Seismic techniques have had relatively limited utilization, due to their relatively high cost and the difficulty of acquiring and interpreting seismic data in strongly faulted and altered igneous terranes, in mineral assessments and exploration at the deposit scale. Essentials of mineral exploration and evaluation 1st edition. Tradeoff study on owner or contractor mining for all or part of mining activities during preproduction. Strategic project evaluation for open pit mining ventures. Calculation of net present value is not the only method used by firms to evaluate investment opportunities.
Pdf economic evaluation and sensitivityrisk analysis of. Chapter 2 planning project evaluation this chapter explains key issues to consider for evaluation planning. Request pdf mine project evaluation techniques mining industry was always considered as risky business. All of the material will be presented in the context of investment decision. Mine project evaluation techniques request pdf researchgate. Pdf evaluation of mining investment projects with a new software. Valuation methods of mineral resources estrella domingo. The length of each task is the duration of the corresponding task. Information about the location and value of the mineral ore deposit is obtained during the exploration phase. National statistical coordination board 1 valuation methods of mineral resources london group meeting, pretoria, south africa, 2630 march 2007. However, all operations share the same priorities, the maximization of the return on the investment and the maximization of the recovery of the resource.
Guidelines for technical economic evaluation of minerals. Exterior may have moderate signs of wear from use or shelving worn corners, creases, scratches, etc. The african continent will follow suit in due course considering the importance of the global minerals industry as it relates to the attraction of. As a major purpose of project evaluation is to improve value for money, the cost of project evaluation must be balanced against the benefits of improved decision making. Modern practice is to examine the potential for continued exploration to. Recent books focus on historical methods or details of geostatistical theory. Cover may be different than listing and may have sticker sticker residue. Applications of soil fertility evaluation and recommendation substitute information for resources. In the process, the other issues are also discusseddealt with. In this sense, mineral exploration and development represent a variety of activities that collect information necessary to identify mineral deposits and then evaluate whether they should developed into mines. Malone, is a geologist with an mba, who teaches mine and project evaluation at the university of new south wales.
Projects 2 and 3 both have larger ratios than project 1. The purpose of mineral exploration is the discovery and acquisition of new mineral deposit amenable to economic. Figure 1 in this representation, the tasks are the vertices of the graph. A comparative study of valuation methodologies for mineral.
Lecture material will be augmented by a range of international case studies and small group assignments that consider both individual project assessments and broader industry trends. Mineral potential evaluation section project boundaries as of january 2017 zip, 2. Manage fields on sitespecific basis, according to variable crop, soil and environmental conditions often relies on intensive crop and soil testing. There is no support for a prescribed method, a universal model or a black box model. Valuation methods of mineral resources 3 of resources, highlighting the advantages, disadvantages and issues and limitations of each method.
In the past, mineral valuations were based very largely on proved and probable reserves. The main purpose of this study is to examine the risk level of mining investment projects, based on the monte carlo method. Mineral exploration and development are informationgathering activities. The driver behind this research was whether conventional evaluation techniques for mineral projects can evaluate accurately both the spatial and temporal characteristics of project risks in financial terms, due to their inherent nature to understate the true variance, and undervalue or overvalue the actual npv. The unit covers the financial management and project evaluation techniques of mineral and energy technologies. Mineral potential projects data releases and webpages. Evaluation questions will be explained as the first step in making a work plan, and then, basis for judgment, necessary data and data sources, and data collection methods will follow. However, shallow seismic surveys employ less expensive sources and smaller. Fuer homepage valuation of metals and mining companies. Minnitt synopsis a number of countries have introduced codes governing the valuation of mineral assets and securities. At least four aspects of the environment in which the project is evaluated may be identified technical, financial, social and politi cal.
