Mineral Resource Valuation in the Public Interest (a286cbd9-5581-466c-84cd-9c8a5551e51f)

As the conflict between the mineral industry and preservationists steadily increases, it becomes urgent to determine as precisely as possible the costs of developing vs. not developing our domestic mineral resources so that enlightened mineral policy decisions can be made. A simple discounted cash flow equation is suggested as an approach to assigning a public-interest dollar value to mineral resources. Present value of a piece of land underlain by a mineral resource is taken as equal to the discounted cash flow derived from the resource corrected for present and future surface land values. The equation is effective as a base for mineral aggregate resource planning for metropolitan areas if transportation cost differences are substituted into the cash flow component. Suitably modified, the equation can be fitted readily into an existing computer simulation program for aggregate mineral resource planning in metropolitan areas. However, because of the lack of accurate input, the equation is less effective for other mineral commodities such as base metals and coal. Nevertheless, within a somewhat philosophical context, the equation still has utility and is effective in defining the problem of public interest values for minerals other than mineral aggregates.