Professional Documents
Culture Documents
Please note:
InfoMine USA’s subscription fees are charged
on a per user basis. Unauthorized redistribution
of InfoMine USA information, including the
forwarding of email publications to third parties
and the copying of printed publications, is
prohibited without prior written authorization
of InfoMine USA, Inc.
If you wish to add users to your subscription please contact us.
After your company has purchased its first subscription to Coal
Cost Guide, second and third users at the same location receive
their subscriptions at a 50% discount. Four or more subscribers
receive a 75% discount, and 10 or more added subscribers are
eligible for special bulk rates. For information on discounts for
other company locations, please contact us.
Tel: 509-328-8023
Fax: 509-328-2028
Email: jleinart@infomine.com
Development Series
Number 1 Updated November 2008
DS1
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
DS1
2 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.
Excavated Material - Sand & Gravel
(continued)
DS1
Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE 3
Excavated Material - Common Earth
(continued)
DS1
4 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.
Excavated Material - Rock
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.
DS1
Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE 5
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)
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:
DS1
6 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.
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 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).
DS1
Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE 7
Other parameters key to the estimated costs include:
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
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.
DS1
8 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.