A Study On Investment Evaluation Method And Sustainable Development Of Crushed Stone For Contruction

“Crushed Stone is the mineral exploited most by human being with a longestexploitation history in the world”(Wikipedia,2005). It can be used widely inconstruction, agriculture and industry. Judging from the statistics from U.S., Europeancountries including U.K., and other coutries, nowadays crushed stone is still one ofthe most important minerals in both developed countries and developing coutries. Andthe crushed stone mining industry important components of non-metal miningindustry. Since this industry has unique characters like open-pit mining, simpleprocessing, short industry chain, not much international trade, low product value, etc.this industry doesn’t enter into people’s focus. In China, the mineral nature of crushedstone has been ignored, which leads to the problems like small size, out of datemanagement mechanisam, serious environment pollution, magnificent safety issues,and bad investment efficiency.In order to understand crushed stone mining industry, we need to define thecrushed stone mineral in terms of four aspects including geology, grain class, usage,and processing method. And meanwhile, the crushed stone mining industry is one ofnon-metal mines is classified into third category, which is normally invested by socialfunding starting from the detailed exploration stage, so the investment risk iscomparatively high than other minerals. It means we need to study the investmentevaluation method and system for this industry to accelerate the effective investmentand to use crushed stone sustainably.The dymatic investment evaluation methods and indicators can be applied toevaluate the investment on crushed stone mining projects like other industrial projects,but due to both the characters of mining projects like non-repeatable and localized andthe characters of crushed stone mining itself including high risky, comprehensivecontent for decision making, short industry chain, more likely synergistic interaction,and multiplier effect, the influencing factors for this type projects evaluation can bedifferent from other industrial projects, even other mining projects. We suggested todefine the specific factors for this industry from mineral resources factors, miningdevelopment factors, market factors, and economic factors by following its owncharactors, and to use these to do the sensitivity analysis. Based on this, we define thecalculation method of its own evaluation indicators, IRR and NPV.Also, we need to recognize the crushed stone mining industry has highexternality, so we use the cost-benefit analysis to do more accurate evaluation on theprojects. In additional to the typical cost-benefit analysis by including the quantifiednegative external effect, we also quantifie its positive external effects by usingmultiplier effect to formalize a complete and scientific calculation method of ENPV.