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How to calculate the economic viability of mineral deposits

Toolkit for assessment of mineral resource projects now available online

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16.02.2021 |

In many partner countries of German development cooperation, the mining sector is a potential driving force for sustainable economic development. In the respective countries, the development and management of the mining sector is the responsibility of the national mining authorities. However, these authorities often lack the necessary specialist knowledge to adequately assess the economic prerequisites for and the associated potential of each future mining project as well as its impact. Therefore, proper development of new mining projects often encounter difficulties or even fail from the onset.

This is where the Toolkit comes into play, which was developed as part of the "Extractives and Development" sector programme (Sector Programme) together with experts from the German Federal Institute for Geosciences and Natural Resources (BGR). It provides the competent mining authorities with a tool for the economic assessment of potential mineral resource projects, which can be used both in an early stage of development and in the subsequent feasibility study phase.

Successfully implemented for the first time in 2016 in the Tajik Main Department of Geology, the Toolkit has now been digitalized as an online course and published on the website of the Sector Programme. Thus, the Toolkit is now globally available to all geological experts from state authorities, companies, educational and scientific institutions and other interested stakeholders.

The participants of the online course will learn to determine the value of mineral resources in relation to their profitability not solely based on theoretical calculations. Rather, the Toolkit explains how to address other essential factors such as infrastructural or other geography in the profitability calculation and to compare various deposits of a mineral resource with one another. The results of such calculations provide national authorities with a sound basis for decision-making and hence allow for a strategic management of the extractives sector.

 

For further information please contact Nils Wortberg.

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