Note: specific production capacity is based on customer site configuration and production capacity.
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This article presents cost models for open pit mines, which takes into account cost uncertainty. In this paper, cost uncertainty is considered as cost of under production, and cost of over production.
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The direct cost if each bid item represents the sum of its material, labor, equipment and subcontractor costs. The sum of bid items direct costs gives the estimated direct cost of the contract. The direct cost f a given item can be estimated using the unit rate estimating, operational estimating. 5.2.1 Unit rate estimating
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The models provide a great deal of important information about equipment, labor and supply requirements in addition to capital and operating costs. They include all labor, material, supply and equipment operation costs incurred at the mine site, including supervision, administration and on-site management.
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