Optimization of mining by application of the equality principle

Jan Stenis and William Hogland

Resources Policy, 2011, vol. 36, issue 3, 285-292

Abstract: This paper shows how the equality principle can be applied to traditional mining activities as a theoretical economic basis for "environmentally friendly" waste management of natural resources. A cost structure is proposed to generally improve the exploitation of the natural resources and save energy due to the promotion of corporate economic incentives to a more cost-effective waste management related to these resources. The methodology proposed is based on the cost-benefit analysis concept. It employs the previously introduced equality principle and the model for Efficient Use of Resources for Optimal Production Economy (EUROPE) featuring shadow prices so as to optimize the mining slope and the ore-concentration when utilizing the resources of the rock and provide management with a one digit indicator of the performance of a certain mining activity to get in just once glance an instant comprehension of their mine's overall performance. This approach simultaneously improves the profitability, the technology used and the environment. A case study presents the practical application of the proposed theory on a Swedish copper mine. It is concluded that the presented methodology improves the exploitation of natural resources in mainly technological, economical and environmental terms. The methods that are developed are regarded as being suitable information support tools for decision-making in waste management and optimization of the exploitation of natural resources in the corporate and public context.

Date: 2011
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Citations: View citations in EconPapers (4)

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