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Given an underground total mining cost of $8.50 per tonne, surface mining costs of $2.25 per...

Given an underground total mining cost of $8.50 per tonne, surface mining costs of $2.25 per tonne of ore and surface mining stripping costs of $1.95 per tonne of waste. Calculate the break even stripping ratio, (i.e with zero profit) between surface and underground mining. That is, the point at which underground mining should be contemplated

please type your answer, please do not write on the paper and post it

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Answer #1

Stripping ratio is the ratio between the waste removed to the ore mined. Break even stripping ratio is the strippig ratio where the cost of removing the waste and mining the ore are same as the revenue generated for that block of ore.

It is given as :

BESR = (Revenue / tonne of ore - production cost ) / stripping cost/tonne of waste

given the values,

BESR = ($8.50 per tonne -  $2.25 per tonne) /  $1.95 per tonne

BESR = ~ $3.21 per tonne.

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