Mining Engineering
GATE MN Mineral Economics PYQs
Build your understanding with focused practice from past exam papers.
Questions 11–20 of 23. Imported answers require independent review unless marked reviewed.
Question 28
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A mining company produces iron ore and sells to another company. Royalty to be paid is on the basis of
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The net present values (NPV) of two mining project proposals A and B are as given.
where,
is discount rate.The required rate of return for which both the proposals have equal possibility of acceptance and rejection, is ______. (round off to two decimal places)
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The difference between depreciation and amortization allowances in tax calculation is that
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Production plan of a small quarry having 3 years of life is shown in the figure.
The following information of revenue and cost data are available. Ore: 3.0 million tonne each year; waste: 5.0 million m³ in the 1st year, 5.5 million m³ in the 2nd year, and 5.0 million m³ in the 3rd year. Selling price of ore = Rs. 150/tonne. Ore mining cost = Rs. 500/tonne. Waste mining cost = Rs. 500/m³. Initial capital = Rs. 1000 million. Discount rate = 10%. By neglecting depreciation, salvage value and corporate tax, the NPV of the mining project, in million Rs., is ______. [round off to 2 decimal places]
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The code for the lowest category of mineral resources under United Nations Framework Classification (UNFC) system is
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The selling price of one rock bolt (in Rs.) is given as,
, where
is the number of bolts produced. The manufacturing cost of rock bolts has a fixed component of Rs. 1500, and a variable component of Rs. 100 per bolt. The minimum break-even production, in number of rock bolts, is ________ (round off to 1 decimal place).Log in to check the answer
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As per classification of mineral resources “reserve” means
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Open questionMNMCQ2 marksNeeds review
The net annual cash flows for two small scale mining projects A and B are given below. The correct decision assuming 10% discount rate as per NPV criterion is
Annual Cash flow (in Rs. Crore)
Period in years | Project A | Project B |
|---|---|---|
0 | -200 | -300 |
1 | 0 | 0 |
2 | 200 | 100 |
3 | 140 | 150 |
4 | 0 | 200 |
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You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 33
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Cash flow of a project of duration 4 years is shown. The uniform income ‘R’, in Rs. crores, at the end of 2nd, 3rd and 4th year for an internal rate of return of 10% is ______________.
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Economic feasibility of two methods is examined for meeting a targeted mine production. On a yearly basis, the following cost parameters (Rs in crores) are applicable for these methods.
| Method 1 | Method 2 |
|---|---|---|
Fixed cost | 20 | 5 |
Variable cost | 2X | |
The annual rate of production, ‘X’ in million tonnes for which both the methods will yield the same operating cost is ____________________.
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