An Introduction to Modelling Coal Project Finance

An Introduction to Modelling Coal Project Finance

Areas of Study: Management

Qualifies for CMS

Qualifies for Certification

This course serves as an introduction to the critical issues associated with debt financing of coal mining projects, illustrated by extensive practical examples. The course is aimed at professionals throughout the coal mining industry and assumes a basic appreciation of the main financial parameters of project financing.

Enroll for Access to All Online Courses

Enrollees have access to all self-paced online courses.

Certification available for Not Available
  • Audience Level:
  • Professional
  • Enrollment:
  • Required
  • Duration:
  • 10 hours

Course Summary

Introduction

An Introduction to Modelling Coal Project Finance serves as an introduction to the critical issues associated with the debt financing of coal mining projects. The aims and objectives of project financing are discussed with an overview of the steps leading up to application. The course is aimed at professionals throughout the mining industry and assumes a basic appreciation of the main financial parameters.

Logical guidelines on how to construct a preliminary level cash flow model of project finance are provided, with descriptions of the major input variables. Coal is used to demonstrate the principles of modelling project finance.

A background discussion on the technical aspects and major costs involved in coal mining operations is followed by a step by step guide to developing a financial model of a large-scale open pit project and an underground longwall project using the financial modelling software tool IC-CoalEval.

Course Content

The course comprises 18 viewing sessions at both summary and text level, multiple-choice reviews, and extensive worked examples for coal projects. Course duration is equivalent to approximately 10 hours of viewing content.

Learning Outcomes

  • Discuss the theory and requirements of project finance modelling based on spreadsheets.
  • Apply the IC-CoalEval software tool to coal project finance modelling.

Recommended Background

  • A basic appreciation of the main financial parameters of coal project finance modelling.
  • A basic appreciation of spreadsheet modelling applications.

Dennis Buchanan

Professor Buchanan works jointly between the Department of Earth Science and Engineering and the Business School at Imperial College London. His current research interest lies in addressing the underlying technical principles applying to mineral projects and demonstrating how these influence financial modelling. He has almost 40 years’ experience teaching mining geology, mineral exploration and mineral project appraisal and is responsible for the MSc in Metals and Energy Finance. This is a joint degree between the Department of Earth Science and Engineering and the Business School at Imperial College. Professor Buchanan has worked as a Mining Geologist in both gold and platinum mines in South Africa and had wide experience as a consultant to the industry, as an expert witness and in designing and delivering short courses for the industry.

Tim Shaw

Professor Tim Shaw passed away on April 21st 2017, at the age of 82. He was Emeritus Professor of Mining Engineering at Imperial College having retired in 2001 after being appointed to the Chair in Mining Engineering in 1980. Prior to that he held an academic appointment at the Virginia Polytechnic Institute. He entered the academic environment after a successful career in the South African mining industry where he reached the level of Chief Consulting Engineer with the Johannesburg Consolidated Investment Company. Professor Shaw had extensive experience as a technical consultant and company director and held honorary doctorates from two Central European Universities.