unit operations such as cementation, solvent extraction, ion-exchange or carbon-in-pulp. Since the metallurgical effectiveness and economics of such processes and unit operations are well established, it would be possible to select the optimum alternative for extracting either copper, gold or uranium from their ores using in situ extraction technology. In this paper, efforts have been made to provide metallurgical evaluation as well as capital and operating costs for the various processes and unit operations. Attempts have also been made to utilize the above costs in preparing feasibility studies for in situ extraction of these metals.

Jan 1, 1976

By Raja P. Upadhyay

An evaluation of the economics of mining the deep, thick oil shale deposits of the central portion of the Piceance Creek basin, Colorado, U.S.A. is presented in this paper. For the analysis, a modified large scale underground mining system developed by Cameron Engineers, Inc. and the Gas Combustion retorting process developed by the U.S. Bureau of Mines were used to determine capital investment and annual operating costs. A modified risk analysis computer program was then used to calculate DCFROI’s for various grades of oil shale and selling prices of partially refined shale oil. Sensitivity analyses were performed to quantify the affect of bonus bid payments, operating costs, capital investment, and all costs on DCFROI. In addition, a probabilistic evaluation was made to determine the risk involved in obtaining desired rates of return. Results of the economic evaluation indicate that for current selling prices of crude oil a high risk is involved in obtaining a DCFROI of 15%, unless only higher grades of oil shale are mined. However, mining only the higher grade oil shales, 125 l/mt (30 gpt) and above, would effectively reduce the potentially mineable resources by 90%. Risk can also be reduced through higher selling prices of shale oil. Sensitivity analyses indicate that the capital investment has a three times greater effect on required selling price than total operating costs.

Jan 1, 1977

By E. B. Spice

Although much may be learned about the economics of cold weather operations by studying successful mining ventures in southern and central Canada, it is the purpose of this article to extend the study by considering only permafrost areas. Geographically this means most of the country north of the 60th parallel. In this area, at the present time, only five Canadian companies are carrying on routine and successful mining operations on a year-round basis. However, there have been some score of unsuccessful ventures, and a number of properties in the development stage show promise of being producers. Problems of cold weather are worthy of study. It may be pointed out that successful mines in this area face problems of isolation and costly transportation as well as cold weather. To reach valid conclusions, consider the development of a mythical mineral deposit located on the 65th parallel in the heart of the barren lands; problems of isolation and transportation will be ignored.

Jul 1, 1956

By L. E. Garner

Aggregate resources should be considered primary factors in urban development. Resource planning is essential because land values, previous construction, or zoning restrictions often preempt exploitation of aggregate deposits within an urban area. Sequential land use practices allow development of area prior to urban development population and aggregate consumption trends in Austin, TX, indicate that substantial quantities of reserves will be lost to future development. Aggregate materials are present in nearby areas. However, a comparison of transportation and reclamation costs indicates that reclaiming land after mineral extraction can be significantly cheaper than transporting materials longer distances.

Jan 1, 1982

By Roscoe Bell

An economic appraisal of the western phosphate industrial potentials made between 1945 and 1948 revealed possibilities for a considerable expansion in the production of high analysis phosphate fertilizer. The most significant facts are: (1) a rapidly increasing and a much larger potential market which might be reached from the western deposits, (2) the existence of large undeveloped deposits of phosphate rock, (3) potential energy from sulphuric acid, coal, or hydroelectric power in the general vicinity of the deposits. The challenge to the mining and metallurgical engineering profession is in the economical development of phosphate mines and in improving processes for utilization of the western ores and the recovery of byproducts to make the expanded western industry satisfactorily compete with the industry in the East and South in meeting the fertilizer needs of the Midwest and Far West.

Jan 4, 1950

By N. E. Norman, R. Stier

The mining industry is continually seeking out new and better underground mining techniques. One of the most recent-also, perhaps, the most significant-of the new concepts in underground mining is the use of mechanical rock-boring machines. And one of the problems that concerns us all in this matter is the cost of mechanical rock tunneling. To help answer the oft-quoted question "What will it cost me?" the following pages deal with the operating costs of so-called "medium to medium hard rock" boring machines-i.e., those designed to meet the drilling requirements in 8000 psi to 25,000 psi rock. A few machines are capable of drilling hard rock above 25,000 psi, but the economics of mechanical tunneling in rock that hard is limited at the present time. [ ] For mechanical rock tunneling, there are five main cost factors influencing the expense: Capital Investment, Cutters, Labor, Power Requirements, and Maintenance. These factors give us a good basic picture of the cost of excavation, although muck handling, erecting supports, and other costs directly related to conventional tunneling and mechanical boring enter into the final picture.

