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- W1034893990 abstract "Minable reserve estimation has a direct interaction with the ultimate pit determination in open pit mining. The most important factor in ultimate pit determination and consequently in minable reserve estimation is the metal price (fig. 2). Metal price fluctuations in recent years have been exaggerated and imposed a high degree of uncertainty to the mine planning procedure, while none of the existent algorithms of the pit limits determination such as Lerchs and Grossman, Zhao and Kim, Yamtomi, Korbov, Gershon, Wang and Sevim, Cai, Huttagosol and Cameron, Denby and Schofield, Tolwinski and Underwood considered the metal price uncertainty. Real Option Approach (ROA) is an efficient method of decision making in the conditions of uncertainty. This approach used for evaluation of defined natural resources projects up to now. This study with considering the metal price uncertainty used real option approach to prepare a methodology of determining the Ultimate Pit Limits (UPL) and also estimating the minable reserve simultaneously. At first it describes the method of modeling the price uncertainty by a binominal tree and then using a probabilistic approach describes how to find the exercise boundary of a project (equations 1 to 5 and tables 1 and 2). In the next step, this research adapted the ROA in a way that can be suitable for metalliferous projects. In doing so it used the concept of development options (alternatives) for managing the problem of having an unsteady resource against price fluctuations. Defining the concept of ‘option quality’, general model has been developed for explaining the NPV of the development options by the appropriate variables (equation 15). Based on this model, a multiple and time continuum analysis of the development options in a Price-Time plane by ROA applied to develop the curves which define the exercise and waiting areas for the assumed deposit. Based on these curves the UPL and the minable reserve of the assumed copper deposit can be simultaneously achieved for every point of the Price-Time plane (fig. 6)." @default.
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- W1034893990 title "Minable Reserve Estimation while Determining Ultimate Pit Limits (UPL) under Price Uncertainty by Real Option Approach (ROA)" @default.
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