Drebenstedt, C 2006, 'Financial Valuation of Mine Closure Alternatives', in AB Fourie & M Tibbett (eds), Mine Closure 2006: Proceedings of the First International Seminar on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 499-508, https://doi.org/10.36487/ACG_repo/605_42
(https://papers.acg.uwa.edu.au/p/605_42_Drebenstedt/)
Abstract: Remediation and aftercare jobs in the mining industry are often characterized by their long-term nature. The 
commercial evaluation, e.g. behavioural alternatives, are therefore based on an inter-temporal valuation 
approach. As the evaluated objects usually do not create revenue, the valuation criterion will be the expense 
parameter that is expressed as the cumulative cash value of all costs and the investments still to be decided 
upon and thus relevant for the payments to be made. This expense parameter will have to be interpreted as a 
negative revenue item, so that the valuation approach introduced herein is a special case of the approach used 
to determine the capitalized value of potential earning, which is dominating in the mining industry. This 
paper introduces typical reasons for a valuation, the valuation model and the conclusions for the model 
drawn from a sensitivity analysis. Problems arising when the model is applied are highlighted in a case 
study.