Mark Bristow, CEO of Barrick Gold Corporation, is quoted as saying that “No one made any real money during the last super-cycle” because as Jamie Polanski put it “the single-minded pursuit of production was destructive to margins and valuations.” AMC Consultants Principle Peter McCarthy said that “by second guessing the economic optimisation of the ore deposit, owners are obliged to pay for something greater and more expensive.” What followed the great commodity super-cycle was a lesson in austerity that now threatens the industry as “a reserve crisis in the gold industry now exists” according to Mark Bristow.
By emphasizing the primacy of the ore deposit this book unpacks the economic optimization of a mine so that mining teams can maintain capital investment discipline against consistent criteria. The temptation to pursue acquisitions or projects at any price is tempered by a fundamental understanding of an ore deposits economic capacity to deliver value. As Alfred Rappaport said: “The ultimate test of corporate strategy, the only reliable measure, is whether it creates maximum excess economic value for its shareholders.”
Craig Hutton, the author of this book, unpacks Mining Economics in a practical manner that is anchored in economic theory. The optimal size of any mining pursuit is ultimately measured by McCarthy’s “Hill of Value” formulation. Hutton has developed a robust tool to generate McCarthy’s “Hill of Value” in a fast yet detailed manner to test multiple production combinations saving on time and money to direct feasibility studies to optimal outcomes.
Neal Brewster, executive director at Elemental Economics commented that “ I found myself nodding along.” He went on to say that this book has the knack of translating theory into practical approaches alongside real world experiences from inside the mining industry, making it one of the more useful books on mineral economics that he has read.
4 reviews for Mining Economics Explained: A Guide for Boards, Executives, Managers and Investors
Pepe FB
Rated 5 out of 5
January 30, 2024
5.0 out of 5 stars
Book
Excellent text
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Jamie Fulloon
Rated 4 out of 5
October 3, 2022
Fantastic and Comprehensive Book!
Craig Hutton does a fantastic job of consolidating industry knowledge and creating recommendations regarding the planning, development and operation o...More
Craig Hutton does a fantastic job of consolidating industry knowledge and creating recommendations regarding the planning, development and operation of mines. He explores issues regarding the life of mines, feasibility studies, production curves and assessing mine feasibility and viability. The book is comprehensive and its good to see all his sources are listed at the end of chapters for the purposes of transparency and accuracy. Minor complaints include the repetitive nature of some chapters particularly in those regarding mine strategy, the occasional grammatical error and some diagrams are especially hard to read and grainy. Would still consider it a solid read!
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ChidoLib Customer
Rated 5 out of 5
May 4, 2022
5.0 out of 5 stars
An excellent technical work for non-technical readers
As a private investor and mining industry professional I found Craig's book to be highly relevant not only in the current commodities climate and inev...More
As a private investor and mining industry professional I found Craig's book to be highly relevant not only in the current commodities climate and inevitable boom, but mainly for me as investor to forge a deeper understanding of mining economics.
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Charles
Rated 5 out of 5
May 1, 2022
5.0 out of 5 stars
Excellent Up-to-Date Work on Mining Economics and Engineering
As a long time mine planner in industrial metals and materials, I got a great deal of good information from Craig Hutton's Mining Economics book. He g...More
As a long time mine planner in industrial metals and materials, I got a great deal of good information from Craig Hutton's Mining Economics book. He gives excellent methodology and background science for practical evaluation of prospective mine projects. I highly recommend this book.
There is a fraudulent one star review that has nothing to do with the actual book here. It appears to be a hit piece by some sort of anti-everything enviro activist. I googled Craig Hutton and I couldn't find anything about the anti-science person they are attempting to smear. I reported the review for abuse.
There is a fraudulent one star review that has nothing to do with the actual book here. It appears to be a hit piece by some sort of anti-everything enviro activist. I googled Craig Hutton and I couldn't find anything about the anti-science person they are attempting to smear. I reported the review for abuse.