Mine and Mill Labor Productivity Study Shows Wide Range of Values

Introduction Labor is the major cost element for most mining operations. Labor costs are continually increasing, both in nominal and constant terms. This is true in developed as well as less developed countries. There are two ways to control unit labor costs - labor costs per ton of ore mined. Replace labor with capital (increased mechanization) or improve productivity (reduce the labor force). Every miner is aware of specific inefficiencies at his or her particular operation. But the miner has no comparative measurement standards. So it is difficult to know whether these inefficiencies are major or minor. The miner may also be unaware of large-scale inefficiencies because ongoing labor practices may have caused management complacency. Met Research studied mining labor productivity. The firm collected pilot data by sending direct-mail questionnaires to 320 nonferrous mining operations around the world. The response rate was 27%, of which 78 operations provided full data on production and employment.