Economic Evaluation of Mineral Projects : A Socio-Environmental and Economic (SEE) Model for Gold Projects

The policies and laws of the Government of Ghana, intended to attract foreign investment into the country have resulted in the revitalization of the mineral industry. However, there are social and environmental issues that have generated debate as to the real viability of mining projects. This book incorporates social responsibility and environmental liability costs in the evaluation of mineral projects. The model has been tested using two real gold projects in Ghana. Although the projects are profitable, the SEE model gives lower NPVs and IRRs when compared with those of conventional evaluable. But, it presents a more realistic judgement of the viability of the projects as it quantitatively and pragmatically accounts for the social responsibility and environmental liability costs of mining. This is an innovative approach to the problem of estimating social responsibility and environmental liability costs and assessing their effects on the viability of mineral projects prior to mining. This book will therefore be a valuable textbook for students and academics and a useful handbook for government and investors and all who care about sustainable mineral development.