Basic Estimated CA 00 Kate

!
-^^
iV^.
"^0^
ô\y
^y^-^^.
,0
vO
^;-
^.
V
-^^
G^
^5
'o
'
-V
-^^0^
<".
iy
^ %.^' :;^'v
^*.
-'
^-^^^
^y^m.'
.<^'^
"-tîK^/
ô-n^
'>:^^/
<.Ho^
i^ê^ô'
.o^_,
^"^^.
\/
.^'^^j!
.0-'
^0
^^^
o%
.^
t^
.H
.f.
-'.^T'-
,0^
o"^
o
^'
">>
'\
.<^
"^0^
>
">
<?
<.^'
.V
c^
.H
o -
''o
.Hq^
r^
^,
v.<2^'
-^^0^
^^ ^
'
V^^-V>
,<{>
^^
-SIP,*
"^^
-p^
o
^v;^
ô-n..
<
'.^
^^
'^^ 0^
x^
-r,
IC
8682A
Bureau of Mines Information Circular/1976
Basic Estimated Capital Investment
and Operating Costs for Underground

Bituminous Coal Mines
Mines With Annual Production of 1.06
Million Tons From a 72-Inch Coalbed
to 4.99
Revision of Information Circular 8632
fcWTO^
UNITED STATES DEPARTMENT OF THE INTERIOR
Information Circular
8682A
and Operating Costs for Underground

Bituminous Coal Mines
Mines With Annual Production of 1.06 to
Million Tons From a 72-Inch Coalbed
4.99
By Sidney
Hemingway, and L.JH. Berkshire

Process Evaluation Group MMRD, Morgantown, W. Va.
Katell, E. L.
UNITED STATES DEPARTMENT OF THE INTERIOR

Thomas
S.
Kleppe, Secretary
BUREAU OF MINES
Thomas
V. Falkie, Director
As
the Nation's principa] conservation agency, the Department of the Interior
has responsibility for most of our nationally owned public lands and natural
resources.
sources,
This includes fostering the wisest use
of our land
and water re-
protecting our fish and wildlife, preserving the environmental and
cultural values of our national parks and historical places, and providing for
the enjoyment of life through outdoor recreation.
The Department assesses
our energy and mineral resources and works to assure that their development is
in the
best interests of all our people.
The Department also has a major
sponsibility for American Indian reservation communities and for people
re-
who
live in Island Territories under U.S. administration.
lî
Ui
This publication has been cataloged as follows:
Katell, Sidney
Basic estimated capital investment and operating costs

underground bituminous coal mines: mines with annual
for
production of 1.06 to 4.99 million tons from a 72-inch coal-,

bed,
by
Sidney
Berkshire.
41 p.
lar
Katell,
E.
L.
Hemingway,
and
L. H.
[Washington] U.S. Bureau of Mines [1976]
illus., tables.
(U.S. Bureau of Mines.
Information circu-
8682A)
Revision of information circular 8632.

Bituminous coal Costs. 2. Coal mines and mining United
1,
States Cost of operation. L U.S. Bureau of Mines. II. Hemingway,
E. L., jt. auth. IIL Berkshire, L. H^.jt. auth. IV. Title. (Series)
TN23.U71
no.
8682A
622.06173
U.S. Dept. of the Int. Library
For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402

Catalog No. I28427:8682A
l*
CONTENTS
r^
Page
^
^^ti5tract
Introduction
N^ General mining plan
Summary
Âppendix A,--l .06-MM-tpy
sj Appendix B.--2.04-MM-tpy
Appendix C.
3.18-MM-tpy
Appendix D.--4.99-MM-tpy
1
i
2
mine
mine
mine
mine
15
24
33
ILLUSTRATION
1.
General mining plan
TABLES
Acreage required to provide coal resources necessary to

sustain a 20-year mining operation
2.
Summary of estimated capital investment, operating cost,
and selling price by annual output capacity
A-1
Capital investment summary, 1 .06-MM-tpy mine
A-2.
Manning table, 1. 06-MM-tpy mine
A-3.
Depreciation schedule, 1 .06-MM-tpy mine
Power and water cost, 1. 06-MM-tpy mine
A-4.
A-5.
Estimated anntial production cost, 1 .06-MM-tpy mine
A-6._ Estimated development cost, 1 .06-MM-tpy mine
A-7.- Estimated working capital and total capital investment,
1 .06-MM-tpy mine
Summary of discounted cash flow, 1. 06-MM-tpy mine
A-8.
A-9.
Discounted cash flow, 1 .06-MM-tpy mine
B-1
Capital investment summary, 2.04-MM-tpy mine
B-2.
Manning table, 2.04-MM-tpy mine
B-3.
Depreciation schedule, 2.04-MM-tpy mine
Power and water cost, 2. 04-MM-tpy mine
B-4.
B-5.
Estimated annual production cost, 2.04-MM-tpy mine
B-6.
Estimated development cost, 2.04-MM-tpy mine
B-7.
Estimated working capital and total capital investment,
2.04-MM-tpy mine
B-8.
Sunmary of discounted cash flow, 2.04-MM-tpy mine
B-9.
Discounted cash flow, 2.04-MM-tpy mine
C-1
Manning table, 3.18-MM-tpy mine.
C-2.
C-3.
Power and water cost, 3.18-MM-tpy mine
C-4.
C-5.
C-6.
C-7.
3 1 8-MM-tpy mi ne
1.
5
6
8
9
10
11
12
12
13
14
15
17
18
19
20
21
21
22
23
24
26
27
28
29
30
30
11
TABLES Continued
Page
C-8.
C-9.
D-1
D-2.
D-3.
D-4.
D-5.
D-6.
D-7.
D-8.
D-9.
Summary of discounted cash flow, 3.18-MM-tpy mine

4.99-MM-tpy mine
31
32
33
35
36
37
38
39
39
40
41
BASIC ESTIMATED CAPITAL INVESTMENT AND OPERATING COSTS

FOR UNDERGROUND BITUMINOUS COAL MINES
Mines With Annual Production of 1.06 to 4.99 Million Tons
From a 72-Inch Coalbed
by
Sidney KatellJ E. L. |Hemingway,2 ^nd L. H. Berkshire^
ABSTRACT
This study estimates capital investment, operating costs, and selling prices for four underground bituminous mines producing coal with
It is assumed
annual production ranging from 1.06 to 4.99 million tons.
Wages and union welfare payments are
that the mines have a 20-year life.
considered as of December 6, 1974, under the Bituminous Wage Agreement
of 1974, and costs for material and equipment are based on 1975 indexes.
investment ranges from $20,799,800 for the 1.06million-ton-per-year (MM tpy) mine to $84,027,500 for the 4.99-MM-tpy
Total capital investment ranges from $32,506,800 to $122,983,500
mine.
Corresponding selling prices for the coal range
for the same mines.
from $12.87 to $11.64 per ton, assuming a 15-percent discounted cash flow
rate of return after Federal income taxes.
Initial capital
INTRODUCTION
Growing public concern about the increasing demand for energy has
brought about a renewed interest in coal production in the United States.
Because cost is an important factor in determining the extent to which
coal will be used to satisfy this energy requirement, the Bureau of Mines
is preparing a series of reports that provide estimated capital investment and operating costs for hypothetical mines that may be utilized in
the production of synthetic fuels or for electric utility plants.
2
^
Chief, Process Evaluation Group.

