Aspects of Evaluating Mining Projects

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. This paper outlines some technical inputs that form the basis for financial evaluation. These include estimates of mineable ore, pro­ duction rates, performance of production systems, capital and opera­ ting costs and the revenue. The financial assessment, set within the fiscal regime of the host country, will generate standard project evalu­ ation criteria such as NPV and IRR. The paper emphasises the re-ite­ rative process of evaluation and the need to avoid costly detailed engineering until such time as proposal to mine has been approved.