Chapter 20
Graham A. Mathieson
Golder A s s o c i a t e s , Denver, Colorado, USA
James R. Marlon-Lambert
ICAS of tware' S e r v i c e s .
I n c , North Vancouver, B.C.
Kenneth K.' Inouye
,Golder A s s o c i a t e s , Vancouver, B.C.,
INTRODUCTION
A d e t a i l e d breakdown of c a p i t a l and
operating costs i s an e s s e n t i a l e l e -
ment i n t h e planning and e v a l u a t i o n of
any mining p r o j e c t . The OPCOST System
was developed by Golder A s s o c i a t e s t o
p r o v i d e mining e n g i n e e r s w i t h t h e f a -
c i l i t y t o synthesize detailed c o s t
e s t i m a t e s f o r a l l a s p e c t s of a n o p e r -
a t i n g o r p o t e n t i a l open p i t mine. The
system can a l s o be a p p l i e d t o u n d e r -
ground m i n e s e q u a l l y a s w e l l . Such
e s t i m a t e s can be prepared a t a v a r i e t y
of l e v e l s depending on t h e d e t a i l r e -
q u i r e d by t h e pro j e c t :
The OPCOST System i s a s u i t e of
computer programs l i n k e d t h r o u g h a
common h i e r a r c h i c a l d a t a b a s e . It
' s i m u l a t e s t h e t h o u g h t and r e a s o n i n g
processes within the quantity t a k e o f f
and c o s t e s t i m a t i o n phases of a mining
p r o j e c t . The system was d e v e l o p e d a s
a mining c o s t e n g i n e e r i n g t o o l on t h e
b a s i s t h a t i t would have t o s a t i s f y a
v a r i e t y of purposes, namely:
'(1) To provide e s t i m a t e s of equip-
ment, manpower, and m a t e r i a l s
r e q u i r e m e n t s f o r mine planning
and f e a s i b i l i t y s t u d i e s .
(2) To p r o v i d e e s t i m a t e s of mine
c a p i t a l c o s t s ( a d d i t i o n s and
r e p l a c e m e n t s , ) and o p e r a t i n g
204
, Canada '
Canada
c o s t s ( l a b o r and c o n s u m a b l e s )
a s well as , o t h e r f i n a n c i a l
data for project financial
e v a l u a t i o n purposes.
(3) To p e r m i t v e r y r a p i d e v a l u a -
t i o n of t h e c o s t s e n s i t i v i t y
t o changes i n i n p u t parameters
such as mining s c h e d u l e ,
equipment s i z e , f u e l p r i c e s ,
etc.
(4) To provide a c o n s i s t e n t b a s i s
f o r t h e economic e v a l u a t i o n
and comparison of a l t e r n a t i v e
mining p l a n s and s c h e d u l e s .
The c a l c u l a t i o n of r e q u i r e m e n t s f o r
equipment, manpower, and c o n s u m a b l e s
( c a l l e d " r e s o u r c e s " i n t h i s p a p e r ) and
t h e i r a s s o c i a t e d c o s t s f o l l o w s conven-
tional practice. I t i s b a s e d on t h e
d i v i s i o n of a m i n i n g p r o j e c t i n t o a
s e r i e s of e l e m e n t a l o p e r a t i o n s o r
t a s k s which occur throughout i t s l i f e
and f o r which. c o s t codes a r e a s s i g n e d .
R e q u i r e m e n t s f o r e q u i p m e n t , man-
power, and c o n s u m a b l e s n e c e s s a r y t o
complete each of t h e s e t a s k s a r e de-
termined from p r o d u c t i v i t y e s t i m a t e s
o r consumption r a t e s s u p p l i e d o r set
by t h e u s e r . These usage r a t e s a r e
accumulated by group over a p p r o p r i a t e
a g g r e g a t i o n s of e l e m e n t a l t a s k s . Num-
b e r s of e q u i p m e n t t y p e s , m a n p o w e r
 OPCOST - MINE COSTING SYSTEM
c l a s s e s , and amounts of m x t e r i a l s used
w i t h i n t h e p r o j e c t a r e d e d u c e d 1,ogi-
c a l l y from t h e s e a c c u m u l a t i o n s from
which c a p i t a l and o p e r a t i n g c o s t s a r e
subsequently, c a l c u l a t e d . The p r o c e s s
i s undertaken i n a s t e p - w i s e f a s h i o n
under t o t a l c o n t r o l o f . t h e u s e r who PRCGRIM
APPLCATKXi

can modify i n t e r i m r e s u l t s a s r e -
I
quired.

A commercially a v a i l a b l e D a t a Base
Management System was used a s t h e c o r e .
of t h e OPCOST System of programs be-
c a u s e of i t s a b i l i t y t o e f f e c t i v e l y
s t o r e and r e t r i e v e t h e i n t e r l i n k e d
h i e r a r c h i c a l d a t a involved. ,

T h i s paper p r e s e n t s an o v e r v i e w of F i g u r e 1. Overview of OPCOST

