Document Type

Article

Publication Date

2023

Abstract

This handbook provides simplified cost models for evaluating underground mines. Regression analysis is used to generate capital and operating cost equations for each model in the form Y = AXB, where Y is the cost estimated and X is the assumed production capacity in tonnes per day. A and B are constants determined by the regression analysis. Equations are developed for operating costs in five subcategories: equipment operation, supplies, hourly labor, administration, and sundries. Subcategories for capital costs are: equipment purchase, preproduction underground excavation, surface facilities, engineering & management, contingency, and working capital. Cost models are developed for eight underground mining methods.

This revised 2023 edition also includes a new section on cost indexes to update the models for inflation. Two appendices are also added with an example problem and an expanded discussion of cost indexes.

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