Mineral reserves under price uncertainty

Geoffrey William Evatt, Mousa Omid Soltan and Paul V. Johnson

Resources Policy, 2012, vol. 37, issue 3, 340-345

Abstract: National reporting organizations and regulatory bodies for the minerals and mining sector are requiring publicly reported Ore-Reserve estimates to take account of uncertainties. Whilst methodologies that account for physical uncertainty appear relatively well developed, methodologies which can take account of economic uncertainty appear much less so. To counter this shortfall, we present an efficient and general methodology which can quantify the effect of price uncertainty within reserve estimates, providing both the expected reserve size and the associated distribution (box whisker plot). This statistical information can be used by interested parties to understand precisely where the reserve risks lie, which we highlight in a worked example.

Keywords: Reserves; Uncertainty; Price; Natural resource; Real options; Mining (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420712000219
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:37:y:2012:i:3:p:340-345

DOI: 10.1016/j.resourpol.2012.03.004

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().