Costing for Tin Mine Operation

	Costing for Tin Mine Operation
	METHOD :  Open Pit Mining @ 50 mt (target) PER MONTH
	START UP COST
1	EXPLORATION
	Computer with Google Earth	7,000.00
	GPS	3,500.00
	Tools (machetes, hoes, chops, string etc)	1,000.00
	Handphone with line	2,000.00
	Camera	1,300.00
	Bore hole (estimate)	80,500.00
	Total (fix cost 1)	95,300.00
	4 wheel drive (hire purchase)	4,000.00
	Rental house for workers (near to Alor Setar office)	2,000.00
	Diesel	9,000.00
	Tol	1,500.00
	Miscellaneous	15,500.00
	Temporary accomodation	1,800.00
	Total (monthly cost 1)	33,800.00
2	APPLICATION
	Submission to PTG
	Fee to PTG	25,600.00
	Total (fix cost 2)	25,600.00
3	AFTER APPROVAL
	Deposit to JKR / JPS (if any)	40,000.00
	Deposit to MBI Kedah	5,500,000.00
	Total (fix cost 3)	5,540,000.00
	Documentations
	Mining Scheme	40,000.00
	Survey (depend on size of land)	85,000.00
	EIA (Environmental Impact Assessment)	75,000.00
	Total (fix cost 4)	200,000.00
4	SET UP PLANT
	Washing Plant
	Cabin for workers	15,500.00
	Palong x 1   (built)	95,000.00
	Total (fix cost 5)	110,500.00
	Machineries
	Gravel pump (rent)	50,000.00
	Excavator x 3 (rent)	80,000.00
	Backpusher x 1 (rent)	35,000.00
	Total (monthly cost 2)	165,000.00
	System
	Weighbridge and Systems x1	15,500.00
	Total (monthly cost 3)	15,500.00
5	Manpower
	General Manager	50,000.00
	Exploration / Operation Manager	7,000.00
	Excavator Driver x 2 @RM1,800	3,600.00
	Palong Operator 2 @ RM6.00 per hour x 8 hour x 22 working days	2,112.00
	Assistant Supervisor	1,800.00
	Cabin Operator	1,500.00
	Total (monthly cost 4)	66,012.00
6	Others
	Insurance	3,500.00
	Security	4,000.00
	Processing Site Rental (depends on site location)	5,800.00
	Total (monthly cost 5)	13,300.00
7	Variable Cost
	Royalti PTD (after sales)	68,000.00
	Road Tribute (depends on site location)	32,000.00
	Diesel for machineries	52,000.00
	Machine Repair and Maintenance	18,300.00
	Water Abstractcy ( depend on pond size)	5,300.00
	Total (monthly cost 6)	175,600.00
	TOTAL (FIX COST 1 - 5)	5,971,400.00
	TOTAL (MONTHLY COST 1 - 6)	469,212.00
		6,440,612.00
	Cost in 1st month	154,700.00
	Cost in 3rd month	611,512.00
	Cost in 4th month	6,119,712.00
	Cost in 6th month (and every month after that)	469,212.00
	Total	7,355,136.00
	Cost in 6 months	7,355,136.00
	SELLING PRICE @ RM45,000 (50 mt)  in 7 month	2,250,000.00
	SELLING PRICE @ RM45,000 (50 mt)  in 8 month	2,250,000.00
	SELLING PRICE @ RM45,000 (50 mt)  in 9 month	2,250,000.00
	SELLING PRICE @ RM45,000 (50 mt)  in 10 month	2,250,000.00
	ROI (in 10th month)	1,644,864.00
	Profit after 12th month (monthly)	1,780,788.00
	Mine life is another 12 months	21,369,456.00
	3 sites have been identified as having potential for development as tin mines.
	Site A
	Total area                                                      200 acres
	Reserves (estimated)                                        650 mt
	Revenue                                        650mt * RM45,000		RM 29,250,000
	Site B
	Total area                                                      350 acres
	Reserves (estimated)                                        800 mt
	Revenue                                        800mt * RM45,000		RM 36,000,000
	Site C
	Total area                                                      500 acres
	Reserves (estimated)                             800 - 1000 mt
	Revenue                                      1000mt * RM45,000		RM 45,000,000