Provided by:
ConcentratingonCopper:AnExplorationofMineralCommoditiesRussellKohrs(MassanuttenRegionalGovernor’sSchoolforIntegratedEnvironmentalScienceandTechnology)Grades912(Earth/Geosciences)I. DescriptionofLessonIntroductionUnderstandingmarketpricefluctuationsisdifficultfortheaverageconsumerastheyarenotoftencognizantofwhatrawmaterialsareusedforvariousproducts.Thegoalofthislessonistoillustrateasmanyoftheeconomicprinciplesrelatedtomineralcommoditiesaspossibleand,asthelessonisideallytaughtinthecontextofanearthorenvironmentalsciencecourse,tocoupletheseprincipleswiththerealitiesofmineralminingandsubsequentprocessesrequiredtoproducearawmaterialfromanore.Thelessonusescopperasananalogforsuchcommodities.Whilethescopeofthislessonis,then,quiteunusualforhighschoolstudents,theseconceptsarequitenecessarytoproduceapopulacewhocanmakeeducated,sociallyresponsible,andeconomicallyprudentdecisionsinboththeirpoliticalandpersonallives.BackgroundThislessonisidealforanysituationwherethegoalistoteachearthorenvironmentalsciencestudentsabouttherealitiesofmineralcommodities,howtheyareextracted,andhowsupplyanddemandforthemworktocreatethatmarket,producegoods,andaffecttheenvironment.Intherealworld,mostofthesupplychainforsuchproductsishiddenfromtheenduseconsumer.Thisiscertainlynotintentionalonthepartofgovernmentsandcorporations,necessarily,butisprettytypicalduetotheremotenatureofmostminingoperationsandthelackofcontactthatconsumershavewithvariousmidlevelpartsofthissupplychain.Typically,theonlyexposuretomineralcommoditypriceswilloccurwhenthisconsumerwishestopurchaseaproductthatcontainsthosemineralsandwhosepriceisobservedtonotbeconsistentovertime.Petroleumisacommonexampleofthisinoureverydaylives,butitisnodifferentthananyother.Thus,thislessonfocusesonthelifecycleofcopper,whichisamineralcommoditythatmostofusthinklittleaboutinourdaytodaylivesyetisjustasprevalentandimportantasothercommoditieslikepetroleum.II.AbstractSummaryThelessonbeginswithstudentsbeingengagedbytheteacherweighingandsortingapileofcopperscrap.Itwillend,duringthefinalmomentsoftheclassperiodorsecondclassperiod,withtheclassfiguringouthowvaluablethatpileofscrapreallyisgivencurrentmarketprices.Theteacherbeginsbyconnectingcopperoretovolcanism,asetofcontentthatshouldhavealreadybeendiscussedinclassandsothepriorknowledgeshouldbeabletobeactivatedquitereadily.Thereisthenanopeningactivitywherethestudentsinclasshaveseveralopportunitiestominefor“ore”bykinestheticallymovingaroundclassandcollectingobjectsofdifferentcolorsthatrepresentvariousoregradeswithcertainconcentrationfactors.Classbeginsthen,byillustratingtheLawofDiminishingReturnsinmineralmining.Thesecondstageofthelessonhasseveralparts.Studentswillexplorethesupplychainofcopperproduction,fromexplorationtorawmaterial.Theywillalsoconductsomesimplemathematicalcalculationsrelatedtotheamountofcoppernecessarytowireanewhousewhich,lateron,theywillreturntoinordertoexplorehowthecostofwiringthishousehaschangedovertime,usingUSGShistoricalcopperpricedataforthelasttenyears.Studentswillalsoexplorecurrentcommoditypricesandhowtheyarepresentlyand
historicallyaffecteddirectlybychangesinsupply,demand,internationalevents,naturaldisasters,andsoon.Again,USGSmineralcommoditydataisusedforthis.Studentsarethusbeingexposedtorealdatausedbyeconomists,miningcompanies,andinvestorswhenmakingdecisionsrelatedtothesecommodities.Thelessoncontinueswiththeteachingtakingtimetoexplainthegeologicalandeconomicprinciplesinsomeformofdirectinstruction.Theformofinstructionisleftuptotheteacherasthedecisionforhowbesttodothiswilldependuponthemakeupofagivenclassandtheacademicbackgroundandabilityofthestudents.Oneinterestingoptionavailabletotheteacherisusingacasestudyofcopperproductionbyexploringtheconceptof“PeakCopper”withthestudentsandthushittingontheimportantgeologicalandeconomicconceptswithinthatcontext.ThelessonendsinPhaseIVwithstudentsreturningtotheircoloredobjectminingdatafromthefirstpartoftheclass.Theywillbegivenmoredataabouttheorethattheyminedandthencalculatetheprofitofthosemines,focusingonlyonthetwocolorsofobjectsthathadthehighestconcentrationfactor,asthelowertwoconcentrationsfactorsareessentiallyunminableataprofit.Assessmentisdonethroughouttheactivityandopportunitiesforsucharelistedbelow.Apre/postquizisalsogivenasawayofquantifyingchangesinstudentunderstandingandknowledgegained.Higherlevelsynthesisorotherlevelsofexplorationarebetterassessedwiththemoreauthenticmethodsprovidedbelow.III.EconomicContentAreaandKeyObjectivesEconomicObjectivesEconomicsandPersonalFinance:EPF.1Thestudentwilldemonstrateknowledgeofbasiceconomicconceptsandstructuresbya)describinghowconsumers,businesses,andgovernmentdecisionmakersfacescarcityofresourcesandmustmaketradeoffsandincuropportunitycosts;b)explainingthatchoicesoftenhavelongtermunintendedconsequences;c)describinghoweffectivedecisionmakingrequirescomparingtheadditionalcosts(marginalcosts)andadditionalbenefits(marginalbenefits);d)identifyingfactorsofproduction;EPF.2Thestudentwilldemonstrateknowledgeoftheroleofproducersandconsumersinamarketeconomybyb)explaininghowbusinessesrespondtoconsumersovereignty;c)identifyingtheroleofentrepreneurs;d)comparingthecostsandbenefitsofdifferentformsofbusinessorganization,includingsoleproprietorship,partnership,corporation,franchise,andcooperative;e)describinghowcostsandrevenuesaffectprofitandsupply;f)describinghowincreasedproductivityaffectscostsofproductionandstandardofliving;IV.OtherObjectivesAncillarytotheEconomicObjectivesOtherObjectives:Algebra: A.9Thestudent,givenasetofdata,willinterpretvariationinrealworldcontexts.A.10Thestudentwillcompareandcontrastmultipleunivariatedatasets.A.11Thestudentwillcollectandanalyzedata,determinetheequationofthecurveofbestfitinordertomakepredictions,andsolverealworldproblems,usingmathematicalmodels.Mathematicalmodelswillincludelinearandquadraticfunctions.1
EarthScience:ES.1Thestudentwillplanandconductinvestigationsinwhicha)volume,area,mass,elapsedtime,direction,temperature,pressure,distance,density,andchangesinelevation/deptharecalculatedutilizingthemostappropriatetools;b)technologies,includingcomputers,probeware,andgeospatialtechnologies,areusedtocollect,analyze,andreportdataandtodemonstrateconceptsandsimulateexperimentalconditions;c)scales,diagrams,charts,graphs,tables,imagery,models,andprofilesareconstructedandinterpreted;d)mapsandglobesarereadandinterpreted,includinglocationbylatitudeandlongitude;e)variablesaremanipulatedwithrepeatedtrials;andf)currentapplicationsareusedtoreinforceEarthscienceconcepts.ES.2Thestudentwilldemonstrateanunderstandingofthenatureofscienceandscientificreasoningandlogic.Keyconceptsincludea)scienceexplainsandpredictstheinteractionsanddynamicsofcomplexEarthsystems;b)evidenceisrequiredtoevaluatehypothesesandexplanations;c)observationandlogicareessentialforreachingaconclusion;andd)evidenceisevaluatedforscientifictheories.ES.4Thestudentwillinvestigateandunderstandhowtoidentifymajorrockformingandoremineralsbasedonphysicalandchemicalproperties.Keyconceptsincludea)hardness,colorandstreak,luster,cleavage,fracture,anduniqueproperties;andb)usesofminerals.ES.5Thestudentwillinvestigateandunderstandtherockcycleasitrelatestotheoriginandtransformationofrocktypesandhowtoidentifycommonrocktypesbasedonmineralcompositionandtextures.Keyconceptsincludea)igneousrocks;b)sedimentaryrocks;andc)metamorphicrocks.ES.6Thestudentwillinvestigateandunderstandthedifferencesbetweenrenewableandnonrenewableresources.Keyconceptsincludea)fossilfuels,minerals,rocks,water,andvegetation;c)resourcesfoundinVirginia;andd)environmentalcostsandbenefits.ES.7Thestudentwillinvestigateandunderstandgeologicprocessesincludingplatetectonics.Keyconceptsincludea)geologicprocessesandtheirresultingfeatures;andb)tectonicprocesses.Chemistry: CH.1Thestudentwillinvestigateandunderstandthatexperimentsinwhichvariablesaremeasured,analyzed,andevaluatedproduceobservationsandverifiabledata.Keyconceptsincludea)designatedlaboratorytechniques;b)safeuseofchemicalsandequipment;g)mathematicalmanipulationsincludingSIunits,scientificnotation,linearequations,graphing,ratioandproportion,significantdigits,anddimensionalanalysis;h)useofappropriatetechnologyincludingcomputers,graphingcalculators,andprobeware,forgatheringdata,communicatingresults,andusingsimulationstomodelconcepts;i)constructionanddefenseofascientificviewpoint;andj)theuseofcurrentapplicationstoreinforcechemistryconcepts.2
