Determination of the effect of operating cost uncertainty on mining project evaluation
AbstractMining projects are complex businesses that demand constant risk assessment. This is because several kinds of uncertainties influence the value of a mine project, typically. These uncertainties may be classified as exploration uncertainties, economic uncertainties and engineering uncertainties. The evaluation of a mine project under these uncertainties is a complicated job, which may lead to making a wrong decision by managers and stockholders. Therefore, at first, the engineers must recognize the mining uncertainties before carrying out the project evaluation. The economic uncertainties are the most important factors, which may affect the project evaluation. Among the mentioned uncertainties, the operating cost uncertainty is an important and effective factor, which is ignored to a certain extent.
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Bibliographic InfoArticle provided by Elsevier in its journal Resources Policy.
Volume (Year): 37 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/30467
Economic uncertainty; Metal price; Operating costs; Net present value; Binomial tree technique;
Find related papers by JEL classification:
- Q39 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Other
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