Mining Project Value Optimization

Introduction

This book provides a holistic approach of integrated mine planning and scheduling to optimize mining projects using the discounted cash flow rate of return (DCF-ROR) method. There are nine chapters in the book. Chapter 1 is the Introduction, which provides overviews of mineral assets, minerals in Australia, mineral exploration, mining methods, and significance of valuation, optimization, and integrated mine planning.

Chapter 2: Mineral Resources and Ore Reserves Estimation

including grade composition method, inverse distance weighting method, ordinary Kriging method and block model.

Chapter 3: Feasibility Study

that delves into three phased feasibility study, namely scoping, prefeasibility and feasibility studies, data requirements, risk identification and mitigation in the feasibility study, and mining project cost estimation.

Chapter 4: Valuation of Mineral Projects

It starts with the time value of money; followed by methods to calculate cash flow, discounted cash flow (DCF), net present value (NPV), internal rate of return (IRR) and payback period; valuation methods, including market-, income-, and cost-based approaches; and finally the sensitivity study of key factors influencing the valuation of mining projects.

Chapter 5: Mine Planning and Open Pit Optimization

that covers different types of mine planning, block model valuation, Lerchs-Grossmann and floating cone techniques for pit optimization.

Chapter 6: Life of Mine Optimization

that details a case study of strip mining optimization using the DCF-ROR method and integrated LOM optimization of open pit mining.

Chapter 7: Production Schedule Optimization of Surface Mining

covering production schedule optimization, equipment availability and utilization, and loading and hauling equipment match optimization.

Chapter 8: Optimization of Underground Mine Planning and Scheduling

that delves to a case study of room and pillar mining optimization using the DCF-ROR method and mathematical programs for underground stope layout and production schedule optimization.

Chapter 9: Conclusion

of the book.

The book can benefit students and professionals in multiple ways. Firstly, divisions and confusions may arise from different contexts of technical frameworks, taxation, and relevant legislations in literature. Having quality contents in one book will improve the efficiency of study. Secondly, the inclusion of plentiful hands-on examples and calculation tables underscores the practical application of the concepts, bridging the gap between theoretical knowledge and real-world scenarios. Thirdly, the book adopts an integrated approach to evaluate and optimize mineral projects, utilizing methodologies such as DCF-ROR for optimization, ordinary Kriging for ore reserve estimation, and multi-level optimization including strategic planning, pit optimization, life of mine optimization, and production schedule optimization. Finally, the content is fully aligned with internationally recognized standards such as the VALMIN and JORC codes, ensuring compliance with industry best practices and guidelines.