Detailed operating costs, labour schedules, indirect mining costs and other overheads are derived for each process from a comprehensive database of local and international cost elements. A series of customised spreadsheets are used for the development and consolidation of these cost estimates, prior to their input to the project evaluation models.
For the capital estimate, AMC uses a standard computerised project control ledger (PCL) system to ensure an accurate and consistent estimate, and later on for cost control and tracking during implementation of the project.
Capital and operating cash flows derived from the cost and schedule estimates can be input into DCFROR spreadsheets for project evaluation, sensitivity studies and risk analysis. AMC uses IC-Min Eval software for project assessments and risk studies since we are aware that rational decision making necessitates a structured rather than an ad-hoc approach to ensure that the final decision is both appropriate and based on all available information.
This is particularly important in the Africa context where technical, economic and political factors can be a significant influence during project design and implementation.