t h e manner i n which t h e OPCOST S y s t e m
works and some d e t a i l s of i t s i n t e r n a l
o r g a n i z a t i o n . F i r s t , t h e paper reviews
t h e s t r u c t u r e of t h e s y s t e m ; s e c o n d ,
t h e e s t i m a t i o n methodology and manner
of use a r e a d d r e s s e d ; and f i n a l l y some
d i s c u s s i o n and o u t p u t e x a m p l e s a r e
g i v e n i n terms of o p e r a t i o n a l usage.
DESCRIPTION OF THE OPCOST
COMPUTER SYSTEM
Overview
AS noted i n t h e ~ n t r o d u c t i o n , t h e
OPCOST System c o n s i s t s p r i m a r i l y of a '
s u i t e of c o m p u t e r p r o g r a m s l i n k e d
through a common d a t a base ( F i g u r e 1).
The d a t a b a s e i n t h e OPCOST S y s t e m
c o n t a i n s v a r i o u s l e v e l s of c o s t i n g
d a t a and o p e r a t i o n a l d a t a which p e r -
t a i n t o s p e c i f i c c o s t i n g s t u d i e s on a
mining p r o j e c t . The s u i t e of computer
programs i s composed of a p p l i c a t i o n
programs which c r e a t e , m a i n t a i n , up-
d a t e , and m a n i p u l a t e t h e d a t a b a s e ;
and, r e p o r t i n g programs which e x t r a c t
s t o r e d d a t a from t h e d a t a b a s e and
p r e p a r e f o r m a l p r i n t e d s u m m a r i e s of
it.
I n a d d i t i o n , t h e r e a r e supplemen-
t a r y programs and d a t a s t o r a g e f a c i l i -
t i e s f o r m n i t o r i n g d a t a base changes, I
d a t a base backup, and l o n g - t e r m d a t a
storage.
System Components
S p e c i f i c v e r s i o n s of a c o s t i n g d a t a
base a r e c r e a t e d a s r e q u i r e d f o r p a r -
t i c u l a r mining p r o j e c t s . A t any p o i n t
i n t i m e , s e v e r a l OPCOST d a t a bases may
e x i s t f o r individual projects. These
d a t a bases a r e independent and c a n
o n l y be a c c e s s e d by t h e p r o j e c t evalu-
a t i o n teams a s s i g n e d t o them u s i n g t h e
s t a n d a r d a p p l i c a t i o n and r e p o r t i n g
programs i n t h e OPCOST System. A t t h e
time a new d a t a base is c r e a t e d , t h e
e n g i n e e r o r p l a n n e r may e l e c t t o
t r a n s f e r c e r t a i n c o s t i n g parameters
from o t h e r d a t a bases t o i t .
Data Base S t r u c t u r e
The g e n e r a l c o n f i g u r a t i o n of t h e
OPCOST d a t a b a s e i s i n d i c a t e d i n
F i g u r e 2. The h i e r a r c h i c a l (top-down)
n a t u r e of t h e d a t a s t o r a g e a n d t h e
r e l a t i o n s h i p t o ranking i n conven-
t i o n a l mine c o s t i n g p r a c t i c e a r e ap-
p a r e n t . There a r e n i n e d i s t i n c t d a t a
s e t s a t four d i f f e r e n t l e v e l s w i t h i n
the d a t a base. The,se d a t a s e t s a r e
l i n k e d through t h r e e main h i e r a r c h i c a l
data search/storage/ r e t r i e v e paths a s
shown i n F i g u r e 2 .
 17th A P C O M SYMPOSIUM
&%aOati0bnal vine
costing organization
'(3)
Figure 2. OPCOST Data Base
(Hierarchical)
Organization
. Each d a t a s e t c o n t a i n s d a t a r e c o r d s
unique t o t h a t s e t which r e f l e c t t h e
l e v e l and n a t u r e of t h e c o s t i n g d a t a
contained w i t h i n it. Each d a t a s e t
may a l s o r e f e r (downwards) d i r e c t l y t o
a number of s u b s i d i a r y d a t a s e t s
through t h e h i e r a r c h i c a l d a t a s e a r c h /
s t o r e l r e t r i e v e paths. Individual data
s e t s a t t h e same h i e r a r c h i c a l l e v e l i n
t h e OPCOST d a t a base a r e t o t a l l y inde-
pendent.
The f u n c t i o n s and c o n t e n t s of t h e
v a r i o u s d a t a s e t s w i t h i n t h e OPCOST
d a t a b a s e may be s u m m a r i z e d a s f o l -
lows :
(1) p r o j e c t Data Set--one ' e n t r y
(data-record) used to def ine
t h e mine p r o j e c t being c o s t e d .
Links t o S c h e d u l e s Data S e t s
- and Resource T a b l e s Data S e t s .
(2) Schedules Data S e t s - - m u l t i p l e
e n t r i e s used t o i d e n t i f y a l -
t e r n a t i v e mine p f o d u c t i o n
/
s c h e d u l e s and t o d e f i n e p r e -
production, production, and
postproduction periods. Spe-
c i f i c schedules l i n k d i r e c t l y
t o s p e c i f i c M a t e r i a l Tonnage
Data S e t s and t o s p e c i f i c Cost
Phase Data S e t s .
---
m u l t i p l e e n t r i e s p e r "mine
production schedule " d e f i n i n g
m a t e r i a l tonnages t o be moved
per period i n the schedule.
These m a t e r i a l tonnages a r e
' f o r various types w i t h i n the
following classes :
- overburden(s)
- waste(s)
- ore(s)
Ore tonnage d a t a r e c o r d s h a v e
l i n k s t o Ore Grades Data S e t s .
(4) Ore Grades Data?e>--multiple
mineral g
- r a d e e n t r i e s f o r each
"ore" m a t e r i a l tonnage
schedule.
(5) =Phase Data S e t s - - c u r r e n t L
l y a s i n g l e e n t r y per schedule
t o d e f i n e t h e c o l l e c t i o n of
a l l c o s t s , commodities, and
ottier p e r i o d d a t a a s s o c i a t e d
w i t h mining o r e a c c o r d i n g t o a
s p e c i f i c schedule. This data
" s e t may be expanded 'n t h e fu-
ture to specifically consider
m i n e r a l p r o c e s s i n g and o t h e r
operations. The c o s t p h a s e
data s e t links d i r e c t l y t o the
Cost Code Data S e t s .
(6) Cost Code Data S e t s - - m u l t i p l e
e n t r i e s per c o s t phase per
mining s c h e d u l e . The d a t a
records w i t h i n t h i s d a t a s e t
c o n t a i n a l l of t h e d e t a i l e d
p e r i o d i c c o s t s , usage r a t e s
and amounts d e f i n e d , g e n e r a t -
e d , and accumulated f o r t h e
p r o j e c t . This data s e t is the
' c o r e of t h e OPCOST S y s t e m a n d
i t is t h r o u g h t h e u s e of a
h i e r a r c h i c a l da t a b a s e t h a t
c o s t code a c c u m u l a t i o n s can be
completed q u i c k l y and economi-
cally.
(7) Resource Table Data Sets--cur-
r e n t l y a s i n g l e e n t r y p e r pro-
j e c t t o d e f i n e t h e g r o u p of
 OPCOST - MINE COSTING SYSTEM
r e s o u r c e s used i n t h e p a r t i c u -
l a r mining o p e r a t i o n s . This
d a t a s e t may be e x p a n d e d t o
s p e c i f i c a l l y consider m i l l i n g .
and o t h e r o p e r a t i o n s and i s
l i n k e d d i r e c t l y t o t h e Re-
s o u r c e Data Data S e t s .
(8) ~ e s o u r c e~' a t aData Sets--mul-
tiple entries defining the
various m a t e r i a l , equipment,
l a b o r , f u e l , s u p p l i e s , and
product r e s o u r c e s u s e d i n t h e
project. All resource s p e c i f i c
data relating directly or in-
d i r e c t l y t o c a p i t a l and o p e r -
a t i n g c o s t s is s t o r e d i n d a t a
records within t h i s d a t a s e t . .
Equipment r e s o u r c e d a t a r e -
cords within t h i s d a t a s e t
have l i n k s t o R e s o u r c e L i s t s
Data S e t s .
(9) Resource L i s t Data Sets--mul-
t i p l e e n t r i e s per " e q u i p m e n t "
resource. C o n t a i n s , d a t a de-
f i n i n g o p e r a t i n g and m a i n t e n -
ance crew a l l o c a t i o n s ( l i ' s t s )
a s w e l l a s f u e l s and s u p p l i e s
consumed p e r u n i t e q u i p m e n t
usage.
The s t r u c t u r e of t h e OPCOST dais
base d e f i n e s t h e o v e r a l l f o r m a t f o r
r e l a t i o n s h i p s between t h e e l e m e n t s of
the various data sets. It must be
understood, however, t h a t t h e a c t u a l
r e l a t i o n s h i p s used f o r a m i n i n g p r o -
ject cost estimation are t o t a l l y d a t a
dependent. It i s t h e c o s t i n g e n g i -
neer's r e s p o n s i b i l i t y t o define the
actual relationships for a project
through.his input data specifications;
s p e c i f i c a l l y h i s own c o s t c o d e h i e r -
archy f o r example.
A p p l i c a t i o n Programs
A l l mine c o s t i n g o p e r a t i o n s w i t h
t h e OPCOST System a r e c a r r i e d o u t v i a
a s u i t e of a p p l i c a t i o n s computer pro-
grams. T h e r e a r e o v e r 30 component
programs i n t h i s s u i t e which c r e a t e ,
i n p u t , update, g e n e r a t e , and m a i n t a i n
data records i n the various data s e t s .
Also included i n t h i s s u i t e a r e a num-
b e r of i n t e r i m r e s u l t r e p o r t i n g pro-
g r a m s which p r o v i d e t h e u s e r w i t h
. 207
formal r e p o r t s of d a t a b a s e c o n t e n t s
a t s p e c i f i c s t a g e s i n t h e c o s t i n g ex-
ercise. Figure 3 c o n t a i n s a flow
,
c h a r t of t h e d a t a p r o c e s s i n g o p e r a -
t i o n s involved i n t h e c o s t e s t i m a t i o n .
This t o t a l flow c h a r t i s composed of
t h r e e main segments, namely:
(1) Data D e f i n i t i o n Segment
(2) Quantity and C o s t G e n e r a t i o n
Segment
(3) Reporting Segment
Each b l o c k of p r o c e s s i n g i n t h e
f i r s t two s e g m e n t s c o n s i s t s of a t
.,
l e a s t one d i r e c t , a p p l i c a t i o n s p r o g r a m
and an a s s o c i a t e d i n t e r i m r e s u l t s r e -
p o r t i n g program.
Typically, each a p p l i c a t i o n s pro-
gram w i l l c a r r y out one e l e m e n t a l s t e p
i n t h e c o s t e s t i m a t i o n . The a p p l i c a -
t i o n s programs tend t o be v e r y s i m p l e
i n t h e i r l o g i c a l s t r u c t u r e and t h u s
were easy t o d e r i v e , code, and i m p l e -
ment. They a r e a l s o easy t o m a i n t a i n
and enhance.
The a p p l i c a t i o n s programs must be
r u n i n t h e s p e c i f i c s e q u e n c e of p r o -
c e s s i n g blocks shown. The sequence i s
,
a l o g i c a l one based ,on t h e f o r m a l and
d a t a dependent r e l a t i o n s h i p s t h a t a r e
fundamental procedures i n t h e c o s t i n g
m e t h o d o l o g y a d o p t e d f o r t h e OPCOST
System.
The a p p l i c a t i o n s programs, combined
with the data b a s e , a r e t h e b a s i c
OPCOST System t o o l s a v a i l a b l e t o t h e
c o s t i n g engineer. They a r e s t r u c t u r e d
i n a manner such t h a t t h e c o s t i n g en-
gi ne e r has d i r e c t c o n t r o l o v e r a l l
q u a n t i t y and c o s t e s t i m a t i o n o p e r a -
t i o n s . ' The e s t i m a t o r may r e v i e w t h e
i n t e r i m r e s u l t s achieved a t t h e end of
each such o p e r a t i o n , and may e l e c t t o
re-do them w i t h m o d i f i e d p a r a m e t e r s - ,
o r i n a number of s i t u a t i o n s a c t u a l l y
change o r smooth c a l c u l a t e d r e s u l t s t o
more r e a l i s t i c , v a l u e s .
208 17th APCOM SYMPOSIUM

PROJECT
r :
DEFINITION
DATA DEFINITION v
SEGMENT RESOURCE
DEFINITION
v
MINING SCHEDULE
I
DEFINITION
7
COST CODE
'DATA INPUT
___ _ ----------
. REFERENCE
QUANTITY
ALLOCATION
'
I

QUANTITY & COST EQUIPMENT

GENERATION SEGMENT REQUIREMENTS

FUEL & SUPPLY

CONSUMPTIONS

EQUIPMENT
1 EQUIPMENT
REPLACEMENT 1
CALCULATION

EXECUTIVE
SUMMARY COST
CONSOLIDATED
REPORTS

* DENOTES A PROCESSING STEP IN WHICH THE COSTING ENGINEER

MAY MAKE MANUAL MODIFICATIONS TO THE CALCULATED DATA .
~ i ~ b 3r . .e OPCOST System ~ a t aP r o c e s s i n g F l o w c h a r t
. .
. .

