Cost engineering, a basic part of most industry and government work, involves the problems of communicating the cost information developed and the analysis techniques utilized. A discontinued cash flow (dcf) chart-mine cost model has been developed to help solve these problems. Because the model is based on mine and mill equipment costs, manning tables, and standard discounted cash flow analysis, it is applicable to open pit or underground mining projects, large or small, of almost any commodity. In short, the flow chart-mine cost communications model is a straightforward, graphic definition of the elements required to develop the preliminary "capital required" and "operating costs" estimates for a mine, while it depicts the interrelationships of these elements as they combine to form the total DCf cost picture.
Proc. Council of Economics, AIME Ann. Mtg., Chicago, Illinois, 2/25/73- 3/1/73, AIME, PP. 105-112