# Distribution of Operating Costs Along the Value Chain of an Open-Pit Copper Mine
## 5 Conclusions  
This study aimed to provide a detailed analysis of the distribution of operating costs along the value chain of an open-pit copper mine, with a particular focus on identifying key areas for cost reduction and their implications for operational efficiency and strategic decision-making in mine planning. The following findings emerged from the analysis:  
* Comminution, particularly milling, accounted for 59.08% of total OPEX, with crushing representing an additional 10.99%. Together, these units accounted for nearly 70% of total OPEX, highlighting community as one of the most energy-intensive and costly operations in mining. Furthermore, flotation accounted for 7.74% of total OPEX and 9.95% of mineral processing OPEX;
* Drilling and blasting contributed 3.35% and 4.21% to total OPEX, respectively. Additionally, drilling accounted for 15.09% of total mining OPEX, and blasting OPEX was notably high, representing 18.97% of total mining operating costs, exceeding the industry benchmark associated with blasting OPEX, primarily due to the significant expenses related to explosives and accessories;
* Hauling accounted for 8.99% of total OPEX. In addition, it represented 40.52% of total mining OPEX, slightly lower than the typical industry benchmark range for surface mining operations unlikely due to short transport distances between mine and processing facilities, resulting in lower fuel consumption and maintenance costs. In contrast, loading represented 4.88% of total OPEX and 21.98% of total mining OPEX;
* Other mining operations, such as stockpiling, accounted for 0.19% of total OPEX and 0.86% of mining OPEX. Blending contributed 0.57% of total OPEX and 2.59% of total mining OPEX. This study provides valuable insights into the distribution of operating costs across the value chain of an open-pit copper mine, specifically focusing on internal operational costs from blasting to flotation. By identifying key cost drivers within mining operations, the paper offers a detailed cost breakdown that can inform strategic mine planning and resource allocation decisions, ultimately contributing to improved operational efficiency and sustainability. The findings also contribute to the literature by providing real-world data on cost distribution in a sedimentary-hosted copper mine, filling a gap in existing research on cost distribution for strategic mine planning. This research is particularly relevant for mine operators, financial analysts, and decision-makers aiming to optimize operational costs while ensuring sustainable resource utilization. Finally, this research paper lays the foundation for future studies that should consider the following:  
* Incorporating additional mineral processing units, such as dewatering, tailings disposal, and extractive metallurgy, as well as external factors like transportation, environmental management, and reclamation for a more comprehensive description of costs along the value chain;
* Conducting a sensitivity analysis on energy costs, equipment efficiency, and production rates to enhance the robustness of the current findings, especially under varying operational and market conditions;
* Extending the analysis to other commodities and geographical locations for a generalized profile of cost structures available in various surface mining operations;
* Exploring the potential impact of renewable energy integration, automation, and mine-to-mill optimization strategies on cost structures to identify new avenues for enhanced operational efficiency and reduced costs. Conceptualization, H.L.M., B.H. and F.K.M. ; methodology, H.L.M., B.H. and F.K.M. ; validation, B.H., F.K.M. and J.K.K.K. ; formal analysis, H.L.M., P.M.F. and J.K.K.K. ; investigation, H.L.M. and F.K.M. ; resources, H.L.M., B.H. and P.M.F. ; writing--original draft preparation, H.L.M. ; writing--review and editing, H.L.M., B.H., F.K.M., P.M.F. and J.K.K.K. ; visualization, H.L.M. and P.M.F. ; supervision, B.H., F.K.M. and J.K.K.K. ; project administration, B.H. and P.M.F.