Sample Mine Model

new See the sample model for the Bulong nickel mine and pressure acid leach process.
Registered minecost subscribers can get the editable version of Bulong here.

The sample model is for Freeport's Grasberg copper-gold mine located in Irianjaya, Indonesia. Grasberg is a complex operation with a large open pit and underground mine feeding four mills. Note that we separately model each part of the operation - the open pit mine, the underground mine, each of the four mills and the port facility. All years 1991 to 2007 are modelled, with the editable version of the model user-extendable out to 2015.

Minecost models are constructed as multi-sheet Excel spreadsheets, as shown below. Each sheet reports an aspect of the modelled result - production, the flowsheet, operating costs, revenue and so on. There is also an Edit sheet that allows users to change model input variables and adjust the model operating assumptions. The model itself is in sheets A, B, C ..., depending on how many mining units feed the mill. These sheets are normally hidden to reduce screen clutter, but you can always unhide them to see the model calculations and formulas.

You can view images of each sheet by clicking on the sheet names below. Please note that the images are shown only for years 1998 to 2004 for clarity and that some of the sample sheets are very large and have been broken up into sections to speed up the display on your browser.

Note: Many browsers squeeze the images to display them on one page. Expand the image in Internet Explorer by letting the mouse pointer hover over the image and press the Expand icon.

The Summary sheet is a short-form bottom line result containing basic production data and operating cost per ton of ore milled and per pound of paid metal.

The Edit sheet shows all the operating variables and inputs that can be changed by the user. Note that the Edit module is only available for editable models - it is not in the standard models or the free sample model that anyone can download. Only registered subscribers can download a free sample of the editable model.

The Production sheet shows ore mined and milled, mill grades, mill recoveries and metal production in concentrate. A simplified version of this module can be downloaded for free for all mines posted on the site by following the Production Data links on the menu bar below.

In the Flowsheet section of the model you can see the specific operating assumptions and information we have used at every step in the mine flowsheet to construct the model. The general assumptions underlying our models are covered in our list of Frequently Asked Questions.

The Operating Cost sheet contains line-by-line cost estimates for each step of the flowsheet plus offsite shipping, smelting and refining costs in dollars per day and in dollars per ton of ore milled. The major aggregates are shown in terms of dollars per day, dollars per ton of ore milled and cents per pound for paid metal.

The Revenue sheet shows revenues and net smelter return for each mine product, and the allocation of smelting, refining and shipping costs, plus royalties where applicable.

The DCF sheet calculates net cash flows after capital investment expenditure and tax and net present values for the life of mine.

The Charts sheet contains the industry cost curves for each production year.

A brief description of the mining property is now included in most, but not all, of the models. This one is for Grasberg.

In the Notes & References sheet you can compare our modelled costs with Freeport's own numbers and see the data sources used to construct the model.

Finally, in the Audit sheet you can see a reconciliation and verification of the model calculations.

We recommend that you download the complete model as a zipped file containing an Excel spreadsheet by clicking here.

If you become a registered subscriber, you can also download the free sample Editable version of the Grasberg model, and the free User's Guide to minecost.com models which annotates each line item and the model formulas.

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