SOCIETY FOR

MINING, METALLURGY, AND

EXPLORATION, INC.

PREPRINT
NUMBER
90-85

P.O. BOX 625002 LITTLETON. COLORADO 80162-5002

COST CONTROL IN OPEN PITS

SIMULATIONS FOR OPTIMIZING PRODUCTION COSTS

F. H. Mertens
GECAMINES
Lubumbashi, Zaire

For presentation at the SME Annual Meeting

Salt Lake City, Utah - .February 26-March 1, 1990
Permission is hereby given to publish with appropriate acknowledgments, excerpts or
summaries not to exceed one-fourth of the entire text of the paper. Permission to print in
more extended form subsequent to publication by the Society must be obtained from the
Executive Director of the Society for Mining, Metallurgy, and Exploration, Inc.
If and when this paper is published by the Society for Mining, Metallurgy, and
Exploration, Inc., it may embody certain changes made by agreement between the
Technical Publications Committee and the author, so that the form in which it appears is not
necessarily that in which it may be published later.
These preprints are available for sale. Mail orders to PREPRINTS, Society for Mining,
Metallurgy, and Exploration, Inc., P.O. Box 625002,Littleton, Colorado 80162-5002.

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MINING ENGINEERING

Abstract. The costs of an open-pit operation

can be classified according to the following hierarchy :
- overall cost of production (per ton of ore)
- costs of basic operations and functions
- costs of auxiliary operations
- costs of machines and equipment
- maintenance costs.
Production cost is a measure of the open-pit
mine performance and should be the final target
of the management control. It is also a measure
of the share of the mine in the processing stages.
Any variation in the maintenance and operating
costs or in the operating performances have an
immediate effect on the production cost.
In the first part of the paper, we will describe the various steps used for building up automatically the overall production cost and how any
fluctuation in direct expenses can be measured,
allocated and translated in terms of dollars per
ton of ore produced. It will reflect the experience gained from an application in real time
installed on an IBM mainframe for cost calculations in large copper operations in central Africa.
The second part of the paper will show how simulations can be applied in order to evaluate
the consequences of any investment decision on
the operating and production costs. More particularly, simulations in evaluating various combinations of decisions will be described and cash
flow patterns will be discussed.
1. Introduction
Evaluation of the performances and decisions
regarding development of mines depends on a thorough knowledge of the various cost components
of maintenance and operation. Mine planning and
investment criteria must be based on a reliable
cost control system. This basic premise was taken
into consideration when developing the new system
which is presently implemented at Gecamines and
which is part of the reorganization of the whole
financial control of the company.
Gecamines operates large copper deposits in the
province of Shaba, Zaire. The operations are divided in three divisions where the ore is extracted either from underground mines or from large
open pits. After beneficiation, copper ores are
processed by hydro or pyrometallurgy to produce
electrowon copper, wire-bars or blister copper.
Cobalt is an important by-product which has meant
in recent past as much as 50 % of the total income of the company. Currently, this percentage
is 20 % as a result of a convention between the
two main producers, (Zaire and Zambia), to keep
the stability of prices and avoid fluctuations in
the market. Zinc concentrates are roasted and
calcine is processed into electrolytic zinc.
With regard to the implementation of the new
control application for the mines and for the
concentrators, it has been scheduled in three
steps :
- analysis of the existing system, definition
and choice of the new integrated package.
- definition, development and implementation
of one pilot project covering all the open
pit operations of the western division.
- extension of this project in the other mines and plants of the company.

