Limestone mining: Reserves and valuation

The objective of this article is to discuss the fundamentals for determining the value of a limestone reserve or operation. The general step-by-step procedure, while prudent, is subject to the various site-specific issues that influence the valuation calculation. The most common methods for determining fair market value of mining lands are: comparable sales, operational analysis, and royalty analysis. An overview of typical eastern limestone mines (both quarries and underground) is presented. Specifically, properties in West Virginia and Alabama are reviewed and the sample methodologies and valuation calculations are presented.