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Economic Analysis Of Deep Seabed Mining Systems : Effects Of Production Rate, Inflation And Depletion Using A Revised Financial Model
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1985
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Series: TAMU-SG ; 85-203
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Description:The effects of several variables affecting the economic performance of proposed manganese nodule mining ventures were evaluated using an improved version of the Texas A&M University's Ocean Mining Payout Analysis Program. After tax Internal Rate of Return (discounted cash flow) was used as the primary criterion of performance along with total funding requirements. Variables studied included ore production rate (throughput), processing plant location, construction period, depletion, corporate structure type, processing plant type and financing. Metal pricing used in the analysis was "normal" 1970's pricing which (with the exception of cobalt) is higher than current metal prices. Overall results show that favorable combinations of the variables can produce after tax rates of return as high as 30 to 35 percent.
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Sea Grant Document Number:TAMU-T-85-003
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Rights Information:Public Domain
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Compliance:Library
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