An economic feasibility study of manganese nodule in Korea area: Clarion-Clipperton Fracture Zone SCOPUS KCI

Title
An economic feasibility study of manganese nodule in Korea area: Clarion-Clipperton Fracture Zone
Author(s)
Nam, K.; Oh, W.; Kwon, S.
KIOST Author(s)
Kwon, Suk Jae(권석재)
Publication Year
2004
Abstract
The purpose of this paper is to investigate economic feasibility of manganese nodules in the area obtained by Korea (Clarion-Clipperton Fracture Zone). We assumed that the production scale of manganese nodules were 3.0 MT (million ton(dry)) or 1.5 MT, and estimated the capital costs and operating costs by sectors such as exploration, mining, transportation, and metallurgical process. The capital cost and operating cost evaluation reflects the latest technical practices. First, for analyzing economic feasibility, the scenario suggests that the production of 4 metals can be made for 25 years. It is assumed that the discount rate, equity capital, and tax rate are each 8.0%, 50%, and 27%. 3.0 MT of manganese nodule were mined, economic feasibility analyses showed that IRR was 12.8 and pay-back period was 9.2 years, and when 1.5 MT of manganese nodule were mined, economic feasibility analyses showed that IRR was 4.0 and pay-back period was 11.8 years. This study shows that there exists economic feasibility when 3.0 MT of manganese are produced. In addition, we carried out a sensitivity analysis at the change of cobalt price on mining 1.5 MT. The result of sensitivity analysis shows that economic feasibility goes up as increase of cobalt price (50% up).
ISSN
1598-141X
URI
https://sciwatch.kiost.ac.kr/handle/2020.kiost/5325
DOI
10.4217/OPR.2004.26.2.187
Bibliographic Citation
Ocean and Polar Research, v.26, no.2, pp.187 - 197, 2004
Publisher
Korea Ocean Research and Development Institute
Subject
economic geology; feasibility study; manganese nodule; marine resource; metals industry; nodulation; Pacific Ocean; Goes
Keywords
Clarion-Clipperton Fracture Zone; Economic feasibility study; Manganese nodules
Type
Article
Language
Korean
Document Type
Article
Publisher
Korea Ocean Research and Development Institute
Related Researcher
Research Interests

Non- Market Valuation,Natural Disater Damage Evaluation,비시장가치 평가,자연재해피해 평가

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