MANAGEMENT

We know that no business runs it self. It has to be managed by some people. For this purpose
a group of people is to be assigned duties and responsibilities according to their knowledge
and skill. Their activities are to be planned, directed and coordinated, so that the
predetermined objectives can be achieved. This great effort of planning, directing and
unifying the activities is called management.
Management is a process of using the resources of men and equipments to produce a product
for the benefit of the nation and country.
Management is the science and art of preparing, organizing and directing the human efforts to
control the forces and utilize the material for the benefit of nation.
Management is the activating element of any enterprise for getting things done through
personals.
According to Kimball and Kimball
Management is the art of applying the economic principles that underlain the control of men
and material in enterprise and under consideration.
According to Stanley vence;
Management is simply a process of decision making and control over action of human beings
for the express purpose of attaining predetermined goal.
According to American management association :
Management is guiding human resources into dynamic organization units which attain their
objectives to the satisfaction of those served and with a high degree of morale and sense of
attainment on the part of those rendering services.
According to T.T Peterson
Management is the ordering and coordinating of functions ordering and co-coordinating of
functions of men fulfilling their functions in order to achieve the given purpose.
Management is a social activity or process entailing (including containing, involving, and
dealing) responsibility of the effective and economical planning and regulation of the
operations of an enterprise.

SCOPE, AIMS AND PURPOSES OF MANAGEMENT

Scope: Management is a vital part of effective engineering and its main objectives are to be
followed to maximize the profit.
According to Urwick and Brech:
No ideology, no ism, no political theory can win great output with less effort from a given
complex of human and material resources only a sound management.
It is the management which makes or mars the fotune of a business enter praise world. It is a
mind of the industry. Management plays an important industrial world. It is a mind of the
industry.

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Aims:
Management is what the managers Aims to do. The aims of the management are:1.
to determine the purpose of business as a whole.
2.
to formulate the policies in order to achieve the goal.
3.
to guide, direct and unify the human efforts.
4.
to assign the duties, fix responsibilities and set standards for accountability.
5.
to control, co-ordinate and motivate the human efforts.
Purposes:
Management is characterized by its actions and actions are guided by theory and principles.
The purpose of management can be:
(a)
To formulate the objectives and policies of the firm (company / profit / mine).
(b)
To peruse all the activities that will bring those objectives and policies fruitful.
OBJECTIVES are what the firm is aiming to achieve.
POLICIES are how this is to be done;

MANAGEMENT
We know that no business runs itself; it has to be managed by people. For this purpose a
group of people are to be assigned DUTIES & RESPONSIBILITIES according to their
knowledge & skill. Their activities are to be planned, organized, directed, coordinated and
controlled so that the predetermined objectives may be achieved.
This great effort of planning, organizing, directing, unifying and controlling the activities is
called Management.
Thus, management comprises the following processes:
Planning
Organization
Administration
Co-Ordination
Guiding
Controlling
With respect to above processes, the management may be defined in various terms as under:
1. Management is the activating element of any enterprise for getting things done
through its personnel.
2. Management is science and art of preparing, organizing and directing human efforts
to control the forces and utilize the material of nature for the benefit of men.
3. Management is a process using the sources of men and equipment to produce a
product for the benefit of nation or country.
4. According to D.S Kimball and Kimball:
Management is the art of applying the economic principles that underlain the control
of men and materials in enterprise under consideration.

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5. According to Stanley Vence

Management is simply the process of decision making and control over action of
human beings for the express purpose of attaining predetermined goal.
6. According to American management association
Management is guiding human resources into dynamic organization units which attain
their objectives to the sati faction of those who served and with a high degree of
morale and sense of attainment on the part of those rendering services.
7. According to T.T. Peterson
Management is the ordering and co coordinating of functions and of men fulfilling
their function in order to achieve a given purpose.
8. Management is a social activity or process entailing responsibility of the effective and
economical planning and regulating of the operate of an enterprise.
In mining, the management may be:
Personnel / labour management
Material management
Financial management
Maintenance management
Environmental / safety management
Marketing management
For effective management, it is desired
To formulate the objectives
To formulate the policies

SCIENTIFIC MANAGEMENT
Scientific management is a form of management that depends on
Principles and laws
Scientific investigation and analysis
Scientific management does not believe a traditional techniques and policies.
The method of work is scientifically throughout.
The workers scientifically selected and trained to perform the task.
The efficiency is determined scientifically.
Scientific management applied to Engineering industry such as mining industry in the world
but now is in practice in all business and in all economic activities.
Main features of scientific management are:
1. To develop a science for each mens work in place of rule of thumb.
2. To select and train the workers scientifically.
3. To allow the workers to choose their work blindly whether or not they are suited to it,
at their own.
4. To develop the happier atmosphere.
5. To not make appointment blindly whether or not they are suited to it.

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Various managerial persons have defined the scientific management as under:

(1)
According to Frederick W. Taylor
Scientific management refers to the efforts made to increase the productivity of labour by
reducing his labour.
(2)
According to Harlow F.Person:
Scientific management is the form of organization and procedure in purposing collective
efforts which rests on the principles of laws derived by process of scientific investigation and
analysis instead of traditions or such polices determined empirically and causally by the
process of trail and error.
(2)
According to peter F. Drucker:
The core of scientific management is the organized study of work the analysis of week into
its elements and the systematic improvement of workers performance of each element
(3)
According to M.C Shukla
Scientific management is the art of knowing exactly what is to be done and the best way of
doing it.
(4)
According to Jones
Scientific management is the body of rules together with their appropriate expression in
physical and demonstrative mechanism.

Aspects of Scientific Managements

The main 03 aspects which deal with the principles of scientific management are:
1. Standardization
2. Motion study
3. Time study
(1)

Standardization

In order to success the scientific management, the company or a firm must standardize the
services the system, equipment and th4e techniques of production. Standardization is the
process establishing standard by which extent, quality, value, performance etc are compared
and measured. It is the management who has to ensure uniformity of action and achievement
by standardization in the firm because the worker can not maintain his standard unless the
management maintains theirs.
Standardization increases the efficiency, diminishes the loss of time, and avoids confusion.
(2)

Motion study

Human motions are made by arts of the body. Theses parts function cost efficiently in doing
particular tasks only when they have attained skill and learned to function with minimum
fatigue (Fatigue weakens the command of in useless in the work). Motion study is the science
of eliminating g wastefulness resulting from using unnecessary, ill directed, and inefficient
motions. Motion study there fore aims to eliminate useless motions and save time and energy.
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Motion study, however, is not an end in itself. It is a means to increase output, greater
efficiency in plant organization, less human fatigue, and lower costs of production.
(3)

Time study

The time study determines

(a)
The proper speed of human operation
(b)
The speed at which machines should be operated
(c)
The ways in which the work shall succeed one an other.
Time study assumes that each job consists of so many elements or groups of elements and
that a worker uses elements of movements in performing that job. There fore, time studies
should be made by timing each element of job. For element timing, a stop watch is used, with
the movement, the watch is started, and the watch is read when each element of movement is
completed, time noted down on a sheet of paper and the hand of the watch is snapped back to
zero. A sufficient series of movements of each elementary operation must be taken to make
possible a sound opinion as to what the best time is:
When the element s of a task are studied and timed separately, the time recorded in minutes
for elements are called actual . If the rating efficiency of the operated is known then the
standard time or standards or element standards can be computed as follows:
Element standards = (Actual * Rating Factor) + Allowances.
Where,
Actual =

the observed times (minutes)

Rating Factor =

the observed efficiency of the operation in

performing
the task, expressed in a percentage of the
efficiency of the average or representative
operator, which indicate how good an
operator is in terms of the average run of
his fellow work man.
For example, a 70 % efficiency rating
would mean that an average or
representative operator would require 70 %
time to complete the task.