Jan 6, 1967

By Chris Weyand

Throughout the past 40 years we have been drawing inevitably closer to the conclusion that coal will be our chief source of energy. Our reserves of natural gas and petroleum, on which we depend, are dwindling. Knowing that we will soon reach our physically extractable limit of these energy sources. The US government has created many incentives to encourage energy companies to transfer technology and resources from natural gas and petroleum to coal. Such encouragement is stimulated through taxation methods. Coal mining engineers deal mainly with production, which involves planning and design throughout the acquisition, exploration, development, production, and reclamation of a mine. Though taxation is not one of the areas analyzed by the engineer, it should be considered and understood as it is involved in the mine life cycle. This paper will discuss coal taxation in the five stages of mining and will explore certain tax saving decisions.

Jan 1, 1983

By G. Richard Dreese, Harold L. Bryant

The coal mining industry has had a long history of successfully externalizing part of its costs. Thus the private or internal costs of coal mining have been minimized and the social or external costs have been ignored. The externalized costs have largely taken the form of water pollution from acid mine drainage and sedimentation of stream channels from eroding spoil banks and gob piles. The environmental problems created by strip mining are very conspicuous, so the public demand for legisla-

Jan 1, 1975

By J. W. Miller

One of the major problems confronting coal producers in this highly competitive era is whether or not the potential profit to be made from the products of coal flotation would warrant the capital investment required for the necessary equipment. The author supplies two theoretical cases to illustrate methods for computing such costs.

Jan 3, 1961

By Franklin J. Kay

Introduction The methods used in surface, mining vary throughout the world, depending on many variables such as: the types of over- burden materials, the depth of the overburden, the thickness of the seam, and other operational choices, both financial and functional. However, the stripping machines are typically draglines, stripping shovels, excavators, scrapers, loaders, and bulldozers. In all cases the economic feasibility of mining thin seams depends on the market needs, the market location, the equipment used, the mine management, the quality of the coal, and the labor market. Slight negative combinations of these parameters have closed many mines while positive combinations allow others to exist. The limited mobility or slow movement of large stripping shovels, draglines, and bucket wheel excavators make them more economically fitted to areas where large quantities of overburden are to be moved. This is necessary to keep the transfer and setup time between pits a negligibly small percent of the total operational time. Equipment such as the scrapers, loaders, backhoes, trucks, and bulldozers that are either very mobile or can be trailered is more versatile and can be used in the smaller area mines.* Mobile equipment is also more practical in areas with shallow overburden because of the constant movement required while removing overburden. In thin coal seams the equipment is usually paired such that the operational equipment can be listed as: (1) dragline-loader, (2) shovel-truck- loader, (3) scraper-loader. (4) loader-truck-loader, or (5) loader-loader. In these operations the overburden is removed with the first machine(s) of the pairing and the loader or loaders are used for coal production. Recent articles in Coal Age (Chironis, 1978) and Mining Engineering (Wiebmer, 1978) have discussed varying philosophies in mining similar seams of coal. One operator uses draglines for competitive mining while the other uses scrapers for the same purpose. Both cite strong cases sup- porting their choice of equipment as good sound economic decisions and their success supports their choices. The drag-line operation is adding new larger draglines to decrease the cost of mining, rather than to increase coal production. The scraper operation has also gone to more and larger scrapers for basically the same reasons. These operations and all

Jan 1, 1981

By M. Allingham

This paper examines the contribution which econometric methods may be expected to make to the specification of commodity agreements, and how in turn computer methods may help in this. Starting from the specification of a model, the paper examines four activities: estimation of the unknown parameters; analysis of the properties of the model; simulation experiments with the model; and control of the model. In each of these activities the basic methodology is outlined, and the contribution of computer methods assessed.

