Economics of Offshore Mining of Fine Mineral Aggregate

The pressures of urbanization are forcing producers of construction minerals either to transport their product greater distances or find new mineral sources. In areas with significant urban development near the coastal zone, offshore resources may prove to be an economically attractive alternative source. This paper addresses the economic viability of offshore mining of fine mineral aggregate. It proposes a model using a mathematical programming formulation based upon past research on both the onshore construction aggregate industry and the coal industry. The model is then used to assess offshore mining economics in the greater New York metropolitan area. Results show that in this region total consumer cost would be reduced by offshore mining of fine aggregate. In addition, increasing economies of scale could be realized by progressively larger mining operations. The distribution of these savings is also discussed.