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This article presents cost models for open pit mines, which takes into account cost uncertainty. In this paper, cost uncertainty is considered as cost of under production, and cost of over production.
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Opening a mine and separation plant can cost from $500 million to $1 billion, depending on the location, element, ore grade, and a variety of other factors (Schuler, 2011). Below is an economic feasibility analysis for opening new mines and refineries based on the price of the element (which is driven by demand for that element).
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Open pit mines can be used in coal mining, and they are used extensively in hard rock mining for ores such as metal ores, copper, gold, iron, aluminum, and many minerals. In a open pit coal mine, the pit bottom would be the bottom mined coal seam elevation, since it is usually feasible to extract multiple seams when surface mining coal.
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