Abstract
The functioning and development of the extractive industry depends on many unusual conditions that are not found in other industries, such as the size of deposits, the level of natural and technical hazards, geographic location, or the method of mineral extraction (open pit or underground). Therefore, it is difficult to use universal development assessment methods for such specific production units. As a result, the research undertaken in this article aims to develop an indicator method for evaluating the development potential of underground hard coal mines. This method is based on a theoretical and practical analysis of the conditions of functioning of hard coal mines, expert research, and multiple case studies verifying the operation of the presented development indicator. The first part of the article is devoted to identifying and analyzing the criteria for assessing the functioning of underground hard coal mines. Next, the essence and methodology of creating and interpreting the proposed indicator was presented. The second part of the article is empirical, and contains the results of the assessment carried out using the developed indicators for five Polish hard coal mines for the years 2011–2015. The results of the research indicate that the most important factors in the development of hard coal mines relate to the geological and mining conditions, and those concerning natural hazard levels. However, during the functioning, the financial conditions and related production conditions, which ultimately determine the survival and development of underground mining plants, gain in significance.
Highlights
When making decisions on commencing mining extraction, the assessment of the development possibilities of mining plants is usually evaluated in the context of profitability of investments, taking into account the sufficiency of the explored deposits and the technical possibilities of their extraction [1].The classic approach to the methods of measuring economic efficiency is often complemented with the use of real options [2,3], which take into account the revenues of the mining enterprise after the forecast period established in the investment account process [4,5]
For the purposes of detailed empirical analysis of the development situation of the examined mines, firstly it is necessary to analyze the market conditions in which they are operating. This is why this part of the article includes the synthetic evaluation of the Polish hard coal mining industry functioning in the years 1990–2016
The conclusions from the studies and considerations may be contained in three general groups: a universal one referring to the assessment method presentation, a regional one referring to the conditions of the hard coal mining industry operation in Poland, and a practical one covering the directions for the mines that survived and shall strengthen their chances for further development
Summary
When making decisions on commencing mining extraction, the assessment of the development possibilities of mining plants is usually evaluated in the context of profitability of investments, taking into account the sufficiency of the explored deposits and the technical possibilities of their extraction [1].The classic approach to the methods of measuring economic efficiency is often complemented with the use of real options [2,3], which take into account the revenues of the mining enterprise after the forecast period established in the investment account process [4,5]. The listed accident parameters in the case of mining enterprises are affected by a number of diverse conditions that are not dependent on management decisions, and on which mining enterprises have no direct influence. These include the geological and mining conditions, geographic location, type, and level of natural hazards or the extraction method (underground, open pit). In such conditions, the assessment of development potential must be multidimensional, and cannot only include economic or production criteria [10]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
