Computer Aided Mineral Economic Evaluation

This paper covers the practical aspects of economic analysis of mineral ventures and the application of a publicly available computer program. The paper touches briefly on the time value of money concepts and the phases of project evaluation. The most comprehensive port ion of the paper deal s with the requirements for economic evaluation, including capital expenditure categories, operating expenses, required geological and engineering data, and tax considerations. Highlights of the 1981 and 1982 tax laws are covered. A case study using the MINECO computer program will be used to illustrate the economic evaluation concepts developed. Guidelines and goals of sensitivity analysis and Monte Carlo simulation will be discussed and demonstrated on the MINECO example. The MINECO software system will be displayed as an example of a "user-friendly", interactive, and flexible computer tool available to the mining professional today.