Beyond NPV: Embracing Long-Term Strategies

The secret to success in underground mining lies not in the riches beneath the surface but in the mindset of those managing it on the surface.

In the world of underground mining, we face a paradox: why do some mines thrive for decades with limited reserves while others fail to start despite abundant resources? The answer lies in our obsession with short-term financial metrics like Net Present Value (NPV), which often blinds us to the true potential of long-term strategies. Like driving on bald tires until we see the air inside, operating a mine without reinvesting in exploration leads to disastrous outcomes. The Julcani Mine in Peru stands as a testament to this truth, operating successfully for over 70 years despite yearly reserve depletion forecasts. Read the full article here to discover how we can build a resilient and enduring mining sector by embracing long-term thinking over short-term gains.