Investment In Mining Projects Research Articles

Similarities and Proximity Symmetries for Decisions of Complex Valuation of Mining Resources in Anthropically Affected Areas

After 1990, when the economic system changed in Romania, the mining industry was the most controversial field from a productive-economic point of view and subject to reforms and transformations for efficiency. Currently (2022), there are nine main mining perimeters in which the production of useful, energetic, and nonenergetic mineral substances is operational, and in others it has decreased or stopped. Still active mining areas need economic and ecological assessments to identify similarities and proximity symmetries for informed exploitation decisions and feasible complex resource utilization. The main objective of our study is to define a framework for the theoretical and practical contribution to the substantiation of decisions and expressions of interest regarding future investments in mining projects for useful and energetic and non-energetic mineral substances in Romania. Investments in the mining industry are expensive, with major risks and subunit success rates for specific geotechnological conditions. The purpose of the research is to provide the methodology for using some variables of similarities from proximity mining deposits in the stage of exploitation or post-exploitation affected by anthropogenic activity in the national geological territory through a case study of Romania. With the help of statistical scales, the research results highlight that in the exploitation and post-mining perimeters in Romania, the states of “affect” and “post-affect” anthropic, respectively, of eco-economic damage are in a maximum proportion of approximately 36% in relation to the ideal situations of no affect. For a mining investment project, knowing similar or symmetrical exploitation and post-exploitation properties and situations, and from the geological deposits in the vicinity, premises are created for optimized strategic and tactical decisions, based on reality and, above all, for the provision of expressions of interest for new investments that have a programmed, expected success rate.

Fuzzy MADM-Based Model for Prioritization of Investment Risk in Iran’s Mining Projects

Investment in mineral industries always deals with various economic, political, technical, and environmental risks. Not paying enough attention to such risks increases the possibility of investment failure. Accordingly, in this study, the risk criteria for investing in mineral industries and sub-criteria for risk assessment according to the type of industries, including mineral exploration, exploitation, and processing projects, have been identified and prioritized. In this regard, a methodology is presented based on multi-attribute decision-making methods, including Fuzzy Delphi, DEMATEL, and ANP methods to identify and analyze the risk criteria and evaluate sub-criteria. The results indicate that financial and commercial, technical, HSE, infrastructural considerations, geological, political, security, and legal risks are the main risk measures affecting investment in mining projects with different priorities. From the viewpoint of investment risk assessment in mineral processing and exploration projects, technical, financial and commercial, and geological risk criteria are the most significant, respectively. Generally, all risk criteria must be considered to make a reasonable investment in the mining sector, especially those more important.

The optimisation rule for investment in mining projects

Investment in mining projects involves significant uncertainty. Project investment is usually high risk, irreversible and challenged by major economic factors. Mining commodity prices in particular always show greater volatility than any other primary products. The variation of these prices is critical in the investment decision of whether the project should go ahead, be abandoned or be delayed. This paper examines the impact of mineral price uncertainty on mining investment decisions using examples of projects in the Asia-Pacific region. Applying the mean reversion (MR) model, the commodity trigger value for investment decisions in each project is determined in the context of operational flexibilities. The findings indicate it is sometimes better to wait for a more suitable time to invest.

Simulation of weathered profiles coupled with multivariate block-support simulation of the Puma nickel laterite deposit, Brazil

Modelling and assessing spatial variability and uncertainty of mineral deposits is critical for both capital investments in mining projects as well as operational issues once a mine is developed. However, traditional approaches for modelling geological domains and geostatistical estimation provide smoothed representations of the pertinent deposit attributes, ignore spatial variability and, thereby, can mislead downstream decisions. Spatial variability and related uncertainty in modelling mineral deposit characteristics of interest, ranging from metal content and geological boundaries to geomechanical - geotechnical rock properties, can be modelled and quantified by stochastic spatial simulations. This is demonstrated through a detailed, step- by-step application to the Puma deposit, a major nickel lateritic asset in Brazil, part of the Onça-Puma mining complex. To integrate the variability of the regolith profiles of the deposit, their thicknesses are calculated after an unwrinkling process is applied and the deposit is then jointly simulated using min/max autocorrelation factors (MAF). The realizations serve as geological boundaries within which Ni, Co, Fe, SiO2, MgO and Dry-tonnage factor (DTF) are subsequently jointly simulated directly at block support scale. The final result is a series of equally probable representations of the Puma deposit, which are used to quantify and assess the uncertainty about key aspects of the project at the Puma deposit, such as the uncertainty of the in-situ resources documented herein, and the strict control of the ore's quality that feeds the ferronickel processing plant. The framework presented shows the advantages of the MAF and direct block simulation approaches for the efficient joint simulation of spatially variant geological attributes of large deposits for industrial environments. The methods presented are general, new in the context of geotechnical and geomechanical engineering, and can assist in the modelling of spatial variability and quantification of uncertainty linked to geotechnical rock properties and pertinent lithological boundaries.

