Basic principles of engineering economics in the specific mining environment are presented. Topics include: time value of money concept, discrete and continuous interest, calculation, inflation and escalation, taxation, amortization, depletion and depreciation schedules. Cost and cut-off grade calculation, investment evaluation criteria and principles of the decision making in both deterministic and stochastic approaches are also covered. Based on this knowledge and skills acquired earlier in the program, a feasibility study of developing a mineral deposit is carried out. Assignments include computer programs related to various aspects of cost calculation and investment evaluation in the mining industry. (lec 2, tut 2) cr 3
