Sd Fuzzy Real Option Method In The Application Of The Mining Right Evaluation

As being one of the most critical resources on the planet, minerals provide basicsupporting to the development of the human society. The accurate method of assessing themining rights would ensure the efficient utility of the minerals. As the current evaluation ofmining resources being taken as the starting point, improvements and adjustments areintroduced in this thesis by creative consideration of SD algorithm, option pricingapproach and fuzzy math theory. A modified evaluation method for assessment of themining rights, SD-Fuzzy Real Option approach, is given. Based upon which, the risk ofmining rights is evaluated by the means of VAR.The significant meaning for the assessment of mining rights is being introducedfirst, along with the theoretical fundamental of the evaluation for the mining rights andminerals. Several popular methods of the evaluation for the mining rights are analyzedand assessed after a brief review of the current research results in the area, pointing out theadvantages and disadvantage for each ones. By introducing SD-algorithm and fuzzy maththeory, a modified evaluation method, SD-Fuzzy Real Option approach, is introduced. Themodified method improves the original method by the consideration of value of risk,making the method more practical. Based upon the modified method, VAR theory isintroduced for quantitative analysis and prediction of the mining rights assessment.