Valorización de opciones reales: modelo Ornstein-Uhlenbeck

This study has as its main objective to develop an analysis of decision making under uncertainty using the real options application in the evaluation of investments in mining projects. It is also proposed to study the behaviour of gold prices, for the specific case of Peru, using historic prices and based on the commodity prices process. The Ornstein-Uhlenbeck model has been used for this.The main result is that to evaluate projects using the real options approach allows to evaluate –in their real magnitude– the financial benefits associated with an investment project, as it takes into account the trinomial of profitability-risk-flexibility. The assessment method using real options makes it possible to structure strategic thinking.

Risk Management Model in Surface Exploitation of Mineral Deposits

Abstract Risk management is an integrative part of all types of project management. One of the main tasks of pre-investment studies and other project documentation is the tendency to protect investment projects as much as possible against investment risks. Therefore, the provision and regulation of risk information ensure the identification of the probability of the emergence of adverse events, their forms, causes and consequences, and provides a timely measures of protection against risks. This means that risk management involves a set of management methods and techniques used to reduce the possibility of realizing the adverse events and consequences and thus increase the possibilities of achieving the planned results with minimal losses. Investment in mining projects are of capital importance because they are very complex projects, therefore being very risky, because of the influence of internal and external factors and limitations arising from the socio-economic environment. Due to the lack of a risk management system, numerous organizations worldwide have suffered significant financial losses. Therefore, it is necessary for any organization to establish a risk management system as a structural element of system management system as a whole. This paper presents an approach to a Risk management model in the project of opening a surface coal mine, developed based on studies of extensive scientific literature and personal experiences of the author, and which, with certain modifications, may find use for any investment project, both in the mining industry as well as in investment projects in other areas.

Prediction of Essential Amount of Exploration Drilling in Primary Stage of Open Pit Mine Planning

Open pit Mine planning and initial production scheduling of open pit mine are considered as the complicated issues in mining engineering. The high capital investment in mining projects requires more accuracy in preparing base data. A reliable estimation of grade and tonnage of a mineral deposit has a considerable impact on the success of a mining project and initial capital cost prediction. These estimations depend on number of samplestaken from exploration drilling; therefore, it is necessary to determine the proper amount of drilling to reach rational confidence level of grade and tonnage estimation. In this paper, essential amount of drilling for reaching an acceptable confidence level of grade and tonnage estimation has been investigated. Regarding the feasibility, due to multiple sampling and numerous checks, the average mining grade of some declared tonnage is likely to be known within acceptable limits, say ±5%, and verified by standard statistical methods. For this condition, 5 different sampling grids were generated from the geological block model of Sungun copper mine. The grades of Sungun copper mine block model were considered as the actual grade of each block. Then the block model was re-estimatedconcerning different sampling grids. The Sequential Gaussian Simulation method was applied for re-estimating and considering the grade uncertainty of each block.

Risk quantification in grade-tonnage curves and resource categorization in a lateritic nickel deposit using geologically constrained joint conditional simulation

The risk quantification in grade-tonnage curves is critical for capital investment in mining projects. Geostatistical simulations for orebodies can be used to obtain grade-tonnage curves, and determine uncertainty and risk assessments. Applying these in multi-element deposits can be a difficult practice, as the related attributes using the traditional co-simulation approaches require intensive computational work and may be impractical for use in the mineral industry. This paper presents the risk assessment for integrating grade-tonnage curves and resources categorization for lateritic nickel deposits in the central region of Brazil, by joint simulation of multiple correlated variables of interest: Ni, MgO and SiO2. The joint simulation of these variables is based on Minimum/Maximum Autocorrelation Factors (MAF). Based on this approach, the resources are categorized honoring Ni joint simulated results by applying the 15 % rule, where it is considered there will be a statistical error < 15 %, with 90 % of a confidence interval per production period.

Foreign Investment in Mining Projects

Foreign Investment in Mining Projects

Mining enclaves and taxation

This paper examines certain macroeconomic effects of major mining projects in developing countries, paying special attention to the case of Papua New Guinea. It goes on to assess the contribution that such projects can make to economic development indirectly through their contributions to government revenue. This paper reviews existing evidence on the linkage effects of foreign investment in mining projects in developing countries and presents as new evidence the results of a study on the macroeconomic effects of major mining projects in Papua New Guinea. Considerable support is found for the proposition that such projects tend to perform as enclaves, having only weak direct links with host national economies. This paper stresses the importance of applying fiscal arrangements which can be expected to appropriate a large share of the mineral rent from intra-marginal mining projects while preserving the incentive to invest. Fiscal arrangements of this type are being applied in Papua New Guinea and are indeed able to capture very large benefits for the country. In Papua New Guinea the enclave nature of large-scale mining projects is consistent with their making large contributions to progress towards national objectives, and this paper argues that given the application of appropriate fiscal arrangements, this conclusion can be extended to other developing countries.