Courtnell Mining Corp. is a new company that has been formed to mine for nickel in Northern Ontario. The ore body is estimated to contain 100,000 tonnes of pure nickel for which the world price is $15,000 per tonne. The costs of mine development are estimated to be $80,000,000.
Required
Calculate the costs that would be charged against the nickel production in the form of amortization on a per-tonne basis. Estimate any costs you think should also be included. Do not include the costs to mine and refine the ore, or shipping and selling costs.