Table 3 

 PROFITABILITY ANALYSIS 



Norton Sound 



Sheltered Coast 



1. Sales 



Table 11 (75 cents/yd^ 90 per cent recovery) 



2. Expenses 



Administrative (10 per cent sales) 



Royalties 



Operating costs 



Development capital (1/15 rate) 



3. Profit before taxes 



4. Depletion allowance (15 per cent net sales) 



5. New taxable income 



6. Taxes 52 per cent net taxable 



7. Net profit (item 3-item 6) 



8. Capital (Table 1) 



Equipment 



Development 



Working 



9. Annual percent ROI 

 item 7 



item 8 



x 100 



Detailed design criteria are not examined for the mining vehicle but no major problems are 

 anticipated. Visual control of the mining operation would be possible using sonar transponders on the 

 vehicle and at fixed locations within the deposit. Power distribution, controls and monitoring of the 

 submerged equipment would be handled within the habitat. 



The mining system would involve eight components: the deposit, a mining vehicle, a central control 

 habitat, a hydrauUc hoist or pumping system, a floating surface station, a deep submerged personnel 

 transport and work vehicle, a surface transportation fleet, and an offloading and reduction plant 

 onshore. Power requirements for the system are Usted in Table 4. 



—The central control habitat. This would incorporate a pump feed hopper, pump controls, and the first 

 pumping stage. Power is suppUed from the surface station and distributed to the mining vehicle, the 

 hopper feeder, the first stage pumps, the habitat mobile functions, and the habitat itself. The habitat 

 would be capable of continuous life support at one atmosphere and would be maintained by the deep 

 submersible vehicle. Forward and lateral movement of the habitat at speeds up to 1.5 miles per hour 

 would be necessary. Ground pressure could be adjusted within limits by ballasting. Recovery of the 

 habitat would be effected, as with the miner, by the attachment of flotation sacks. 



—The hydrauUc hoist. Several investigations in the past have shown the feasibility of pumping solids 

 from depths of 15,000 feet. No major design problems are foreseen that cannot be solved by 



VIM 82 



