Introductory Mining Project Evaluation

Introductory Mining Project Evaluation

Areas of Study: Management

Qualifies for CMS

Qualifies for Certification

There are of a lot of unknown variables at the outset of a mining project. When the mining project is in operation, there is no crystal ball to tell exactly when the mining project will reach its maximum value. This course shows you how to arrive at the essential decisions, by addressing the unknown variables with the best assumptions that can be made based on the information that is available.

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  • Audience Level:
  • Professional
  • Enrollment:
  • Required
  • Duration:
  • 15 hours

Course Summary

Introduction

Most mining project investments are comprised of three factors:

  • the investment is partially or completely irreversible with significant exit costs;
  • there is uncertainty over the future returns from the investment;
  • the investor has some latitude relating to the timing of the investment.
These three factors interact to determine the optimal decisions in mining project investments.

There are of a lot of unknown variables at the outset of a mining project. When the mining project is in operation, there is no crystal ball to tell exactly when the mining project will reach its maximum value. Consequently, in any mining project evaluation, there are no clear answers for the questions below.

  • How much will the minimum initial capital cost be?
  • How much will the maximum mine value be?
  • How long will the optimum mine life be?
This course shows you how to arrive at these essential decisions, by addressing the unknown variables with the best assumptions that can be made based on the information that is available.

Course Structure

Introductory Mining Project Evaluation consists of 11 learning sessions with supporting figures, tables, examples, case studies and interactive course reviews. The concepts that are addressed in this course may not be easy to grasp at first and may require multiple revisions before a clear understanding is gained. Course participants are expected to thoroughly work through each example provided within the course by hand (the aid of Microsoft Excel is encouraged). This may be time-consuming; however, it is integral and will ultimately allow a successful completion of the course reviews. Total course duration is equivalent to approximately 15 hours of viewing and exercise content.

Learning Outcomes

  • Identify the basic principles and practical methodologies of mine project evaluation.
  • Apply these principles and methods to derivation of the project variables required for essential decision making.

Recommended Background

  • A degree or diploma in geology, mining or related discipline.

Micah Nehring

Micah Nehring is currently a lecturer in the Mine Planning stream of courses at The University of Queensland. His research focus is on the optimisation of mine production schedules using mathematical programming techniques. Future research will be directed toward integrating a carbon price into the optimised production scheduling process.

Prior to 2011, he worked as a lecturer and researcher at the Universidad Adolfo Ibáñez, Chile; a mine planning stream tutor at the University of Queensland; and a graduate mining engineer at Xstrata Copper Mount Isa.

Shahriar Shafiee

Sean completed his PhD in Mining Engineering with a focus on Mineral Economics and applied Real Option Valuation in mining projects through CRCMining at The University of Queensland. He has worked as an industrial consultant for Peabody Energy, Rio Tinto and Xstrata in Project Valuation and Mineral Price Modelling. He has also been actively involved in running short courses for ‘Mining Project Evaluation'. Sean completed an internship with InfoMine USA generating Australian coal cost models and comparing data from Australian coal mines to those in the USA. He has experience with the CostMine models and methodology. Sean has also published more than 15 Journal and Conference papers.

In June 2010, Sean joined JKTech as General Manager of R2Mining where he was strongly involved in the development of the CostMine Australasian business. This was a joint venture between JKTech and InfoMine.