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Basic Estimated Capital Investment and Operating Costs for Coal Strip Mines. Revision of IC 8661.

Katell S; Hemingway EL; Berkshire LH
NTIS: PB 252 495 :37 pages
This Bureau of Mines study estimates typical capital investments, operating costs, and selling prices for two bituminous coal strip mines in the eastern and interior provinces and a subbituminous coal operation in the northern great plains province. The annual productions were based on tonnage required to fuel a 250-million- standard-cubic-foot-per-day, high-btu gas plant. The annual tonnage for the eastern province mine is 4.8 million tons; for the interior province mine, 6.72 million tons; and for the northern great plains province mine, 9.2 million tons. It is assumed that the mines have a 20-year life. Wages and union welfare payments are considered as of December 6, 1974, under the terms of the bituminous wage agreement of 1974, and costs for material and equipment are based on 1975 indexes. Initial capital investment varies: $65,137,900 for the 4.8-million-ton-per-year (mm tpy) mine in the eastern province, $78,514,600 for the 6.72-Mm-tpy mine in the interior province, and $42,050,100 for the 9.2-Mm-tpy mine in the northern great plains province. Total capital investments for the eastern province mine, the interior province mine, and the northern great plains province mine are $86,969,900, $109,378,500, and $78,543,500, respectively. Corresponding selling prices for the coal, per ton, are $6.94, $6.03, and $3.39, Assuming a 15-percent discounted cash flow rate of return after federal income taxes. These studies are considered typical for the areas involved. Costs will vary depending on specific locations in these areas. (Out of print.)
Publication Date
Document Type
IH; Information Circular;
Fiscal Year
NTIS Accession No.
NTIS Price
Identifying No.
IC 8703
Source Name
NTIS: PB 252 495
Page last reviewed: November 26, 2021
Content source: National Institute for Occupational Safety and Health Education and Information Division