Investment Risk Assessment of the Expansion Consideration for an Old Lignite Mine

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Authors

  • Kaushik Dey
     Department of Mining Engineering, Indian Institute of Technology, Kharagpur - 721302, West Bengal ,IN
  • Ajay V. Gupta
     Vastan Lignite Mine, GIPCL, Vastan - 394110, Gujarat ,IN
  • Jayanta Bhattacharya
     Department of Mining Engineering, Indian Institute of Technology, Kharagpur - 721302, West Bengal ,IN

DOI:

https://doi.org/10.18311/2meoga/2024/v1i1/44659

Keywords:

Break-Even Stripping Ratio, Evaluation, Financial Feasibility, Investment Rick, Mining Option

Abstract

Investment risk assessment is an important and complicated aspect of the mining life cycle. Variations in mineral pricing, market demand, socio-economic issues etc. affect the investment decision critically. Investment risk for a lignite mine, captive to a thermal power plant, is analyzed and reported in this paper. The mine is proposed for an extension with different influencing parameters: poor slope stability, socio-economic issues, limited mining options and difficult terrain conditions. Modified Break-Even Stripping Ratio (BESR) analysis is carried out for the evaluation of mining extent. The modified BESR approach includes the financial liability of the constraints influencing the mining costs. It is observed that up to a 66 Ha area out of the available 126 Ha area can be mined profitable and worthy of investment. The decision to extend mining beyond this area may lead to severe financial loss.

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Published

2024-08-01

How to Cite

Dey, K., Gupta, A. V., & Bhattacharya, J. (2024). Investment Risk Assessment of the Expansion Consideration for an Old Lignite Mine. Mineral Metal Energy Oil Gas and Aggregate Journal, 1(1), 31–41. https://doi.org/10.18311/2meoga/2024/v1i1/44659

Issue

Volume 1, Issue 1, March 2024

Section

Technical Article

 

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