OFR-97(A)-82 Improved Solution Mining Production Cost Model - Introduction

On April 1, 1982, the Bureau of Mines and the Department of Energy entered into an Interagency Agreement to develop an enhanced computer cost model for uranium in situ leach mining. The original computer cost model contained data base information related to two regions; the Wyoming basin region and the South Texas trend area. The enhanced cost model contains additional information on San Juan Basin type deposits. This addition is significant because it expands the model's capabilites to include one of the largest uranium producing areas in the United States and developes costs related to uranium production from in situ leach mining. The data base was expanded and modified to include changes necessary for San Juan basin type deposits. These changes included, but were not limited to, state and local taxes, royalty payments, depth of deposits, drilling costs, and electrical costs. Also site visits were taken to verify many of the base case parameters. Consequently, the data base has been incorporated into the computer program and existing software was modified to provide for the additional data. Information was obtained on drilling coats and therefore the current program more accurately reflects these costs to depths of 2500 feet. This depth parameter has been expanded to include Wyoming Basin and South Texas scenarios also. Verbal communications were held with one operator in the Crownpoint, New Mexico area as well as the state regulatory agencies to help validate the expanded model. As a result of these changes, several tables have been included, summarizing changes in the new default parameters and the overall range of input parameters.