CH.3Thestudentwillinvestigateandunderstandhowconservationofenergyandmatterisexpressedinchemicalformulasandbalancedequations.Keyconceptsincludea)nomenclature;b)balancingchemicalequations;c)writingchemicalformulas;d)bondingtypes;e)reactiontypes;andf)reactionrates,kinetics,andequilibrium. 3
V.InstructionalProcessMaterialsAsmallpileofscrapcopperobjects(optional)Images,atleastwhatisincludedinappendices,forpresentationAccesstoprojectionandacomputerInternetAccessLittlecoloredsquaresofconstructionpaperorothercoloredobjects,insomequantitysimilartowhatisdiscussedinPhaseOnebelow.Worksheetsandcommodityhandoutscopied(or,ideallyeachstudentwouldhaveacomputerandjustbeprovidedwithlinkstothesedocuments)ProcedurePhaseOne:EngagetheLearnerBeginclassbyhaving,ifpossible,apileofscrapcopperitems.Thesecouldbeinsulatedwires(notconnectedtoanything),oldelectronics,waterpipes,etc.Thesepropswillelicitcuriosityandcanbereferredto,attheend,asasourceforrawcopper.Studentsmayaskquestions,butbevague.Whiletheyassembleandconducttheirbellwork,youcanbeweighingtheitemsandjottingtheweightsofobjectsontheboard.Whentheyhavefinishedtheirbellwork,thenbeginwiththeactivitybelow.Considerendingclassbylookingupthecurrentpriceofcopperscraphereandfiguringouthowvaluableyourpileis!Checkthiswebsiteaheadoftimeforthevariouscategories.OpeningActivity:Useifyouwishtobeginwithamoreactiveclassroomandifyouwishtofocusmorecloselyonthe“LawofDiminishingReturns”inherentinmineralresources.Thisopeningactivitywillfocusonthe“ConcentrationFactor”(CF),ortheconcentrationofcopperinanorenecessary,overtheaveragecrustalabundanceofcopper,forcopper(oranyothermineralcommodity)tobeeconomicallyrecovered.1) Mostcopperdepositsare“porphyrydeposits”thatoccurinassociationwithironoxides,silver,gold,andothertracemetalsin“IOCG(IronOxideCopperGold)”deposits.Typically,theseoccurinigneoussituationswherehydrothermalwatersriseupfromaroundamagmachamberandleaveconcentratedoreintherocksurroundingthevolcanicneck.Theseorebodiesaretypicallyporphyriticintheirigneoustexture,whichisemblematicofthemagmaundergoingatwophasecoolingprocess.Thecoolingwasslowatfirst,formingthephenocrysts(largecrystals)oftheporphyryandthenwasveryrapid,formingthefinegrainedgroundmass.Seethisimageforreference.Itwouldbegoodtohavethisimageprojectedontheboardasyoumoveintotheactualopeningactivity.Ifabellworkactivityisneeded,thiswouldprovidegreatimageryforactivationpriorlearningfocusedonvolcanismorigneousrocks.2) Theeasiesttoreachcopperoredepositsareaccessedfirst,intherealworld,andversionsofthesewithhighCFvaluesareratherrare.Thecrustalabundanceofcopperis0.0058%andsoaCFof100200(minableconcentrationsofatleast0.58%oreand99.42%gangue)Usingfourdifferentcolorsofconstructionpaper,cutsmallsquares,perhaps1”,inthefollowingquantities:a) Orange:25(CF=200)b) Red:50(CF=100)c) Green:100(CF=50)d) Yellow:200(CF=25)e) Theorangeandredsquaresrepresentminableoredepositswhiletheyellowandgreensquaresrepresentnoneconomicallyviabledeposits.f) Beadsorsomeobjectsofothercolorscanbeused.4
3) Beforeclassbegins,distributethepapersquaresthroughouttheroom.Also,keepyourroomingoodordersothat,whenstudentsmovearoundtoseekouttheirore,theyinadvertentlymovedesksandsuch.Youcandiscusstheseactsofphysicaldisruptionintheclassroomasenvironmentaldegradationfrommining.4) Afterbellwork,havethemworkindividuallytocollectasmuch“ore”astheycan.However,youmustgivethemtimelimits.Unleashthemasfollows:a) Stage1:15secondsb) Stage2:15secondsc) Stage3:15secondsd) Note:Keepingthetimelimitthesameisimportantbecauseyouwanttousethetimetoillustrateeffort.5) Aftereachstage,studentsshouldbegivenafewmomentstocompletelysitdown,recordtheirorecollections,andreadythemselvesforthenextstage.6) Havestudentstabulatetheirdataingraphicalform.7) Createasetofclassgraphsillustratingthe“oregrades”collectedbystages.Usethis,ifyouwish.8) Itshouldbeclearthatmostofthevaluableore(CF=200)wasfoundearlyonandmostoftheotheroregradeswerealsofoundearlyon.Bringthediscussionherebacktothecrosssectionofthevolcanobeingprojected.Discuss,asaclass,wherethemostandleastconcentratedorebodiesmightbefoundandwhy.9) Discusshowthisentireactivityillustrateddiminishingreturns.Studentsshoulddiscusshow,forthesameamountofeffortovertime,theyrecoveredfewerandfeweroredeposits.10) Discusstheenvironmentaldegradationcausedbytheproductionoftheore(themovementofdesks,etc.intheflurryofactivity)andthenimplementaquick“reclamationplan”byhavingthemfixtheroom.PhaseTwo:ExploretheConceptPhaseIIa:ConcentrationFactorandOreGradeExtension1) Whatmakesan“ore”,ormineralcommodity,extractableataprofit?Italldependsuponthe“concentrationfactor”,whichisobtainedbydividingthe“MinableGrade”inweightpercent,ororegradewheretheoreisprofitable,bytheaveragecrustalelementalabundanceinweightpercent.Studentsshouldcalculatetheconcentrationfactorsofsomecommonoresinordertofirstdrawsomeconclusionsaboutwhichoresaremorevaluable.a) Passoutthisworksheet.Somecommodities(commodities=elementsinthisexercise)aremorevaluablethanothers.Tobeeconomical,oredepositsmustcontainsufficientamountofthecommodityofinteresttomakeminingprofitable.HavestudentscompletethetablebydividingthenumbersA/Bfortheconcentrationfactor.Then,havethemanswerthequestionsbelowandontheirworksheet.i) Question:Tobeconsideredamineralcommodity,anorebodyhastoreachanoreconcentrationofatleasttheconcentrationfactor(CF).Howdoescoppercomparetoothercommonlyminedmineralresources?ii) Question:Howdoestheconcentrationfactorlikelyrelatedtothecostsofproductionofthatore?Thinkabouttheamountofwastedrock(gangue)versusoreintheearlystagesofproduction.Howmighttheconcentrationfactoraffectthedecisiontomineunderground(moreexpensiveprocess)ratherthanonthesurface(lessexpensiveprocess)?iii) Question:Whyaresomemineralcommoditiesinherentlymorevaluedthanothers,evenpriortothestartofanymining?Whatroledoesdemandplayintheirvalue?PhaseIIb:OreandGangue2) Allowthestudentsabout10minutestoexplorethemathconnectionbelow.Then,discussitasagroup.TheanswerwillleadintoPartIIofPhaseIIbelow.5
a) Posethefollowingquestiontothegroup:“Supposethatyouarebuildinganewhouse.Itwilltakeabout90kg(198pounds)ofcoppertodotheelectricalwiring.Inordertogetthecopperinthefirstplace,someoneneedstominesolidrockthatcontainscopper,extractthecopperminerals,throwawaythewasterock,andsmeltthecoppermineralstoproducecoppermetal.Rocksminedforcoppertypicallycontainonlyverysmallpercentagesofcopper—about0.7%inthecaseofmostofthebigporphyrycopperdepositsoftheworld.Howmuchrockwouldsomeonehavetomineinordertoextractenoughcoppertowireyournewhouse?”b) Hereistheanswer:“Ablockweighingabout12,860kg(almost28,300pounds,orover14tons)!!Thecopperoreformsonly0.7%oftherock.Weneedtofindanumberthatwecanmultiplyby.007toget90kg.Dividing90kgby.007willgiveusthatnumber—approximately12,860kg.Multiplyingthatnumberby2.2pounds/kgwouldgiveusthenumberofpounds(about28,300pounds).Dividingby2000pounds/tonwouldgiveusthenumberoftons(morethan14tons).Rememberthat,ofthe12,860kgmined,12,770kgwerethrownawaytogetyour90kgofcopper...Now,thinkaboutthenumberofpeopleonyourstreet.Howmuchrockwouldhavehadtobeminedinordertowireallthehousesonyourstreet?Howmuchrockwasthrownaway?”c) Discusstheproblemandanswerasaclass.Thisproblemisessentiallyfocusedontheamountof“ore”and“gangue”forwhichthishome’sconstructionisresponsible.PhaseIIc:Copper,Copper,Everywhere!3) Afterthedemonstrationabove,itistimetomakeaconnectionwiththeuseofcopper,asananalogforothermineralcommodities,intheeverydaylifeofthestudents.Beginwiththisvideo.Whilewatching,havestudents:I.Createtheirownindividualflowchartsfortheproductionofcopper,andII.Createalistof“things”theyusedailythatmakeuseofthiscopper.Feelfreetopausethevideoasnecessary.Afterthevideo,andafterstudentsseemfinished,discusstheirresultinginformationfromIandIIaboveasagroup.Thereisagreatdealofinformationhere,butitwouldbeexcellenttodiscusseconomicconceptssuchas:a) Whatisa“commodity”?b) Wherearemineralcommodities,likecopper,boughtandsold?c) Howdoes“demand”foracommodityleadtoitsproduction?d) Howpricesareaffectedbythisdemandaswellasotherfactorssuchastheefficientmanagementofthe“productionsupplychain”asawhole?e) Howmightthe“scaleofproduction”affecttheultimatecostofproductionforsmallscaleproducersversuslargescaleproducers?f) Whatis“oreconcentration”andwhymightitbeimportant?g) Howmightglobal“supply”andoverall“production”affectpricesonthecommoditymarkets