Abstract: In view of the matters such as small per capita occupation of iron ore resource, excessive exploitation of resource and serious waste of resource, and in the principles of sustainability, efficiency and social welfare function, study is made on the optimal exhaustion of iron ore both theoretically and methodologically. Optimal exhaustion simulation is made with the iron ore resource in Tangshan region as the example. The simulation results are compared and analyzed with the real exploitation and utilization conditions of this region in recent years.

Key words: Optimal exhaustion, Sustained utilization, Welfare function, Iron ore resource