Mining

The quantification of mining economics and damages has been an ongoing part of our practice. Our work in such cases includes:
  • Quantified the present value of mineral reserves subject to a federal government condemnation proceeding. We evaluated and considered mining plans and the related timing of extraction; mineral pricing based on time sequenced futures pricing; known mining, processing, and capital costs; and the income tax benefit of depletion.
  • Evaluation of a 16-sentence contract addendum defining a “1.5% net-profits-interest” in a heap-leach gold mining operation, and application of its terms to at-issue accounting and cash flow distributions.
  • Quantification of lost profits resulting from the shutdown of a potash mine when a recently repaired conveyor system failed.
  • Analysis and evaluation of an electric utility’s cost of service for providing a large – nearly 100% constant – electrical load to an operating mine. A summary of our evaluation and findings were presented in a related public utility rate proceeding.
  • Quantification of the royalty value of coal mined under the terms of a non-standard federal mining lease.
  • Quantification of the value of a significant interest in a copper mine sold without regard for the plaintiffs’ right of first refusal.
  • Consideration of proper auditing procedures for a public company's valuation and financial reporting of its acquisition of a foreign tin mine.
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