R e p o r t i n g Programs s t o r e d i n t h e "Cost Code Data S e t s " of

By r u n n i n g t h e a p p l i c a t i o n s p r o -
grams i n t h e sequence i n d i c a t e d i n
F i g u r e 3 , t h e OPCOST System d a t a b a s e
i s expanded t o i n c o r p o r a t e a l l t h e
pertinent information available for
t h e s p e c i f i c c o s t e s t i m a t e . No m a t t e r
how c o n s i s t e n t l y o r a c c u r a t e l y t h i s
d e t a i l e d information is derived it is
of v e r y l i t t l e v a l u e u n l e s s i t c a n be
d i s p l a y e d i n t h e f o r m a t and summary
levels that are useful for project
e v a l u a t i o n purposes.
As w i l l be d i s c u s s e d i n t h e f o l -
lowing s e c t i o n , t h e d e t a i l e d c o s t i n g
information, whether i t be s h o v e l
hours o r f u e l c o s t s , i s c o n t a i n e d i n
" c o s t components" w h i c h a r e i n d i v i d -
ually assigned t o hierarchical cost
codes. (These c o s t components a r e
t h e OPCOST d a t a . bask.)
By s p e c i f y i n g c l a s s e s of c o s t com-
p o n e n t s (e.g., " c o s t s , " " e q u i p m e n t , "'
" f u e l s , " e t c . ) and by summing t h e s e -
l e c t e d values over v a r i o u s c o s t code
r a n g e s , a v a r i e t y of r e p o r t s c a n be
produced t o s a t i s f y any p r o j e c t r e -
p o r t i n g r e q u i r e m e n t . A s e r i e s of s u c h
s t a n d a r d r e p o r t s were s p e c i f i e d d u r i n g
t h e i n i t i a l OPCOST System d e s i g n phase
and t h e s e have b e e n e n h a n c e d t o f o r m
t h e c u r r e n t OPCOST r e p o r t i n g p r o g r a m
suite.
. .
F i g u r e s :4 -and 5 i l l u s t r a t e t h e two
g e n e r a l a r e a s of r e p o r t i n g f u n c t i o n s
a v a i l a b l e , b e i n g t h o s e of " E q u i p m e n t ,
Manpower a n d S u p p l i e s " a n d " M i n i n g
Costs" respectively. There a r e
' a nuinber of s p e c i f i c r e p o r t i n g p r o -
 OPCOST - MINE COSTING SYSTEM

grams available in each functional Programming Details

area which produce summarized costing
information according to selected cost
code hierarchical levels. Some of
these reports will be defined later in
, this paper.
The current version of the OPCOST
System is operational on Control Data
Corporation Cyber-170 series computers
using the NOS operating system. It is

OPERATIONS
(CAPITAL ELEMENTS) I (OPERATING ELEMENTS)

v v CONSUMABLES

ADDITIONS 8

Figure 4. Equipment, Manpower, and Supplies Generation

\ and Reporting Hierarchy

1 MINING OPERATIONS

CAPITAL OPERATING
COSTS COSTS

LABORCOSTS CONSUMABLES
COSTS

Figure 5.' Mining Cost Reporting Hierarchy

210 17th APCOM SYMPOSIUM

i n s t a l l e d and m a i n t a i n e d by G o l d e r usage r a t e s o r a s s o c i a t e d c o s t s f o r a
A s s o c i a t e s on s u c h c o m p u t e r s l o c a t e d p a r t i c u l a r o r g a n i z a t i o n a l item over
i n Bellevue , Washington S t a t e . .These t h e l i f e of t h e mining p r o j e c t . ~ a c h .
computers a r e owned and o p e r a t e d by c o s t component d e s c r i b e s a p a r t i c u l a r
Boeing Computer S e r v i c e s who provide a segment of t h e h i e r a r c h i c a l o r g a n i z a -
p u b l i c computer se:rvice f a c i l i t y . t i o n developed by t h e u s e r t o . s i m u l a t e
t h e mining p r o j e c t . Cost components
A l l programs w i t h i n t h e OPCOST Sys- a r e "typed" w i t h a d e s c r i p t o r d e f i n i n g
tem a r e coded i n CDC-FORTRAN. An i n t e - t h e n a t u r e of t h e p e r i o d d a t a s t o r e d
g r a l p a r t of t h e OPCOST System i s t h e w i t h i n them. Examples of c o s t com-
SYSTEM 2000 Data Base Management Sys- ponent t y p e s a r e :
tem. (SYSTEM 2000 i s a r e g i s t e r e d ,
trademark of M R I S y s t e m s Corp., Aus- '
(1) Capital cost
t i n , Texas.)
(2) Supplies cost
S y s t e m 2000 i s a h i e r a r c h i c a l l y
s t r u c t u r e d d a t a base system and i s (3) Equipment ( c l a s s ) usage r a t e
commercially a v a i l a b l e f o r a l a r g e
number of computers. The v e r s i o n of (4) Manhours
SYSTEM 2000 i n c o r p o r a t e d . i n t o t h e
OPCOST S y s t e m i s a v a i l a b l e a s a (5) I n p u t parameter
licensed software product through
Boeing Computer*Services. Cost components a r e o r g a n i z e d a c c o r d -
i n g t o an a s s i g n e d code.
A l l d i r e c t a c c e s s t o ' t h e OPCOST
d a t a b a s e i s made v i a s i m p l e P L I , Cost codes d e f i n e t h e h i e r a r c h y and
(Program L a n g u a g e I n t e r f a c e ) s t a t e - . p o s i t i o n of t h e c o s t components w i t h i n
ments i n s e r t e d a t t h e a p p r o p r i a t e the overall project. A c o s t code i s

11
l o c a t i o n s i n t h e FORTRAN c o d e of t h e composed of 5 d i g i t s a r r a n g e d a s f o l -
component programs. lows :

COSTING SYSTEM METHODOLOGY cost h e a d y

Cost Division
The OPCOST System was d e s i g n e d t o Cost Center
s i m u l a t e t h e t h o u g h t and r e a s o n i n g Cost Item
p r o c e s s e s t h a t t a k e p l a c e i n t h e de- Cost Element
t a i l e d e s t i m a t i o n of c o s t s f o r a n
a c t u a l open p i t m i n i n g o p e r a t i o n , Cost codes a r e developed f o r a m i n i n g
a l t h o u g h t h e same p r o c e d u r e c a n . b e p r o j e c t by t h e c o s t i n g e n g i n e e r on t h e
equally w e l l a p p l i e d t o underground following basis :
o p e r a t i o n s . ' C o s t s of m i n i n g a r e de-
t e r m i n e d by t h e s y n t h e s i s of a n (1) Cost Area--the h i g h e s t ( g r o s s -
o r g a n i z a t i o n of u s a g e . r a t e s f o r ' p e r - e s t ) l e v e l of c o s t i n g . Used
s o n n e l , equipment, and s u p p l i e s f r o m t o d i f f e r e n t i a t e b e t w e e n 'in-
w h i c h a c t u a l o p e r a t i n g and c a p i t a l dependent s u b p r o j e c t s w i t h i n a
c o s t s can be c a l c u l a t e d o r deduced and - major p r o j e c t (e.g., individ-
s u b s e q u e n t l y accumulated. u a l p i t operations i n a multi-
p i t mlne).

