Feasibility Study Cost Estimates

©2002 Dr. Bradley C Paul

Feasibility Study
 Processes are actually worked out and
planned
– checked for technical flaws
– checked for permit flaws
 Format
– Pre-feasibility may give you a lot of factored
cost estimates
– Start Shifting big ones to itemized cost
estimates
– Itemized estimates become more detailed
Feasibility Study Overviews
 Major Cost Items are Identified
– Quotes are secured on major cost items
– Minor items tend to be listed with general
comparison cost estimates attached.
 Important error avoid - missing and double
counting.
Pre-Feasibility/ Feasibility Contrast

 Major Cost Items from Pre-Feasibility move

either to Itemized Cost format or are
expanded
 Example - Our Mine Shaft could easily be a
big cost
– Advance rate likely to be 8 feet per day using 3
eight hour shifts in solid
– Only get 2 feet day through first 200 feet of
unconsolidated
– Lets Detail the crew
Shafting Crew
 Typical Sinking Crew would be 5 people
– 4 laborers – 1 supervisor
– doing rounds, support ect. (from SERPA)
– wages $15.46/hr (1997 base from WMCS)
– 4*24*$15.46 = $1,484/day
– Time 100 days for first 200 ft
 69 days more for next 550 ft through solid rock
– 169 days at $1,484/day = $250,823
– I’ll deal with supervisor later
Support People
 Engineering/Technical Crew
– 1 person (some would use 2) (3 for 3 shifts)
SERPA
– $16.15/hr 1997 cost WMCS
– $388/day * 169 days = $65,504
 Mechanical Crew
– 2 people (6 for 3 shifts) SERPA
– $20.98/hr 1997 cost WMCS
– $1007/day*169 days = $170,190
Surface Crews
 Surface and Yard Workers 2
 Rate $11.89/hr
– 2*$11.89*24*169 = $96,452
 Sinking Hoist Operator
– $16.50/hr*24*169 = $66,924
Supervisory Crews
 1 supervisor/shift $23.94/hr
– $23.94*24*169 = $97,101
 Total Labor Cost
– $746,994 say $747,000
 Indexing Labor
– $747,000* 17.89/16.15 = $827,500
The Burden of Burden
 Workers get fringe benefits
– health, vacation time etc.
– government mandated programs
 social
security / medicare / unemployment / workers
compensation
 Often Expressed as a percentage of wage
– Quarries around 30%
– Metals commonly around 40%
– Some coal may be 60%
– WMCS estimates 36% for Shaft Sinking
Dropping the Burden on the Project

 $827,500 * 1.36 = $1,125,000

 Explosives Cost
– Rounds at 4 lbs/ton
– Need to know concrete thickness
 have about 15 inch thick (some squeeze for
horizontal stress)
 for 20 ft finished diameter - need 22.5 feet
– with some over-excavation 23 feet
– Rock density about 170 lb/ft^3
 35.3 tons per foot of Advance
Having a Blast
 35.3 tons/ft * 4 lbs/ton = 141 lbs of
explosive per foot of advance
– 106,000 lbs @ $1.54/lb = $163,000
 At about 1 round shot/day
– 110 caps/day * 169 days = 18,590 caps
– @$1.81 each = $33,650
 Chord and Supplies about 50% of caps (no
boosters here)
– $16,824
Breaking Cost
 $213,500 for explosives
 Drilling Consumables at about 25% of
explosives
– $53,400
 Breaking Cost (less labor counted
elsewhere)
– $267,000
 Index to end 2002
– $267,000 * 149.7/149.1 = $268,000
Non-Labor Mucking Costs
 At $2.50/ton (include disposal)
– 35.3 tons/ft * $2.5 = $88.30/ft
– for 750 ft $66,216 (current cost)
 Concrete Cost
– 23 ft outside diam - 20 ft inside
– 3.75 cubic yard per foot of advance
– Concrete at $80/cubic yard delivered to site
– $225,000 for concrete
Other Supplies
 Steel cost at about 1.5 times concrete
– $337,500
– includes materials to advance utilities down
shaft and put in guides for skips
 Concrete and Steel
– $562,500
 10% for misc supplies
– $56,250 total
 Supplies Subtotal $618,750
Direct Cost of Shaft
 Labor $1,125,400 + Breaking $268,000 +
Mucking $66,200 + Supplies $618,750
 $2,078,350
 10% contingency $2,286,200
 15% contractor mark-up and mobilization
– $2,629,000
 Note that we did consider some site specific problems with
large amounts unconsolidated Overburden and ground
stresses
Pre-Feasibility / Feasibility
Contrast
 At Order of Magnitude just scaled off of someone
elses approximate cost
 Pre-Feasibility was either a factored cost estimate
or a simple itemized cost estimate (ie cost per foot
of shaft)
 At Feasibility stage it became a much more
carefully itemized exercise
– we were still flakey on cost of service lines pipes
 As move to Budget Authorization likely bring in
contractors to bid specifically on the job