Coal Cost Guide Cost Indexes for Surface and Underground Coal Mining and Processing (Preparation)

Coal Cost Guide Cost Indexes for Surface and Underground Coal Mining and Processing (Preparation)

Cost indexes provide a means of adjusting out-dated cost information for the effects of inflation. They are based on statistical averages of costs for specific items and time periods. Following are the composite indexes for capital and operating costs for each of surface and underground coal mining and coal processing (preparation) operations. Indexes for specific cost centers, e.g. labor, equipment, transportation, fuel, explosives, tires, electric power, natural gas, and industrial chemicals are available by subscription to Coal Cost Guide.

The CostMine Canada CCG indexes are composite indexes representing the cost of developing and operating a typical coal mine and preparation plant 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 listed in the Coal Cost Guide (printed version). The surface mine base model is a typical truck-dragline-excavator operation mining 45,000 short tons (40,800 tonnes) coal per day. The underground mine base model is a 8,000 short tons (7,258 tonnes) per day longwall operation using using continuous miner development and ramp access and LHD-conveyor haulage. The plant base model is a 1,400 short tons (1,270 tonnes) per hour heavy media operation.

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.

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