The level of extraction depends largely on fluctuations in the demand for coal. In the autumn and winter periods, there is an increased demand for mining products, often exceeding the capacity of the mines. During this time, mines supplement production with previously stored goods. This is very important from the point of view of mine economics, as storing coal and maintaining a stockpile generates lower financial outlays than seasonally increasing production. The fixed costs of the installed fixed assets used for extraction are very high, and “cranking up” production does not make sense in the long run. On the other hand, it is obvious that the mass of the stockpile cannot be increased indefinitely, as at a certain point the fees incurred for its maintenance will exceed the benefits of storage. In order to conduct optimal warehouse management, a staff of marketing employees performs long-term and current analyses of the coal market. Thanks to this, they can determine the mine’s extraction level and its structure, depending on the requirements of customers and market trends.
The article comes from the magazine “Logistyka” 1/2003.