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Assume you are an investment planner in a major mining firm and your mine exploration team notifies you that they found gold in a potential
Assume you are an investment planner in a major mining firm and your mine exploration
team notifies you that they found gold in a potential mine. You know that mining is a long
term investment that has a long payback period that can be up to years. Therefore,
you must carefully calculate the potential revenue and costs and report your findings to the
company executives for them to decide whether it is feasible to invest in this potential field.
Figure : Open Pit Gold Mine. Figure source.
To create the comprehensive financial plan, you consider the lifecycle of a Gold Mine
which has four major stages:
Gold Mine Exploration and Discovery:
Gold mine exploration consists of searching for gold ore in a location that requires
expertise in many disciplines eg geography, geology, chemistry, and engineering. If
initial indicators are found, we want to explore the area to make sure we have a feasible
amount of valuable minerals to invest in there.
Gold Mine Development: Reaching this stage means that you are lucky; exploration
and discovery investments were not a total loss. This stage starts with the investment of
the feasibility study, performing it raising the funds, and getting mining permissions.
Since your company has multiple operations, you will need to output the name of the
mine. However, they havent decided on a name yet. It will be given as input to your
program when it is run. Write a line of input that takes the name of the mine and
stores it into a variable.
You also need to account for all investments required to reach the orebody. The table
below lists the initial costs of mine development. Write a statement to calculate the
sum total of all development costs and store it in a variable. Print this variable as
output.
Items Cost in Million USD
Land, Buildings
Main Equipment
Openings development
Infrastructure
Tailings Dam
Miscellaneous
Gold Mine Exploitation: After reaching the orebody, the ore is extracted and
processed into dor e gold containing metallic alloys and then this dor e is
transported into refineries to obtain pure gold.
We have to calculate the yearly potential operating revenue and cost to see whether
our mine is profitable or not. Our total cost is the sum of excavation, processing,
employee salaries, and other items, as listed in the table below. Your program should
calculate the sum of all yearly operating costs, store it in a variable, and print it
as output.
Items Units Unit Price USD Count per year
Excavation Metric Ton T $ per T Million T
Processing Metric Ton T $ per T Million T
Employees People $ per Employee
Utilities & Other $ per year
Next, we want to calculate our gold price and yearly revenue. This requires several
steps:
a Metric Ton of ore contains grams of gold, and we expect to extract million
T of ore yearly. After extraction, we get a dor e that is sent to a refinery. The
refinery refines the dor e into pure gold. However, as a processing fee, the
refinery takes of the product and hands over the rest as gold bars. Calculate
the resulting pure gold bars you get in a year in grams, store it in a
variable, and print it as output.
b The gram price of pure gold is constantly changing. Therefore, we need to update
this information without having to change the code. Write an input line to ask
the user to input the expected gold price.
c Combining the steps above, write code that calculates the yearly revenue and
store this number in a variable.
NOTE:
Metric Ton Kilograms
Kilogram grams
Gold Mine Closure and Reclamation:
After the mine is deemed unprofitable, the mine is closed and all its related facilities
are dismantled. The mining company is responsible for the revegetation, and rehabil
itation of the land. We assume this will cost $ Million; store this reclamation
cost in a variable.
Input
The program will take two lines of input:
The name of the mine
Expected price per gram of gold an integer
Output
Company executives will expect the program to print out a report of our
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