Entrepreneurship project on Mining industry.This project for Mechanical & Metallurgy engg. This includes its meaning,business,Different costs & calculation etc.

1. A
Entrepreneurship Project
On
“MINING INDUSTRY”
Bachelor of Technology
In
MECHANICAL ENGINEERING
BY
NADI BIDYADHARA
Roll no- 12ME021
REGD No- 1201210831
Under the esteemed guidance of
Prof. Debabrata Panda
DEPARTMENT OF MECHNICAL ENGEERING
GANDHI INSTITUTE OF ENGINEERING

2. AND TECHNOLOGY, GUNUPUR-765022
ENTREPRENEURSHIP
Entrepreneurships neither science nor an art. It is the practice. It has a
knowledge base. Entrepreneurship is the practice of starting new
organizations or revitalizing mature organizations, particularly new
businesses generally in response to identified opportunities.
Entrepreneurship is a creative human act involving the mobilization of
resources from one level of productive use to a higher level of use.
"It is the process by which the individual pursue opportunities without
regard to resources currently controlled. “Entrepreneurship involves a
willingness to take responsibility and ability to put mind to a task and
see it through from inception to completion. Another ingredient of
entrepreneurship is sensing opportunities, while others see chaos,
contradiction, and confusion. Essence of Entrepreneurship is going
against time with maturity and serving as a change agent.
SCOPE OF ENTREPRENEURSHIPDEVELOPMENT IN INDIA
In India there is a dearth of quality people in industry, which demands
high level of entrepreneurship development programme throughout the
country for the growth of Indian economy. The scope of
entrepreneurship development in country like India is
tremendous.Especially since there is widespread concern that the
acceleration in GDP growth in the post reforms period has not been
accompanied by a commensurate expansion in employment. Results of
the 57th round of the National Sample Survey Organization (NSSO)
show that unemployment figures in 2003-04 were as high as8.9 million.
Incidentally, one million more Indian joined the rank of the unemployed
between 2005-06 & 2007-08. The rising unemployment rate (9.2%2008
est.) in India has resulted in growing frustration among the youth. In
addition there is always problem of underemployment.

3. As a result, increasing the entrepreneurial activities in the country is the
only solace. Incidentally, both there ports prepared by Planning
Commission to generate employment opportunities or 10 crore people
over the next ten years have strongly recommended self-employment as
a way-out for teaming unemployed youth. We have all the requisite
technical and knowledge base to take up the entrepreneurial challenge.
The success of Indian entrepreneurs in Silicon Valley is evident as
proof. The only thing that is lacking is confidence and mental
preparation. We are more of a reactive kind of a people. We need to get
out of the sand become more proactive. What is more important than the
skill and knowledge base is the courage to take the plunge. Our problem
is we do not stretch ourselves. However, it is appreciative that the
current generations of youth do. Not have hang-ups about the previous
legacy and are willing to experiment. These are the people who will
bring about entrepreneurship in India. At present, there are various
organizations at the country level & state level offering support to
entrepreneurs in various ways. The Govt. of India & various State Govt.
have been implementing various schemes & programs aimed at
nurturing entrepreneurship over last four decades. For example, MCED
in Maharashtra provides systematic training, dissemination of the
information & data regarding all aspects of entrepreneurship &
conducting research in entrepreneurship.
Then there are various Govt. sponsored scheme for the budding
entrepreneurs. Recognizing the importance of the entrepreneur
development in economic growth& employment generation,
Maharashtra Economic Development Council (MEDC) has identified
entrepreneurial development as the one of the focus area for Council
activities two years ago. Various Chambers of Commerce & apex
institutions have started organizing seminars & workshops to promote
entrepreneurship.
Incidentally, various management colleges have incorporated
entrepreneurship as part of their curriculum. This is indeed a good
development. This shows the commitment of the Govt. & the various

4. organizations towards developing entrepreneurial qualities in the
individuals.
Business in Mining Industry
There are some businesses that people do not pay much attention to. I
have alsodiscovered that in business, people usually have this
bandwagon attitude; ‘Oh! Forex business is trending, let’s all go and do
Forex’’ then everyone jumps into Forex business and before you know
it, the business crashes and it’s back to square one and then we blame it
on the economy or the government.If there is one thing I have learned, it
is that successful business owners think outside the box. They offer
products and services that no one else is offering. They don’t jump on
other people’s ideas; they create theirs or study the lapses in other
people’s innovations and businesses and create a better option.

