The paper presents an approach to evaluating a building throughout its whole life cycle in relation to its sustainable development. It describes basic tools and techniques of evaluating and analysing the costs in the whole life cycle of the building, such as Life Cycle Assessment, Life Cycle Management, Life Cycle Cost and Social Life Cycle Assessment. The aim of the paper is to propose a model of cost evaluation throughout the building life cycle. The model is based on the fuzzy sets theory which allows the calculations to include the risks associated with the sustainable development, with the management of the investment and with social costs. Costs incurred in the subsequent phases of the building life cycle are analysed and modelled separately by means of a membership function. However, the effect of the analysis is a global cost evaluation for the whole life cycle of the building.
The model for estimating the whole life costs of the building life cycle that allows the quantification of the risk addition lets the investor to compare buildings at the initial stage of planning a construction project in terms of the following economic criteria: life cycle costs (LCC), whole life costs (WLC), life cycle equivalent annual costs (LCEAC) and cost addition for risk (ΔRLCC). The subsequent stages of the model development have been described in numerous publications of the authors, while the aim of this paper is to check the accuracy of the model in the case of changing the parameters that may affect the results of calculations. The scope of the study includes: comparison of the results generated by the model with the solutions obtained in the life cycle net present value method (LCNPV) for time and financial input data, not burdened with the risk effect; the analysis of the variability of results due to changes in input data; analysis of the variability of results as a consequence of changing the sets of membership functions for input data and methods for defuzzification the result.
The issues discussed in the study mainly relate to the costs presented by the structure of positions. This study, on the example of the KGHM Polska Miedź SA mining company (three mining plants), examines the position and cost calculation structure relating to technological works, cost settlement and receivables between branches and mining plants. Cost comparisons were also carried out from the perspective of the organizational structure. The cost centers, registration and settlement of costs in the accounting records, i.e. SAPR3 were highlighted. In the course of the examination, a comparative analysis was carried out aimed at determination of common features and differences between the cost of technological works by their function in the technical cost of manufacturing. As a result of the analysis, it was determined that in the years 2000–2017, the cost structure based on the position function underwent changes. The changes occurred as a result of organizational and technical and geological and mining conditions. The cost analysis allows to identify the directions of specialization of the entity in the future. The basic operating activity of the mines concentrates on extraction. Due to copper extraction in the concession areas, the analysis was to evaluate the costs incurred in the KGHM Polska Miedź SA mining plants.
The corporate cost of capital is used by valuators to discount future flows of income from an entity in order to derive a present-day, forward-looking value of that entity. The cost of capital is therefore determined as the weighted cost of the various sources of funding, being typically equity, debt and preference instruments. The tricky and important part is estimating the cost of equity, which usually needs the application of finance models. The study on the texts on mineral valuation or mineral project evaluation demonstrates that the capital asset pricing model (CAPM) is a general model for estimating the cost of equity. However, according to shortfalls and problems relating to it a relatively similar and simpler model i.e. the single-index market model is proposed. The single index market model is an important tool in contemporary research in finance. Much of the importance of the model follows from its 'beta' parameter which, ideally, measures the sensitivity of returns on a security to changes in a market model. To estimate the cost of equity of the mining and cement companies listed in Tehran Stock Exchange (TSE) The single-index market model is selected because of the shortfalls and problems of the CAPM as well as the lack of commercial services for determining the market premium. The regression analysis as well as the statistical analysis is carried out using Excel spreadsheet. The statistic significance of the model is tested using t and F test statistics. The results showed that the independent variable (the rate of return on the market index) has a genuine effect on the dependent variable (the rate of return for the stock) and there is a statistically significant linear relationship between the two variables at significance level of 5%. Finally, the cost of equity formining and cement companies is estimated 25.0% and 31.0% respectively. Knowing the cost of equity, calculating the discount rate will not be very difficult.
The fact that mines have to be established at the place where they are located without having a chance to choose a location brings out area usage conflicts with areas that need to be protected. In fact, forestlands are most common in these overlapping areas in Turkey. In order to perform mining activities in this overlapping forestlands, mining enterprises in Turkey receive forest land permit fees (FLPF), reforestation fees, rehabilitation fees + security deposit of conformity to the environment (SDCE), and other fees. In order to determine the share of these costs in mining investments and operating costs (OC) and to bring a solution proposal so that these costs do not pose a risk of loss of the investment in the mining enterprises, questions have been asked to mining enterprises within Turkey using the “Survey Monkey” program. The averages of all forest fees determined from the answers are proportioned to the mining investment amounts (MIA) and the annual average OC of each mining company responding to the Survey.
