Butte Paper - Mining Cost Accounts of the Anaconda Copper Mining Co.

The following is a brief description of the cost accounts in effect at the mines of the Anaconda Copper Mining Co. The accompanying chart, Table I., shows the distribution of labor, materials, and redistributable accounts to the various operating and repair accounts. OperatiNG. Development. Owing to the fact that every mine has its peculiarities in formation and methods, the question of arriving at what charges should be included under the head of " Development" is one that has occasioned considerable thought and comment, and in the cost sheet of the Anaconda Copper Mining Co. this account has been sub-divided to show the expenses of breaking ground, tramming, timbering, shaft sinking, up-raising, and cutting stations and skip chutes. It has always been the policy of the company to charge the entire cost of this work to operations monthly, whether the mines are producing or not, also the cost of the opening up of new mines; and only surface construction and additions are charged to capital, excepting original machinery installed for operating pumping plants. Explanations of the charges to the various sub-accounts follow : Breaking Ground.—Work performed in driving cross-cuts from the station, or cross-cuts from the drifts, and diamond-drill work, for the purpose of discovering or developing ore bodies. Tramming.—Cost of tramming waste produced by cross-cuts mentioned above. When waste is hoisted to another level to be used for filling, the charge to this account stops at the station, and when hoisted to surface the charge includes tramming from the collar of the shaft to the dump. Timbering.—Cost of timbering the cross-cuts mentioned above includes the cost of handling and framing such timbers, but does not include the wages of station tenders and top carmen.