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Modern Mining ›› 2025, Vol. 41 ›› Issue (07): 235-239.

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Economic Benefit Analysis of Processing Mine Business of a Mining Company

  

  1. Anhui Masteel Mining Resources Group Co.,Ltd.
  • Online:2025-07-25 Published:2025-08-27

Abstract: To address the decline in production capacity and economic efficiency,and to ensure sta‐ ble output and financial performance,a mining company purchases non-mainstream ores to carry out pro‐ cessing business. Taking Dongshan Concentrator as a case study,it analyzes how fluctuations in raw materi‐ al prices,processing costs,and the mix ratio between self-mined and processed ores affect economic re‐ turns,and establishes a dynamic economic evaluation model. The research highlights the importance of ore blending in the concentrator’s production process and points out that the current cost allocation method fails to accurately reflect actual resource consumption and synergistic benefits. To tackle these issues,the study proposes building a market price analysis model to manage risks,optimizing ore-blending ratios,and inno‐ vating business models. It applies a break-even analysis model to guide operational decisions,adopts a vari‐ able cost separation method to improve cost accounting,derives the optimal mixing formula for self-mined and purchased ores,and promotes a "trade + base" toll-processing model. Under this model,professional trading companies handle procurement,sales,and risk management,while mines focus on production and earn processing fees. Research findings show that implementing these strategies not only generates direct economic benefits but also significantly improves the output and recovery rate of self-mined ores,thereby enhancing overall production efficiency. This systematic approach offers an effective solution for resource�declining mining enterprises seeking to improve economic performance.

Key words: economic benefits, raw materials procurement, processing cost, feeding ratio