(2) Cost Division--the l e v e l i n

t h e c o s t i n g p r o c e s s t o which
The fundamental d a t a element i n t h e c a p i t a l , equipment, l a b o r ,
OPCOST System i s t h e c o s t c o m p o n e n t . e t c . a r e accumulated. Used t o
A cost component i s one of t h e f r a c - d i f f e r e n t i a t e ~ n a j o r work e l e -
tional p a r t s of t h e o v e r a l l c o s t of a ments such a s mine o p e r a t i o n s ,
mining o p e r a t i o n and c o n t a i n s p e r i o d i c mine maintenance, e t c .
 OPCOST - MINE COSTING SYSTEM
(3) Cost Center--primary s u b d i v i - Cost I t e m = nnnno - contains class
s i o n s i n major work e l e m e n t s . s u m m a r i e s of
. For "mine o p e r a t i o n s " t h e s e c o s t compon-
. c o u l d be overburden s t r i p p i n g , ents for cost
w a s t e rock s t r i p p i n g , o r e min- codes nnnnl t o
. ing, etc. nnnn9

(4) Cost Item--secondary s u b d i v i - Cost Center = nnnoo - contains class

- s i o n s i n major work e l e m e n t s .
F o r "ore m i n i n g " t h e s e c o u l d
be d r i l l i n g , b l a s t i n g , l o a d -
ing, hauling, etc.
(5) Cost Element--the lowest ( f i n -
e s t ) l e v e l of c o s t i n g . Typi-
c a l l y used t o r e c o r d s p e c i f i c
d e t a i l s of r e s o u r c e u s a g e p e r
project period. For " d r i l -
l i n g " t h e s e could be a b l a s t -
hole d r i l l (with a s s o c i a t e d
c r e w ) , b i t s and s t a b i l i z e r s ,
etc.
Each c o s t code may have a number of
c o s t components a s s o c i a t e d w i t h i t .
These c o s t c o m p o n e n t s may be i n p u t ,
may be deduced by a s s o c i a t i o n , o r may
be d i r e c t l y c a l c u l a t e d . Discrete
a c c u m u l a t i o n s of c o s t c o m p o n e n t s a r e
made a s f o l l o w s :
s u m m a r i e s of
c o s t compon-
ents for cost
codes nnnOl t o
. nnn99
Cost D i v i s i o n = nnooo - nnool t o nn999
and so on
A l l mine c b s t i n g o p e r a t i o n s c a r r i e d
o u t w i t h t h e OPCOST S y s t e m a r e con-
d u c t e d u s i n g a s s o c i a t e d t y p e s of c o s t
components w i t h i n the. o v e r a l l p r o j e c t
c o s t code h i e r a r c h y . The o v e r a l l c o s t
code h i e r a r c h y w i t h a l l i t s ind,ividual
c o s t components i s , i n e f f e c t , a n a l o -
gous t o a book of i n d i v i d u a l c o s t i n g
s p r e a d s h e e t s s e t up f o r e a c h a n d
e v e r y c o s t component type i n v o l v e d i n
the project. A sample c o s t c o d i n g
h i e r a r c h y which was s e t up f o r s y s t e m
documentation purposes i s i l l u s t r a t e d
by F i g u r e 6.

10000 PIT OPERATIONS -

PRODUCTION 20000 DEWATERING
11000 CLEARING AND GRUBBING 21000 DEWATERING CAPITAL COSTS
22000 DEWATERING OPEF+TING COSTS
12000 ' OVERBURDEN REMOVAL 22100 Personnel
12100 Dozer Support 22200 Vehicles
12200 to m a t e dumps 22300 . Other Operating Costs

13000 WASTE ROCK PRODUCTION 30000

30100
PIT OPERATIONS
Operations
-- GENERAL
~u~ervisionlVehicles
13100 Pioneering
13200 Production drilling -.waste 30200 Operations - General expense
13300 Production blasting vaste -
13400
13500
Secondary breakage
Production loading
--
vaste 40000
40100
MINING ENGINEERING
Stafflvehicles
13600 Production haulage
waste
-
vaste 40200 . Engineering general apense

14000 ORE PRODUCTION 50000 MINE MAINTENANCE

14100
14200
Production drilling
Production blasting
-- ore
ore
50100
50200
Structures
Equp. LubIServicing
14300 Secondary breakage - ore 50300 hint. Equipment/Vehfcles
14400 Production loading - ore 50400 Maintenance Supervision
14500 Production haulage - ore 50500 Uaintenance Operating Expensea

15000 PIT LIGHTING

16000 *ROADS, DUMPS AND ANCILLARY

Figure 6 . Sample Cost Code H i e r a r c h y

 17th APCOM SYMPOSIUM

Resources- c l a s s e s . For i n s t a n c e , a r o t q r y d r i l l
would r e q u i r e :
Resources a r e t h e f u n d a m e n t a l com-
m o d i t i e s involved i n t h e mining opera- (1) An o p e r a t i n g c r e w c o n s i s t i n g
tions. The c l a s s e s of r e s o u r c e s of a " d r i l l e r " and p e r h a p s a
a v a i . l a b l e w i t h i n t h e OPCOST S y s t e m "helper" f o r a l l d r i l l i n g ,
(and t h e i r g e n e r i c codes) a r e : t r a v e l l i n g , and standby time.
(2) A l l o c a t i o n of a maint;nance
Costs - CAPL - capital costs-
crew comprising t r a d e s m e n and
- COST - operating costs
l a b o r e r s a t an a s s i g n e d r a t i o
and r a t e of s o many m a i n t e n -
Materials - OBDN - overburden t y p e s
a n c e manhours p e r e q u i p m e n t
- WSTE - waste types
- ORE- - o r e types o p e r a t i n g hour. R e p a i r , p a r t s ,
etc., are normally s p e c i f i e d
a s a d o l l a r amount/operating .
Minerals - MNRL - mineral g r a d e s hour.
(apply only t o
ORES) (3) F u e l s and l u b r i c a n t s .
Equipment - EQUP - major equipment
types (4) Various o p e r a t i n g c o n s u m a b l e s
- SERV - s e r v i c e equipment (drill bits, stabilizers,
s t e e l , etc. )
Manpower - GENL - management
- OPER - major equipment The d e f i n i t i o n . by t h e ' u s e r of r e -
operators l a t e d r e s o u r c e r e q u i r e m e n t s ,such a s
- STAF - staff (salaried) t h e above i s a p a r t i c u l a r f e a t u r e of
employees . t h e OPCOST System which d r a m a t i c a l l y
- WAGE - h o u r l y p a i d em- r e d u c e s t h e a m o u n t of t i m e s p e n t
ployees d u r i n g d a t a i n p u t and checking. .

Consumables - FUEL - Fuels Other r e l a t i o n s h i p s between r e -

- SUPL - supplies
R e s o u r c e names, u n i t c o s t d a t a ,
c o s t r a t e s , p r o d u c t ' i v i t i e s , and o t h e r
parameters are' s t o r e d s e p a r a t e l y from
t h e i r occurrences i n c o s t components
w i t h i n t h e c o s t code h i e r a r c h y . This
s o u r c e t y p e s may be d e f i n e d by t h e
user. I n general, t h e s e a r e produc-
t i v i t y o r performance r e l a t i o n s h i p s a s
t h e f o l l o w i n g examples i l l u s t r a t e :
Shovel hours r e q u i r e d l o a d i n g o r e :
= t o n s of o r e t ~ , b e l o a d e d / ~ e r i o d ,

i s done. t o provide c o n s i s t e n t d a t a f o r e s t i m a t e d hourly- s h o v e l

