Cost estimation for mining

(1 student review)

Online course

50 hours / 6 weeks

Dates: 24th of January to 7th of March

Standard Unemployed Or Student
$299 $207

Introduction

The products of mining are a key portion of human existence. Mined commodities will be crucial in the world’s transition to a greener economy. Mining operations require significant capital funding, so risks must be well understood and carefully controlled. In addition, the properties of a mineral deposit, such as grade, hardness, and continuity, can be highly variable, often in an unpredictable manner. These constraints make it extremely important to make an accurate estimation of the capital and operating costs for any mineral project.

This course will cover the methods of estimating costs for the mining and production of mineral commodities, including factoring, indexing, and use of cost data bases. Participants in the course will complete a case study for a mining project, selected from a group project data sets provided by the instructor.

Objectives

At the completion of this course, participants will:

  1. Understand the properties of a mineral deposit that affect costs—grade, reserves, mineralogy, etc.
  2. Understand the capital constraints of the mining industry
  3. Understand the importance of accurate cost estimates in the development of a mining project
  4. Understand the use of factoring and indexing in estimating mining costs
  5. Understand the relationship of capital costs, operating costs, and profitability
  6. Understand how variation in a mineral deposit’s properties, and the interaction of those properties with costs, can affect the profitability of a mine
  7. Complete a cost estimate for a model mining project, and analyze how that estimate affects the project’s profitability

Limited places.

MODULE 1—The nature of value

  • – The definition of ore
  • – Grade and reserves
  • – Mineralogy
  • – Location

 

MODULE 2—The development of value

  • – Prospecting and exploration
  • – Preliminary economic analysis
  • – Project financing
  • – Capital constraints

 

MODULE 3—Project valuation

  • – Project pro forma analysis
  • – Net present value (NPV)
  • – Net cash flow

 

MODULE 4—Cost estimating methods   

  • – Basis for factoring
  • – Common cost indice
  • – Mining cost data bases
  • – Examples

 

MODULE 5—Cost estimates in project valuation

  • – Simple effect of cost variation on NPV
  • – Effects of changes in ore properties on costs, and the carry-on effects on NPV

 

MODULE 6—Cost estimate case study (for each participant)

Dr. Michael G. (Mike) Nelson

Dr. Michael G. (Mike) Nelson is a professor of mining engineering at the University of Utah. He previously held a similar position at the University of Alaska Fairbanks, where he was also the manager of the University’s Silver Fox Mine. He holds degrees in metallurgical engineering, applied physics, and mining engineering. Mike has worked for Kennecott Copper, Westinghouse Electric, Consolidation Coal, and EIMCO Process Equipment, and has served as a director for several mining and exploration companies. He holds nine patents in mining and mineral processing technology. Mike has authored 21 books and book chapters, and numerous technical papers. He has given invited short courses in the U.S., Australia, Ecuador, and India, and has been an expert witness in the U.S. and Australia. He was recently elected a Fellow and Distinguished Member of the Society for Mining, Metallurgy, and Exploration.

The course is delivered online through our easy-to-use Virtual Campus platform. For this course, a variety of content is provided including:

– eLearning materials
– Videos
– Interactive multimedia content
– Live webinar classes
– Texts and technical articles
– Case studies
– Assignments and evaluation exercises

Students can download the materials and work through the course at their own pace.
We regularly update this course to ensure the latest news and state-of-the-art developments are covered, and your knowledge of the subject is current.

Live webinars form part of our course delivery. These allow students and tutors to go through the course materials, exchange ideas and knowledge, and solve problems together in a virtual classroom setting. Students can also make use of the platform’s forum, a meeting point to interact with tutors and other students.

The tutoring system is managed by email. Students can email the tutor with any questions about the course and the tutor will be happy to help.

The course is intended for those with a background in mining, mineral processing, cost estimating, or finance. Participants should be familiar with Microsoft EXCEL, and basic statistics.

Once a student finishes the course and successfully completes the assignments and evaluation tests, they are sent an accreditation certificate. The certificate is issued by Ingeoexpert to verify that the student has passed the course. It is a digital certificate that is unique and tamper-proof – it is protected by Blockchain technology. This means it is possible for anyone to check that it is an authentic, original document.

You will be able to download the certificate in an electronic format from the Virtual Campus platform. The certificate can be forwarded by email, shared on social networks, and embedded on websites. To see an example, click here.

Those who complete the course will have opportunities for employment or advancement with mining companies in mining engineering, mineral processing, mine accounting. There will also be opportunities with engineering design companies, investment firms and brokers, and government agencies.

