Comprehensive Strategic Risk Management System to Reduce Evaluation Times in Small-Scale Mining Projects

Abstract

Mining investment represents high risk for any company within or outside this area, and this has repercussions, above all, for the small companies that do not have any investment capital that they can set aside. The methods used to assess investment projects are traditional, with economic estimates such as the Net Present Value (NPV) to determine the project’s profitability. However, these methods do not assess risk factors or qualitative variables, such as socio-environmental factors or the project’s limitations on a supply chain. Given the uniqueness of each mining project variable, a systematic tool simplifying variable identification and ensuring an accurate evaluation of the mining project in its prefeasibility stage is required. This research aims to create and implement the Risk Management Balanced Scorecard approach as a project evaluation tool that will help reduce the evaluation times and implement the project risk variables, which will be analyzed by a number of experts with great experience in the industry. The results will determine the project viability or non-viability for investment.