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Mining Economics and Strategy

Amazon.com Price:  $65.72 (as of 08/05/2019 17:37 PST- Details)

Description

Economic skill is an essential partner to technical skill in each step of the mining process. An economic “mindset” begins before the first drill hole. This new book will allow you to effectively direct mining operations through the usage of innovative economic strategies.

The text covers what is meant by a cost-effective mining scheme, the economics of information, and the procedures for rational evaluation of uncertain projects. It defines “ore” from an economic standpoint and covers the influence of scheduling on ore reserves.

Discounted cash drift techniques, the most widely used evaluation technique for investment decision making, is covered in detail. The assumption of the usage of spreadsheets is unique to this book. The application of DCF techniques in an operating mine environment is given expanded coverage and examples are drawn from real-life studies.

The differences between economic decision-making—a forward-taking a look task—and the reporting of results by way of accounting methods—a backward-taking a look activity—are reviewed. Capital and decision-making procedures associated with capital investments in a risk environment are given extensive coverage. Case studies for capital investment in an operating mine are included. Comprehensive examples investigate “value” from a risk-reduction standpoint and from an “expected return on investment” standpoint.

This book offers solutions to the problem that many mining projects fail to reach expectations on account of their inability to adapt to change. A new technique is explained that allows calculation of capital that may be “at risk” from capital that may be not at risk. This promises significant advances in the way that investments are made and capital is valued in the industry.


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