Jan 1, 1977

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 Paul M. Tyler

OF THE 92 elements generally accepted by chemists as constituting the primary building blocks of matter, all but the very rarest have been investigated with a view to employing them in steel manufacture. The surprising thing is that so few have been found commercially acceptable. Despite the relatively small number of elements involved, the use of alloys in steel making is one of the most complicated and probably one of the least well understood of modern industrial enterprises. The action of individual elements in steel making has been described often and a profuse and somewhat acrimonious literature covers pretty much the whole field of ferroalloy ore supplies. In the middle ground between the miner and the -steel maker developments are less carefully watched by most observers and except for an occasional description of the technique of some conversion process or the tariff hearings in Congress, little is said about them. The present paper has been submitted in the hope that it will stimulate broader constructive economic thinking. It undertakes to describe in' relatively nontechnical terms this great and growing though highly complex industry and to study its relations to national progress.

Jan 1, 1932

By Paul Tyler

THE extensive employment of nonmetallic minerals antedates the use of metals, but only within the last two decades has the production of nonmetals begun actually to keep pace with the complicated activities which characterize the so-called Machine Age. The economic changes ushered in by the Industrial Revolution were reflected first in an increased demand for metals and for fuels. In the modern sense, therefore, the nonmetallic mineral industries are new and afford new opportunities for engineer and economist alike. A certain amount of caution is indicated, therefore, before attempting to apply ready-made formulas to the problems of these industries. Economics is not an exact science. In the field of production technology where the number of variables is fairly well known, the principles of economics are readily applicable, but as the student proceeds through the province of marketing into the unexplored regions of psychology and sociology he must distinguish carefully between scientific reasoning and purely metaphysical speculation, even when the latter masquerades as economics. The present paper attempts to prove no preconceived theorems and is designed primarily to stimulate careful thinking on sundry neglected phases of these industries. An attempt is made to differentiate the general problems into single aspects which afford promise of being comprehended separately; also, some fundamental statistical data are presented, but merely to indicate a method of scientific approach applicable to more intensive studies.

Jan 1, 1933

By Randy M. Cole, Peter J. Phillips

A methodology is presented which quantifies six coal utilization cost components, each proportional to a coal's mineral content. These are: Ash disposal costs, coal transportation costs, plant maintenance costs, reduction in plant peaking capacity, reduction in plant rated capacity, and reduction in plant availability. Numerical examples illustrate that coal containing between. 12.5% and 25.0% ash-plus-sulfur can cause incremental utilization costs ranging from less than $1.00 to more than $8.00 per ton of coal, when combusted in a pulverized coal fired power plant. Estimated costs are then compared to historical data and the conclusion drawn that steam coal beneficiation may have broader economic justification than sometimes realized. It is noted that TVA, which first proposed the methodology and parameters used here, is continuing research on this aspect of coal utilization.

Jan 1, 1981

By Thomas T. Read

THE benefits derived from stabilization of industry that might possibly be attained through some scheme of centralized economic planning have been much discussed of recent months, and opinions on the subject range from those who believe that some agency like the War Industries Board would be practicable to create and wholly beneficial in effects, to those who are equally convinced that none of the suggestions so far advanced are at all practicable, or likely to be productive of more of good than of evil. The discussion has been on the general topic, but-many of those who have written or spoken on it have introduced economic problems of the pinera1 industry; for example, Newton D. Baker, who referred to the coal industry in his address on economic planning at the Williamstown Institute of Politics on July 31, and then went on to say, "Industrial progress is made by the development of new things, but new things upset the equilibrium of any plan. Who could have planned the industrial effects of the development of the railroads, or the economic changes which you have seen attend the development of the internal combustion engine. Obviously, unless we are prepared to put world economics in a strait-jacket and, like the encyclopedists, write its full history on the theory that further progress is impossible, no such plan could be made for nations which are forging ahead as is entirely rational for nations which are still catching up."