?h) Donotexpecttodomorethanintroducethediscussionofthesecomplexideashere.Wewillrevisitthesequestionsattheendofthelesson.PhaseIId:CopperontheCommodityMarket4) Studentsnowhaveagoodimageofhowcoppergoesfromraworetovariousproducts.UsingrealtimecurrentandhistoricalcommoditypricesalongwithUSGSfactsheets,youwillnowseparatestudentsintosmallgroupsoftwo,presentthemwithdata,andhavethemcomeupwithexplanationsforwhattheyseeinthegraph.a) Haveread,andpassouttoeachpairofstudents,adownloadedversionofthegraphforhistoriccopperpricesasfoundatthiswebsite.Youcouldalsoprojectthisgraphforthewholeclass.b) HavereadyUSGSDatasheetsfortheyears2005,2008,and2015.Donotpassthemoutuntiltheappointedtimebelow.c) Studentsshouldfirstanalyzethecommoditypricegraphprovidedaboveandidentifyapparenttrendsinhistoriccopperprices.Givethemafewminutestodothisandbesureto6
havethemspeculateonwhataspectsoftheentirecopperproductionprocess(fromdemandthroughfabricationofmaterials)mightbeaffectinganyobservedtrendsovertime.d) PassouttheUSGSdatasheetsfortheabovementionedyears.Givestudents1520minutestoexplorethesesheets.Thereisagreatdealofinformationhere,butiftheyseemlost,directthemtothesectionsthatdealwith“Events,Trends,andIssues”.Fromthere,theotherdatamaybegintomakegoodsense.PhaseIIe:YourHomeandCopperCommodityPriceFluctuations5) ClassDiscussion:Itisnowtimetoconnectthat90kgofcoppertoeconomics.Havestudentsexplorehowthecalculatedcopperintheirhomesmighthaveaffectedthepriceoftheirelectricaland/orplumbinginstallationsduringthefollowingtimeperiods.Dothecalculationsasaclass,buthavethemrecordthefinalcostsforthehomediscussedinPartIIbfortheyearsexaminedaboveinPartIId:2004,2007,andcurrentpricesfor2015.Forreference,1kg=2.2lbs.a) Besuretostresstothemthatthepricestheyarecalculatingarepricespaidbythoseindustrieswhoproducewire,electronics,pipes,etc.Therefore,thesecalculatedpricesareonlyusefulasananalogfortheactualpriceofthematerialsusedintheirhomes.b) Oncetheproducersobtainrawingots/cathodes,thereareadditionalcostsaddedinbeforethecoppereverreachestheenduser/consumer/homeowner.Brainstormwhatthosemightbeasaclass.c) Theclassshouldcomeupwithsomethingthatlookslikethis:i) Copperingotsobtainedbyindustryii) Industrymeltscopper,metallurgicallyaltersitifnecessary,andformsitintoitsfinalproduct.iii) Industrysellsthisproductwithembeddedprofitmargin.iv) Distributorspurchasetheseproductsfromindustryandsellthem,atprofit,toretailoutletsandsupplyhouses.v) Installersandhomeownerspurchasecopperorcoppercontainingproductsfromretailoutletswhoalsomakeaprofitonthissale.vi) Ifthehomeownerhiresaninstaller,theinstalleralsochargesforlaborandotherexpenses.vii) Endwiththisexplorationasaclass.(1) 122wireisacommonlyusedgroundedRomexusedtowireoutletsandmostother110velectricalappliancesinhomes.Currently,122electricalwireatLowesis$60fora250ftroll.Howmuchisafootofwire?($0.24/ft)(2) Thereisabout1lbofcopperin20ftof122wire.Howmuchcopperistherein1ftofthiswire?(0.05lb/ft)(3) AssumingthatONLY122wireisusedintheconstructioninPartI,howmanyfeetofthiswireisnecessaryif90kg(198.4lb)ofcopperareused?(3,968.2ft)(4) Howmuchwillthiswirethencostthehomeowner?($952.37)(5) Howdoesthiscostcomparewiththecurrentrawpriceforthatcopperonthecommoditymarket(Usethistableforthatprice)?(asofMay10,2015,90kgofcopperwouldcost$575.59atthecurrentpriceof$2.901/lb)(6) Thislastanswerwillvary,dependinguponwhenthisinvestigationiscompleted.Whatpercentageofthewholecosttothehomeownerforthewireisrolledup(punintended!)intothecostofthatwire?(($575.59/$952.37)*100)=60.44%(7) Copperisexpensivetoproduce!7
PhaseThree:ExplaintheConceptandDefinetheTerms1) Atthispoint,mostofthenecessarycontenthasbeenexploredbystudents.Theteachercanchooseto“Explain”theseconceptsfromPhaseIIandcontainedinthedefinitionsbelowinavarietyofways.Beginwiththegeology.Somegoodexamplesofdiagramsandimagesthatshouldformthecoreofanyexplanationsregardingthegeologyarecontainedinthisdocument.Someotherexamplesfollow:a) CaseStudyTheclasscanreadanarticleon“TheComingCopperPeak”(includedhere).Studentscanbedividedintosmallgroupsandgivenseveralofthedefinitionsbelowtoexploreandexplaininthecontextofthecasestudy/article.MoreComplex,moreeffective2) Herearesomeoftheimportanttermsusedhereinandtheirdefinitionsrelativetoeconomicgeology:a) CommodityArawmaterialorprimaryagriculturalproductthatcanbeboughtandsold,suchascopperorcoffee.b) DemandCurveAgraphdepictingtherelationshipbetweenaseriesofpricesofacertaincommodityandtheamountofitthatconsumersarewillingandabletopurchaseatthatgivenprice.c) SupplyCurveAgraphdepictedtherelationshipbetweenaseriesofpricesofacertaincommodityandtheamountofitavailableforproduction.d) TheFourBasicLawsofSupplyandDemand(Referencegraph):i) Ifdemandincreases(demandcurveshiftstotheright)andsupplyremainsunchanged,ashortageoccurs,leadingtoahigherequilibriumprice.ii) Ifdemanddecreases(demandcurveshiftstotheleft)andsupplyremainsunchanged,asurplusoccurs,leadingtoalowerequilibriumprice.iii) Ifdemandremainsunchangedandsupplyincreases(supplycurveshiftstotheright),asurplusoccurs,leadingtoalowerequilibriumprice.iv) Ifdemandremainsunchangedandsupplydecreases(supplycurveshiftstotheleft),ashortageoccurs,leadingtoahigherequilibriumprice.e) ProductionAprocessofcombiningvariousmaterialinputsandimmaterialinputs(plans,knowhow)inordertomakesomethingforconsumption(theoutput).f) SupplyChainIsasystemoforganizations,people,activities,information,andresourcesinvolvedinmovingaproductorservicefromsuppliertocustomer.g) ScaleofProductionAmeasureoftheamountofproductionpossiblerelativetotheamountofinvestmentavailable.h) EconomiesofScalethecostadvantagesthatenterprisesobtainduetosize,output,orscaleofoperation,withcostperunitofoutputgenerallydecreasingwithincreasingscaleasfixedcostsarespreadoutovermoreunitsofoutput.i) OreConcentrationQuantityofminableoreinweightpercentdividedbytheaveragecrustalabundanceinweightpercent.Theresultantfactoristheconcentrationmultipliernecessaryforanoretobeeconomicallyviableasaminableresource.j) OrebodyThebodyofrockthatcontainsanore.k) OreAtypeofrockthatcontainssufficientmineralswithimportantelementsincludingmetalsthatcanbeeconomicallyextractedfromtherock3) Leadtheclassdiscussionaftergivingstudentsabout30minutestoreadanddiscussthearticle.ThearticleCANbegiventothemaheadoftime,forhomework,priortothislessonORgiventostudentsbetweenclassperiodsintheeventthatthislessonextendstotwofull90minuteperiods.PhaseFour:ElaborateontheConcept1) After“PhaseThree”,returntotheopeningactivity.Studentsshouldstillhavetheirdatatablesfromthesquaresthattheycollected.Hereiswhattheinitialnumberswere:a) Orange:25(CF=200)(OreConcentration=1.16%)b) Red:50(CF=100)(OreConcentration=0.58%)8
c) Green:100(CF=50)(OreConcentration=0.29%)d) Yellow:200(CF=25)(OreConcentration=0.16%)e) Now,wewillassignavaluetoeachofthese“ores”.First,havestudentscalculatethe“oreconcentration”ofeachoreabove.Theanswersarelistedabovefortheteacher.Thisistheconcentrationoftheactualore.f) Havestudentsdisregardanyoftheirgreenandyellowsquaresfornow.Undercurrentmarketconditions,explain,thesearenotminable.g) Theorangesitescontains55,000tonsofore,minableatacostof$30/tonwithareclamationplanthatwillcost$600,000.Theredsitescontain55,000tonsorore,minableatacostof$20/tonandwitha$350,000reclamationplan.h) HavestudentsfillinthesectionoftheworksheetforPhase4.Theyneedtocalculatetheprofitmarginforeachoftheseores.i) Discusswhichisthebesttomineandwhy?Whatotherfactorsarenecessarytoconsider?2) Thiswouldbeanexcellenttimetoreturntothepileofscrapcopperinthefrontoftheclassroom.Asaclass,usecurrentcopperscrappricestodeterminehowvaluablethepileis.Studentscan“mine”copperawayfromclassbutdoremindthemthattheywouldneedtodosolegally.3) Atthisstage,theinitiallessonisover.However,theconceptscontainedhereincaneasilybeextended,ideally,toothermineralcommodities.Somesuggestionsforfurtherstudentsresearch,asgroupsorasindividuals,areprovidedbelow.a) Canwedescribethe20142015dropinoilpricesusingsomeoftheconceptshere?b) Howhashydraulicfracturingfornaturalgasaffectednaturalgasprices?c) TheBowerCampbellzincMineislocatedinTimberville,VAandcontainsanorebodythathasaminableconcentrationof0.15weightpercent.Discussthevalueandpotentialofreopeningthismine(productionceasedin1962,justafterthegovernmentendedzincstockpiling).Seethisdocumentforreference.4) ConsiderdoingachemicaldemonstrationofCopperOreextractionfromthecarbonatehostedmalachitedeposits.a) Preparebystudyingthewebsitesatthetwolinksbelowwellbeforeclass.Youwillengagethestudentsbyconductingasimplechemicaldemonstrationofcopperextraction.b) Setupthecopperextractiondemonstrationusingtheequipmentandprocedurelistedatthiswebsite.Asampleofmalachitewillneedtobecrushed,somereallybasiclabapparatusassembled(alongwithrequisitelabsafetyequipment),andaquantityof1Msulfuricacidavailableforuse.AllStudentsshouldbespectatorsonlyasthisdemonstrationmay,ormaynot,beconductedwithinachemistrylab.c) Beginthedemonstrationbyjustdescribingwhatyouaredoinginverybasicterms.Thereactionisasfollows:Cu(OH)2+H2SO4>2H2O+CuSO4d) Additionalbackgroundonthisandhowthemetalsindustryusesthisprocessforcopperextractionfromsulfatemineralscanbefoundatthiswebsitealso.e) Makeobservations,discusstheequationabove,butleaveopenendsforexploration.PhaseFive:Evaluatestudents'UnderstandingoftheConceptBelowaresourcesofevaluationforstudentunderstanding:1) PhaseII,PartISuccessfulcompletionofmathproblemanddiscussion2) PhaseII,PartIIFlowchartofcopperproduction3) PhaseII,PartsIIIIVParticipationinclassdiscussion4) PhaseIIIArticlepresentations5) Copperworksheetanswers6) Quiz(teachercreatedpre/postquiz)9
10
VI.EvaluationClosureClassshouldclose,ifpossible,bycalculatingthevalueofthescrappileprovidedbytheteacher.Manyofthesegeologicalandeconomicconceptscanbereexaminedhereas“mining”scrapdoesnothavenearlythesupplychainthatminingorehasandsothemarketforcesarealittledifferent.UsecanagainbemadeoftheUSGShandoutsbecausescrappingisdiscussedonthoseasimportantsourcesofcopper.Whentestedwithclasses,thislessonhadaverypositiveoutcome.WhileitmaybenecessarytopickandchoosealittlewhenitcomestotheactivitiesinPhaseII,intheinterestoftime,studentsingrades1012beginwithsuchadeficitofeconomicunderstandingthatthereispotentialformassivegains.Intheclassesinwhichthislessonwastested,usingtheformalevaluationincludedintheappendix,therewasa72%increaseinstudents’understandingsofthebasiceconomicsassociatedwithmineralcommoditiesfromstarttofinish.Ingeneral,thesetopicsarenotdiscussedinregularclasses,despitetheirimportanceineverydaylife,sothislessonhasgreatpotentialfordramaticallyimprovingfutureworkers’understandingsofmaterials,theiracquisition,thegeologyinvolved,andtheeconomicsthatmoveallofit.AssessmentPhaseVfocusesonassessment.Thevarietyofmethodsabove,aswellasanyothers,areuptotheteacher’sdiscretionaseveryclassisunique,hasdifferentbackgrounds,anddifferentneeds.AvarietyofauthenticandtraditionaloptionsarepresentedinPhaseVabove. 11
AppendixImportantLinksSomeeconomicgeologybackgroundoncopperore:CopperInvestingNews“WorldClassCopperDeposits”TulaneUniversity“MineralResources”Linkstoothergoodeconomicandmininggeologylessons:DiscoverEducationCopperMiningLessonCaterpillar“GroundRules”Lessons 12
UsefulImagesRichards,JeremyP.andA.HamidMumin,2013.MagmatichydrothermalprocesseswithinanevolvingEarth:IronoxidecoppergoldandporphyryCu±Mo±Audeposits.Geology,July2013,v.41,p.767770.Changesinoregradeovertime.Thisisagoodillustrationofdiminishingreturnsthroughthe1970s.Improvedmethodsofextractingdifficultorehaveledtoasurgeinavailableoreofahighergradethatwasnotminableinearlierdecades.From:http://www.tulane.edu/~sanelson/eens1110/minresources.htm13
Formationofcopperporphyryresourcesthroughgeologictime.From:http://econgeol.geoscienceworld.org/content/105/3/641/F1.large.jpgIOCGcopperporphyryexample.Notethecombinationofafinegrainedmatrixwithlargerphenocrystsinthecenterofthesampledepictedintheimageabove.From:http://upload.wikimedia.org/wikipedia/commons/7/7f/Prominent_hill_ore_cpy.jpg 14
