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2010 Coal Cost Guide

Development Series
Number 1 Updated November 2008

The Cost of Site Preparation


Scott Stebbins
Aventurine Mine Cost Engineering, Inc.

At almost every project, sites must be Ground Cover


excavated, leveled, and prepared for buildings, Brush is cleared by bulldozer and chipped on site.
leach pads, storage or processing tanks, When present, trees range from 6 to 18 inches (15
impoundments, and a host of other facilities. To to 46 centimeters) in diameter. They are cut by
prepare these sites, vegetation must be removed, chainsaw, and the stumps are grubbed with a
soil must be scraped aside and stockpiled, rock (if bulldozer.
present) must be drilled and blasted, and the
underlying foundation material (whether it’s rock, Topsoil
gravel, sand, silt, clay, or common earth) must be Topsoil, when present, is 3 feet (0.9 meter) thick
excavated, transported, placed, leveled, compacted, and is excavated, transported, and stockpiled by
and sometimes graded. bulldozer. The topsoil is stacked immediately
At projects where characteristics are clearly downslope of the leveled site.
defined, the costs of preparing these sites can be
estimated using itemized cost engineering Excavation
techniques. However, preliminary estimates at Foundation material is excavated, transported,
projects sites for which information is lacking may placed, and leveled by bulldozer. Rock is drilled
be approximated by referencing cost models for and blasted prior to excavation. Sites are leveled
theoretical projects with similar characteristics. by cut & fill techniques. Material from above the
Costs for a variety of theoretical site site is moved and placed below the cut as
preparation scenarios are presented in the illustrated in the following:
following tables. An assortment of situations has Wherever possible, material is transported
been evaluated to illustrate differences in costs due directly down gradient from above the final site
to variations in site lengths and widths, side slopes, grade to below it to maximize bulldozer blade
ground cover, topsoil thicknesses, and the efficiency. The angle of the cut slope is assumed
characteristics of the underlying site foundation to be similar to the angle of repose of the fill slope.
material.
The following assumptions are common to the
models:

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Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE 1
Site Preparation As a consequence, the models contain no
Material is placed in lifts and compacted as each allowances for a contractor’s profit nor do they
lift is complete. Machines used for compaction include costs for transporting workers to and from
are appropriate for the type of material, and after the site. Costs for site preparation projects in
the final lift is compacted the site is graded. which the work is contracted can be as much as
Because the type of equipment used to prepare 12 percent (for the largest projects) to 80 percent
sites is very often the same as the type used for (for the smallest projects) higher. The listed costs
mining, it is assumed in the models that the work are, in essence, the cost to an operator if mine
will be accomplished by the mine operator as part equipment and workers are used to prepare the
of the project development work. sites.o

Excavated Material - Sand & Gravel

No Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 410 $ 700 $ 1,280
60 ft. x 200 ft. (18 m. x 60 m.) 1,300 2,200 5,030
100 ft. x 300 ft. (30 m. x 90 m.) 4,670 9,900 17,500
150 ft. x 400 ft. (46 m. x 120 m.) 10,700 17,400 55,000
400 ft. x 500 ft. (120 m. x 150 m.) 98,800 254,000 712,000

No Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,790 $ 2,360 $ 3,960
60 ft. x 200 ft. (18 m. x 60 m.) 4,710 6,210 12,100
100 ft. x 300 ft. (30 m. x 90 m.) 12,100 18,900 33,500
150 ft. x 400 ft. (46 m. x 120 m.) 24,700 34,600 86,600
400 ft. x 500 ft. (120 m. x 150 m.) 141,000 330,000 830,000

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2 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.
Excavated Material - Sand & Gravel
(continued)

Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 490 $ 800 $ 1,470
60 ft. x 200 ft. (18 m. x 60 m.) 1,510 2,470 5,690
100 ft. x 300 ft. (30 m. x 90 m.) 5,230 10,800 19,000
150 ft. x 400 ft. (46 m. x 120 m.) 12,300 19,000 58,400
400 ft. x 500 ft. (120 m. x 150 m.) 105,000 265,000 734,000

Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,870 $ 2,460 $ 4,150
60 ft. x 200 ft. (18 m. x 60 m.) 4,920 6,480 12,700
100 ft. x 300 ft. (30 m. x 90 m.) 12,700 19,800 35,000
150 ft. x 400 ft. (46 m. x 120 m.) 26,300 36,100 90,000
400 ft. x 500 ft. (120 m. x 150 m.) 147,000 341,000 853,000

Excavated Material - Common Earth

No Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 390 $ 660 $ 1,210
60 ft. x 200 ft. (18 m. x 60 m.) 1,220 2,040 4,650
100 ft. x 300 ft. (30 m. x 90 m.) 4,280 9,000 16,000
150 ft. x 400 ft. (46 m. x 120 m.) 9,730 15,900 49,800
400 ft. x 500 ft. (120 m. x 150 m.) 88,600 228,000 637,000

No Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,770 $ 2,320 $ 3,890
60 ft. x 200 ft. (18 m. x 60 m.) 4,630 6,050 11,700
100 ft. x 300 ft. (30 m. x 90 m.) 11,700 18,000 32,000
150 ft. x 400 ft. (46 m. x 120 m.) 23,800 33,200 81,400
400 ft. x 500 ft. (120 m. x 150 m.) 131,000 303,000 756,000

Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 470 $ 760 $ 1,400
60 ft. x 200 ft. (18 m. x 60 m.) 1,430 2,310 5,310
100 ft. x 300 ft. (30 m. x 90 m.) 4,840 9,860 17,500
150 ft. x 400 ft. (46 m. x 120 m.) 11,300 17,400 53,200
400 ft. x 500 ft. (120 m. x 150 m.) 94,600 239,000 659,000

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Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE 3
Excavated Material - Common Earth
(continued)

Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,840 $ 2,420 $ 4,080
60 ft. x 200 ft. (18 m. x 60 m.) 4,840 6,330 12,400
100 ft. x 300 ft. (30 m. x 90 m.) 12,300 18,900 33,500
150 ft. x 400 ft. (46 m. x 120 m.) 25,400 34,600 84,800
400 ft. x 500 ft. (120 m. x 150 m.) 137,000 314,000 778,000

Excavated Material - Silt and Clay

No Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 480 $ 860 $ 1,630
60 ft. x 200 ft. (18 m. x 60 m.) 1,580 2,810 6,730
100 ft. x 300 ft. (30 m. x 90 m.) 5,920 13,500 24,800
150 ft. x 400 ft. (46 m. x 120 m.) 13,800 24,100 79,000
400 ft. x 500 ft. (120 m. x 150 m.) 132,000 350,000 1,010,000

No Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,860 $ 2,520 $ 4,310
60 ft. x 200 ft. (18 m. x 60 m.) 4,990 6,820 13,800
100 ft. x 300 ft. (30 m. x 90 m.) 13,400 22,500 40,800
150 ft. x 400 ft. (46 m. x 120 m.) 27,800 41,200 111,000
400 ft. x 500 ft. (120 m. x 150 m.) 174,000 425,000 1,130,000

Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 560 $ 960 $ 1,820
60 ft. x 200 ft. (18 m. x 60 m.) 1,790 3,080 7,390
100 ft. x 300 ft. (30 m. x 90 m.) 6,480 14,300 26,300
150 ft. x 400 ft. (46 m. x 120 m.) 15,400 25,600 82,300
400 ft. x 500 ft. (120 m. x 150 m.) 137,000 361,000 1,030,000

Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,940 $ 2,620 $ 4,500
60 ft. x 200 ft. (18 m. x 60 m.) 5,200 7,090 14,500
100 ft. x 300 ft. (30 m. x 90 m.) 13,900 23,300 42,300
150 ft. x 400 ft. (46 m. x 120 m.) 29,400 42,800 1114000
400 ft. x 500 ft. (120 m. x 150 m.) 180,000 436,000 1,150,000

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4 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.
Excavated Material - Rock

No Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,040 $ 2,280 $ 6,500
60 ft. x 200 ft. (18 m. x 60 m.) 3,050 8,580 15,800
100 ft. x 300 ft. (30 m. x 90 m.) 11,700 23,900 58,600
150 ft. x 400 ft. (46 m. x 120 m.) 23,300 51,800 180,000
400 ft. x 500 ft. (120 m. x 150 m.) 219,000 657,000 2,070,000

No Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 2,420 $ 3,940 $ 9,180
60 ft. x 200 ft. (18 m. x 60 m.) 6,460 12,600 22,800
100 ft. x 300 ft. (30 m. x 90 m.) 19,200 32,900 74,600
150 ft. x 400 ft. (46 m. x 120 m.) 37,400 69,000 212,000
400 ft. x 500 ft. (120 m. x 150 m.) 262,000 733,000 2,190,000

Topsoil - Brush Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 1,120 $ 2,380 $ 6,690
60 ft. x 200 ft. (18 m. x 60 m.) 3,260 8,850 16,400
100 ft. x 300 ft. (30 m. x 90 m.) 12,300 24,800 60,100
150 ft. x 400 ft. (46 m. x 120 m.) 24,900 53,400 183,000
400 ft. x 500 ft. (120 m. x 150 m.) 225,000 668,000 2,090,000

Topsoil - Tree Covered


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) $ 2,500 $ 4,040 $ 9,370
60 ft. x 200 ft. (18 m. x 60 m.) 6,670 12,900 23,500
100 ft. x 300 ft. (30 m. x 90 m.) 19,700 33,800 76,100
150 ft. x 400 ft. (46 m. x 120 m.) 39,000 70,500 215,000
400 ft. x 500 ft. (120 m. x 150 m.) 268,000 744,000 2,210,000

All costs are based upon a combination of results from Aventurine Engineering, Inc.’s, Sherpa Cost
Estimating Software for Surface Mines and Sherpa Cost Estimating Software for Reclamation Bonds.
These programs work with the project parameters (volumes moved over specific distances and gradients,
blade and traction efficiencies, etc) to calculate machine cycle times which are used, in turn, to determine
equipment and labor needs. These labor and equipment needs then provide the basis for the estimated
costs.

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Itemized costs for the labor, materials, and supplies used in the models are as follows:

Unit Costs
Labor

Foreman $ 27.54/hour
Surveyor $ 20.05hour
Drillers $ 19.03/hour
Blasters $ 19.08/hour
Equipment Operator $ 18.36/hour
Mechanic $ 18.39/hour
Laborer $ 14.00/hour
Burden Rate 42% of wages
Unit Cost Unit Cost
Drilling and Blasting Supplies (percussion) (U.S. Standard) (Metric)

Explosives (semi-gelatin dynamite) $2.07/pound $4.564/kilogram


Caps (fuse type) $1.84/cap $1.84/cap
Detonating Cord (safety fuse) $0.238/foot $0.781/meter
Drill Bits (1.25-inch diameter) / (3.175-cm diameter) $55.00/bit $55.00/bit
Drills Steel (12-feet length) / (3.7 meter length) $193.00/rod $193.00/rod

Drilling and Blasting Supplies (Rotary)

Explosives (watergel) $0.64/pound $1.411/kilogram


Caps (fuse type) $1.84/cap $1.84/cap
Primers (0.5 pound) / (0.2 kilogram) $3.35/primer $3.35/primer
Detonating Cord (safety fuse) $0.238/foot $0.781/meter
Drill Bits (6-inch diameter) / (15.24-cm diameter) $1,249.00/bit $1,249.00/bit
Drill Steel (4.25-inch diameter) / (11.43-cm diameter) $22.30/foot $73.17/meter
Equipment Operation

Diesel Fuel $4.250/gallon $1.123/liter


Lubricants $8.36/gallon $2.21/liter
Repair & Overhaul Parts*
Equipment Ownership*
* Maintenance and repair parts, ground engaging components, and ownership costs are specific to each machine and based upon
manufacture recommendations.

