ECONOMIC PROJECTION AND EVALUATION OF MINING VENTURE

The paper is dealing with a new approach and technique to evaluate entrepreneur ventures using computer aided economic projection system. The term “economic projection” represents ability to display given venture from engineer’s point of view (in constructive, object and process-oriented way) into financial reports and indicators over time. Eventually it enables the user to carry out financial, investment, sensitivity, risk, scenario and what-if analyses according to requirements. It opens possibilities for changes in design or plan in order to optimize given venture in terms of economic results. The introduction contains some critical views of contemporary state in given field, i.e. in evaluation and feasibility assessment of such capital intensive and time demanding ventures. In the next, it is dealing with mathematical formulation of the problem underlying new method and its computer realization. Finally, it presents practical application of the technique to an existing underground mine and mineral processing plant. The task was to make assessment of viability of a proposed mining venture on a selected part of deposit called Silver Vein. The study was to provide overall evaluation of the proposed venture, regarding many engineering aspects with eventually investment and financial analysis, risk and what-if analysis in defined cases, which were presented. The results show viability and optimistic outlook for this mining venture, certainly, at given declared conditions. Additionally, the study has encouraged for future research. The intention is to try to search for a balanced, although less profitable, but more socially oriented subvention-aided mining venture with mine expansion beyond limits of the selected parts of deposit and thereby to prolong the life of mine and to back employment in given region. Future applications being considered is to use the system at planning of highways and motorways within reconstruction of transport infrastructure, being pursued at the present time in Slovakia.