Comparative Porphyry Copper Mining and Processing Costs - Alaska and Arizona PDF Download

Author: Robert Bottge
Publisher:
ISBN:
Category : Copper mines and mining
Languages : en
Pages : 68

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Book Description
To better understand those factors which increase mining costs in Alaska, a Bureau of Mines study was conducted to compare the estimated costs of operating a 100,000-tpd open pit copper mine located on a hypothetical ore body in the Lake Clark area, Alaska, with the costs of mining a similarly sized hypothetical copper ore body near Tucson, Ariz. The information derived should be beneficial to the State and Federal governments in appraising the potential for development of large, low-grade porphyry copper deposits in south-central Alaska. Conventional mining and concentrating methods were assumed, and capital and operating costs were derived using flowsheets and standard costing methods. The total price required for copper mined in Alaska and Arizona was $1.12 and $0.63 per pound, respectively, plus or minus 20 percent. These values were obtained assuming no leaching of low-grade copper, recovery of gold, silver, and molybdenum as byproducts, 100-percent equity financing, and a 12 percent discounted cash flow rate of return. The average domestic and international prices for copper in July 1973 were $0.60 and $0.916 per pound, respectively. The existence of a developed transportation and power system in Alaska would have reduced capital and operating costs subs tantially. The required price for copper would have declined from $1.12 to $1.05 per pound, plus or minus 20 percent.