Syllabus

Unit-4 : Cost of Mining Operations

Syllabus
1. Cost of various mining operations,
2. Optimum size of mines,
3. Mode of opening up of deposits
4. Choice of opening,
5. Location and size of Development
openings,
6. Mine closure plan.
 Sequence of Mining Operation
Selection of Mining
Face Ssample
faces for ROM Drilling
Sampling Analysis
preparation

ROM feed to Shovelling /

Pr. Crusher & Transportation Blasting
Loading
storage in PSP

Sec. crushing & Transportation & Reclamation &

LUMPS
washing, Screening & storage of Loading of
Dispatch
storage in SSP LUMPS at Siding LUMPS

Transportation & Transportation & Reclamation &

FINES
storage of FINES at storage of FINES Loading of
Dispatch
Siding at Siding FINES
 Mining Operation Costs
1. Drilling Cost
2. Blasting Cost –
(i) Explosive transportation
(ii) Explosive Consumption
3. Development & Face selection –Drifting, Quality
assessment of Faces, Preparation / Mucking/ Face
Dressing Costs
4. Water Pumping Cost
5. Mineral Extraction from Mining Faces
6. Strata Control- Supporting etc.
7. Ventilation Cost
8. Cost of Shoveling/ excavation including maintenance.
 Mining Operation Costs contd..

9. Cost of Material Transportation including maintenance of Conveyors/

skips in shafts, Material Handling ( Processing) Plant & Loading Plant etc.
10. Cost of Office maintenance
11. Ancilary Operation cost ( includes Machinery maintenance costs also) –
(i) Dozing / Grading- Haul Road & Floor maintenance
(ii) Health, Safety & Training
(iv) Lighting Cost
(iv) Communication Cost
(v) Environment Cost – Road wetting , Plantation etc.
12. Manpower Cost – Direct ( Operation ) Cost & -Indirect ( Overhead ) Costs
13. Stores , Magazine & Miscellaneous Material Transportation costs.
14. Royalties & Taxes
15. CAPEX costs by considering Depreciation & Amortization etc.
16. Miscellaneous Costs of Camp, Hospital, School, Playground etc.
( Overhead Costs)
 Optimum Size of Mines
Factors affecting are:
1. Quality of Ore with its Market price .
2. Break-even point of Production & Project size.
3. Proved Reserve /Deposit capacity .
4. Life of the Mine & its Internal Rate of Return (IRR) / Return on Investment
(ROI) etc.
5. Technology available for extraction & Processing of Ore to customize to the
need of the market.
6. Geological disturbances ( Fold, Faults, uncoformity, depth & Strike, Ore
body thickness etc. ) & Hydrological Factors ( Rivers, lakes etc. ) affecting
percentage of ore exploitation from mining faces.
7. Surface features – permanent structures & fetures, e.g. Railway, Airport,
Villages, Historical Monuments etc.
8. Other Technical constraints to exploit the Ore from Mining Faces- safety
factors mainly e.g. Gassy Coal Mines degree, Depth of Mines posing- strata
Control problems, Temperature Rise , Danger of Inundation & Fires etc.
9. Lease area granted.
Break Even Point
 Access to Mines – Location depends upon
1. Barren Land- so that support pillars/ box-cuts do not cover the more
part of deposit for life of the mine.
2. Hydrological Conditions- away from water table/ river etc. On Higher
level – its opening level > HFL of the area for last 40 yrs. by 1.5 Mtrs.
3. It should approach to maximum portion of deposit with least lead
distances/ lift etc.
4. It should be away from underground Mine working to avoid blasting
vibration effects.
5. Rock condition should be tough/ strong- least seepage of Ground
water.
6. Least depth needed to mine the deepest working of economic
viability because shaft sinking per mtr of depth is costlier than any
drivage making cost per meter.
7. Nearer to the Railway station – cheaper Transportation. No hurdles
of Line Crossings/ River etc. to reach siding.
8. Overall depth of Shaft sinking required including sump depth.
 Suitable means of access
1. O/C Mining by accessing from a Box-cut is suitable for –
1. Depth < 150 Mtrs.
2. Hanging wall Highly fractured & weak
3. If not very High Value Ore
4. If you need to go for Higher % of extraction.
5. If Flooding required in Old Coal mines to extinguish Fire.
 Shaft for Underground Mining is suitacble :-
1 For Greater depth > 150 Mtrs.
2. If Mineral is of High Grade having higher market value.
3. Surrounding Area is important from
-Environmental Point of view
-Thickly populated area
-Some National Interest
 For steep hilly area, Adits/ Tunnels are preferred.
 Geological & Hydrological features of the area.
 Overall Cost shaft sinking/ Access making
 Lead Time for starting Production as shaft sinking is much more time taking in
comparison to other accesses making.
 Types of Opening in Mines
1) Surface Mining:- Max. upto 300 mtrs. depth if economy permits otherwise up to 100
mtrs. Depth normally.
(i) Box-cut – May be having up gradient/down gradient.
(a) External Box –cut
(b) Internal Box-cut.
(ii) Ramps- May be having up gradient/down gradient.
(a) Spiral
(b) Z-shape( Zig-zag)
2) Under ground Mining:- Beyond 300 Mtrs. Depth.
(i) Adit
(ii) Inclines having gradient not exceeding 1 in 2 ( approx. 26 Degree with Horiz.)
(iii) Ramps
(a) Spiral
(b) Z-shape( Zig-zag)
(iii) Shaft:-
(a) Skip Shaft : Steeply Inclined > 50 Degree (more than 1 in 1) upto vertical position .
(b) Cage shaft - Vertical
Box –cut Contd..
 Multiple Box-cuts

