Economics, Energy and Environment - 2019 entry

The module provides the opportunity for graduates from a range of disciplines to study important aspects of the mining cycle. These include mineral economics; energy generation and use in the extraction and processing of minerals and metals; and environmental impacts and remediation techniques. When linked to other specific modules, it forms part of the specialist training for the MSc in Minerals Processing.

This module is suitable for non-specialist students and those on interdisciplinary pathways.

This module aims to provide you with a broad understanding of both the macro-economic and the industry specific economic environment in which mines and projects operate and are evaluated. It introduces you to financial analysis and explores how technical and operational parameters influence the revenue stream and cost structure at mines.

This module has been designed to develop an understanding of the energy requirements of the extractive industry and the implications of this demand on mine development, electricity generation and as a driver for energy efficiency production.

This module familiarises the student with the legal and regulatory environmental framework within which companies explore, exploit and manage mineral resources. It highlights the key environmental impacts and issues arising from mineral exploration and exploitation and introduces concepts of Social Licence To Operate and Corporate Social Responsibility.

The module will introduce the use of life cycle analysis as a tool for assessing and linking the energy use, economics and environmental impacts in the production of metals and the manufacture and recycling of products from these metals.

On successful completion of this module, you should be able to:

Module Specific Skills and Knowledge:

1 Understand the basic principles of mineral economics and perform simple financial techniques in the appraisal of mining operations;

2 Understand the key role of energy in the extraction of minerals and its implications for mine development;

3 Comprehend the effect of mining on the environment, the planning of extractive operations to minimise impact, and the legislation associated with the environmental impact of mining. Knowledge of how to deal with environmental damage and disasters associated with mining;

4 Explain how life cycle analyses are created and how they can be used as a tool to assess the production of metals in terms of economics, energy use and environmental impacts;

Discipline Specific Skills and Knowledge:

5 Assess and manage risks (e.g.: commercial, safety, environmental etc.);

6 Take personal responsibility for acting in a professional and ethical manner;

Personal and Key Transferable/ Employment Skills and Knowledge:

7 Communicate effectively and persuasively on economic, engineering and environmental issues associated with mining;

8 Learn independently, plan and manage self-study time and tasks; accessing additional resources to provide sufficient independent study in support of the syllabus.

Economic Topics:

1 Mineral Economics. Industry fundamentals and macro-economic environment. The effects of supply and demand in perfect markets and the real world, key price drivers that effect mineral commodity prices. Development of price forecasts and metal market studies. Introduction to capital expenditure, operating costs and unit/cash cost curves;

2 Financial Analysis. Role of cash flow modelling & financial analysis/valuation of mining projects and operations. Coverage of the main components of such an analysis. General coverage of risk/sensitivity analysis, the main technical and engineering factors considered and the most common sources of business risk in the mining industry.

Energy Topics:

1 Energy requirements in mining. Overview of the distribution of energy use in the production of mineral concentrates and metals. Exploration of the influence of mineralogy and circuit selection on energy use and current strategies to manage and reduce energy requirements;

2 Electricity and energy generation for mining. Overview of the sources of energy used in the production of mineral concentrates and metals including the use of renewable sources and the effects of the scarcity of energy on mine development;

3 Life cycle analysis. Role of lifecycle analysis in the assessment of the economics, energy use and environmental impacts of mining. Discussion of how lifecycle analyses are created and case studies within the extractive minerals industry.

Environmental Topics:

1 Issues associated with the environmental impact of mining, both opencast and underground. Visual impact, noise, dust, effects on watercourses and groundwater, effects of chemicals used in processing, acid mine drainage;

2 Methods for amelioration of impacts;

3 Environmental legislation and global legislative and socio-economic environments in context of the extractive industries;

4 Environmental Case studies – research and discussion based investigations.

Overview Topics:

1 Professional skills development: tutorial sessions will be dedicated to further developing good practice in team working and planning and managing time effectively. It will build on the outcomes of similar work in other modules. This will be formatively assessed by a group posters on topics related to Economics, energy and the environment.

Health and Safety Engagement:

1 The health and safety implications related to the wiser extractive minerals industry will be covered. This will include discussion of problems associated with mining and health implications of mining on local populations.

Basic Reading:

ELE - http://vle.exeter.ac.uk/

Reading list for this module: