103R-19Intermediate11 min read

Project Code of Accounts — Mining

A beginner's guide to the code of accounts for mining projects — the coding system structured around a mine's distinct areas: the pit or underground mine, the process plant, tailings, and the supporting infrastructure that remote sites demand. Built on AACE International RP 103R-19.

What this standard adds

The general principles from Lesson 2 carry over; what changes is the top-level structure. A mine isn't one homogeneous facility — it's a collection of quite different sub-projects, and the code of accounts must keep them separable so each can be budgeted and controlled on its own terms.

How mining projects are coded

  • Mine / pit — The open pit or underground mine — earthworks, mining fleet, development. Very different cost drivers from the plant.
  • Process plant — Crushing, grinding, and recovery — equipment-driven, much like a process plant (Lesson 4's logic applies here).
  • Tailings & water — Tailings storage and water management — large civil works with their own cost and risk profile.
  • Infrastructure — Roads, power, water supply, camp, ports — the often-huge supporting works remote mines require.

A mining code, field by field

FieldExampleMeaning
Area20Process plant
Sub-area / facility240Grinding circuit
Discipline / commodityMECMechanical
Cost typeMMaterial

Putting it to work

For a mining project, build the code of accounts around the distinct areas — mine, plant, tailings, infrastructure — give infrastructure and owner's costs proper visibility, and align it with how the study estimate (scoping/PFS/FS) was structured. The result is controls data that lets each very-different part of the mine be managed on its own terms.

Nine things to remember

  1. 103R-19 tailors the code of accounts to mining — structured around the mine's distinct areas.
  2. A mine is several different sub-projects under one budget — keep them separable.
  3. Top-level areas: mine/pit, process plant, tailings/water, infrastructure.
  4. Each area has different cost drivers — earthmoving, equipment, civil — don't lump them.
  5. The plant area echoes the process code (Lesson 4) — equipment-driven.
  6. Infrastructure is not an afterthought — on remote mines it can rival the mine and plant.
  7. Capture owner's costs and sustaining capital explicitly — easy to under-code.
  8. Align with the study estimate (scoping/PFS/FS) structure for clean comparison.
  9. One code, many industries — general principles, mining's many-area structure.

Glossary

Code of accounts (mining)
Cost coding structured around a mine's areas.
Infrastructure
Roads, power, water, camp, ports supporting the mine.
Life-of-mine
The full operating horizon of the mine.
Mine / pit
The open-pit or underground extraction area.
Owner's cost
The owner's own project costs (teams, permits, studies).
Process plant
Crushing, grinding, and recovery facility.
Sustaining capital
Capital spent over the mine's operating life.
Tailings storage
Facility for processing residue — major civil works.

Check your understanding

1103R-19 provides a code of accounts for which sector?
2A sector-specific code of accounts improves: