Operating Cost

The methods for preparing operating cost estimates for a proposed mining venture are outlined. The procedures for estimating the direct and indirect operating cost for proposed mining and ore processing facilities are reviewed. Profits from the by-products are credits to the total operating cost, direct plus indirect, and are subtracted to obtain the total net operating cost. The non-operating costs which are a part of the total expenses are defined but are not considered in this manuscript. A method for developing the operating cost for a typical copper concentrator in the southwest is described in detail.