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Empirical Analysis of Mining Costs Amid Energy Price Volatility for Secondary Deposits in Quarrying

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  • Michał Patyk

    (Department of Mining Engineering and Work Safety, Faculty of Civil Engineering and Resource Management, AGH University of Krakow, Al. Mickiewicza 30, 30-059 Cracow, Poland)

  • Przemysław Bodziony

    (Department of Mining Engineering and Work Safety, Faculty of Civil Engineering and Resource Management, AGH University of Krakow, Al. Mickiewicza 30, 30-059 Cracow, Poland)

Abstract

The outlined methodology for calculating operating costs in open-cast mines and quarries not only facilitates the selection of optimal mining equipment and systems for working lower-grade secondary deposits but also adds significant value in navigating the challenges of fluctuating prices of energy carriers and fuels. Moreover, the study rigorously assesses the impact of mining operations on the performance of deployed mining equipment and the overall viability of the rock mining project. The selection procedure relies on a comprehensive analysis of the technical and economic parameters of selected solutions, providing critical insights to guide decisions regarding the continuation or discontinuation of mining operations. We analyse, based on empirical data, the technical and economic parameters of several variants of mining equipment to be used for the extraction of rocks and stones from secondary deposits in conditions of fluctuation depending on the level of energy prices, in order to find the best configuration in terms of operating costs and potential revenue. In addition to analysing the structure of operating costs, the article presents their correlation with the required profit from the sale of raw materials using the linear correlation method. The results clearly demonstrate the economic viability of mining secondary deposits, taking into account the actual costs incurred by mining companies.

Suggested Citation

  • Michał Patyk & Przemysław Bodziony, 2024. "Empirical Analysis of Mining Costs Amid Energy Price Volatility for Secondary Deposits in Quarrying," Energies, MDPI, vol. 17(3), pages 1-19, February.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:3:p:718-:d:1332201
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    References listed on IDEAS

    as
    1. Sheo Shankar Rai & Vemavarapu M. S. R. Murthy & Nalamasa Sukesh & Akkiraju Sairam Teja & Simit Raval, 2021. "Operational efficiency of equipment system drives environmental and economic performance of surface coal mining—A sustainable development approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 25-44, January.
    2. Stenis, Jan & Hogland, William, 2011. "Optimization of mining by application of the equality principle," Resources Policy, Elsevier, vol. 36(3), pages 285-292, September.
    3. Guo, Hongquan & Nguyen, Hoang & Vu, Diep-Anh & Bui, Xuan-Nam, 2021. "Forecasting mining capital cost for open-pit mining projects based on artificial neural network approach," Resources Policy, Elsevier, vol. 74(C).
    4. Dehghani, Hesam & Ataee-pour, Majid, 2012. "Determination of the effect of operating cost uncertainty on mining project evaluation," Resources Policy, Elsevier, vol. 37(1), pages 109-117.
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