LIFE OF MINE.pdf

MINE ECONOMICS Life of Mine Engr. Kristine Georgia Y. Po Life of Mine Life of Mine (LOM) refers to the projected duration over which a mining operation can economically extract mineral reserves. It is typically measured in years and is calculated based on various factors such as o...

MINE ECONOMICS Life of Mine Engr. Kristine Georgia Y. Po Life of Mine Life of Mine (LOM) refers to the projected duration over which a mining operation can economically extract mineral reserves. It is typically measured in years and is calculated based on various factors such as ore reserves, mining capacity, and market conditions. Life of Mine Understanding LOM is crucial for project planning, financial forecasting, and investment decisions. It affects the overall economic viability of a mining project, influencing decisions regarding capital expenditure, operational strategies, and long-term sustainability. Important Considerations Ore Reserves: The quantity and grade of the ore available for extraction. Production Rate: The rate at which ore is extracted and processed. Cut-off Grade: The minimum ore grade required to economically justify extraction. Economic Factors: Commodity prices, operating costs, and other economic conditions impacting the mine's profitability. Taylor’s Rule for Estimating Mine Life What is Taylor’s Rule? Taylor's Rule is a widely used empirical formula for estimating the mine life (LOM) based on the total recoverable reserves of a mining project and the production rate. Taylor’s Rule for Estimating Mine Life Taylor’s Rule for Estimating Mine Life This rule provides a rough estimate of the life of the mine by considering the size of the mineral reserves. It assumes that production rates are constant over time and provides an estimate for planning purposes. Taylor’s Rule for Estimating Mine Life Taylor's Rule is commonly used during the early stages of mine development to provide a quick estimate of the mine's operational lifespan. However, it should be supplemented with more detailed analysis as the project progresses. Taylor’s Rule for Estimating Mine Life While useful, Taylor’s Rule is a simplified model and doesn’t account for factors like fluctuating production rates, changes in technology, or variations in ore grade. It should be used as an initial estimate rather than a precise forecast. Taylor’s Rule for Estimating Mine Life Example Calculation Sample data: Ore Reserves = 100 million tonnes Calculation of estimated Life of Mine using Taylor’s Rule Advantages for using Taylor’s Rule Simple and Quick Estimate Useful for Early Stage Preparation Ease of Use Preliminary Planning Tool Minimal Data Requirements Comparative Tool Quick Decision-Making Guidance for Investment THANK YOU! Engr. Kristine Georgia Y. Po