Allowances =

Allowances are added and those for

fatigue, personal requirement of workers,
variations in the quality of materials, and
fact that all men are not equal to the best
man.

Principles (Elements) of Scientific Management

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Developed by: 1. FREDERICK W. Taylor,

2. Henri Fayol

F.W. Taylor (1856-1915): is regarded as the father of scientific management. The idea
he brought to the scientific management include the following:
1- Planning of work in advance
2- Selection of best men for identified job
3- Determine the standard time required for the accomplishment of job
4- Standardizing of tools and equipment and right training for the use of such tools
and equipment.
5- Dividing the work.
6- The scientific approach to all the problems

Based upon the above ideas, F.W. Taylor developed the following principles:
1.
Task idea: to organize the working force on task basis for striking results in the
field. It could be made possible only with the help of scientific management.

Mental Revolution: to revolutionize the mind of both workers and management

2.
in such a way their workers start feeling that the enterprise is of their own and the success to
the enterprise would mean a success to all of them. By this way, the workers must put their
heart and soul in the work assigned to them.
3.
Standardization: The success of scientific management largely depends on
standardization of system, tools and techniques of production. It helps in reducing time,
labour and cost of production.
4.
Selection and Training of Labour: The labour is selected according to the
nature of the job and there after they are trained with in the field/industry in order to attain the
objective of enterprise.

Judicious Division of work: work should be assigned according to training,

5.
skill, aptitude and allotment of tools.
Proper Use of Plants and Equipment: Suitable, involved and scientific use of
6.
plants and machinery, tools, equipment help in standard production.
7.
Proper planning: Sincer and effective planning is the essence of scientific
management. Every effort, activity and production steps are planned to achieve the desired
results.

Experiments: It is necessary to conduct experiments through surveys and

8.
researches so that new principles and generalizations may be introduced from time to time.
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Healthy Industrial Atmosphere: Industries / fields are required to maintain

9.
necessary cleanness, make a provision for safety and security of the workers while on job.
Adequate space, fresh air, light, welfare schemes, playgrounds, canteen drinking water,
toilets, bathrooms, etc. are necessary requirements for healthy working conditions in field /
industry.
10.
Labour Organization: aims to increase the facilities and efficiency of the
workers.

Incentives: To reward those who are putting their all for the good of their
11.
enterprise.
12.
Cost Accounting: It enables the management to plan, to organize and to direct the
production and marketing of products in order to:
-

reduce the production cost

increase the profitability

Forecasting is done on the basis of cost accounting

F.W. Taylor worked in the Bethlehem steel company. He supervised the shoveling of iron
or and coal treatment operations. The principles formulated by Taylor became famous when
the steel company with the application of these principles achieved a 50 % reduction in cost.
In the response, the average wage of employees was increased by 60%.
The labour with the help of Taylors scientific management derives the following main
advantages:
123-

Easier work
Higher pay
Job satisfaction

Therefore, Taylers principles ware bitterly criticized on the ground that his intention was to
give all gains to the labour community. As the fruit from scientific approach should be shared
by both workers and management, hence Henry Fayol (1841-1925) developed the scientific
approach which are a managerial evolution for every group of activities.

Principles:
1.
Division of work : division of work according to:
nature of work
department
job, etc
is important fir the increase of unit production.

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2. Authority and Responsibility:

- Delegation of power
- Utilization of authority
- Fixation of responsibility
- Performance of duty
Are the key to the success in any management process. One should be authorized to get the
work done and he again will be responsible/ answerable to a proper authority.

Discipline: Discipline imposed by the administration should be strikly abided.

3.
Indiscipline always results
- Lower productivity
- Lesser turnover
- Lesser margin of profit
4.
Unity of management or unity of command: for better planning and
successful operations, all the objectives and activities of the same nature should be kept under
one command and under the same management. Multiplicity of command is for indiscipline
and hence it must come form one.

sub-ordination of individual interest

5.
There should be nothing like every person is thinking fort his own interest but his aim (and
the all others) must be to work sincerely for the firm.
6.

Suitable and adequate remuneration to personals

The persons (workers) should be awarded by some bonuses, and they should be aspirated or
encouraged according to their efficiency.

7.

Centralization

If any company, firm, or any project has got a no: of department there must be a central head
office to control their problems to receive suggestions, and manage the company or project in
a good manner
.

8.

Chain of communication

There should be good link or content between all the working department or offices of an
company so that if any kind of orders information is to be given to the workers staff there
should be no missing.

9.

Order

It means that, proper thing person art proper place job in proper time, given. It does not
include only persons but it includes (a) material management, and (b) men management.

10.

Equity :

Management should treat the workers as one (equal) for example, if any
bourses, facilities etc is to be given it should be distributed among all by justice.

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11.

Stability of a personal

Stability of a personal means a person (worker) must be sure that he will not be disturbed or
fired without some reason.

12.

Initiative

Initiative means that who is taking action as first. Example: - if workers are awarded some
bonuses then everyone will try as its own to work more efficiently for the firm, which
increases the productivity.

13.

Team Spirit

There should be unity between the workers (organization) means they should work as a team.

The following steps are adopted:

(1)
Note the several series of observations for each elementary operations [ Actual]
(2)
Discard the highest and lowest times
(3)
Tame the mean of the remaining times in each elements [ averaged actual]
(4)
Mean obtained is multiplied by the [rating factor] to determine the [adjusted time]
in which the operator should perform the work under normal conditions.
(5)
Add the allowances within the adjusted time and the result is the [standard time]
which the task is completed. This computed standard time is to be a basis for the rate of pay
and bone:

EX. 1: If the average time of an operator for doing a task is 40 min, and he is found 70 %
efficient, the time in which he should do the task is:
40 * 0.70 = 28 min
The 28 minutes represent the adjusted time. If the allowances taken by the operator is about 4
% of the adjusted time then the additional time allowed will be .
28 * 0.04 = 1.12 min
Now the standard time will be
28 * 1.12 = 29.12 minutes in which operator is required to complete the task efficiently.

Ex: 2: Assume that time studies are taken as follows for three separate elements of a job with
a rating factor of 110 %
Element 1: 30 22 24 25 37 29 30 38
Element 2: 31 28 27 24 25 31 37 29
Element 3: 28 27 21 30 40 30 39 32
If 2 %, 4 % are the personal, preparation and fatigue allowances respectively, compute the
standard time.