Mining engineer.
Economist.
Three studies that presented capital investment and operating costs

for coal mines, based on rates in effect under the Bituminous Wage Agreement of 1971, were published in 1974^. This report is the first of a new
series that updates the previous publications to reflect wage and union
welfare rates, which went into effect December 6, 1974, under the Bituminous
Wage Agreement of 1974. Costs for material and equipment are based on
January 1975 cost indexes, and selling prices are based on a 15-percent
discounted cash flow (DCF) rate of return after Federal income taxes. Mines
are assumed to have a 20-year life.
This study presents basic capital investment and production costs for
four hypothetical underground bituminous coal mines with a 72-inch working
height and with annual production ranging from 1.06 to 4.99 million tons
of coal.
Since costs are affected by many factors, any particular mine, in
reality, will have to be considered in relation to its own special situation and requirements.
This publication. Information Circular 8682A, modifies areas in which

results of various calculations were carried forward incorrectly in
Information Circular 8682.
GENERAL MINING PLAN

It is assumed that the mines operate 5 days per week, 220 days per
year, and have a 20-year life.
Continuous miner- sections produce 344 tons
of coal per unit per shift.
Acres of surface needed to produce the required tonnages are calculated

assuming 1,800 tons of coal per acre-foot with 6 feet of mining height and
57-percent recovery. The following table shows the acreage requirements.
TABLE
Acreage required to provide coal resources

necessary to sustain a 20-year mining operation
-
Production, MM tpy
1.06
2.04
3.18
4.99
Acres required, 57-percent recovery

3,442
6,639
10,326
16,228
iKatell, Sidney, and E. L. Hemingway.

and Operating Costs for Underground Bituminous Coal Mines:
Mines With
Annual Production of 1.06 to 4.99 Million Tons From a 72-Inch Coal bed.
BuMines IC 8632, 1974, 41 pp.
Basic Estimated Capital Investment and Operating Costs for Under.
ground Bituminous Coal Mines: Mines With Annual Production of 1.03 to
3.09 Million Tons From a 48-Inch Coal bed.
BuMines IC 8641, 1974, 31 pp.
Basic Estimated Capital Investment and Operating Costs for Coal
Strip Mines.
BuMines IC 8661, 1974, 31 pp,
The general mining plan involves driving main entries along the
center axis of the property with production headings on the right and
left.
In the 1.06- and 2.04-MM-tpy mines, all mining is concentrated
on
one side of the main heading, the plan being to mine one side of the main
entries on the advance and the other side on the retreat.
In the 3.18and 4.99-MM-tpy mines, production headings were driven both ways off the
main headings to reduce development time and to reach full production with
the number of units required.
The main headings have
11
entries, and the production headings have
8 entries, 14 feet wide on 95-foot centers.

The production panels are on
the 8-entry system, 16 feet wide on 95-foot centers.
Production panels
are 2,600 feet long plus an additional length for development of the
bleeder system.
Figure
is a
diagram of the general mining plan.

Coalbed outcrop
Bleeders
Direction of mining
s 'r
Direction of mining
Prod uction heading
Production heading
:B e e d e
B eede
Bleeders:
Production heading
FIGURE
Production headi ng-
1.
General Mining plan.
Each loading unit will consist of a continuous miner, a loading

The shuttle cars will dump
machine, two shuttle cars, and a roof bolter.
into a ratio feeder at the tailpiece of the unit belt conveyor.
Unit
manpower consists of 10 men and a foreman.
Each unit is equipped with a
power center to reduce high voltage to equipment requirements. A rectifier converts alternating current to direct current where necessary.
Coal is transported to the surface by belt conveyors.
The main heading conveyors are 42 inches wide, and the production headings and panels
are 36 inches wide.
The estimated development cost covers the period of time needed to

establish the outside facilities and the time required to place all underground mining units in operation within the basic mining plan.
Time
needed to develop the surface area depends on topography and the location
of existing roads, railroads, navigable rivers, or plant site. The
development period was estimated conservatively at 1 year for the 1 -MM-tpy
mine, 1-1/2 years for the 2- and 3-MM-tpy mines, and 2 years for the 5-MMtpy mine, but could vary with the location.
The following detailed equipment list describes the principal pieces
of equipment that will be used in the mines:
Continuous miner
Hp:
600.
Drive:
Motor.
Roof bolter
Dual
Hp:
boom.
50.
Equipped with dust collector.

Loading machine
25/30 tons
Loading rate:
per minute (tpm).
160.
Motor.
Drive:
Supply motor
To haul supplies to working
faces.
Hp:
Hp:
80.
Drive:
Motor.
Shuttle car
135.
Motor.
Drive:
Hp:
Mainl ine belt power center

kV-A.
~I00
Ratio feeder
Can accept 15+ tons of coal
discharge at desired rate.
Self-tramming.
Equipped with lumpster.
Section belt power center

150 kV-A.
Auxiliary fan
To provide more effective
ventilation at working face.
Rectifier for track haulage
Triple duty rock duster

To dust main heading, faces,
and back area.
Hp:
30.
Section rectifier
200 kW.
,000 kW.
Main ventilation fan

Dual.
Type:
Size:
8 ft.
350,000 cfm at 6-inch water'
gage.
Information supporting the cost figures in this study is included

B, C, and D for the 1.06-, 2. 04-,
3. 18-, and 4.99-MM-tpy mines, respectively.
The following tables are
included for each of the mines.
in tables that make up appendixes A,
Table No
Capital investment summary

Manning table
Depreciation schedule
Power and water cost
Estimated annual production cost
Estimated development cost
Estimated working capital and total capital
investment
Summary of discounted cash flow
Discounted cash flow
4
5
6
7
SUMMARY
This study furnishe:5 cost analyses for four hypothetical underground
bituminous mines that produce 1.06, 2.04, 3.18, and 4.99 million tons of
coal per year.
A summary of the total capital investments, operating
costs, and selling prices is given in table 2.
TABLE
Summary of estimated capital investment ,

operating cost, and selling price
by annual output capacity
1.06
MM tpy
Initial
Deferred
Total
2.
Per ton of
production,
Per year.
Per ton.
12 percent DCF
1 5
percent DCF
20 percent DCF
2.04
Capital
$20,799,800
11,707,000
32,506,800
$36,943,000
18_j_615,000
55,558,000
3.18
investment
$54,853,800
26,164,500
81,018,300
4.99
$84,027,500
38,956,000
122,983,500
25.48
24.65
9,744,200
9.19
Production cost
25,988,100
17,335,600
8.50
8.18
40,500,300
8.12
11.92
12.87
14.49
Selling price per ton

11.15
10.74
11.63
12.08
13.17
13.68
11.64
13.25
30.67
27.23
10.71
APPENDIX
TABLE A-1
Capital
A. 1.06-MM-TPY
investment summary.
Item
Continuous miner
Loading machine
Shuttle car
Roof bolter
Ratio feeder
Auxiliary fan
Mantrip Jeep^
Mechanic Jeep
Personnel Jeep
Trickle rock duster
Supply motor
Supply car
36-inch rope-type belt conveyor
Mainline belt power center (300 kV-A)...
Section belt power center (150 kV-A)....
Section power center (1,000 kV-A)
Section rectifier (200 kW)
Section switch house
Sectional i zing switch house
High voltage (HV) cable (300 mill "ion
circular mill aluminum {MCM AL})
PLM^ coupler
Section cable and coupler
Trol
MINE
ey wi re
Track (60-1 b)
Fresh water lines
Pumps and 1 i nes
Telephone (page phones)
Conveyor fire protection
Automatic controls and alarms
Scoop tractor
Battery charger
All service mask
Breathi ng apparatus
Self rescuer
Stretcher set
Safety 1 ight
Methanometer
Fire chemical car
Lamp (including accessories)
Dust sampler
Site preparation
Ventilation fan (dual)
.06-MM-tpy mine
Quantity
6
12
8
6
7
6
3
4
8
7
25
25,740 ft
5
5
6
6
6
7
12,000 ft
15
1
24,740 ft
24,740 ft
24,740 ft
-
7
7
12
12
250
8
100
100
4
250
20
"
Total cost
$1,809,600
483,800
889,500
425,000
270,000
26,300
105,000
41,300
50,000
35,000
271,000
94,000
78,100
1,771,500
93,800
62,500
172,500
15,000
56,300
65,600
120,000
14,600
46,600
25,000
77,400
247,400
92,800
19,000
9,000
25,000
50,000
245,000
26,200
1,500
9,400
9,400
1,300
4,400
37,500
15,000
13,000
7,500
40,000
120,000
TABLE A-1.
Capital
investment summary, 1.06-rf1-tpy mine
Item
Concrete portal
Bulk rock dust facility
Substation and distribution......
Bathhouse, office, and lamp house,
Shop and warehouse
Powder and cap house
Front-end loader
Forklift
Bulldozer
Uti 1 i ty truck
Pickup truck
Oil storage
Water tank
Supply yard
Mine drainage treatment plant
Exploration
Total direct
Field indirect
Total construction
Quantity
Engi neeri ng
Overhead and administration

Contingency.
Fee
Estimated development cost.

