Diagnostic Test - Mining Engineering II

general geology

In the valuation of a mine, which of the following information is the least relevant?

capital and operating cost

general geology

metal prices

mineable reserves

Continuous compounding

It refers to the continuous compounding of earned interests and principal at any given time.

Continuous compounding

Simple compounding

Discrete compounding

None of these

EITI

What is the agency set up by government, civil society, and the private sector to promote transparency in reporting payments to government by mining companies?

BIR

EITI

COA

MICC

Planimeter

t is a n instrument used to calculate the area of a cross-section of an ore body or areas bounded by topographic contours. 

Planimeter

Transit

Pantograph

GPS intrument

Keyboard

Which of the following is an input device?

Printer

Keyboard

Monitor

All of the above

Trenching

 

Which of the following is not a geophysical method of exploration?

gravity survey

Resistivity

seismic survey

Trenching

Interruptible load program

It is a system that allows owners of private generators to operate their plants during power situation.

BOT

Feed-in-tariff

Interruptible load program

Portfolio standards

P4,527.63

If P6,500 will be needed after 5 years, how much should be invested now if the interest rate is 7.5% per annum compounded annually?

P4,062.53

P4,527.63

P4,253.63

P4,657.83

CAPEX

The annual investments that a company make is known as _____. 

OPEX

EBIT

EBITDA

CAPEX

RA 6969

Which of the following is otherwise known as the toxic substances, hazardous and nuclear waste control act of 1990?

RA 7979

RA 6969

RA 4274

PD 463

High hardgrove index

Which of the following improves the marketability of a low-ranking coal?

High Moisture

Ultra low sulfur content

Low heating value

High hardgrove index

Methane

What gas naturally occurring in coal mines is now being tap for power generation?

Carbon monoxide

Methane

Carbon dioxide

None of these

the mineable ore reserves mineable by open pit have already depleted

What was the main reason for the shutting down of the Benguet-Dizon Copper Mine?

the mineable ore reserves mineable by open pit have already depleted

concerns associated to labor rights

lahar flows due to nearby volcano

concerns associated to indigenous rights

bankable feasibility study

What is the study that should be submitted to support a loan application?

pre-feasibility study

bankable feasibility study

technical feasibility study

cost estimate

Assets

It refers to the resources of economic value owned by business entities which are used in generating income from operations.

Management

Overhead

Interest

Assets

Option 5

essential conclusions and introduction

Which of the following should be present in the Executive Summary of a Feasibility Study?

brief historical background

brief geology of the deposit

introductory information

essential conclusions and introduction

P 10,000.00

Heritage Holdings Ltd. Declared stock options for all its mining engineers during its stockholders meeting in 1995 at a price half the par value of Ρ 10.00 per share. The mine Superintendent purchased 1,000 shares of stock at said price option. Three (3) years later, he sold all his shares of tock at Ρ 15.00 per share. How much profit (before tax) did he realize?

P 5,000.00

P 10,000.00

P 15,000.00

P 20,000.00

Milling

Which of the following is a variable cost in a mining operation?

Milling

Security

Medical

Safety administration

Accounting rate of return

It is the simple, or average, rate of return if the project.

Accounting rate of return

Discounted cash flow rate of return

Return on assets

Internal rate of return

It leads to higher core recovery

Why are large hole diameters preferred in drilling for evaluation purposes?

It is more rapid

It leads to higher core recovery

It is less costly

None of these

overall political stability

Large multinational companies often hire well known political analysts as consultants to evaluate country risks. What do they focus on?

geology

overall political stability

world metal prices and demand

none of these

P100.00 per ha

How much is the occupation fee for mineral reservations?

P500.00 per ha

P400.00 per ha

P250.00 per ha

P100.00 per ha

Added to the net income

When determining the total cash flow from operations during the year, depreciation is:

Added to the net income

Subtracted from net income

Disregarded

None of these

All of these

Which of the following is excluded in determining a company's EBITDA? (Earnings before income tax, depreciation and amortization)

Amortization

Income tax

Depreciation

All of these

1016 meters

Philex Mining purchased belt for its cablebelt haulage system at its Padcal Mine in Benguet. Each belt is wound on separate coils for easy handling and transport. If each set of coil is wound on a wooden core 61.0 cm in diameter and the final coil diameter is 3.0 meters, what is the total length of the conveyor belts purchased by Philex?

1016 meters

1116 meters

1216 meters

1316 meters

Financial cost of capital

What is the cost of raising money by borrowing, or issuing bonds?