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Computation
(1)
under line and discard the highest and lowest times within the series of observed
times:
Element 1: 30 22 24 25 37 29 30 38
Element 2: 31 28 27 24 25 31 37 29
Element 3: 28 27 21 30 40 30 39 32
(2)
Take the mean of the remaining times in each element and obtain actual time to be
required for a normal operation to be completed.
Thus,
Element 1: 27.6 minutes
Element 2: 27.8 minutes
Element 3: 29.4 minutes
Total time = 84.4, say 85 minute
(3)
Using rating factor (i.e. 110 % = 1.10), the adjusted time is obtained:
85 * 1.10 =93.50 minutes
(4) Now, the allowances to be added are recorded and calculated as under:

Name of allowance
Personal
Preparation
Fatigue

Percent of adjusted
time
2%
4%
4%

Total time cycle

93.5 min
93.5 min
93.5 min
Total
(5) Add allowed time to adjusted time to obtain the standard time
Standard time = 93.5 + 93.5 = 102.85 minutes

Adjusted time
allowed
1.87
3.74
3.74
9.35 min

Mine organization
Organization is a body of people working together for a purpose of profit.
It is an adjustment or inter-relation of functions and staff for the purpose of producing
minerals.
Organization describes the different functions to be performed in a sequential order by
different set of people.
Each person has its own function but they adjust as a whole. The inter-relation of functions
and staff is shown by a chart called structural chart or organization chart. This chart is a
tool of organization which:
: Provides a clear picture of the general grouping of activities and formal relation ship in
the enterprise.
: shows the major characteristics of a companys structure
: aids employee training
: guides employee development
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: helps in formulating phase plans and ideal plans.

For example:
for the organization, mine management receives the financial resources from the owne or
shareholders and government (Federal or provincial). In a public mining company, the
interface between the employee and owners of company is the board of directors. The boards
authority will be transmitted to the full time employees through the most senior employee,
i.e., the managing director or chief executive officer.
The management structure of such organization is shown in the following chart:

Owner / Share Holders

Directors

Managing Director
Or
C. E. O

Senior Executive Officer

Or
General Manager

Middle Management
Or
Departmental Managers

Fig: 01: The structure of modern management

The responsibilities of this management structure are:

The senior executive officer (S.E.O):
- Also referred to as functional manager, general or mine manager.
- Responsible for the detailed conduct of the undertaking in order to meet the objectives laid
down with in the policy frame work.
The departmental manager:
- Responsible for running departments of divisions
assigned to him.

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-Is responsible to the SEO on a functional basis.

Some of the functional departments or activities in a mine are:

: Exploration and development
(Looking for and defining an ore body)
: Production
(Mining and beneficiation of the ore)
: Marketing and Sales
(Selling the product, purchasing the material)
: Financial Accounting and Control
(Getting the numerical figure work done to stakeholders, such as: govt: share holders,
employees, etc with appropriate fiscal information that is required).
: Personnel
(Assisting management to recruit, train, motivate, remunerate, and keep good people).
: External Relations
(Representating the company to the outside world, such as, govt, industry associations,
environmentalists, local communities, etc).
These functional activities are general divisions for which individual manager is responsible
to meet the policy requirements for the profit.

Mine management, organization, and administration

Mine management:
The principles of scientific management are universal and apply to all industries.
Mining industry uses also same management system but due to different environment and
situation in mines or mine fields, there is some change in system. Comparing mining industry
to the other industries, the mining industry has some unique problems but on the whole the
activity is similar to material management in other industries. The situation in mines is more
alarming than in other industries. The variety of variable factors does not make mining
operations safe and productive with one system.
Real progress in mining is not only a reduction in cost but it must also be measured in terms
of a decrease in accident rate. There fore, in addition to general management process, a
mining industry has to include:
Designing, developing and maintaining programs to wards the objectives of productivity and
safety.
Thus, mine management is the management of a process or operation using the resources of
men and equipment to produce a mineral economically and safety.

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Mine management is such a system by means of which:

: The mine is planned and controlled properly
: Production is increased
: Safety is increased
: Cost is decreased
: Profit is increased
As a whole, the mining profession contributes to be as a hard work and needs safety of high
level. As stated above, this profession differs from other industries according to its different
environmental situations and conditions, such as:

Different situation

Unfavorable soil /
rock conditions

Darkness

Fire

Mining operations
and their limitations
(e.g size & wt. of
machinery, whether
SM, reclamation &
rehabilition, etc)

Explosives

Different environment
Mine environment

Gases

Foul air

Contaminated
water

Smoke

Dust

Noise

Radiation

Social environment

Vibrations

Noise

Dust

Waste dispoal

Air / water
pollution

Destruction
of public
roads

Due to the above different environment, conditions and hardship in mining, there is lack of
interest in job, but it is the only effective management that can make it as attractive
profession with the use of scientific approach.

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Mine organization may be established as:

1.
2.
3.
4.

functional organization
mix organization
matrix organization
staff and line organization

1.
Functional organization: this organization structure is based primarily on functions.
Functions are typically divided into the major categories of production, finance and
marketing. This type of organization works with a specialist heading function and mostly is
used for a small mine or one mine. Following figure is an organization chart showing
structure based on functional organization.

General Manager

Production manager

Finance manager

Marketing manager

2.
Mix organization: mix organization is the functional grouping under which specific
functions are placed in the hands of a man specially qualified for his particular factions. The
general manager in charge of operation at the mine should establish with his organization
covering the major subdivisions for which he is responsible. In this way, mine operations
come under a mine executive officer or mine superintendent, mill operations under mill
superintendent, and some thing operation, if it exists, under a smaller operation. Required
other facilities and activities, such as transportation, power, maintenance, supplies, etc, come
under other executives.
The following chart provides a clear picture of the general grouping of activities
and the formal relationship in a mine:

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General Mine Manager

Mine superintendent

-Underground:
: MN Engineer
: MN Geologist
: MN Surveyor
: MN Planning
OR
-Open Pit:
: Pit Engineer
: Pit geologist
: Pit Planning

Mineral processing
superintendent

: MN Engineer, or
: MT Engineer, or
: CH Engineer,

Plant superintendent

General
administration
& accounting

: Shop
: Electrician
: Construction
: Maintenance
: Purchasing
: Stores

- Administration
concerned with
: Personal
security
: Town site
: Safety &
environment
: Public relation
: Training
: Accounting
: Financing
: Costing
Control

- Mill engineer
: Mill Lab
: Assay
: Shipping

This type of structure is a means of dividing the large functional organization into smaller
flexible management units. In this system, mine management divides the mine into
geographical areas for supervisions.
3. Matrix organization: to increase the effectiveness of mixed organization it is divided into
portions, each portions organization is called matrix organization or project organization.
A matrix organization is a traditional organization structure that is modified primarily for the
purpose of completing some type of special project. This organization is one in which
individuals form various functional departments are assigned to a project manager for
accomplishing some specific task. For this reason, matrix organizations are also called
organization.

