Mining Economics

This course provides participants with a solid foundation in the fundamental principles of mining economics. It focuses on cost efficiencies involved in every step of the mining process and provides an introduction to systematic planning and the importance of engineering decision-making based on costs. Each participant will receive a set of financial modelling templates and Dr Ian Runge’s Mining Economics & Strategy textbook.

Course Content

Integrating economics into mining

Overview of the Mine Planning process, and application of economic evaluation procedures.

Time value of money

Value at a constant point in time, discounted cash flow analysis, discount factors (risk & uncertainty), and inflation.

Break-even analysis

Discounted cash flow ranking criteria, and discounted average cost.

Capital & operating costs

Machine life & capital cost, operating costs, and first principal cost modelling.

Cost effective mining schemes

Systematic planning process, and economic data at each phase of the planning cycle.

Costs from an economic perspective

Economic definition of cost, types of costs, and average verse marginal costing.

Development strategies for maximum value

Undeveloped deposits, initial assessments, and capital values & development strategies.

Investment decisions

Payback, sensitivity analysis, and other subjective measures.

Learning outcomes

  • Describe best practice systematic mine planning.
  • Explain the importance of engineering decisions based on costs.
  • Create cash flow models.
  • Perform break-even analysis.
  • Describe costs from an economic perspective.
  • Perform incremental & marginal cost analysis.
  • Apply economic criteria to real-life decision making

Who is the course for?

  • Mine Planning Engineers
  • Financial Accountants
  • Business Analysts
  • Mine Management / Superintendents
  • Management Consultants

Want to learn more?

Contact [email protected] 

Delivery mode

Classroom or Remote


Classroom – Two Days
Remote -10 hours (5 x 2 hour sessions) plus additional workshops to be completed outside sessions.

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