MINSIM: A Computer Model For The Economic Evaluation Of Mineral Operations - Objective

To perform comprehensive economic evaluations on both existing and proposed mineral operations. Approach A comprehensive computer model was developed which is capable of evaluating the economics of an entire mineral recovery operation, including exploration, acquisition, infrastructure, mining, milling, smelting, refining, transportation, taxation, and return of and on capital. How it Works The MINSIM (MINe SIMulator) economic evaluation concept was developed by the Bureau of Mines in 1967. The initial versions used a continuous discounted cash flow rate-of-return (DCFROR) to measure the effect of changes in expected revenues and costs. Subsequent enhancements to the program have expanded and strengthened MINSIM, especially the addition of an option which determines total production cost (i.e., the commodity selling price that a mineral recovery operation would require in order to obtain a target rate of return), an expanded capacity for evaluating by-products from a mineral property, and significantly broadened taxation determining capabilities. The MINSIM computer program uses essentially the same procedures and calculations that are performed in a manual economic evaluation, although the program accomplishes its tasks much more rapidly and accurately, An experienced mineral economist may require a week to evaluate a single mining operation with the same detail and consistency provided by MINSIM in a matter of seconds of computer time.