Few examples of various project organizations are shown in the following organization
structures:
01-

organization structure based primarily on functions:

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Mine Manager

Mine superintendent

Marketing manager

Accountant

02- Organization structure based primary on production:

General Manager

Design engineer

Research
department

Development
& operations

Maintenance
department

Planning

03 organization structure based primarily on product:

Product Manager

Quality / Quantity
manager

Processing manager

04. Organization structure based primarily on customers:

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Planning

Safety and
environmen
control

Sales manager

Sales
representative for
pomestic sale

Sales representatives for external

sales

Combined organization chart for a mine:

Managing Director or C E O

Production manager

Marketing manager

Finance
director

Administrati

Office
superintendent

Quality
quantity
control

Production
superintendent

Marketing
research
manager

superintendent

Mining / processing
engineer

Designer
operation
signer

Research
development

Sales
manager

Inland sales
manager

Maintenance
superintendent

Accountant

Outland sales
manager

Planning

Safety &
environment
control

Supervisory Management of Mines

A person who is responsible for the supervision of all activities of mine operations
(underground or surface), is referred as supervisory management also the other titles are:
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Bursar

Mine superintendent, chief supervisor, deputy mine manager, or mine manager.

As a general, the following are the main functions of supervisory management for an amine:
(1)
To supervise and control the work of the operating staff.
(2)
To distribute the work among the workers
(3)
To see the plants and tools are in working conditions and energy worker is in
possession of required plants, tools and equipment.
(4)
To see that materials required are given to workers according to the production
schedule. Also to ensure that there is no wastage or spoilage, etc.
(5)
To explain to subordinates the working procedure.
(6)
To see that the work is going on according to schedule and policies, plans and
programs are being followed.
(7)
To provide adequate training to working force.
(8)
To make security arrangements for:
(a) Men (b) material (c) plant, equipment, etc
(9) To advise the higher management for an improvement of working conditions.
(10) To develop harmonious relations among the workers.
(11) To develop the team spirit.
(12) To discuss past operating performances, and future production targets with concerned
shift supervisors.
(13) To report to higher management either verbally or by written report on the activities of
the mine.
Mine superintendent is technical and key position of the mine management system. They
acquire this position by demonstrating his mining knowledge and leadership abilities to
higher management.
Underground operations are very complex, due to conditions and situations, therefore he must
have in depth knowledge for his work and field, and must be proper skilled in management.
Surface mine management is not as laborous as underground mining. It is dominated by the
large unit operations of stripping, loading and hauling, and reclamation. It applies few
workers, therefore the supervision is simple and easy control.
The other characteristics of the mine superintendent are:
: Effective communication
: Decisiveness
: Honesty
: Comprehensive listening capabilities

MINE ENGINEER AS A PROJECT MANAGER

Mining engineers are universal elements in mining industry. Their career in professional
management is based on the following facts:
Job description: Mining engineers plan, design, organizes and supervise the development of
mines, mine facilities systems and equipment, and prepare and supervise the extraction of
metallic or non-metallic minerals and ores from underground or surface mines.

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Job location: Mining engineers are employed by mining companies, consulting engineering
companies, government, manufactures and in educational and research institutions.
Due to work experience and skills, mining engineers may be allowed
to practice in associated areas of science, engineering, marketing and management. They
work closely wi5th geologists, geotechnical engineers, metallurgical engineers and other
engineers in the fields of specialist.

Job Titles:
Mine manager
Project engineer
Mine design engineer
Mine development engineer
Mine layout engineer
Mine production engineer
Mine safety engineer
Mine ventilation engineer
Mineral engineer
Mine inspector
Quarry manager

Employment requirement
- A bachelors degree in mining engineering is required
- A masters degree or doctorate in related engineering discipline may be required.
- Registration with professional associations is required to practice as professional engineer
(P.eng).
For mining engineers, the professional associations are:
PEC (Pakistan engineering council); IME (institute of mining engineers Pakistan); SME of
AIME (society of mining engineers of American institute of mining, metallurgy and
mechanical engineers).
-Passing a professional practice examination, such as, first class and second class certificates
of competency examination is required for the mine engineer who intends to manage a coal
mine producing more than 2500 tons and not less than 600 tons of coal per month
respectively.
-Mine manger is eligible to get a first aid certificate of the society or body approved by the
appropriate govt. (such as st: John ambulance association).
-For a quarry manager, sometimes, for drilling and blasting profession, a practice
examination is required.

Main duties
Mining engineers have to perform some or all of the following duties:

To conduct preliminary surveys and studies of ore, mineral or coal deposits to assess
the economic and environmental feasibility of potential mining operations.

To determine the appropriate means of safely and efficiently mining deposits.

To determine and advise on appropriate drilling and blasting methods for min8ing,
construction, or demolition.

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To design shafts, ventilation systems, mine services, haulage systems and supporting
structures.

To design, develop and implement computer applications such as for mine design,
mine modeling, mapping or for monitoring mine conditions. To lan and design or select
mining equipment and machinery and mineral treatment machinery and equipment in
collaboration with other engineering specialists.

To plan, organize and supervise the development of mines and maintenance of mines.

To prepare operations and project estimates schedules and reports.

To implement and coordinate mine safety programs.

To supervise and coordinate the work of technicians, survey personnel, and other
engineers.

Managerial tricks: The mining engineer must use the following steps to be effective
manager of a project:

1.

Recognize the task:

At the beginning of each work period (day) make a complete list of the tasks he has to deal
with.

2.

Classify each task:

This classification is made by considering various options, such as:

(a)
What happens if I do nothing about this matter? If the answer is: nothing would
happen, ignore the task and proceed with other tasks where the answer is something would
go wrong.
(b)
Determine the date (approximate) when the task must be completed.
(c)

3.

Establish the priorities:

Determine the importance of each task and preference must be given according to the priority
orders, such as: highly urgent tasks, very important tasks, and so on.

4.

Concentration

Start with the short tasks and when you are left with large tasks, you have to concentrate on
such tasks and deal with then priority wise or, alternate hard work with height jobs and with
relaxation, so you will not tire easily.
Management is what the managers do. Thus, it is a practical
activity, social activity and political activity. It is concerned with the effective achievement of
goals by the efficient organization of resources.

1. Effective management by good communication

It is the process of sharing information, knowledge and ideas with other individuals.
Communication is considered as the life blood of every organization because it keeps the life
dynamic.
Interpersonal communication is divided into two types:
1. Verbal communication: communication that uses either spoken or written words to share
information with others.
2. Nonverbal communication: is the sharing of information with out using words. Factors
commonly used facial expressions, vocal tone (voice), and gestures (a movement of the
head, hand, etc to express an idea, feeling, etc)

- 20 -

Achieving communication effectiveness

For effective communication a manager can follow the following 10 communication a kills
1.
Stop talking
[You can not listen if you are talking]
2.
Put the talker at ease.
[Help the talker feel free to talk]
3.
Show the talker that you want to listen
[Listen to understand rather than to appose]
4.
Remove distractions (distraction = to draw off the mind / attention)
[Pay attention to talker]
5.
Empathize with talker (empathize = experiencing the others feelings)
[Try to put yourself in talkers place so that you can see two / her point of view]
6.
Be patient
[Allow plenty of times do not interrupt the talker. dont start for the door or walk away]
7.
Hold your temper
[An angry person gets the wrong meaning from words]
8.
Go easy on argument and criticism
[Dont argue: even if you loose, you win. This puts the talker on the defensive]
9.
Ask questions
[This encourages the talker and shows you are listening. It helps to develop points further]
10.
Stop talking
st
[This is the 1 and last commandment, because all other commandments depend on it.
You just can not do a good listening job while you are talking.
Nature gave us two ears but only one tongue, hence we should listen more than we talk.]

