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MRE810S - Mine and Resource Enginnering Man 414 - 2nd OPP - JUN 2023 |
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nAmI BIA unIVERSITY
OF SCIEn CE 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)
SUPPLEMENTARY EXAMINATION QUESTION PAPER
PROF. GODFREY DZINOMWA AND MR. RUBEN MWALWANGE
MODERATOR:
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 6 PAGES {Including this front page)
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Question 1
[10 Marks]
(a) In the years 2019 - 2022, the COVID-19 pandemic has impacted on the minerals industry and is
projected to continue to do so in various ways.
(i) What are some of the changes that the pandemic has caused so far, and how doyou
project it to affect the mineral industry in future?
[5]
(ii) If you were the Chief Executive Officer (reporting to the Board of Directors) of alabor-
intensive mining operation, what changes would you make to your organisation, and
how would you communicate these to all stakeholders?
[5]
Question 2
[23 Marks]
A town council is served by 5 rock quarries spread around the town. A road project in town requires
150,000 tons of aggregate. A survey of the 5 quarries reveals their unsold capacity and delivered cost
per ton as shown in the table. Assume that the qualities of the aggregate meet specifications from all 5
quarries.
Table: Costs and Unsold Capacity of Quarry Aggregates
Quarry
A
8
C
0
E
S per Ton Delivered
$10.50
$12.00
$12.50
.$14.•00
$14.25
Tonsof UnsoldCapac,ity
45,000
55,000
25,000
50,000
25,,000
a) How many tons of aggregate would be supplied by each quarry to minimize cost?
[10]
b) If the airport project budgeted $2.0 million for aggregate, is the project going to be within budget for
this item?
[3]
(c)What is the maximum cost that the town council would pay if procurement manager did not pay
attention to cost and how many tonnes would be delivered by each quarry in that situation? [5]
(d) If the municipality was constrained to procure at least 50% of the stocks from each of the community
owned Quarry D and Quarry E while minimizing costs, what quantities would be supplied by each
quarry and what would be the total cost for the 150k tons?
[5]
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Question 3
[25 Marks]
Project management is the process of leading the work of a team to achieve all project goals within the
given constraints.
(a) Discuss two important aspects of a project which a project manager should control and what are
the tool(s) the project manager should apply to make such aspects realistic and accurate at the
planning stage
[7]
(b)You are presented with the following project scenarios, tabulated below.
Project Budget at
No.
Completion
(BAC)
($)
1
40,000
2
40,000
3
40,000
4
40,000
5
40,000
6
40,000
7
40,000
8
40,000
9
40,000
10
40,000
11
40,000
Budget Cost
of Work
Scheduled
(BCWS) of
Planned
Value
($)
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
Budgeted
Cost of
Work
Performed
(BCWP)
or Earned
Value($)
20,000
18,000
20,000
22,000
18,000
12,000
18,000
20,000
25,000
16,000
24,000
Actual
Value of
Work
Performed
(ACWP)
($)
20,000
18,000
15,000
18,000
20,000
20,000
22,000
22,000
12,000
18,000
25,000
Project scenario 1 is the ideal situation where the planned progress and cost are the sameat the time
of evaluation, which means that the project is both on schedule and within budget.
Comment on the status of the project as reflected in each of Scenarios 2 through to 11 in terms of
whether it is ahead/on/behind schedule and within/above budget.
[10]
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(c) In the case of a new Gold mine that has been approved for construction within a certain
period, what are the possible risks of completing the construction and commissioning the
mine a year later than scheduled?
[8]
Question 4
[5 Marks]
A potential investor considers four projects with the same present values and the cashflows shown in
Figure MX.
Which project( s) would the investor select if the interest is 10%? Justify your answer.
[ 5]
Year, n Cash Flow
( 1)
1
2
3
4
Total
$1,000
$1,000
$1,000
$11,000
$14,000
Figure MX: Cash Flow
Cash Flow
(2)
$3,500
$3,250
$3,000
$2,750
$12,500
Cash Flow Cash Flow
(3)
(4)
$3,154.71
$0
$3,154.71
$0
$3,154.71
$0
$3,154.71 $14,641
$12,618.84 $14,641
Question 5
[10 Marks]
Mine XY's executive committee of management (EXCO) decided to invest $20 000 in a Cash
Deposit compounded annually at 4% annual interest for 10 years.
(a) What is the value of a cash deposit when it matures in 10 years?
[5]
(b) What is the value of the Cash deposit at maturity if the interest compounds every 3 months?
[5]
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Question 6
[12 Marks]
NamGold LTD, is undergoing a restructuring of its organizational structure. The executive
management decided to replace the Chief Executive Officer by honoring the succession plan which is
part of the company's strategic plan. However, proper change management is required thereafter.
(a) Define the concept 'Change Management'.
[2]
(b) Discuss the succession management plan of a multi-national company such as NamGold LTD,
to select and develop a future Chief Executive Officer
[10]
Question 7
. [15 Marks]
Before an investment is made, it is advisable to weigh the viability of the project. A payback period
is one of the measures of projects' viability.
(a} Apart from the payback period method, discuss at least five (5) suitable criteria that can be
used to make an informed choice of a single project from several optional projects to invest
m.
[10]
(b) Illustrate the relationship between metal price, ore cut-off grade and ore reserves, and
explain how the latter two are impacted by metal price?
[5]
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Formulas:
Time value of money compound interest formulas:
F = P(l + i)n
P=-- F
(1 + i)n
F = A.[( 1+ i.t - 1]
P=A_[(1+i)n-1]
i(l+ i)n
Com oundin under different time horizons:
A=pl+- r nt
n
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