RI 7311 Relative Effects Of Grouped Physical Variables On The Revenue-Cost System Of A Lead-Zinc Mining Operation

Physical variables, a principal factor in the economies of mineral production, affect both capital and direct operating costs. By using a revenue-cost system for the framework, the analyses of revenue and cost categories demonstrate the relative importance of groups of physical variables, whether explicitly defined or not, to a lead-zinc mining operation. Physical variables affecting the producer represent about 60 percent of the total system influence as expressed by cost ranking. Other physical variables affect the remaining costs as controlled by the smelter, the transporter, and the landowner. Such resource conservation aspects as mineral losses due to mining method and mineral processing constitute a portion of the total revenue effects of physical variables. The physical variable revenue-cost system presented in this report offers a framework for cost-benefit analysis of mineral related research.