Aspects of good communication

Good communication techniques depend on the following aspects:
(a)
Good leadership
(b)
Worker motivation
(a)
Effective leadership
Leadership is the ability to direct the activities of others.
Key to leadership is coordination.
Leadership is the ability of a manager to induce the subordinates to work with confidence and
zeal.

An effective leadership is responsible for the following major tasks under

the coordinating function:

PLANNING the work activities

(determining the objectives of organization and deciding how these objectives are to be
achieved)

ORGANIZATION the men, supplies, and equipment

- 21 -

(implementation of plans, specifying the work to be selecting people to carryout this work)

DIRECTING the worker activities

(motivating the workers to perform their assigned task well and written
time)

CONTROLLING the performance

(establish the measures and targets for performance and seeking to control deviations from
policies)

DELEGATINS the authority

(to delegate the scope and position of responsibilities)

Qualities of a leader: For effective management, a leader must have:

1.
2.
3.
4.
5.
6.
7.

Courage
Will power
Judgment
Flexibility
Knowledge
Integrity
Initiative

(b)
Worker Motivation: is the effort a person is willing to contribute towards achieving a
goal.
In mining, goals are:
: a safe, effective management team
: a safe, efficient workforce
These goals can be achieved by:
: the supervisory skills of motivating (satisfactory needs)
: encouraging cooperation
When a mining operation is thoroughly analyzed for itsperfomance, the motivation of the
employees is always examined.
The factors, considered as work satisfiers which motivate the workers for a job are:
(1)
Good behavior
(2)
Money, either good salary or bonuses
(3)
Job position and Job security
(4)
Competition with other workers (promotion channel)
(5)
Good and safe working conditions
(6)
Right job to right person.

2. Effective management by improving mine productivity

Productivity is a measure of the efficiency of production. Productivity is an important consideration in
designing, evaluating and improving modern production systems. Productivity shows the relationship
between the total amount of material produced (out put) and the resources (men or machinery)
needed to produce the material (input)
i.e.
Productivity = Output / Input
The higher the value of the ratio of out puts to inputs, the higher the productivity of the operation.
Main causes of productivity decline in mines are:
Outdated mining system
Poor equipment

- 22 -

Ineffective training program for un-experienced persons

Poor maintenance program
Poor implementation of health and safety regulations.
Environmental restrictions imposed by appropriate agencies.

However, mine productivity can bee by improving the followings:

Improving the effectiveness of the organize work force through training.
Improving the production process through automation.
Improving operational design to produce the product safety and easily.
Improving the production facility by introducing more modern technology.
Improving the quality of workers.
Once the causes of productivity decline in mines are identified, scientific approaches can be initiated
to turn productivity upward.

The following performances are to be evaluated by scientific management:

: System performance
: Operator performance
: Machine performance
: Maintenance performance
: Safety performance

These performance programs should be evaluated by the following production

review steps:
(i)
(ii)
(iii)

Collecting operating data on the mining system

Analyzing the operating and maintenance data
Designing and implementing corrective measures.

Collection of operating data on the mining system

The management takes the time to collect necessary data for answering the following
questions:

What are the problems in particular system and where are they located (i.e. the face,
intake, equipment, supplies)?

How much production is lost from these problems in terms of time, tonnage and
money?

What are the best solutions to each of particular production problems?

Is lack of maintenance and production problem on ay given section, machine or

system?

How much in terms of time, labour and material will it cost the management to
correct each problem?

Is the cost of correcting each problem worth the improvement of time, tonnage, or
money gained for each?

There are several ways for collecting the data:

: Time study and motion study
: Production foremen reports
- 23 -

: Maintenance foremen reports

: Miners or employees interviews
: Government agencies (such as inspectorate of mines)
: Equipment manufactures service representatives.

Analysing the operating and maintenance data

Once a mine manager has collected sufficient information from his data base, the analysis
phase can bean. The purpose of the data analysis is to identify problems and then rank these
problems in their order of importance (i.e. impact on mine production, safety and
maintenance).
Several tools are available to the mine management for ranking his data. For example;
A)
subjective Analysis procedure,
Or
B)
statistical Analysis Techniques

A)

subjective analysis procedure:

In this type of procedure, the mine manager becomes familiar with the four degrees of
problems which are:

1.

Apparent problem (X) :

A problem in this category is well defined by the data sources as a direct cause of production
loss.

2. Indicated Problem (I):

A problem in this category is only known to be problem, not necessarily the problem
contributing to production loss.

Ranking points:
To reflect or to rate the individual problem and degree of certainties, point value can be
assigned,
e.g.:
X = 5 Points
I = 2 Points
H = 1 Point
- = 0 Point
Thus, for the above table, point totals are added up for each problem. The highest total
indicates the worst problem category that should be analyzed first. Here, in this example, the
system performance of transportation is to be improved first and then according to the
importance of the problem is of operators performance that should be paid attention.

Statistical analysis Technique

Purpose: (i) Together numerical information (for resources, tonnage, costs)
- 24 -

(ii) To analyses and interprete this information

This information is prepared on regular basis (.g. yearly) and used by mine manager
for planning a project for future.

Now days this information is processed on the computer system as computer

analysis or project network analysis. It is a managerial information technique and called
MIS-management information system.

Project management requires its planning and control in which:

Project is the collection of activities or tasks. A project is considered to be completed

when all the activities have been finished. A large project may consist of hundred of tasks,
and it may extend a period of months or years.
PROJECT CONTROL ENVOLVES generating a warning signal if there is a large
deviation between what has been planned and its actual progress.
If deviations occur which are unacceptable to the manager, correction action must be taken.
All the deviations are represented graphically by network called Network Model of the
Project which is a set of activities and events providing graphical representative of a
project.
Network model shows the precedence relationship i.e. which task is started and after its
completion which one is to be started. However, the 2nd one has to wait until the 1st is
completed.
There are 02 techniques which allow a manager to easily distinguish the events of an
operation and the probability of occurrence of the problems in the mining system:
program evaluation and review technique (PERT), and
critical path method (CPM)
PERT: system is concerned with estimating the probability of completing a job or project
on time. It is used for project planning as a trouble shooting. PERT attempts to measure the
variability in the project duration. It allows risks and uncertainty to be incorporated into the
network evaluation.
(a)
(b)

CPM: analysis the cyclic production problem and shows the sequence of activities.

The features of PERT and CPM network are:

ACTIVITIES are tasks or efforts that require source and time for complete.
Activities are usually referred to by their start and finish events. In the network model,
individual activities are shown as arrows and referred by a letter such as A or B, etc. hence,
arrow heads indicates the direction or linked of progress.

Events are called nodes which represent the completion of one or more activities.
These are identified in network by their numbers. Always the activities are linked with
numbered events or nodes.

Critical Analysis: activity with slightly delay. Those activities which involve
physical work and require resources, they may take tie to complete.

Dummy Activity the tasks which have zero duration

- 25 -


Waiting Activity those tasks which do not require resources and wait until the 1st
activity is completed.

Path is a sequence of adjacent activity that forms a continuous link between two
events.

Critical Path is a sequence of critical activity.