Interest during development
Gross estimate
Credit for coal mined during development at $10 per ton
Land acquired at $2,500 per acre
Continued
Total cost
75,000
20,000
100,000
350,000
187,500
5,000
63,000
44,000
100,000
9,000
6,000
12,000
12,000
15,000
37,500
65,000
,175 ,800
183 ,500
9,359 ,300
187 ,200
477 ,300
10,023 ,800
1,503 ,600
11,527 ,400
230 ,500
11,757 ,900
8,593 ,700
20,351 7BM
1,017,600
':7m
11,275 ,000
10,094 ,200
8,600 ,000
Net estimate,
18,694,200
^Reference to specific trade names in this report is done to facilitate
understanding and does not imply endorsement by the Bureau of Mines.
TABLE A- 2.
Manning table, 1.06;-MM-tpy mine
Personnel
Underground:
Continuous miner operator...
Loading machine operator
Machine operator helper
Shuttle car operator
Roof bol ter
Bra tt iceman
Ut i 1 i ty man
Mechanic (section)
Total
14
14
14
28
28
14
14
14
Wagesi
per day
$55.00
51.98
51.98
49.23
55.00
47.03
49.23
55.00
140
Supply motorman
Bel tman
Trackman
Wi reman
Mason (precision)
Pumper
Utility crew
Roving mechanic
Fireboss (union)
4
9
6
6
6
3
9
6
3
47.58
47.03
47.03
47.03
49.23
47.03
49.23
55.00
55.00
52
Outside:
Lampman
Front-end loader operator...
Shop mechanic
3
2
6
11
Salary:
Superintendent
General mi ne foreman
Assistant mine foreman
45.38
47.85
49.50
Cost
per year
$172,128
162,826
162,826
308,713
344,256
147,580
154,357
172,128
1,624,800
42,398
94,968
Cost
per ton
$1.53
63,311
63,311
65,743
31,657
99,324
73,568
36,916
571,196
.54
30,568
21,318
66,572
118,458
.11
30,000
20,000
3
48,000
14
196,000
Maintenance superintendent..
1
21,800
1
15,200
Mine maintenance foreman
3
45,000
1
22,500
Draftsman
1
9,200
Survey crew
3
29,700
Safety director
1
19,800
Safety inspector
3
43,500
3
Dust sampler
31,500
Office manager
1
15,800
1
Timekeeper and bookkeeper...
11,000
Purchasing supervisor
1
15,800
Warehouseman
4
39,600
43
614,400
.58
Total labor and supervision...
2.76
246
2,928,900
1 Figures
in this column are for the day shift.
Shift differentials for
other shifts are reflected in the cost per year.
1
TABLE A-3.
Depreciation schedule,
.06-MM-tpy mine
Straight-line
Yearly charge,
depreciation, years
doll ars
Item
Exploration
Supply yard
Water tank
Oil storage
Pickup truck
Utility truck
Bulldozer
Forklift
Front-end loader
Shop and warehouse
Bathhouse, office, and lamp house.
Substation
Bulk rock dust facility.
Concrete portal s
Ventilation fan.
Site preparation.
Coal mine safety equipment.
Underground equipment
Interim equipment replacement
Subtotal
Depreciation for field indirect,

engineering, overhead and
administration, contingency,
fee, cost of development, and
interest during development,
less credit for coal mined
at $1
per ton
Total
^.'^l.O.l
per ton.
n, 090, 200
10
TABLE A-4.
Number
of
units
Operation
Continuous miner.
Continuous miner.
10
8
5
Hr per
day, full
load
10
3,000
Hp,
total
load
KW,
total
load
Total kW-hr
revquirement
2,238
1,790
22,380
8,950
597
477
5,970
2,385
1,007
806
10,070
4,030
187
149
2,244
894
2,400
160
160
800
640
10
Shuttle car
Shuttle car
135
135
1,350
1,080
10
Roof bolter
Roof bolter
50
50
250
200
12
125
125
625
500
10
5
466
373
4,660
1,865
18
112
2,016
Loading machine.
Loading machine.
Hp per
unit
600
600
Ratio feeder
Ratio feeder
Auxiliary fan
30
150
Mantrip Jeep
Mantrip Jeep
15
15
75
60
56
45
224
90
Mechanic Jeep
15
45
15
34
510
Personnel Jeep
30
15
22
330
Rock duster
30
210
12
157
1,884
Supply motor
80
240
12
179
2,148
36-inch conveyor.
850
15
634
9,510
Ventilation fan.
500
24
373
8,952
400
10
298
2,980
10
1
Extra for pumps,

tools, lights,
etc
7.5
Total
NOTE.
Power:
Water:
$0.02 x 92,092 x 220 = $405,200 r 1,059,500

= $0.38 per ton.
3,000 gal per unit per shift at $0.10 per M gal
= 3,000 X 14 X 220 x 0.10 t 1,000 = $900.
92,092
n
TABLE A-5.
Estimated annual production cost, 1.06-MM-tpy
i.,ine
Annual cost Cost per ton
Direct cost:
Production:
Labor
Supervision.
Maintenance:
Labor
Supervision,
Operating supplies:
Mining machine parts
Lubrication and hydraulic oil
Roof bolts and timber
Rock dust
Ventilation
Bits
Cables
$2,002,200
532,400
2,534,600
$1.89
312,300
82,000
394,300
.29
.08
669,800
266,000
328,600
139,800
.63
.25
201 ,400
.50
2.39
.37
.31
.13
.19
127,200
63,600
159,000
1,955,400
1.84
Power
405,200
.38
Water
900
Miscellaneous
.12
.06
.15
Payroll overhead (40 percent of payroll)..
1,171,600
1.11
Union welfare^
1,105,900
1.05
732,600
.69
Indirect cost:
15 percent of labor, supervision,
and supplies
Fixed cost:
Taxes and insurance,
mine cost
Depreciation
Total
lEffective Dec.
6,
percent of
353,500
.33
1,0 90,200
r;443.70ff
1.03
9,744,200
9.19
1974, under the Bituminous Wage Agreement of 1974.
12
TABLE A-6.
Estimated development cost^, 1.06-MM-tpy mine
Item
labor and supervision
Operating supplies
Power
Payrol 1 overhead
Union welfare
Indirect cost
Fixed cost
Cost per ton

$3,166,600
1.15
1,296,600
.25
281,900
1.12
1,266,600
1.04
1,172,600
654,000
.58
.67
755,400
7.62
Total
8,593,700
lEstimated development cost covers the period of time required to place
all units in operation within the projected mining plan.
Total cost
Total
NOTE.
Cost per ton = $7.62.

