Environmental Engineering Reference
In-Depth Information
FIGURE 4.7
Something is Always Better than
Nothing
Credit: www.CartoonStock.com .
environmental feasibility and the economic viability of each project is a continuing proc-
ess, elaborated during each phase of mine development, with more detailed environmental
information and engineering data required at each stage.
Integrated evaluation and planning, which considers economic, environmental, and
technical aspects in parallel, helps to minimize the environmental impact of the operation.
It helps to avoid or reduce adverse environmental impacts over the life of the mine and
after closure, and to minimize costs. Dei ning the i nal objectives of mine closure from the
outset allows an optimum balance between operational, rehabilitation, and closure goals to
be selected, thus minimizing the cost of these activities.
Each mining company has a minimum acceptable rate of return on investment, which
considers the cost of borrowing capital for developing a new mine, or of generating the
needed capital internally within the company. If a company has a number of attractive invest-
ment opportunities, the rate of return from the proposed mine venture is compared with the
rate expected on a different mining venture elsewhere, or with some other business opportu-
nity unrelated to mining. Eventually the project with the best rate of return is selected. The
size of an ore deposit is equally important. Large mining companies concentrate their efforts
on developing large ore deposits, and may divest rich but small mineral discoveries.
As a general rule of thumb, a project must have better than a 15 percent rate of return
to be considered by a major mining company. An individual or a junior mining company
usually expects a 30 to 50 percent rate of return to consider investing in a mining venture.
Among other uses of the cash l ow generated by the mine, these funds must i nance continu-
ing exploration elsewhere, pay for past failures, and contribute to the mine's portion of main
ofi ce and general overheads (USDA 1995).
Once the existence of a potentially valuable ore deposit is demonstrated, the project is normally
turned over to the mining and metallurgical engineers. They decide on the basis of engineering
As a general rule of thumb, a
project must have better than a
15 percent rate of return to be
considered by a major mining
company.
 
 
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