Developing a Software to Analyze the Sensitivity of Mining Economics in Iran

Category Petroleum Geology
Group GSI.IR
Location The 24 Symposium of Geosciences
Author Mohammad Kolahdoozan-Mohammad NoaparastMasoud Dorosti
Holding Date 13 August 2007
To determine the uncertain parameters in mining economics in Iran a software was developed using Visual Basic. This software can evaluate the sensitivity of economic indicators to the variation of input parameters. The results can be expressed in terms of spider diagrams. To evaluate the accuracy of this software, data from a coal mine called “Zemestan-Yort” in Golestan Province were used and it was cleared that the price of commodity is the most influential variable on economic viability of the operation as even the smallest variation of this parameter can present a pronounced economic effect. A 10% decrease in selling price causes a drop of 14% in rate of return. In the other hand an increase of 10% in operating costs causes a 4.2% decrease in ROR . However a 10% increase in labor cost or a 25% increase in mine life does not present a considerable change in rate of return and proved not to be vital.

tags: QAZVIN