Tonnage *= 1,127,500.
Credit for coal mined at $10 per ton
TABLE A-7.
$11,275,000.
Estimated working capital and total capital investment ,

1 .06-M'^-tpy mine
Estimated working capital:

Direct labor
3 months.
3 months.
Operating supplies
Payroll overhead
3 months.
Indirect cost
4 months.
Fixed cost
0.5 percent of insurance base.
Spare parts
Mi seel 1 aneous
Total worki ng capi tal
Total estimated capital investment:
Total mine cost (insurance, tax base)
$732,200
488,900
292,900
244,200
88,400
230,000
29,000
2,105,600
17,676,600
1 ,017,600
Subtotal
18,694,200
Working capital
2,105,600
20,799,800
Estimated capi tal i nvestment
Estimated deferred capital investment
11 ,707,000
Total capital investment and deferred investment... ^32,506,800
iThis is an average cost of f)3n.67 per ton of annual production.
13
TABLE A-8,
Year
Capital
investment
Cash flow
$20,799,800 $-20,799,800
Present
worth
factor at
15 percent
1.
.6575
.5718
.4972
3,096,000
2,691,900
2,340,900
2,035,800
1,688,600
67,900
59,000
51,300
44,600
2,075,500
1,539,100
1,338,300
1,163,900
1,012.200
-1,156,600
33,700
25,500
22,200
39,500
765,100
665,400
578,500
503,100
417,400
16,800
14,600
12,700
11,000
-644,500
380,600
330,800
287,700
250,300
871,600
23,266,700
800
4
5
321 ,000
3,560,300
3,560,300
3,560,300
3,560,300
3,396,300
157,000
157,000
157,000
157,000
8,396,000
3,560,300
3,560,300
3,560,300
3,560,300
-4,678,700
.4323
.3759
.3269
.2843
.2472
157,000
157,000
157,000
157,000
321,000
3,560,300
3,560,300
3,560,300
3,560,300
3,396,300
.2149
.1869
.1625
.1413
.1229
157,000
157,000
157,000
157,000
-10.548,60a
3,560,300
3,560,300
3,560,300
3,560,300
14,265,900
.1069
.0929
.0808
.0703
8
9
10
11
12
13
14
15
16
17
18
19
20
Present worth
cash flow value
at 15 percent
$-20,799,800
136,500
118,700
103,200
89,800
159,600
.8696
157,000
157,000
157,000
157,000
Present worth
capital
investment
at 15 percent
^20,799,800
.7561
.0611
-29,300
14
TABLE A-9.
15 percent
20 years
$23,266,700 - 6.259i
less depreciation
Depletion + net profit
R =
=
=
$3,717,300
1,090,200
2,627,100
Depletion = 10 percent of sales

Federal income tax = net profit
Depletion + net profit = cash flow
Sales
=
=
depreciation
1/0.55 (1/2 operating cost + cash flow

1/0.55 (4,872,100 + 2,627,100)
Sal es
Operating cost
Gross profit
Depletion
Taxable income
Federal income tax
Net profit
$1
depreciation)
3,634,900
9,744,200
3,890,700
1,363,500
2,527,200
1 ,263,600
1,263,600
Annual cash flow = net profit + depreciation + depletion

= $1,263,600 + $1,090,200
+ $1,363,500
=
$3,717,300
Selling price per ton = $13,634,900 f 1.059,500

lUniform series present worth factor.
$12.87
15
APPENDIX
TABLE B-1
C apital
B. 2.04-MM-TPY
MINE
investment summary, 2.04-MM-tpy mine
Item
Continuous miner
Loading machine
Shuttle car
Roof bolter
Ratio feeder
Auxiliary fan
Mantrip Jeep
Mechanic Jeep
Personnel Jeep
Trickle rock duster
Supply motor
Supply car
42-inch rope-type mainline belt conveyor
36-inch rope-type belt conveyor
Mainline belt power center (300 kV-A)
Section belt power center (150 kV-A)
Sectional izing switch house
HV cable (300 MCM AL)
PLM coupler
Trolley wire
Track (60-1 b)
Fresh water line
Pumps and lines
Scoop tractor
Battery charger
All service mask
Breathing apparatus
Self rescuer
Stretcher set
Safety light
Methanometer
Fire chemical car
Dust sampler
Site preparation
Quantity
T\
11
22
13
11
13
9
4
6
14
12
5
50
9,000 ft
26,561 ft
5
7
11
11
11
10
13,100 ft
17
2
31,300 ft
31,300 ft
31,300 ft
-
12
12
36
24
450
12
200
200
8
450
35
-
Total cost~
$3,317,600
886,600
1,630,200
692,900
495,000
49,400
157,500
55,200
75,000
61,600
466,800
156,500
155,000
720,000
1,832,700
95,000
87,500
316,300
27,500
103,100
93,800
131,000
16,600
85,300
50,000
98,600
313,000
117,400
25,000
10,000
27,500
75,000
375,000
30 ,000
4,500
18,800
16,900
1,900
8,800
75,000
30,000
23,600
13,100
37,500
115,000
16
TABLE B-1
Capital
Item
Concrete portal
Substation and distribution
Bathhouse, office, and lamp house
Shop and warehouse
Front-end loader
Forklift
Bulldozer
Utility truck
Pickup truck
Oil storage
Water tank
Supply yard
Exploration
Total direct
Field indirect
Total construction
Engineering
Quantity
5
1
1
1
1
1
1
1
1
1
1
1
1
Conti ngency
Fee

Gross estimate
Credit for coal mined during development at $10 per ton.
Net estimate
Continued
Total cost
87 , 500
25,000
87,500
390,000
250,000
7, 500
62,500
25,000
100,000
5,000
3,800
18,800
18,800
18,800
37,500
125,000
14,437,400
288,700
14,726,100
294,500
751 ,000
15,771,600
2,365,700
18,137,300
362,700
18,500,000
11 ,795,900
30,295,900
1 ,514,800
31,810,700
15,251 ,000
16,559,700
16,597,500
33,157,200
17
TABLE B-2.
Personnel
Underground:
Continuous miner operator..
Loading machine operator...
Roof bolter
Bratt iceman
Utility man
Mechanic (section)
Total
27
27
27
54
54
27
27
27
Wages 1
per day
Cost
per year
$55.00
51.98
51.98
49.23
55.00
47.03
49.23
55.00
$332,244
314,304
314,304
270
Supply motorman
Beltman
Trackman
Wi reman
Mason (precision)
Pumper
Utility crew
Roving mechanic
Fireboss (union)
o
18
9
12
3
18
9
3
47.58
47.03
47.03
47.03
49.23
47.03
49.23
55.00
55.00
87
Outside:
Lampman
Front-end loader operator..
Shop mechanic
3
3
15
Salary:
Superintendent
General mi ne foreman
Section foreman
Maintenance superintendent.
General shop foreman
Mine maintenance foreman...
Chief mine engineer
Draftsman
Survey crew
Safety director
Safety inspector
Dust sampler
Office manager
Timekeeper and bookkeeper..
Warehouseman
45.38
47.85
49.50
Cost
per ton
595,941
664,488
284,901
297,971
332,244
3,136,397
64,037
189,936
94,968
94,968
132,430
31,657
198,648
110,748
36,916
954,308
30,568
32,197
99,858
162,623
$1.54
.47
,08
30,000
20,000
48,000
3
378,000
27
21,800
1
15,200
1
45,000
3
22,500
1
9,200
1
29,700
3
19,800
1
43,500
3
31,500
3
15,800
1
11,000
1
15,800
1
39,600
4
39
796,400
56
5,049,700
2.48
428
supervision
and
labor
Total
1 Figures
in this column are for the day shift.
per
year.
cost
in
the
reflected
are
shifts
other
1
18
TABLE B-3.
Straight-line
Yearly charge,
depreciation, years
dol lars
Item
Exploration
Supply yard
Water tank
Oil storage
Pickup tfuck
Utility truck
Bulldozer
Forklift
Front-end loader
Shop and warehouse
Substation
Concrete portal s
Venti 1 ati on fan
Site preparation
Coal mine safety equipment
Interim equipment replacement....,
Subtotal
,
3 ,800
1
1
800

at $1
per ton
Total
i$0.86 per ton.
,900
,900
,900
,000
10 ,000
2 ,500
6 ,30C
800
12 ,500
19 ,500
4 ,400
2 ,500
4 ,400
5 ,800
1 ,900
59 ,000
,272 ,700
233 ,000
1
1,652,900
106.100
1,759,000
19
TABLE B-4.
Number
of
units
Power and water cost, 2.04-MM-tpy-mine
Hp per
Operation
Continuous miner.
Loading machine..
Shuttle car
Roof bolter
Ratio feeder
Auxiliary fan
Mantrip Jeep
Mechanic Jeep
Personnel Jeep
Rock duster
Supply motor
42-inch conveyor.
36-inch conveyor.
36-inch conveyor.
Ventilation fan.
Extra for pumps,
tools, lights,
5
9
18
9
9
9
9
4
6
9
5
3
2
7
1
unit
600
160
135
50
125
30
15
15
7.5
30
80
125
100
50
Hp,
Total
load
5,400
1,440
2,430
450
1,125
270
135
60
45
270
400
375
200
350
500
500
etc
Hr per
day, full
load
KW,
total
load
15
15
15
18
15
18
4,028
1,074
1,813
336
839
15
15
12
12
15
15
15
24
10
201
101
45
34
201
298
280
149
261
373
kW-hr
requirement
60,420
16,110
27,195
6,048
12,585
3,618
606
675
510
2,412
3,576
4,200
2,235
3,915
8,952
Total
373
Total
NOTE.
Power:
$0.02 X 156,787 x 220 = $689,900 - 2,043,400