Thus, the distribution criteria of different forest fees that are required to be paid by the mining enterprises in order to carry out mining operations in the forestlands in Turkey and their distribution on the basis of mineral groups were analyzed. In this calculation, it was suggested that all the fees in Turkey should be reduced to a more reasonable degree by suggesting solutions regarding the calculation method envisaged by the FLPF, which has a very high share. Otherwise, the result of these rates shows that the costs of forest land-use for mining stipulated by the legislation in Turkey are quite high compared to other countries, and that the current mining investments can have difficulty in maintaining their economic operability in the presence of these required costs.
This article presents a concept method which aids the forecasting of the reclamation cost in post- rock mining areas. The method may also prove useful in estimating the investment profitability of a mining operation at its planning stage as well as managing a potential Reserve Fund to cover future activities, such as land reclamation. The development of the method consisted in defining a set of basic/typical land reclamation directions and the typical structure of reclamation operations/works, which are based on “statistically stable” values. The estimations included the distribution of the probable cost of these works with respect to the reclamation direction and were calculated on the basis of the analyzed current price lists and historical land reclamation projects. The article proposes a method for estimating the cost structure of multi-directional projects by combining the basic directions. The changeability and predictability of various land reclamation solutions was analyzed in terms of fuzzy logic. A price list was developed, which included unit costs for separate types of reclamation works, independent of their type and scale. The assumed optimal measure involved comparing the cost of individual types of operations to the surface of the reclamation area. As an example, the method was also applied to hypothetical data from a clastic rock mine with a surface of 20 ha, and for the forest, agricultural and forest-agricultural reclamation directions. The forest-agricultural reclamation directions was presented in the proportions of 0.3:0.7.
Geothermal waters are a source of clean energy. They should be used in a rational manner especially in energyand economic terms.
Key factors that determine the conditions in which geothermal waters are used, the amount of energy obtainedand the manner in which cooled water is utilised include water salinity. Elevated salinity levels and the presence oftoxic microelements may often lead to difficulties related to the utilisation of spent waters. Only a few Polishgeothermal facilities operate in a closed system, where the water is injected back into the formation after havingbeen used. Open (with water dumped into surface waterways or sewerage systems) or mixed (only part of the wateris re-injected into the formation via absorption wells while the rest is dumped into rivers) arrangements are morefrequently used. In certain circumstances, the use of desalinated geothermal water may constitute an alternativeenabling local needs for fresh water to be met (e.g. drinking water).
The assessment of the feasibility of implementing the water desalination process on an industrial scale islargely dependent on the method and possibility of disposing of, or utilising, the concentrate. Due to environmentalconsiderations, injecting the concentrate back into the formation is the preferable solution. The energy efficiency and economic analysis conducted demonstrated that the cost effectiveness of implementing the desalinationprocess in a geothermal system on an industrial scale largely depends on the factors related to its operation,including without limitation the amount of geothermal water extracted, water salinity, the absorption parameters ofthe wells used to inject water back into the formation, the scale of problems related to the disposal of cooled water,local demand for drinking and household water, etc. The decrease in the pressure required to inject water into theformation as well as the reduction in the stream of the water injected are among the key cost-effectiveness factors.Ensuring favourable desalinated water sale terms (price/quantity) is also a very important consideration owing tothe electrical power required to conduct the desalination process
A significant part of hard coal production (15–19% in the years 2010–2017, i.e. 1.0–1.3 billion
tons per year) is traded on the international market. The majority of coal trade takes place by sea,
accounting for 91–94% of the total coal trade. The article discusses the share of coal in international
seaborne trade and the largest coal ports. Coal is one the five major bulk commodities (in addition
to iron ore, grain, bauxite, alumina, and phosphate rock). In the years 2010–2016, the share of coal
in international seaborne trade and major bulk commodities was 36–41% and 11–12%, respectively.
Based on the analysis of coal throughput in different ports worldwide, the ports with the
largest throughput include the ports of Qinhuangdao (China), Newcastle (Australia), and Richards
Bay (South Africa). For 2013–2017, their throughput amounted to a total of 411–476 million tons
of coal. The largest coal exporting countries were: Australia, Indonesia, Russia, Colombia, South
Africa, and the US (a total of 85% share in global coal exports), while the largest importers are
Asian countries: China, India, Japan, South Korea and Taiwan (a 64% share in global imports). In
Europe, Germany is the largest importer of coal (54 million tons imported in 2016). The article also
discusses the freight costs and the bulk carrier fleet. Taking the price of coal at the recipient’s (i.e.
at the importer’s port) into account, the share of freight costs in the CIF price of steam coal (the
price of a good delivered at the frontier of the importing country) was at the level of 10–14%. In
the years 2010–2016, the share of bulk carriers in the world fleet was in the range of 11–15%. In
terms of tonnage, bulk carriers accounted for 31–35% of the total tonnage of all types of ships in
the world. The share of new (1–4 years) bulk carriers in the total number of ships on a global scale
in the years 2010–2016 was 29–46%.