The global mining industry is extremely capital intensive but subject to large swings in profitability due to the high volatility of prices and political risk. A structured approach to assessing individual projects is the first step to ensure rigorous evaluation with investment decisions made on sound financial, social, environmental and. Valuation of mineral resources in selected financial and. Mining project evaluation when you plan a new mine or investment, our worldwide team of multidisciplinary specialists can provide a comprehensive, integrated approach to your viability studies including scoping, feasibility and prefeasibility, due diligence. Methods for project evaluation march 8, 2004 nuclear energy economics and policy analysis alternative methods present worth pw method future worth fw method annual worth aw method benefitcost ratio bc method internal rate of return irr method nuclear energy economics and 2 policy analysis 1 3804. So there is a growing need to collect and synthesize the practice of modern mineral resource estimation into a book for undergraduate students, beginning graduate students, and young geologists and engineers. Summative evaluation this evaluation takes place after completion of a project to appraise its success. Essentials of mineral exploration and evaluation offers a thorough overview of methods used in mineral exploration campaigns, evaluation, reporting and economic assessment processes. Expert economic evaluation of mineral resources expert economic evaluation, in its broadest sense, is a form of geological and economic evaluation of mineral resources. The expected grade distribution for the mining operation was effectively modelled, allowing the client to investigate the expected ore reserves as a function of. This phase of the mining project has several distinct components.
Phased project planning mining companies must have strong frameworks in place for the evaluation and prioritisation of their portfolio investment alternatives. Objective provide accurate andprovide accurate and complete information to the decision maker. The start and finish of a task are two stages of the project. Evaluating investment projects in mining industry by. It describes various economic evaluation techniques typically employed including conventional cost analysis, discounted cash flow, and option analysis, their uses, and their relationships. Mineral economics, finance evaluation and risk assessment. Evaluation questions will be explained as the first step in making a work plan, and then, basis for. Mining industry was always considered as risky business. Evaluation results are the basis for making positive or negative investment decisions.
Npv analysis is sensitive to the one of the most common methods to evaluate a mining project is the dcf method. The first process that most of the ores or minerals undergo after they leave any mine, is mineral processing or mineral ore dressing. It is a process of ore preparation, milling, and ore dressing. National statistical coordination board 1 valuation methods of mineral resources london group meeting, pretoria, south africa, 2630 march 2007 estrella v. Another area on which national valuation codes tend to be very specific is classification of mineral assets into categories defined by a phase of exploration lifetime. In the web map check on the layer titled dnr mineral potential project footprints. Evaluation of capital investments into mining investment projects is a specific. Mineral exploration can be technically defined as all the activities and evaluation necessary before an intelligent decision can be made establishing size, initial flow sheet, and annual output of new extractive operation. Formative evaluation this evaluation takes place during the project to guide future development. The pert diagram of the project is shown in the figure 1. Used books can include moderate writing, highlighting, underlining, marking, or notes. Mdip in engineering wh bryan research centre, the university of queensland.
Mineral potential assessment mineral potential likelihood that an economic mineral deposits could have formed in the area probabilistic approach to mineral deposits instead of deterministic probabilities are conditional on geological processes occurring in an area on geological features indicative of those processes. Mineral exploration an overview sciencedirect topics. Dcf, decision trees dt and monte carlo simulations mcs are commonly used for evaluation of mining. Lopezdee national statistical coordination board philippines. This paper provides an overview of the dynamic methods for evaluating investment projects in mining industry as well as the examples of their application in practice. Case study 1 rwe produced a mineral resource model of a platinumpalladium deposit in the bushveld complex, south africa. Fully illustrated to cover the stateoftheart exploration techniques and evaluation of mineral assets being practiced globally, this uptodate reference offers. Since the different valuation methodologies cannot be satisfactorily used across all the stages of development of a mineral project, five examples which exemplify certain stages of development are considered. The guidebook for evaluating mining project eias reflects many years of experience evaluating the environmental impact assessments eias for proposed mining projects around the world. Mine project evaluation methods of cash inflows and the present value of cash 2. Project analysis and evaluation bureau of land management. Costs and timing costs the resources devoted to each evaluation should be commensurate with the size and importance of expenditure involved. Methods, investment projects, economic evaluation, mining.
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