Key aspects of mining projects investment

The development of mineral deposits is a complex and multifaceted process involving technical, economic and organisational challenges. However, despite the high level of risk, the mining industry is still an attractive sector for long-term investment. This necessitates the development of robust approaches for involvement of financial institutions in mining projects at different stages of the project life cycle. The objective of this study is to develop a methodology for investors' approaches to financing of mineral exploration and mining companies development projects. Each stage in the development of a mining project is associated with a specific set of studies that also identify the risks related to mineral deposit development. The results of such studies make it possible to develop pre-design documents of varying levels of detail, which investors rely on when taking financing decisions. Such documents provide a structured assessment of all Modifying Factors affecting mining and mineral processing, encompassing every aspect of the project from the mineral resource in situ to the final saleable product. As these factors get structured, and the project specific risks and features are understood at each stage of documents development, the project advances to the next stage of development, and. consequently, project capitalisation expands rapidly. The study concludes that these changes in project development stages, when considered along with other project parameters, form a relationship, which provides the basis for formulation of a methodology for applying different approaches to project financing. Adequate and timely financing enhances project performance at all levels.

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