Mining Engineering
GATE MN topic:mineral-economics PYQs
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How to practice topic:mineral-economics
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Questions 1–10 of 23. Imported answers require independent review unless marked reviewed.
Question 50
Open questionMNNAT2 marksNeeds review
A shovel costing (
) ₹ 20 crores has a salvage value (
) of ₹ 2 crores with a useful life (
) of 10 years. The annual depreciation is evaluated using declining balance method as given by
The depreciated cost of the shovel, in crores, in its 2
year is ₹ _____________. (rounded off to two decimal place)Log in to check the answer
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An economic block model along with extraction sequence is shown. The numbers given at the centre of the block represent the year of extraction, and that at the corners represent the block economic value in ₹ (lakhs). If the discount rate is 10%, the net present value (NPV), in lakhs, is ₹ __________. (rounded off to two decimal place)
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The relevant information on metal extraction from a copper mine are given below
Selling price of copper (Rs./kg) = 900
Mining cost (Rs./tonne of ore) = 500
Processing cost (Rs./tonne of ore) = 2000
Overall recovery of copper metal (%) = 70
Ignoring all other costs, the breakeven cutof grade of copper, in %, is _____ (rounded off to 2 decimal places)
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The information of a mining project for a life of three years is given below:
| Year 0 | Year 1 | Year 2 | Year 3 |
|---|---|---|---|---|
Revenue (Crore Rupees) | | 200 | 300 | 400 |
Capital cost (Crore Rupees) | 300 | | | |
Operating cost (Crore Rupees) | | 30 | 40 | 35 |
Applicable tax rate = 30 %
Discount rate = 10 %
If straight line depreciation with zero salvage value is applicable, the NPV, in Crore Rupees, is ____ (rounded off to 2 decimal places)
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The function of District Mineral Foundation established by state governments in India, is to
Your answerChoose one option.
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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 58
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In an open pit mine, the mineral inventory, prices, costs and capacities are given.
Mineral inventory
Grade interval | Tonnage (in million tonne) |
|---|---|
0 < Cu% ≤ 0.3 | 0 |
0.3 < Cu% ≤ 0.4 | 5 |
0.4 < Cu% ≤ 0.5 | 5 |
0.5 < Cu% ≤ 0.6 | 5 |
0.6 < Cu% ≤ 0.7 | 5 |
0.7 < Cu% ≤ 0.8 | 5 |
0.8 < Cu% | 0 |
Concentrating cost : INR 3,200/tonne of ore milled
Smelting & refinery cost : INR 10,000/tonne of copper metal
Selling price : INR 6,50,000/tonne of copper metal
Overall recovery : 100%
Maximum production capacity : 5 million tonne/annum
The mine is operating at 5 million tonne in a year. Considering mine capacity being the only constraint, Lane’s algorithm (based on profit maximization) is used for determining mill cut-off grade. The total amount of copper produced in million tonne, in the life of the pit, is _____. (round off up to 2 decimals)
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The real rate of return from a mining project is 14%. If the inflation rate over the entire life of the mine is 5.5 %, then the nominal rate of return in %, is _____. (round off up to 2 decimals)
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The average ore grade of a copper deposit is 0.9%. The recovery of the metal after processing, smelting and refining is 85%. If the selling price of refined copper is Rs 640/kg, the sale value in Rs. from mining one tonne of ore is_____.
[rounded off to 1 decimal place]
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A thermal power station receives coal of calorific value 4000 kcal/kg and uses 700 tonnes of coal every day. Assuming 860 kcal is the heat equivalent of 1.0 kWh, for a thermal efficiency of 40% and electrical efficiency of 85% the power generation per day in MWh is _____.
[rounded off to 1 decimal place]
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A mining company makes an initial investment of Rs 200 crore on a project.
The following data are available:
Production life : 3 years
Year wise production after gestation period (Mtonne) : 1.0, 2.0, and 1.0
Stripping ratio : 1.5 m³/tonne
Selling price of ore : Rs. 200 per tonne
Ore mining cost : Rs. 500 per tonne
Waste mining cost : Rs. 500 per m³
Discount rate : 10%
By ignoring any other cash-flows, if the NPV of the project becomes Rs. 5.367 crore, the gestation period of the project, in years is _____.
[rounded off to the nearest integer]
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