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Mine Economics MCQs Questions & Answers | Mining Engineering

Learn and practice multiple-choice questions (MCQs) with answers related to Mine Economics. These resources are available for mining engineering students who wish to clear GATE exams, technical interviews, competitive examinations, and other entrance exams. The Mine Economics chapter is particularly important for students studying mining engineering. Page-4 section-1

31
For an open pit operation the value of metal is Rs. 210/kg, and recoverable grade is 1.2%. Production cost per tonne of ore inclusive of mining and processing but excluding stripping is Rs. 2000. If the break even stripping ratio is 3.49 m3/te. then the stripping cost is (lte = 1000 kg)
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Answer & Solution
Answer: Option A
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32
A mining company is considering the following project:
Cash Flows (Rs.) for five years
Year 0 1 2 3 4 5
Cash flow (Rs.) -50000 +11300 +12769 14428 +16305 +18421
What will be the NPV for the project if the cost of capital is 10%.
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Answer & Solution
Answer: Option A
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33
A company producing bearing plates for rock bolts has the selling price Rs. 20/unit and the variable cost has Rs. 12/unit, If the total fixed cost is Rs. 5,60,000, then for a target profit of Rs. 4,00,000, the total output units of bearing plates is
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Answer & Solution
Answer: Option C
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34
The ABC copper company recently bought an ore-bearing parcel of land for Rs. 2,000,000. The recoverable reserves in the mine were estimated to be 5,00,000 tons. If 75,000 tons of ore were mined during the first year and 50,000 tons sold, what was the depletion allowance for one year?
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Answer & Solution
Answer: Option C
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35
A company takes a loan of Rs. 25,000 at 8% interest for the extension of a mine. To repay the loan, an additional saving of Rs. 2500 per annum is necessary. The period taken for repayment is
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Answer & Solution
Answer: Option C
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36
The following information is provided for an ore deposit:
Number of waste blocks = 10
Number of ore blocks = 5
Volume of each waste block, m3 = 600
Total cost of waste handling per m3 = Rs. 100
Tonnage of each ore block = 400
Total cost of ore handling per ton = Rs. 150
Sale price of ore per ton = Rs. 500
The net cash flow of mining the deposit in lakhs of rupees, is
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Answer & Solution
Answer: Option C
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37
An investment at 10'% yearly interest rate, compounded quarterly, accumulates to a sum of Rs. 120,000 in 5 years. The present value of the sum in rupees is
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Answer & Solution
Answer: Option A
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38
A mining industry has the following total cost and total revenue functions:
Total cost = TC = 50 + 100q - 6q2 + $$\frac{1}{3}$$ q3
Total revenue = TR = 64q
Where q is the output of mine in tonne/day
The profit will be maximized for what level of production?
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Answer & Solution
Answer: Option B
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39
Four alternative investment opportunities are available in a mining project each offering different revenues for the next two years as shown in the table. If the interest rate is 10% annually, which alternative provides the best investment opportunity based on the net present value?
Case I Case II Case III Case IV
Initial Investment (Rs.) 40,000 1,00,000 80,000 1,20,000
Return in Year 2 30,000 75,000 65,000 80,000
Return in Year 3 30,000 75,000 65,000 80,000
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Answer & Solution
Answer: Option C
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40
The present value of a 4 year annuity of Rs. 10,000 discounted at 10% is
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Answer & Solution
Answer: Option D
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