Scholarly record

FEASIBILITY STUDY AND ECONOMIC EVALUATION FOR AREA 3 OF GOL-E-GOHAR IRON ORE DEPOSIT

F. Namin, H. D. Jan Abadi, K. Shahriar

Abstract

The economical investigation is one of the most important stages in the mine planning, as it can be a useful guide in the mine exploitation. The iron ore district of Gol-E-Gohar (GEG) is located about 60 km south-west of the city of Sirjan, in the Kerman Province of the Islamic Republic of Iran. Six anomalies are known and for about 10 years, Area 1 ore is mined and processed for the recovery of a dry as well as a wet concentrate. The proven reserves of Area 1 were about 265 million tonnes, whereas near to 100 million tonnes are already mined. The largest anomaly in the GEG district is Area 3 with large thickness of cap rock. This paper is a feasibility study about mine extraction and construction of concentration and pelletizing plant from Area 3 deposit of GEG, with the capacity of 10 million tonnes product (concentrate and pellet) per year and we’ll pay attention to financial calculation including the provision manner of financial resources, operation period revenue, loss and profit statement, cash flow, net cash flow, Internal Rate of Return (IRR) and Net Present Value (NPV). The feasibility study operating plan assumes a large open pit mine containing proven reserves of approximately 250 million tonnes. The feasibility study assumed an economic base case utilizing \$80 per tones iron pellet. This study has established that the Area3 of GEG can be economically developed by open pit mining followed by a magnitude separation, flotation to generate an iron concentrate and palletizing to generate iron pellet. Keywords: Feasibility Study, Economic Evaluation, Iron Ore Mine, Gol-EGohar Iron Ore Deposit.

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