Operating Cost Budgets for Mines

CIM Bulletin, 1952


THE MINE MANAGER or Superintendent is a man faced with a difficult problem. H e must direct the activities of his mine in such a manner that, over a period of time, tl1e greatest possible profit will be realized. In this res pect, a mine is no d_ifferent from any oth er business organized for profit. What makes the mine manager's task so difficult th en? The profit of a mine is deter mined by - among other things - the grade of ore, the market price of the metal or metals produced, and the cost to operate the mine. The mine manager ca nn ot do much about t he first two of th ese, but he has considerable control over the operating cost. This cost will depend in large measure on the nature of the programme on whi ch he plans to operate his mine. This operating plan may be broad or specific, on a longrange basis or on a month to month basis. The development of the plan, however, is made very difficult by the existence of so many factors which must be conside red. These may be ( 1) factors requiring decisions based on the best judgment and interpretation of enginee ring and geological information available, or (2) items which must be conside red but which a re largely non-controllable.
Keywords: Budgets, Cost, Cost centres, Costs, Mine, mine, operating cost, Price Variance, stoping, Vancouver, Mines, Ore, Ores, Standards