Management and Finance of Mining Operations

The following course/module was developed at the TU Bergakademie Freiberg.

Part A: General management

• Management and strategic thinking
• Project and team structures, management styles
• Introduction to structural models of corporations and project teams
• Fundamentals of human resources management: choosing the right people and structures

Part B: Financial management

• Fundamentals of finance, basic concepts: balance sheets, profit/loss statements, cash-flow reports, ratio analysis
• Using conceptual models for financial planning: fundamentals and practical use of soft-ware tools
• Cost-estimating techniques for large-scale remediation projects
• Cash-flow planning in remediation projects
• Dealing with uncertainties in financial forecasts 
• Cost control and reporting
• Sources of finance: public, corporate, foundations. Their role and specific expectations/requirements to spending money and reporting
• Incorporating the potential after-use and redevelopment scenarios of remediated site into the planning and evaluation of remediation projects
• Communication of financial information at different levels

The subjects will be presented using overview texts and summary texts, and graphs. The students will receive numerous handouts that not only contain the content of the lectures and case studies but will also serve for future reference. Students will be encouraged to participate actively in the presentation to solicit ideas as well as individual situations experienced and integrate these in the structured presentation. Where appropriate real-life situations will be simulated.

A wide range of software tools for simulation of financial processes will be presented in the context of case studies to demonstrate their application to practical situations.

Presentation of small group projects and case studies forms an essential part of the module in order to train communication skills.

Learning outcomes / Competencies:

Environmental remediation projects require careful financial planning and control since their time frame can be often quite long and uncertain and considerable financial means are required from different sources. Public funding institutions and private/corporate sources require that a remediation project be carried out at minimal cost in minimal time. Strong financial skills are absolutely essential for a successful future career of this course’s participants.

Students will, therefore, be equipped with a sound knowledge and broad overview of general management concepts with special emphasis on project finance, financial control and accounting, cost estimating and forecasting/simulation techniques as well as funding mechanisms. Students will also familiarise themselves with concepts how to handle uncertainty and risk.