Impact of Surface Cost on Lignite Mining Project

Abstract

The paper deals with impact of surface cost on lignite mining project. Not only profitability is discussed but also relations between land owners and a Mine Company. Land acquisition is analyzed and statistics are presented. Surface cost as term is introduced. Investigations are conducted on real data obtained from an already closed pit. Geological data is processed and economic block model is built. Lignite quality parameters are estimated with the use of kriging. Surface cost map of deposit area is generated as average measures for purchase/sale of real estate transactions. Ultimate pits with the use of Lerchs-Grossmann algorithm are generated and results are discussed. Additional spatial relation as increase in required land area for operation due to ultimate pits cases is shown. Time factor in land buyout is discussed. Over or underestimating surface cost may have significant impact on viability of lignite mining project.