each such c l a s s , f o r s i n g l e s o u r c e
d a t a e n t r y and m a i n t e n a n c e , a n d t o
a v o i d d u p l i c a t i o n of d a t a s t o r a g e .
There may be up t o 99 d i f f e r e n t u s e r -
defined resource types per r e s o u r c e
c l a s s ( e . g . , EQUP 01 : 25 CY ELECTRIC
' SHOVEL, EQUP 02: 1 5 0 TON HAUL TRUCK,
FUEL 01: ELECTRIC POWER, FUEL 0 2 :
DIESEL FUEL, e t c . )
R e l a t i o n s h i p s Between Resource Types
P a r t i c u l a r r e s o u r c e c l a s s e s , most
n o t a b l y t h e major and s e r v i c e e q u i p -
ment c l a s s e s would, i n a c t u a l m i n i n g
p r a c t i c e , r e q u i r e c o n c u r r e n t and d i -
r e c t l y r e l a t e d usage of o t h e r r e s o u r c e
productivity i n ore
ANFO consumed ( l b s ) :
= tonnage t o be b l a s t e d / p e r i o d
powder f a c t o r ( l b s / t o n )
The a b o v e a l g o r i t h m s r e q u i r e t h e
s p e c i f i c a t i o n of u n i t p r o d u c t i v i t i e s
o r u n i t consumption r a t e s f o r t h e
a p p r o p r i a t e r e s o u r c e s and t h e s p e c i f -
i c a t i o n ( a s i n p u t d a t a ) of t h e a p p r o -
p r i a t e r e f e r e n c e q u a n t i t y or mining
schedule f o r t h e c o s t code i n ques-
tion. Hours, s h i f t s , o r any o t h e r
time u n i t can be u s e d a s l o n g a s t h e
u s e r a d o p t s compatible u n i t s t h r o u g h -
out.
 OPCOST - MINE COSTING SYSTEM
Figure 7 i l l u s t r a t e s graphically
t h e v a r i o u s t y p e s of r e l a t i o n s h i p s
t h a t e x i s t between c o s t i n g d a t a e l e -
ments t h a t . a r e i n c l u d e d a s s p e c i f i c
c o s t and q u a n t i t y g e n e r a t i o n f a c i l i -
t i e s of t h e OPCOST System.
Time P e r i o d s
The OPCOST System was d e s i g n e d t o
be used a s a c o s t e s t i m a t i o n - t o o l f o r
o v e r a l l mine p r o j e c t e v a l u a t i o n . The
o v e r a l l project l i f e is defined a s the
t o t a l number of y e a r s f o r mine prepro-
d u c t i o n , p r o d u c t i o n , and s h u t down.
A l l component program o p e r a t i o n s , c a l -
c u l a t i o n s , and t a b u l a t i o n s a r e c u r -
' quirements
r e n t l y carried out for yearly time
p e r i o d s although an a l t e r n a t e t i m e
period basis such a s quarters or
months could be e a s i l y accommodated.
Algorithms
Wherever a p p r o p r i a t e , a l g o r i t h m s
have been i n c o r p o r a t e d i n t o t h e OPCOST
F i g u r e ,7. I l l u s t r a t i o n of the I n t e r r e l a t i o n s h i p
Between O p e r a t i o n a l Data
a p p l i c a t i o n programs f o r s p e c i f i c mine
o p e r a t i o n a l c a l c u l a t i o n s . These algo-
r i t h m s s e r v e a number of p u r p o s e s i n
the cost estimation process, such a s
h e l p i n g t o reduce t h e amount of i n p u t
da t a required and m a i n t a i n i n g t h e
c o n s i s t e n c y of c a l c u l a t i o n s .
T h e r e a r e t h r e e c l a s s e s of a l g o -
r i t h m s c u r r e n t l y a v a i l a b l e , namely:
,(I) Productivity and supply
consumption r a t e s .
(2) Summation and i n t e g e r i z a t i o n
of equipment and personnel re-
(3) Equipment a d d i t i o n a n d r e -
placement scheduling.
Equipment requirements and r e p l a c e -
ments a l o n g w i t h p e r s o n n e l n e e d s a s
c a l c u l a t e d by t h e s y s t e m a r e s u b j e c t
t o review and p o s s i b l e m d i f i c a t i o n by
t h e c o s t i n g engineer.
214 17th APCOM SYMPOSIUM
Generation and Accumulation of
Requirements
I n t h e OPCOST S y s t e m , a h i e r a r c h y
of u n i t mining o p e r a t i o n s i s s y n t h e -
s i z e d t o s i m u l a t e a mining p r o j . e c t
schedule. This h i e r a r c h y of u n i t min-
i n g o p e r a t i o n s i s formally r e p r e s e n t e d
by a s e r i e s of c o s t c o d e s . Each c o s t
code may have a number of c o s t compon-
e n t s d e f i n i n g v a r i o u s mining r e s o u r c e
requirements a s s o c i a t e d w i t h i t . The
c o s t components may be assigned a s in-
put d a t a , o r may be generated from t h e
i n p u t d a t a by running a series of ap-
p l i c a t i o n programs i n a l o g i c a l s e -
quence.
Thus, a s i l l u s t r a t e d i n F i g u r e 7 ,
t h e p e r i o d i c p r o d u c t i v i t i e s . of a
r o t a r y d r i l l may be a s s i g n e d t o a
p a r t i c u l a r c o s t code. From a r e f e r -
ence q u a n t i t y a s s o c i a t e d w i t h , t h i s
code, t h e number of r o t a r y d r i l l oper-
a t i n g h o u r s may. t h e n be c a l c u l a t e d .
A l t e r n a t i v e l y , t h e u s e r may m e r e l y
assign a c e r t a i n p e r i o d i c number of
equipment u n i t s o r a c e r t a i n number of
equipment o p e r a t i n g h o u r s t o a g i v e n
c o s t code.
A t t h i s point, the d r i l l o p e r a t i n g
and maintenance crew work hours, along
w i t h t h e f u e l s and s u p p l i e s consumed
may t h e n be c a l c u l a t e d . A g a i n , t h e
u s e r may c h o s e t o i n p u t t h e s e d i -
rectly. I n t h i s way, t h e t o t a l mine
resource requirements r e q u i r e d t o
c a r r y o u t t h e work i n v o l v e d i n t h e
p a r t i c u l a r c o s t code may be d e t e r -
mined.
When t h i s s e r i e s of g e n e r a t i o n pro-
c e s s e s i s a p p l i e d t o each c o s t code. i n
the' o v e r a l l c o s t i n g h i e r a r c h y , a mass
of i n d i v i d u a l c o s t code r e s o u r c e r e -
quirements i s o b t a i n e d . The o v e r a l l
requirements f o r each r e s o u r c e type
may t h e n be determined by summing , t h e
i n d i v i d u a l c o s t code r e q u i r e m e n t s f o r
t h a t r e s o u r c e type ..
For non-unitary r e s o u r c e s s u c h a s
f u e l s and s u p p l i e s , t h i s s i m p l e t o t a l
w i l l s u f f i c e . However, equipment and
p e r s o n n e l must be a l l o c a t e d i n d i s -
t i n c t u n i t s (1.327 . s h o v e l s o r .16.481
truck d r i v e r s a r e not p r a c t i c a l re-
s o u r c e q u a n i t i t e s !) s o m o d i f i c a t i o n
must be made t o t h e c a l c u l a t e d
amounts. S u i t a b l e i n t e g e r e q u i v a l e n t s
a r e . c a l c u l a t e d by component a p p l i c a -
t i o n programs and,manually modified by
t h e c o s t i n g e n g i n e e r , i f necessary.
The accumulated q u a n t i t i e s of r e -
q u i r e d r e s o u r c e s a r e then u s e d t o de-
r i v e annual f u e l and supply n e e d s and
t o estimate i n d e t a i l . annual c a p i - t a l
and o p e r a t i n g c o s t s f o r t h e m i n i n g
project .
Determination of C a p i t a l and
Operating Costs
Once o v e r a l l resource r e q u i r e m e n t s
f o r t h e mining p r o j e c t s c h e d u l e a r e
a s c e r t a i n e d , t h e v a r i o u s c a p i t a l and
o p e r a t i n g c o s t s can be c a l c u l a t e d . For
f u e l s and s u p p l i e s , t h i s i s a d i r e c t
c a l c u l a t i o n , however, p e r s o n n e l c o s t s
and e q u i p m e n t c a p i t a l c o s , t s a r e a
l i t t l e m r e d i f f i c u l t t o determine.
Personnel c o s t s a r e c a l c u l a t e d on
t h e b a s i s of t h e t o t a l p e r i o d i c i n t e -
g e r manpower r e q u i r e m e n t s f o r t h e
project a s originally calculated or as
s u b s e q u e n t l y m o d i f i e d by t h e c o s t
e n g i n e e r , whichever t h e c a s e may be.
The t o t a l p e r i o d l a b o r c o s t s f o r e a c h
personnel c l a s s i f i c a t i o n a r e then
backcharged t o each c o n t r i b u t i n g c o s t
code p r o p o r t i o n a t e l y . Similarly,
equipment c a p i t a l c o s t s a r e c a l c u l a t e d
on t h e derived o r m o d i f i e d a d d i t i o n /
replacement schedules f o r t h e p r o j e c t .
These a r e , however, not backcharged t o
t h e i n d i v i d u a l c o n t r i b u t i n g c o s t code.
Reporting Functions
. .
Upon t h e completion of t h e "Quanti-
t y and Cost Generation Segment" i n t h e
d a t a processing flow, t h e OPCOST d a t a
ba'se c o n t a i n s a l l p e r t i n e n t c o s t i n g
information f o r the p a r t i c u l a r mining
p r o j e c t and s c h e d u l e . The OPCOST
System i s t h e n u s e d t o g e n e r a t e t h e
f o l l o w i n g series of r e p o r t s :
(1) Summary Resource Reports:
- Major and S e r v i c e Equipment
Requirements
- Major and S e r v i c e Equipment
A d d i t i o n and R e p l a c e m e n t
 OPCOST - MINE COSTING SYSTEM
Schedules
- Major and S e r v i c e Equipment
C a p i t a l Cost Schedules
- Major and S e r v i c e Equipment
M a t e r i a l s and S u p p l i e s
Costs
- Fuel and Supply Usage
- Fuel and Supply Costs
- Manning T a b l e s
- Labor Costs
(2) Consolidated Cost Summary
Reports :
- C a p i t a l and Operating C o s t s
by Cost D i v i s i o n
- C a p i t a l and O p e r a t i n g C o s t s
by Cost Center
- C a p i t a l and Operating C o s t s
by Cost I t e m - .
- O p e r a t i n g C o s t s by C o s t
Division
(3) Unit Cost Summary,Reports:
- Unit Costs per Reference
Q u a n t i t y Schedules by C o s t
Division
- Unit Costs per Mine Product
Q u a n t i t y Schedules by C o s t
Division
(4) Executive Summary Reports:
- A one page r e p o r t g i v i n g by
period ( y e a r ) t h e t o t a l
o p e r a t i n g and c a p i t a l
c o s t s of t h e mine p r o j e c t
schedule
These r e p o r t s d i s p l a y p r o j e c t c o s t
i n f o r m a t i o n i n understandable and con-
c i s e formats. Some examples a r e given
i n t h e next s e c t i o n .
OPERATIONAL USAGE
Data I n p u t Coding
A l l i n p u t d a t a t o t h e OPCOST System
i s e n t e r e d v i a s t a n d a r d 80-column f o r -
mated d a t a c a r d s . The f i r s t 2 4
columns of a t y p i c a l i n p u t d a t a c a r d
have s t a n d a r d d a t a f i e l d s w h i l e t h e
remainder have v a r i a b l e f i e l d s depend-
i n g on t h e c a r d t y p e . The s t a n d a r d
data f i e l d s a r e used a s s o r t i n g keys
by t h e v a r i o u s c o m p o n e n t p r o g r a m s
w i t h i n OPCOST and, t h e r e f o r e , t h e u s e r
can i n p u t t h e c a r d s i n any o r d e r .
The i n p u t d a t a t o t h e OPCOST system
is a l l o c a t e d t o various 2-character
c a r d t y p e s by pre-determined p u r p o s e s
and/or hierarchical position. Card
t y p e s used a r e a s f o l l o w s :
A Series - Control Information
B Series - Data Base D e f i n i t i o n
C S e r i e s . - Mine Schedule D e f i n i t i o n
D Series - Resource Group and 1 t e m
Input
E S e r i e s ' - Cost,. Code D e s c r i p t i o n ,
Resource Assignment, and
P e r i o d Data I n p u t
X S e r i e s - R e c a l c u l a t i o n o f Re-
s o u r c e and Cost Codes
To f a c i l i t a t e c h a n g e t o t h e d a t a
base once i t is c r e a t e d , a s o - c a l l e d
M.A.D. code has been i n c o r p o r a t e d i n t o
t h e standard data f i e l d s . T h i s code
permits the user t o i d e n t i f y whether
he i s w i s h i n g t o Modify (M), Add t o
. ( A ) , o r D e l e t e from (D) t h e e s t a b -
l i s h e d c o s t i n g d a t a base i n accordance
w i t h t h e d a t a i n p u t on t h a t card.
Although one might g a i n t h e impres-
s i o n t h a t t h e t a s k of d a t a i n p u t cod-
ing i s l a b o r i o u s , it i s however,
r e l a t i v e l y f a s t once t h e u s e r h a s a t
h i s f i n g e r t i p s a l l of t h e n e c e s s a r y
information. A l l o c a t i o n of c o n s t a n t
amounts of cash, p e r s o n n e l , equipment,
e t c . o v e r many y e a r s i s e a s i l y done
u s i n g a s t a r t and end p e r i o d d e f i r i i -
tion. Figure 8 p r o v i d e s a sample
l i s t i n g of a p a r t i a l OPCOST i n p u t d a t a
file.
V a l i d a t i o n of processed i n p u t d a t a
can be r e a d i l y a c h i e v e d by c h e c k i n g
v a r i o u s formated r e p o r t s . Examples of
representative reports a r e ' i l l u s t r a t e d
f o r t h e r e s o u r c e , group d a t a ( F i g u r e
9), t h e u s e r d e f i n e d c o s t c o d e h i e r -
a r c h y ( F i g u r e l o ) , and p e r i o d i n p u t
d a t a ( F i g u r e 11). I n t h e l a t t e r c a s e ,
the u s e r is s u p p l i e d with formatted
r e p o r t s of a l l period d a t a a s s i g n e d by
him t o r e s p e c t i v e c o s t c o d e s , e . g . ,
lump sum c o s t s , s c h e d u l e d p r o d u c t i o n
 17th APCOM SYMPOSIUM