$0.34 per ton.
= 3,000 X 27 X 220 x 0.10 t 1,000 = $1,800.
Water:
3,730
156,787
20
TABLE B-5.
Estimated annual production cost, 2.04-MN-tpy mine

Annual cost
Direct cost:
Production:
Labor
Supervision,
Cost per ton
$3,710,500
714,400
4,424,900
$1.82
542,800
82,000
624,800
.27
.04
1,287,300
510,800
633,500
265,600
388,200
245,200
122,600
306,500
3,759,700
.63
.25
1.84
Power
689,900
.34
Water
1,800
Maintenance:
Labor
Supervision,
Operating supplies:
Rock dust
Ventilation
Bits
Cables
Mi seel 1 aneous
.35
2.17
.31
.31
.13
.19
.12
.06
.15
Payroll overhead (40 percent of payroll)..
2,019,900
.99
Union welfare^
2,101,400
1.03
1,321,400
.65
632,800
1,759,000
2,391,800
.31
Indirect cost:
15 percent of labor, supervision, and
suppl
es
Fixed cost:
Taxes and insurance,
mine cost
Depreciation
percent of
.86
1.17
17,335,600
8.50
Total
Êffective Dec. 6, 1974, under the Bituminous Wage Agreement of 1974
21
TABLE B-6.
Item
Total labor and supervision.
Operating suppl ies
Power
Payrol 1 overhead
Union welfare
Total cost
$475015,800
1,75 3,900
Cost per ton

$2.95
1.15
38il,300
.25
1,708,100
1,570,900
1.12
1.03
.58
Indirect cost
884, 600
.65
Fixed cost
991 , 300
7.73
Total
11,795,900
Êstimated development cost covers the period of time rt squired to place
all units in operation within the projected mining p'lari'.
,
NOTE.

Tonnage = 1,525,100.
Credit for coal mined at $10 per ton = $15,251,00
TABLE B-7.
0.
Estimated working capital and total capita l

2.04-MM-tpy mine
Estimated working capital

3 months.
Direct labor
3 months...
Operating supplies
3 months
Payrol I overhead
4 months...
Indirect cost
0.5 percent of insurance base...
Fixed cost
Spare parts
Mi seel 1 aneous
Total working capital
.
estimated capital investment:

linvestment.
$1,262,400
939,900
505,000
440,500
158,200
424,800
55,000
3,785,800
Total
31,642,400
1,1 514,800
33,1 57 ,200
Subtotal
3,7^35,800
Working capital
36,943,000
Estimated capital investment
18^1^5^000
^55,55 '^000
Total capital investment and deferred investment...
iThis is an average cost of $27.23 per ton of annual producti on
22
TABLE B-8.
Year
-1/2
Sunrnary of discounted cash flow, 2.04-MM-tpy mine
Capital
investment
$14,777,200
22,165,800
233,000
233,000
233,000
233, OOC)
537,000
233,000
233,000
233, OOO
8
9
10
11
12
13
14
15
16
17
18
19
20
233,0 00
13,580,fJ00
233, 000
233 ,000
233 ,000
23-J,O00
537,000
2?;3,000
233,000
2
33,000
?.'33,000
-20, 150,300
Cash flow
$-14,777,200
-22,165,800
Present
worth
factor at
15 percent
1.07238
1.
Present worth Present worth

cash flow
capital
vaiue at
investment
at 15 percent 15 percent
$-15,846,800'
$15,846,800
-22,165,800
22,165,800
.6575
.5718
.4972
202,600
176,200
153,200
133,200
267,000
5,593,500
4,863,500
4,229,200
3,678,000
3,047,000
6,432,300
6,432,300
6,432,300
6,432,300
-6,914,700
.4323
.3759
3269
,2843
.2472
105,400
87,600
76,200
66,200
3,357,000
2,780,700
2,417,900
2,102,700
1,828,700
-1,709,300
6,432,300
6,432,300
6,432,300
6,432,300
6,128,300
.2149
.1869
.1625
.1413
.1229
50,100
43,500
37,900
32,900
66,000
1,382,300
1,202,200
1,045,200
908,900
753,200
6,432,300
6,432,300
6,432,300
6,432,300
26,815,600
.1069
.0929
.0808
.0703
24,900
21,600
18,800
16,400
-1,231,200
687,600
597,600
519,700
452,200
,638,400
6,432,300
6,432,300
6,432,300
6,432,300
6,128,300
.8696
.7561
.0611
41,718,100
6,600
23
TABLE B-9.
15 percent - 20 years
$41,718,100 T 6.259I = $6,665,300

less depreciation
1 ,759,000
Depletion + net profit = 4,906,300
R =

Sales
=
=
depreciation
1.0/0.55 (1/2 operating cost + cash flow

1/0.55 (8,667,800 + 4,906,300)
Sales
Operating cost
Gross profit
Depletion
Taxable income
Federal income tax
Net profit
depreciation)
$24,680,200
17,335,600
7,344,600
2,468,000
4,876,600
2,438,300
2,438,300

=
$2,438,300 +
$6,665,300
$1,759,000
+ $2,468,000
Selling price per ton = $24,680,000 t 2,043,400 = $12.08

lUniform series present worth factor.
24
APPENDIX C.~3.18-MM-TPY MINE

TABLE C-1
Capital
investment summary, 3'.18-MM-tpy mine
Item
Continuous miner
Loading machine
Shuttle car
Roof bol ter
Ratio feeder
Auxiliary fan
Mantri p Jeep
Mechani c Jeep
Personnel Jeep
Trickle rock duster
Tripl e duty rock duster
Supply motor
Supply car
42-inch rope-type mainline conveyor belt
36-inch rope-type secondary and panel belt...
PLM coupler
Trolley wire
Track (60-1 b)
Fresh water 1 ine
Pumps and lines
Scoop tractor
Battery charger
All service mask
Breathing apparatus
Sel f rescuer
Stretcher set
Safety light
Methanometer
Fire chemical car
Dust sampl er
Site preparation
Quantity
TT~
17
34
17
17
17
17
6
8
17
13
6
70
9,000 ft
36,000 ft
6
14
17
17
17
10
16,000 ft
18
3
51,000 ft
51
51
,000 ft
,000 ft
Total cost
WT
$b,127
1,370 200
2,519 400
906 100
765
64
297
82
100
74 800
503
187
217
720
2,412
112
175
489
42
159
94
160
18
89
75
159
510
191
31
11
17
17
36
36
650
20
300
300
10
650
50
000
600
500
800
000
30
93
595
62
3
28
24
4
13
120
38
33
20
50
120
100
800
000
000
000
800
000
600
500
800
000
000
000
300
000
600
000
300
300
300
000
800
000
900
600
800
400
000
200
000
000
800
000
000
000
25
TABLE C-1.
Capital
I tem
Concrete portal
Shop and warehouse
Front-end 1 oader
Forkl ift
Bull dozer
Utility truck
Pickup truck
Oil storage
Water tank
Supply yard
Exploration
Total direct
Field indirect
Total construction
Quantity
5
1
1
1
1
1
1
1
2
2
1
1
1
Engi neeri ng
Conti ngency
Fee