In the models, most of the site preparation work is accomplished by bulldozers. They are relied upon to help clear
the site, to transport and stockpile topsoil, and to excavate, transport, level, and place the foundation material.
Bulldozer sizes used for each scenario are listed in the following table:

Bulldozer Size (machine horsepower)


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) 80 hp 80 hp 80 hp
60 ft. x 200 ft. (18 m. x 60 m.) 80 hp 80 hp 185 hp
100 ft. x 300 ft. (30 m. x 90 m.) 80 hp 185 hp 240 hp
150 ft. x 400 ft. (46 m. x 120 m.) 185 hp 240 hp 305 hp
400 ft. x 500 ft. (120 m. x 150 m.) 240 hp 305 hp 580 hp

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Almost all of the costs of site preparation are attributable to either labor or to the expenses associated with
equipment operation and ownership. Few supplies are consumed except where rock must be drilled and blasted.
Average cost distributions are listed in the following tables:

Average Labor Cost Distribution (percent of total cost*)


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) 65% 63% 61%
60 ft. x 200 ft. (18 m. x 60 m.) 62% 59% 50%
100 ft. x 300 ft. (30 m. x 90 m.) 58% 50% 36%
150 ft. x 400 ft. (46 m. x 120 m.) 51% 38% 31%
400 ft. x 500 ft. (120 m. x 150 m.) 36% 31% 18%

Average Fuel Cost Distribution (percent of total cost*)


Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) 10% 11% 12%
60 ft. x 200 ft. (18 m. x 60 m.) 11% 12% 17%
100 ft. x 300 ft. (30 m. x 90 m.) 13% 17% 20%
150 ft. x 400 ft. (46 m. x 120 m.) 16% 20% 24%
400 ft. x 500 ft. (120 m. x 150 m.) 20% 23% 30%

Average Equipment Operating and Ownership Cost Distribution (percent of total cost*)
Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) 25% 26% 27%
60 ft. x 200 ft. (18 m. x 60 m.) 27% 29% 33%
100 ft. x 300 ft. (30 m. x 90 m.) 29% 33% 44%
150 ft. x 400 ft. (46 m. x 120 m.) 33% 42% 45%
400 ft. x 500 ft. (120 m. x 150 m.) 44% 46% 52%
* Exclusive of drilling and blasting costs.

In the Rock excavation models, drilling and blasting make up the following percentages of the total site
preparation costs:

Average Portion of Rock Excavation Cost Attributable to Drilling and Blasting (percent of total cost)
Pad Size Side Slope
(width x length) 2° 10° 25°
40 ft. x 100 ft. (12 m. x 30 m.) 26% 40% 61%
60 ft. x 200 ft. (18 m. x 60 m.) 21% 49% 41%
100 ft. x 300 ft. (30 m. x 90 m.) 24% 36% 44%
150 ft. x 400 ft. (46 m. x 120 m.) 15% 36% 42%
400 ft. x 500 ft. (120 m. x 150 m.) 13% 25% 34%

Volumes excavated vary from one model to the next and are based upon the size and configuration of the pad, the
slope angle as well as the cut and repose angles, and the density, swell, and compaction characteristics of the
foundation material. In addition to the size of the site and the steepness of the side slope, costs are heavily
influenced by the efficiency of the dozer’s blade (which is a function of the angle of the side slope) and by the
dozer’s ability to gain and maintain traction (which is a function of the nature of the underlying foundation material
and the weight of the machine).

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Other parameters key to the estimated costs include:

Site Work Evaluation Parameters (U.S. Standard units)


Foundation Material

Evaluation Parameter Common Earth Sand & Gravel Silt & Clay Rock
In-Place Density (pounds/cubic yard) 3,030 3,020 3,220 4,540
Loose Density (pounds/cubic yard) 2,240 2,610 2,380 2,640
Compacted Density (pounds/cubic yard) 3,520 3,240 3,570 3,410
Traction Efficiency (percent) 85 70 60 75
Compaction Lift Thickness (inch) 6 6 4 8

Site Work Evaluation Parameters (Metric units)


Foundation Material

Evaluation Parameter Common Earth Sand & Gravel Silt & Clay Rock
In-Place Density (kilograms/cubic meter) 1,051 1,047 1,117 1,575
Loose Density (kilograms/cubic meter) 777 905 825 916
Compacted Density (kilograms/cubic meter) 1,221 1,124 1,238 1,183
Traction Efficiency (percent) 85 70 60 75
Compaction Lift Thickness (centimeter) 15 15 10 20

Mobilization costs may need to be added to the overall site preparation costs. For the equipment used in
these models, mobilization rates can be expected to range from $10.50 per mile ($6.50 per kilometer) for
the smaller machines and $14.50 per mile ($9.00 per kilometer) for the larger machines.

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