Principles of economic geointelligence 
J-M Monget - ENSMP - CG, Sophia Antipolis - France

Topics : Economic projects  The OK Tedi mine  The risk factors  Evaluating economic projects  The components of geointelligence The Doba oil project A diagram

The OK Tedi copper mining complex in the Western province of Papua New Guinea.

 1 - Economic projects

The goal ? :

• to make money as quickly as possible ?
• to make an ever increasing profit while sustaining growth ?
• to make profit while maintaining long term life sustainability ?

Resources : investment
Activity : costs and income
Timing : life cycle

To perform "goal seeking" one has to constantly make decisions while evaluating alternate scenarios

 3 - The risk factors

• Inaccuracy on the knowledge of parameters in the economic models :
  Resource model (Nature), engineering model (investments and running costs) and business model (salary, knowledge management…)
• Unpredictable events :
  Accidents, socio-political context, environmental impacts…., needs environmental and socio-political modeling
• Volatility of economic environment :
  Price, change rate …. needs economics modeling

Many risk factors have a geographical dimension. This offers a good opportunity to strengthen an environmental awareness approcah based on GIS and Earth imaging.

• I = Present income
• C = Present cost
• r = The discount rate or marginal cost of capital

Evaluating alternative scenarios

• ENPV =  Sum (p_k * NPV_k)
• Expected return = Degree of risk * Scenario evaluation

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