The following description refers to the experience gained from the implementation and operation of the pilot project.
2. Brief description of the open pit operations
There are three operational divisions in the
company among which the western one is the most
important. The open pits belonging to this division are currently divided in two complexes
- the DIMA complex, with three separate open
pits.
- the KOV complex, with one major pit divided
in three different areas.
Total excavation for the two complexes reaches
84000 k t of rock per year, corresponding to an
output of 8000 kt per year of various types of
oxide and mixed ores.
Drilling is performed by rotary drills. Bench
heights are held to 8 to 12 m and explosives used
are either me"tallized slurries or ANFO.
Cable or hydraulic shovels are used for loading,
with buckets ranging in size from 6 to 18 cuyd.
There are 21 such shovels in operation and the
oldest machines will soon be replaced by 25 cuyd
units.
Haulage is performed by fleets of 26 100 t and
39 150 t trucks. In the DIMA complex, the trucks
used for the overburden removal are converted into trolleys. At the KOV complex, a belt conveyor
system will be installed in order to decrease the
haulage distances.
Ores are dumped on approximately 25 stockpiles
and are subsequently transferred to the feed of
two concentrators in proportions determined by the
characteristics and grades of each stockpile.
Transfer from storage to concentrator is performed by railroad haulage.
The open pit maintenance department is divided
in seven sections. The necessary supporting services are provided by two central mechanical
shops.
3. Objectives to be met by the system
An efficient control system has to be able to
provide production and operating costs as well as
all the necessary information used for forecasting, budgeting, investment and strategic decisions. In the particular case of Gecamines, the
ore is rather complex and physical characteristics and grades may vary in a great extent according to the ore body. There are different processes involved in the beneficiation and in the
metallurgical facilities. As a consequence, the
control system must be very flexible and handle
a great variety of options and simulations with
regard to the financial decisions.
The information to be supplied, the frequency
and the structure of the reports must be defined
according to the objectives to be achieved and
the destination of the reports. The corporate controller will require consolidated results and financial reporting, while the operation management
expects to receive cost information on a daily
basis and supported by technical references. Furthermore, the operations manager requires details
of different nature defined according to the level of responsibility and to the types of operations to be controlled. Presently, the system
provides only budget control on a global and
monthly basis and yet with significant delays.

As a consequence, the oajor guideline, taken

into consideration ~hen impleoenting the control
system are the follo~ing :
- the analytical control oust be integrated
~ith the ~eneral Dccouncing system
- COSt analysis muse be related to technical
conditions (type of rock. lengeh and grade
of haul, produceion records, equipment efficiencies)
- D greac flexibiliey is essc=tial and the
system must be adaptable immediately to any
change in the operation methods and in the
organizDtion chart
- cost reporting must be performed in real
time in order to translate immediately ope~Dtional problems in cerms of dollars
- reports must be issued in due eime and according to the requirements of those needing
the information. Ho~ever, a large emphasis
has been placed throughout the implementation
to keep the system as simple as possible
- the data must be clearly presented and usable without additional calculation effort.
\'ariance must be calculated between actual
costs and budget
- the system will be based on the use of
standard unit costs. The variance between actual costs and budget must be traced up to
the responsible division. (Variance of consumption to the maintenance or operations departments, variance in the exchange rates to
the financial department and variance in the
costs of supply to the purchasing department)
- costs must be broken down into direct and
indirect costs. The rules of activation, depLetion and depreciation must be clearly
specified
- all the information needed in the cost
control system will constitute at the same
time a data base. The company will actively
encourage its operations manager to use extensively that data base as a reference in
their various financial and strategic analysis.
4. Hardware and software
Concerning the cost control software implementation, the decision had to be taken between two
alternatives :
- modify and improve the existing system
- install a new package.
The existing batch system ~as designed in the
early seventies. Its improvement was considered
risky, mainly with regard to the needs of decentralization, on line operation, reporting requirements and integration ~ith other satellite app lications.
It was therefore decided to install a new system linked ~ith a ne~ general ledger package associated ~ith a fourth generation tool. At the
same time, the company has upgraded its hardware
to a 4381 IBM computer, further upgraded to a
3090 (24 ~IPS) computer. It is one of the bigge~t installed in Africa.
The development of the project is an integral
part of an overall program of systems reorganization in the company, including all aspects
linked to maintenance, metallurgy, purchasing
and financial applications. The project is fully
developed in house ~ith the objective to promo-

te the traininR of national people.