5. Everyone wants to buy and sell the same thing or offer the same services
but the real money is not in these kinds of businesses. The real money is
in the businesses that no one is paying attention to. Businesses like
agriculture and mining are in the list of businesses that people do not pay
much attention to. I agree that it is comparably difficult to set up a
mining business and the business poses a lot of risks but which business
is easy? If you take a quick trip to a website like Alibaba.com, you
would see tons of buyers interested in buying products in the mining
industry. So what are the business opportunities available in the mining
industry?
Different entrepreneurship and business in Mining Industry

6. 1. Limestone mining-: Limestone is the main ingredient used in making
cement. You can start a business of mining limestone and selling to
cement manufacturers. So, if you live in countries like USA, Jamaica,
Cuba, Haiti, Dominican Republic, France, Nigeria or England, you
could start a limestone mining business.
2. Iron-ore mining-: Iron-ore is the major mineral used in producing
steel and can be found in countries like Nigeria, China, Australia, Brazil
to mention few.
3. Mining Consultant-: Every industry needs a consultant who could
offer advice, directions or suggestions to help the industry move
forward.
4. Transportation Services-: After mining, these items need to be
transported to places where they would be refined or used. You could
build a haulage business that focuses on helping investors in the mining
industry transport their goods safely.
5. Brokerage services-: I talked about Alibaba.com earlier in this
article. There are several of such websites where you would find a lot of
people who are hungry for several solid minerals. Likewise, there are
miners who do not have an idea of where to sell their goods. You could
earn commission from linking buyers and sellers together.
6. Financial Consultant-: You could also become a financial consultant
to people in the mining business. You would help them secure
funding, help them with tax issues and anything that has to do with the
financial aspect of the business.

7. 7. Machine sales-: Another business idea is to start selling equipment to
people who are already in the mining business. Equipment used for
mining is generally expensive, so you must be ready to invest a lot of
capital in this business.
8. Oil-well leasing-: If you live in an oil producing country like Nigeria,
Saudi-Arabia, Canada, Venezuela, Kuwait, Russia, China where there
are large deposits of crude oil, you could lease an oil-well from the
government or sub-lease from private investors and start mining crude
oil.
9. Quarry-: Starting a quarry is also a very good business idea because
stones are very important materials used in the construction industry.
10. Equipment leasing-: Not everyone in the mining industry can afford
to buy all of the equipment that they need. You could purchase these
equipment’s and rent them out to other people for a fee.
11. Power supply-: You could also start a business of selling generators
or constructing alternative energy sources like solar energy or wind

8. energy to people in the mining industry in order to help them cut power
costs.
12. Crude oil importation/ exportation-: This is a two-way kind of
business. If you live in an oil-producing country, you could start a crude
oil exportation business while if you live in a country that doesn’t have
natural crude oil deposits, you could start a business of importing crude
oil into your country.
13. Petroleum refinery-: In countries like Nigeria where lack of
functioning refineries is the major reason given for lack of affordable
fuel in the country despite the fact that the country produces crude oil,
you could set up a mini-refinery where petroleum products could be
refined.
14. Gold mining-: Another business idea for miners is gold mining.
Gold can be found in sizeable deposits in countries like Ghana,
Australia, South Africa, Mongolia, Dominican Republic, and Russia.
You could also start a business of buying and selling raw gold.
15. Business plan writing-: People who want to invest in the mining
industry may not be able to write their own business plan or conduct
feasibility studies by themselves. You could start a business of
conducting feasibility studies, marketing research, writing business plans
as well as business proposals.
16. Safety services-: Mining is a risky business. There are a lot of things
that could go wrong if proper safety precautions are not taken which is
why safety services are always needed in the mining industry. You could
start a safety consultancy business which provides safety services in the
mining industry.
17. Blogging/ Industry magazine-: There are several websites out there
that provide information for people who want to invest in the mining
industry or people who are already in the industry. A typical example is
mining.com. You could start your own blog or online magazine with
focus on the mining industry.

9. 18. Risk assessment services-: You could also start a business of
analyzing risks and possible problem areas for miners to avoid
landslides, spills, earth-quakes and several unfortunate occurrences that
have happened due to mining in the past.
19. Software development-: You could also develop and sell
software that would make mining easier.
20. Data mining-: The mining industry is not strictly for solid minerals
and oil deposits. There is something called data mining and it involves
helping companies search for data and analyzing them in order to help
them cut costs and increase revenue.
Mining Technique
Mining techniques can be divided into two
common excavation types: surface mining and sub-surface
(underground) mining. Today, surface mining is much more common,
and produces, for example, 85% of minerals (excluding petroleum and
natural gas) in the United States, including 98% of metallic ores.
Targets are divided into two general categories of materials: placer
deposits, consisting of valuable minerals contained within river gravels,
beach sands, and other unconsolidated materials; and lode deposits,
where valuable minerals are found in veins, in layers, or in mineral
grains generally distributed throughout a mass of actual rock. Both types
of ore deposit, placer or lode, are mined by both surface and
underground methods.
Some mining, including much of the rare earth elements
and uranium mining, is done by less-common methods, such as in-situ
leaching: this technique involves digging neither at the surface nor
underground. The extraction of target minerals by this technique
requires that they be soluble, e.g., potash, potassium chloride, sodium
chloride, sodium sulfate, which dissolve in water. Some minerals, such
as copper minerals and uranium oxide, require acid or carbonate
solutions to dissolve.

