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It has long been recognised that applications of the Net Present Value (NPV) investment decision making methodology can have serious deficiencies in situations where investment can be delayed and, once made, various options allow increases or decreases in the level of output. NPV valuation can undervalue the project if it does not incorporate future flexibilities or ""options"". It is important to realise that a proper valuation of a project (ie, valuation of its future cash flows) must incorporate an analysis of optimal future decisions involved in managing the project. Current valuation cannot be divorced from a consideration of future decision making. There is now a considerable amount of literature, mainly academic, identifying and exploring ways of remedying these deficiencies in the application of NPV. While the necessity of period by period analysis is sometimes acknowledged, little if any practical illustrative model building has been published to date, aside from algorithms using continuous time stochastic processes which deny access to the uninitiated.

Jan 1, 1994

By J. Herhold, S. Plaum

"Current and future operational processes in the mining and underground construction sector are under the influence of the prevalent competition and the acute necessity of optimization approaches concerning corporate and project processes. Besides general construction procedures, especially underground construction procedures and procedures in the field of deep shaft construction are high-profile. Those processes describe high technical challenges as well as increased requirements to occupational safety and health. Therefor an occupational safety management, which should be adjustable to the company itself and adaptable to all kinds of projects, shall be created. The creation of such an occupational safety management would lead to an economically optimized and safe (within the scope of OSH law) implementation of internal activities for the performance of construction services underground and in the field of deep shaft construction. With this approach the satisfaction of the high safety request as well as the demand for process optimization, as part of keeping the own competitiveness, will be satisfied successfully at once. PROJECT BACKGROUND Introduction The health and safety protection as well as occupational safety look back on a long historical development, which had brought more important sectors and developments during the last years, not only in Germany but also on the European and international level. The accident insurance protected by law has already been reported in 1884, which is astonishing early. The launch time point is strongly connected with the on-going economic development in the end of the 18th century, but above all this increased in the 19th century. The progress of occupational safety and especially the interest in the integration and the concentrated consideration of occupational safety and the health and safety protection in the company process is strongly visible during the 19th century and directly connected to the industrial revolution. [9] The industrial revolution and with that the development of work places lead to changing demands in the field occupational safety and health and safety protection. Insufficient security precautions caused problems in the industrial revolution, such as personnel and material losses as well as serious injuries and their consequences. These and the fundamental economic endeavours of the entrepreneurs lead therefore to the important step to develop an occupational safety system. [9] The prevailing basic ideas seize the insufficient security precaution of work places as well as the economical and profitable ideas of the entrepreneurs and bring them together. From this the necessary entrepreneur’s task comes into being and that is bringing the work conditions to the way that life and health of employees are not in danger. [9]"

Jan 1, 2017

By J. Herhold, S. Plaum

"Increasing worldwide energy demands, coupled with desires for cleaner energy, have led to greater research of renewable energies. Strongly weather-dependent energy sources, e.g. solar and wind energy, are unable to provide a constant control energy to withstand the fluctuation of the extensive power systems during peak hours. The pump storage plant Nant de Drance in Switzerland will not only have the capacity of a nuclear power plant, producing 900 MW, but will also combine the environmental aspect and the demand for controlled energy. Nant de Drance is one of the pioneer projects for upcoming energy challenges and serves as a model for future pump storage plants. This paper focuses on the planning process and the project execution of interdisciplinary large-scale projects such as Nant de Drance, including project related data handling, communication systems and project handling skills. Furthermore, the paper discusses mining excavation in the context of large scale projects and their regional environmental challenges, e.g. high alpine rock mass on the site of Nant de Drance. PROJECT BACKGROUND Project Overview Nant de Drance is a 900 MW pump storage plant located in the Swiss Alps. To provide such a high energy storage, six turbines (reversible Francis type), each with a capacity of 150 MW, were installed. Due to the efficiency factor of 80% the pump storage plant is able to provide an energy production of 2500 GWh per annum. Construction of the pump storage plant, which has been selected as “Major Tunneling Project of the Year” in 2014 by NCE and ITA-AITES, will be completed over 10 years. Therefore, the project has been divided in six major phases outlined below: - Launch: 2008 - Access Gallery: 2010 – 2012 - Excavation KMA, KTR: 2011 – 2014 - Concreting KMA, KTR: 2014 – 2016 - Installation of HEM equipment: 2014 – 2018 - Tests & entry into service: 2017 – 2018 Figure 1 outlines the single process phases of the project. For the construction of the shafts, galleries and caverns, 1.7 million m³ of metamorphic rock with sedimentary origin (mica schist & paragneiss of the massif „Aiguilles Rouges“) were excavated. A tunnel network with a total length of 15 km was created. The machine cavern measures 194 m long, 32 m wide and 52 m tall."

