Drilling and blasting are an essential part of most mining operations, and are commonly major operating cost centres. The effectiveness of blasting can have a significant influence on all subsequent activities, and hence overall operating costs. Drilling and blasting systems must be compatible with the overall mining method, to minimise total costs and ensure operational efficiency. Selection of suitable equipment and techniques requires an understanding of the total operation, plus current skills in specialised technologies. This paper examines the contribution of drilling and blasting to total costs, including the balance between capital and operating costs. The use of computer modelling is discussed, to demonstrate how blast performance and costs can be predicted and alternatives analysed. Case studies illustrate how cost savings can be made in operating mines, and alternative systems evaluated to optimise new projects.