List of top Mineral Economics Questions asked in GATE MN

The real rate of return from a mining project is 14%. If the inflation rate over the entire life of the mine is 5.5 %, then the nominal rate of return in %, is (round off up to 2 decimals)

Figure shown relates to the manufacture of roof bolts. With respect to the cost/revenue vs production level, match the appropriate trend line with corresponding description.

Production planning of a small quarry having 3 years of life is shown in the figure. The following information of revenue and cost data are available.

Selling price of ore = Rs. 1500/tonne
Ore mining cost = Rs. 500/tonne
Waste mining cost = Rs. 500/m\(^3\)
Initial capital = Rs. 1000 million
Discount rate = 10%
By neglecting depreciation, salvage value and corporate tax, the NPV of the mining project, in million Rs., is \(\underline{\hspace{2cm}}\). [round off to 2 decimal places]

The difference between depreciation and amortization allowances in tax calculation is that

Owning cost of a machine does NOT include