DBPapers
DOI: 10.5593/sgem2017/53/S21.072

OPTIMIZATION MODEL OF COSTS APPLICABLE IN MINING INDUSTRY OF SLOVAK REPUBLIC

T. Pavlik, M. Tausova, M. Shejbalova Muchova, L. Domaracka, E. Augustinova
Wednesday 13 September 2017 by Libadmin2017

References: 17th International Multidisciplinary Scientific GeoConference SGEM 2017, www.sgem.org, SGEM2017 Conference Proceedings, ISBN 978-619-7408-10-2 / ISSN 1314-2704, 29 June - 5 July, 2017, Vol. 17, Issue 53, 579-586 pp, DOI: 10.5593/sgem2017/53/S21.072

ABSTRACT

Costs in mining and extractive enterprises is a critical factor for competitiveness. The reason is enormously expensive equipment and technology associated with this type of business. It is therefore necessary to identify the so-called critical cost type, not only in enterprise but also in the entire industry of the country. Slovak Republic, calculated on an area, belong to one of the world’s mining superpowers and take leading positions in mining of selected types of raw materials [6]. Mineral resources are the basis of production in metallurgy, electrical, chemical, construction and other industries [11]. Mining and processing of most Industrial minerals and Construction materials essentially cover domestic consumption. Article is based on data from the study, which was conducted at the national level, of the Slovak Republic from 2013 to 2016 as well as from the cost items of extractive and mining enterprises, which were processed in context of the cost research for all mining enterprises in the Slovak Republic. Using principle of Pareto analysis and regression models is possible to determine the scientific basis for fundamental management decisions in which area the cost optimization (in other words the Cost management) is needed to implement. Designed optimization model will help to improve the competitive environment and higher efficiency [13] of the mining and extractive industry in Slovakia. Model can be used as part of the strategic cost management to define long-term business objectives within a complex system of cost management. The aim of model designed is to contribute to the systemic cost reduction of extractive and mining enterprises in Slovakia with a view to increasing the liquidity of these companies and improve their position in the competitive environment. As the mining industry is a unique industry in terms of “expensive” for machinery and technological equipment, this model can provide significant support for functioning of Slovak extractive and mining companies.

Keywords: cost management, optimization model, costs, mining, Slovak republic