National University of Sciences and Technology—MISIS, Moscow, Russia:

M. Kh. Peshkova, Professor, Doctor of Economic Sciences, Head of a Chair
D. Yu. Savon, Professor, Doctor of Economic Sciences, di199@yandex.ru

By now the colossal mineral mining and processing waste in the territory of the Russian Federation makes 60 to 100 billion tons and represents man-made mineral objects (MMO). The volumes of MMO are annually replenished and damage the environment. The challenge of mining waste management can be divided into two constituents. First, this is the objective of waste management at operating extractive industries (or new mines in the course of being licensed). The second constituent is management of closed mine waste, so called abandoned MMO in the form of spoil dumps and tailings storages accumulated earlier on. The attraction of a business as an investment is based on the business appraisal. For economic appraisal of MMO, it is acceptable to use an income approach when future income of a given business investment is evaluated. The income approach to MMO appraisal involves evaluation of annual EVA depending on different factors within the period of MMO management. Probable variation of external and internal factors in the course of MMO management will characterize ecological and economical risks at the stage of investment decisionmaking. One of the most crucial challenges in organization and management of the government and private business partnership (GPBP) is reaching a compromise between sufficient return of MMO investment and sound risk allocation. In case of MMO management, an efficient mode of GPBP may be a concession as the most promising and integrated form of partnership. Different levels of attractiveness of businesses as investments as well as investment uncertainty call for an economical and mathematical model to be developed for evaluating attractiveness of MMO management as an investment from the viewpoint of risk/profitability. It is proposed to evaluate attractiveness of MMO management as an investment using the index of probable value of a business associated with management of given mining and processing waste, including estimate of risk in making investment decisions. This index is calculated based on the added value, which is of specific importance in MMO appraisal.

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