Mine evaluation in a changing investment climate

Journal Article · Wed Dec 01 00:00:00 EST 1982 · Min. Eng. (Littleton, Colo.); (United States)

OSTI ID:5910924

O'Neil, T J

This is a difficult time to generate much enthusiasm for mine evaluation. Throughout the industry the question is not how can it make better investment decisions, but how can it survive. Virtually every major mineral commodity is currently priced far below the level required to justify investment in new productive capacity. The copper industry is in particularly poor condition with almost every domestic mine losing money. In short, over the long run, if copper is to be available, society must pay the full cost of its production, including a return on investment sufficient to attract the necessary capital to construct new mining and processing facilities. With ever increasing capital intensity in mining, the need for sound investment decisions has never been greater. The mine evaluator plays a crucial role here, and the complex and interdisciplinary nature of that role has resulted in a much broader evaluation methodology. Cash flows still need to be discounted, but the path between the calculated DCFROI and the final decision is much more tortuous.

• Research Organization: Amoco Metals Co., 7000 Yosemite St., Englewood, CO 80155
• OSTI ID: 5910924
• Journal Information: Min. Eng. (Littleton, Colo.); (United States), Vol. 34:12
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
MINES
ECONOMIC ANALYSIS
INVESTMENT
CAPITAL
COPPER
EMPLOYMENT
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PRODUCTION
ECONOMICS
ELEMENTS
INDUSTRY
METALS
TRANSITION ELEMENTS
UNDERGROUND FACILITIES
290400* - Energy Planning & Policy- Energy Resources
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