The hard~are support consists of consoles and

microcomputers installed close to the users' offices while the 3090 IBH computer is installed in
the central offices, located at a distance of
310 kIn.

5. Hierarchy and responsibility centers

In an efficient cost control system, it is necessary to link the expenses to the area ~here
they are generated. Each cost component should be
related to a center of expenses. In order to introduce those centers, a hierarchy structure will
be created.
A simplified view of the cost control hierarchy
is shown in figure 2. At the second level, the
following branches are considered :
5. I . - one maintenance branch ~i th subdivis ions
corresponding to the fleets or types of machines
5.2. - one center consolidating the costs of equipment and machines. In this branch, the centers of analysis can be broken down according
to the fleets or types of machines and functions
5.3. - one fragmentation branch ~here drilling and
blasting costs are analyzed
5.4. -one branch corresponding to the position of
the operations superintendent. It is subdivided in two complexes controlling various
pits. In each pit, cost components similar to
those described in paragraph 6 are created.
Essentially, they correspond to the various
operations and to the burden of direct and
indirect costs related to operation only
5.5. - one branch covering all overhead and indirect costs which are not covered elsewhere.
Here, it is convenient to set up a structure
similar to the organization chart of the division.
The major prerequisite of the hierarchy is to
be flexible enough to allow any changes in management, structure and organization. If further
detailed analysis are necessary, additional centers should be created provided that accurate
cost allocation can be performed. An example is
given in figure 3. The major prerequisite is to
properly define the lower level cost centers and
the application permits to consolidate them according to the specific reporting objectives (types of equipment, types of operation, etc).
6. Cost determinations
The various components of the open pit production cost are built up according to the following
sequence :
- maintenance costs
- operating costs of machines and equipment
- costs of basic operations and functions
and of auxiliary operations
- cost of production.
6.1. Maintenance costs:
They are defined in the maintenance branch (see
5.1.) of the hierarchy structure and include:
- operating and supervision labor with payroll burden and labor charges
- maintenance materials and supplies
- indirect maintenance costs from central
mechanical shops and repair facilities
- open pit maintenance department overhead
costs.

6.2. Operating costs of machines and equipment

They are obtained by adding the following expenses to the maintenance costs :
- operating labor with payroll burden and
all labor charges
- consumables and operating supplies
- equipment depreciation.
Analysis of those costs is made in the hierarchy branch described in 5.2. The same procedure
is a~plicable to fragmentation.
6.3. Costs of operations:
By allocating the operating costs of machines
and equipment to the working areas, the breakdown of basic and auxiliary operations is obtained. For the basic operations, it is convenient
to perform the allocations by utilizing technical references such as those mentioned in figure 1. According to the importance of the operating units and to the work organization chart,
costs can be either tabulated by individual unit
or by fleet of machines. It is also to be pointed out that, when using references, standard
unit costs can be applied but it is then necessary to allocate the variance with the actual
situation to the production costs.
Analysis of those costs of operations are performed in the hierarchy branch described in 5.4.
6.4. Overheads:
The components to be added in order to obtain
the complete costs of production are the remaining direct costs (labor, supervision and
miscellaneous) and indirect costs related to the
open pit operations under the responsibility of
the mine manager such as :
- administration and offices
- indirect labor of various technical services
depreciation and amortization
- engineering and quality controls
personnel department
safety, training and inspection
transportation of personnel
fuel distribution
- automotive
Those costs are analyzed in the hierarchy
branch described in 5.5.
6.5. Units of references :
Among the technical references, the hour of
productivity or availability is very useful to
measure and allocate the machine costs. Drilling
can be reported either to the volume or weight
of material extracted or to the length of hole
drilled. For comparing drilling unit performances
in different types of rocks, it is convenient to
use the standard length of drilling (stm). Cubic
meters and tons are the most common measures for
operations, extractions and productions. Explosives will be measured in tons. Other references
such as truck hour, m3km and tkm are very useful
for analyzing surface haulage. For comparing
truck haulage operations, kilometer can be converted in standard kilometer. In this case, the
grade is converted into a horizontal distance.
The choice of the references depends upon the
type of cost allocations to be performed (budget,
actual, simulation).
Tt~ following operations and functions were
considered :
- drilling
- blasting
- loading
- truck haulage

