Mining and Metallurgy Engineering Bor (Jan 2023)
Factors and indicators of the geological and economic assessment of the coal resources in the Republic of Srpska as the starting basis for a deposit evaluation as a function of the national and commercial profitability
Abstract
The geological-economic evaluation of coal deposits in the Republic of Srpska includes two ways of evaluation the deposits: evaluation of coal deposits without taking the time factor into account (analysis the parameters of the static evaluation methods: economy and profit rate) and evaluation the three largest coal deposits (Gacko, Ugljevik and Stanari) with taking the time factor into account, evaluation the economic profitability (commercial and national). The following dynamic methods are used to assess the commercial profitability: Net present value, internal rate of return and cash flow discounting method for determining the return period of investments. The analysis of the economic effects of the investment project (assessment of deposit) is performed using a "cost-benefit" analysis. This analysis was performed using the following methods: NPV, IRR and DCFROI. As a part of the economic analysis, the analysis of the conditions of uncertainty is processed, i.e., sensitivity analysis of coal deposits, namely: static sensitivity analysis (determining the breaking point of profitability and critical price of a unit of mineral raw material) and dynamic sensitivity analysis, directed at the results of changes in parameters (income, costs, investments and legal obligations) to the changes in the calculated internal rate of return [2]. For the assessment of national profitability, the basic criterion of national profitability, net added value - NVA, is applied. In addition to the direct effects of coal production in the Republic of Srpska, on the national economy (financial income and expenses), the additional criteria were also analyzed: effects on employment, foreign currency inflow and international competitiveness, i.e., applying a "cost-benefit" analysis, an analysis of indirect effects is also performed (effects) of coal production on the national economy of the Republic of Srpska.
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