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F i g u r e 8. P a r t i a l I n p u t , Data L i s t i n g
 OPCOST - M~NE.COSTINC
SYSTEM
q u a n t i t i e s , p r o d u c t i v i t i e s , manpower
and e q u i p m e n t n e e d s ,: f i x e d s u p p l y .
r e q u i r e m e n t s , consumption r a t e s , e t c .
Having n o t i c e d an e r r o r , t h e u s e r
i d e n t i f i e s only t h a t d a t a e n t r y which
i s wrong on a s u i t a b l e "M" o r m o d i f y
i n p u t c a r d and a d j u s t s t h e d a t a b a s e
c o n t e n t s w i t h t h e a p p l i c a b l e OPCOST
program.
Resource Requirements
Having v a l i d a t e d t h e c o n t e n t s of
the costing data base, t h e user then
proceeds. t o process the data u s i n g
component OPCOST programs. t o c a l c u l a t e
r e q u i r e d equipment hours by c o s t code
and accumulating t h i s t o y i e l d u n i t s
r e q u i r e d by p e r i o d ( F i g u r e 1 2 ) . ' The
u s e r may m o d i f y t h e d e r i v e d ' i n t e g e r
r e q u i r e m e n t s i f he so d e s i r e s . E q u i p -
ment r e p l a c e m e n t s c h e d u l e s . a r e - t h e n
d e r i v e d ( F i g u r e 1 3 ) which a g a i n can be
modified.
Following equipment c a l c u l a t i o n s ,
t h e s y s t e m p r o c e e d s to. e v a l u a t e and
c o n s o l i d a t e manpower n e e d s f o r t h e
p r o j e c t under each o p e r a t o r , wage, and
s t a f f c l a s s i f i c a t i o n . An e x a m p l e r e -
p o r t i s g i v e n i n F i g u r e 14. c a l c u l a t e d
r e q u i r e m e n t s can a g a i n be smoothed o r
modified by t h e u s e r . Fuel and s u p p l y
needs a r e s u b s e q u e n t l y d e r i v e d . ' .
Summarir r 6 s o u r c e . t a b l e s can a l s o .b&
g e n e r a t e d f o r :. e q u i p m e n t r e p u i r e -
ments, a d d i t i o n s ' , and r e p l a c e m e n t s ,
o p e r a t o r , wage, and s t a f f n e e d s , a n d ;
f u e l and supply, consumptions p e r
p e r i o d ( F i g u r e 15);
. .
Cost R e p o r t i n g . , . .
T h e f i r s t s e t of c o s t r e p o r t s
available to the user through the
OPCOST S y s t e m . a r e t h o s e a s s o c i a t e d
w i t h r e s o u r c e s ; namely manpower c o s t s
( o p e r a t o r , wage, s a l a r y ) , e q u i p m e n t
c a p i t a l a d d i t i o n s , and r e p l a c e m e n t s
(major and s e r v i c e e q u i p m e n t ) a l o n g
with m a t e r i a l s , s u p p l i e s , and f u e l
c o s t s . An example i s given i n F i g u r e
16.
C a p i t a l and o p e r a t i n g c o s t r e p o r t s
by c o s t code a r e a l s o a v a i l a b l e t o t h e
u s e r a t v a r i o u s l e v e l s . ,of d e t a i l ,
i.e., a t t h e Cost D i v i s i o n , C e n t e r ,
and I t e m l e v e l . An e x a m ~ l eof s u c h a
report a t the cost center l e v e l i s
given i n , F i g u r e 17. A t the highest
summary l e v e l on t h e o t h e r h a n d , a n
o v e r a l l e x e c u t i v e summary i s p o s s i b l e
w i t h t h e System ( F i g u r e 1 8 ) .
CONCLUSIONS .
I n c o n c l u s i o n , i t i s t h e o p i n i o n of
t h e a u t h o r s t h a t t h e OPCOST System de-
scribed i n t h i s paper c o n s t i t u t e s an
e x t r e m e l y powerful t o o l i n t h e compre-
h e n s i v e e v a l u a t i o n of r e s o u r c e r e -
q u i r e m e n t s and m i n i n g c o s t s f o r a n y
proposed m i n e r a l v e n t u r e . The s y s t e m
h a s been s u c c e s s f u l l y u s e d w i t h i n
Golder A s s o c i a t e s ' m i n i n g c o n s u l t i n g
s e r v i c e s and c a n be a p p l i e d a t a n y
s t a g e of p r o j e c t e v a l u a t i o n with vary-
i n g l e v e l s of d e t a i l .
OPCOST h a s been d e s i g n e d f o r e a s y
u s e and p e r m i t s t h e u s e r t o m a i n t a i n
t o t a l c o n t r o l over the d e f i n i t i o n ,
n o m e n c l a t u r e , and a s s i g n m e n t of r e -
sources t o a cost reporting hierarchy
a l s o of h i s own choosing.
D u r i n g t h e c o u r s e of a n OPCOST
e v a l u a t i o n , t h e u s e r may e a s i l y modify
any i n p u t parameter; f o r e x a m p l e , a
p r o d u c t i o n s c h e d u l e , an equipment a s -
- s i g n m e n t , e t c . , and q u i c k l y e v a l u a t e
t h e e c o n o m i c s e n s i t i v i t y of s u c h . a
change o r make a c o m p a r i s o n b e t w e e n
two a l t e r n a t i v e s . The u s e r i s o f f e r e d
a wide range of w e l l f o r m a t t e d r e p o r t s
d i s p l a y i n g r e s o u r c e r e q u i r e m e n t s and
c o s t s from which t o draw c o n c l u s i o n s .
The a u t h o r s w i s h t o e x t e n d t h e i r
a p p r e c i a t i o n t o Golder A s s o c i a t e s and,
i n p a r t i c u l a r , t o Anthony E d e y a n d
P e t e r S t a c e y f o r s u p p o r t i n g t h e on-
going d e v e l o p m e n t of OPCOST and f o r
t h e i r p e r m i s s i o n t o p r e p a r e and pub-
l i s h t h i s paper. P a r t i c u l a r thanks
a r e a l s o due t o David T u t t o n who ex-
tensively contributed t o the t e s t i n g
and documentation of t h e system.
 17th APCOM SYMPOSIUM