10. Process of Mining
Once the mineral is extracted, it is often then processed. The
science of extractive metallurgy is a specialized area in the science of
metallurgy that studies the extraction of valuable metals from their ores,
especially through chemical or mechanical means.Mineral
processing (or mineral dressing) is a specialized area in the science of
metallurgy that studies the mechanical means of crushing, grinding, and
washing that enable the separation (extractive metallurgy) of valuable
metals or minerals from their gangue (waste material).
Processing of placer ore material consists of gravity-dependent
methods of separation, such as sluice boxes. Only minor shaking or
washing may be necessary to disaggregate (unclump) the sands or
gravels before processing. Processing of ore from a lode mine, whether
it is a surface or subsurface mine, requires that the rock ore be crushed
and pulverized before extraction of the valuable minerals begins. After
lode ore is crushed, recovery of the valuable minerals is done by one, or
a combination of several, mechanical and chemical techniques.Since
most metals are present in ores as oxides or sulfides, the metal needs to
be reduced to its metallic form.
This can be accomplished through chemical means such
as smelting or through electrolytic reduction, as in the case

11. of aluminium. Geometallurgy combines the geologic sciences with
extractive metallurgy and mining.
MANAGEMENT
In the mining business the management most of management process is
tough and risk taking. Contractor shoulder the responsibility of making
strong public relation and other statutory compliances for smooth
operation of mines.
Hence HCL monitors each and every activity with records submitted by
contractor. For this purpose skeletal staffs of HCL are placed in mines.
So contractor maintains adequate spares , essential items, emergency
equipments etc. which has to be physically verified. Environment, health
and safety aspects are to be regularly monitored as well.
QUALITY CONTROL
With average quality of 0.95% Copper in ore, the desired quality of ore
indicated above would meet the requirement of concentration plant.
However, besides the penalty and bonus clause, HCL has to ensure
quality control, starting from planning to supply to the plant.
The conservation aspect would be the total responsibility of HCL so
that the contractor does not waste ore. These aspect have to be critically
assessed and monitored.
TRANSPORTATION
Ore from mine to concentration plant to mines in return trip is being
handled by trippers. Presently 15 trippers are in use.

12. MANPOWER
Total 354 workers besides 45 support staff for survey are present in
mine. Geology, Civil, filling operation, explosive magazine and
handling is carried out by these people. Another 100 are there
43employed contractually for electrical and mechanical maintenance. It
is planned such that maximum manpower is below 500.
CLASSIFICATION BASED ON ACTIVITY OR VOLUME
FIXED COST
The costs which do not change for a given period in spite of change in
volume of production are called fixed costs. Examples of fixed costs are
rent, taxes, salaries, depreciation, insurance etc. Fixed costs are normally
expressed in terms of time period e.g. per day, per annum etc. the
concept of fixed cost is associated with short run.
VARIABLE COST
Variable cost varies with the variation in output. They are a function of
output. Direct material cost and direct labour cost are generally variable
cost. Variable cost includes cost of raw materials, running cost on fixed
capital such as fuel, repairs, routine maintenance.
MIXED COST
Mixed costs are made up of fixed and variable costs. They are
combination of semi variable and semi-fixed costs. Because of variable
component, they fluctuate with volume, because of fixed component;
they will not change in direct proportion to output.

13. Calculation of different Cost
EXPLORATION COST
Air:
Aerial photography Rs.1000-2500 /km2
Photo interpretation 1500-2750/km2
Total 2500-5250/km2
GROUND:
Air Ground
Gravitational N/A Rs. 12,500-40,000/km
Electrical N/A Rs. 1500-2750/km
Magnetic Rs. 750-2000/km Rs. 5000-6500/km

14. BREAK EVEN CALCULATION
VARIABLE COST
Cost head Cost for 2 MT( in Rs ) Rs/tn
Annual explosive cost 1,85,00,000 9.25
Diesel, Petrol,
Lubrication
8,31,00,000 41.55
Stores and spares 1,00,00,000 55
Power 7,85,00,000 39.25
Repair and
Maintenance
4,21,00,000 21.05
Labour 59,00,00,000 295
Total 461.1
FIXED COST
Sl no Cost head Rs.
1 Equipment 4033050000
2 Haul Road 547800000
3 Buildings 816350000
4 Electrical
system
31800000

