Pdf evaluation of mining investment projects with a new software. The african continent will follow suit in due course considering the importance of the global minerals industry as it relates to the attraction of. An innovative approach to robust optimisation for scenariobased mineral project evaluation, in proceedings project evaluation 2012, pp 141148 the australasian institute of mining and metallurgy. Whether youre an experienced evaluator of mineral projects, a student, or a decision maker who is not a practitioner but must use evaluation results, this new book is an essential reference for your bookshelf. The assignment of evaluation studies of all types to a cen. The saimm announces the 4th mineral project valuation colloquium following three previous successful schools in. Pdf economic risk analysis of mineral projects in ghana a. Economic analysis provide an economic analysis for the project that includes. It is important due to the modern approach, evaluation reliability and application effects of the current conditions of the expert work in the mineral sector, particularly in order to prepare. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Mineral property evaluation provides guidelines to follow in performing mineral property feasibility and evaluation studies and due diligence, and in preparing proper documents for bankable presentations. An innovative approach to robust optimisation for scenario. Remember that the purpose of this project is not to simply reorganize information that you discover relating to your subject, but to draw your own conclusions based on that information.
The systematic and objective assessment of an ongoing or completed project or programme, its design, implementation and results. Valuation methods of mineral resources 3 of resources, highlighting the advantages, disadvantages and issues and limitations of each method. Project and programme evaluations guidelines 1 evaluation. Mineral potential evaluation section project boundaries as of january 2017 zip, 2. Exploration for and evaluation of mineral resources means the search for mineral resources, including minerals, oil, natural gas and similar nonregenerative resources after the entity has obtained legal rights to explore in a specific. Projects 2 and 3 both have larger ratios than project 1. The global mining industry is extremely capital intensive but subject to large swings in profitability due to. Consequently, the award of mineral rights can be one of the most farreaching activities a government undertakes. C h a p t e r 7 geological exploration o u t l i n e 7. The term project evaluation has very broad applicability within the mining industry.
Mineral resource tenders and mining infrastructure. Fully illustrated to cover the stateoftheart exploration techniques and evaluation of mineral assets being practiced globally, this uptodate reference offers balanced coverage of the latest. The aim is to determine the relevanc e and fulfillment of objectives, development efficiency. Mineral economics society survey, where respondents were asked to rank a list of mining project risks, the highest risk. Mineral property evaluation download ebook pdf, epub. Listed here are only those available digitally for download as seen in the pdf link heading farthest on the right. This paper outlines some technical inputs that form the basis for financial evaluation. Both are linked to the optimization of profits, which in mineral operations is done by optimizing the ore cutoff grade, considering the block model geometry. Mineral economics is an international, multidisciplinary journal focused on economics and policy issues in the minerals, metals and mining industries. However, the fundamental conceptgenerating information to support decision making regarding a project is the same for all projects or stakeholders. Methodologies in the valuation of mineral rights by e.
However, the fundamental conceptgenerating information to support decision making regarding a projectis the same for all projects or stakeholders. However, because most of the countries in these areas are not well developed, there are several additional risks associated with participation in mining projects. A gap exists between mineral asset valuation and financial reporting. Ifrs 6 exploration for and evaluation of mineral resources.
The successful conclusion of any property evaluation depends on the development, work, and conclusions of the project team. Mine project evaluation methods of cash inflows and the present value of cash 2. In the past, mineral valuations were based very largely on proved. It ranges between searching for a new mineral prospect reconnaissance and evaluation of the property for economic mining feasibility study. Applications and misconceptions by torries, thomas f. Preparing a cash flow model to be used in project evaluation is not just an exercise in manipulating numbers in microsoft excel. Mineral exploration is a complete sequence of activities. The unit covers the financial management and project evaluation techniques of mineral and energy technologies. The art of mineral project evaluation involves understanding the key principles and project drivers, as well as identifying and quantifying the level of risk to determine the viability of a project. Supporting economic information includes the following parameters. In the past, mineral valuations were based very largely on proved and probable reserves. Npv analysis is sensitive to the one of the most common methods to evaluate a mining project is the dcf method.
