The antamina s production processes are conducted under the strictest industrial safety, while respecting the environment and communities as part of. Valuation and incentives in a real options context. And you craving to acquire the photo album here, in the associate download that we provide. Internal corruption in competitive bidding processes. The mine had a valuable real option component, in the form of the right to develop the mine after completing exploration. In what way is the development of a copper mine like antamina a.
Bidding for antamina case analysis, bidding for antamina case study solution, bidding for antamina xls file, bidding for antamina excel file, subjects covered bids capital budgeting privatization valuation by peter tufano, alberto moel source. Questions for bidding for antamina questions for bidding. It is an open pit mine which had an estimated life of mine at 15 years. Bidding for antamina case solution,bidding for antamina case analysis, bidding for antamina case study solution, bidding for antamina project introduction in the beginning of the 1990s, the peruvian government wanted to privatize the government owned companies into p.
In what way is the development of a copper mine like antamina a real option. The difference is just that in a financial call option, the underlying asset is basically the stock price whereas in this case it is the value of the metal contained in the mine and the overall value of the mine. We are helping rtzcra to determine the value of antamina and to recommend how rtzcra should bid in the upcoming auction under the nontraditional bidding rules set by the peruvian government. The antamina project is proposed for selling via an auction as a step in the privatization process of perus government mining company. Assume for purposes of our discussion that the company is outright buying the property. Questions for bidding for anatamina egade luis mendez 1. What other real options does the owner of the antamina have. Schematic cross section, antamina, looking northeast lipten and pacheco, 2004 case study presented at the 42nd annual meeting of the canadian mineral processors the antamina mining and milling operations,peru,treat a skarn polymetallic deposit for the recovery of copper, zinc, molybdenum,and leadbismuthsilverconcentrates. Ending firm valuation bidding for antamina rtzcra, meanwhile rio tinto group in 1996. Find materials for this course in the pages linked along the left. Companies that wanted to bid for the antamina mine was not sure about the. Readings lecture notes assignments download course materials. In june 1996, executives of the multinational mining company rtzcra contemplate bidding to acquire the antamina copper and zinc mine in peru. The antamina mine is a large copper and zinc mine, located in the andes mountain range, 270 kilometres north of lima, peru.
Possible violation of internal policies and procedures. Bidding for antamina case solution, in june 1996, leaders of the multinational mining company rtzcra considering a bid to acquire the mine copper and zinc mine in peru. We model the suppliers tradeoff between the option value to defer the contract execution and the penalty payment in the event of delays. Mineral resource tenders and mining infrastructure projects. Bidding for antamina harvard business publishing education. Bidding for antamina case solution and analysis, hbr case study. In 1996, the peruvian government privatized a number of stateowned assets. This mine has been offered for sale as a result of the privatization of the state mining company of peru. The mine itself had a valuable real option component, in the form of the right to develop the mine after completing exploration, which we analyze using monte carlo methods. The antamina mine in the andes mountains of peru is one of the largest copperzinc mines in the world. Bidding for antamina essay example for free newyorkessays database with more than 65000 college essays for studying. Antamina s copper and zinc concentrate pipeline incorporates advanced technologies ron h. Rtzcra has to decide what is the value of the mine and also determine how much to offer at the near bidding process.
Bidding for antamina project essay 2919 words bartleby. The deposit is located at an average elevation of 4,200 metres. Fiona wang this case introduces us to real option valuation in a bidding context. Similarly, within our companys spirit of prevention, we have performed. If you desire extra kind of books, you will always locate them. A 302kmlong slurry pipeline, commissioned in july 2001, transports concentrates of copper and zinc, as. Jun 12, 20 we consider the suppliers strategic choice on delivery time in a public procurement setting as the result of the firms opportunistic behavior on the optimal investment timing when production costs are uncertain. Pdf the geology of the antamina copperzinc skarn deposit, peru.
Bidding for antamina case solution, in june 1996, consider executives of multinational mining company rtzcra applies for the antamina copper and zinc mine in peru to acquire. The course note chapters are selected from lecture notes on advanced corporate financial risk management, produced by john e. Oct 01, 2001 antamina blows your mind you may already have heard that antamina in northcentral peru is the worlds largest combined copperzinc mine, owned by a consortium of major mining companiesnoranda inc. Antaminas copper and zinc concentrate pipeline incorporates. Download file pdf arundel partners case solution everybody, if you desire to start joining like others to log on a book, this pdf is much recommended. Ccpdsr case study pdf ccpdsr case study command center processing and display system replacement trw space and defense. This chapter studies the bidding for a copper mine that was offered for sale. One of the first to be privatized was antamina, a polymetallic ore deposit about 500 kilometers north of lima, peru. This chapter details the bidding for a classic real option in a natural resource industry.
Bidding for antamina case solution, bidding for antamina case analysis, bidding for antamina case study solution, bidding for antamina project introduction in the beginning of the 1990s, the peruvian government wanted to privatize the government owned companies into p. Bidding for antamina questions free download as word doc. Below are the available bulk discount rates for each individual item when you purchase a certain amount. Illustrates different issues in the analysis of a bidding situation, including the celebrated problem of the winners curse. The executives of one of the multinational company, rtzcra were considering one of the significant bids of the antamina mine in june 1996 in peru. The antamina project is being offered for sale by auction as part of the privatization of perus state mining company. Technical report mineral reserves and resources, antamina.
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