Abstract: Traditional NPV approach has limitations in evaluating mineral resources investment because of the long cycle,large amount and high uncertainty of mineral investment.This paper applies real option theory to establish an optimal strategy model for mineral resources investment,discusses how to evaluate overseas mineral resources under the uncertainties of mineral prices and exchange-rate.An overseas mineral project has also been taken as an example,to examine the validity of the model.The results show that: Compared to NPV approach,real option approach can better consider the uncertainties effect on mineral resources evaluation,the volatility of exchange-rate has great impact on overseas mineral investment,the quality of mineral resources also affect the value of mineral resources.

Key words: real option, mineral resources, model for investment decision