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 OPCOST - MINE COSTING SYSTEM

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-1
I
-1
I
I
lea.
1
teas
I
trar
I
I
S L
~vas

10000 P I 1 OPS. PPWWTIO*

llOO0 CLCARlNG AM0 CRUoIIuC
11004 ALLOUAYCE FOR TOOL1 COO1 0 1.100 0 0 0 0 0 0 0

11100 PIOMCERINC
1101 ALLIAMCL FOR CONTRACIIUG COO1 0 IO,000 20.000 201000 801000 0 0 0 0

13100 PROOUCIIOU aLAaiIMc-uav.

13110 BLASTIMG RELAlCO COSTS
11112 CONTRACI CHARGE CDll 0 8 3.000 1.000 3,000 3.000 1,000 3.000 3.000

1I000 ORE PR00UC110~

11200 PnOoUCTIOu OLA8I1MC.OIE
11210 BLAS1IMG RELATED COSTS
14212 CONIRACT CMA~CL Coal 0 0 0 10000 1.000 1.000 1.000 1.000 1.000

11000 PIT LlCl+ltNG

15001 IMS1ALLAIIOM COST8 CACL 0 10,000 10,000 10,000 0 0 0 0 0
11008 OPERATING COST1 COOTO 10.000 10.000 10.000 10.000 10.000 10.000 10.000 10,001

10000 NINE OElATERlUO

21OOO Ot*ATERIIC CAPITAL COITS
21010 EX-PIT DEIATERIMC CAPL 0 200.000 100.000 ZOOIOOO 100.000 100.000 0 0 0
21020 I * - P I 1 OLwATEnIMG CAPL 0 0 bO.000 bO.OOO bO.000 b0.000 bO.OOO bO.OOO
21030 MAIN OI8CMARGL CAPLO 10.000 10.000 10.000 l0,OOO 10.000 10.000 IO.000 10.000

PZOOO DL-ATERIMS o m . coals

22100 REPAIRS AM0 I U P I L I L 8 COST 0 810,000 110,000 110.000 110,000 I50.000 150.000 110.000 50.000

10000 P I 1 OPS. GENLRAL

30200 OPS. GENERAL EXPENSE
30210 OPLRATIMO SUPPLIES COST0 110.000 1501000 150.000 110.000 150.000 150.000 150.000 150,000

40000 M1NING ENEIMEtRlNb

10200 LUG. 6ENEP.L EXPENSE
40210 MATERIALS AN0 8UPPLILS COSl 0 20.000 10,000 50.000 50,000 50.000 50.000 50.000 50.000

F i g u r e 11. T y p i c a l P e r i o d I n p u t Data Report

COLOLR ASSUCIAIES - OPCOSl SVSTEM BIG LAWBEIT PIT IOA811 11MIYG INC.1

....................................
CALCULAIED MAJOR EWIPMEYT USACE FOR I 321 €YO-DUMP TRUCK (EOUP I)

EACH UNIT OPLRAIEI b1IO. l+OUIISIVtAR

Coal COO€ *1ERAIC*V

PER100
YEAR .
*
leal
-1
1912
.I 1
lP13
UTILIIATIOW
IPS4
2
*
1
IP15
69. CERCLNT
4
l91b
S
IP11
b
I981

11001
13611
1 2 1 END-DUMP
111 EYO-OUMP
TRUCK
IPUCK
LOUC
EOUP
4
I
3,000
. ia.aii n.qai tq.41i *.PO; 4.1d
11b21
14501
3 2 1 END-DUlP
321 LMD-DUMP
TRUCK
lRUCl
COUP
EOUP
4
4 : 1
I1,OZI
1.009
20.S13
IeOOP
15.b25
P.346
10.03i
P.1bL
b.11;
9.34L

.
TOTAL HOURS REOUIRLD COUP I 1,001 3 1 31.b53 1P.I41 31,151 19.111 10.119 1b.111

FRAC1IOMAL SUM REOUlRtO LOUC I 0.10 *.DL 1 I 1 L.9b 7.00 1.16

MUM0EI I 0 a € OINLO LOU? I e 1 1 I

Figure 12. C a l c u l a t i o n of Major Equipment Requirements

GOLOER ASSOCIAIES OPCOOTS v 8 l E ~*UC

I. L A n n t v l PIT IUASIS MININL 1-c.1

-
-...~..~..*.-~-.~.-...-...-..-.--.-......-....-.*.....---...-..-..-.*
MAJOR LOUIIRENT RLCLACEMEMT FOR 100Ku OOZERlnlPPER~OPlL) COUP 1

IOUIPMLMI L l F L m 11000 HOURS

PERIOD -1 -1 I I 3 4 I l
VEAR s 1981 I ? I IP14 1911 I916 1911 1988

IOTA1 HOURS RLOUlRtD LOUP 5 11,Sbb 11.415 1.161 4,191 1.101 3,SOV 3.309 J,i09
MIYIIUM YO. TO BE DINE0 COUP 5 1 1 2 I 1 1 I 1
NUMBER ADDED EDUP 5 3
YUMBt. PLTlREO COUP 5 3
NUM0ER OM HAM0 COUP 1 3 3 3 1 1 3 I
MUMOtR REPLACED tPUP 1 ..I

F i g u r e 13. Equipment Replacement C a l c u l a t i o n

 17th APCOM SYMPOSIUM

SOLDLR A ~ S O C I A ~ L S - O P C O ~8 ~v a i t m . UIC LAMIILMI PI IOAIO MINING INC.I

-
.*.-..--....*...-.
OPCRA10R USICE FOR MEIVT COUP. OPERIIOR C OPCR 2 I

PERIOD .. -a -I I
MANNING F I C l O R

2
.
L C l U A L L l O P t R A l t 8 1150.