15. Calculation
Selling Price of Iron if given then,
BEP =
𝑇𝑜𝑡𝑎𝑙 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡−𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
BREAK EVEN CALCULATION OF SURDA MINES.
GENERAL DESCRIPTION
Indian copper complex (ICC) include six underground copper mines i.e
Mosabani, Pathargara, Dhobani, Kendadih, surda and Rakha in
Ghatshila area .These mines of the complex served by common services
from Mosabani as detailed below:
Electricity(power supply) and electrical workshop
Mechanical maintenance and workshop
Survey, geology, exploration, mine planning and quality control
Civil maintenance and drinking water supply
Hospital, civic amenities and transport
ICC has three concentrator plants in the area as follows:
Mosabani -2700 tpd capacity
TPSB -1000 tpd capacity
Rakha -1000 tpd capacity
The smelter complex at Maubhandar has several plants, comprising of,
Flash smelter
Electrolytic refinery

16. Nickel Sulphate recovery plant
Sulphuric acid plant
Precious metal recovery plant
This Maubhandar plant produced blister copper, cathodes, wire bar and
rolled products of copper along with sulphuric acid, nickel sulphate,
selenium, silver,gold etc. as by products. 30
BUDGETING AND COST CONTROL
The nomenclature and procedure employed in budgeting is prerequisite
to an understanding of cost estimation and cost control. Some of the
general terminology has been adopted in our cost examples, but
acquaintance with more of the details of the mine budgeting will assist
us in analyzing mine costs.
Table complies the elements of a typical budget, this for a mine.
Customary cost categories, broken down in direct and indirect mining
and other production costs, are tabulated for as many costs-profit centers
as desired and can be isolated. In this case, there are four: mine
development, mine exploitation, underground auxiliary and surface
auxiliary. The cost of equipment identified for each centre is on an
ownership and operating basis. Detailed cost entries are shown for
consumables, power and special items. An entire mine budget would
itemize all these costs for each centre in a complete computerized
tabulation, usually on both a total and unit cost basis, for the period
under consideration. Thus actual increased costs can be compared with
forecast budget costs and other cost estimates to provide the epitome in
cost control.

17. Mine Budget Format Cost items
Cost category Mining unit
development
(entry
driving).
Underground
auxiliary
operations.
Surface
auxiliary
operations.
Direct/
ownership cost
Equipment Equipment Equipment
Purchase
depreciation
Continuous
miner
Locomotives Shaft hoist
Interest charge Shuttle cars Mine cars Slope belt
Insurance, tax,
etc
Roof drill Jeeps, cars Bins, hoppers
Equipment
lease
Scoop tram Main conveyor Feeders
Equipment
rental
feeder Roof drill Trucks, cars
Total ownership Section
conveyor
Scoop trams Main fan
Cages Monitoring system
Direct/operatin
g cost
Consumable
supplies
Face fans Buildings
Repairs,
maintenance
Roof bolts Pumps Other structures
Consumable supplies Timber Waste disposal
Fuel, power Rock dust Consumable supplies
Lubrication,
hydraulics
Brattice cloth,
tubing
Track Consumable
supplies
Labor, benefits Miner bits Conveyor belt Plant supplies
Special Drill bits Timber, trusses Office supplies
Total operating Hand tools Roof bolts Safety supplies,
clothing

18. Total
exploitation
Miscellaneous Concrete blocks Training
materials
pipe Miscellaneous
Other mining costs Fuel power Rock dust
Prospecting Diesel fuel Hand tools Fuel, power
Exploration Electricity Miscellaneous Gasoline, diesel
fuel
Development Water Electricity
Total other Fuel, power Natural gas
Special Electricity Water
10 Indirect
cost
Freight Water Telephone
Administration Travel Compressed air
Clerical support Entertainment Special
Engineering Special Freight
Computing Freight Travel
consultants Travel Entertainment
Total indirect Entertainment
Total mining
Other production costs.
Reclamation (post mining)
Processing
Transportation
Union welfare
Royalties
Taxes
Total other
CONCLUSION
The entrepreneur with his vision and ability to bear risk can transform
the economic scene of the country. They play a vital role in initiating
and sustaining the process of economic development of a nation. The
overall aim of an entrepreneurial development programme is to stimulate
a person for adopting entrepreneurship as a career and to make him able

19. to identify and exploit the opportunities successfully for new ventures.
Practical and cost effective programs need to be developed to address
their needs because self-employed people will represent important
segment in economic revitalization. Entrepreneurship development is the
key factor to fight against unemployment, poverty and to prepare
ourselves for globalization in order to achieve overall Indian economic-
progress.