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Mining Cost Service Indexes: Surface & Underground Mining & Milling Operations

The Cost Data and Advice You Need to Make Informed Mining Decisions

Mining Cost Service Indexes: Surface & Underground Mining & Milling Operations

The MCS Canadian indexes are composite indexes representing the cost of developing and operating a typical mining and milling operation in Canada. Separate indexes are listed for surface mine capital costs, surface mine operating costs, underground mine capital costs, underground mine operating costs, mill capital costs, and mill operating costs. Composite proportions are determined from base model estimates with cost distributions published in Mining Cost Service. The surface mine base model is a typical truck/hydraulic excavator operation mining 10,000 short tons ore and 20,000 short tons waste per day. The underground mine base model is a 10,000 short tons per day room and pillar operation using conventional drilling and blasting, with shaft access and LHD and truck haulage. The mill base model is a 10,000 short ton per day single product flotation mill.

Cost indexes provide a means of adjusting outdated cost information for the effects of inflation. They are based on statistical averages of costs for specific items and time periods. Following are the Mining Cost Service composite indexes for surface and underground mining and milling operations. Indexes for specific cost centers, e.g. labor, equipment, transportation, are available by subscription to Mining Cost Service.

Note: Beginning with January 2001 data, Statistics Canada began publishing labor data based on the North American Industry Classification (NAICS) rather than the Standard Industrial Classification 1980 (SIC80). This resulted in some minor changes to all the MCS indexes for Canada. The current and historical MCS indexes have been adjusted to reflect the new classification system.

Notice about change in basis: As of January 2009, all CCG indexes for capital and operating costs were re-stated to reflect a change in estimating methods by Statistics Canada for Survey of Earnings, Payrolls, and Hours (SEPH) for construction and mining employees. CCG indexes from January 2001 to present are affected and the new indexes are provided here. Indexes prior to January 2001 remain unchanged.

Mining Cost Service (MCS) Indexes for Canada
Surface MineUnderground MineProcessing/Preparation
YearMonthCapital Cost IndexOperating Cost IndexCapital Cost IndexOperating Cost IndexCapital Cost IndexOperating Cost Index
2010 Jan 135.9 155.1 131.7 150.5 136.1 146
2010 Feb 134.5 149.7 130.6 144.9 135.4 143
2010 Mar 135.4 153.4 131.2 148.4 135.7 144.1
2010 Apr 132.6 145.2 128.6 138.6 133.3 139.8
2010 May 133 145.8 129.5 140.9 134.2 142.8
2010 June 132.4 144.2 129.1 139.8 133.3 141.7
2010 Jul 131.5 143.4 128.7 140.2 132.2 144.2
2010 Aug 132.8 147.2 129.6 144.1 133 146
2010 Sep 135.4 153.3 131.7 149.9 135.7 148
2010 Oct 134 148.3 129.9 142.2 134.7 143.6
2010 Nov 135.8 152 131.3 145.3 136.7 145.7
2010 Dec 138.4 154.6 133.5 147.3 140.5 147.9

Data revised on June 22, 2011.

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