3
1.100
MOURIIVEAR

1
a .
5 b
VEIN I981 l98l 1901 1981 I985 I98b 1981 I908
COO1 COOL Ml€RlRCMl
3oOIIn O O Z E R / R I P P E R ~ O P l L I OCLR a
11001
la101
l3lOl
3 0 0 1 1 OOZER/R1PPIR1OPlLl OPER 2
300NM OOZER/RIPPLRIOPlL) OPER 2
LOO
8.942
1,000
. 8,912
lrOOO
1,111
IrOOO lr000
l32Ol 200MM 1 0 1 1 1 1 O R I L L OPER I S,29l 1,630 1,299 IrObI aeb1b Ieb1b a4
13401 P N L U I L l I C IMPLCIOR OPER 2 150 150 550 550 150 510 550
11502 300NN O O Z t R / R 1 P P E R ~ O P I L l OPLR 1 550 550 550 550 550 550 550
11101 ZOOM* R O l I R T D R I L L OPLR 2 bbl 992 992 1.321 In321 1.323
14301 P N t U M A l I C IMPACTOR OPER 2 200 a00 200 a00 200 200
11302 3001. o O z E R / R l P P € R ( O P r L l UPtR a 200 200 200 200 200 200
14402 JOORM OOZER/RLPPER(UP1Ll OPER 2 550 550 550 550 ' 530 550
I~OII 3 0 0 1 1 ~O O Z C ~ ~ R I P P ~ R ~ O P T LOPLR
I z 2.ooi 2,ooi a,ooo 1.000 1.000 a.000 ~,OOO a.000
16012 1 8 5 1 1 CRAOER OPERZ 6,942 8 9 2 8.911 8.912 8.9.2 1 8.9.I Or911
1bOlI COMPIClOR OPLla 2,000 ZrOOO 2.000 2rOOO 1,000 P.000 2.000 2.009

l O l A L MOUR8 RLOUIYEO OPER 2 2 1 0 28,216 25.lSS 2I.283 I9r9SJ 18,961 IO.Vb1 11.17S

l R l C l I O Y A L 8U* REYUIREO OPER 2 11.01 22.a1 19.54 lb.15 15.14 11.30 11.38 11.03
NUMBER 1 0 I t LMPLOVEO m OPLR 2 18 - a r 20 20 Ib 11 IS 15 IS

COLOLR b S S O C l l l L 3 - OPC081 STSlE#l 8 1 6 L I M B L R 1 P I 1 ( U A S I S MINING 1NC.l

> .

..-.-...*-..---...-.-.--...-..-..-.
MIJOB EQUIPMEN1 REOUIREMCNI SUMMAYI

PERIOD.
TEAR . -2
1981
-1
1982 1903
I 2
1981
3
1985
. . . .
1986
I
I981
S b
I988
IJMJ SCRIPER
ZOOM1 ROIART OWILL
a.bM3LLEClRICSHOVEL
E~UPI'
COUP 2
EOUP3
- 2
.. 4
I
I
E
I
I
4
I
I
I
3
1
3
I
2
I
3 2 1 LmO-OUMP 1RUCn EOUP I 2 9 9 9 9 1 1 1
100*. D O I E R / ~ I P P E R l O P l L l EOUP 5 3 3 2 I I I I I

.
l 8 5 R U GRADER EOUPb 2 2 2 2 2 2 2 2
WAltRlSIMOER l R U C l EOUP 1 I I I I I I I 1
PNEU*IlIC1*PAClOR LOUPO I I 1 I I I I
COnPACloR COUP9 I I I I 1 I I I

1 0 l A L AMOUY1 11 24 22 21 20 I1 I1 I 3

. .~,
F i g u r e 15. ~ e s o u r c e : t . ~ e ~ u i r ' e m e nSummary
ts Reports

1: GOLOLR A 8 8 O C I I l E S - OPCOSl S T S l t M BIG L A U Y l P I 1 COAS18MININC 1W.I

. -

I ELCCIRICIAN
PERIOD
TEAR .
*
WAGE 1 48.232
I901
-2
2
-I
198: 198: 198: I 190: 198:I

HEAVT OUT1 MECHANIC *Act I 410,ObU

wELDER~~ACMIN~S~ *AGE 3 24.IIb
PUMP SERVICEMIN WAGE 1 24,IIb
MIINlE*INCE MtLPlR WAGE S !bI.913
IIREMAN NICE b 201240

. ¶MOP/IIREHOUSt OPLRblOR
FIELD ~EC~INIC
LAUO(ILY
NICE 1
~G
IE 8
RAGE 9
20,210
'313.418
310.024
LEAU MANO MCCMAMlC WAGtlo 25.839.
IUTO~OllVLMECWANlC MACE11 9b1419

I I

F i g u r e 16. R
. e- s o u r c e Cost Summary ~ e ~ b r t ?
 OPCOST - MINE COSTING SYSTEM

GOLOLR ASSOClAltS - OPCOSl S I S t E * 1 1 5 LAMlltIIl P I 1 IOASIS MIYINC INL.;

.................................................
.
C A P I I I L AND OPLRAIIMC COSl SU**AYI BV COST CCNIRL

PLY100 -2 -1 I 2 3 1 5 b
7tAR * 1911 I982 1911 I 1915 198b 1911 1988

10000 P I 1 UPS. PRooUcrloY

11000 CLEARING AM0 CRUWBIYS
-LABOUII C O ~ I 249.133 0 0 0 0 0 0 0
-*
8 a coal

COSI C L Y I N ~ IOIAL
........................................................................
15b.v~)

41b.ObV
o
0
o

0
o

0
o

0
o
0
o
0
o

18000 OVLIIBURDCY RLIIOVIL

la100 00ZER SUPPOIII
-LABOUR COST 397,150 38l.bI4 200.290 0 0 0 0 0
-M L S COST

COST CEYIRC I O I A L
........................................................................
5

15Or73.
353.115

135.llP
176.731

311,028
0

0
0

0
0

0
0

0
0

11100 I 0 I A S I C OUMPl
-LABOUII COST 04br131 150.921 19b.Sbl 11,109 0 0 0 0
-*L 8 COST
........................................................................
1bO.114 48br813 152.839 3b.151 0 0 0 0

..... 1UMMAII7
C O I l CLYII)L TOTAL

.
UVCRUURDLW IILMOVAL
911,S51 911,110 2VV.ZOb lO11b0 0 0 0 0

-LAWOUR COSl
-*
b 8 COST

D I V I S I O N lO1AL
........................................................................
811.011
818,189

1.662.285
836,Slt
810,280

l.blb.859
31b.bSl
329051b

btb.253
31,109
Ib.351

1O.lbO
0
0

........................................................................
0
0
0

0
0
0

0
0
0

1 ~ 0 0 0 r b a l r ROCK PRODUCIIOW
13100 PIONELRING
-LABOUR COSI ez.13~ v1.11o sv.13r rl.~so o o o o
-I( L 8 COSI

COSl CLNlIIC TOTAL

........................................................................
59.524

15lrbbl
59.528

1S1.238
19,528

119.2b1
59,528

150.654
0

0
0

0
0

0
0

13200 PRUDUCIIJJN ORILLINS-NS7.

-LIUOUII CO~I 0 3bZ11b2 3Z1.181 301.210 2bb.995 I1b.201 18b.195 b1.313
-*
L S COSl
........................................................................
0 43l.lb5 371.215 150.321 323.310 215.582 215.582 10.Ob1

COST CLYIRL TOlAL 0 193,b21 100.151 b51.531 5VO.3bb I01.189 .01,178 131#031

F i g u r e 17. C o s t Summary R e p o r t by Cost C e n t e r

- .
.....................................
M I N I N G COST E X E C U T I V E SUHMARY REPORT

EXPRESSED I N THOUSANDS (0001S)

---------------------------------
I I MAIERIALS tOTAC I TOTAL I TOTAL 1
1 I LABUR t AND 8 OPERATING 1 CAPITAL I MINING 1
--.----------------------------.----
I
I
-2 I 1981
YEAR

$2,612 t S2s527 8
1

$ 5 ~ 1 4 0I
COSTS

S6.843 I Slle9R4 I
SUPPLIES COSTS I COSTS I COSTS I

1 1 1982 I $01186 t Sb.605 8 $ 1 0 ~ 8 3 3I 56.463 1 $17,297 1

- - ~ - - - - ~ - ~ - - - - . ~ ~ - ~ ~ ~ - ~ - ~ ~ ~ ~ - ~ - ~ - - - ~ ~ ~ * - - - - ~ - ~
PRE-PRODUCTION I Sbr79P t 59.173 8 115.973 1 $13~307I 529,282 1
--------------.---------------------w-o-.--*-------.-----.---------*------------
I 1 1983 I $3,151 t $6,056 8 $9,808 1 S44b I $10,255 I
1 i? 1984 1 $3r449+ $5.7108 $9~1601 s333 I $9.U94 1
I 3 1985 1 13.251 t 55.302 8 S8rSVU I $675 I $9.270 I
1. 4 lqnb 1 $21901 * $4.501 8 $7.443 I $590 1 $8.034 1
1 5 1987 1 $2~902 $4.539 8 $7.401 I $239 I S7~b8l 1
1 6 1988 1 S2129b t $2.957 S5r25S I $70 I $5.326 I
-.----------------------.---o.-------------------------..-----------------------
PRODUCTION 1 $18.553 t SZ9.149 8 147~705I $20356 1 S S O D O ~ QX
--------------*----.*--------**--------.-----w-----.----------------------------

--------.-------.---------------------.------------------*.---------------------
PROJECT TOTALS I $25~353t I $38,323 8 $63.679 1 $15,664 $79,396 1

F i g u r e 18. E x e c u t i v e Cost Summary R e p o r t