Costing in mining and proposal for practice for enrichment of nickel ore

Mining is the extraction of valuable minerals or other geological materials from the earth. Costing is the calculation of all the expenditures for produced goods or services and reporting of details. Costing in mining is very important. The traditional costing systems are insufficient to calculate the costs. Activity-based-costing is approach about development of the traditional costing systems.Nickel ore enrichment enterprise will use sulfuric asid heap leach process for enrichment of nickel ore. Leaching is the chemical enrichment method in mining. Stripping, ore mining, crushing and screening, heap construction, leaching, pregnant solution, enrichment and product finishing are the main activity and production cost centers of the enterprice. Stripping cost will transferred to produced ore with stripping ratio. Every heap will construct as cell and cost of each cell will be calculated. Cost of heaps will transferred to pregnant solution according to recovery of nickel. The cost of sulfuric asid and electricity will be calculated as joint-product then will be distributed.The costing system of enterprice is developed to work integrated system with process, job and activity-based-costing systems according to production progress.