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 2010 Coal Cost Guide

Development Series
Number 2 Updated September 2008

The Cost of Sinking Shafts

Scott Stebbins
Aventurine Mine Cost Engineering, Inc.

In an effort to provide evaluators with information
on the costs of sinking shafts, we have designed
several models for both circular and rectangular
shafts and have estimated the expenses associated
with their excavation and construction. We have
keyed our estimates to several fundamental
parameters, such as face area, final depth, rock
strength, construction materials, sinking method,
rock density, station spacing, compartment
configuration, and pumping requirements.
We have taken a cost engineering approach to
deriving the relationships and algorithms needed
for our models. These relationships and
algorithms were used to calculate values for all of
the pertinent parameters needed for the cost
estimates (timber and concrete requirements, hoist
capacities, head-frame sizes, explosives
consumption rates, etc.).
The ensuing parameters were used in
conjunction with cost data from InfoMine USA's
Mining Cost Service to provide results in terms of
dollars per unit depth (feet or meters).
Shaft designs used for the estimates are typical
of recent projects. We've assumed that all
excavation and construction work is performed
under contract; non-contract sinking costs may be
more unless experienced crews are available and
the specialized equipment needed for excavation
and construction is already on-hand.
Unit (per-foot or per-meter) excavation and
construction costs for 2,500 foot-deep (760
meter-deep) circular and rectangular shafts are
summarized in the following tables:

Estimated Costs for Circular Shafts (U.S. dollars per foot of depth)
Rock Strength

Excavated Shaft Diameter 12,500 psi 28,500 psi 44,500 psi

12 feet $ 2,025.62 $ 2,150.41 $ 2,287.07

15 feet 2,413.30 2,563.76 2,729.64
18 feet 2,896.67 3,119.97 3,337.38
22 feet 3,480.01 3,755.50 4,029.35
26 feet 4,178.23 4,555.43 4,932.29

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Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE 1
Estimated Costs for Circular Shafts (U.S. dollars per meter of depth)
Rock Strength

Face Diameter 86,200 kpa 196,500 kpa 306,800 kpa

3.65 meter $ 6,646.06 $ 7,055.50 $ 7,503.88

4.57 meter 7,918.04 8,411.70 8,955.95
5.49 meter 9,503.97 10,236.62 10,949.94
6.71 meter 11,417.91 12,321.80 13,220.30
7.92 meter 13,708.77 14,946.37 16,182.84

Estimated Costs for Conventional Rectangular Shafts (U.S. dollars per foot of depth)
Rock Strength

Excavated Shaft Dimensions 12,500 psi 28,500 psi 44,500 psi

6 feet x 12 feet $ 1,776.82 $ 1,870.22 $ 1,990.17

8 feet x 18 feet 2,250.12 2,387.40 2,558.29
10 feet x 20 feet 2,548.95 2,708.79 2,904.07
12 feet x 28 feet 3,164.18 3,418.51 3,720.35
14 feet x 32 feet 3,664.55 3,997.53 4,386.57

Estimated Costs for Conventional Rectangular Shafts (U.S. dollars per meter of depth)
Rock Strength

Excavated Shaft Dimensions 86,200 kpa 196,500 kpa 306,800 kpa

1.8 meter x 3.6 meter $ 5,829.75 $ 6,136.19 $ 6,529.75

2.4 meter x 5.5 meter 7,382.64 7,833.06 8,393.75
3.0 meter x 6.1 meter 8,363.10 8,887.54 9,528.25
3.7 meter x 8.5 meter 10,381.67 11,216.13 12,206.47
4.3 meter x 9.8 meter 12,023.39 13,115.90 14,392.34

Cost Distributions
The costs of sinking the shafts are apportioned as follows:

Shaft Cost Distribution

Percent of Total Cost

Cost Item Circular Rectangular

Labor 46.4% to 68.7% 49.5% to 67.0%

Drilling & Blasting Supplies 2.6% to 4.2% 2.4% to 4.2%
Utility Materials 2.3% to 4.3% 2.9% to 5.4%
Construction Materials 6.1% to 16.2% 7.4% to 10.8%
Diesel Fuel & Electricity 1.5% to 6.0% 1.6% to 5.8%
Equipment Ownership & Operation 6.1% to 23.8% 6.1% to 23.5%
Contractor Fees 12% 12%

