Introductory to

Mineral

EconomicsRini Novrianti Sutardjo Tui

Natural Resources

Agriculture Mining

if it can’t be grown, it has to be mined

Everything we have and everything we use comes from our natural resources

Needs for Mining Materials

1,841 lbs copper

586,218 lbs coal

23,700 lbs phosphate

5,599 lbs aluminum

1,074 lbs lead

81,585 gallons petroleum

45,176 lbs iron ore±57,448 lbs other minerals and metals

±3.7 million pounds of minerals, metals, and fuels in his/her life time

What is Mineral Economics?

Mineral Economics

Application of principles of economics theories to support decision making

of mineral investment

National

Resources

Private

PropertiesNatural

Resources

Scope of Mineral Economics

Mineral Economics

Mineral policySupply – demand (market)

of mineral

Investment, trade, tax,

and government

strategies

Economical linkage

and multiplier effects

Input – output analysis

Government’s economic objectives

Economics

Economics

Resources, limited, efficiently

Individual

Company

Market

Economy

Inflation

International trade

Main Characteristics of Mineral Industry

Non-renewable

material

Dimension and Shape

are irregular

Supply-demand

issues

Availabilityare not spread evenly

Resource and Reserve

Resource

In situ estimation based on

geological evidence with

preliminary technical and

economic assessments sufficient

to show that there are reasonable prospects for

eventual economic extraction.

Reserve

The economically mineable part of a mineral resource.

Mining dilution and recovery factors have been

applied and technical and economic studies carried out of

sufficient detail to demonstrate

at the time of reporting that extraction could reasonably be

justified.

Horizontal Subdivisions

Vertical Subdivisions

The Decision Process