Bottleneck analysis for single source mining model using grids

S. A. Richards, S. J. Schafrik, T. Faulkner

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Classic engineering economics provides the mining engineer with a fundamental approach to choosing between capital spending alternatives. This approach has been heavily used over the years and is an accepted technique for most investment decisions. There is a shortcoming that I have run into over the 15 year period when I worked in business planning roles. The classic time value of money approaches such as Net Present Value, Return on Investment, and Internal Rate of Return provide good estimates, but the input assumptions may fall short of describing the real material differences required by these analysis techniques, if the cost benefit analysis is defined solely on the improvement of the item being replaced or improved, the true profitability of the decision may be overestimated. Productivity improvement based capital projects can yield more accurate forecasts when conducted in concert with a "bottleneck analysis".

Original languageEnglish
Title of host publication2016 SME Annual Conference and Expo
Subtitle of host publicationThe Future for Mining in a Data-Driven World
Pages803-806
Number of pages4
ISBN (Electronic)9781510825659
StatePublished - 2016
Event2016 SME Annual Conference and Expo: The Future for Mining in a Data-Driven World - Phoenix, United States
Duration: Feb 21 2016Feb 24 2016

Publication series

Name2016 SME Annual Conference and Expo: The Future for Mining in a Data-Driven World

Conference

Conference2016 SME Annual Conference and Expo: The Future for Mining in a Data-Driven World
Country/TerritoryUnited States
CityPhoenix
Period2/21/162/24/16

ASJC Scopus subject areas

  • Geology
  • Geochemistry and Petrology
  • Geotechnical Engineering and Engineering Geology

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