Impact of development strategies on the value of underground mining projects

Creating maximum value for shareholders within the underground mine planning process under varying economic and technical factors has become a reality. Since a single orebody can be accessed and developed in many ways, the different capital investment strategies used will have various implications on the value that is recognised. This paper illustrates the complexity that must be taken into account when evaluating different mining alternatives, and demonstrates the importance of the access development strategy to the calculation of project value. Through this investigation, the issues faced in applying different valuation techniques to mining projects are identified