An Economic Analysis of Open-Pit and In Situ Mining

In situ mining is no longer a "last ditch" approach for recovery of uranium, but a proven and competitive method of exploiting sedimentary deposits. Today, in any feasibility study of uranium properties, the project manager would be prudent to compare the economics of in situ methods with conventional surface and underground techniques. In this comparison of in situ and open-pit mining, John J. Borkert and Carl E. Gerity of Occidental Minerals Corp., evaluated a group of hypothetical uranium deposits using the three most sensitive depositional characteristics of depth, size, and grade. Their conclusion: in situ is generally the better method to maximize total net profits and return on investment. At uranium values of $40 per pound, their analysis found open-pit mining to he unprofitable, generally, when stripping ratios were greater than 30:1, the deposit grade-thickness (GT) was 0.5 or less, or the ratio of depth to GT was greater than 200.