railroad transportation
power distribution
water pumping
earthmoving
6.6. Cost consolidation
The criteria utilized for cost determination
allow to preserve the individuality of the various components of the overall cost or to build
them up partially or totally according to the
requirements of the control and to the level of
responsibility. It is important to emphasize that
the consolidation of the expenses can also be
performed according to other criteria which will
be discussed later.
Full costs are obtained by further adding the
overheads of the division and of the company.
7. Input validation for data processing
The entry of all actual expenses related to labor, spare parts, consumables, depreciation, distributed services from internal divisions and of
the technical references is performed through
subsystem interfaces.
Real time key validation is an important step
implemented before allocating actual costs. Figure 4 gives a schematic view of the application
used for processing information issued from the
dispatching control of all the drilling, haulage
and loading operations and explosive distribution
in the various open pits.
In a first step, the data bases are entered
into a working file (number of operating hours,
number of tons of explosives, number of haulage
trips, type of ore excavated). During this step,
the system checks the records against the validation files and errors are immediately corrected. Examples of validation keys are given in
figure 5.
In the second step, the system calculates the
statistical references which must be used in the
reports such as the volume of excavations and
tons of ores and the costs of the operations and
functions.
During this program, the key records (unit rates, densities, distances, etc) are taken from
an external table which is regularly up-dated.
A further validation is also performed against
the master file which stores the accounting records and the control file storing the accounting
control parameters.
When the transactions are accepted, they are
stored in a waiting file. The transaction journals can then be posted in batch mode according
to a daily schedule.
A simulation class is used for project evaluation and will be discussed later.
8. Reporting and connecting with microcomputer
The reporting contents vary according to the
destination. The corporate controller needs reports giving income and expense information,
overall cost analysis, ratios and key performance indicators, financial comparisons between
major centers of responsibility and consolidation
results.
The operation management and the branch controller analyze the same reports but need to crace the origin of the results at lower levels of
the hierarchy. They relate those costs to various
technical references which are less useful to

higher management.
The reports can be presented in different ways:
- by using the report tools of the system
i tse 1
- by utilizing microcomputer and a conneccion with the mainframe.
The first option is used for editing the financial and standard reports which are regularly sent to the operation and maintenance managernen t.
The second option is extremely useful to analyze special reports needing the analytical power of microcomputers. Lt is especially utilized
for applications linked with financial analysis,
investment and strategic decisions, cost optimization, special cost investigations and for editing graphics and diagrams. By using this procedure, it is also possible to restrict the
amount of technical data to be introduced in the
master files of the mainframe system.
Some report examples are given in figure 6. The
production costs report (fig. 6.4) can be issued
at the level of the branch manager as well as
at the position of site 1 and site 2. It is important to emphasize that the overall costs will
only be obtained at the highest level. For example, a report issued at a level of "site" will
not include the division overheads.
Basic operation cost reports (fig. 6.3) can be
issued at any level of the operation branches,
until the lowest position in the hierarchy.
The reports giving the operation costs (fig.
6.2) are created to analyze the expenses at any
level in the equipment branch. Similar reports
can be set up for fragmentation.
Finally, the maintenance cost report is to be
utilized in the maintenance branch.
The headings of the reports can be structured
according to the needs of the users. There can
be actual or budget amounts, variances, formulae combinations or even simulation amounts.
Those actual costs are compared in real time or
in batch mode to the different budgets (annual
budget and its recurring revisions, previous budgets, etc).
9. Simulations and financial evaluations
When the costs are properly allocated, it is
further necessary to provide the tool which will
allow their optimization within the open pit
configuration. The most appropriate short term
and long term investment allocations will be determined, particularly concerning equipment replacements and installation of new machines or
operating schemes. Simulations should be perfor!:led to e'laluate the best financial opportunities.
An example will illustrate such a simulation and
the microcomputer connection.
Let us suppose that the examination of one topmost position report shows an adverse evolution
of the overall production cost and that the reasons have to be found in the basic operation expenses. The report giving the breakdown of the
operation costs (fig. 6.3) will show which operation is responsible for the adverse results.
More particularly, the fleets or machines inducing those effects will be detected in the reports analyzing the machine costs and the maintenance reports will indicate full details history of the mechanical failures.
Improvements to be expected after major over-

