Mining project evaluation process for investment decisions: Modeling and assessment of project risk - part two

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). This is the second part of a three-part series. The first part was published in the October 2013 issue of Minining Engineering magazine and can be found here at www.me.smenet.org. This paper discusses methods of assessing the overall risk associated with those variables, and presents a statistical model based on a survey of 31 experts. The third paper, to be publised at www.me.smenet.org on Oct. 14, presents an evaluation of the statistical model, using data from previous mining investment decisions in which the authors have been involved.