A model of capital expenditure for gold-mine, planning

An essential requirement for the planning of the global capacity of a mine is a knowledge of the functional relationship between the production level and the capital expenditure necessary to establish that level. An underlying mechanism connecting capital expenditure and mine production capacity is proposed in terms of a characteristic profile of the expenditure that both precedes and succeeds production expansion. By the assignment of a representative shape to this profile, the capital expenditure of individual mines can be modelled. The empirical values describing the characteristic profile are computed for a number of gold mines, and an attempt is made to explain variations in the model coefficients from mine to mine in terms of physical parameters such as shaft depth, shaft concentration, and average rate of depth increase during the life of the mine.