hauls or replacement of the incriminated fleets

or machines by larger or more efficient units
will be analyzed as fo1lo~s :
- all the actual amounts and references to be
taken into consideration and used in the reports described previously will be duplicated in high volume in the simulation class
which will now on be utilized for all analysis
- data corresponding to the incriminated
fleets or machines will be downloaded from
the mainframe to the microcomputer
- maintenance and operation costs to be eXpected after overhaul or replacement will be
evaluated and introduced in the microcomputer
- the project will be analyzed on the microcomputer by comparing actual and expected
situations, independently from the mainframe
- after completion, the new expected costs
utilized in the microcomputer can be uploaded again in the mainframe simulation classes for further analysis.
Upload and download can be performed in a matter of minutes. The procedure can be repeated as
many times as necessary for specific project analysis.
Figure 7 gives a methodology example of investment project evaluations on microcomputer.
It shows the simulation of the replacement of a
given number of shovels by more modern and efficient units and of a given number of rear dump
trucks by larger units. The shovel project is
analyzed in report 7.1, at the center in the hierarchy corresponding to the synthesis of the shovel operation expenses. The same project can be
analyzed at the topmost position of the hierarchy (report 7.3) and the results in terms of IRR
and NPV are of course the same. Rear dump truck
project is analyzed in report 7.2 at the center
summarizing all truck operation costs. The analysis of the combination of both projects can
be easily done at the highest level of the structure as shown in report 7.4. It is to be pointed
out that for both projects, the equivalent hours
are utilized as references for allocating the
simulation costs.
Ln figures 7.1 and 7.2, the existing situations
are duolicated from a reduced number of records
only linked with the centers corresponding to
the shovels and dump trucks. Financial analysis
at high levels are done on aggregate costs and
therefore, the amount of records downloaded and
uploaded is always limited.
The projects to be analyzed have generally
unequal investmen~ amounts and unequal lives.
Nevertheless, within a given number of matured
projects and a capital budget constraint, it is
possible to analyze easily the combinations giving the highest net present value. Lf capital
rationing results in project removals, opportunity costs can be evaluated.
The foregoing method of simulation and financial analysis can be duplicated to many other
applications such as :
- the study of cost evolution versus the ratio of overburden
- analvsis of new methods of operation
- new haulage and transportation schemes
- effects of fragmentation improvements etc .
Ln any case, the foregoing procedure remains
app licab Ie.

10. Conclusions
The foregoing system is very flexible. Reliability is also excellent due to the validation
keys in real time installed before processing
tne actual information. Turnaround time to collect data and to process it is very short, even
for the analysis involving the use of a microcomputer. As a consequence, adverse cost situations can be immediately traced and corrections
applied in maintenance and operation. Repairs and
replacement of equipment can also be easily anticipated.
As a single data base is used for all the financial and technical informations, all the results will be equally reliable.
A similar system is now being implemented for
the management control of underground mines and
concentrators and integrated programs are installed to further increase the range of analysis
to be performed, especially for comparing underground mine and open pit performances.
II. Acknowledgments

The author acknowledges Mr. Mulenda Mbo, President and Managing Director of Gecamines, for
the permission granted to present this paper
and Mr. Y. Marois, Financial Manager for his
contribution during the development of the projects. The contributions of Mr. Kapuya and
Mr. Polet were also appreciated.
12. References
Ernst & Whinney, 1985, "Accounting for Mineral
Companies. A Guide to Understand Financial
Statements of Mining Companies in an International Environment", Finance for the Minerals
Industry, Society of Mining Engineers, New
York, pp. 171-228.
Gentry, D.W., O'Neill, T.J., 1984, Mine Investment analysis, Society of Mining Engineers,
New York.
Schenck, G.H., 1985, "Methods of Investment Analysis for the Minerals Industries", Finance
for the Minerals Industry, Society of Mining
Engineers, New York, pp. 77-93.

