Study program:
Mining Engineering (III semester -PhD) |
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Name of subject: Technical and economic evaluation of mining project 2 |
Instructors:
Prof. Dejan Stevanović |
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Status: Optional |
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ECTS: 10 |
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Prerequisites: no |
Course Objectives:
Aims to help candidates to understand concept and strategy of mining economics; The economic minerals: Resources and reserves; Patterns of production, consumption, transportation, and marketing etc. Perspective of the past, present and future supplies of minerals worldwide; Finance and economic analysis and interpretation; The concept of cash flow and time value; Sensitivity and risk analysis techniques etc.; Introduction to writing of technical reports and feasibility study reports using spreadsheet computer applications. |
Learning Outcomes:
Candidates should be able to:
-Develop effective and practical financial modelling techniques
-Discover the distinction between cash flow and profit in mining
-Understand the theory behind discounted cash flow analysis, NPV, IRR
-Learn the difference between cash costs and full costs in mining |
Content:
Theory teaching
This course covers the following broad topics:
- Economic Environment and Mine Planning (Economics factors, Mineral supply and demand, Mine revenues)
- Mine Planning Process (Steps in the planning process, Role of Feasibility studies, Mining Method Selection)
- Financial Concepts (Time value of money, Present value & annuities, Decision analysis techniques)
- Mining Economics (Economics and theory of the firm, Modeling the life of mine exploitation)
- Cost Estimation (Capital costs, Operating costs)
- Mining Strategy (Block economic value, Ultimate pit optimization,Mining sequence and scheduling, Cutoff grade theory)
- Mine Project Evaluation (Financial Technical Modeling)
- Mine Planning & Evaluation Case Studies (Metalliferous case study, Coal case study Practical teaching
Construct cashflow pattern over project life, tax structure, and time diagram. Analyze mine valuation techniques, Introduce technical writing report. |
Suggested Reading List:
- Ian C.Runge, Mining economics and strategy, SME, 1998
- Bruce Cavender, Mineral production costs – analyses and management, SME, 1999
- Ted G. Eschenbach, Engineering economy, Oxforduniversity Press, 2003
- Nikola Dondur, Ekonomska analiza projekata, Mašinski fakultet, 2002
- Uputstva za rad - XERAS
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Conduct of the Course:
This course uses a number of different teaching and learning approaches including:
Lectures,Tutorials,Software applications,Self-directed activities |
Fund hours:
| Lectures |
Exercises |
Other forms of teaching |
Study research |
| 4 |
0 |
0 |
0 |
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Assessment:
| Final Exam |
ECTS |
| Oral Exam | 35 | | Written exam | 25 |
| Classwork Assessment |
ECTS |
| Class Participationа | 20 | | Practical Classes | 20 |
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Additional Assessment Criteria: - |
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