Mine size and the structure of costs

The number of operating mines has fallen sharply for most mineral products, and the average size of mine risen, with the changes gathering momentum during the 1990s. The paper looks at trends in copper, zinc and gold, and then explores the relationship between size and unit costs in copper mining, separately for underground and open-pit mines, in order to ascertain the existence and importance of economies of scale. Changes in mine size have been accompanied by major technological and geographical shifts. There is only a weak relationship between the scale of mines and overall unit costs per tonne of copper produced. The paper discusses the data and explores some of the reasons.     

Developments and prospects of world lead and zinc mining

World developments in lead and zinc are examined for 1970-90 and projections presented for 1995. Although lead consumption has Increased during the period under review, lead mine production has been on a decline, the differences being made up from secondary lead sources. Lead mine production is projected to be steady to 1995, with increased consumption continuing to be met from secondary sources. Zinc mine production increased at a trend rate of about 1% per year between 1970 and 1990, but for 1991-95, production is expected to grow at a lower rate. For 1990-95 zinc consumption is expected to grow at a rate of 2.3%. This modest mine production increase to 1995 is unlikely to be adequate to meet growth in MEC zinc consumption.     

Copper in India: Present and future outlook

The availability of mineral resources plays an important role in India's national economy. Copper, one of the important non-ferrous metals, has various industrial uses and demand for it is increasing in India where the inventory and production of copper, though not comparable with developed countries, shows an impressive growth rate, particularly during the last decade. With an increasing rate of industrial production envisaged in future plans copper consumption is expected to rise. Logistic curves have been used to study the potential long-term production capability under the dynamic concept of reserves and resources, with curves drawn for various estimates of total available resources. The production figures shown are not final and are subject to change due to a number of factors. This approach merely provides a method for projecting trends in future production.     

Considering climate change and regional differences: An efficiency assessment of coal mine use and land restoration

China is the country with the largest coal mining production and consumption in the world, but due to a large amount of coal burning, air pollution and climate change are exasperating related problems. The previous literature mainly has discussed coal mine production and environmental pollution, but failed to take into account external factors such as climate change and seldom discussed the relationship between coal mine land use and land restoration. Therefore, this study uses the meta-Epsilon-Based Measure two-stage Data Envelopment Analysis under the exogenous model and incorporates coal mine land use and land restoration use into the model to explore the relationship between the two under climate change. The research results are as follows. (1) If the external climate factors are not considered, then the phenomenon of overestimation or underestimation of the technology gap arises. (2) The efficiency value of the coal mining stage in most provinces is generally higher than the land restoration efficiency value.     

The South African mineral and petroleum resources royalty act—Background and fundamental principles

After a prolonged drafting and consultation process, South Africa has introduced a new royalty charge to holders of mineral development rights. Deciding on an acceptable royalty is a complex process, especially when it targets deceptive economic rents. This is achieved with a variable royalty rate that slides in tandem with mine profitability. The base is sales revenue and to compensate for the need to charge for the mineral in its unprocessed form, refined production is charged at a lower rate. The aim of this paper is to discuss the Royalty Act in the context of its background, the underlying theory and fundamental principles. This paper argues that the fundamental principles on which the Act is based are sound, but raises a concern on potentially high compliance and reporting costs.     

Predicting impacts of major projects on housing prices in resource based towns with a case study application to Gladstone,Australia

The resources sector in Australia makes a major contribution to the national economy, and underpins employment and population in the mining and mineral processing towns. For those towns, rapid growth in employment can generate particular pressures in local housing markets because of the relatively large size of the industry and the small housing stocks involved. Through a case study of Gladstone, the study provides a dynamic five-step population and housing model, to estimate short to medium term mining impacts of major resource developments. The model includes both the direct and indirect labour force generated by new resource sector developments and their flow-on effects on population increases. Sensitivity testing has allowed for different levels of resource development, employment multipliers and labour inflows. Three different approaches have then been applied to predict the housing price impacts of the expected population growth.     

