3 Day MBA in
Mining
DAY ONE
Stages in the life of a mine
• Prospecting
• Exploration
• Development
• Exploitation / processing
• Rehabilitation
Exploration
• Desktop studies
• Investment
• Imagery (GIS)
• Geochemical and geophysical surveys
• Drilling
• Deposit and resource modelling
• Commodity variations and interpretation
Types of mining studies
• Scoping level
• Pre-feasibility and feasibility
• Planning parameters
Case study: Reserves
The mining process
• Mining history
• Technical and non-technical
• Mine planning
Case study: Design and planning
Quantification and interpretation
• Methods of data gathering
• Quality parameters
• Process of reserves/resource generation
• JORC – Mining resources and reserves
Extraction / processing
• Surface mining methods
• Design, drill and blast, load and haul and
equipment
• Underground mining methods
• Development, production, ground
support, and ventilation
• Equipment selection
• Comparative analysis
• Productivity estimation techniques
• Mine processing methods
• ROM and product ore recovery
• Process design and development
Rehabilitation
Dewatering
Tailings
Site services and equipment
Layout / restoration / rehabilitation
Monitoring reclamation
Case study: Production fleet
DAY TWO
Operations into economics
• Justifying exploration expenditure
• Determine capital requirements for mine
development
• Mining equipment options
• Explore the financial statements
• Economic evaluation
Justifying exploration expenditure
• Evaluate the ore body
• Simple cost ranking techniques
• Incremental cost ranking
Case study: Evaluation of exploration
projects
Determining capital requirements
• Capital expenditure and risk reduction
• Delaying capital expenditure
Case study: Capital requirements
Mining equipment options
• Average cost ranking of material
movement
• Ownership versus leasing
Case study: Optimisation
Exploring mining financial statements
• The Profit and Loss (P/L)
• The balance sheet
• The cash flow statement
Case study: Mining and reporting
Economic evaluation
• Commodity specific approach to
valuation
• Modelling key economic parameters
• NPV/DCF
• Risk versus uncertainty
Case study: Discounted cash flow
DAY THREE
Raising funds
• Debt / equity / project finance
Case study: Investment decisions
The mining process
• Overview of mining contracts
• The mine life cycle - greenfields to
closure - and the relevant contracts
• Confidentiality, NDAs and exclusivity
• MOUs, JOAs farm-in and shareholders’
agreements
• Due diligence, mining leases, directors,
company history, project(s) and internal
approvals
• Applying a jurisdiction
• Consideration
• Force majure
• Contractual dispute resolution,
arbitration and mediation
• First right of refusal
Joint ventures
• Formation
• Considerations
• Unincorporated versus incorporated joint
ventures
• Optional joint ventures
Agreements of sale
Marketing and off-take agreements
• Pricing
• Flexibility
• Point of sale
• Contract options
• Form and measure
• Logistics
Mining equipment options
• Equipment leases
• Mining contracts
• Service contracts
• Employment and labour law
• Safety
The setting for negotiating a mining deal
• Whose team are you on?
• Objectives and stakeholders
• Cross-cultural negotiations
• Stakeholders
• Where does each party see value?
• How do people behave under different
market cycles?
• nterest-based negotiation
• Positional negotiation
• Goal and desired BATNAs and WATNAs
in the negotiation process
Trainer profile
Ted Blom is a Senior Mining & Commodities Strategist and Tactician with a Master’s Degree in Business from Wits Business School, commercial and law degrees from the University of Port Elizabeth and a PMD from Harvard Business School, which he attended as a Gencor employee (now BHP Billiton) in recognition of his contribution to the group.
In addition Ted completed his mineral economics qualification under the auspices of Professor Dennis Buchanan from Imperial College of Mining in London.Ted has also been grounded in strategic procurement negotiations by Vantage Partners, an offspring of HBS in Boston. Finally, Ted has been tutored in actuarial risk assessment and reduction techniques by ART in Zurich, a specialist risk financing division of the world’s largest insurer. Ted has over 27 years’ experience in management, finance, mining, commodities and strategy execution. Ted has led numerous investigations and projects in both the mining and energy spheres and advises and consults worldwide to companies, sovereign funds, hedge funds, investment banks, government mining ministries and investors. Ted has also chaired various mining and energy summits and led teams in mining company turnarounds. One of the rare all-rounders in mining, Ted’s hallmark is that he will leave each participant with fresh insight into the mining and minerals business garnered from his many interventions at blue chip companies, small miners and traders internationally.