Mineral X - Economic Evaluation Of An Industrial Mineral Project

THE title of this article is descriptive, but not complete, for psychological evaluation is almost as important as rigid economic evaluation. This refers to those human traits that cause people to be too optimistic about the projects they are sponsoring, to overlook obvious weaknesses, to base decisions on incomplete and inaccurate data, and to gloss over embarrassing problems. Investment of capital in a new industrial mineral project is warranted only after rigorous economic analyses based on unquestionable facts. A plunge into production cannot be justified solely because these minerals have been deposited in the ground and are therefore free. There are no specially favorable economic laws that make the business of industrial minerals more attractive than any other. The factors of supply and demand, marketing, technological changes, taxes, competition, and fluctuating prices apply as much to industrial minerals as to other business enterprises. What is more, industrial minerals are subject to the higher risks that all mining enterprises face.