One of the major advantages AAA and the other potash plays in Ethiopia have over ALL OTHER Potash miners in the world is the potential to be the only open pit potash mines in the world.
Because we are going to be somewhat the pioneers at this, I've been researching this a bit more to see if there were any "issues" that may impact the likelihood that AAA will be able to succeed.
The development of a large underground mine can take from five to ten years. The interest cost during the construction time will thus be high and can account for up to 30 to 40% of the capital requirement before mining can start. ------------------------ Many surface mines operate 24 hr/day and almost 365 days/ yr. The high capital requirements for purchase of open pit equipment make it important to use as many hours per year as possible so the number of machines can be reduced. In the case of a machinery breakdown, it is often easy to move the vehicle and replace it with a spare, so that ore production can resume.
Underground mines, on the other hand, often must limit their daily, weekly, and yearly operating times because of the need for ventilation and maintenance. In the case of underground coal mines, tradition and union attitudes have so far prevented work crews from being rotated into weekend time slots. This makes the number of mines greater than what it could be with a higher equipment time utilization and the capital requirement higher per ton of capacity. -------------------------------------- In a surface mine, a large part of the operating costs is variable. If a surface mine operator must decrease production, it is often possible to sell the mining equipment, because there is a large market for such equipment that is also used by other industries.
Underground mining requires more mine-specific equipment. In addition, large amounts of money are often invested in shafts and haulage systems. It is, therefore, more likely that an underground mine will keep producing as long as the revenues cover the variable operating costs, even though the operation is not profitable on an overall cost basis. ------------------------------------ In a surface mine, it is normally possible to recover almost all the mineral or coal one wants to mine. As a general rule, surface mining allows extraction of a larger part of a deposit than if underground methods are used.
The recovery underground is usually lower and depends upon the mining method used. ------------------------------------- Published data indicates that most surface operations require 5 to 10 kWh energy equivalents/ton of rock handled. Most of this is diesel fuel, although the use of electric power has increased in recent years because of trolley-assist trucks and in-pit crushing and conveying.
Underground mining normally requires an average of 15 to 30 kWh of energy equivalent/ton, with up to 50 kWh in smaller cut and fill operations. A large part of this is electricity. During recent years, electric trucks and load-hauldump (LHD) equipment have been developed. -------------------------- Only in very cold or hot climates do miners find it better to work underground than in a surface mine.
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