SciELO - Scientific Electronic Library Online

 
vol.115 issue8Investigation into strata behaviour and fractured zone height in a high-seam longwall coal mine author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Journal of the Southern African Institute of Mining and Metallurgy

On-line version ISSN 2411-9717
Print version ISSN 0038-223X

Abstract

MOHUTSIWA, M.  and  MUSINGWINI, C.. Parametric estimation of capital costs for establishing a coal mine: South Africa case study. J. S. Afr. Inst. Min. Metall. [online]. 2015, vol.115, n.8, pp.789-797. ISSN 2411-9717.  http://dx.doi.org/10.17159/2411-9717/2015/V115N8A17.

Capital cost estimates are important in decisions on whether a project will be approved, mothballed, or abandoned. In South Africa, junior coal miners do not have extensive databases of historical projects from which to estimate capital costs. The purpose of this paper is to establish formulae that can be used for estimating capital costs of developing coal mines in a coal-producing country, using South Africa as a case study. The costs are estimated to an error of magnitude level of -30% to +50%, which is suitable for a concept study level, using a parametric estimation technique. The study uses data from completed coal mining projects from selected coal-producing countries. Three formulae are developed and presented for estimating capital costs of underground bord and pillar, surface shovel and truck, and dragline operations.

Keywords : coal mining; capital costs; parametric cost estimation.

        · text in English     · English ( pdf )

 

Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License