Turning waste into profit: Circular economic optimization of quartz sand from tin mining and processing

Abstract

This paper analyzes whether the mining industry can apply circular economy principles in its investment, using two business scenarios of the circular economy. Scenario A utilizes quartz sand from tin mining residues and then processes it into concrete sand. Meanwhile, Scenario B is similar to Scenario A in the first stage, but the residue produced from the first stage is reprocessed to produce concrete sand. To compare the economic feasibility of both scenarios, this study applies a discounted cash flow technique and an incremental analysis. Material flow analysis investigates the circularity and productivity from resource utilization in every design. The two business scenarios are economically viable, but Scenario B is better than Scenario A. NPV of Scenarios A and B are US$ 513 thousand and US$ 322 thousand, respectively. The NPVB-A is US$ 147, whereas the IRR of Scenario A is 26.24 % and Scenario B is 34.05 %. The circularity of Scenarios A is 0.86 with a productivity of US$1.62/m3, and the circularity of Scenario B is 0.94 with a productivity of US$1.80/m3. Therefore, Scenario B is more efficient than that of Scenario A. Eventually, implementations of the circular economy principles in the mining industry are possible. These results can become a consideration for investors to innovate through circular economy approaches in their mining business for sustainable production and consumption purposes.