Tax neutrality and the Saskatchewan Uranium Royalty

In their analysis of the Saskatchewan Uranium Royalty (SUR) scheme Anderson and Barnett (1983) conclude that the scheme is effective in that, together with the other levies on the uranium industry, it succeeds in appropriating 75–80% of available economic rent under reasonable assumptions about uranium price and production costs. While collecting a substantial proportion of economic rent was a major provincial government objective in designing the tax structure, provincial tax planners may also have been concerned to ensure that marginal production decisions be affected as little as possible by the tax. Because their model of the Key Lake mine considers only the extraction plan adopted by the firm, Anderson and Barnett are unable to conclude whether a different plan would have been adopted in the absence of the tax. In other words, the nature of their model confines their investigation to the question of effectiveness, as defined above. The purpose of the present article is to examine the question of whether the SUR is likely to be neutral with respect to the extraction plan and to assess the effects of any tax-induced distortion.     

ECONOMIES ASSOCIATED WITH SIZE OF WATER UTILITIES AND COMMUNITIES SERVED IN NEW HAMPSHIRE AND NEW ENGLAND1

ABSTRACT. This study investigates economies associated with size of New England water utilities. Regression analysis techniques were applied to annual water cost and production data reported in the American Directory of Water Utilities (1968-1969). Modest economies of size in the production of water were found. Because in large communities more water is used per person, total cost increases at a slightly faster rate than population increases, but per unit costs of producing water decline. Substantial economies occurred when the number of customers was held constant and volume of water per customer increased. This study indicates possible economies when two or more of the many very small utilities combine activities to form a larger unit and by encouraging present customers to use more water.     

Optimal hardwood tree planting and forest reclamation policy on reclaimed surface mine lands in the Appalachian coal region

We study the optimal hardwood tree planting decision on reclaimed surface coal mines in the Appalachian region using a mine operator-focused, expected cost model that recognizes costs of preparing the site for tree planting, unit costs of planting seedlings, and opportunity costs of reforestation treatments and the performance bond. We also consider the possibility of failed initial attempts by incorporating the probability of reforestation success, based on empirical seedling ,survival rates and regulated tree survival standards, as well as fixed and unit costs of returning for additional planting. Optimal planting levels from 319 to 780 trees per acre and expected costs from $1049 to $2338 were found using simulations over a range of unit planting costs, fixed costs of replanting, tree survival standards, and interest rates. Further simulations compared optimal planting across un-weathered gray sandstone and weathered brown sandstone substrate materials, finding gray sandstone to be associated with lower expected costs. We conclude that optimal planting density and expected reforestation cost are sensitive to economic parameters, regulations, and planting substrate materials; and those policies influencing these factors may have substantial impact on reforestation outcomes and the choice of post-mining land use by mine operators. Our study provides a framework for understanding forest reclamation decisions that incorporates incentives faced by the mine operators who develop and implement the plans for mine reclamation, including forestry.     

Decision making with option pricing and dynamic programming: development and application

In this study, an option pricing model and a dynamic programming model are developed. These models contribute to the improvement of the decision making process in two respects. First, these models allow for the own growth rate of mining costs to be incorporated into the analysis. Second, these models are developed to estimate the satisfactory gross revenue for investing, so that these models are helpful in analyzing multi-metal mines.The two models are applied to estimate the satisfactory revenue for investing in the Carlin east gold mine, Nevada, USA. The satisfactory revenue estimated by the option pricing model is found to be $42.2M, while that estimated by the dynamic programming model is found to be $44.4M. Since the revenue calculated on the basis of the current conditions is $36M, then the decision by option pricing and dynamic programming is to wait and not to invest now. Despite the difference between the two models in estimating and applying the discount rate, the two models generate the same decision.     

An uncertainty based multi-criteria ranking system for open pit mining cut-off grade strategy selection

Cut-off grade strategy (COGS) is a concept that directly influences the financial, technical, economical, and environmental issues in relation to the exploitation of a mineral resource. Despite the simple definition of cut-off grade, the COGS problem is one of the complex and complicated problems in the mine planning process. From the optimization point of view, the COGS with an objective of maximizing the present value of future cash flows is a non-linear and a non-convex problem that even in its deterministic form can be solved using approximate optimization methods. This optimization problem will also be more complex and complicated under uncertainty conditions. This paper proposes an uncertainty based multi-criteria ranking system to investigate the problem of COGS selection considering metal price and geological uncertainties. The proposed system aims at selection of the best COGS among technically feasible alternative COGSs under uncertainty circumstances. Our developed system is based on integrating metal price and geological uncertainties as well as operating flexibility to close the mine early. We incorporate this operating flexibility into the proposed system using a Monte Carlo based real options (RO) valuation model. For this purpose, in addition to the expected value, other risk criteria are considered to rank the alternatives. These risk criteria include abilities of strategies in producing extra profits, minimizing losses, and achieving the predefined goals of the production. In this study, the technically possible COGSs are generated using the Lane comprehensive algorithm. To demonstrate the effectiveness of the proposed system, we utilize data of an Iranian gold mine. Results show that the proposed system outperforms conventional methods in the sense that it shows significantly lower average mis-ranking than the other methods and also selects a strategy with a higher value. The sensitivity analysis of the proposed system relative to the gold price shows that the system is highly dependent on the parameters of the stochastic process used to model the evolution of the metal price. Therefore, special consideration should be given in estimating stochastic process parameters.     

