Category Archives: Mineral economics

Project cost overruns: Implications for public disclosure.

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There is a long history of cost overruns in mining. By some estimates, average cost overruns for mining projects range from 20 to 60%. This is, particularly, interesting when you think of the fact that most of our rules governing … Continue reading

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The Molycorp story and government policy risks in mine or business valuation

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UPDATED 12/28/15 Molycorp stock continued to fall so much that Molycorp now trades under a new ticker symbol (MCPIQ) on the OTC Markets. ORIGINAL POST FOLLOWS In recent days, I have read a lot of news stories on the fortunes … Continue reading

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Why do we always find ourselves in this mess? — The constant cycles of commodity prices & production costs

This past week, I have had two conversations with friends that lead me to this post. Both friends work in gold mines and are worried due to uncertainty, brought on by the recent drop in gold price. It seems like … Continue reading

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How to develop mineral resources in uncertain times: The way forward for Africa?

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The last two editions of Mining Journal have included two articles about mining in Africa that have inspired this post. With commodity prices trending downward, it appears several African countries, have once again missed the opportunity to benefit, long-term, from … Continue reading

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Glencore Xstrata Update: $7.7b Writedown

This week marked a major update in the Glencore Xstrata acquisition, a topic I focused on over a year ago here. What was then a proposed merger became an all-share acquisition by Glencore to create the first commodities trader with … Continue reading

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Bull/Bear Markets and Mine Plans

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This week, I read several articles on gold’s bear run on the markets (you can find my favorite here). Several news outlets noted that gold dipped below $1,500/oz., which takes it below 20% of its peak price (the official definition … Continue reading

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Is open pit optimization helpful in mine planning for industrial minerals?

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In my time in the aggregates sector, I found that open pit optimization (i.e. determining optimal outlines à la Lerchs-Grossman or floating cone methods) is not widely used in strategic mine planning. In fact, this is the case in most … Continue reading

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