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MRE810S - Mine and Resource Enginnering Man 414 - 1st OPP - JUN 2023 |
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'9
nAmI BIA unIVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTY OF ENGINEERING AND BUILT ENVIRONMENT
DEPARTMENT OF CIVIL, MINING AND PROCESSENGINEERING
QUALIFICATION : BACHELOR OF ENGINEERING : MINING ENGINEERING
QUALIFICATION CODE: 08BMEG
LEVEL: 8
COURSE CODE: MRE810S
COURSE NAME: MINE AND RESOURCEENGINEERING
MANAGEMENT 414
SESSION: JUNE 2023
DURATION: 3 HOURS
PAPER: THEORY
MARKS: 100
EXAMINER(S)
MODERATOR:
FIRST OPPORTUNITY QUESTION PAPER
PROF. GODFREY DZINOMWA AND MR. RUBEN MWALWANGE
MR REHABEAM NEPAYA
INSTRUCTIONS
1. Answer all questions.
2. Read all the questions carefully before answering.
3. Marks for each question are indicated at the end of each question.
4. Please ensure that your writing is legible, neat and presentable.
PERMISSIBLE MATERIALS
1. Examination paper.
2. Calculator and appropriate stationery
THIS QUESTION PAPER CONSISTS OF 7 PAGES (including this front page)
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Question 1
[20 marks]
Nam Gold is a newly established mining company. It is presented with the organizational structure
shown in figure X. The initial stages of the strategic planning process have taken into consideration
whether a divisional or functional organizational structure should be employed.
General
Manager
Process
Manager
Human
Resource
manager
Risk
Manager
Finance
Manager
Figure X. Organizational Structure
Engineerin
g manager
Health
and Safety
Man er
Public
relations
Manager
Mining Procureme
manager nt Manager
(a) Explicitly distinguish between divisional and functional organizational structure [2]
(b) By critically analyzing the organizational structure in figure X,
(i) What weakness can you point out in this structure?
[2]
(ii) What are the likely negative consequences of employing such a reporting structure
in Nam Gold Mining company?
[2]
(iii) How would you address the stated weaknesses to improve the organization's
operational efficiency?
[2]
(c) Advise the management of Nam Gold as a new mining company, on how to get a social
license to operate and the merits of having such a license.
[2]
(d) You are the manager of two supervisors, both of whom are not performing satisfactorily.
One (Alice) was recently transferred from another section and you attribute her poor
performance to lack of familiarity with the job. The other (Liz) has been in the position
for a while and you have spoken to her about the need to improve her performance several
times but there has been no notable improvement.
Explain how you would address the poor performance in each case (in terms coaching,
motivation and disciplining)
[IO]
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Question 2
[15 Marks]
Agilent4.0 Mine, a copper producer in southern Africa took cognizance of embarking on a
modular Business Process Re-engineering (BPR) in 2002. In addition, the mine adopted the
concept of lean management. It was the management effort for the mine to remain competitive
amid serious threats to operational viability due to hyperinflation. Figure XY shows the simplified
BPR cycle for Agilent4.0 Mine.
Business ,ision
and mission
statement
l
Critical Success
Factors and Key
performance
Indicators
Benchmarking and
i-----. Comparative
Analysis
i
Redesign
Processes and
Eliminate 1--J
Redundant
Processes
l
Integrate
Redesigned
Processes
- Measurementof
Progress
Process analysis
and Baseline data
People Education,
Training and
Development
Figure XY. Simplified BPR cycle for Agilent4.0 Mine
(a) Evaluate the significance of adopting the concept of lean management m Agilent4.0
Mine's mining and processing operations.
[5]
(b) Evaluate the strength of the developed BPR model in figure XY and outline at least four
main objectives of Business Process Re-engineering.
[2;4]
(c) Advise the management of Agilent4.0 Mine of what is not considered as Business Process
Re-engineering practice.
