Every why hath a wherefore

Simplified Cost Models For Underground Mine Evaluation: A Handbook for Quick Prefeasibility Cost Estimates

Reader A was kind enough to send me this link a few days ago and, having got round to using it last night (was busy A, thank you), it gets immediate mention here on the blog because the free download paper attached to that link is excellent source material for those of us who regularly run ballpark numbers on mining projects.

If you only pay attention to one post on this humble corner of cyberspace this week, this is the one. We leave you with the abstract from the link page, hopefully it whets your appetite.


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.

1 Comment

    Thank you for the link to this informative document.


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