Cost Ranking Studies in the Mining Industry

Whilst decisions to commit projects have traditionally been heavily influenced by hurdle rates for d.c.f. analysis, it is suggested that evaluation of competitors' costs may be a desirable additional tool.The MICAS system developed over the past four years is described. This computer system uses standard costs modified by District and Mine factors to allow estimation of individual mine costs. The data base contains more than 15,000 items of data and more than 6000 costs are calculated.Recent applications include use for competitive analysis, predictive analysis, statistical analysis, and comparative assessments with scopes ranging from a few mines to the whole Australian export industry. Some areas where care is necessary are outlined and potential further uses are discussed.