CIM I=M CAPCOSTS A HANDBOOK FOR ESTIMATING MINING AND MINERAL PROCESSING EQUIPMENT COSTS AND CAPITAL EXPENDITURES AND AIDING MINERAL PROJECT EVALUATIONS BY ANDREW L. MULAR and RICHARD POULIN CIM SPECIAL VOLUME 47 (Updaterexpancion of CIM Special Volumes 13,18 and 25) CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM ‘Xerox Tower, 12103400 de Maisonneuve Blvd W. Montreal, Quebec, H3Z 388, Canada—CaRCOSTS Page CAPCOSTS CIM SPECIAL VOLUME 47 Update of CIM Special Volumes 13, 18 and 25 ISBN 0-919086-72.2 4. Capitavequipment Cost Estimation, Evaluation -CIM Volume 47. 1 Mular, Andrew L. Poulin, Richard IV. Canadian institute of Mining, Metallurgy and Petroleum \V. Tile: CAPCOSTS. COPYRIGHT (1998) BY. CANADIAN MINERAL PROCESSORS DIVISION OF ‘CANADIAN INSTITUTE OF MINING, METALLURGY AND PETROLEUM ‘Xerox Tower, 1210-3400 de Maisonneuve Bivd. W. ‘Montreal, Quebec, #32 388, CAPCOSTS Page PREFACE From 1995 to 1997, major mining and mineral processing equipment prices were gathered Under the general auspices of the CAMIRO-MPD (Metallurgical Processing Dvision of the ‘Canadian Mining. Industy Research ‘Organization formery known as MITEC, the Mining Industry Technology Counel of Canada), tre Canadian Mineral Processors Divsin of CIM, the Metal Mining Division of CIM and CANMET to revise and updste CIM Special Volume 25 Dublched in 1862, CIM Volume 25 Rl a revision of CIM Special Volumes 13 (1972) and 19 (1978) and ls based on a course developed in 1978 by Professor Mula, with the bile Mining {and Mineral Processing Equipment Costs and Preliminary Capital Cost Eatiaions ‘This newest update is effectively @ handbook for (1) estimating costs of mining/ineral ‘Processing equipment, fr (2) estimating capital expenditures and for (2) aiding mineral project Sratuadons, The handbook 's entitled CAPCOSTS. It incorporates addtional equipment and ‘Secons dealing wth mineral economics and project evaluation techniques, ‘Al data in CAPCOSTS have been analyzed by statistical methods unless stated otherwise, tt must bo emphasized that the costs herein are not exact costs; they cannot be Considered a8 quotes from any single manufacturer/supplier. ‘Sample calculations are shown at the begincng of each secton relevant to major equipment tosling ond, where appropriate, an explanation of data presentation is provided. A secton Conta various rues of thumb which may be Useful for rough estimates when ater data are Capt expenditures are estimated by means of ether ratio methods or updated costicapacty tnethods Geveloped by O'Hara and others, O'Hara's technique to estimate total product costs Teewise employed in updated format. Mineral project evaluation techniques are reviewed and corresponding applications are presented in a realistic manner, while stint features of ore depost evaluation methodology fre reexamined, |ACAPCOST computer program can be purchased 96 a separate tem, Users ofthis manual wil find thatthe computer program reduces estimation ime significantly.‘CAPCOSTS Page w ACKNOWLEDGEMENTS. We wish to expross our appreciation to the major equipment frms, supelers, engineering Consuiting fims and others who have contrbuted to th's handbook by ether supplying or vetfying cost information. ‘The compilation, analysis and drafting of al data was performed by the folowing individuals under general supervision: Mr Haytham Hodaly, Technical Assistant Mr Paul Bialkewice, Technical Assistant Mz Keaneth Stobbe, Technical Assistant ‘They deserve our thanks on behalf of sponsoring organizations. This andbook was. sponsored by CAMIRO (the Canadian Mining Industy Research Organisation formery known as MITEC), the Canadian Mineral Processors Division of CIM, the Metal Mining Division of CIM ané CANMET. CAMIRO dlsbursed funds colected from these ‘organizations and from the folowing lndvidual sponsors: CambiorIne., Centre de Recherche Mineraies (CRM) and