In 1996, the peruvian government privatized a number of stateowned assets. 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. Internal corruption in competitive bidding processes. Privatization auction won by inmet and rio algom july 1996. Questions for bidding for antamina questions for bidding. Ccpdsr case study pdf ccpdsr case study command center processing and display system replacement trw space and defense. Rtzcra has to determine what the mine is worth and decide whether and how it should bid in the upcoming auction. Antamina s copper and zinc concentrate pipeline incorporates advanced technologies ron h.
What other real options does the owner of the antamina have. Bidding for antamina project essay 2919 words bartleby. 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. Antamina blows your mind canadian mining journalcanadian. Bidding for antamina case solution and analysis, hbr case study. The mine had a valuable real option component, in the form of the right to develop the mine after completing exploration. Time overruns as opportunistic behavior in public procurement. Antaminas copper and zinc concentrate pipeline incorporates. Bidding for antamina questions free download as word doc.
The antamina project is proposed for selling via an auction as a step in the privatization process of perus government mining company. What is the correspondence between these real options and financial options. Questions for bidding for anatamina egade luis mendez 1. Below are the available bulk discount rates for each individual item when you purchase a certain amount. Antamina, the worlds largest known skarn deposit of copper and zinc, is located in the eastern part of the western cordillera of north peru at 9 32 south and 77 03 west, at an. The antamina s production processes are conducted under the strictest industrial safety, while respecting the environment and communities as part of.
The antamina mine is a large copper and zinc mine, located in the andes mountain range, 270 kilometres north of lima, peru. 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. Similarly, within our companys spirit of prevention, we have performed. 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. 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 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.
This chapter details the bidding for a classic real option in a natural resource industry. Possible violation of internal policies and procedures. Mineral resource tenders and mining infrastructure projects. Fiona wang this case introduces us to real option valuation in a bidding context. 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. Technical report mineral reserves and resources, antamina. 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. Companies that wanted to bid for the antamina mine was not sure about the. It is an open pit mine which had an estimated life of mine at 15 years. In what way is the development of a copper mine like antamina a. 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. Bidding for antamina harvard business publishing education. 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. Pdf the geology of the antamina copperzinc skarn deposit, peru.
Bidding for antamina essay example for free newyorkessays database with more than 65000 college essays for studying. The antamina project is being offered for sale by auction as part of the privatization of perus state mining company. 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. We model the suppliers tradeoff between the option value to defer the contract execution and the penalty payment in the event of delays.
In what way is the bidding structure put in place by the peruvian government an option. In what way is the development of a copper mine like antamina a real option. Ending firm valuation bidding for antamina rtzcra, meanwhile rio tinto group in 1996. Valuation and incentives in a real options context. 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. If you desire extra kind of books, you will always locate them. The course note chapters are selected from lecture notes on advanced corporate financial risk management, produced by john e. This file contains the questions for the hbs case bidding for antamina. Rtzcra has to decide what is the value of the mine and also determine how much to offer at the near bidding process. Find materials for this course in the pages linked along the left. Assume for purposes of our discussion that the company is outright buying the property. It produced 390,800 tons of copper concentrate in 2006, 461,000 tons in 20. This mine has been offered for sale as a result of the privatization of the state mining company of peru.
The deposit is located at an average elevation of 4,200 metres. This chapter studies the bidding for a copper mine that was offered for sale. 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. Illustrates different issues in the analysis of a bidding situation, including the celebrated problem of the winners curse. 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.
One of the first to be privatized was antamina, a polymetallic ore deposit about 500 kilometers north of lima, peru. A 302kmlong slurry pipeline, commissioned in july 2001, transports concentrates of copper and zinc, as. Bidding for antamina case solution and analysis, hbr case. Bidding for antamina case solution and analysis, hbs case.
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