Drilling
Blasting
Loading

Trude transpor1ation
I Railroad haulage

I EarttlmovinQ

I
I

m3

!m3Iml IImJ

x
x
x
x

x
x

II

x
x
x

x
x

x
x

I
I
I

FIgUra 1. Some refen!nces used for cost allocations in open-pit mining.

,5.1

1:
1~.4

I Maintenance i
I

Earth-

Eqt

~mOVing

:
Drilling
, - - - machines

Drilling
machines

SiIB 1
(Fig. 3.2)

Blasting

Site 2

Admin.
Engin.
Person.

~Safety

,---

Shovels

Truclls

_I_ _ Shovels

,
,
I

r--

Tn.JCks
(Fig. 3.1)

Raiiroa:l

i_ _ Railroa:I

haulage

haulage

FlQure 2. Example of cost control hierarchy.

L-- Training

Automotive

lRUCKS

100 T
150

150

STDT

lROI.l..EY

I
R..EET1

R..EET2

Figure 3.1 Operating costs of rear dump ~ple of detailed structure.

Earthmoving

WatIIr pumping
Drilling

Blasting

Indin!ct c:ost3

LRailroed

haulage

Loading

Transportation
Figure 3.2 Costs of operations - Elampie of detDlled structure.

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"i\"~ -11TH"
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'1--+Ret'l!..
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Figure 4 : Cost processing and siMUlation.

iDate
Type of operation
Fleet
Center of work
Machine number
!# Reference (unit)
# Reference (sp. part)
I Type of product
Destination
IAccounting period
IMachine allocation
Product I Destination
Product I Origin
I Cost deferring

I
I

I
I

VaidIdion
Fie
CF
VF/MF
VF/MF
VF/MF
VF/MF

VF
VF
VF

VF/MF
CF
VF
VF
VF
VF

VF: Validation file

C F: Con1101 file
MF: Maler file

Figure 5. Data base validlltion.

$
$
$
$
$

G.2

I
I

I
I
I

eDIts at naJilES

Labor:
Consumables:
Maintenance (from 6.1):
Depreciation:
Total:

$
$
$
$
$

I
G." ProcIuctian costs

SIa'iIticeIU'ii._
Hours of utifization:
Costs I:nIIIcdawn:
Labor:
Conaumabtes:
Maintenance:
Depreciation:
Total:

$/h
$/h
$/h
$/h
$/h

costs

Ua.ic

Division overheads:
Operation overheads:
Water pumping:
Basic op. (from 6.3):
Total:
Production:
Ore A:.
Ore B:
OreC:

TolBI:

$
$
$
$

t
t

t
t

Drifting:
Blasting:

$
$

IProduction cost

Loading:

$
$
$

~IG.5~Scmarray~!!!ii~oI~cmt~. ~
..
!!!!!i,Lt

T
Total:

StItiIIic* ......-:
Excavationa:
Units costs:
Drifting:
Blasting:

Loading:
Transportation:
Total:

m3

==111

I!Labor:
Materials and supplies:
i Power:

$/m3
$/m3
$/m3
$/m3
$/m3

$It

Utilities
Inclirect costs:
External cootracton:
Depreciation:
Total:

Figure 6. Examples of control reports.

