Broadening NPV through a multi-criteria optimisation framework based on CRC TiME values research
Research Program
Risk, Evaluation and Planning
Project Leader
Professor Erkan Topal
Project ID
2.9
Summary
The current industry practice in optimising a life of mine plan typically focuses on maximising Net Present Value (NPV) to cater to the interests of shareholders and the operating company. However, this approach often overlooks the diverse perspectives and priorities of other stakeholders involved in mining projects. The lack of consideration for these stakeholders can lead to incomplete strategic decisions and hinder constructive dialogue, potentially impacting the overall sentiment and support for the project. Recognising the necessity of stakeholder alignment and transparent decision-making, this project aims to develop a multi-criteria optimisation framework that incorporates a broader range of stakeholder perspectives, particularly focusing on post-mining economies and mine closure risks and opportunities. By addressing research gaps and integrating stakeholder values and risks into the optimisation process, the project seeks to enhance dialogue, mitigate risks, and foster greater acceptance of mining activities within society.
The research consists of two main streams: the first stream focuses on developing the optimisation framework to incorporate diverse stakeholder perspectives, while the second stream aims to quantify the varying perspectives of value and risk identified through previous research. By mathematically representing stakeholder perspectives and adjusting for time and risk, the project intends to create a more comprehensive approach to decision-making beyond traditional NPV maximisation. Ultimately, by aligning strategies with a wider range of stakeholder values, the project aims to enhance economic benefits, increase stakeholder acceptance, and mitigate key risks associated with mining activities, leading to more resilient and sustainable mine planning outcomes.
Project Partners
Curtin University, Quantified Strategies, South 32, Rio Tinto, MMG, BHP, Hanson, Iluka, Newmont, Roy Hill, Deswik, Anglo American, Office of the Queensland Mine Rehabilitation Commissioner
Duration
24 months