Open AccessEconomic prospects of multiproduct manufacturing based on the Afrikanda deposit ores
Author(s) -
В. А. Маслобоев,
Sergey Fedoseev,
Pavel Tcvetkov,
Sergey V. Krivovichev
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/627/1/012012
Subject(s) - profitability index , payback period , production (economics) , phase (matter) , economic evaluation , capital (architecture) , business , environmental science , economics , finance , macroeconomics , geography , chemistry , microeconomics , organic chemistry , archaeology
This article describes the results of the economic efficiency assessment of the Afrikanda deposit (Russia, Murmansk Region) development based on the Monte Carlo method. The project was divided into two phases: Phase 1 – production of perovskite concentrate, phase 2 - production of TiO2, Nb2O5, Ta2O5 and REE concentrate. Comparative evaluation was conducted for two options: only phase 1 and phase 1 + phase 2. Obtained results showed that the profitability as well as the payback period of the first option, which is less capital-intensive, can be in 1.5-2 higher. Despite this, the NPV of the first option is 5 times lower than the second, and there are prospects for further growing of this gap beyond the 15-year evaluation period. It was concluded that there are significant economic opportunities of the integrated deposit development, which may be implemented with additional measures of state support.