71
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accuracy range of –10%, +35% described by Thibault et al. (2010). These inputs, their ranges,
and types of distribution are listed in Table 28.
Table 28. Monte Carlo Simulation Input Distributions for Grade, Recovery, and Costs
Name
Graph
Min
Mean
Max
Std Dev
5%
50%
95%
p95-p5
Grade (ppm)
0.00
33.38
+∞
146.750
0.37
7.37
128.77
128.39
Recovery – Short-Term Base Case
Recovery (ore
to concentrate,
%)
0.40
0.50
0.60
0.041
0.43
0.50
0.57
0.14
Recovery
(concentrate to
sponge, %)
0.50
0.60
0.70
0.041
0.53
0.60
0.67
0.14
Recovery
(sponge to
4N8, %)
0.70
0.80
0.90
0.041
0.73
0.80
0.87
0.14
Recovery – Short-Term “Scenario 2” and Medium-Term “Base Case”
Recovery (ore
to concentrate,
%)
0.75
0.80
0.85
0.020
0.77
0.80
0.83
0.07
Recovery
(concentrate to
sponge, %)
0.80
0.90
1.00
0.041
0.83
0.90
0.97
0.14
Recovery
(sponge to
4N8, %)
0.90
0.95
1.00
0.020
0.92
0.95
0.98
0.07
Costs, Amortization, and Discount Rate
Operating cost
(% from base)
-0.10
0.08
0.35
0.096
-0.05
0.07
0.26
0.31
Capital cost (%
from base)
-0.10
0.08
0.35
0.096
-0.05
0.07
0.26
0.31
Amortization
(years)
10.00
15.00
20.00
2.041
11.58
15.00
18.42
6.84
Discount rate
(%, real)
0.05
0.10
0.15
0.020
0.07
0.10
0.13
0.07
Indium –
byproduct cost
allocation (%)
0.00
0.03
0.10
0.024
0.00
0.03
0.08
0.08
Indium – main
product cost
allocation (%)
0.80
0.93
1.00
0.047
0.84
0.94
0.99
0.15
72
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We then run the simulation. Because we are concerned with the short term, we want to include
all simulation realizations that cover direct operating costs only. We assume that capital costs are
sunk and therefore these are not a consideration for the mine or refiner when determining
whether to produce indium. No provision is made for potential taxes or royalties, which would
vary depending on jurisdiction and profitability of the operation. Once these realizations are
eliminated, the total is normalized to the midpoint annual estimate for 2011—that is, 711 tonnes
of refined indium metal. The simulated cases are ranked in order of increasing cost to generate
the supply curve for 2011 in Figure 29.
Figure 28. Short-term primary indium supply curve
When considering overall recovery rates in the short run and the amount of indium that could
potentially be recovered from current mining
operations, it useful to consider three scenarios:
•
Refined primary indium production from mines’ structure of the value chain and recovery
efficiencies (i.e., the midpoint figure of 731 tonnes refined metal from 2011)
•
Refined indium production if the pipeline were structured such that all indium-bearing
concentrates were sent to indium-capable smelters, but assuming current recovery rates
•
Refined indium production given in the first bullet, but also assuming that recovery
efficiencies are possible to the extent highlighted by existing feasibility studies (Section
4.2), and ignoring any necessary investment.
Table 29 shows that, when considering overall yields of 14%–20%, 3,730–5,221tonnes of
indium must be mined to yield 731 tpa of refined metalis . Using these values as inputs to the
value chain and varying efficiencies across the pipeline such that all indium-bearing concentrates
are shipped to indium-capable smelters, overall recovery of the refined metal increases from 731
tpa in the base case to 1,044 tpa, corresponding with overall recovery rates of 20%–28%. Once
we vary recovery efficiencies to correspond with current technologies, recovery of indium