Copper Mining

Hi Nathalie, A couple of questions and then some thoughts. There seems to be confusion in how you have only Employment numbers but then also have Industry Sales. Also we apologize, but we are not completely clear about how you are describing the Employment numbers and the Sectors based on your response below. Are the 250-270 jobs all operational workers at the mine, or are they a mix of jobs associated to construction and operations of the mine? This is an important distinction to make in order to ensure that you analysis is setup correctly. 1. In regards to the number of workers: a. you would be double counting if you ran two separate Industry Change Activities, 1 for your Industry Sales and the 2nd for the workers. If this is what you mean our recommendation would be to enter first your Industry Sales, then to edit the Employment number to match your Employment: http://implan.com/index.php?option=com_content&view=article&layout=edit&id=114. b. Alternatively if you concerned about using Industry Sales across multiple years for operations, you are correct that if you summed the operational Employment is double-counting, because the same 250-270 jobs are present each year, but they do not sum across years of operations. If jobs are added over time in the operational component it's typically best to report these separately. c. If you are concerned about double-counting because you used jobs to create the Industry in the Study Area Data, you don't need to worry about double-counting here, because the underlying data is not affected nor "taken into account" in the analysis for anything other than establishing the current Industry relationships upon which the Event impacts are estimated. As regards construction, operations and reclamation as well as Capital Expenditures these are not included in the operational spending pattern for Sector 23 and all these values need to be modeled separately. You can view what is included in the operational spending pattern in the Explore> Social Accounts> Balance Sheet (Tab), and select View By: Industry Balance Sheet and the Commodity Demand tab. Each of these would need to be assigned to its own respective Sector. If by mining equipment you are referring to Capital Expenditures, they are not included in the spending pattern as the spending pattern reflects annually reoccurring expenditures (like maintenance and repair of equipment) but not one-time or like durable Capital Expenditures which may be replace only every 2-10 years. So you should pull any of these values out from your impact and model that separately: http://implan.com/index.php?option=com_content&view=article&id=468 Please note that there can be a lot of caveats to modeling these types of expenditures. 2. You would not want to select sector 23 for the mining of copper as you would for the construction phase. Sector 23 is for the Operations of the mine. For your construction phase, I recommend using sector 36 (Construction of other new non-residential structures). However this is a broad Sector so if you have enough knowledge of the Industry you might consider editing your spending pattern for commodities that would not be associated to mining construction. This advanced Analysis is Analysis By Parts: https://implan.com/index.php?option=com_content&view=article&id=373 AND https://implan.com/index.php?option=com_content&view=article&id=730:case-study-analysis-by-parts&catid=264:KB43. When reporting Employment construction numbers, it needs to be approached with caution. Employment is reported as a head count, which is a roll up of full time, part time and seasonal workers. Also, construction projects are more typically supported positions rather than created. So it would not create new jobs but just support the existing positions. In addition here are two other thoughts in regards to construction Employment. Construction Employment is one of the most often misconstrued or misreported element in economic impact analysis. Here are some common reasons: Multiple Year Projects: Often the value of a construction process is not broken out by year or the final report is summative across the entire construction project. Not all positions change: While a construction project may require 32 jobs the first year and 50 jobs the next year. These jobs may not be summative some of these positions such as primary contractors may be the same job from year to year. As regards your Direct job count, the $364MM will probably generate a very different job count in Sector 36. But one other thing to keep in mind, usually projects of this value take place over several years, as per the information above, the jobs reported in IMPLAN reflect the number of jobs to accomplish that value of construction were all it all to occur in a single year. Thus if the project was a three year project the correct job value would be ~ 1000 jobs/year or if the project was 5 years then it would represent ~600 jobs a year. Please let us know if you are still concerned about the Direct Employment figure once it is calculated in Sector 36 with these considerations and we will be glad to look further into it with you. Sector 30 includes the following NAICS descriptions: Anthracite mine tunneling on a contract basis 30 213113 Anthracite mining services (except site preparation and related construction contractor activities) on a contract basis 30 213113 Auger coal mining services (except site preparation and related construction