These can be entered for individual data points, to account for samples that may not abide by the standard QAQC rules. This means that the unnecessary elimination of data can be avoided, or that QAQC tolerances can be made stricter. Furthermore, this type of analysis is often being conducted in retrospect, by people who were not there during the actual event. In the absence of detailed operator logs, it can be difficult to know exactly what occurred in the plant at that time. It is important to note that if operator logs are available, they are often stored in random spreadsheets or on paper which is not easily accessible. Inventory accounting could be used if entity has a business objective of incurring cost to earn Mining Rewards and subsequently sells the earned rewards (Bitcoins) in ordinary course of business.
Traditional calculation method: Statistical data reconciliation (SDR)
- Reconciliation between individual plant areas can also be performed in a similar manner, for example, between concentrating, leach and refinery areas where there may be misalignment at either end of a boundary between areas.
- In addition to validating assay results, there are also many other potential applications where this procedure of comparing against a calculated dataset could be deployed.
- From manual spreadsheets through to custom software, it’s been slow and steady progress over decades.
- It takes a wide variety of the collected plant information and uses it as inputs in a simulation of the entire process plant that includes all flows, chemical reactions and inventory changes across a range of elements.
- There is no official guidance available on accounting for cryptocurrency mining business.
You can also monitor existing accounts and collect their data for a strategic process. This can then make it possible for your company to keep track of past purchases, identify the customers’ needs and demands, and make estimates for future collaborations based on all the gathered data. The other method of keeping stock provides that the greater portion of purchases are charged directly reconciliation definition to the account for the use of which they are intended, thus obviating the use of a stock ledger. Exception is made, however, in many cases, such as explosives, candles, timber, drill steel, tools, feed, hoists and parts, pumps and parts, crushers, rolls, vanners, jigs, elevators, etc., and their parts. In order to get at the true consumption in such cases, monthly inventories of these large items must be taken, the difference between stocks on hand at the first and last of a month, plus the purchases, representing the value of supplies used.
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Metallurgical accounting monitors and reconciles the flow of valuable metals within a process plant, addressing inputs, final product creation, tailings generation and changes in inventory. It necessitates accurate mass measurement, sampling and chemical analysis, considering the evolving conditions of the process over time (like varying flow rates, tank levels, ore grades, density and stream concentrations). Metal in does not equal metal out at a single point in time due to changes in inventory. MI’s core functionality powers metallurgical accounting, process optimisation and production reporting. On top of this, it has in-built world-leading capabilities around auditable reporting for direct and indirect GHG emissions, energy and water consumption – ideally suited to meet today’s evolving governance frameworks.
Advantages of the modern v traditional methods:
Reconcile with mining/geology dataThe modern approach to metallurgical accounting generates such a vast amount of data, such that it can be used to compare against other related datasets. The most prescient of these is the feed reconciliation process, where metallurgical accounting data is compared against the mass and grade information from the mine. For the fourth step, the cost sheet summary, it has been found to be a good method to letter the totals of the operating accounts on tracings ruled in columns, each column representing a month. This is made up and entered as a voucher also, the balance being charged into profit and loss account. This process has already been completed at multiple operations, where calculated metallurgical accounting data is compared against ROM data. These differences can then be used to investigate the source of deviations and validate the mining/geology sampling technique, as well as the estimation or measurement of bulk ore the entries for closing a revenue account in a perpetual inventory system chron com movements.
As well as being industry specific, dynamic systems exceed AMIRA P754 guidelines (as discussed later in this article), giving stakeholders complete confidence in their data. The real value with this technology is in the metallurgical accounting and process optimisation capabilities customised specifically to the chemistry and process dynamics of the plant. Another traditional approach to metallurgical accounting is to use a basic software solution using SDR as its calculation engine to reconcile measurement data from the process plant.
By comparing the measured result against the calculated result for each measure point we can determine the accuracy of the data in context of the process. The data is available to all users of the solution and does not require any configuration. If there is a significant and consistent deviation, the software can provide a suggested value that reflects actual plant performance based on data upstream and downstream in the process. The close correlation between the measured and calculated values suggests that assay results from the two sample points are accurate. This means the dynamic mass balance, based on measurements from across the whole process plant, indicated that the metal concentration in the CCD Train 2 underflow is consistently higher than that in CCD Train 1. This large amount of calculated data, generated from a mass balance where all data is connected, and based on actual measured plant data, can be used to compare against the original incoming time value of money explained to understand the time value of money plant data.
While some organisations are making great progress, others still rely on aging legacy systems and manual processes that make meeting metallurgical accounting requirements increasingly difficult. The inaccuracy and inconsistency of metallurgical accounting methods in the mining and minerals industry has been a widely discussed challenge for more than 30 years. To meet these governance requirements, metallurgical accounting practices will need to evolve to incorporate advanced technologies, real-time data acquisition and continuous improvement methodologies.
Best practice metallurgical accounting technologies available to the industry today, such as Metallurgical Systems MI Core® software, overcome the limitations of spreadsheets and traditional methods to meet AMIRA P754 and other evolving governance frameworks. Recognising the crucial role of accurate, auditable and transparent metal accounting data in the financial accounts of mining and metallurgical companies, it outlines a set of 10 standardised metal accounting practices for improved corporate governance. Figure 5 shows the measured and calculated metal concentration values in seven related plant streams over time. These streams can be used to conduct a mass balance over a set plant area, so should interact as such.
It could also be extended further upstream to provide validation to block modelling and even resource estimation. The modern approach to metallurgical accounting has already been applied in many different mineral processing plants, across a variety of processes and mineral types. Given that processing plants typically receive measured mineral resources for further beneficiation, the primary objective of mineral reserve estimation is to ensure the successful extraction and delivery of mineral resources for processing at the estimated grade. Mining reconciliation involves comparing estimates, such as mineral resource or ore reserve models, with measurement information or official production from a processing plant.