PERT CPM Model Diagram

This network diagram represents the projects activity composition, activity durations, and
precedence relationship between activities and events. The PERT / CPM technique is based
on the following steps:
1.
List the activities
2.
Estimate activity duration
3.
Assess precedence relationships
4.
Diagram the activities
5.
Compute
6.
Include time table and resource restrictions
7.
Implement the project
8.
Update the plan
For example, seven tasks in the early stages of blasting project are specified in table 1. Their
precedence relationship can be represented by a network as shown in diagram:

Table: Details for a simple blasting project

Activity
(a) Approve plans
(b) Ste preparation
(c) For drilling
tools
(d) Drilling holes
(e) Wait for
explosives
(f) Charge holes
(g) Blasting

Preceded by
A
B

Followed by
A
B, E
C

Duration (days)
30
5
2

C
A

D
E

3
2

E
D, F

F
G

2
1

It is shown that task B and E must for A to finish before they can start. Similarly, task C must
wait for B to finish before it can start, both D & F must be completed before G can start.
Thus, diagrammatically:
Network diagram for the blasting project according table 1:

- 26 -

Activity
Event or
node

3
B

30

E
Duration
or Path

6
G
F

5
Direction of
Progress

For example, seven tasks in the early stages mine ventilation project are specified in table 2.

Task B & E must wait for A to finish before they can start.

Task C must wait for B to finish before it can start

Both D & F must complete before G can start.

Table: 2
Activity
(a) approve plans
(b) order for fans
and other
essentials
(c) construction at
the entries
(d) construction
for in take and
return
(e) installation of
fans and ducts
(f) Fixation of
regulators and
curtains
(G) monitoring for
air leakage

Preceded by
A

Followed by
A
B, E

Duration
20
5

D, F

20

- 27 -

C
3

4
2

A
1

D
2

2
20

20
G

1
E

F
5

Implementing Corrective Measures

Implementing corrective measures (solutions) depends on the following parameters:
(a) Equipment: Either maintaining and repairing used equipment or purchasing new, improved, or
proper equipment.
(b)Training and Retraing: This includes job skills and supervisory skills, depending on the needs of
management. Poor supervisors and untrained workers both tend to hold down production.
(c) Worker standardization: worker motivation and behavior should be studies to achieve the best
results.
(d) Mine system Alignments: it is concerned with the proper adjustment of mining activities. Mine
systems may include alignment of haulages, regulating the mine ventilation, supporting the weakened rock
roof, and adjusting the production rate, etc.
4. EMM by Safety and Training
Safety and training are very important responsibilities that mine management must be constantly
aware of. The man advantage of safety and training is to prevent the workers from the accidents.
Safety: If the worker and working environment are safe, and without any accidents there will be no
any production problem. Safety is a tool for the prevention of accidents.
Accidents damage worker morale (confidence) and Operational productivity.
Mine management should know the type of accidents that cause the personal injury or cause the
productivity decline. Accidents on happen frequently around mine operations mostly caused by:

: Hazardous conditions
: Dangerous acts, and sometime
: Acts of nature
Hazardous conditions: the accidents happening due to hazardous conditions are on the part
of management. Therefore, mine management should concentrate on removing or mining any

- 28 -

operational hazards contributing to possible accidents. There are 05major areas in the mining
describing hazardous conditions:
1. Ventilation: Due to inadequate underground ventilation in the working areas, dusli, mists and gases
cut off the fresh air, reduce visibility, damage equipment, and foul the air sufficiently to hamper miners
breathing.
1.
Guarding machinery and moving parts: The general of belt drives, crusher stations, walk ways,
etc should be mandated and managed at all times.
2.
Defective and worn out equipment: Mostly in mining, the defective equipment include worn
(due to neglect and limited capital), cracked, and rusted, bent, or broken off tools and machinery parts.
3.
Housing keeping conditions: The minerals or loose rock, supplies, or unwanted material left to
remain on the haulage roads, shop areas, production sections, and travel ways. This poor housekeeping
always compounds the problem of unsafe conditions.
4.
Irregular lighting: in under ground mines, darkness or poor lighting provide hazardous
conditions.

In case of any hazardous conditions, the following steps should be taken by a workman:
(i)
Guard or post a danger sign to worn others of the unsafe conditions, and to keep then away from it.
(ii) Correct or remove the conditions such as replacing a machine guard, picking up stumbling hazards, or
raking down loose roof.
(iv)
Notify the proper authorities of the conditions if he can not take the necessary action to correct
it.

Dangerous Acts: these acts are on the parts of workers, such as:
1. By passing safety devices: ignoring the warning signals and crossing the safety devices such as
electrical wires or trips, beltlines, etc.
2. Using improper equipment: using defective tools or tools not mean for the job.
3. Improper action: any unauthorized acts by workers or superiors, such operating equipment without
authority or proper training, ignoring safety measures and using unsafe means, etc.
To promote a correct safety attitude the workers and supervisors should be asked to:
(1) Report unsafe acts frequently
(2) Check unsafe acts or conditions
(3) Take safety meeting weekly, properly and seriously
(4) Investigate fully and analyses the cause of accidents.
Mine management should concentrate their efforts in minimizing both hazardous conditions and danger
acts in the working places of an underground mine. Most accidents in underground mining occur with in
10m of the face area in which both miners and machinery are concentrated. In such area of mining, the
following conditions should be checked.

Roof and Ribs: watch for water seepage, cracks cleats, or joints and loose bolts. These indicate past
geologic disturbance and possible ground stress pressure.

Floor (or bottom): watch for cracking, excessive water, or strata change indicating ground stress.
Keep free of waste and fallen material.

Machines and equipment: watch for leaks, lubricants, fuels, and adjustments.

Entries and crosscuts: keep free of scrap, and waste and loose rock. Keep widths with specified
limits.

- 29 -

Training: Training like wise safety is necessary for prevention of accidents and doing the job industry,
the training includes:
(i)
Safety training
(ii)
Job training
(iii)

(i)

Safety training

Safety training is very important for new workers and also for the workers changing their nature of job.
In mining operations, the safety training fall on the shoulders of effective mine superintendents. The
mine management provides the training, the workers provide the aptitude.
Several accidents are caused by poor training, therefore, a training officer or training instructor should
explain well, ask the questions and answers and demonstrate the task to the worker.

(a) Do not assume the work employee knows the safe way to carryout a job task.
(b)
Do not assume the workers remember the applicable rules of safety for the job.
(c)
Explain the task to the worker.
(d)
Ask the questions and answer them patiently and clearly.
(e)
Demonstrate the task to the worker.
(f)
Have the workers to demonstrate what they have learned.
A trained worker must know:
: Type of accident
(Fall, contracts of electricity or heat or cold, being struck, radiation, etc)
: Type of energy source:
(Electricity, explosives, explosion of dust or gas, machinery, fires, falls, and inundation)
: Unsafe conditions:
(Poor ventilation, gassy, dusty, poor machinery maintenance, using improper safety devices and tools)
: Nature of injury:
(Whether fractures, cuts, burns, abrasions, breathe stopping due to suffocation)
: The results of safety activities will be:
: Happier atmosphere
: Improved employee relations
: Higher production

(ii)

Job training

Job training is an important task and one for which an instructor should be prepared. The instruction
manuals and teaching aids are the most important tools fort the effective job training program.
1.
Preparing job instructions
2.
Instructing the job workers
(1)
The instructor should prepare himself to teach a job task and should analyze the task he is going to
teach, of this, he has to:
(a)
Decide the objectives of the job he is teaching
(b)
Pick out the key elements necessary for task completion
(c)
Gather the information, tools and materials necessary for the instruction.
(2)
The second requirement of effective job training is instructing the workers according to the
following steps:

- 30 -

a)
Explaining the worker
b)
Demonstrating the task
c)
Having the worker perform the task
d)
Follow up of worker performance
The workers ability to do the job effectively depends on the training they achieve in right direction. If the
mine management provides the effective training, the workers produce the aptitude.