On causes of illegal waste dumping in Slovakia

This paper examines the determinants of illegal waste dumping at the county level in Slovakia (in 77 of 79 counties), using a truncated regression model. It analyzes a unique data-set composed of illegal dumping data provided by the TrashOut platform and sociodemographic data from the national statistical authority.

This study shows that a higher level of expected overall waste production results in a higher rate of illegally dumped waste and a higher number of illegal dumping sites. More precisely, income has a positive impact on the rate of illegal waste dumping, poverty influences the rate of illegal dumping negatively and a higher level of education does not result in more responsible waste management. On the contrary, higher education has a positive influence on the rate of dumping. A negative relationship between costs of illegal waste disposal and dumping rate, as well as a positive relationship between costs of legal waste disposal and dumping rate has been revealed.     

Assessing the impact of driverless haul trucks in Australian surface mining

Australia has been a leading mining nation and its mines continue to attract substantial investment due to its strong mineral endowment, mining tradition and high skills base. In recent years Australian mining companies have been facing higher labour costs, which need to be offset by other savings. Automating mine-site machinery offers one potential source of such savings.Underground mines pioneered automated technology largely for safety and mine accessibility reasons and to reduce operating costs. Yet these operations now represent a much smaller portion of the total ore tonnes mined due to the changing mining techniques meaning larger lower grade deposits are becoming economic. It appears the future of mine automation will be directed by surface mining as this maturing technology finds further applications above ground and in the next decade large scale open pit automation trials gain more momentum.This paper assesses the implications of introducing driverless haul trucks in a typical large remote Australian open-pit mine. Such automation will save employee and associated costs, increase operational productive hours and ultimately will reduce mine site workforce numbers. While there will be fewer jobs per mine, with reduced costs and higher productivity some previously uneconomic mines may again be profitable.The social implications of greater mine site automation are the reduction in population of remote mining towns and a decrease in the lower skilled labour requirements for the mining sector. There will be an increase in fly-in fly-out mining operations and companies will establish remote control centres for automated mines in larger cities. This may decrease overall labour requirements and so reduce employment in the sector; therefore, the government should be mindful of implementing policies that ensure a fair return on the economic rent of mineral leases.     

Incorporating environmental issues into optimum cut-off grades modeling at porphyry copper deposits

Cut-off grade is defined as the grade which discriminates between ore and waste within a given orebody. Determination of a complete optimum cut-off grade policy is a very important function during mine life. Using the modified optimum cut-off grade model presented in this paper not only the net present value of a porphyry copper mining project is maximized, but also the adverse environmental impacts of the project are minimized simultaneously. This methodology is more effective in long-range planning. For showing the effectiveness of the model, two scenarios are considered in a hypothetical deposit and the results show that incorporating the modified optimum cut-off grade policy, the net present value will be increased by 3.6% in comparison with the Base Case.     

Modelling future copper ore grade decline based on a detailed assessment of copper resources and mining

The concept of “peak oil” has been explored and debated extensively within the literature. However there has been comparatively little research examining the concept of “peak minerals”, particularly in-depth analyses for individual metals. This paper presents scenarios for mined copper production based upon a detailed assessment of global copper resources and historic mine production. Scenarios for production from major copper deposit types and from individual countries or regions were developed using the Geologic Resources Supply-Demand Model (GeRS-DeMo). These scenarios were extended using cumulative grade-tonnage data, derived from our resource database, to produce estimates of potential rates of copper ore grade decline.The scenarios indicate that there are sufficient identified copper resources to grow mined copper production for at least the next twenty years. The future rate of ore grade decline may be less than has historically been the case, as mined grades are approaching the average resource grade and there is still significant copper endowment in high grade ore bodies. Despite increasing demand for copper as the developing world experiences economic growth, the economic and environmental impacts associated with increased production rates and declining ore grades (particularly those relating to energy consumption, water consumption and greenhouse gas emissions) will present barriers to the continued expansion of the industry. For these reasons peak mined copper production may well be realised during this century.     