Jan 1, 2016

By Donald G. Dahle

Project Payette is a conceptual nuclear experiment under the Vela Uniform program intended to further evaluate the mechanism of seismic decoupling. Vela Uniform is a Department of Defense program to improve this country's capability to detect, locate and identify underground nuclear detonations. This program evolved from recommendations of the Panel on Seismic Improve¬ment, (Berkner Panel), an officially appointed group of noted U. S. scientists. This Panel, taking note of difficulties in detecting the differences between some underground nuclear detonations and some earthquakes recommended a program of increased basic research in seismology. The theory of decoupling, Which involves possible reducing of seismic motion resulting from underground explosions by reducing the coupling or physical linkage between the explosion and the geologic environment, was investigated by Dr. Albert latter and his associates at RAND during the late 1950's. The concept has been further investigated theoretically by scientists of the Lawrence Radiation Laboratory and the Sandia Laboratory. The theory has been tested experimentally under Vela Uniform Projects Cowboy, Dribble and Sterling. The Salmon Event of Project Dribble was a tamped (with the explosive in firm contact with the geologic formation) nuclear detonation 2700 feet below ground in the Tatum Salt Dome. Project Payette, if found to be feasible and if authorized for actual execution, would become a decoupled experiment in the same environment.

Jan 1, 1968

By Ronald B. Stone

This paper describes a proposed solution to the problem of mining a 315 foot diameter unsupported sphere at a depth of 2700 feet in a salt dome by conventional mining methods. The proposed solution utilizes many of the varied technologies available to the mining engineer for solving mining and underground construction problems. The following are reviewed in the paper: A. The location of the sphere within the dome as required by construction criteria. B. The relation of the location of the access shafts to the sphere. C. The rock mechanics theory in relation to the salt dome and large size of the excavation. D. The proposed "honeycomb" method of mining which will be a partial answer to rock mechanics stability requirements. E. The equipment which it is recommended be utilized to accomplish the construction. F. The rock mechanics measuring instruments proposed. G. The methods of disposal of the mined salt. Conclusions and areas of further study are outlined in the final statement.

Jan 1, 1968

By Jr. Kermit Allen

A study was conducted for the AEC to determine the feasibility of constructing an unsupported 315 foot diameter spherical cavity at a depth of 2,700 feet in a salt dome. A cavity of this size and shape has never been attempted. It was determined that the three basic essentials for solution mining; adequate salt, fresh water, and a means of brine disposal were available at the Tatum Salt Dome in Lamar County, Mississippi. Assuming a large, unsupported mined opening of the size and at the depth required would remain stable, the most practical method of providing the cavity using solution mining techniques is by use of a movable blanket of air to control the water level to properly shape the cavity while removing the insolubles either with jetting or by conventional mining methods. It is estimated that, using the jetting method of insolubles removal, the cavity can be constructed in 24 months for approximately $7 million. Using conventional mining techniques to remove the insolubles and shape the final cavity, it is estimated that the cavity can be constructed in 36 months for approximately $12.6 million.

Jan 1, 1968

By C. Twigge-Molecey

All projects that are implemented, have been given corporate go-ahead on the basis of a set of clearly defined targets. These are typically a production goal at a capital cost, operating cost and production schedule, that will yield an acceptable return on investment by the companies internal criteria. The challenge for the implementation team is two-fold, firstly to properly define the project criteria prior to board approval and secondly to deliver an operating facility that meets these objectives, in particular the ROI. The paper addresses the issues a project team and the company management must address for a successful project. Key questions that will be explored are: ? What is the status of key technologies? Are they well proven in commercial practice, completely novel or in between? ? Is the project schedule driven by market constraints or cash flow constraints? ? Are the risks of fast tracking worth the potential rewards? ? For a retrofit project, are all the technical and production interfaces and issues known at the time of approval to proceed? ? How much should be invested in technological development and engineering and at which phase? ? For an owner-operator, how much responsibility is it wise or appropriate to push down to vendors? The answers to these questions for a specific project will define how you go about a project, the resources required, the contracting strategies, the phasing and the appropriate level of investment in the definition and procurement phases, prior to starting major capital commitments and construction.

