COST ANALYSIS BY MACRO-PROCESSES AND ACTIVITIES IN UNDERGROUND MINING USING THE ABC SYSTEM

Underground mining requires management systems capable of accurately assigning and controlling operating costs because of the complexity of its production and support processes. The objective of this study was to analyze the cost structure by macro-processes and activities in an underground mine located in Arequipa, Peru, through the application of the activity-based costing (ABC) system. The research followed a quantitative, applied, and non-experimental approach under a case study design. Operating and accounting information for the months of April and May was organized into macro-processes, cost centers, and activities, and was complemented with Pareto analysis to identify the main cost drivers. The results showed that the total cost for the period amounted to US$ 3,735,286, with a marked concentration in the mine macro-process (63%) and in administration (14%). Likewise, a small set of activities was found to account for most of the cost: in the mine, extraction activities and auxiliary services represented 76% of mining costs; in administration, activities related to safety, maintenance, occupational health, environment, and accommodation accounted for 75% of administrative costs. It is concluded that the ABC system improved cost traceability, identified critical activities, and generated useful information for cost control, operational optimization, and decision-making in underground mining.