Converting Resources to Reserves

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Presentation transcript:

Converting Resources to Reserves

Porter’s Value Concept Applied to Mining Locate Valuate Establish Transport Beneficiate Market Divest/Sell After Vorster, 2000

Overview of the value chain analysis for a co-located coal and natural gas deposit Activity Definition Input Output Locate Determine extent and magnitude of coal and gas deposit Suspected coal and gas resources Resource estimates for coal and gas Valuate Determine profitability of co-located deposits Coal and gas resource estimate Bankable feasibility and “Go—No Go decision” Establish Implementation of extraction plan Coal and Gas resources prepared for extraction Transport Transport of mined coal and produced gas Coal and gas moved from mine to surface Stockpiled coal and stored or transported gas Beneficiate Coal is washed and gas is treated Saleable products Market Maximization of profit Revenue and profit Divest/Sell Curtailment of operations New Economic circumstances