Mining project evaluation process for investment decisions: Demonstration of the risk assessment model - part three

Risk is a major factor in all mining activities, arising from many internal and external variables. The authors? research has resulted in a systematic method for the quantification of risk in mining projects (Park, 2012), and this research is being presented in a series of papers. The first paper (Park and Nelson, 2013a) identified the variables associated with risk in mining projects, and their effects and was published in the October issue of Mining Engineering magazine. The second (Park and Nelson, 2013b) discussed methods of assessing the overall risk associated with those variables (published at www.me.smenet.org), and presented a statistical model based on a survey of 31 experts. This paper will present an evaluation of the statistical model, using data from previous mining investment decisions in which the authors have been involved.