Feasibility study

How it is used

In mining, studies usually go from a scoping study (or PEA) to a pre-feasibility study (PFS) and a definitive feasibility study (DFS). They estimate capital cost (capex), operating cost (opex), NPV and IRR. A positive study leads to a final investment decision (FID).

Example sentences

1. The feasibility study shows a mine life of 14 years and an NPV of 420 million dollars.

2. The banks will not lend until the definitive feasibility study is complete.

Common collocations

• pre-feasibility study (PFS)
• definitive feasibility study (DFS)
• complete a feasibility study
• feasibility study results

Related terms

• reservesThe amount of oil, gas or ore that is known to exist and can be produced at a profit with current technology and prices, estimated under set rules.
• explorationThe work of searching for new oil, gas or mineral deposits, using geological mapping, geophysical surveys, sampling and test drilling.
• environmental impact assessment (EIA)A formal study of how a planned project such as a mine, pipeline or refinery will affect air, water, land, wildlife and local communities, and how those effects will be reduced.
• royaltyA payment that a producing company makes to the owner of the resource, usually the state, calculated as a share of the value or volume of the oil, gas or minerals produced.

This word in other fields

The same English word can have a different meaning in another field:

• feasibility study · Architecture
• feasibility study · Project Management

More terms: Industry, Reserves & Contracts

• upstream
• downstream
• barrel
• production sharing agreement (PSA)
• Brent crude
• midstream