Course Details
Subject {L-T-P / C} : MN3005 : Mine Economics { 3-0-0 / 3}
Subject Nature : Theory
Coordinator : Dr. Santanu Bhowmik
Syllabus
MODULE 1: 7 classes
Minerals and Economy: Mine and Mineral Economics - scope and definitions, Economics of Depleting Resources - Major Issues, availability, secondary supply, conservation and substitution.
Mine Sampling: Theory of Sampling Common Methods, Size and Spacing, Sample Preparation Errors in Sampling, Interpretation of Sampling Results.
MODULE 2: 11 classes
Resource-Reserve Dynamics: Mineral Resource Classification - JORC and UNFC system, Estimation of Mineral Inventory, Marginal resources and reserves, cost and revenue concepts.
Mine Investment Analysis: Present and future values, NPV and IRR, Discounted Cash Flow Analysis, discount factors, Cost and inflation adjustments, Feasibility study.
MODULE 3: 9 classes
Mine Finance and Accounting: Cost of Capital Sources of Finance Cost Accounting Cost-Volume-Profit Analysis, - break-even analysis Depreciation and Amortization.
Mine Taxation: Objectives and Principles, components, Mineral Taxation in India & Abroad.
MODULE 4: 7 classes
Mineral Markets and Trade: Market Structure and Analysis Market Regulatory Organisations International Mineral Study Group Mineral Pricing (4 classes)
National Mineral Policy: Objectives and Elements National Mineral Policy of India Mineral Policies of Some Important Countries Implementation Strategies (3 classes)
CLass Tests: 2
Total Classes 36
Course Objectives
- To familiarize the student regarding the mineral resources and its utilization with profit.
- To learn about the investment and return from the mineral-based industries.
Course Outcomes
CO1: To understand the procedures for estimation of reserves and grades <br />CO2: To introduce mining entrepreneurship, Principles of company law etc. for mine valuation <br />CO3: To enhance the knowledge related to wages and incentives, purchases, stores and inventory control etc.
Essential Reading
- R.T.Deshmukh, Mineral and Mine Economics, Myra Publisher , Nagpur, 1986.
- R.K. Sinha and N.L. Sharma, Mineral Economics, Oxford & IBH Publishers , UK, 1970.
Supplementary Reading
- O.P. Khanna, Industrial Engineering and Management, Dhanpat Rai , Delhi, 1993.
- R.N.P. Arogyaswamy, Courses in Mining Geology, Oxford & IBH Publisher , UK, 1973