Zeta Mining, one of the biggest manufacturers in the world's of metallurgical coal, manages a number of mines in the Bowen Basin, Australia, Central Queensland. The company has invested about AU$8 billion in the region. The overburden of rock, soil and other geological waste must be removed, before pulling the coal, and draglines, which are imported from America and assembled on site, requiring a substantial investment in money and time normally do this.
Zeta Mining Walking the Dragline Harvard Case Solution & Analysis
In 2012, Zeta's chief financial officer tasked the Bowen Basin job evaluation manager to determine whether to "walk" one of the 3,400-tonne draglines six kilometres to another mine or to use external contractors to remove that mine's overburden. To do so, the manager was required to perform an incremental comparison evaluation using net present value methodology. The CFO will later on make utilize the analysis and any other factors that are applicable in making a final decision. Author Scott McCarthy is associated with University of Queensland.
PUBLICATION DATE: February 06, 2014 PRODUCT #: W13607-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
Related Case Solutions & Analyses:
Jim Lander at Thamesford Logistics
Walt Disney case
Ardian – The Sale of Diana
Business of Golf: Islington Golf Club
Pricing Strategy
Yantra: Financing Energy Service Companies
Stuyvesant Town – Peter Cooper Village: America’s Largest Foreclosure
Securities Trading: Front, Middle, and Back Office
The Trouble with Lenders: Subtleties in the Debt Financing of Commercial Real Estate
Misaki Capital and Sangetsu Corporation