Sutability:-
1. On vast area deposit of coal / sedimentary deposits
2. Shallow depth
 Single Box–cut to multi level approach

Sutability:-
1. On small area deposit of coal / sedimentary deposits e.g. Limestone/ Dolomite deposits
2. Shallow depth
 Spiral Haulage Ramps

Sutability:-
1. On smaller area , deposit of massive ore concentration
2. Increasing depth due to steeply dipping deposit
3. Massive ore capping on Height in hilly terrain.
Spiral Haul Road with some Zig- Zag spot
Zig-zag Haul Road
 Openings to Underground Mining
ADIT :- It is a horizontal opening to cut across a deposit
available at greater depth > 100 mtrs. on steep Hilly terrain
where outcrop cannot be reached with surface roads.
 Normally at mid / foot height of the hill or lowest portion of
an opencast working.
 Open at slope of hill/ bottom old open cast working .
 Closed at internal end after cross-cutting the ore body
 Slightly kept slanting outwardly ( not> 1 in 200) for drainage
outlet etc.
 If it cuts through entire hill & gets opened at other end, it is
called a TUNNEL.
Adit
Tunnel
Adit & shaft
Access to Underground Mine
frame
 Access Opening Size is decided by
1. Ground strength- Massive hard, sedimentary rocks, Alluvial
ground etc.
2. Geological Factors
– Folds/ faults,
- Reserve ,
- Ore body shape: massive, Lenticular etc.

3. Hydrological Conditions.
4. Productivity/ TPH Handling required.
5. Purpose- stoping , Raise/ Winze( small opening) in
underground
Mine Closure Plan
Mine Closure Plan contd….
 Requirement of Closure Plan

• It forms the part of Mining Plan Submission to acquire lease.

• It implies the need of taking care of EIA ( Environment Impact
Assessment ) & its management from day one of start of the Mining
Operation through implementation of the EMP ( Environment
Management Plan).
• The above point enables the Mine management to allocate budget
for EMP implementation , thus not burdening the former with
sudden & huge economic burden of Mitigation , Reclamation &
Rehabilitation plan of the area at the end of the closure of the
Mine.
• It gives direction to the Mine Management about how to implement
the theory of SDF ( Sustainable Development Framework) for the
mine operation in balanced way from start of the Mining Operation.
Dimensions of Low Profile Dumper/ Trucks

Usual Capacity : 6 T- 18 T
TUB CREEPER
Pit Bottom Layout for cage winding for a coal Seam Mining
End of Unit-4