Gross estimate
Credit for coal mined during development at $10 per ton
Net estimate
Continued
Total cost
~7F
37 500
93 800
500 000
312 500
8 800
Lane acquired at $2,500 per acre
63
44
100
18
12
25
25
18
37
187
20,462
409
20,872
41
1,064
22,354
3,353
25,707
514
26,221
15,940
42,161
2,108
44,269
2 0,946
23,323
25,815
000
000
000
000
000
000
000
800
500
500
900
300
200
400
500
100
100
200
100
300
100
400
100
500
000
500
000
49,138,500
26
TABLE C-2.
Personnel
Underground:
Continuous miner operator...
Machine operator helper.
Roof bolter
Bratticeman
Util ity man
Mechanic (section)
,
Total
42
42
42
84
84
42
42
42
Wages^
per day
$55.00
51.98
51.98
49.23
55.00
47.03
49.23
55.00
420
Suppl y motorman
Bel tman.
Trackman
Wi reman
Mason (precision)
Pumper
Util ity crew
Roving mechanic
Fireboss (union)
12
27
12
12
18
3
24
12
4
JW
Outside:
Lampman
Front-end loader operator...
Shop mechanic
,
3
3
12
18
47.58
47.03
47.03
47.03
49.23
47.03
49.23
55.00
55.00
45.38
47.85
49.50
Cost
per year
$516,824
488,918
488,918
927,019
1,033,648
443,180
463,510
516,824
4,878,841
128,074
Cost
per ton
$1.53
284,901
126,904
126,904
198,648
31,657
264,863
147,136
73,832
1,382,919
.44
30,568
32,197
133,144
195,909
.06
30,000
20,000
48,000
588,000
21,800
15,200
45,000
22,500
9,200
29,700
19,800
43,500
31,500
15,800
11,000
15,800
39,600
1.006.400
7,464,100
2.35
Salary:
Superintendent
General mine foreman
Section foreman
Maintenance superintendent.,
Chief mine engineer
Draftsman
Survey crew
Safety director
Safety inspector
Dust sampl er
Office manager
Timekeeper and bookkeeper..,
Warehouseman
,
42
1
3
1
3
3
1
1
1
4
71
Total
1
labor and supervision.
633
32
Figures in this column are for the day shift.

other shifts are reflected in the cost per year.
27
TABLE C-3.
Item
Exploration
Supply yard
Water tank
Oil storage
Pickup truck
Util ity truck
Bulldozer
Forklift
Front-end loader
Shop and warehouse
Substation
Concrete portal
Venti 1 ati on fan
Site preparation
Subtotal

at $10 per ton
Total
i$0.78 per ton.
Straight-line
Yearly charge,
depreciation, years
dol lars
20
9
10
10
10
10
5
5
10
10
10
10
20
20
20
10
20
20
20
5
10
20
3 ,800
1
,900
2 ,500
2 ,500
2 ,400
3 ,600
10 ,000
4 ,400
6 ,300
900
15 ,600
25 ,000
4 ,700
3 ,800
3 ,800
6 ,000
2 ,500
81 ,900
1,832 ,500
308 ,000
2,331,500
20
143,000
12,474,500
28
TABLE C-4.
Number
of
units
Operation
Continuous miner
Loading machine
Shuttle car
Roof bol ter
Ratio feeder
Auxiliary fan
lântrip Jeep
Pêchanic Jeep
Personnel Jeep
Rock duster
Supply motor
42-inch conveyor
36- inch conveyor
Ventilation fan
Extra for pumps,
tools, lights,
14
14
28
14
14
14
14
6
8
14
6
3
12
1
etc
Hp
per
unit
600
160
135
50
125
30
15
15
7.5
30
80
200
150
Hp,
total
load
8,400
2,240
3,780
700
1,750
420
210
Hr per
day, full
load
15
KW,
total
load
15
15
18
15
1,671
18
6,266
2,820
522
1,305
313
156
kW-hr
requirement
93,990
25,065
42,300
9,396
19,575
5,634
Total
24
45
313
358
447
560
373
936
1,005
675
3,756
4,296
6,705
8,400
8,952
10
373
3,730
90
60
420
480
600
750
500
15
15
12
12
15
15
500
67
Total
NOTE.
Power
Water:
234,415
$0.02 x 234,415 x 220 = $1,031,400 r 3,178,600
= $0.32 per ton.
= 3,000 x 14 x 3 X 220 X 0.10 f 1,000 = $2,800.
29
TABLE C-5.
Estimated annual production cost, 3.18-MM-tp.y mine
Annual cost Cost per ton
Direct cost
Production:
Labor
Supervision,
Maintenance:
Labor
Supervision,
Operating supplies:
Rock bolts and timber
Rock dust
Ventilation
Bits
Cables
Mi seel
$5,660,600
924,400
6,585,000
$1.78
797,100
82,000
879,100
.25
.03
.28
2,002,500
794,700
985,400
413,200
604,900
.63
.25
381 ,400
1
aneous
Power
Water.
.29
2.07
.31
.13
.19
.12
.06
.15
190,700
476,800
5,849,600
1.84
1,031,400
.32
2,800
Payroll overhead (40 percent of payroll)
2,985,600
.94
Union welfare^
3,242,400
1.02
1,997,100
.63
940,600
2,474,500
3,415,100
.30
.78
Indirect cost:
and suppl i es
Fixed cost:
Taxes and insurance, 2 percent of
mine cost
Depreciation
Total
Êffective Dec.
1.08
8.18
25,988,100
1974.
Agreement
of
Wage
6, 1974, under the Bituminous
30
TABLE C-6.
Item
Total cost
Cost per ton
labor and supervision
$5,906,800
$2.82
Operating supplies
2,408,800
1.15
Power
523,700
.25
Payrol 1 overhead
2,346,000
1.12
Union welfare
1.04
2,178,400
.58
Indirect cost
1,214,900
Fixed cost
1,361,500
.65
Total
7.61
15,940,100
1 Estimated development cost covers the period of time required to place
Total
NOTE.

Tonnage ^ 2,094,600.
Credit for coal mined at
TABLE C-7.
per ton
$20,946,000.
Estimated working capital and total capital investment

3.18-MM-tpy mine
Estimated working capital

Direct labor
3 months.
Operating supplies
3 months.
Payrol 1 overhead
3 months
Indirect cost
4 months.
Fixed cost
0.5 percent of insurance base.
Spare parts
Miscellaneous
Total estimated capital investment:
$1,866,000
1,462,400
746,400
665,800
235,200
653,200
86,300
5,715,300
47,030,400
2,108,100
Subtotal
49,138,500
Worki ng capi tal
5,715,300
54,853,800
Estimated deferred capital investment,
26,164,500
181,018,300
Total capital investment and deferred investment..
iThis is an average cost of $25.48 per ton of annual production.
31
TABLE C-8.
Year
-1/2
Summary of discounted cash flow, 3.18-MM-tpy
Capital
investment Cash flow
$21,941,500 $-21,941,500
32,912,300 -32,912,300
308,000
308,000
308,000
308,000
747,500
9,508,900
9,508,900
9,508,900
9,508,900
9,069,400
308,000
308,000
308,000
308,000
19,433,500
12
13
14
15
16
17
18
19
20
4
5
6
7
8
9
10
11
Present
worth
factor at
15 percent
1.07238
1.
.8696
Present worth
capital
investment
at 15 percent
$23,529,600
32,912,300
iiiine
Present worth
cash flow
value
at 15 percent
$-23,529,600
-32,912,300
.6575
.5718
.4972
267,800
232,900
202,500
176,100
371,700
8,268,900
7,189,700
6,252,100
5,437,200
4,509,300
9,508,900
9,508,900
9,508,900
9,508,900
-9,616,600
.4323
.3759
.3269
.2843
.2472
133,100
115,800
100,700
87,600
4,804,000
4,110,700
3,574,400
3,108,500
2,703,400
-2,377,200
308,000
308,000
308,000
308,000
747,500
9,508,900
9,508,900
9,508,900
9,508,900
9,069,400
.2149
.1869
.1625
.1413
.1229
66,200
57,600
50,100
43,500
91,900
2,043,500
1,777,200
1,545,200
1 ,343,600
1,114,600
308,000
308,000
308,000
308,000
-31,222,300
9,508,900
9,508,900
9,508,900
9,508,900
41,039,200
.1069
.0929
.0808
.0703
32,900
28,600
24,900
21,700
-1,907,700
1,016,500
883,400
768,300
668,500
2,507,500
61,443,800
3,400
.7561
.0611
32
TABLE C-9.
15 percent
- Discountfed
cash flow, 3.18-MM-tpy mine
20 years
$61,443,800 - 6.2591
less depreciation
R =
=
=
$9,816,900
2,474,500
7,342,400