Jan 1, 1999

By A. P. L. Kotzé

This paper gives a brief description of the control measures used in the establishment of the Grootegeluk Coal Mine, near Ellisras in the Transvaal. Specific reference is made to the planning offunds, cost and financial control, and economic evaluation.

Jan 1, 1982

Paper written on project work carried out in partial fulfilment of BSc Engineering (Mining) The aim of this project is to determine whether certain pillars occurring within the no. 1 shaft and no. 2 sub-shaft ground are feasible for extraction. The extraction of these pillars is essential in prolonging the life of Kloof Main Shaft as its VCR resource becomes depleted. Extraction of these pillars will require a combination of designs and factors, with rock mechanics and ventilation being the main considerations. Primarily for the pillar extraction, an initial production target of150 kg gold, mine able in one year from commencement of ?opening up? was set. The planned target has been exceeded and the feasible pillars identified are expected to yield an additional 1 390 kg of gold to the shaft?s production profile. However, not all the required ventilation designs have been completed to date, the reason being that at the time of the project, many of the pillar areas were inaccessible and thus ventilation conditions are unknown. This project is therefore an ongoing process and will require further design once all targeted pillar areas have been opened up. A preliminary costing analysis of the pillar mining was performed and it was found that all targeted pillars with the exception of 38?61 pillar are profitable.

Jan 1, 2005

By L Lorenzen, H Muller

"Every year a large number of projects are evaluated by small listed and unlisted mining companies that are hoping to find the ideal project, which will catapult them from a mining junior status to that of a mid-tier mining company. Usually this includes finding the æidealÆ or ærightÆ orebody and then developing a process which will allow cost-effective recovery of the valuable metals and the production of a saleable product. These dreams are seldom realised and there are a number of good and obvious reasons for this. Issues that are generally high up on the agenda for the smaller companies are: cost of developing a project before the feasibility study stage finding a suitable, or optimum processing technology financing of the project dealing with risk.The most expensive part of the development process for the small miner is often the exploration side of the business and finding the æidealÆ orebody. However, finding the right orebody will not be discussed in this paper. The æidealÆ orebody does not necessarily solve the problems of the mining junior, as much of the uncertainty lies in the process required to recover and produce the final metal product. Once a mineralised deposit has been identified and the grade at least reasonably qualified, the development of a suitable process becomes the driver to convert the deposit into an orebody. This paper proposes that a small exploration company has a very limited opportunity to succeed if it does not do sufficient homework before it identifies the æidealÆ orebody. The risk profile for the small mining company, by its very nature, has to be different to that of a major company and as a result the opportunities often lie in managing different and often new process options, which may be the key to bring such projects on line successfully.CITATION:Muller, H and Lorenzen, L, 2012. Project selection and process development for mining juniors, in Proceedings Project Evaluation 2012, pp 149-158 (The Australasian Institute of Mining and Metallurgy: Melbourne)."

May 24, 2012

By S. Vujic

The exploitation of stone (trachyte) at the ?Srebro? open pit mine, located on the northern slopes of the Fru?ka Gora National Park (Serbia) central area begun in 1964. Stone exploitation in this locality does not endanger the environment in an ecological sense, does not pose a threat to plants and animals, and apart from the terrain configuration changes, it did not leave behind permanent consequences to the environment. Projects for permanent cessation of mining operations and for land reclamation and spatial arrangement were completed in these circumstances. The paper gives a short review of the condition at the open pit mine; furthermore, the key problems and basic demands are presented, together with a concept of technical and biological land reclamation and the spatial arrangement of the mining complex. Keywords Open pit mine, land reclamation, spatial planning, spatial arrangement, National Park, Fru?ka Gora, Srebro.

Jan 1, 2011

By Steve Thoman

After the 1989 Loma Prieta Earthquake, the California Department of Transportation (Caltrans) initiated an overview of the Caltrans Bridge Design Specifications (BDS) and bridge seismic design practice in California. This overview is continuing under the direction of the Applied Technologies Council (ATC-32), to review and revise as necessary existing standards, performance criteria, specifications, and practices for design and construction of new bridge structures within California. The ATC-32 project began in August 1991 and is expected to be completed in 1995. Since 1990, Caltrans project-specific seismic criteria have been developed and implemented on the I-280 and I-480 projects in San Francisco. Caltrans and an independent seismic safety review panel continue to develop and implement these criteria on other projects. In 1991 and 1992, project-specific seismic criteria were used on the I-880 reconstruction project in Oakland. The seismic safety review panel considered the I-880 seismic design criteria a state-of-the-art methodology to ensure seismic safety against collapse of bridge structures subjected to a maximum credible seismic event. This paper highlights the 1992 "I-880 Reconstruction Project Seismic Design Criteria Review" report prepared by the Seismic Safety Review Panel and Caltrans Division of Structures and will compare pre-1989 BDS and AASHTO methodologies to the I-880 criteria.

