Effect of investment efficiency on open-pit boundaries

N. N. Belyakov

Open-pit boundaries are typically planned based on the condition of the maximum Net present value (NPV), which is achievable over the openpit life cycle. This criterion provides the maximum profit and corresponds to a high level of the Cash flow thus meeting the objectives of the openpit management team. However, mining begins with investor’s confidence in the sufficient efficiency of investments. With that, the condition of profit-making is incomplete. The Marginal efficiency of investments is limited by the maximum efficiency of investments for alternative scenarios of the available investment projects. Application of the method of open-pit boundary planning with due account for investment efficiency will provide greater investment opportunities for the mining sector.

№5 (117) 2014

Key words: open-pit boundary planning, efficiency of investments, open-pit development stages

Mining Industry Journal №6 (118) 2014, p.87