Which Statement Best Describes the Relationship Between Depletion Time and Mining

question 70

Multiple Choice

Which statement best describes the relationship between depletion time and mining? 

• A) The depletion time depends on the amount of known reserves. 
• B) Mines with recycling measures have continuous production growth. 
• C) Recycling measures give mines a longer depletion time. 
• D) Mines with recycling measures have a higher short-term production rate than those which do not.

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Definitions:

Non-regenerative Resources

Resources that cannot be replenished or renewed after their consumption, such as fossil fuels and minerals.

Full Cost Method

An accounting method used in the oil and gas industry, where all exploration, development, and production expenses are capitalized rather than expensed.

Successful Efforts Method

An accounting approach used in the oil and gas industry where costs are capitalized only if successful in finding hydrocarbons.

Provision

A liability of uncertain timing or amount.