Factors Affecting Mine Viability

Existing Conditions of Deposit

Mineral content: The amount and type of minerals in a deposit significantly impact its viability.
Deposit size: A larger deposit often makes a mine more viable because it can supply more resources.
Grade: A deposit with a higher concentration of minerals is typically seen as more valuable and therefore more viable.
Accessibility and location: If a deposit is difficult to access, such as being deep underground, in a remote location, or underneath populated areas, its viability can be negatively impacted.

Extraction methods: The mining method that would be required to extract the resources can affect a mine’s viability. Some methods are more expensive or hazardous than others.
Processing requirements: The level of processing required can significantly affect a mine’s viability as certain minerals require costly and complicated refinement techniques.
Technology available: The presence of advanced mining technologies can make extraction more efficient and cost-effective, thus increasing the viability of the mine.

Market prices: The expected sale value of the mineral in regional, national, and international markets dictates the economic viability of the mine.
Operating costs: If costs for extraction, processing, and transportation are high, they can compromise a mine’s profitability and therefore its viability.
Investment requirements and potential risk-return ratios: High costs can eventually result into high returns. However, if the risk factor is high, stakeholders might hesitate to invest, which will affect a mine’s viability.

Regulatory requirements: Legal permissions and the regulatory environment can impact a mine’s viability. High compliance costs or stringent environmental regulations might inhibit a mine’s operation.
Environmental impact: The environmental footprint of the proposed mining operation, such as effects on local ecosystems, greenhouse gas emissions, and potential for pollution, can influence a mine’s viability.
Social licence to operate: Acceptance or approval from local communities and stakeholders is critical for mine viability. Public opposition can lead to delays, increased costs or even cessation of the project.

Geological risk: Knowledge about the geology and uncertainties around the actual quantity and quality of the mineral present is one of the key risks that can impact the viability of a mining venture.
Market risk: Fluctuations in the prices of minerals can significantly impact the revenue and thus the viability of mining operation.
Technical risk: Risks related to technical challenges, such as equipment failure or difficulties in executing the mining plan, can impact the viability of a mine.
Socio-political risk: Changes in government regulations, social unrest or conflict, or adverse public opinion can create significant risks for a mine’s operation.