The article contains considerations on possible actions directed at increasing productivity of hard
coal mining industry. It is necessary to improve the state of the industry, and ensure its survival. Basic
definitions and measures concerning productivity and management were presented to illustrate examples
referring to a mining enterprise. Then, basing on organizing, one of the management functions, the issue
of productivity in a mining enterprise and its influence on improving effectiveness of operational management,
was analysed. An assumption was presented that solutions concerning identification of sources
and volume of costs, hitherto existing in mining enterprises, ought to be complemented with the planning
function following process approach. It can be the starting point for decisions of economic feasibility of
given deposits, seams or parts of them, before mining operations start, and to control incurred costs in
process approach. The article is summed up with a process algorithm of cost management.
The aim of the article is to present the selected results of analytical investigations concerning
possible directions of reducing the unit production costs in the mining company together with some
results of practical calculations. The investigations emphasize the role of the rate of utilising the
production capacity leading to reducing the unit production costs. The main component having an
essential influence on the unit production costs are the fixed unit costs. Two basic indices of a crucial
meaning for searching for possibilities leading to decreasing the unit production costs are assumed.
The first index (w1) is a measure of the rate of utilising the production capacity, the second one (w2)
concerns the fixed costs coincided with the unit of the production capacity. Theoretical considerations
concerning the mathematical modelling of the unit production costs as the values depending on the
rate of utilising the production capacity and the fixed costs coincided with the production capacity
unit, are presented in the first part of the paper. The rationalisation criteria of the mine unit production
costs are formulated. These criteria can constitute the elements of restructuring program for the mining
company. The calculation example with the use of the practical input data shows the impact of the
rate of utilising the production capacity on the mine unit production costs. In the example two variants
of annual working time are taken into account. Results of appropriate calculations are presented and
analysed in an aspect of reducing unit costs of production as a result of increasing rate of utilising the
mine production capacity.
The aim of the study carried out during 2002–2004 was to assess the effects and economic effectiveness of application of fungicides and insecticides in winter triticale crops. Its leaves were attacked by pathogenic fungi in 43.2% to 52.2% and the damage to leaf blade surfaces by cereal leaf beetle (Oulema spp.) ranged from 23.6% to 34.4%. The effectiveness of applied fungicides ranged from 44.7% to 90.8%, and that of insecticides was within 70.1% and 94.4%. The saved crops were evaluated for PLN 198 to 1 171 per ha. The cost coverage ratio ranged from 0.7 to 9.9 and the treatment profitability index ranged from 0.9 to 7.4. Cost index in percentage ranged from 0.8 to 8.5, with its average value of 4.2.
Methane is accompanied by most of the coal deposits. The methane hazard is excessive content of this gas in the mining excavations. This is a source of high risk security and continuity of the mine. The Piast–Ziemowit is the only non-methane mine in the Polish Mining Group. In 2015, 66,4% of the coal mined in Kompania Węglowa S.A. mines comes from methane coal seams. Methane drainage is the most effective but very costly method of combating methane hazard.The costs of prevention and eradication of methane hazard is charged to the costs of coal mining. Therefore, performance of methane drainage in the mines of the Polish Mining Group is adapted to the scale of the methane hazard. The article presents an analysis of the costs of prevention of methane hazard for mines with different absolute methane and its impact on the level of these costs.
One of the most important business areas of the company is the management of working capital. Energy companies that produce electricity and heat are the main consumers of steam coal, so their decision concerning stock levels is a major determinant of supply schedules. These decisions depend on legal and technical requirements as well as economic aspects. The seasonality of coal consumption jointly with pre-purchase costs and storage costs has a straight impact on delivery scheduling in a parabolic way. There is a divergence in expectations regarding delivery schedules among the coal market participants (energy, mining, transport companies). The purpose of this article is to present the concept of pricing of steam coal and transport service on the Polish market, assuming the use of price incentives, resulting in delivery scheduling during the year. The article presents selected theoretical content in the field of coal logistics and working capital management in the company, the expectations of the steam coal market participant regarding delivery schedules have been identified. The proposed concept of pricing steam coal and transport service should be discussed further in scientific and expert work.
The problem of research undertaken in the article concerns the adaptation of traditional models of calculating the cost of capital to the specifics of mining companies. Solutions known from the literature do not give reasonable results. This is due to the uniqueness of the activities of mining companies, in which case we are dealing with a lack of reference to the typical market situations. The aim of this article is to identify solutions that allow rational and reliable results to be obtained. One of the proposals is a modified Fama-French method. The article was tested by calculating the cost of capital in the largest Polish mining enterprises. The problem of calculation of the cost of capital is particularly important in the area of assessing the effectiveness of investment projects. The cost of capital is used as the discount rate in dynamic measures of performance, such as NPV.