Modelling mining: Open pit copper production in British Columbia

Open pit copper mining in British Columbia is modelled to examine how different price levels affect rates of output and stocks of reserves and to consider the existence and distribution of economic rents. The model depicts the influence of different economic circumstances on production plans, for example, with respect to scale of operations and cutoff grade. To achieve this it represents a balance between the high level of abstraction which has characterized the writing of most economists and the degree of detail and complexity required of models used by operating mines. The model provides a basis for the study of the consequences of alternative forms of taxation, a subject to be pursued in subsequent articles.