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Abstract

Mineral deposits are such type of assets, the valuation of which can be carried out in a very diverse manner. Methods and procedures for such a valuation are most often applied to mineral deposits with mineral reserves (according to the CRIRSCO classification), much less frequently and usually only using a comparative approach for undeveloped, initially recognized mineral deposits (with mineral resources). In Poland, a significant portion of mineral deposits, mainly of energy, metal and chemical minerals, are covered by the so-called mining property of the Treasury. At the moment, there is a lack of consistent and thoughtful management of these deposits. The appropriate methodology for valuing these deposits, which are at various stages of recognition (sometimes also of development), should be one of the key elements of such management. The State Treasury usually disposes of mining rights by “establishing” mining usufruct in the form of a contract, with the determination of remuneration for this establishment. The rules for determining remuneration for the establishment of mining usufruct are determined on the basis of an internal informal document of the Ministry of the Environment with very simplified rules for determining this remuneration, to a very limited extent related to the actual value of the deposit, which is also variable over time. This fee should be in close relation to the value of the mineral deposit valued at a given moment, taking the current conditions, including technological, environmental, formal and legal, and – in particular – market conditions into account. The valuation of mineral deposits covered by mining property, except for current needs in determining the basis for remuneration for mining usufruct establishing, should also be used to determine the value of these deposits annually as part of the State Treasury property and to present its results as part of the State Treasury Property Status Report. It is an open matter whether the methodology of valuation of the discussed mineral deposits should be based on accepted and widely used solutions for the valuation of mineral deposits for the purposes of business transactions or based on methodology of valuation of deposits as part of the planned system of Integrated Environmental and Economic National Account (up to date poorly developed). The paper presents the most important elements of both methodological approaches. It seems that the use of selected elements of each of these approaches would be advisable in this case.
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Abstract

The presented article contains an analysis resulting from 10 years’ experience in the implementation of the POLVAL Code to mineral assets valuations carried out by Competent Valuators. It had been based on data of more than 100 performed valuations. First and foremost, challenges resulting from preferences given by various relevant regulations to the application of a market-based approach were identified. It was underlined that they prompt Valuators to compromise the quality of the database containing reference transactions. In the case of an income based approach, issues resulting from the adoption of estimates and subjective assumptions were discussed. It was indicated that this fact alone cannot create a valid argument to reject the results of such a valuation providing that they have been implemented in a coherent manner and uncertainty was reflected in the value of the applied discount rate. Separately recommended changes to the present version of the POLVAL Code were presented. In conclusion, a significant, positive role of the introduction of the POLVAL Code for the structuring processes of mineral asset valuation was indicated.
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