technical, management & sustainable solutions for open-pit mines


61 Katherine Street

First Floor

South Africa


Secure file sharing

for customers

Login here

Founding partner:

Sarel Blaauw

+27 82 571 6627


Mining cost breakdown

Mining costs

Our core expertise is contributed by, amongst others, former contract mining specialists who have gained considerable experience in estimating, from first principles, the costs associated with open-pit mining applications – from 30 to 380 ton payload trucks, drill and blast, manpower requirements and taxes, to mobilization, amortization of capital equipment, overhead and markup – which enabled us to successfully procure multi-million dollar mining contracts.

Over the years Tacmin has refined this capability with the aid of project management software which we have integrated into mine design and scheduling software that enable us to generate budget forecasts, cash flow analysis, NPVs and IRRs of considerable detail. The aforesaid analysis contains unit rates per mining activity as well as the breakdown of every component that makes up the said unit rate.

Our vast data bases include mining costs, broken down into nut-and-bolt detail, free of calculation errors and based upon formal quotations obtained from equipment suppliers which can be exported into Excel spreadsheets for owner operator and contract mining in open-pit gold, platinum, PGMs, chrome, vanadium, iron ore, coal, manganese, diamonds, vanadium, cobalt and copper mines.

Since our core expertise involves design and construction management, budget forecasts are linked to mine designs, pushbacks and production scheduling, implying that all mining costs generated are budget ready and can easily be integrated into financial models and annual budget forecasts. Also integrated into our project management software is the capability to generate monthly payment certificates (inclusive of escalation) using measured quantities for ease of tracking.

Tacmin has a proven track record of fleet selections, trade-off studies and capital recommendations for numerous public listed mining organizations. Most of these were generated for board level decision making and implementation. On projects where unit rate negotiations with contract miners are necessary, Tacmin remains one of a select few companies that can generate accurate zero-profit margin estimates from first principles.

Capital recommendations​​​​​​​

Our considerable experience gained in fleet selection has taken us to projects where fleet selections were carried out for top-end size equipment such as RH400 shovels and Cat 797B trucks. Mining production ranging between 1.0 - 6,0 million ton per month are the norm on projects carried out to date and aforesaid equipment selections gave cause to capital recommendations made to numerous mining Clients.

Working closely with Tacmin, the customer also has the option to reduce capital expenditure, optimize cash flows and outsource risk of ownership through structuring off-balance sheet operating leases, thereby enabling the customer to focus on service delivery.

Prior to procurement, life cycle costing for owner maintenance is compared with maintenance and repair contracts (MARC) through a vigorous resource analysis, during which utilisation of filters, parts, components, lubricant, fuel, equipment hours, labour hours, etc, are generated according to LOM ore and waste production volumes.

Following the aforesaid analysis, Tacmin personnel will either work on behalf of, or provide assistance with procurement and purchase support. This comprises of tenders pertaining to structured finance, rentals, capital as well as the selected maintenance model.

Based upon more than three decades of experience gained in all facets of earthmoving equipment and contract agreements, Tacmin expertise has become sought after in the development and drafting of comprehensible, effective and practical maintenance contracts.

Solutions in alliance with our

associated companies

For 20 years Tacmin Madini expertise builds a sound reputation in supporting open-pit mining companies with technical support in all aspects relating to geology, engineering, production and contracting....

Tacmin work in association with infrastructure engineering contractors to offer the full range of specialist engineering, construction and asset management expertise. The core strength of our...

Tacmin Rafiki is a Sustainable Development Consultancy and Project Management firm that assists mining companies with the improvement of compliance to existing SDG's, research and identification, as well as...

We are ready to improve your business and help achieve expected success

Our practice areas