Integrated business modelling for engineers, accountants and management

Mine evaluation methodologies are well suited to evaluating many projects in capital-intensive industries other than mining. These industries include oil, gas, power generation, transport and infrastructure projects. A case study of an open cut coal mining operation, utilising Runge Mining's 'XERAS(TM)' financial modelling software, is detailed in this paper, demonstrating how the forecasting and planning methodology can integrate information for use by engineers, accountants and management. This approach focuses on costing operating processes. It does nor fully follow a text book definition of Activity Based Costing (ABC). Higher level processes have been divided into subprocesses. These reflect services available from third party contractors in the open market place. The key to success of this approach has been to identify the unit cost, comparing it to the market place cost for the process. This is the beginning of a strategy to add value to the operation.