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2 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.
Included in the above are costs for shaft collaring, rock
support, shaft and station excavation and construction,
shaft alignment, surface support work, supervision,
muck excavation and disposal, and equipment
ownership, maintenance, and repair. Also included are
costs for purchasing or constructing temporary head-
frames, sinking buckets, stages (for circular shafts
only), concrete mixing and pumping equipment,
sinking hoists, wire rope, and cross-heads.
In our designs, broken material collected during
excavation is transported a horizontal distance of 1,000
feet (305 meters) after it’s hoisted to the surface.
Changes in the surface haul distances have little impact
on the overall costs. For instance, doubling the haul
distance increases overall costs by less than 1.0%.
Stations are situated at vertical intervals of 150 feet
(45 meters) throughout the lowest 1,200 feet (365
meters) of the shaft. For the purposes of our estimates,
the amount of material recovered during station
excavation is equivalent to the amount taken during
two rounds of shaft excavation. If the station interval
is increased to 200 feet (60 meters), overall costs
decrease less than 1.0%.
It is assumed, in our models, that 200 gallons (760
liters) of water must be pumped from the excavation
per minute. If pumping requirements are increased to
400 gallons (1,520 liters) per minute, overall costs
increase an average of 1.5% for circular shafts and
2.0% for rectangular shafts. A decrease in pumping
requirements to 100 gallons (380 liters) per minute
reduces overall costs an average of 1.0% for the
circular shafts and an average of 1.5% for the
rectangular shafts.
A contractor profit of 12% is included in the overall
costs.
Equipment
In the circular shafts, blast-holes are provided by a
hydraulic drill jumbo suspended from a sinking stage.
Small jumbos equipped with hydraulic drifter drills
provide the blast-holes for the rectangular shafts and
for the stations.
Unit costs for the materials, supplies, and wages used in the estimates are listed in the following table:
Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE
Shaft muckers collect the broken rock from the
floors of the shafts and load it into the sinking hoist
buckets.
Temporary hoists are used to remove the broken
rock from the excavation and to transport workers and
supplies to the shaft floor (the costs of permanent
hoisting facilities are not included in these estimates).
Tugger hoists are used to move supplies in the vicinity
of the working face. Electrically driven pumps remove
water from the bottom of the shaft, and surface-
mounted ventilation fans provide fresh air to the
workers.
In the circular shafts, a sinking stage provides the
platform for shaft excavation and construction. Costs
associated with concrete mixers and pumps, as well as
those associated with concrete forms, are all included
in the costs of sinking the circular shafts.
Because shafts are often constructed in the early
stages of mine development and at remote sites, our
estimates include the costs of generating the required
electrical power. If transmitted electrical power is
available, a reduction in overall costs may be expected.
And although some of this reduction is due to the
savings in diesel fuel costs, most of the reduction may
be attributed to forgoing the costs of owning, operating,
and maintaining the generators.
Materials and Supplies
Emulsion-type explosives are assumed for all
blasting. Powder factors range from 0.93 to 2.81
pounds per ton (0.47 to 1.41 kilograms per metric ton),
and vary inversely with the area of the face. Blasts are
initiated using non-electric delay caps in conjunction
with a-pound (0.15 kilogram) boosters.
The rectangular shafts are fitted with conventional
shaft timber sets. Timber is included for side beams,
dividers, posts, lagging, and landings. Post and beam
dimensions are based upon the dimensions of the shafts
and the strength of the rock, as is the amount of
lagging.
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Unit Costs

Item Unit Cost (English) Unit Cost (Metric)

Labor
Foreman $ 39.04/hour $ 39.04/hour
Miners (Base Wage) $ 24.18/hour $ 24.18/hour
Construction Workers $ 23.24/hour $ 23.24/hour
Hoist Operators $ 22.59/hour $ 22.59/hour
Mechanics $ 23.14/hour $ 23.14/hour
Underground Helpers $ 17.09/hour $ 17.09/hour
Yard Workers $ 15.27/hour $ 15.27/hour
Surface Crew $ 17.09/hour $ 17.09/hour
Production $ 12.09/hour $ 12.09/hour
Burden Rate 41% of wages 41% of wages
Drilling and Blasting Supplies
Explosives $ 1.02/pound $ 2.249/kilogram
Caps $ 1.84/cap $ 1.84/cap
Boosters $ 2.62/booster $ 2.62/booster
Detonating Cord $ 0.238/foot $ 0.781/meter
Drill Bits (1 1/4 inch/2.75 cm) $ 55.00/bit $ 55.00/bit
Drill Steel (6 feet to 12 feet/1.8 to 3.6 meter) $ 140.00 to $ 193.00/rod $ 140.00 to $ 193.00/rod
Utility Materials
Water Pipe (1 inch to 3 inch /2.2 to 6.6 cm) $ 2.53 to $ 6.98/foot $ 8.30 to $ 22.90/meter
Drain Pipe (3 inch to 8 inch /6.6 to 17.6 cm) diameter $ 6.98 to $ 24.57/foot $ 22.90 to $ 80.61/meter
Compressed Air Pipe (4 inch to 8.8 cm) diameter $ 9.41/foot $ 30.87/meter
Ventilation Tubing (24 inch to 53 cm) diameter $ 24.16/foot $ 79.27/meter
Electric Cable $ 23.93/foot $ 78.51/meter
Ladders $ 6.26/foot $ 20.54/meter
Skip Guides $ 4.66 to $ 11.58/foot $ 15.29 to $ 37.99/meter
Steel Grate $ 1.94/pound $ 4.28/kilogram
Hanging Bolts $ 5.52/hanger $ 5.52/hanger
Temporary Hoist Rope (1 5/8 inch/3.6 cm) $ 10.86/foot $ 35.63/meter
Sinking Stage Rope (1 1/2 inch/3.3cm) $ 8.60/foot $ 28.22/meter
Ground Support Materials
Cement $ 91.23/ton $ 100.56/metric ton
Structural Steel $ 0.41/pound $ 0.90/kilogram
Rock Bolts (4 foot to 7 foot/1.2 to 2.1 meter) length $ 5.50 to $ 8.80/bolt $ 5.50 to $ 8.80/bolt
Rock Bolt Mats $ 13.27/mat $ 13.27/mat
Timber $ 0.71/board foot $ 300.88/cubic meter
Lagging $ 0.60/board foot $ 254.27/cubic meter
Sand $ 7.70/cubic yard $ 10.07/cubic meter
Gravel $ 8.40/cubic yard $ 10.98/cubic meter
Sales Tax 6.5% 6.5%
Equipment Operation
Diesel Fuel $ 4.250/gallon $ 1.123/liter
Electricity $ 0.111/kWh $ 0.111/kWh
Lubricants $ 8.36/gallon $ 2.21/liter
Repair & Overhaul Parts**
Equipment Ownership**
* Applies only to the wages of the miners and is not subject to burden
** Maintenance and repair parts, ground engaging components, and ownership costs are specific to each machine and
based upon manufacturer recommendations.

