Dynamic Control of a Mining Enterprise

"In an earlier paper the author explored the consequences of price-stabilizing effects, on an industry-wide basis, of various production strategies. These ideas have now been applied to an illustrative case of an individual mine. It is shown that the turning of production and financial policies can affect financial performance over a five-year period by as much as 22 per cent.No generality is claimed for the results and they would differ from mine to mine. It is, however, asserted that the results show that the proper turning of production, reserves and financial policies are more critical determinants of mine performance than has been realised. It is also asserted that the methods of dynamic analysis are the most appropriate means for studying this policy-design problem."