Costs may have gone up some. But also efficiency has pulled ahead.
Tons per man-day were 1 in 1930.
They were five to ten tons of ore per man-day in 1990. This is not as operative in small mines.
Inflation calculator from 1930 to 2006 -- What cost $1 in 1934 would cost $14.27 in 2005.
Gold is now 622 X 1.12 = 701 CDN. Factor is 20.03/14.27 = 1.40 So there is a 40% advantage to gold mining today over 1934.
But environment costs and permitting times are increased. Add 25% to costs. So advantage is only 12.3%. But tonnage per man has increased by 5 times, so labour being 60% of costs, that is an effect of 3 times the ore. However grade comes down at higher dilution to perhaps 1/2 conservatively, so effect is only 1.5 times. So we are (1.123 X 1.5)= 1.68 times better off, or 68% cost advantage to mine gold today.
The equation is more complex as there is an effect on capex but some industrial capex is higher than inflation figures give, others are lower, and energy is a separate but surprising equation as machine efficiency has changed for the better and more flexibility of machinery is a difficult ponderation. Basically material handling methods allows less cost per ton today.
1939 Mine Closures
¬ 1939 --New Gold Clauses Act passed.
¬ Eustis mine, Quebec, closed permanently.
¬ Export of copper, lead, zinc and various other metals and minerals prohibited without licence.
¬ September 1, German army invades Poland.
¬ September 3, Germany and Great Britain at war.
¬ September 10, Canada declared war against Germany.
¬ Income Tax amendment afforded tax credit to mining industry as a whole.
¬ Tyranite mine, Matachewan district, Ontario, came into production in June.
¬ Ronda mine, Sudbury district, Ontario, produced from January to August.
wildcatresources.ca
scroll to "1939 Mine Closures" on the left. There are about 12 pages of wartime closures etc..
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