Jan 1, 1931

By E. H. Crabtree

IN an ideal mill, with perfect milling operations, the mineral extraction would be 100 per cent, the, concentrate would be 100 per cent mineral, the tailing would assay zer.0 mineral and the milling cost would be zero dollars. Such an operation can, of course, never be attained. We can only strive to approach it as nearly as possible and in doing so most recognize .the fact that the three primary factors in milling: assay of concentrate, assay of tailing, and cost of operation bear a definite economic relationship to each other. This relation will change from time to time and will be different for different mills, depending on milling equipment, character and quality of feed, market conditions, and other factors. It is granted that for a given operation there is an economic point, but the location of this point is difficult. It is for the purpose of making some of these economic points a little more tangible that this paper has been prepared.

Jan 1, 1930

By W. C. Peters

From the time of its beginning in the mid-19th century, the American barite industry has had its major development in the eastern and central states. Geologic and economic factors serve to maintain Arkansas, Missouri, and the Southern Appalachian states in the lead position. In earlier days, the major markets for barite were in paint, chemical, and glass manufacturing, and the favored deposits were those which were close to eastern industrial areas; furthermore, the eastern deposits were cheaply mined and required little or no beneficiation. In the last few decades, the use of barite as a weighting medium for muds in rotary oil well drilling has caused a great expansion in the industry, but the marketing picture is still centered outside of the western states-now on the Gulf Coast area where high pressures are common in oil wells. Low cost imported barite, readily available on the East Coast and Gulf Coast, has always been a major marketing factor in the industry. The major barite producing state is Arkansas, with the industry centering about the Magnet Cove area. Missouri ranks second, with production mainly from residual deposits. Several Southestern states are actively producing from residual deposits.

Jan 9, 1958

By Harry M. Callaway

IN times of a falling metal market the mine operator attempts to remain in competition by lowering his overall cost and raising the grade of ore he processes. But these adjustments can be made only within narrow limits imposed by inherent characteristics of the operation. Is there some additional method whereby the break-even point can be lowered? One approach, perhaps the only one, to lower a break-even point is careful cost analysis considering both fixed and variable costs in relation to mining rate. The following is an analysis of cost distribution and its significance in determining the most economic combination of the factors of ore grade and tonnage output applicable to a given mining operation.

Jan 4, 1958

By Herbert D. Drechsler

The objective of this paper is to identify the components of income above that necessary to keep a mine in production and relate those components to the profits of a mining firm. This is a discussion of "Economic Rent". Economic rent is the payment to the factors of production -- capital, labour, entreprenuer and the owner of the mineral deposit -- above the minimum necessary to keep all of these factors cooperating in the production of minerals from a particular deposit. THE SOURCE OF ECONOMIC RENT IN THE MINING INDUSTRY In the mining business each mine has a unique cost of production unrelated to any other mine. The cost of production is developed from many factors such as the technical characteristics of the deposit: depth of deposit, depth of overburden, areal extent, and type of deposit. Furthermore, there are locational factors which also alter cost of production. For example, identical mineral deposits located in Zambia or in the southwest U.S.A. would have different capital and operating costs. These differences occur because of different qualities of labour, ease of acquisition of operating supplies or investment capital and other similar factors. To explain the source of rent, we shall use ideas developed by Alfred Marshall and Kenneth Boulding. Suppose a meteorite with special qualities exploded over earth and sent showers of small meteorites to the ground in various places. At some point in time, people learned of the special qualities of these meteorites and a demand arose and one mine was started. Suppose further that the cost of production to produce these meteorites was different for each deposit. Probably the lowest unit cost mine would commence production because if a higher unit cost mine started-up, eventually someone would discover a deposit that had a lower unit cost of production. The lower unit cost mine would take over the market and the high unit cost mine would cease production. The cost curve for the first mine would look like the following Figure 1. [ ] The output for the first mine is on the horizontal axis with the cost per ton on the vertical axis. The curve labelled AC I is the average total cost of production over the range of possible production that could occur at the property. The total costs are composed of variable costs, which are dependent on output and fixed costs, which are dependent on time. For example, the cost of operating supplies would be a variable cost and normal profit would be a fixed cost.1 The opportunity cost of the investment would also be part of the fixed costs. In our example, all factors of production, are receiving the minimum necessary payment that will keep the mine operating. The average total cost curve is U-shaped because at zero output, the meteorite mine has no variable costs, only fixed costs which, on a unit basis, obviously are very high. To produce a small output of meteorites, the mining firm adds

Jan 1, 1985