ECONOMIC EVALUATION OF MINERAL RESOURCES FROM THE STANDPOINT OF BUSINESS AND SOCIAL PROFITABILITY

The application of economic criteria of profitability and business operation is not only required but essential in the modern business climate for the proper functioning of a country's mineral sector, mineral economics and ensuring market survival. A distinctive feature of economic evaluations of mineral reserves is their division into strategic mineral resources and other mineral resources. Apart from their economic significance, strategic mineral resources are particularly noteworthy due to their national or social importance. Depending on the type of resource and its social and economic significance, the economic evaluation of mineral resources may be conducted from two standpoints: business and social profitability. Given the transition of the mineral economics into a market economy, special attention needs to be paid to social profitability, since solely orienting towards business profitability may cause long-term negative effects on the economy and mineral economics. What this means in practice is adhering to economic criteria and market orientation on one hand, while analytically including key components of social profitability on the other.