Mineral Economics

Mineral Economics

: [ 15/03/2011 ]
Re: Final Project- Mineral Economics
After in depth calculations and analysis the following conclusions and recommendations have been deciphered. Based on the estimated tonnages of each metal that is predicted to be produced in the next 8 years, it is seen that there are no positive results for any of the zones. Each of the four zones and each of their mining method (options) are all negative results and are losses of money for the company. For Zone 1 the highest revenue is Option A, with over 6.5 million dollars worth of revenue for all the metals combined. But this is a problem because the cost it takes to start up this company and to remove the ore from the ground for option A costs the company over 189 million dollars. Option A has over 183 million dollar loss for the company for zone 1. The best decision would be option C, which has only a little less than 30 million dollar loss for the company as of 2020. Neither of these zones will produce a positive result as of now, but the least destructive option to the funding of the company should be resolved and used. These high costs are due to start up costs and the amount of dollars it costs to remove the ore from the ground. For example, option A costs over 3 thousand dollars to mine one tonne.
For Zone 2, the results are the same. Option A is just over a 120 million dollar loss for the company, but has the highest revenue with over 6.5 million dollars. But because of how high production costs are this option is by far the worst choice for zone 2. Once again option C is the best choice for least amount of loss, with just over 20 million dollars of loss for the company, even though the options revenue is just over 600 thousand dollars.
Zone 3


A.B. Fourie, M. Tibbett (eds). (2009). Mine Closure 2009. Australian Centre for Geomechanics.

An International Overview for Legal Frameworks for Mine Closure. (2009) Retrieved from...

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