L13. Mineral Economics

L13. Mineral Economics - MineralEconomics n Mineral...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Mineral Economics n Mineral: inorganic solid substances found in or on the ground. q Fuel q Non Fuel n Metals q Ores: iron, nickel, bauxite, and precious metals n Industrial minerals q Cement, fertilizer minerals, abrasives, gem stones q A mineral is a non-renewable resource n ΔS=0 q The main question asked in this chapter: Given a fixed quantity of non-renewable resource, how fast should it be extracted and used? q Second question: how much should be spent on finding new stocks? q Third issue: recycling
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
n Example of Copper q A randomly chosen bucket of earth’s crust contains 63 ppm of copper q However copper is mined only at places with high concentration n Low costs at current technology n Concentration is termed grade of deposit q Under technology available there is a cut-off grade, g2 in the figure q At low grades supply may be very large, see g1 in figure n Thus questions q At a given grade what is socially efficient extraction q What is economically efficient exploration? n
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 9

L13. Mineral Economics - MineralEconomics n Mineral...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online