Author 1:

Name & Surname: Kharitonov V. V.
Company: National Research Nuclear University MEPhI (Moscow Engineering Physics Institute) (Moscow,
Russia)
Work Position: Professor
Scientific Degree: Doctor of Physico-Mathematical Sciences
Contacts: e-mail: VVKharitonov@mephi.ru

Author 2:

Name & Surname: Kurelchuk U. N.
Company: National Research Nuclear University MEPhI (Moscow Engineering Physics Institute) (Moscow,
Russia)
Work Position: Magister

Indexes of effectiveness of investment projects in mine construction and long-term operation are analytically studied based on the modern fundamental approaches of the global investment economy. The analyzed indexes of investment project efficiency are net present value (NPV), internal rate of return (IRR) and discounted payback period (DPP). Using the exponential function of discounted cash flow, the analytic expressions of the listed criteria have been obtained for the first time, which allows optimizing volume of investments, income, expenditures and cash outflow throughout the service life of a mining entity. The well-behaved upper and lower limits of the efficiency criteria are found. The models of the bottom-up and top-down flows of income in the course of a mine life used exponential and linear approximation to distinguish between annual inflow and outflow of cash. The peak NPV conditions by the end of a mine service life at the diminishing returns are explored. The new relationships between the investment efficiency indexes and cost-effectiveness characteristics of mining projects are obtained; the effect exerted by the terms of construction and operation of a mine, discount rate, size of capital cost and earning records of mines on the total score of investment efficiency is evaluated for the bottom-up and top-down flows of income. With the derived analytic expression, it is possible to solve both the direct problem of calculating mining investment efficiency by anticipated income and expenditures and also the inverse problem on income and expenditures, construction terms and mine service life found from the preset values of the investment efficiency indexes.

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