IC 8929 Economic Evaluation Of Borehole And Conventional Mining Systems In Phosphate Deposits

The Bureau of Mines compared the feasibility of mining deep phosphate deposits by a borehole mining system with mining by proven conventional techniques. An economic comparison of the borehole mining system with conventional dragline and bucket wheel excavator mining systems was completed at various mining depths and production rates. Hypothetical phosphate deposits, with various overburden thicknesses and reserve tonnages, were defined. Geologic conditions necessary for the application of the borehole system were identified. Discounted cash flow analyses based on derived capital and operating costs were used to generate rates of return and product prices. Borehole mining was found to be more economical where overburden thickness was 150 ft or greater; however, at 50- and 100-ft thicknesses, conventional surface mining was more economical. Overburden thickness has a great effect on the economic feasiblity of the conventional mining systems but less effect on the economics of borehole mining. Economies of scale are only realized in conventional mining, since larger equipment is employed to achieve greater production, whereas increased production from borehole mining is achieved using additional equipment units. A comparison of the environmental effects of borehole and conventional surface mining systems showed that borehole mining is environmentally more desirable.