$
$
$
$
$

$
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10

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4089

2159
6248

2l7i'
3425

2194
j:)o19

2205
12824

41. '4h

~pvam

2115

=:=:==::=:==========-=---======:==================:==================================:===::::::===:=:=:::::::=
STATISTICAL DATA

flHt ~tile~t t21i~et t3fiaet 14fleet tSflaet iOiieet H la\al

mSTlN6 mUAiiQN
MOiV':

!}t

lit i;

E'~llr!aleilt

izatiQn

hours

11:98t

3246

1504

7455

5077

~752

:948

95;)4

'l55

"' ..1')7

tc::n

1'~,

~ 47,3

150

$ih
+1 ..

i.

;l::.li.

1734b
,40

Hw, )' 'Hilization

:>"Jinl!nt hom
1ft,
~! ~,~,

:')(;0
$!~3

~3

:1881
4752

3246
1945

14073
14073

745S
7455

3695
:473

5264
~264

45614
34970

11

Y;ar-

i'

.1

EXISTING 5ITUATICN
LLabor'
2. Consu~ab i ~s
3.Maintenance
4.Amllmmls

rear' t Year 2 Year

110
7722
4592
2B50
15274 .

Tot;.!

SIMULATION
t .Labor

l(;b
7022

2lConsu~abies
31~aintenanc~

4H":'
. .. w_

4.Aaor-timmis

3507

ill)

no

Yw" 4 i ear S TS:l

110

Y:dr'

110

iI,Hu.,

ii,";

77('

"!\J .i

C:4C.

463B

4661

1lO
7722
4685

470E,

A""!'~

3263e

2850

2550

285(

2e5;~::

~a5{l

2350

~ Q~t,t:

il:"',n"!

11::1'",/1

4Z=:~'1

p::,"!l,""

1529~!

fUL.

10b
7022

4153
3507

4104
3507

106
7022
4184

~.,,.,,.,

if

~6.

lJ ... i:

;f!'
l'lD

7722

.. j"u..I.'

ii''lI':

~.;Jh':

-or"""
JJVi

l..;J'.Ji

..,71....1

, i ~i.

54(15~

'"

i~i.

106

\06

702::
4' ~,
35,)7

,,:,,";":'':1

lu.:

:'.'~6.

4:~6

3507

,,

P~

..I.

~.!.,

.,

.. .;

lOb
7022
4\88
3";:

II::?!:)!.

7!;
4Qi 5':'

29292
'iJce;"

i..'t:.'.;V

14817 \48\8 14m 14820 14821 14822 14m 103?! ~

Total

657

Depmiation

657

657

Imstlent

-4600

Operating save
CP. save (cumuiated)
IRR

-4600 1114 1136 1158

-4600 -3486 -2351 -1192
16,81
260

't;,

b.1

657

0
1180

-12

657

'"

tail

4600

1203
119:

12:5
2416

1247
3663

NPVam
::=::.=============---===================================================-::=========
ileettl fleetf2fleett3 To\al
STATISTICAL DATA

EXISTING
Hours 0f uti 1i zat i Of;
Equival ent hom
}/h

$ie .h,
1000 1i3

68390 35400 62501 166292

b8390 531(\' 93'53 215243
~2
i~

t.

!7346

Si;3

SI"ULATlON
Hours of utilization

Equivalent hms
$/h

He.h.
113

S/;3

3B390 35400 82502! 56292

38390 5310(1:23753 215243
95
'n

07

\ 7346
,BS
Figure 7.2: Du;p trucKS pr"oject Evaluation

12

,
Ym f Yw 2 Ym 3 Year 1 Year ..

rm

~mm6
.~:'Il ; JOn

sruATI ON
>lVIi-'I.aos
.uperal!of! uwn/ads
. ~at!r plmi"g
Poyer Iji stfl but IGn
.Cpmiions

Y~ar il

Y,ar 7 Ye;r 8 Ym-'! Year 10Total

-)'~O

Y1~'1
2332 2382 2302 Z382 2332 2382 1.;,I1"i'"
2382 ~J82 d1.iL 235:0
"'';7'"
hlt.l ..
<\01 .. 1 ..
13272 ~32720
13272 13272 t327i \3272 11272 !3~72 ~....1"17')
,,-, - "'1"')
11;1
. ,1
114
114
114
!l4 t"
\ 14
:
14
114 fl4fJ
tP
tSq!)
\39
:39
lB9
189 lB9 139
:89 139
t~9
189
59170 59190 59210 59231 59151 :9272 59292 593!3 jqJ34 59354 59261'

