Abstract: In this paper,Fenghuangshan Mining Company which has problems of superfluous staves,old equipment,high energy consumption and low efficiency has been taken for example to analyze the problems on the operation and management in old mining enterprises.Focusing on those problems,the organic integration of budget management and performance appraisal has been proposed.And technical measures including quantitative assessment of cost,control of production cost,and control of waste to reduce ore dilution have been applied to strengthen cost assessment.Besides,feasible method that every department strengthens their own production process to control cost has been formulated to put forward functional management turning to process management.In addition,project management mode of EPR has been used to achieve the dynamic management of financial business integration and get the purpose of strengthening management,reducing cost and increasing efficiency.All of these indicate that the organic integration of budget management and performance appraisal can enlarge the economic benefits of old mining enterprises.And these methods have a certain reference value and significance to other old mining enterprises to effectively enhance the level of business and financial risk control.