 

Introduction

The products of mining are a key portion of human existence. Mined commodities will be crucial in the world’s transition to a greener economy. Mining operations require significant capital funding, so risks must be well understood and carefully controlled. In addition, the properties of a mineral deposit, such as grade, hardness, and continuity, can be highly variable, often in an unpredictable manner. These constraints make it extremely important to make an accurate estimation of the capital and operating costs for any mineral project.

This course will cover the methods of estimating costs for the mining and production of mineral commodities, including factoring, indexing, and use of cost data bases. Participants in the course will complete a case study for a mining project, selected from a group project data sets provided by the instructor.

Objectives

At the completion of this course, participants will:

  1. Understand the properties of a mineral deposit that affect costs—grade, reserves, mineralogy, etc.
  2. Understand the capital constraints of the mining industry
  3. Understand the importance of accurate cost estimates in the development of a mining project
  4. Understand the use of factoring and indexing in estimating mining costs
  5. Understand the relationship of capital costs, operating costs, and profitability
  6. Understand how variation in a mineral deposit’s properties, and the interaction of those properties with costs, can affect the profitability of a mine
  7. Complete a cost estimate for a model mining project, and analyze how that estimate affects the project’s profitability

Limited places.

Read more

MODULE 1—The nature of value

  • – The definition of ore
  • – Grade and reserves
  • – Mineralogy
  • – Location

 

MODULE 2—The development of value

  • – Prospecting and exploration
  • – Preliminary economic analysis
  • – Project financing
  • – Capital constraints

 

MODULE 3—Project valuation

  • – Project pro forma analysis
  • – Net present value (NPV)
  • – Net cash flow

 

MODULE 4—Cost estimating methods   

  • – Basis for factoring
  • – Common cost indice
  • – Mining cost data bases
  • – Examples

 

MODULE 5—Cost estimates in project valuation

  • – Simple effect of cost variation on NPV
  • – Effects of changes in ore properties on costs, and the carry-on effects on NPV

 

MODULE 6—Cost estimate case study (for each participant)

Read more

Dr. Michael G. (Mike) Nelson

Dr. Michael G. (Mike) Nelson is a professor of mining engineering at the University of Utah. He previously held a similar position at the University of Alaska Fairbanks, where he was also the manager of the University’s Silver Fox Mine. He holds degrees in metallurgical engineering, applied physics, and mining engineering. Mike has worked for Kennecott Copper, Westinghouse Electric, Consolidation Coal, and EIMCO Process Equipment, and has served as a director for several mining and exploration companies. He holds nine patents in mining and mineral processing technology. Mike has authored 21 books and book chapters, and numerous technical papers. He has given invited short courses in the U.S., Australia, Ecuador, and India, and has been an expert witness in the U.S. and Australia. He was recently elected a Fellow and Distinguished Member of the Society for Mining, Metallurgy, and Exploration.

Read more

The course is delivered online through our easy-to-use Virtual Campus platform. For this course, a variety of content is provided including:

– eLearning materials
– Videos
– Interactive multimedia content
– Live webinar classes
– Texts and technical articles
– Case studies
– Assignments and evaluation exercises

Students can download the materials and work through the course at their own pace.
We regularly update this course to ensure the latest news and state-of-the-art developments are covered, and your knowledge of the subject is current.

Live webinars form part of our course delivery. These allow students and tutors to go through the course materials, exchange ideas and knowledge, and solve problems together in a virtual classroom setting. Students can also make use of the platform’s forum, a meeting point to interact with tutors and other students.

The tutoring system is managed by email. Students can email the tutor with any questions about the course and the tutor will be happy to help.

Read more

The course is intended for those with a background in mining, mineral processing, cost estimating, or finance. Participants should be familiar with Microsoft EXCEL, and basic statistics.

Read more

Once a student finishes the course and successfully completes the assignments and evaluation tests, they are sent an accreditation certificate. The certificate is issued by Ingeoexpert to verify that the student has passed the course. It is a digital certificate that is unique and tamper-proof – it is protected by Blockchain technology. This means it is possible for anyone to check that it is an authentic, original document.

You will be able to download the certificate in an electronic format from the Virtual Campus platform. The certificate can be forwarded by email, shared on social networks, and embedded on websites. To see an example, click here.

Read more

Those who complete the course will have opportunities for employment or advancement with mining companies in mining engineering, mineral processing, mine accounting. There will also be opportunities with engineering design companies, investment firms and brokers, and government agencies.

 

Read more

1 review for Cost estimation for mining

  1. Jesús Alberto Vázquez Ayala

    With Ingeoexpert, I have been able to learn from the top professionals in the mining industry without the barrier of geography! The course on Cost Estimation for Mining is the perfect combination between the fundamentals, as well as the practical aspect of cost estimation.

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Cost estimation for mining
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