Mining Handbook. Volume 7

Author: Editor-in-Chief: Peng Zhaode
Publisher:
Publish Date: 1999-09-01
Features: The Mining Handbook is divided into 41 chapters and published in seven volumes:
Volume 1: Mine Geology and Mine Surveying
Volume 2: Blasting and Rock Support
Volume 3: Open-Pit Mining
Volume 4: Underground Mining
Volume 5: Mine Transport and Equipment
Volume 6: Mine Ventilation and Safety
Volume 7: Mine Management
This volume is the seventh and includes four chapters: Mine Technical Economy Research and Evaluation, Mine Systems Engineering, Quality Management of Ore and Comprehensive Utilization of Resources, and Mine Management, along with twelve appendices on commonly used mine equipment and instruments. This book is primarily intended for mine mining engineers, and it is also an important reference for researchers, designers, educators, and mine management personnel involved in mining.
Excerpt:
38.1 Feasibility Study of Mine Construction Projects
38.1.1 Definition of Feasibility Study
Feasibility study is a scientific method developed in Western countries after World War II for analyzing and evaluating various construction plans and business operation decisions. It involves investigating and comparing the main issues of a project, such as market demand, resource conditions, supply of raw materials, fuels, and power, construction scale, and equipment selection, from technical, economic, and engineering perspectives. It also predicts the potential technical and economic outcomes of the project after completion, thereby providing recommendations on whether the project is worth investing in and how it should be constructed, offering reliable support for project decision-making. In China, feasibility studies have become an essential part of the preliminary work for project management, helping to avoid and reduce decision-making errors, improve the comprehensive benefits of investment, and are a component of the basic construction process [1]. Mining construction is one of the important fields of national economic construction. Due to its unique characteristics, the feasibility study for mining construction is particularly demanding. It must not only examine the technical and economic conditions of the mining project itself but also consider its social aspects and its relevance to various industries. Strengthening the feasibility study for mining construction, fully estimating its challenges, and making correct project decisions to optimize the development of China's mines are crucial for the success of the country's modernization efforts.
38.1.2 Tasks, Content, and Role of Feasibility Study
The task of a feasibility study is to comprehensively analyze and evaluate whether a project is technically, engineering-wise, and economically reasonable and feasible, based on long-term national, regional, and industry planning. It involves comparing multiple plans, providing assessments, and offering reliable evidence for the preparation and approval of design task books [1]. The feasibility study for a mine project generally requires the following main content [1]:
(1) General Introduction
1) Background of the project proposal (for expansion and renovation projects, the current status of the enterprise must be described), necessity of investment, and economic significance.
2) Basis and scope of the research work.
(2) Demand Forecast and Proposed Scale
1) Forecast of domestic and international demand.
2) Estimation of production capacity of existing domestic enterprises.
3) Sales forecast, price analysis, product competitiveness, and prospects for entering the international market.
4) Comparative analysis of the technical economy of the proposed scale, product plan, and development direction.
(3) Resources, Materials, Fuels, and Public Utilities
1) Evaluation of officially approved resource reserves, grade, composition, and conditions for exploitation and utilization.
2) Types, quantities, sources, and supply possibilities of auxiliary materials and fuels.
3) Quantity, supply methods, and supply conditions of required public utilities.
(4) Site Conditions and Location Selection
1) Geographical location, meteorological, hydrological, geological, topographical conditions, and socio-economic status of the site.
2) Current and future trends of transportation, water, electricity, and gas supply.
3) Site comparison and selection.
(5) Design Plan
1) Scope of the project, sources of technology, production methods, comparison of main technical processes and equipment selection, sources of imported technology and equipment, and plans for domestic and foreign equipment allocation or cooperation with foreign manufacturers. For expansion and renovation projects, the potential for utilizing existing fixed assets must be considered.
2) Selection of plant layout plans and estimation of civil engineering work.
3) Comparison and selection of public utilities, auxiliary facilities, and internal and external transportation methods.
(6) Environmental Protection
Investigate the current environmental conditions, predict the project's impact on the environment, and propose environmental protection and waste treatment plans.
(7) Enterprise Organization, Labor Quotas, and Personnel Training.
(8) Recommendations for Implementation Schedule.
(9) Investment Estimation and Fundraising
1) Investment required for main projects and supporting facilities.
2) Estimation of working capital.
3) Sources, methods of fundraising, and repayment plans for loans.
(10) Social and Economic Impact Evaluation
In summary, a feasibility study ultimately aims to clarify three key issues: the necessity of project construction, technical feasibility, and economic rationality. Once a feasibility study report is reviewed and approved, it can serve the following purposes [2]:
(1) As a basis for investment decision-making and preparation of design task books for the proposed project.
(2) As a basis for fundraising and applying for bank loans.
(3) As a basis for negotiating contracts and agreements with relevant project stakeholders.
(4) As a foundation for preliminary design work.
(5) As a basis for research plans on adopting new technologies and equipment.
(6) As a basis for supplementary exploration and industrial experiments.
(7) As a reference for formulating basic construction plans and conducting preliminary work.
(8) As a basis for environmental authorities to review the project's impact on the environment.
38.1.3 Stages of Feasibility Study and Construction Process [3, 4]
38.1.3.1 Project Development Cycle
From a financial perspective, an engineering project can be divided into the pre-investment period, investment period, and production period; from a construction perspective, it is the preliminary construction stage, construction period, and production period. The construction period is a time of significant capital investment, while the production period is when the expected investment returns are realized. The pre-investment period serves as the foundation for both the investment and production periods, representing the planning and feasibility study phase, which is often referred to as the "determining factor of investment fate" in foreign countries.
38.1.3.2 Three Stages of Feasibility Study
Feasibility studies are typically divided into three stages—opportunity study, preliminary feasibility study, and feasibility study—based on the maturity of construction conditions.