75127 75147 75167 75183 75208 7:Z29

Tiltj 1

'!~I":JQ

f .. l..i',

75;:70 75291 75311 752137

iI~IJLATIQN

2382 2382 2332 2382 m2 !382 23~2 2332 L332 23,~2 E32(i
; i27Z)
t3272 13272 13272 t3272 '''''\''Y'\to \3272 tJ272 i3272 13272 J'j'i"!"1
h;Li'
t! Jij
114
ti4
l!4
!14
114
114
114 1!4 114
\14
189 189
189 139 189 :89 139 189 189 iS9:i
t89
57971 57973 57974 57975 57976 57q77 57980 57932 57986 57996 57979:

lon 'J'{erh~ads
2.,Jmai !On ;verheads

!.~::"d;

3.~etH

~.J'::'I

;lJ!pir,g

l. P?iler di~tribijtion
S.~PEfatiol'is

;"tal

73930 73930 73931 73932 73933 73934 73937 73939 73943

DmEiation

347

847

847

I~'1estment

-8466

Qpmti1g save

-8466 2044 2064 2083

-8466 -6422 -4359 -2276
21,21
2116

,JP.

:ay~

IiR
~pVa15~

(cu!ulatedl

!)

a47

347

'H..,.,
...... ..;.
r148

2142

347

847

347

~~"C;~

1j'7Jj

:"O~J""

;-l.JOL

347

2103

-174

!i)9!i

2159 2178 21QS 22(;5

S2 48 .3426 i0620 12825

==================:::::===::===========================================:======================::======
17346

31 :b
4,34
'"1J

Jf

.::.",11

~, 26
,,"':'

... ""!'

i.J,I.l

13

EXISTING SITUATION
.hvisiofi GVer'tieaas
.O~'H'ativn UVHrieaas

23&2
13272
114
189
59170

,Water' pila:t'lng
~POWH distribution
.GpHatior.s

2382

2332

2382
t ~",~>"l
t,] .. ; L

4"7'!~'-;

bH.I.r..
! i

23c:
7','7'-

~.u.

.',

... " ,..:..

1'.~

.i'!'

lB9
59256

139
:,930{}

S93BB

59431

"':'t: }!,.,

75257

75127

593:3
~.t..

ie.'lOI
'.' ... 1.

SI~ULATI0N

l.[il'lisiun overheads
2.0 pHation over-heads
3.WatH" pUlping
Uom distribution
5.uperations

2382

";1Q',

13272
114
189
57516

13272

2352

L .... UL

1')'7':

.w~1

13272
114
189
57521

2382
13272
114
189

2382
1327i
114

57525

ll!
18
579Si

73480

73452

73486

73939

:504

847

B4?

847

2m

2i 95
g2e7

2205
lb492

189
57517

114
189
57519

73474

73476

1504

1504

1504

1504

1504

1504

lnveshen!

-13066

Operating save
Gp. sm (cumulated)

-130bb 3158
-13066 -9908
1M!

3200
-6705

3241
-3467

3283
-184

3325

3367

3141

650~

Tola 1

vepr"eciatiofl

NPVaI5i:

238:

2382
13272
114
lS'
57529

t89

2382

i3272

120n

189
57986

:1-";
:7(;614
73953

":t'71'g

L..r! u

===:::::========================---=========:=========:==:============:=================================================

Statistical refmnm
EXISTING SITUATION

EmvationiR3)
Dr"e mduction(U
$/~3

m.

S/L01 o'"e

17330
311b
4,34

24,16

SIMULATION
EmvatlOn(~3Ij

fmO

Ore prodlJction(t)
$/~3 m.

31:6
4.25
23,62

S/Lof ore