Costs And Financial Evaluation Methods In Ventilation Engineering. ? Introduction

The nature of business in a free enterprise system is to maximise the return on an investment i.e. to maximise the wealth of the shareholders. This is normally achieved within constraints dictated by many agencies, one of which is the health and welfare of the employees. In the mining industry considerable effort has been expended in improvements in this field, however, the major problem still confronting the practicing ventilation or environmental engineer is the determination of what standards he should design for, which satisfy both the economic and health requirement s. Normally the basic health requirements are satisfied by the minimum standards defined in regulations and codes of practice. These are, however, based on an acceptance of a certain risk or lower production potential. A prime function of the ventilation engineer is therefore to financially justify and implement improvements to both standards and systems. The main purpose of this paper is to examine the basis and techniques of providing this financial justification. Changes in existing methods to achieve the same standards but at lower costs are also covered.