Introductory to

Mineral

Economics
Rini Novrianti Sutardjo Tui

Natural Resources
if it cant be grown, it has to be mined

Agriculture

Mining

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

Needs for Mining Materials

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

1,841 lbs copper

5,599 lbs aluminum 1,074 lbs lead

23,700 lbs phosphate

81,585 gallons petroleum 586,218 lbs coal

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

Natural Resources

Private Properties

National Resources

Scope of Mineral Economics

Supply demand (market) of mineral

Mineral policy

Input output analysis

Mineral Economics

Investment, trade, tax, and government strategies

Governments economic objectives

Economical linkage and multiplier effects

Economics

Individual Company Market

Economy

Economics

Inflation International trade

Resources, limited, efficiently

Main Characteristics of Mineral Industry

Nonrenewable
material

Dimension and Shape

are irregular

Supplydemand
issues are not spread evenly

Availability

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