Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Estimating capital and operating costs is one of the most critical stages in any new mining project. Key to this process is finding a reliable source for this data. Where do you look? Do you use information from similar projects, company internal databases or outside sources? Since 1983, Mining Cost Service has been the industry’s standard reference for mine cost. Now, this information is available in an Australian specific companion edition: R2Mining’s Australian Metal Cost Guide.
The Australian Metal Cost Guide or AMCG includes features such as mining and processing equipment capital costs, utilities, supplies, taxes, wages and benefits, smelting, mine development, cost models, cost indexes and more. The Cost Models chapter presents a series of cost models for surface and underground metal mines; and flotation, carbon-in-pulp and agitation leach mills, from which evaluators can make preliminary orders for magnitude estimates of projects with limited deposit information.
AMCG’s cost models include 28 surface models and 54 underground models. Surface mine models employing dragline-excavator-truck operations are projected at seven levels of daily production from 1,000 tonnes per day to 80,000 tonnes per day. At each of these levels, model estimates are made for a variety of stripping ratios ranging from 1:1 to 8:1 tonne(s) overburden per tonne of ore. Underground models employing shaft access methods and ramp access methods are projected at production rates of 200 tonnes per day to 45,000 tonnes per day. Methods include cut and fill, shrinkage stoping, end slice, vertical crater retreat (VCR), sublevel long hole, room and pillar (bord-and-pillar), sublevel caving and block caving. Also included are 35 milling operations with feed rates ranging from 100 tonnes per day to 80,000 tonnes per day.
Each of the models is developed from first principles based on typical mining criteria for rock densities, swell factors, drill penetration rates, etc. Industry-standard estimating methods are used for equipment selection, personnel allocation, and cost estimation. These models are invaluable for early order- of-magnitude estimates.
The Australian Metal Cost Guide also includes information on labour costs, mining cost indices, equipment capital costs, supplies, mining taxes, electric power, natural gas, transportation and smelting.
2 Comments
A.chakrapani
Hi how to get this cost guide.My id [email protected]
Ashok Agrawal
Pl inform the address from where this Metal Cost Guide can be obtained.
Pl reply at
ashok [email protected]