Mining Cost Control - One Answer To Diminishing Profit Margins

Much has been written to explain decreasing profits in American industry. Foreign competition, the attitude of government, rising tax burdens and increased labor costs have been blamed in turn. Whatever the cause, management in the mining industry, as elsewhere, is increasingly aware of diminishing profit margins. A mine operator is usually unable to do much about the causes of decreased profits, even if he knows what they are, but he can check the trend in part by cutting the cost of operation. To do this, he must know what his costs are, which of them are most significant and then go about reducing them in a systematic and logical manner.