Expenditure policy of a mining company in changing geopolitical settings
Kaung Pyae Aung1, 2, E.I. Gorelkina3, 4, E.K. Abdulaev5, N.A. Mishenina5
1 Science and Technological Research Center Pyin Oo Lwin, Mandalay, Myanmar
2 National University of Science and Technology “MISIS”, Moscow, Russian Federation
3 RUDN University named after Patrice Lumumba, Moscow, Russian Federation
4 Sergo Ordzhonikidze Russian State University for Geological Prospecting, Moscow, Russian Federation
5 Baltic State Technical University named after D.F. Ustinov, St. Petersburg, Russian Federation
Russian Mining Industry №3 / 2023 р. 143-153
Abstract: In the context of the sanctions pressure, the main objective of the expenditure policy of the mining industry is to increase the efficiency of its operations while optimising its value. The study analyses the main factors affecting the expenditure policy of a mining company. It describes the value-based management methodology that applies the Activity-Based Costing (ABC) and the Deming Cycle tools from PDCA to develop a value-based management system to continually improve the operational efficiency and to reduce costs. Application of these tools jointly to manage mining operations is a powerful instrument that is both efficient and easy to use. The featured example of using these methods showed the model's ability to generate a bottomup baseline cost budget, identify and understand sources of cost variation and suggest possible solutions within a continuous improvement cycle. The model is not only applicable to underground mining, but can easily be adapted to any other mine or plant operation. An innovative methodology of value-based mining management is presented that is effective and easy to apply in a dramatically changing geopolitical environment.
Keywords: budgeting, expenditure policy, industrial enterprises, mining industry, budget policy analysis, value-based management
Acknowledgments: This publication was supported by the RUDN University Grant Scheme, Project No.202233-2-000 (N.2). For citation: Kaung Pyae Aung, Gorelkina E.I., Abdulaev E.K., Mishenina N.A. Expenditure policy of a mining company in changing geopolitical settings. Russian Mining Industry. 2023;(3):143–153. https://doi.org/10.30686/1609-9192-2023-3-143-153
Article info
Received: 03.05.2023
Revised: 22.05.2023
Accepted: 28.05.2023
Information about the authors
Kaung Pyae Aung – Cand. Sci. (Eng.), Doctoral Candidate, Information Technologies and Computer Sciences Laboratory, Science and Technological Research Center Pyin Oo Lwin, Mandalay, Myanmar; College of Information Technologies and Computer Sciences, National University of Science and Technology “MISIS”, Moscow, Russian Federation; e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Evgeniya I. Gorelkina – Junior Researcher at the Scientific and Educational Center for Interdisciplinary Research and Environmental Management of the Institute of Ecology of the RUDN University named after Patrice Lumumba, Moscow, Russian Federation; Assistant, Sergo Ordzhonikidze Russian State University for Geological Prospecting, Moscow, Russian Federation e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Eldar K. Abdulaev – Assistant, Baltic State Technical University named after D.F. Ustinov, St. Petersburg, Russian Federation; e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Natalia A. Mishenina – Senior Teacher, Baltic State Technical University named after D.F. Ustinov, St. Petersburg, Russian Federation
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