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4 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.
In our models, circular shafts are lined with concrete. The thickness of the concrete is based upon the rock strength
and its quality designation. Landings are constructed of steel I-beams and metal grate. The sketch below illustrates
our generalized plan for the circular shafts:

In both the timber-set rectangular shafts and concrete Labor

lined circular shafts, rock-bolts are used to provide
temporary protection from rock fall. Estimates also
include the costs of both a temporary head-frame
(constructed of timber) and of concrete for the shaft
collar.
A significant portion of the costs of sinking shafts is
attributable to labor. Because of their significance,
labor costs are further delineated in the following
tables:

Costs Attributable to Labor - Circular Shafts (percent of total cost)

Rock Strength

Shaft Diameter 12,500 psi (86,200 kpa) 28,500 psi (196,500 kpa) 12,500 psi (86,200 kpa)

12 feet (3.66 meter) 68.7% 64.1% 59.6%

15 feet (4.57 meter) 67.1% 62.5% 58.1%
18 feet (5.48 meter) 63.5% 58.2% 53.7%
22 feet (6.71 meter) 60.6% 55.4% 50.9%
26 feet (7.92 meter) 56.7% 51.1% 46.4%

Costs Attributable to Labor - Conventional Rectangular Shafts (percent of total cost)

Rock Strength

Shaft Dimensions 12,500 psi (86,200 kpa) 28,500 psi (196,500 kpa) 44,500 psi (306,800 kpa)

6 feet x 12 feet (1.8 meter x 3.6 meter) 67.0% 63.1% 58.7%

8 feet x 18 feet (2.4 meter x 5.5 meter) 67.0% 62.5% 57.6%
10 feet x 20 feet (3.0 meter x 6.1 meter) 66.3% 61.7% 56.9%
12 feet x 28 feet (3.7 meter x 8.5 meter) 64.2% 58.6% 53.0%
14 feet x 32 feet (4.3 meter x 9.8 meter) 61.3% 55.3% 49.5%

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Copyright © 2009 InfoMine USA, Inc. COAL COST GUIDE 5
Labor costs are distributed as follows:

Shaft Labor Cost Distribution

Percent of Total Cost

Crew Circular Rectangular

Supervision/Technical 10.4% to 13.0% 10.7% to

Sinking 26.7% to 30.6% 26.1% to
Construction 26.6% to 27.6% 26.0% to
Surface Support 22.0% to 24.5% 22.3% to
Mechanics/Electricians 9.2% to 9.4% 9.0% to 9.4%

Costs for administrative personnel are not included.

Shaft Depth costs (per-foot or per-meter) tend to increase as the

Unit (per-foot or per-meter) excavation and
construction costs for shafts shallower than our 2,500
foot (760 meter) base depth typically decrease with the
reduced final depth, but according to our estimates the
fixed costs associated with temporary head-frame
construction, equipment ownership, surface facilities,
and collar installation tend to more than offset savings
in the costs of hoisting muck, delivering supplies, an
pumping water. As a consequence, the overall unit
finished depth decreases.
Unit (per-foot or per-meter) costs for shafts more
than 2,500 feet (760 meter) deep increase with depth
due to incremental increases in the costs of hoisting
muck, delivering supplies, providing fresh air, and
pumping water.
Increases in overall per-foot or per-meter costs (as
compared to costs at our modeled shaft depth of 2,500
feet (760 meters) are illustrated in the following chart:

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6 COAL COST GUIDE Copyright © 2009 InfoMine USA, Inc.