1.

Full cost Accounting

when the costs of producing and selling mineral are identified and categorized the full costs of mining
mineral is defined as the sum of the direct cost plans applicable indirect costs that are incurred during
the mining and preparation or a mineral. Or, the full costs of producing a mineral means the total costs
needed to run the mine and make the profit.

2.

Differential cost Accounting

The accounting of costs concerned with the behavior of costs, is called differential costs or variable
costs that change under varying sets of parameters for same mining operations.
Suppose a coal mine company produced 100,000 tons of coal at a rate of Rs.280/ = per ton for April 2008.
this change between monthly accounting period of April and may forces a difference of Rs. 20.0 per ton in
the full cost. These changing costs are called the differential costs of mining operations.

3.

Decision Accounting

It is concerned with evolutions of alternatives. This accounting may involve investment in additional
machinery, the introduction of a new product, and altering of a selling prince, etc. and estimation of costs
and revenues associated with particular alternatives.

4. Financial Accounting
It is concerned with the profit and loss accounts and balance sheets as the requirement of share holders;
prospective investors; the organization of companies, the tax departments, and the persons outside the
management.

Thus, financial accounting may be involved with:

(1)
(2)
(3)
(4)

Operation, processing, and sales accounts

Profit and loss accounts
Balance sheets
Cash flow

Classification of Mine Costs

Classification of costs is the identification of each item of cost and systematic placement of like, items of
costs together according to their chrematistics. Costs may be categorized as DIRECT COSTS and
INDIRECT COST.

Direct Costs:
When an item or equipment is involving in a mining production activity, the cost of such item or
equipment is called direct cost. The sum of all direct cost associated with brining a mine into producing

- 31 -

through the 4 stages of prospectings exploration; development; and exploitation is called the direct
mining cost. Item wise, the cost also can identify as:
Direct material cost and direct labour cost,
For example

Direct material costs are the direct costs of items or supplies used in producing a mineral.
Such as: explosives, blasting devices, miner bits tools, timber, etc.

Direct labour costs, such as salary and other benefits of regular workers at the mine.
Indirect costs: are costs associated with the mineral mining that are accessory the operation, but do not
produce mineral directly, for example, wages of labour on contract, salary of administrative staff, rent
taxes, etc. these are usually computed as percentage of the direct costs and also ca be classified as : mine
indirect costs and material indirect consecration costs, whether direct or indirect, are assigned to: service
casts, marketing costs, and general and administrative (G & A) costs.

Service costs: are costs of mining operations needed to keep the mine in operation. These may be direct
or indirect costs, such as, supply of water, electricity, contract engineering, insurance, etc.
Marketing costs: are the costs which are incurred at the point of production from the mine stockpile (or
preparation plant) to the consumer. In this category, the direct costs are:
Ware house costs, transportation, quality testing express, etc.
Indirect costs are: marketing management, sales, advertising, etc.
G & A costs: those costs which are not mentioned in the above categories. These include: consultancy,
research, public relations costs, administrative costs, etc.
All These Costs may be Estimated as:
(a)
unit costs or per ton cost
(b)
overall production cost or overall mining cost

(a) Unit cost or per ton cost: per ton costing method is related to the determinations of the
costs producting a single ton of mineral. Each ton of the cost is tagged to the specific ton of mineral as the
mineral is produced, for example, the wages needed during mining of 1 ton of coal, the power required to
load that one ton, transport this single ton of coal from face to the consumer, and other service charges for
that one ton.
At the end of the task, the total of costs chargeable to the fob is obtained as the full cost of the product plus
the profit percentage.

(b) Over All Mining

The overall mining cost equals cost:
The sum of the direct and indirect costs for all unit operations or activities for all stages of mining.

I.e. overall mining cost = direct costs + indirect costs.

All Production

Cost: - If to the mining costs are added all other costs of producing mineral (beneficiation, smelting,
refining, transport, etc), the overall production results. Miscellaneous costs, such as, plant or machinery
depreciation, royalty charges, and taxes (other than income tax) should be added too, if applicable.
Thus, Overall Production cost = Mining cost + Other Production cost + Miscellaneous costs
- 32 -

Computation of profit / loss in mining a mineral product

Whether the mineral product is obtained with profit or less, the computation is based on the value (price)
of mineral in market and the cost incurred on its production and selling.
Value: the exact value of the product from a mineral operation can only be determined if preparation
schedule or sales contract is available. Lacking those, value estimates can be based on published market
prices for the specila mineral commodity in the area under consideration. Usually, a unit value calculation
is based on grade or mineral quality and the estimated overall recovery.

Ore value = Ore grade * Unit price * Recovery

Profit: knowing the value of mineral product and the costs to produce it, the gross profit can be
calculated on a unit basis.
i.e. Gross Profit = Value Overall Mining Costs
Net profit is obtained after the deduction of the provincial and federal taxes, if applicable, and also the
interest rate.

i.e. Net Profit = Gross Profit (Taxes) + Interest)

Profit results when cash inflows exceed the cash out flows. While a mine company is in loss when the cash
out flows exceed the cash inflows.

Deficit: A mining company has to face the deficit if its actual costs exceed the planned costs (managed
costs)

Depreciation (Rs / Yr): the depreciation is the reduction in value of machinery of plant when ever it
is in use. To find the depreciation the delivered cost of machinery equipment is divided with its economic
life.
Economic life of a machinery under normal / average mine conditions is 18000 hours. It varies according
to the conditions of mine whether worse or better conditions.
To find the economic life in years divided 18000 hours with operating period with in a single year, for
example,
(8 hours / shift) * (6 days / week) * (50 week / year)
= 2400 hours /year
Economic life = 18000 hours / 2400 hours / year
= 7.5 years
Thus, depreciation for a power should (for example) delivered at a cost of Rs. 75, 000,00/= will be
Rs 75000,00 / 7.5 years = 1000,000 / years

Depreciation per ton: suppose a mine produce 100,000 tons of mineral in a single year. The
depreciation will be

- 33 -

Rs 7500000 / 100000 ton = Rs 75 / ton

Computation of Profit and Loss\

Profit and loss depends on cash inflows (income from selling product) and the cash out flows (cost
incurred on producing him product). If the cash inflows exceed s the cash out flows, the profit will be
result and in either case, the loss will be the result.
The income depends on the sell price and quality of the mineral. Thus, for the special mineral commodity,
the unit value calculations
:
Ore Value = Ore Grade * Unit Price * Recovery
Knowing the exact value of the product from the mineral operation and the cost to produce it, the gross
profit can be calculated on a unit basis.
Thus, Gross Profit = Value (Return) Overall Mining cost
If the federal or provincial taxes re then applied, the net profit exists.
Net profit = Gross Profit Tax Percentage of Gross Profit

