Editing Mining engineering (section)

===Feasibility study===
{{Main|Mining feasibility study}}
Once the mineral identification and reserve amount are reasonably determined, the next step is to determine the [[feasibility study|feasibility]] of recovering the mineral deposit. A preliminary survey shortly after the discovery of the deposit examines the market conditions, such as the supply and demand of the mineral, the amount of ore needed to be moved to recover a certain quantity of that mineral, and analysis of the cost associated with the operation. This pre-feasibility study determines whether the mining project is likely to be profitable; if so, a more in-depth analysis of the deposit is undertaken. After the full extent of the ore body is known and has been examined by engineers, the feasibility study examines the cost of initial capital investment, methods of extraction, the cost of operation, an estimated length of time to pay back the investment, the gross revenue and net [[profit margin]], any possible resale price of the land, the total life of the reserve, the full value of the account, investment in future projects, and the property owner or owners' contract. In addition, environmental impact, [[mine reclamation|reclamation]], possible legal ramifications, and all government permitting are considered.<ref>Gentry Donald W., SME: ''Mining Engineering Handbook'', 2nd ed., Volume 1, 1992, "Mine Evaluation and Investment Analysis", pp. 387–389, {{ISBN|0-87335-100-2}}</ref><ref>O'Hara, T. Alan and Stanley C. Suboleski, SME: ''Mining Engineering Handbook'', 2nd ed., Vol. 1, 1992, "Costs and Cost Estimation", pp. 405–408, {{ISBN|0-87335-100-2}}</ref> These steps of analysis determine whether the mining company and its investors should proceed with the extraction of the minerals or whether the project should be abandoned. The mining company may decide to sell the rights to the reserve to a third party rather than develop it themselves. Alternatively, the decision to proceed with extraction may be postponed indefinitely until market conditions become favourable.