contractor activities) on a contract basis 30 213113 Bituminous coal mining services (except site preparation and related construction contractor activities) on a contract basis 30 213113 Bituminous coal or lignite surface mine site development (except site preparation and related construction contractor activities) on a contract basis 30 213113 Bituminous coal stripping service on a contract basis 30 213113 Bituminous or lignite auger mining service on a contract basis 30 213113 Blasting services, coal mining, on a contract basis 30 213113 Blasting services, metal mining, on a contract basis 30 213114 Blasting services, nonmetallic minerals mining (except fuels) on a contract basis 30 213115 Boring test holes for metal mining on a contract basis 30 213114 Boring test holes for nonmetallic minerals mining (except fuels) on a contract basis 30 213115 Coal mining services (except site preparation and related construction contractor activities) 30 213113 Coal mining support services (tunneling, blasting, training, overburden removal)(except site preparation and related construction contractor activities) 30 213113 Culm bank recovery, anthracite, on a contract basis 30 213113 Culm bank recovery, coal, on a contract basis 30 213113 Draining or pumping coal mines on a contract basis 30 213113 Draining or pumping of metal mines on a contract basis 30 213114 Draining or pumping of nonmetallic mineral mines (except fuels) on a contract basis 30 213115 Drilling services for coal mining on a contract basis 30 213113 Drilling services for metal mining on a contract basis 30 213114 Drilling services for nonmetallic mineral (except fuels) mining on a contract basis 30 213115 Exploration services for coal (except geophysical surveying and mapping) on a contract basis 30 213113 Exploration services for metal (except geophysical surveying and mapping) on a contract basis 30 213114 Exploration services for nonmetallic minerals (except geophysical surveying and mapping) on a contract basis 30 213115 Lignite mining services (except site preparation and related construction contractor activities) on a contract basis 30 213113 Metal mining support services (shaft sinking, tunneling, blasting) (except site preparation and related construction contractor activities) 30 213114 Mine development (except site preparation and related construction contractor activities) for metal mining on a contract basis 30 213114 Mine development for nonmetallic minerals mining (except fuels) on a contract basis 30 213115 Mine shaft sinking services for coal mining on a contract basis 30 213113 Mine shaft sinking services for metal mining on a contract basis 30 213114 Mine shaft sinking services for nonmetallic minerals (except fuels) on a contract basis 30 213115 Mine tunneling services for coal mining on a contract basis 30 213113 Mine tunneling services for metal mining on a contract basis 30 213114 Mine tunneling services for nonmetallic minerals (except fuels) on a contract basis 30 213115 Nonmetallic minerals mining support services (e.g., blasting, shaft sinking, tunneling) (except site preparation and related construction contractor activities)on a contract basis 30 213115 Overburden removal for coal mining on a contract basis 30 213113 Overburden removal for metal mining on a contract basis 30 213114 Overburden removal for nonmetallic minerals mining (except fuels) on a contract basis 30 213115 Prospect and test drilling services for coal mining on contract basis 30 213113 Prospect and test drilling services for metal mining on contract basis 30 213114 Prospect and test drilling services for nonmetallic mineral mining (except fuels) on a contract basis 30 213115 Pumping or draining coal mines on a contract basis 30 213113 Pumping or draining metal mines on a contract basis 30 213114 Pumping or draining nonmetallic mineral mines (except fuel) on a contract basis 30 213115 Removal of overburden for coal mining on a contract basis 30 213113 Removal of overburden for metal mining on a contract basis 30 213114 Removal of overburden for nonmetallic minerals mining (except fuels) on a contract basis 30 213115 Shaft sinking for coal mines on a contract basis 30 213113 Shaft sinking for metal mines on a contract basis 30 213114 Sinking shafts for coal mining on a contract basis 30 213113 Sinking shafts for metal mining on a contract basis 30 213114 Stripping overburden services for coal mining on a contract basis 30 213113 Stripping overburden services for metal mining on a contract basis 30 213114 Stripping overburden services for nonmetallic minerals mining (except fuels) on a contract basis 30 213115 Test drilling for metal mining on a contract basis 30 213114 Test drilling for nonmetallic minerals mining (except fuel) on a contract basis 30 213115 Tunneling services for coal mining on a contract basis 30 213113 Which can help you to discern what it is used for; however, there typically needs to be caution used when using a mining Sector and a support Sector in tandem, because these support Sector are typically very large purchases by their primaries in the case of Sector 23, Sector 30 is it's 4th largest Intermediate purchase. In regards to your reclamation question, what types of activities are typically involved in this? Is this basically environmentally recovery after the mine is spent? To model expected reclamation costs, you'll want to try to find a Sector or Sectors that most closely match the function of the reclamation dollars.