COALMOD A Financial Analysis and Policy Simulation Model for Coal Mining Developments

"This paper outlines the scope and applications of 'COALMOD', the British Columbia Ministry of Energy, Mines and Petroleum Resources' computerized financial simulation model for coal mining developments. After a description of the computer system and language of implementation, the logic and scope of current model sub-routines are presented. This is followed by a presentation of examples on the current applications of the model to public policy evaluation, including benefit-cost analysis, fiscal analysis and evaluation of the effects of public infrastructure investments made in support of mining projects.IntroductionThis presentation has been developed in response to a number of requests from coal mining companies and various public agencies who have indicated interest in understanding our application of contemporary analytical techniques to public policy in the coal sector. In particular, the subject of this paper is an explanation of COALMOD. a mnemonic given to a computerized, mine-specific, financial simulation model which is assisting the Government of British Columbia in evaluations of new coal projects, assessment of public sector investments made in support of these projects and. more generally, measurement of the financial effects of current or proposed government policies, and factors outside immediate government control such as coal prices and transportation costs."