Definition :- Break Even Stripping Ratio & Its Calculation

  BREAK EVEN STRIPPING RATIO (BSER) The point beyond which mineral / coal can not be economically extracted out. No Profit = No Loss BE...

 BREAK EVEN STRIPPING RATIO (BSER)

The point beyond which mineral / coal can not be economically extracted out.

No Profit = No Loss

BESR = Profit / Stripping Cost.

**Example**

The Sale value of iron ore from an open pit mine is Rs. 6500 per tonne. Cost of mining excluding stripping cost is Rs. 2450 per tonne, if the cost of stripping is Rs. 1150 per cubic meter, the Break Even Stripping Ratio is?

1. First Calculate Profit

   Profit = Sale value - Cost of mining (Do not include stripping cost)

   Profit = 6500 - 2450 = 4050

   Profit = 4050

2. Use Formula

BESR = Profit / Stripping Cost

4050 / 1150 = 3.52

BESR = 1:3.52