Uranium-Mining Practices and Costs at Ten Salt Wash Lease Operations of Union Carbide Nuclear Co. Page: 6
Mining costs were obtained from the 10 operators for as near the same
period of time as was practical and over a period long enough so that the
costs would be representative. Most lessees do not have elaborate systems of
cost accounting and keep books on a cash basis. Many buy their supplies in
small quantities as needed and make their book entries at the time the bills
are paid. Of the 10 cost breakdowns given in this circular, 8 are for con-
current periods of 12 to 15 consecutive months. Cost accountings for the
other two operations cover shorter periods but are representative. The dif-
ference in the inventories of supplies at the beginning and end of each ac-
counting period was too small to have real significance in the average unit
costs. The small-mine operator is becoming more aware of the need for keeping
good cost records, not only to compute taxes but also to have an accurate
financial picture of his venture.
The direct development costs per ton as shown on the cost sheets given in
this report are based on "dead work" payments made by the lessor to the lessees
for development work completed. Development work for which the lessees are to
be paid must be authorized in advance by company engineers and must be 6 by 7
feet in section unless the mine is in a cleanup stage. A heading driven along
a seam of average-grade ore less than 18 inches thick is classed as development.
The company furnishes all pipe, track, and timber. The following are develop-
ment-work rates paid by Union Carbide Nuclear Co. in 1957.
Item and specifications Rate
1-compartment, without timber..................per foot $8.00
1-compartment, timbered................,...... do. 10.00
7 by 7 feet, without pipe or track............. do. 11.00
7 by 7 feet, with pipe and track................ do. 15.00
6 by 7 feet, without pipe or track............. do. 10.00
6 by 7 feet, with pipe and track......... ... do. 14.00
4 by 6 feet, without pipe or track...............do. 8.00
4 by 6 feet, with pipe and track............... do. 10.00
Exceeding minus 120, including pipe and track., do. 15.00
Aimed as required.............................. do, .25
3-piece, lagged and blocked.....................per set 6.50
The lessees did not make book entries for the value of their services;
therefore, it was necessary to add an appropriate charge to the cost break-
downs to account for their labor and supervision. This charge was $500 per
month for 8 of the 10 operations; $600 per month was charged for the largest
of the 10 mines and $450 per month for the smallest. In the larger mines the
principal job of the lessee was supervision, and the charge (less than 20 per-
cent of the total labor cost) was entered against supervision. In the smaller
mines, where the lessees had smaller crews and engaged more directly in ore
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Dare, W. L. Uranium-Mining Practices and Costs at Ten Salt Wash Lease Operations of Union Carbide Nuclear Co., report, 1959; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc170712/m1/12/ocr/: accessed March 22, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.