Cominco Lid. Special thanks are due to Or. Bryn Harts, who initiated interest and financial suppor for CAPCOSTS through MITEC, Mr. Ray MacDonald of CANMET, Secretary of CMP, who encouraged support by CANMET, Mi. Mike Muiar, Chairman of CMP. who speatheaded suppor by the Canadian Mineral Processors, and Mr. Rick Zimmer, Charman ofthe Metal Mining Dision, who maintained corresponding intrest in support from Metal Mine, We are especialy appreciative of the technical assistance provided by the chavman of CAMIRO.MPD, Me. Art Winckers of Teck Corporation, Vancouver, British Columbia. His ciical ‘comments were most relevant tothe completion of ths handbook Continued interest, assistance and encouragement from members and affilates ofthe mining and mineral procsesing industry was most welcome. In particular, we wish fo thank Mi. John ‘Scott Fluor Oanie! Wright) and Mr Stu Jones (SvedalaIndustios) for thelr technical assistance ‘and advice Compilation of cost data was performed wile atthe Department of Mining and Mineral Process Engineering, Universiy of Betsh Columbia, Vancouver, 8. C. The assistance of Mr. Gordy \Lagore and'Mrs. Marina Lee, Departmental Secretares, was grealy appreciates, APCOSTS Pagev ABSTRACT ‘This handbook containg. data in the form of graphs, tables and equations fer the rapid etmation of the pce ofan em of major equipment used inthe mining and miners processing Induaty, ‘Gata. colectad from varlous sources are fied by means of non-linear estimation to the equation, Price = aX, where X is a suitable parameter 9. motor horsepower, and a and b fare appropriate constants, Equipment cost data are employed for various purposes, such as {or the preliminary estimate of te fixed capital cost of a mineral processing plan Examples tae given fo llusate the caleulation of Key parameters that determine cost. To uodate a cost item, the MES(Mine/Ml) index is employed CCopital cost estimation procedures, based orginally on the work by O'Hara (CIM Bulletin, February, 1980) and_by Balfour and Pappuciyan (Annual Meeting, Canacian Mineral Processors, January, 1972, Ottawa, Canada), are presented in the form of tabs. The former has been employed for open pit mines, underground mines and processing plants |The latter has been used for green fed (grassroots) and battery Imi (le, @ crushing pland processing plants, where an estimate of major equipment costs s necessary ‘A prelminary total capital cost estat i useful in several ways. Fist, process engineers are Sue to determine rapidy whether suflent funds are. svalable for a proposed rocessingimining method: second, where total product costs (le., operating, costs) of Stematives are similar, a prabminary total captalcost estimate ais in final selection; third, {otal capital costs are utlae to establish economic ctria, such as cash flows and senaitvty Gata, that are 20 necessary fot overall project evaluations. Recent methodology coveloped by ‘Camm (US Bureau of Mines) for pefeasibilly evaluations based on quickie cost estimates is ‘Summarized for stations where specie design parameters may not be avaliable. ine Mil total product cost estimation, patiomed after Hara, is incorporated and a bret ‘section on revenue estimation i offered Capital and Operating cost estimation for small deposits (CANMET SP 86-11E) and small placer mines (USM IC 9170) is discussed, Mineral project evaluation techniques are described and corresponding reallstlc applications are provided Important feature of ore depost evaluation methodology are reviewed. ‘Cost information was employed to construct a windows-based computer program, called CAPCOST, thats menu driven. I performs otherwise tedious calculations, whie the HELP menu serves as a prompt for novices. A copy of the program can be purchased separataly ftom the CAPCOSTS manuel, The software package comes with security protecion required torun the sotware,