MinE-303 Mine Operation System

Questions and Answers

What is the characteristic of a flat dipping vein according to the given information?

The thickness of the vein is very thin compared to the horizontal extent. (correct)

The vein has a dip greater than 50°.

The thickness of the vein is equal to the horizontal and vertical extent.

The thickness of the vein is medium compared to the horizontal extent.

What is a common challenge faced by mining businesses due to their geographical location?

Availability of low-cost transportation.

Proximity to well-structured markets.

Access to knowledgeable local authorities.

Inaccessibility and inhospitable environments. (correct)

What is the primary goal of the optimum mining plan?

To adhere to environmental regulations.

To maximize the net present value (NPV) of the business. (correct)

To maximize the extraction rate of minerals.

To minimize operational costs for the mining company.

What does a positive Net Present Value (NPV) indicate about a mining project?

The project will add value to the company. Signup and view all the answers

How does the pricing of mining products typically behave in the market?

Prices are competitive and can be very volatile. Signup and view all the answers

Which statement best describes the thickness of a massively ore deposit?

Its thickness is equal to its horizontal and vertical extent. Signup and view all the answers

How is NPV calculated for a mining project?

By discounting all cash flows to the same point in time. Signup and view all the answers

Under what condition is a project considered economically acceptable?

When the sum of discounted receipts exceeds the sum of discounted expenditures. Signup and view all the answers

What political risk is often involved in the mining business?

Negotiations and agreements with local authorities. Signup and view all the answers

What is a challenge faced when dealing with complex mineral resources?

There is high uncertainty concerning the shape and size of deposits. Signup and view all the answers

Study Notes

Main Features of Mining Industry

Mining deals with finite non-renewable resources, necessitating optimized plans to maximize net present value (NPV) over the mine's lifecycle.
NPV is a crucial evaluation measure; a positive NPV indicates that investing in a project will enhance company value.
NPV is calculated by discounting all cash flows to a common time, with the formula: Project NPV = SCF0 + CF1(1+i)-1 + CF2(1+i)-2 + … + CFn(1+i)-n.
Economic acceptability of a project occurs when discounted receipts surpass discounted expenditures.
Projects generally have a complex mineral resource, modeled using scattered samples, leading to uncertainties in deposit characteristics.
Ore body orientations include flat, medium, and steeply dipping veins, each presenting unique extraction challenges.
Mine locations are often remote, requiring negotiations with local authorities, adding political risks.
The market for mining products is free and open, characterized by high transportation costs, volatile pricing, and poor market structure.

Mine Planning Stages

Mine planning is categorized by detail: conceptual, feasibility, and operational levels.
Timeframes in mine planning include long-term, medium-term, and short-term plans.
Categorization by scope of actions includes strategic planning, which determines business value, and tactical planning, which focuses on execution.
Strategic mine planning involves significant decisions affecting overall business value, while tactical planning deals with operational tasks.
Technical decisions include mining method selection, processing routes, operation scales, mining sequences, and selective cut-offs.

Feasibility Studies

Feasibility studies analyze all project factors to determine viability, guiding go/no-go decisions and assisting in securing financial backing.
Phases of feasibility studies include Scoping Study, Pre-Feasibility Study, and Final Feasibility Study.
Feasibility relates to both physical project aspects and economics, requiring justification of increasing financial commitments through the project stages.

Operations Research

Operations research is a scientific methodology for analyzing complex problems to improve decision-making.
Optimization seeks to find the most effective way to carry out activities, originating from Latin terms implying excellence.
The process of optimization addresses limitations and conditions imposed by limited resources and selection criteria in decision-making.
Solutions to optimization problems can be approached through trial and error or mathematical techniques.

Description

Test your knowledge on the mining industry and its key features with this quiz based on the MinE-303 course. Topics include managing non-renewable resources, optimizing mining plans, and understanding Net Present Value (NPV) as an evaluation measure. Perfect for students looking to reinforce their understanding of mining systems.