MINE PLANNING
Planning is the initial out line of working process. It deals with the identified issues / problems and their
solution. A mining project is followed by planning stages, such as:

1-

Initial Planning

: Feasibility report (initial data collection information)

: Valuation report
: planning costs (extraction leading to a profit)

This task is assigned to a steering committee:

- President (chairman)
- General Manager (mining operations)
- Chief geologist (exploration)
-Vice president (technical services)
-Consultants
They should be
: Of wide experienced and responsible
: Competent in their respective fields
: having complementary technical capabilities

- 34 -

2- Development and operational planning

The goals / objectives are:
(a)
To examine the economic merits properly
(b)
To mine the ore body in such a way that for each year the cost t produce a ton of mineral is
minimum, i.e. A philosophy
(c)
To maintain operation viability with in the plan
(d)
To defer waste and ore

The aspects of such planning are:

: Mine life
: Production schedule
: Production rate
: Productivity

3- Project planning
In mining, the project may be planned according to the requirements as shown in the following chart:

PLANNING OF MINE PROJECT

OFFSITES
: Access roads
: Site offices
: Primary power
: Workshop
: Fresh water

MINE DEVELOPMENT

MINE SERVICES

: Haul Roads
: Entries / Openings
: Equipment Erection
: Mine Preparation
: Stripping / Waste removal
: Waste Dump Development
: Ore Stock Pile
Development

- 35 -

MINE PRODUCTION
EQUIPMENT

: Service roads
: Service equipment
: Communication
: Mine power
: Mine shops
: Mine offices
: Magazines
: Drainage
: Fresh air supply

: Cutting, DrillingBlasting machines

: Loaders
: Transport means
: Mobile crushers
: Safety devices
: Claimers
: Hoisting
Machinery

4- Environmental Planning
: Stability of mine
: Waste management
: Surface / ground water management
: Protective measures unsafe conditions
: Legislation limitation
: Rehabilitation

STRATEGIC PLANNING
It is to prepare a strategy or game plan for dealing with the identified problems or issues and their solution.
Strategies are the action to be taken for certain important issues.

In mining, the major strategic issue is:

-Expansion or contraction of the production capacity it includes the identification of strengths and
weaknesses of the system and their assessment.

Depending on the nature of issue, the strategy planning is classified as:

Long range planning (LRP) or long-term mine planning

Medium range planning (MRP) or medium-term planning
Short range planning (SRP) or short-term mine planning

LRP: is provided for the continued operations of the mine over a long period of time, usually 5 to
10years planning.
LRP involves 04 basic elements:
(i) Mine layout: A modern layout of a mine comprises 02 distinct zones:
(a)
The underground network, and
(b)
The surface support facilities
(a)
The underground network is actual production area, such as: ventilation, haulage, roof support
must be monitored or respected.
-The variables that can change a mine plan are seam thickness, structural dips, mechanical properties,
etc.
-Mine plan or projection is an invaluable tool for planning and purchasing the necessary equipment
needed. It also provides an overall view of the mine.
(b) The surface support facilities include:

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Quality control laboratories, preparation plant, refuse storage area, sedimentation ponds, clean mineral
silos, water treatment plant, supply station, etc.
(ii) Equipment, its maintenance, rebuilding and replacement:
Equipment is the most costly component of mining. But it is essential for stable production rates. A proper
maintenance program must be followed to minimize unwarranted breakdowns.
LRP must identify how many sections will be required so that the necessary equipment will be available.
The equipment must be selected on the life of its services and depreciation.
(iii) Labour: The most critical factor in planning the manpower requirements is the tons per man-day
productivity that will permit the mine to be competitive. This figure divided into the daily mine tonnage
establishes the size of the total workforce to allocate them various areas of work such as production,
haulage, maintenance, supervisory, general day work, etc.
(iv) Budgeting: depends or: capital investments
: Mine costs
: Rate of investment return.
It needs: plans for specified period performance
: Comparison between actual and planned performance

MRP: Mine planning that deals with every year on the basis of the long-term plan. However, these
plans are made with in the framework of the LRP.

SRP: Short term mine planning uses the plan that is necessary for the operation of a mine on a day by
day basis.
It directs the activity of daily and assumes that the dailys production target is met.

The following plans or assessments are made on the dailys basis.

: Production plans
: Section move-up (progress) plan
: Maintenance plan
: Construction plan
: Consultancy or research plans

Planning Tools: are techniques managers can use to help develop plans. The most important
planning tools are:
(a)
Fore casting: is a planning tool used to predict future environmental happenings that will influence
the operation of the organization.
(b)
Scheduling: is the process of formulating
(i) a detailed listing of activities that must be accomplished to attain the objectives, (ii) allocating the
resources necessary to attain the objective, and (iii) setting up with follow up of time tables for completing
the job.
(c) PERT: program evaluation and review technique: is a network of project activities showing both the
estimate of time necessary to complete each activity and they sequence of activities that must be followed
to complete the project.

A coal mine operates on the following basis:

Total approved coal resources = 20 610 tons

Mine life = 25 years
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Number of shifts / days = 02

Number of miners / shift =100
Capacity of mine car = 5 tons / car
Number of trips of a car / shift = 8
Market coal price = Rs 500 per ton

Summary of costs for ended year-2001 for a single ton of coal is:

Development charges = Rs. 70

Other production cost = Rs. 40
Auxiliary operation charges = Rs. 50
Royalty = Rs. 15
Annual income tax = 30 %
Loading and transport cost = Rs. 30
Marketing and transporting cost = Rs. 60
Salary charges Rs. 150
Daily wages = Rs. 20

Estimate the followings

(1)
Production rate
(2)
Productivity
(3)
Number of mine cars for dailys coal product
(4)
Gross and net profit
Solution
(1)
production rate
20 6 10ton
ton / year =
8 5 10ton / year
25 year
output
Productivity =
in put
ton / miner shift = 13.333 ton / shift per miner
(2)
Number of mine cars for dailys coal product

MAINTENANCE MANAGEMENT
Important objective of maintenance management:
(1)
(2)
(3)

Plan and control of machine productivity to achieve the highest feasible machine productivity.
Plan and control of labour productivity to achieve the heist feasible labour productivity.
Plan and control of mine conditions to achiever the highest feasible mineral productivity.

In case (1): proper maintenance program must be followed

: to minimize un warranted break downs or to minimize unscheduled stoppage or to minimize machine
down time.
: to eliminate dangerous failures
: to minimize maintenance cost

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In case (2): the most critical factor in planning the manpower requirement is the ton per man day
productivity. That will permit the mine to be competition. If the (ton man day is not achieved, the system
must be replanned) implemented and maintained by providing:
: training the maintenance perssoned through teaching, lectures, and demonstrations.
: Facilities and safety measures.
In case (3): mine conditions are maintained are kept safe not for labour and machinery only, but the
product needs security also. The control measures are taken for:
: Rock fall
: Support system
: Dewatering
: Dilution
: Depillaring
: Loading and handling

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