Abstract: The mining right of mineral resource can be considered as a multi-stage compound call option. Based on the mechanism research of the option-based value formation of mining right, and under the assumptions of no transaction cost of mining right, no cost of mine opening and closing, a permanent discard of mine and a no-risk interest, the authors study the single-factor model for the option-based evaluation of the mining right of mineral resource at a random variation of the reserve value of mineral resource,and compare the income current value method with the single-factor model in combination with a real case of coal resource. It is found that the option evaluation method can increase the value of the mining right of mineral resource when compared with the income current value method.

Key words: Mineral resource, Option, Mining right, Single-factor model