ConcentratingonCopper:AnExplorationofMineralCommoditiesPhaseIIa:Explorationofsomeofthemajoreconomicfactorsrelatedtocoppermining.Somecommodities(commodities=elementsinthisexercise)aremorevaluablethanothers.Tobeeconomical,oredepositsmustcontainsufficientamountofthecommodityofinteresttomakeminingprofitable.“Mineablewt%,”whichgeologistscallminablegrade,valuesaregiveninthetablebelow.Usethedatatocalculatetheconcentrationfactorforeachcommodity.(Concentrationfactoristheamountitmustbeenrichedovernormalcrustalabundancetobeeconomicallyminable.)ABB/AOreMetalCrustalWt%MinableOreGrade(wt%)ConcentrationFactor(CF)AluminumAl8.028.0IronFe5.840.0CopperCu0.00580.52NickelNi0.00721.08ZincZn0.00822.46UraniumU0.000160.19LeadPb0.000100.20GoldAu0.00000020.0008MercuryHg0.0000020.2TinSn0.00020.51) Tobeconsideredamineralcommodity,anorebodyhastoreachanoreconcentrationofatleasttheconcentrationfactor(CF).Howdoescoppercomparetoothercommonlyminedmineralresources?2) Howdoestheconcentrationfactorlikelyrelatedtothecostsofproductionofthatore?Thinkabouttheamountofwastedrock(gangue)versusoreintheearlystagesofproduction.Howmighttheconcentrationfactoraffectthedecisiontomineunderground(moreexpensiveprocess)ratherthanonthesurface(lessexpensiveprocess)?3) Whyaresomemineralcommoditiesinherentlymorepreciousthanothers,evenpriortoanyminingevenbeginning?15
PhaseIIb:Havestudentsexploretheconceptsof“ore”and“gangue”usingthefollowingproblemofbuildingahome.“Supposethatyouarebuildinganewhouse.Itwilltakeabout90kg(198pounds)ofcoppertodotheelectricalwiring.Inordertogetthecopperinthefirstplace,someoneneedstominesolidrockthatcontainscopper,extractthecopperminerals,throwawaythewasterock,andsmeltthecoppermineralstoproducecoppermetal.Rocksminedforcoppertypicallycontainonlyverysmallpercentagesofcopper—about0.7%inthecaseofmostofthebigporphyrycopperdepositsoftheworld.Howmuchrockwouldsomeonehavetomineinordertoextractenoughcoppertowireyournewhouse?”ShowYourWork!Question:Muchofthis“gangue”rockcontainssmallamountsofothermetalsaswellaselementsthatareenvironmentallydangerous,suchasmercury.Whyisitimportantthatitisdumpedorprocessedproperly?PhaseIIc:Diagramyourflowchartforthecopperproductionsupplychainbelowasyouwatchthevideowiththeclass.Listssomethingsthatyouusedailythatcontaincopper:Question:Asanenduserofcopperinthemodernworld,whataresomethingsforwhichyoumighthavetolearntodowithoutifcopperreservesweretorunout?16
PhaseIId:Thepriceofcopperchangesduetochangesindemand,supply,naturaldisasters,andmanyotherfactors.Howhavecopperpricesbehavedhistoricallyandwhatisthefutureofcopperglobally?Listsomepossibleexplanationsforthelongtermfluctuationsyouseeinthepriceofcopper.Whendidsomeofthekeyeventsoccurandwhathappenedtotheprice?AnalyzethedatafortheUSGSMineralCommoditySummariesfortheyearsbelowanddescribeforeachwhatwashappeningintheworldtoaffectthepricesduringthoseyears:2004:Costtowirehomeinthisyear:$________(PartIIe,classdiscussion)2007:Costtowirehomeinthisyear:$________(PartIIe,classdiscussion)2014:Costtowirehomeinthisyear:$________(PartIIe,classdiscussion) 17
PhaseIII:Takenotesinyournotebookonwhattheteacherhastosayregardingthefollowingimportantterms.1) LawofDiminishingReturns2) Commodity3) DemandCurve4) SupplyCurve5) TheFourBasicLawsofSupplyandDemand:a) b) c) d) 6) Production7) SupplyChain8) ScaleofProduction9) EconomiesofScale10) AverageCrustalOreConcentration11) MineableConcentration12) ConcentrationFactor13) ProfitMargin14) EnvironmentalReclamation15) Gangue16) Orebody17) Ore 18
PhaseIV:Calculatetheprofitpossibleineachminingscenariobaseduponcurrentprices.OreCFTonsofOreTonsofCopperPoundsofCopperValueofCopperCostofMining/TonofCopperTotalCostofMiningOreEnv.ProtectionCostsProfitOrange55,000$30$600,000Red55,000$20$350,000Question:Istheconcentrationofanoretheonlyconsiderationwhenchoosingwhethertomineitornot? 19
MineralCommodityLessonPre/PostQuizDirections:Answerthefollowingquestionshonestlybefore,andafter,thelesson.Aftermarkingyouranswerbefore,youwillturnitin,anditwillbereturnedtoyouforcompletionafterward.1) Amineralcommodityisanymineralresourcethatcanbepurchasedonthemarket.Before: After:TorF TorF2) Inanorebody,the“gangue”isthewasterockthatdoesnotcontainanyusefulore.Before: After:TorF TorF3) Pricesforcommodities,likecopper,arecontrolledprimarilybydemand,notsupply.Before: After:TorF TorF4) Asminingcontinuesovertime,theindustryexperiencesdiminishingreturns,whichaffectprices.Before: After:TorF TorF5) Themarketpricesofrawmaterialsdonotaffectthecostofproductspurchasedbyhomeowners,butareabsorbedbyvariousotherstepsinthesupplychain.Before: After:TorF TorF6) Thereisarobustmarketformineralcommoditiesintheformofscrap.Before: After:TorF TorF7) Theconcentrationfactornecessaryforprofitableminingisthesameregardlessofthecommodityinquestion.Before: After:TorF TorF20