Sales
=
=
depreciation

1/0.55 (12,994,100 + 7,342,400
Sal es
depreciation)
$36 975, 500

25,988,100
10,987,400
3,697,600
7,289,800
3,644,900
3,644,900
,
Operating cost
Gross profit
Depletion
Taxable income
Federal income tax
Net profit.

= $3,644,900 + $2,474,500
+ $3,697,600
=
$9,817,000
Selling price per ton = $36,975,500 t 3,178,600

lUmform series present worth factor.
$11.63
33
APPENDIX
TABLE D-1
Capital
D. 4.99-MM-TPY
MINE
Item
Continuous miner
Loading machine
Shuttle car
Roof bolter
Ratio feeder
Auxiliary fan
Mantrip Jeep
Mechanic Jeep
Personnel Jeep
Trickle rock duster
Supply motor
Supply car
42-inch rope-type mainline belt conveyor
36-inch rope-type secondary and panel belts..
^
PLM coupler
Trolley wire
Track (60-1 b)
Fresh water 1 ine
Pumps and lines
Scoop tractor
Battery charger
All service mask
Breathing apparatus
Self rescuer
Stretcher set
Safety light
Methanometer
Fire chemical car
Dust sampler
Site preparation
Quantity
26
26
52
26
26
26
26
10
10
26
15
8
100
9,000 ft
60,000 ft
6
16
26
26
26
12
21,000 ft
22
5
69,000 ft
69,000 ft
69,000 ft
-
26
26
36
50
950
40
600
600
16
950
75
~
Total cost~
$7,841,600
2,095,600
3,853,200
1,385,800
1,170,000
98,800
455,000
138,000
125,000
114,400
580,500
250,400
310,000
720,000
4,020,000
112,800
200,000
748,800
65,000
244,400
112,800
210,000
22,000
136,500
125,000
216,000
690,000
258,800
44,000
18,000
38,000
125,000
91 0,000
96,200
3,600
40,000
35,700
8 ,000
26,400
240,000
57,000
49,400
"^^'^nn
75,000
120,000
34
TABLE D-1
Capital
Item
Concrete portal
Shop and warehouse
Front-end loader
Forklift
Bulldozer
Utility truck
Pickup truck
Oil storage
Water tank
Supply yard
Exploration
Total direct
Field indirect
Total construction
Engineering
Quantity
Total cost
56 ,300
110 ,000
687 ,500
Contingency.
Fee
Estimated development cost.

Interest during development..
Gross estimate
Credit for coal mined during development at $10 per ton,
,
Net estimate,
Continued
75.,000
437.,500
11 ,300
63.,000
44 ,000
100 ,000
18 ,000
18 ,000
38 ,000
25 ,000
25 ,000
37 ,500
312 ,500
30 ,275 ,300
605 ,500
30 ,880 ,800
617 ,600
1 ,574 ,900
33 ,073 ,300
4 ,961 ,000
38 ,034 ,300
760 ,700
38 ,795 ,000
23 ,177 ,000
61 ,972 ,000
3 ,098.,600
65 ,070 ,600
30 ,528. 000
34 ,542 ,600
40 ,570 ,000
75,112,600
35
TABLE D-2.
Manning table. 4.99-MM-tpy mine
Personnel
Underground:
Continuous miner operator....
ShuttJe car operator
Roof bol ter
Bratti ceman
Utility man
Mechanic (section)
,
Total
66
66
66
132
132
66
66
66
660
24
45
Supply motorman^
Beltman
Trackman
Wi reman
Mason (precision)
Pumper
Util ity crew
Roving mechanic
Fireboss (union)
18
18
30
6
36
18
6
Wages 1
per day
$55.00
51.98
51.98
49.23
55.00
47.03
49.23
55.00
47.58
47.03
47.03
47.03
49.23
47.03
49.23
55.00
55.00
201
Outside:
Lampman..
Front-end loader operator,...
Shop mechanic
6
3
45.38
47.85
49.50
27
Cost
per year
$812 144
768 750
768 750
760
1 ,456
288
1 ,624
696 427
7 28 380
812 144
77367 643
256 150
474 837
189 936
189 936
331 078
63
397
220
73
$1.53
311
293
704
832
2,197 077
61
Cost
per ton
.44
136
32 197
199 716
293 049
06
Salary:
Superintendent
Assistant superintendent
General mine foreman
Section foreman
Maintenance superintendent...
Chief mine engineer
Draftsman
Survey crew
Safety di rector
Safety inspector
Dust sampl er
Of f i ce manager
Timekeeper and bookkeeper....
Warehouseman
-.
2
2
66
1
2
3
1
6
1
6
1
2
1
109
997
Total labor and supervision
1 Figures
in this column are for the diay shift.
column.
oth<,r shifts are reflected in the fina
30 000
48 400
40 000
48 000
924 000
21 800
30 400
45 000
22
18
59
19
43
63
15
22
15
59
500
400
400
800
500
000
800
000
800
400
.31
1,527 200
2.34
11,685 000
Shift differenti als for
36
TABLE D-3.
Depr'eciation schedule, 4.99-MM-tpy mine
Item
Exploration
Supply yard
Water tank
Oi 1 storage
Pickup truck
Utility truck
Bulldozer
Forklift
Front-end 1 oader
Shop and warehouse
Substation
Concrete portal s
Ventilation fan
Site preparation.
Subtotal
,
,.
Depreciation for field indirêct,

at $1
per ton
Total
i$0.74 per ton.
Straight-line
Yearly charge,
depreciation, years
doll ars
157 600
3, 800
2, 500
2, 500
3, 800
3, 600
3, 600
10, 000
4, 400
6, 300
1, 100
21, 900
34, 400
5, 500
5, 600
3, 800
6, 000
3, 800
130, 600
2,736, 900
456, 000
3,461,700
213,400
13,675,100
37
TABLE D-4.
Number
of
units
22
22
44
22
22
22
22
10
10
22
8
3
20
1
OjDeration
Continuous miner.
Loading machine..
Shuttle car
Roof bolter
Ratio feeder
Auxiliary fan
Mantrip Jeep
Mechanic Jeep
Personnel Jeep
Rock duster
Supply motor
42-inch conveyor.
36-inch conveyor.
Ventilation fan...
Extra for pumps,
tools, lights.
etc
Hp per
unit
600
160
135
50
125
30
15
15
7.5
30
80
300
150
Hp,
total
load
13,200
3,520
5,940
1,100
2,750
660
330
150
Hp per
day, full
load
15
15
15
18
15
18
6
660
640
900
1,200
500
15
15
12
12
15
15
24
700
10
75
KW,
total
load
9,847
2,626
4,431
821
2,052
492
246
112
56
492
477
671
895
373
Total
kW-hr
requirement
147,705
39,390
66,465
14,778
30,780
8,856
1,476
1,680
840
5,904
5,724
10,065
13,425
8,952
522
Total
NOTE. - Power:
Water:
$0.02 x 361,260 x 220 = $1,589,500 f 4,994,900

= $0.32 per ton.
= 3,000 X 22 X 3 x 220 X 0.10 t 1,000 = $4,400.
5,220
361,260
38
TABLE D-5.

