Economic appraisal of Khepchishi Graphite Mining Project in Haa, Bhutan | |
| Author | Dorji, Sonam |
| Call Number | AIT Thesis no. IE-91-8 |
| Subject(s) | Graphite industry--Economic aspects Graphite industry--Bhutan |
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Abstract | The objective of this study is to assess the financial and economic feasibility of the graphite mining project, in Haa, Bhutan taldng into consideration also the environmental cost in setting up such a project. Earlier in 1988 AUSTROPLAN had done a techno-economic feasibility studies of the mining project. The environmental risk involved in implementing such a project was not considered in their study. The results of this study indicate that even after incorporating the total imputed environmental cost the project is still feasible both from financial and economic appraisal point of view as their B/C ratios are greater than unity. In this study, it was found that the main environmental cost was the imputed cost of forest values, followed by the cost of reclamation. The imputed cost of flood hazards due to the upstream mining activities is comparatively lower because there is not much settlement around the Ha river valley. Preliminary information on slope stability studies had also been collected from the project site to support how the slope process would add to the problem of flooding. In this study, sensitivity analysis has been carried out to see the effects of simultaneous changes of sales revenues, changes of total operating costs and initial investment, on the financial internal rate of return (FIRR) and net present value (NPV). It was found that the most critical variables are sales and investment costs. Especially the changes of the sales revenues are vital to the project's viability. |
| Year | 1991 |
| Type | Thesis |
| School | School of Engineering and Technology (SET) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Industrial Engineering (IE) |
| Chairperson(s) | Tang, John C.S. |
| Examination Committee(s) | Tabucanon, Mario T. ;Fujiwara, Okitsugu |
| Scholarship Donor(s) | Government of Australia |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 1991 |