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Title: Mine evaluation in a changing investment climate

Abstract

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.

Authors:
Publication Date:
Research Org.:
Amoco Metals Co., 7000 Yosemite St., Englewood, CO 80155
OSTI Identifier:
5910924
Resource Type:
Journal Article
Journal Name:
Min. Eng. (Littleton, Colo.); (United States)
Additional Journal Information:
Journal Volume: 34:12
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; MINES; ECONOMIC ANALYSIS; INVESTMENT; CAPITAL; COPPER; EMPLOYMENT; MINERAL INDUSTRY; PRODUCTION; ECONOMICS; ELEMENTS; INDUSTRY; METALS; TRANSITION ELEMENTS; UNDERGROUND FACILITIES; 290400* - Energy Planning & Policy- Energy Resources; 290300 - Energy Planning & Policy- Environment, Health, & Safety

Citation Formats

O'Neil, T J. Mine evaluation in a changing investment climate. United States: N. p., 1982. Web.
O'Neil, T J. Mine evaluation in a changing investment climate. United States.
O'Neil, T J. 1982. "Mine evaluation in a changing investment climate". United States.
@article{osti_5910924,
title = {Mine evaluation in a changing investment climate},
author = {O'Neil, T J},
abstractNote = {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.},
doi = {},
url = {https://www.osti.gov/biblio/5910924}, journal = {Min. Eng. (Littleton, Colo.); (United States)},
number = ,
volume = 34:12,
place = {United States},
year = {Wed Dec 01 00:00:00 EST 1982},
month = {Wed Dec 01 00:00:00 EST 1982}
}