Jan 1, 1996

By R. G. Koelmans

In 2001 Platinum overtook gold in foreign revenue earnings for South Africa. The export sales from platinum group metals amounted to R29.3 billion as opposed to gold export sales of R28.6billion1. Organizations must undertake new ventures to replace old, worn-out and obsolete assets with new ones. These assets could be a building, a new product or process, a new mine, or anything that can help the organization to achieve its objective. These ventures are projects by their nature. When a project is pronounced a success, the judgement is usually based on some factual evidence, although not every one uses the same data. From the literature, it is obvious that there is a lack of consensus and objectivity as to what constitutes a successful project. The purpose of this paper is to address the following questions: ?What constitutes a successful project? ? How does one measure project success? ?How can one work toward project success? This paper addresses the requirements for project success of three of the primary stakeholders of a project, namely the business or client, the employees as far as the project team is concerned, and the local community. Indicators are developed into a work breakdown structure (WBS)-like chart to demonstrate success indicators. These indices take cognisance of all the constituents required for project success. The indicators are further developed to take cognisance of the requirements of the local communities. These indices are then weighted to arrive at a total score for the respective stakeholders. Using these WBS models, the success and performance of a project can be evaluated. This score is considered an objective measure of project success. Projects are evaluated more consistently across different projects and the project manager is provided with a management tool that can assist him/her in ensuring greater project success. The shortcoming of this approach is that the weights of the different indices have been estimated at this stage. Research will have to be conducted to more accurately reflect the weights assigned to the indices.

Jan 1, 2004

Project Sustainability Assessment - Matching Method to Enterprise Size Sustainable development requires managing natural resources, including minerals, in a way that is conducive to long-term wealth creation and the maintenance of capital (natural, social, human, economic and physical). One aspect of the minerals sustainability discussion focuses on replacing depleted mineral capital with other forms of capital so as to ensure that the contribution of a mineral project is net positive over its life. Another, equally important, aspect focuses on selection of projects and technologies that contribute to the achievement of a variety of sustainability objectives, such as environmental protection, efficient use of resources, water and energy, worker health and safety, and the equitable distribution of risks and benefits within and across generations. Technical feasibility and relative economic performance remain necessary decision criteria for mineral investment decisions, but they are no longer sufficient. Enterprises, regardless of size, are now confronted with the challenge of comparing investment alternatives based on a new, broader set of criteria. The field of integrated sustainability assessment (ISA) emerged in response to this changed social and business environment. ISA is a structured process for examining the economic, social and environmental impacts of a project or technology. The purpose of an assessment can be broad, a strategic review of corporate behavior for example, or quite narrow, input to a specific decision process such as the selection of a piece of equipment. There are numerous methods and analytical tools available to conduct ISAs and selection of the most appropriate for a given situation will depend upon temporal focus (retrospective to prospective), decision context (strategic, tactical or operational), and phase of the assessment process (problem structuring, analysis, resolution, ex post review), among others. Selection also depends upon enterprise size and the attendant availability of financial and human resources. Large multi-national firms often undertake complex, data intensive sustainability assessments, in part because the projects they are involved in are multi-faceted, long term, and require significant financial investments. Small and medium sized enterprises are seldom able to commit the same level of resources to an ISA, and if the projects they undertake are less complicated, a time consuming and detailed assessment may be unnecessary. Regardless of enterprise size, the tangible and reputational benefits of conducting as ISA must exceed the actual monetary cost of doing so. This presentation will provide an overview of available ISA tools, categorising them in terms of their data requirements, methodology, outputs and applicability in various decisions contexts. Distinction will be drawn between situations where reasonable approximations of project impacts can be expected to provide an adequate amount of information and those for which more detailed analysis is essential. Finally, ISA strategies that have been successful and cost effective at different scales of business enterprise will be identified. This is an abstract only. No full paper was prepared for this presentation.

Sep 13, 2010

By D. C. Andersen, G. L. Smith, A. M. Marsh, J. Pearson-Taylor

Central to the success of any mining company is the ability to manage capital investment effectively so as to ensure acceptable stakeholder returns within an overall strategic context. Critical to this process is the effective selection and implementation of a strategically aligned project portfolio that enables optimal resource exploitation while operating within mandated bounds and identified constraints. Consideration is given to the strategic long-term planning process, an investment prioritization methodology and specific tools and techniques based on the discounted cash flow philosophy.

