Method to Calculate Operating Expenses (OPEX) for Production of Alumina

Hi Friends,

In present post, we will discuss the methodology to arrive at manufacture cost (Opex) of calcined alumina with certain basic assumptions and considered issue price of input materials-

The above tabular data fairly gives the idea about the consumption pattern of various input  materials, utilities and services required for producing  calcined alumina in Alumina refinery and elaborate method to estimate the manufacture cost of calcined alumina. With indicated assumptions, the manufacture cost works out to US$174.60 per tonne of calcined alumina.  Here, the figure does not include the financing charges on capital investment. It is evident from above presented data that cost towards mining and transportation of Bauxite accounts for about 25% of manufacture cost of calcined alumina. It is advised not to take the calculated figure on face value as the manufacture cost varies from plant to plant depending on the landed price of raw materials and other variants. Please put your views / suggestions / remarks / comments, if any. 


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Regards.

Rajendra Kunwar