Financial cost of capital

Opportunity cost of capital

Economic cost of capital

Shadow cost of capital

Because it is the right thing to do

Why should you quit your job if your employer is engaged in activities detrimental to public interests, such us bloating ore reserves to push the stock market upwards?

To avoid involvement in controversy

To ensure solid public relations

Because it is the right thing to do

To avoid criticism from peers

Mine ventilation system

Which of the following aspects of a mining system should a mine superintendent prioritize to avoid explosion in a gassy coal mine?

Drilling and blasting system

Mining method

Transportation system

Mine ventilation system

Drilling is much more costly than other methods

Why is drilling done only after conducting other operations such as geological mapping, geochemical surveying and geophysical surveying?

Drilling takes longer time to complete

Drilling is much more costly than other methods

Drilling is environmentally intrusive

All of these

Ensure that the tailings disposal system is properly designed and maintained

If you were asked to revive the Marcopper operations as the Resident Manager, what would be your immediate top priority?

Ensure that the tailings disposal system is properly designed and maintained

 

Provide cheap power to all the towns in Marinduque

Ensure that the equipment are in good condition

Ensure that the community does not protest against the operation

interest ratio

It refers to the ratio of earnings from an investment and the amount invested for a specified period.

equity ratio

interest ratio

quick ratio

current ratio

all of the above

Formerly low grade non-commercial gold deposits have become viable in spite of lower gold prices mainly because of:

additional government incentives

technological advances

increased global demand

all of the above

It facilitates the designing process

Mine design can be done by hand or by using a Computer Aided Design (CAD) system. Which of the following describes the reason why this software is extensively used in the industry?

It is a popular choice in the industry

It facilitates the designing process

It automatically corrects wrong data

It can substitute management decisions

Whittle 3D or 4D

Which of the following is the most widely used mine planning software applied in pit optimization?

Gemcom

Datamine

Whittle 3D or 4D

Lerch Grossman (standard)

Service life

It refers to the actual number of years that an asset is kept and maintained.

1/1

Depletion

Service life

Eonomic life

Obsolescence

sensitivity analysis

In a feasibility study, the quantitative effects of varying factors such as metal prices, mine capacities, operating costs, capital costs, on the overall feasibility of the project are often shown. What is the process of determining such relationships called?

environmental scan

sensitivity analysis

pre-feasibility study

none of these

Environmental Impact Statement

What is the main document that needs to be submitted and approval prior to the issuance of an Environmental Compliance Certificate in an environmentally-critical area?

Concession Application

Project Description

Environmental Impact Statement

None of these

Promote the rights of indigenous people

What was the main reason behind the legislation of the IPRA law?

Economically support NGOs that promote indigenous people

Provide jobs for indigenous people

Prevent mining in ancestral lands

Promote the rights of indigenous people

4 x 6 inches

A hardwood timber is used as post to support and average load of  20,000 lbs., 5 feet high. If the timber has a compressive stress of 900 psi, what would be the ideal size of timber post most economical for the purpose?

8 x 6 inches

8 x 10 inches

4 x 6 inches

6 x 6 inches

Anthracite

Which of the following rank of coal can be turn into smokeless and colorless briquette by a simple mechanical process?

Anthracite

Lignite

Sub-bitumunus

Bituminous

environmental protection costs

What cost item must now be internalized and made part of the operating cost to reflect the company's commitment to sustainable development?

environmental protection costs

taxes

government royalties

depreciation

coal

Which sector of the mining industry will be most adversely affected by a strict implementation of the Kyoto Protocol?

base metals

precious metals

coal

industrial minerals

reject the property

An exhaustive evaluation of a mining project shows among others the following: reserves of 100 million tons mineable by open pit at a stripping ratio of 1:1; copper grade of 1%; 100 million dollars of capital investment needed; and a net present value of minus ten million dollars. What will you recommend?

acquire the mine

reject the property

do further studies

none of the above

Accelerated depreciation

Which of the following is an incentive that enables mining companies to reduce their tax liabilities?

Accounting depreciation

Accumulated depreciation

Accelerated depreciation

None of these

Chromite

It is commonly found in an ultramafic environment.

Chromite

Chalcopyrite

Hematite

All of these

accounting rate of return

Which method of evaluating a mining venture does NOT consider the time value of money?

accounting rate of return

discounted cash flow

internal rate of return

net present value

Municipal Mayor

Under the local Government Code, who approves small scale mining permits?

