Estimating Costs for Mining Prefeasibility Studies

Estimating Costs for Mining Prefeasibility Studies

Areas of Study: Management

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Premium Peer-Reviewed

This course introduces the methodologies of mining cost estimating, and prepares users to complete a credible estimate. The course focuses on itemized cost estimating methods in the context of a mine plan. *** This is a premium course which has been peer-reviewed by a committee appointed by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and the Society for Mining, Metallurgy and Exploration (SME)

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  • Audience Level:
  • Professional
  • Enrollment:
  • Required
  • Duration:
  • 15 hours

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Certification is optional. Enrollment is required for Certification.

  • Fee for Certification:
  • Not Available
  • Completion:
  • 30 days
  • CEUs:
  • 1.5 (15 PDHs) (SAIMM: 1 CPDs)

Course Summary

Introduction

If you are an exploration geologist, a mining engineer, a metallurgist, a mine accountant, or a practitioner of any of a number of other mining-related specialties, at some time you will be asked to do a cost estimate. Mining is an economic endeavor, and, after safety, the cost of mining and its related processes is one of the most important considerations in that endeavor.

This course introduces you to the methodologies of mining cost estimating, and prepares you to complete a credible estimate. The course focuses on itemized cost estimating methods in the context of a mine plan. It covers the costs of excavating, loading, hauling, drilling and auxiliary equipment as well as the costs of supply, personnel, stripping and other requirements.

Course Content

The course is presented in seven parts:

  • Part 1 - Introduction to Cost Estimating
  • Part 2 - Itemized Cost Estimation: Planning
  • Part 3 - Itemized Cost Estimating: Equipment
  • Part 4 - Itemized Cost Estimating: Auxiliary Equipment and Supply
  • Part 5 - Itemized Cost Estimating: Requirements and Costs
  • Part 6 - Useful Techniques
  • Part 7 - Other Cost Estimating Methods
The course comprises 23 viewing sessions of 30 - 60 minutes each, plus seven reviews of multiple choice questions. Estimated course duration is equivalent to approximately 15 hours of learning content.

Learning Outcomes

  • Identify and discuss the itemized cost estimating method, and other methods, as they pertain to excavating, loading, hauling, drilling and auxiliary equipment as well as the costs of supply, personnel, stripping and other requirements.
  • Prepare a credible cost estimate based on a mine plan and the itemized cost estimating method.

Recommended Background

  • A degree or diploma in a mining-related discipline and and direct experience and knowledge of the mining process.

Otto Schumacher

Otto Schumacher is a professional mining engineer and professional geologist based in Spokane, WA, USA. He holds a Bachelor of Geological Engineering degree from the University of Minnesota and a Master of Science - Geology degree from the University of New Mexico. He has worked as a mining engineer and geologist in underground mine operations for base and precious metals as well as on exploration projects for uranium and iron. He began specializing in mining cost and economic analysis upon joining the U.S. Bureau of Mines as Supervisor, Mining Feasibility Analysis Group, where he was responsible for development of aspects of Bureau systems for mine cost estimating and mineral property evaluation. In 1983 he started Western Mine Engineering, Inc., the predecessor to InfoMine's CostMine division, where he consulted and taught seminars in the area of mine evaluations, and also developed Mining Cost Service and related publications. He presently serves as a Director and technical advisor to CostMine. He is a past president of the Columbia Section of SME and a past president of the Northwest Mining Association (now American Exploration and Mining Association).