Valuation methodologies for mines and mineral tenements trevor r. 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. Valuation methods of mineral resources estrella domingo. Designed to complement traditional engineering texts, this book emphasizes the concepts of mineral project evaluation rather than computational details. A framework model developed to close the gap correlated with market capitalization. Lesson 1 meaning, nature and importance of project structure 1. Pdf the economic evaluation of mineral projects is normally based on cash flow analyses using profit indicators like internal rate of return, net. Valuation methods mineral projects discounted cash flow. The journal exists to improve the understanding of economic, social, environmental and political implications of natural resources. A mineral resources reporting system most commonly observed by resource companies is the jorc code. 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. Malone, is a geologist with an mba, who teaches mine and project evaluation at the university of new south wales. A function of the amount of knowledge on a mineral resourceproperty and the.
Learn how we provided an extensive heavymineral evaluation of approximately 2,000 acres for a confidential client to determine the potential for the presence of commercial concentrations of. This phase of the mining project has several distinct components. Modern practice is to examine the potential for continued exploration to. Pdf mining operations are increasingly challenged to sustain and improve its profitability. Swapan kumar haldar, in mineral exploration second edition, 2018. Pdf essentials of mineral exploration and evaluation geological. Chapter 2 planning project evaluation this chapter explains key issues to consider for evaluation planning. A comparative study of valuation methodologies for mineral. It highlights the need for a consistent, systematic methodology in performing evaluation and feasibility work. The complete evaluation flows like a simple story book. Essentials of mineral exploration and evaluation offers a thorough overview of methods used in mineral exploration campaigns, evaluation, reporting and economic assessment processes. Mdip in engineering wh bryan research centre, the university of queensland. Created in australia and widely recognized in many other countries which clearly restricts itself only to solid.
Professionals in the minerals industry that perform mineral property evaluations. A comparative study of valuation methodologies for mineral developments a drilledout orebody project c a partially developed mine project d and a producing mine project e. The framework links exploration results, project evaluation to financial reporting. Saimm mineral project valuation colloquium 2017upcoming.
Therefore, in order to ensure that the mineral resources are used efficiently, a risk assessment is required before the implementation of any. Valuation methods of mineral resources london group meeting, pretoria, south africa, 2630 march 2007. Valuation of mineral resources in selected financial and. Designed to complement traditional engineering texts, this book emphasizes the concepts of mineral project evaluation rather than computational. Economic evaluations of mining projects incorporate the examini nation and assessment of the technical, financial, social and political aspects of. Mineral exploration an overview sciencedirect topics. Minnitt synopsis a number of countries have introduced codes governing the valuation of mineral assets and securities. Table of digital mn dnr sitespecific aggregate resource evaluation projects reports 334 listed below is a table of sitespecific aggregate resource evaluation projects conducted by the mn dnr mineral potential evaluation section since 1999. Companies that have mineral properties and perform mineral property feasibility studies and evaluations. The evaluation of mineral assets as a very important part of business combination deal should be prepared on a basis of income and cost approach. Essentials of mineral exploration and evaluation 1st edition. The conclusions you draw from the information and the point you are making with the information will be what makes this project yours.
Strategic project evaluation for open pit mining ventures. Mining operating fundamentals as per lom plan drive mineral asset value. Calculation of net present value is not the only method used by firms to evaluate investment opportunities. There are numerous complexities in compiling such a model which require a thorough understanding of the project and the commodity, from geology to mining to processing to logistics to marketing the finished product. However, all operations share the same priorities, the maximization of the return on the investment and the maximization of the recovery of the resource. Mineral potential projects data releases and webpages. The evaluation may take any form from an independent experts report in international. 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. There are three key questions that must be answered before entering the process of evaluating mineral projects. Mineral exploration and development are informationgathering activities. The main purpose of economic evaluation of mineral properties, which a mining company intends to develop, is to measure potential benefits from realization of the investment project in the form of net cash flows.
Allen abstract economic evaluations of mining projects incorporate the examinination and assessment of the technical, financial, social and political aspects of the environment in which the mineral deposit is situated. No formal mention of cost reporting in ni 43101 technical reports. The project was concentrated on the nature of mining companies unique assets ore reserves and mineral resources valuation, mineral rights reporting. The unit is designed to provide a basic understanding of the fundamental concepts and principles that influence investment and financing decisions of mining projects at the prefeasibility stage. Click download or read online button to get mineral property evaluation book now.
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