MGB Regional Director

Provincial Governor

Municipal Mayor

DENR Secretary

President

highly leveraged

A project with a very high debt-to-equity ratio is one that is:

highly liquid

highly profitable

highly leveraged

none of these

Net present value

What best measures the total value of a mine?

Net present value

Total reserves

Total cash flows

Total production

all of these

Which of the following can affect the feasibility of a metal mine?

volume and grade of reserves

capital and operating costs

metal prices

all of these

Positive profit

It refers to the present worth of future earnings less the present value of expenditures needed to bring a mine in operation:

Mine valuation

Present value

Positive profit

Purchase price

Statement of Assets and Liabilities

 

The value of real estate owned by a mining company is reflected in the annual_______.

Cash flow statement

Profit and loss statement

Statement of Assets and Liabilities

All of these

Hurdle rate

It is the main acceptable rate of return that vary from company to company. 

Hurdle rate

Internal rate of return

Cash flow

Net present value

zero profit

What does breakeven mean?

negative profit

positive profit

zero profit

windfall profit

Lignite

Which of the following coal ranks has the highest moisture content?

Anthracite

Lignite

Sub-bituminous

Bituminus

Option 5

Chief Accountant

Who is ultimately responsible for the financial statement about a mine?

Chief Executive Officer

Chief Accountant

Chief Financial Officer

Board of Directors

It has not been able to compete against cheaper imported coal

Which of the following describes the main reason behind the decline of the Philippine coal mining industry?

It has not been able to compete against cheaper imported coal

Government incentives are inadequate

The market has declined

None of these

81 has.

What is the area covered by one (1) meridional block used in designating exact geographical locations of mineral claims to avoid overlapping?

51 has.

81 has.

71 has.

91 has.

Diorite

Which of the following geological rock formation will you rule out the presence of a coal seam?

Shale

Sandstone

Limestone

Diorite

Optimum cut-off grade

It is a grade at which the mineral extracted result into maximum profit. 

Brea-even cut-off grade

Assay Value

Optimum cut-off grade

All of these

Detailed feasibility study

Which of the following study is required before a final investment decision is made?

Conceptual feasibility study

Detailed feasibility study

Preliminary feasibility study

Scoping study

plane table and alidade

What do you call the survey instrument that uses a plane table installed on a tripod with a transit that directly plots actual distances and bearings of survey stations?

theodolite

direct reading Brunton compass

global positioning system or GPS

clinometer

plane table and alidade

Super gene enrichment

Which of the following process typically leads a high grade zone to appear underneath the copper deposit's oxidized portion?

High grading

Salting

Super gene enrichment

None of the above

proved mineral reserves

Under PMRC guidelines, what would you classify the results just after the completion of closely spaced drilling in a porphyry copper deposit?

mineral reserve

indicated mineral resource

inferred mineral resource

proved mineral reserves

all of the above

 

Which of the following is a web browser?

Opera

Safari

Microsoft Edge

all of the above

south-clockwise

What is the reference point in reading an azimuth?

north-clockwise

south-clockwise

north-counterclockwise

south-counterclockwise

1160 pesos per ton

You manage a small high grade (3%) copper operations at a capacity of 100 short tons per day at 300 days per year. Your mill recovery is 90% and your selling price is US $ 1.00 per pound of copper net of smelter charges. If your fixed costs total 30 million pesos per year what should you average annual variable cost per ton to be in order to break even, assuming 40 pesos per dollar?

2160 pesos per ton

1160 pesos per ton

2000 pesos per ton

1000 pesos per ton

Ash analysis

Which of he following coal properties is not shown in a proximate analysis?

Ash content

Ash analysis

Moisture content

Calorific Value

Anthracite

What is the highest rank of coal?

Anthracite

Lignite

Bituminous

Sub-bituminous

Azimuth

The angle which a certain line makes with the meridian, measured clockwise is called?

Meridian

True meridian

Bearing

Azimuth

Uranium

It emits the least amount of greenhouse gas when used in a power plant. 

Oil

Natural Gas

coal

Option 4

Uranium

Steaming coal

What type of coal is used primarily for its heating value?

Metallurgical coal

Steaming coal

Coking coal

None of these

all of these

Which qualities should a Filipino mining engineer have to be globally competitive? 

computer literate

proficient in English

technically competent

all of these

assets

It refers to the resources of economic value owned by business entities which are used in generating income from operations.

overhead

management

interest

assets

profit spread

LAN

What is an office-wide interconnection of computers is called?

