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Feasibility Study Cost Estimates. ©2002 Dr. Bradley C Paul. Feasibility Study. Processes are actually worked out and planned checked for technical flaws checked for permit flaws Format Pre-feasibility may give you a lot of factored cost estimates

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Feasibility Study Cost Estimates

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Feasibility study cost estimates l.jpg

Feasibility Study Cost Estimates

©2002 Dr. Bradley C Paul


Feasibility study l.jpg

Feasibility Study

  • Processes are actually worked out and planned

    • checked for technical flaws

    • checked for permit flaws

  • Format

    • Pre-feasibility may give you a lot of factored cost estimates

    • Start Shifting big ones to itemized cost estimates

    • Itemized estimates become more detailed


Feasibility study overviews l.jpg

Feasibility Study Overviews

  • Major Cost Items are Identified

    • Quotes are secured on major cost items

    • Minor items tend to be listed with general comparison cost estimates attached.

  • Important error avoid - missing and double counting.


Pre feasibility feasibility contrast l.jpg

Pre-Feasibility/ Feasibility Contrast

  • Major Cost Items from Pre-Feasibility move either to Itemized Cost format or are expanded

  • Example - Our Mine Shaft could easily be a big cost

    • Advance rate likely to be 8 feet per day using 3 eight hour shifts in solid

    • Only get 2 feet day through first 200 feet of unconsolidated

    • Lets Detail the crew


Shafting crew l.jpg

Shafting Crew

  • Typical Sinking Crew would be 5 people

    • 4 laborers – 1 supervisor

    • doing rounds, support ect. (from SERPA)

    • wages $15.46/hr (1997 base from WMCS)

    • 4*24*$15.46 = $1,484/day

    • Time 100 days for first 200 ft

      • 69 days more for next 550 ft through solid rock

    • 169 days at $1,484/day = $250,823

    • I’ll deal with supervisor later


Support people l.jpg

Support People

  • Engineering/Technical Crew

    • 1 person (some would use 2) (3 for 3 shifts) SERPA

    • $16.15/hr 1997 cost WMCS

    • $388/day * 169 days = $65,504

  • Mechanical Crew

    • 2 people (6 for 3 shifts) SERPA

    • $20.98/hr 1997 cost WMCS

    • $1007/day*169 days = $170,190


Surface crews l.jpg

Surface Crews

  • Surface and Yard Workers 2

  • Rate $11.89/hr

    • 2*$11.89*24*169 = $96,452

  • Sinking Hoist Operator

    • $16.50/hr*24*169 = $66,924


Supervisory crews l.jpg

Supervisory Crews

  • 1 supervisor/shift $23.94/hr

    • $23.94*24*169 = $97,101

  • Total Labor Cost

    • $746,994 say $747,000

  • Indexing Labor

    • $747,000* 17.89/16.15 = $827,500


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The Burden of Burden

  • Workers get fringe benefits

    • health, vacation time etc.

    • government mandated programs

      • social security / medicare / unemployment / workers compensation

  • Often Expressed as a percentage of wage

    • Quarries around 30%

    • Metals commonly around 40%

    • Some coal may be 60%

    • WMCS estimates 36% for Shaft Sinking


Dropping the burden on the project l.jpg

Dropping the Burden on the Project

  • $827,500 * 1.36 = $1,125,000

  • Explosives Cost

    • Rounds at 4 lbs/ton

    • Need to know concrete thickness

      • have about 15 inch thick (some squeeze for horizontal stress)

      • for 20 ft finished diameter - need 22.5 feet

        • with some over-excavation 23 feet

    • Rock density about 170 lb/ft^3

      • 35.3 tons per foot of Advance


Having a blast l.jpg

Having a Blast

  • 35.3 tons/ft * 4 lbs/ton = 141 lbs of explosive per foot of advance

    • 106,000 lbs @ $1.54/lb = $163,000

  • At about 1 round shot/day

    • 110 caps/day * 169 days = 18,590 caps

    • @$1.81 each = $33,650

  • Chord and Supplies about 50% of caps (no boosters here)

    • $16,824


Breaking cost l.jpg

Breaking Cost

  • $213,500 for explosives

  • Drilling Consumables at about 25% of explosives

    • $53,400

  • Breaking Cost (less labor counted elsewhere)

    • $267,000

  • Index to end 2002

    • $267,000 * 149.7/149.1 = $268,000


Non labor mucking costs l.jpg

Non-Labor Mucking Costs

  • At $2.50/ton (include disposal)

    • 35.3 tons/ft * $2.5 = $88.30/ft

    • for 750 ft $66,216 (current cost)

  • Concrete Cost

    • 23 ft outside diam - 20 ft inside

    • 3.75 cubic yard per foot of advance

    • Concrete at $80/cubic yard delivered to site

    • $225,000 for concrete


Other supplies l.jpg

Other Supplies

  • Steel cost at about 1.5 times concrete

    • $337,500

    • includes materials to advance utilities down shaft and put in guides for skips

  • Concrete and Steel

    • $562,500

  • 10% for misc supplies

    • $56,250 total

  • Supplies Subtotal $618,750


Direct cost of shaft l.jpg

Direct Cost of Shaft

  • Labor $1,125,400 + Breaking $268,000 + Mucking $66,200 + Supplies $618,750

  • $2,078,350

  • 10% contingency $2,286,200

  • 15% contractor mark-up and mobilization

    • $2,629,000

  • Note that we did consider some site specific problems with large amounts unconsolidated Overburden and ground stresses


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Pre-Feasibility / Feasibility Contrast

  • At Order of Magnitude just scaled off of someone elses approximate cost

  • Pre-Feasibility was either a factored cost estimate or a simple itemized cost estimate (ie cost per foot of shaft)

  • At Feasibility stage it became a much more carefully itemized exercise

    • we were still flakey on cost of service lines pipes

  • As move to Budget Authorization likely bring in contractors to bid specifically on the job


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