Locational aspects of mine development economics: Nova Scotia's competitive position in Canada

CIM Bulletin, Vol. 79, No. 891, 1986

BRIAN W. MACKENZIE Queen's University, DALLAS W. DAVIS, Consultant and MICHEL L BILODEAU, McGill University

The paper formulates an evaluation procedure for examining the effects of location on the economics of developing mineral deposits. This methodology is applied to assess locational aspects of Nova Scotia's competitive position for mine development relative to other Canadian regions and provinces. The appraisal concerns two representative mine development opportunities, a medium-size open-pit tungsten deposit, and a small underground gold deposit. The influence of regional economic conditions is initially assessed. Then, the consequences of taxation are isolated. Finally, the combined impact of regional and taxation conditions is examined.
Keywords: Mine development, Economics, Mining investments, Mineral exploration, Mineral deposits, Gold, Tungsten, Taxation, Nova Scotia.