LAN

WAN

Global internet

Gateway

When it is extracted and used in power plants

Which of the following is the most effective scheme to make methane in a coal mine an asset?

When it is left underground

When it is extracted and used in power plants

When it is extracted and released into the atmosphere before mining is done, thus preventing gas explosions

When it is flared ad converted into carbon dioxide

Threat of nationalism

A foreign company wishes to explore a new mining project, which of the following political risks must be taken into consideration?

Insufficiency of data

Marketability of product

Selling price of product

Threat of nationalism

Feed-in-tariff together with RPS, Green Energy option, Net-metering

What strategy was established by the government to make renewable energy appealing to investors in power generation?

Wholesale electricity spot market

Feed-in-tariff together with RPS, Green Energy option, Net-metering

Bilateral contracts

Build-operate-transfer

Vertical

How will you best position your holes to explore a deposit that lies horizontally?

Inclined at steep angle

Inclined at shallow angle

Horizontal

Vertical

third quadrant

On which quadrant is a 30-degree azimuth located?

first quadrant

second quadrant

third quadrant

fourth quadrant

Barite

Which of the following is used primarily in the drilling business to prevent blow-outs because it is a heavy inert material?

bentonite

Fuller's earth

Barite

fluorspar

Facilitate repetitive work

Which of the following is the most important use of computer in a mine?

Increases reserves

Substitute for human judgement

Facilitate repetitive work

None of these

iPhone X

Which of the following is not an operating system?

iPhone X

Windows 10

MacOS Big Sur

Linux

Financial or Technical Assistance Agreement

The 1987 Philippine constitution makes it possible for fully-owned foreign companies to participate in the Philippine mining industry through a:

Mineral Production and Sharing Agreement

Financial or Technical Assistance Agreement

Service Contract

Mineral Agreement

Arsenic

When mining luzonite and enargite, Lepanto's copper concentrate had to be roasted to remove the: 

Sulfur oxides

Sulfur

Mercury

Arsenic

depreciation

Which of the following is not a variable cost?

raw material

royalty

fuel

depreciation

pyrite and chalcopyrite have similar responses in an IP survey

The results of an Induced Polarization (IP) survey in a pyritic copper deposit need to be validated by other surveys primarily because:

geophysical surveys are not as reliable as geochemical surveys

IP surveys are unreliable

pyrite and chalcopyrite have similar responses in an IP survey

all of these

Digitize relevant and useful data so they can be utilized

You have been tasked to evaluate an old mine using a modern mine valuation software? How ill you handle old data?

Discard all of them as they are no longer compatible with your device

Do a separate manual evaluation using old data

Digitize relevant and useful data so they can be utilized

Do all of these

All of the above

A 4-D optimization software in mine planning produces which the following?

mineable reserve

stripping ratio

economic analyses (DCF-ROI, payback period, etc)

All of the above

100%

In FTAA, a foreign company's beneficial ownership of a mining operation is allowed up to ______.

1/1

40%

60%

100%

None of these

80 meters

What is the minimum depth of a vertical shaft that has to be driven to reach a 45 degree dipping orebody which outcrops at elevation 1,400 meters, if the shaft collar is located about 100 meters from the outcrop (measured horizontally) but an elevation of 1,380 meters?

70 meters

80 meters

50 meters

60 meters

None of the above

Which of the following are not advantages of computerization that a mining engineer can get?

speed and convenience

accuracy and reliability

views in two and three dimensions

None of the above

excise tax

It is a government tax paid by operators upon the extraction of mineral products.

excise tax

income tax

value added tax

mine waste and tailings tax

tax credits

84.6%

An LHD machine worked 500 hours a month, was under repair for 100 hours, and on stand-by for 50 hours. What was the shovel’s physical availability?

83.3%

84.6%

76.9%

90.9%

Depreciation

Which of the following accurately describes non-cash cost?

Depreciation

 Administrative

Taxes and Royalties

Marketing

Salt domes

Which of the following can only be found in highly arid regions?

Salt domes

Limestone

Coal

All of these

The difference between net gross income and operating cost

Which of the following bet describes the net present value of a mine?

The sum of all future net earnings

The difference between net gross income and operating cost

The difference between the total investments and future net cash flows discounted over time

None of these

Overhead cost

All operating costs other than cost of raw materials and direct labor.

Semivariable costs

Total costs

Variable cost

Overhead cost

5 hectares

What is the maximum area of a quarry permit?

20 hectares

81 hectares

5 hectares

4 hectares