NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA-8

SESSION: END SEMESTER NOVEMBER 2019

B.TECH. V SEMESTER
SUBJECT –MINE ECONOMICS (MN 3005) DEPT.CODE - MN
FULL MARKS - 100
Duration of Examination: 3 Hours This question paper contains 1 page only

Answer any Five (05) questions. Figures in the right hand margin indicate marks.
Q.No. Marks
1. (a) Give the flow-chart for capital formation in a mining organization. (4)
(b) State Hoskold’s Hypothesis and derive an equation for the Present Value of Non-Deferred
(6)
Redemption Annuity.
(c) Give the comparison of mineral policies of India, USA, UK, Canada and Australia? (10)

2. (a) Derive the expression of (i) Economic Order Quantity (EOQ) and (ii) Optimum Level of
Stocking when the Demand is under risk from First Principle.
(4x2)
(b) What are the usual functions of wage administration department? (6)
(c) Distinguish between the following:
(i) Job Analysis vs. Operation Analysis (3x2)
(ii) Financial vs. Non-financial Incentives

3. (a) Discuss the different methods of storing, purchasing, accounting and dispatching. (12)
(b) Discuss in detail the Discounted Cash Flow (DCF) methods from first principle. (8)

4. (a) Describe the points to be considered in the formulation of National Mineral Policy. (8)
(b) Discuss different concept of Values while evaluating a Mining Project. (6)
(c) “International trade should be regarded as a special trade of inter-regional trade or perhaps as
Inter-local trade” --- Justify this statement with examples. (6)

5. (a) In a manufacturing co. the annual demand of corrugated boxes is 80,000. The cost of placing
an order is Rs.200/- and the inventory carrying cost is 20%. Taking the price per box is
Rs.20/- only and that the supplier offers 2% discount if 8,000 or more boxes are purchased
at a time and 4.5% discount if 16,000 or more are purchased in a lot. What should be the
(10)
ordering quantity? Should the co. accept the discount offer?
(5)
(b) Discuss the duties and responsibilities of a Purchasing Manager.
(5)
(c) Compare the merits and demerits of Time wage method over Profit sharing method.

6. (a) Discuss the different methods of sampling. How ore reserves are estimated? Discuss the
Extended Area method for ore reserve estimation. (10)

(b) A small private co. is consuming coal at an average demand of 1000 Tonnes in a year. The
standard deviation of demand per week is 200 kgs. Price of coal is Rs. 2000/- per tonne, the
ordering cost is Rs. 200/- per order and inventory carrying cost is 20%. The average lead
time is 3 weeks and maximum delay is 4 weeks with a probability of 20%. If the service
level is normally distributed with a probability of 95% (σ = 1.64), then work-out the desired
(10)
inventory level using P-system and Q-system.

***************************