A New Cost-Reduction Tool For The Coal Industry

Today, the future of the coal industry is extremely bright because coal can be produced at a cost which makes it competitive with other energy sources. However, the industry has been forewarned that further cost reductions must be made if it expects to remain a serious contender in the growing energy market. Surface as well as underground operations must be improved. The very same elements which affected production a. few years ago still exist today and will continue to be present in the future. Improvement's in production mining equipment, mining methods, and auxiliary equipment have resulted in reduced costs over the past few years. Efforts must be continued toward further reducing costs in areas which have been improved previously, and new areas should be investigated for possible improvements. Therefore, new techniques must be developed which will enable the industry to augment its current efforts in reducing the cost of mining. The logical place to begin evaluating the factors affecting production and cost is in the immediate face area where a substantial part of the total cost of mining is incurred. The coal industry stands to gain much through the development of new techniques for analyzing the numerous variables affecting production and by establishing methods for eliminating or minimizing the adverse effect of those variables which can be controlled. Intuition and trial-and-error methods have been the standard means used to resolve many of the factors which influence production. As a result, many elements are overlooked or ignored because their effect on production is not pronounced and cannot be readily resolved. The need for a method of analyzing such factors was recognized by the Office of Coal Research. Therefore, in April 1962, under OCR sponsorship, a. research project was initiated at Virginia Polytechnic Institute (VPI). The objective of the project was to identify the factors which influence mining costs in the immediate production area, and to develop methods and techniques which will enable the coal operator to minimize production costs. The objective of the research at VPI has been successful, and techniques have been developed for establishing quantitative facts concerning the interrelationships of production activities.