Evaluation Of Open-Pit Mining Projects With Different Waste Schedules.

It is possible to divide the general objectives of a company into two components: maximum expected profits and viability over time. These components are designed to maximize the companies value over time. The evaluation of a project includes both a discounted cash flow (DCF) analysis and a risk analysis. The DCF analysis determines whether the project should be accepted or rejected, and the risk analysis helps to forecast possible deviations from the original estimates. However, the results of both methods do not allow for a quantitative comparison between the main objectives of the venture, and they do not resolve the issue of whether it is advisable to sacrifice immediate profits for future profits. This paper attempts to resolve this issue. The present research was carried out on mining projects with different waste-extraction schedules. Calculations were made using the US Bureau of Mines' usage-of-costs model. Russian experience in open-pit mining is reflected in this paper.