Trained Manpower And Progress In The Mining Industry

Automation of mining increases the productivity of labor, thereby reducing the unit cost of labor. Such cost constitutes the largest portion of the direct or variable costs of producing coal. Therefore, any increase in productivity directly reduces variable cost. The large investment in mechanical equipment carries with it the burden of increased fixed charges. As the proportion of fixed cost to the total cost increases, the effects on the cost of production changes are amplified. Therefore, equipment must be fully utilized at all times. Averaged fixed costs rise with any decline in production. Such a situation forces coal companies to seek every means of main¬taining full production. Figure I will reflect the story on the relationship of production to cost.