Cost reduction in mining industry: a conceptual analysis

Abstract

For rapid industrialization, a high degree of mechanisation has become inevitable, further increasing the capital investment. Mining statistics project a figure of 60 to 80% of the capital invested in a few new coal mining projects on mining machinery and around 5 to 15% on the development necessary to install the equipment. However, a mining property has a definite value only by virtue of its ability to produce profit over a span of years. The components and areas in which cost can be reduced are dealt with.