Annual cost
Cost per ton
$8,925,200
1,430,000
$1.79
10,3,55,200
2.08
1,232,600
97,200
1,329,800
.25
.02
.27
3,150,000
1,250,000
1,550,000
650,000
950,000
600,000
300,000
750,000
9,200,000
.63
.25
1.84
Power
1,589,500
.32
Water
4,400
Direct cost:
Production:
Labor
Supervision,
,
Maintenance:
Labor
Supervision,
Operating supplies:
Rock dust
Ventilation
Bits
Cables
Mi seel 1 aneous
.29
.31
.13
.19
.12
.06
.15
Payroll overhead (40 percent of payroll)
4,674,000
.93
Union welfare^
5,099,200
1.02
3,132,800
.63
1,440,300
3,675,100
5,115,400
.29
.74
Indirect cost:
and suppl i es
Fixed cost:
Taxes and insurance, 2 percent of
mine cost
Depreciation
1.03
8.12
40,500,300
Total
Êffective Dec. 6, 1974, under the Bituminous Wage Agreement of 1974.
39
TABLE D-6.
Item
and
supervision,
labor
Total
Operating supplies
Power
Payrol 1 overhead
Union wel fare
Indirect cost
Fixed cost
cost
Cost per ton
$2.82
$8,615,200
1.15
3,510,700
.25
763,200
1.12
3,419,100
1.02
3,113,900
.58
1,770,600
.65
1 , 984,300
7.59
23,177,000
Total
1 Estimated development cost covers the period of time required to place
Total
NOTE.

Tonnage = 3,052,800.
Credit for coal mined at $10 per ton
TABLE D-7.
$30,528,000.
Estimated working capital and total capital investment ,

4.99-MM-tpy mine
Estimated working capital:

3 months...
Direct labor
3 months...
Operating supplies
3 months...
Payroll overhead
4 months...
Indirect cost
0.5 percent of insurance base...
Fixed cost
Spare parts
Mi seel 1 aneous
..
=
fl;2,921,300
2,300,000
1,168,500
1,044,300
360,100
1 ,005,700
115,000
8,914,900
estimated capital investment.

72,014,000
3,098,600
75,1 1 2, 600
Subtotal
8914,900
Working capital
84,027,500
38,956,000
^122,983,500
Total capital investment and deferred investment
iThis is an average cost of $24.65 per ton of annual production.
lotal
40
TABLE D-8.
Present
worth
factor at
Capital
Year investment
Cash flow
15 percent
-1
1.15
$33,611,000 $-33,611,000
50,416,500
50,416,500
1.
Present worth
capital
investment
at 15 percent
$38,652,700
50,416,500
Present worth
cash flow
value
at 15 percent
$-38,652,700
-50,416,500
.6575
.5718
.4972
396,500
344,800
299,800
260,700
569,300
12,991,600
11,295,900
9,822,900
8,542,500
7,085,400
14,939,700
14,939,700
14,939,700
14,939,700
-13,518,300
.4323
.3759
.3269
.2843
.2472
197,100
171,400
149,100
129,600
7,147,500
6,458,400
5,615,800
4,883,800
4,247,400
-3,341,700
13
14
15
456,000
456,000
456,000
456,000
1,145,000
14,939,700
14,939,700
14,939,700
14,939,700
14,250,700
.2149
.1869
.1625
.1413
.1229
98,000
85,200
74,100
64,400
140,700
3,210,500
2,792,200
2,427,700
2,111,000
1,751,400
16
17
18
19
20
456,000
456,000
456,000
456,000
-49,028,900
14,939,700
14,939,700
14,939,700
14,939,700
64,424,600
.1069
.0929
.0808
.0703
48,700
42,400
36,800
32,100
-2,995,700
1,597,100
1,387,900
1,207,100
1,050,300
3,936,300
96,361,700
4,300
3
4
5
6
7
8
9
10
n
12
456,000
456,000
456,000
456,000
1,145,000
14,939,700
14,939,700
14,939,700
14,939,700
14,250,700
.8696
456,000
456,000
456,000
456,000
28,914,000
3477-27d
Xot0
.7561
.0611
41
TABLE D-9.
15 percent
20 years
$96,361,700 i 6.2591
less depreciation
R =
$15,395,700
3,675,100
11,720,600

Sales
depreciation
1/0.55(20,250,150+11,720,600)
Sales
Operating cost
Gross profit
Depletion
Taxable income
Federal income tax
Net profit
depreciation)
$58,128,600
40,500,300
17,628,300
5,812,900
11,815,400
5,907,700
5,907,700
Annual cash flow = net profit + depletion + depreciation

= $5,907,700 + $5,812,900 +$3,675,100
=
$15,395,700
Selling price per ton = $58,128,600 r 4,994,900

-Ûniform series present worth factor.
$11.64
U.S. Government Office: d^j7^^6 22-192/21 6 R3-I
^-*-
.^^
-^
'^j-
'^0^
oV
oV
"oV"
%-^^^
'bK
^-O
5*.
o_
-^**'^-'/
'ô^ .<^
vP'
'U-o^
V'^^^-\/
"^*^-'\'
V^^rf^\/
"-^
'
,0'
5-"^
A^"^.
j{/yi^w:
V
^^'
-i-
'
^C'
.^
v^.
.^
c, vr>
^/
-^^
A
0'
V^ *^^f"''
>
0'
<i>
-?>'
,f
Q>
>f'
^>
c, J-'
' o o
.^
%>
oO.
* o
'
\^
..
-^
^-n^.

Basic Estimated CA 00 Kate

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Basic Estimated CA 00 Kate

Încărcat de

Drepturi de autor:

Formate disponibile

!

Bureau of Mines Information Circular/1976

Basic Estimated Capital Investment

and Operating Costs for Underground

Revision of Information Circular 8632

UNITED STATES DEPARTMENT OF THE INTERIOR

Basic Estimated Capital Investment

and Operating Costs for Underground

Revision of Information Circular 8632

Hemingway, and L.JH. Berkshire

UNITED STATES DEPARTMENT OF THE INTERIOR

the Nation's principa] conservation agency, the Department of the Interior

This includes fostering the wisest use

and water re-

protecting our fish and wildlife, preserving the environmental and

the enjoyment of life through outdoor recreation.

The Department assesses

best interests of all our people.

The Department also has a major

sponsibility for American Indian reservation communities and for people

live in Island Territories under U.S. administration.

This publication has been cataloged as follows:

Basic estimated capital investment and operating costs

production of 1.06 to 4.99 million tons from a 72-inch coal-,

[Washington] U.S. Bureau of Mines [1976]

(U.S. Bureau of Mines.

Revision of information circular 8632.

U.S. Dept. of the Int. Library

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C. 20402

General mining plan

Acreage required to provide coal resources necessary to

Summary of discounted cash flow, 3.18-MM-tpy mine

BASIC ESTIMATED CAPITAL INVESTMENT AND OPERATING COSTS

Chief, Process Evaluation Group.

Three studies that presented capital investment and operating costs

This publication. Information Circular 8682A, modifies areas in which

GENERAL MINING PLAN

Acres of surface needed to produce the required tonnages are calculated

Acreage required to provide coal resources

Acres required, 57-percent recovery

iKatell, Sidney, and E. L. Hemingway.

entries, and the production headings have

8 entries, 14 feet wide on 95-foot centers.

diagram of the general mining plan.

Prod uction heading

Production headi ng-

General Mining plan.

Each loading unit will consist of a continuous miner, a loading

The estimated development cost covers the period of time needed to

Equipped with dust collector.

Mainl ine belt power center

Section belt power center

Rectifier for track haulage

Triple duty rock duster

Main ventilation fan

Information supporting the cost figures in this study is included

Capital investment summary

Summary of estimated capital investment ,

Selling price per ton

investment summary, 1.06-rf1-tpy mine

Overhead and administration

Estimated development cost.

Manning table, 1.06;-MM-tpy mine