[4]
Question 3
[15 Marks]
Mining operations utilize risk analysis models with the main purpose of identifying accidents and
incidents in a mine as well as their root causes and to perform a risk analysis. Figure ZX presents
an accident risk analysis matrix used in BMX open cast Mine.
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Likelihood
Almost Never
Low
Moderate
High
Fatal
rnHospitalization
Doctor's Visit
First Aid
No Injury
Figure ZX. Risk Analysis Matrix
Almost
Certain
(a) What risk management strategies would you employ at an accident-prone BMX opencast mine,
in order to move from the 'Fatal -Almost certain' operating zone to 'No injury-Almost never'
operating environment
[5]
(b) Discuss the succession management plan of a multi-national company to select and develop a
future Chief Executive Officer
[5]
(c) A civil engineer decides to present himself to potential employers as professionally competent
in mine engineering, based on his belief that the two disciplines are similar. Discuss the
shortcomings of such conduct from an ethical point of view
[5]
Question 4
[7 Marks]
(a) Mine ZV's Human Resource department renegotiated with a retirement fund
representative on behalf of their employees, who are their important assets. They decided
to pay $ 6000 per year for 30 years into a retirement account at an annual interest rate of
5% compounded annually.
(i) What is the value of the account in 30 years?
[5]
(ii) What would be the lump sum value of the arrangement in present dollars? [4]
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Question 5
[11 Marks]
An engineer for a mining company is directed to examine a special property and to advisethe
company's management as to its potential value. Estimates of the ore readily available are 800
000 tonnes and she bases her evaluation on that figure. Mining equipment available will meet an
annual production estimated at 75 000 tonnes of ore. It is estimated that gross income will be
$15.75 per tonne of mined ore and that mining operations, transportation and smelting costs will
total $7.75 per tonne of ore. Administration and other expenses are estimated to be $55 000 per
year.
(a) What would the engineer report as expected life of mine?
[2]
(b) If the interest for the project was 7.5% per year compounded annually,
(i) Calculate the probable present value of the property.
[5]
(ii) Would the engineer be justified in recommending that the company invests $ 10
million in the property? Show your working and state your reasons clearly. [2;2]
Question 6
[5]
Maintenance costs for a new piece of mining equipment which costs $150,000 are expected to
be $25,000 in the first year, rising by $1,000 per year every year thereafter. The machine has a
life of 5 years and interest is 10% annually. The salvagevalue is $55 000.
What is the net present value of these costs?
[5]
Question 7
[5 Marks]
A certain gold mine has a production capacity of 200 000 tonnes per month at an ore grade of
3.5 git. The mill recovery is 86% while that for the subsequent smelting and refining is 90%. If
the mining and overall processing costs are $40 and $30 per tonne ofore respectively, while tax
is 20% of profit; Assume 1Oz = 30g.
What is the after tax income of the operation if the gold price is US$1700/Oz?
[5]
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Question 8
[15]
RBM Mines Ltd is considering the expansion of its medium-sized open pit copper mine and
Process Plant consisting of a Concentrator, Smelter and Refinery. For a capital investmentof
US$14.5 million, the operation can be expanded from 9 000 to 12 000 tonnes per day ore
production with a commensurate increase in waste stripping.
Given the following data from RBM Mines Ltd, determine the grade of the Ore (i.e %Cu)that
will give a rate of return on Investment of 10% per annum.
[ 15]
Data:
Ore grade = % Cu ?
Net copper price from custom smelter = $ 1500/t
Overall process recovery = 85%
Total annual cash costs including income taxes= $4 500 000
Mine life = 10 years
No salvage value
Operating days per year= 360
Question 9
Define sustainability as it applies to the mining industry. Give three examples of
sustainability measures being applied at a mining operation.
[5]
[5]
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Formulas:
Time value of money compound interest formulas:
F = P(1 + it
P=
F
(1 + i)n
F = A. [( 1+ i.t - 1]
p = A-[+(i1)n- 1]
i(I + it
Com oundin under different time horizons:
A==pl+- r nt
n
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