Support of mining investment choice decisions with the use of multi-criteria method

Sobczyk, Eugeniusz J.; Kicki, Jerzy; Sobczyk, Wiktoria; Szuwarzyński, Marek

doi:10.1016/j.resourpol.2016.11.012

Cited by 18 publications

(15 citation statements)

References 6 publications

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“…Risk analysis often involves fuzzy and inconsistent decision information, which may be caused by a variety of reasons (Gómez-Fuster and Jiménez, 2020). However, determinism-based analysis methods often regard such uncertainties simply as the noise or error of the system, thus neglecting the important decision information that may be contained therein (Sobczyk et al, 2017).…”

Section: Methodsmentioning

confidence: 99%

Dynamic Risk Assessment of the Overseas Oil and Gas Investment Environment in the Big Data Era

et al. 2021

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Our research aims to analyze how the uncertainties and risks of the overseas oil & gas investment environment change over time and reveal the specific occurrence probabilities of risk on different levels. In the process of long-drawn overseas oil & gas investment that can last for 30 years or longer, it is difficult for investment decision-makers to grasp the occurrence probabilities and trends of some specific risks accurately and in a timely manner. The overseas risk assessment system has made great progress; however, it has remained elusive due to the challenge of too many complex and interweaved factors. With the advent of big data and artificial intelligence, more precise and specific risk evaluations can be conducted. Our research selects 25 indicators from six dimensions and applies a Cloud parameter Bayesian network algorithm to dynamically assess the oil and gas overseas investment risk of 10 countries. The results reveal how risk dynamics have changed over the past two decades. Our research may serve as a reference in future overseas oil & gas investment risk decision-making, and is also significant to outbound investing, engineering, and service projects. The proper use of risk assessment results can be conducive to potential investors who may invest in potential countries in the future.

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Section: Methodsmentioning

confidence: 99%

Dynamic Risk Assessment of the Overseas Oil and Gas Investment Environment in the Big Data Era

et al. 2021

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“…Li and Nie (2017) build an evaluation system for scientific mining of China's coal resources using AHP to find existing problems in the coal production process. Sobczyk et al (2017) employ the AHP method to support decisions regarding the choice of mining investment in an acquisition of a zinc and lead ore mine together with the processing plant.…”

Section: Multi-criteria Decision Making (Mcdm) and Ahpmentioning

confidence: 99%

Spare parts inventory management: a new hybrid approach

Muniz

Conceição

Rodrigues

et al. 2020

IJLM

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PurposeThe purpose of this paper is to present a new hybrid approach based on criticality analysis and optimisation to deal with spare parts inventory management in the initial provisioning phase in the mining industry. Spare parts represent a significant part of mining companies' expenditures, so it is important to develop new approaches to reduce the total inventory value of these items.Design/methodology/approachThis hybrid approach combines qualitative and quantitative methods based on VED (vital, essential and desirable) analysis, analytical hierarchical process (AHP), and e-constraint optimisation method to obtain the spare parts to be stocked. The study was applied to a large mining company. The mineral sector was chosen due to the great importance to the emerging Brazilian economy and the lack of researches in this sector. In addition, the spare parts have a relevant weight on the total inventory cost.FindingsPresent a novel approach combining multi-objective optimisation and multi-criteria evaluation approaches to tackle the inventory decision in spare parts management. This work also defines and classifies relevant criteria for spare parts management in the mineral sector validated by specialists. The proposed approach achieves an average increase of 20.2% in the criticality and 16.6% in the number of items to be stocked compared to the historical data of the surveyed company.Research limitations/implicationsThis paper applies the proposed approach to a mining company in Brazil. Future research in other companies or regions should analyse the adequacy of the criticality criteria, hierarchy and weights adopted in this paper.Practical implicationsThe proposed approach is useful for mining industries that deal with a large variety of resource constraints as it helps in formulating appropriate spare part strategies to rationalise financial resources at both tactical and strategic levels.Originality/valueThe paper presents a new hybrid method combining the AHP a multi-criteria decision making (MCDM) approach coupled with e-constraint optimisation to deal with spare parts inventory management allowing for a better spare parts inventory analysis in the initial provisioning phase and providing managers with a systematic tool to analyse the trade-off between spare parts criticality and total inventory value.

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“…The second aspect relates to the costs of new operational investments, such as new longwalls. The third aspect focuses on strategic investments, such as building a mine or opening a mining deposit [60][61][62].…”

Section: Literature Studies On Costs In Coal Mining In the Context Ofmentioning

confidence: 99%

Dependence of Total Production Costs on Production and Infrastructure Parameters in the Polish Hard Coal Mining Industry

Jonek-Kowalska¹,

Turek²

2017

Energies

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European hard coalmining is a declining industry, despite the use of hard coal for energy in several countries. Industry restructuring and public subsidies have failed to stop this industry's decline. The largest hard coalmining sector, the Polish sector, has faced an obstacle to its survival: How to reduce production costs to compete with less expensive imported hard coal? This article aims to identify and analyze the dependence of the total production costs representing production and infrastructure parameters of the Polish hard coalmining industry. The parameters are divided into three groups: (1) the cost of employees and the production volume; (2) the number of longwalls, the length of a longwall, the daily longwall advance and the preparatory work advance; and (3) the number of levels in exploitation, the number of layers in exploitation and the number of shafts. The findings indicate that, even in well-functioning coalmines, there are many economically irrational relationships, especially regarding employment and infrastructure size. This study shows that employment, which is a significant cost component of the production and infrastructure parameters of the examined Polish hard coalmines, is not economically rational in terms of its proportion to the total production costs. As a result, even a considerable reduction in employment or infrastructure does not influence the unit costs of mining production, which could only be partially explained by the high level of fixed costs. There are also no appropriate relationships between infrastructure parameters and the total production cost. Under these irrational conditions, a reduction in the production costs of hard coalmining enterprises is difficult, but unproductive costly activities could prevent an improvement in production efficiency. Only restoring the proper relationship between economic and infrastructure parameters and the total production costs can ensure a return to price competitiveness. Those actions are crucial for the Polish hard coalmining industry, because the research focused on successful hard coalmines that were not declining indicate it should be able to implement cost improvements.

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Support of mining investment choice decisions with the use of multi-criteria method

Cited by 18 publications

References 6 publications

Dynamic Risk Assessment of the Overseas Oil and Gas Investment Environment in the Big Data Era

Dynamic Risk Assessment of the Overseas Oil and Gas Investment Environment in the Big Data Era

Spare parts inventory management: a new hybrid approach

Dependence of Total Production Costs on Production and Infrastructure Parameters in the Polish Hard Coal Mining Industry

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