What should be considered for beneficiation cost?

Customers often ask about the beneficiation costs in addition to the mechanical equipment used for beneficiation? Today, engineers from Fodamon summarized the costs related to the product design of the concentrator as follows:

(1) Raw material cost: raw ore mining cost plus transportation cost of raw ore from the mining site to the concentrator.

(2) Auxiliary material cost: the designed auxiliary material consumption quota is multiplied by the local material price, or according to the national material unit price (if the transportation distance is long, the transportation and miscellaneous expenses of materials shall be considered.) Multiplied by the design consumption quota.

(3) Water and electricity consumption for beneficiation: the designed water and electricity consumption index is multiplied by its unit price (the water and electricity index shall deduct the electricity and water consumption for repair and administrative welfare facilities).

(4) Wages of production workers: refers to the basic wages and auxiliary wages of direct production workers and auxiliary production workers engaged in Beneficiation Production (excluding the wages of machine repair, maintenance and non production personnel).

(5) Wage surcharges for production workers: 11% of total wages according to national regulations.

(6) Major repair expenses and maintenance expenses (including materials, wages, power, depreciation and other expenses for major repair and maintenance): it is calculated by multiplying the major repair rate and maintenance rate by the investment amount of fixed assets per unit product (deducting the expenses of machine repair, overhaul, administrative and Living welfare facilities).

The major repair rate is generally 2 ~ 2.5% of the original value of fixed assets, and the maintenance rate is generally 3 ~ 6% of the original value of fixed assets. The maintenance cost can also be calculated by multiplying the cost of equipment and buildings (structures) in the original value of fixed assets by their corresponding rates. The competent departments of all regions have regulations on the rates of enterprises, which can be implemented by reference.

(7) Basic depreciation expenses: generally, basic depreciation is withdrawn according to the service life of the enterprise or the service life of the equipment and buildings (structures) invested in fixed assets.

When the service life of an enterprise is very long, 20 years is generally taken as the economic calculation life of the enterprise for the calculation of basic depreciation.

The formation rate of fixed assets shall be calculated according to the design estimate, deducting the expenses of machine repair, maintenance, administrative and Living welfare facilities in the fixed assets. If there is no design estimate, it can be calculated as 0.85 ~ 0.9 of the total investment.

(8) Management fees (including workshop expenses and enterprise management fees): due to the large number of projects, it is complicated and difficult to calculate in detail during the design, which can be selected according to the actual indicators of similar enterprises.

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