Surface mining equipment cost analysis with a developed linear break even model

Abstract

As the international surface mining industry proceeds into twenty first century, surface operation throughout the world will increasingly encounter many problems in terms of economic viability and in such situations, true cost analysis techniques taking into account time value of money approach have gained more important than ever before. Linear break even model as a true cost analysis model contributes an important role in surface mining equipment cost analysis. As an illustration, this paper introduces a linear break even model developed for equipment replacement analysis and in so doing, also the adaptation of two linear models which will be used in estimating equipment operating cost over time are examined in detail. Hence the paper is concluded with a given numerical example.