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

23,700 lbs phosphate

1,074 lbs lead

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

Input output analysis

Governments economic objectives

Mineral policy

Mineral
Economics

Investment, trade, tax,

and government
strategies

Economical linkage
and multiplier effects

Economics

Individual
Company

Economy

Economics

Market

Inflation
International trade

Resources, limited, efficiently

Main Characteristics of Mineral Industry

Nonrenewable
material

Dimension
and Shape

Supplydemand

are irregular

issues

Availability
are 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