餐厨垃圾预处理工艺研究及现场应用

餐厨垃圾有机质含量大,具有较高的回收价值,资源化利用是发展的趋势,但是我国餐厨垃圾具有含水量大、杂物多、油脂提取难等特点,增加了处理的难度.研发一套餐厨垃圾预处理工艺,并对相关设备的结构尺寸进行了优化,形成了以精分选、高提油为特点的工艺技术,综合杂物拣出率达到95％以上,提油率达到98％以上.该工艺在光大国际宿迁100...     

US uranium deposits: A geostatistical model

The frequency distributions of both grade and size of metal deposits may be well approximated by lognormal distribution functions. Using data on presently viable deposits and a simplified function which links production cost to deposit grade and size, a bivariate lognormal deposit grade/size distribution may be calibrated for a given geological environment. Exploration is introduced by assuming that the proportion discovered of the potential uranium reserve available at or below a given production cost can be represented by a function of the average deposit size and the unit exploration expenditure. As output the model derives estimates of total reserves linked to maximum production costs and to exploration expenditure where the latter may be expressed either as expenditure per lb of mineral discovered or as a given percentage of operating profit. The model is offered as a basis for discussion, and the conclusions are tentative.     

OPTIMUM STORAGE VOLUME OF ROOFTOP RAIN WATER HARVESTING SYSTEMS FOR DOMESTIC USE1

ABSTRACT: Major parameters and optimum storage volumes of rooftop rain water harvesting systems (RRWHSs) have not been investigated in detail in Taiwan. Accordingly, the four major parameters of RRWHSs were herein identified and elucidated using a simulation method. Because the performance of the RRWHSs is sensitive to the runoff coefficient, a field experiment was conducted to determine the runoff coefficient more precisely for various types of roofs. A simulation model including production theory was developed and employed to estimate the most cost effective combination of the roof area and the storage capacity that best supplies a specific volume of water. Consequently, the expansion path of optimum solutions for different volumetric reliability of water supply can be determined. Additionally, the method based on the marginal rate of substitution can be used for determining the rational volumetric reliability. The procedures developed herein constitute an effective tool for preliminarily estimating the most satisfactory storage capacity of any specific roof area and for determining the rational reliability of a corresponding water supply.     

The new economic order and world mineral production and trade

World mineral production is dominated by the developed countries — the developing countries dominate production of only tin, cobalt, bauxite, and petroleum. This production pattern is largely the result of historical, political, and economic factors, and is not likely to change radically in the next decade. Apart from petroleum, there seems to be little opportunity for the formation of mineral-producer cartels, although there is considerable scope for constructive producer-consumer agreements. Given the pattern of world mineral production and trade, the developed countries would on the whole benefit more than the developing countries from price increases. The most acute present need is for new means of financing exploration and development of mineral deposits in the developing countries, and for means of redressing the worst imbalances between rich and poor nations outside of the commodity arena.     

Economic analysis of best management practices to reduce watershed phosphorus losses

In phosphorus-limited freshwater systems, small increases in phosphorus (P) concentrations can lead to eutrophication. To reduce P inputs to these systems, various environmental and agricultural agencies provide producers with incentives to implement best management practices (BMPs). In this study, we examine both the water quality and economic consequences of systematically protecting saturated, runoff-generating areas from active agriculture with selected BMPs. We also examine the joint water quality/economic impacts of these BMPs-specifically BMPs focusing on barnyards and buffer areas. Using the Variable Source Loading Function model (a modified Generalized Watershed Loading Function model) and net present value analysis (NPV), the results indicate that converting runoff-prone agricultural land to buffers and installing barnyard BMPs are both highly effective in decreasing dissolved P loss from a single-farm watershed, but are also costly for the producer. On average, including barnyard BMPs decreases the nutrient loading by about 5.5% compared with only implementing buffers. The annualized NPV for installing both buffers on only the wettest areas of the landscape and implementing barnyard BMPs becomes positive only if the BMPs lifetime exceeds 15 yr. The spatial location of the BMPs in relation to runoff producing areas, the time frame over which the BMPs are implemented, and the marginal costs of increasing buffer size were found to be the most critical considerations for water quality and profitability. The framework presented here incorporates estimations of nutrient loading reductions in the economic analysis, and is applicable to farms facing BMP adoption decisions.