Jan 1, 2006

By G. L. Smith

Central to the success of any mining company is the ability to manage capital investment effectively so as to ensure acceptable stakeholder returns within an overall strategic context. Critical to this process is the effective selection and implementation of a strategically aligned project portfolio that enables optimal resource exploitation while operating within mandated bounds and identified constraints. Consideration is given to the strategic long-term planning process, an investment prioritization methodology and specific tools and techniques based on the discounted cash flow philosophy.

Jan 1, 2007

By Corinne Boone

CO2e.com, LLC - launched in November 2000 - aims to be ?the global hub for carbon commerce.? CO2e.com is a subsidiary of the Cantor Fitzgerald Group, one of the world?s leading brokerage firms Recent Investor in CO2e ? Mitsui & Co. Alliance with Cantor Fitzgerald Environmental Brokerage Services Group (CFEBS) Offices in London, Toronto, Tokyo, New York, San Francisco, Los Angeles, Connecticut, Houston Primary Goals/Benefits of ET § Goals of Emissions Trading: ? Permit Industrial Growth/Expansion ? Promote Economic Efficiency and Flexibility in Meeting Air Pollution Standards § Benefits of Emissions Trading: ? Enhance Air Quality w/o Economic Stagnation ? Encourage Development of New Technology ? Foster Most Efficient Use of a Limited Resource -- Clean Air § Contributes to Sustainable Development and objectives of UNFCCC, Kyoto Protocol?.

Nov 1, 2002

Project-finance risk assessment is mature and approached systematically. Mining industry due diligence remains fragmented with specialists addressing different aspects of the project such as reserves/JORC, environmental impact, commodity market, even financial analysis/ modelling. Each professional has a natural tendency to believe that the risk factors they have examined are the key ones necessary to be reviewed, as if their review will stand in isolation from others in the way a project materialises. By first laying out the project risk categories and risk matrices, this paper examines the due diligence process with a keen eye to the risk assessment and overlap/interaction. Some cross fertilisation of due diligence techniques from other industry sectors is placed into the mining context. Six case studies are then presented with regards to due diligence features in each projectÆs feasibility review or financial information/ offering memorandum. A power case first shows the differences between the due diligence expectations of banks versus bond financings. Then some Australian and Indonesian mining development cases are analysed to see the due diligence learning points. Some of these were project/due diligence failures. The conclusion focuses on the value of a systematic risk assessment for project evaluation, all from the project-finance perspective.

Jan 1, 2007

By C. Patrick, T. Combs

The purpose of this paper is to provide a method for analyzing the sequencing of mining production processes and predicting the effects of any planned changes. Included is a description of the development and utilization of a project-scheduling simulation that combines analytical scheduling with stochastic-activity durations. The simulation is demonstrated in two realistic examples: a longwall face-to-face transfer sequence and the effect of varying advance rates on longwall development sections. Statistical data that can provide a basis for more informed production decisions are generated in the form of project activity/path criticality and project-duration distributions. In both examples, a quantitative risk assessment, regarding subjective decisions in underground production sequencing, is presented.

Jan 1, 1996

By G. P. Kundargi

India is one of the fastest growing economies in the world. The role of the Iron & Steel industry is very important for the development of the country. Iron and steel are among the most important components required for the infrastructure development of the country. This is one of the fastest growing sectors. The demand drivers for the Indian Iron & Steel industry are increase in the activities of the manufacturing industry and infrastructure development. Indian Iron & Steel industry with its strong forward and backward linkages contributes significantly to overall growth and development of the economy. The industry today directly contributes 2% of India?s Gross Domestic Product and its weightage in the official Index of Industrial Production (IIP) is 6.2%. Manganese is a main ingredient for production of steel. Almost 90% manganese is being utilized by the steel industry worldwide. Globally, there is no substitute for manganese as on date. There is huge gap between demand and production of manganese ore in the country. To meet this demand gap and to support for growth of national economy, MOIL Limited (formerly Manganese Ore India Limited), a Government Enterprises, producing annually around 1.1 million tonnes (mt) of manganese ore and value added products, has geared up with various infrastructural activities to increase the present production capacity of 1.1?1.5 mt in 2016?2017 and 2.2 mt in 2020?2021. The paper deals with the technological improvements and infrastructural development activities of MOIL; this will help MOIL to become the market leader in manganese ore production globally in the coming years.

Aug 1, 2013