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    EArt-What Does A Feasibility Study Cost

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    Moly69x
    The document discusses the results of a feasibility study review conducted by AMC Consultants of 105 mining feasibility studies from 2000-2007. It found that on average, the capital cost of open pit projects was $53 million plus $33 million per 1 million tonnes of annual ore production. For underground projects, the average was $37 million plus $68 million per 1 million tonnes. Feasibility study costs averaged 5.7% of project capital for underground mines and 4.6% for surface mines. Higher study costs, over 10% of capital, tended to be for expansions of smaller projects or those including large drilling programs.

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    EArt-What Does A Feasibility Study Cost

    Uploaded by

    Moly69x
    72 views1 page
    The document discusses the results of a feasibility study review conducted by AMC Consultants of 105 mining feasibility studies from 2000-2007. It found that on average, the capital cost of open pit projects was $53 million plus $33 million per 1 million tonnes of annual ore production. For underground projects, the average was $37 million plus $68 million per 1 million tonnes. Feasibility study costs averaged 5.7% of project capital for underground mines and 4.6% for surface mines. Higher study costs, over 10% of capital, tended to be for expansions of smaller projects or those including large drilling programs.

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    feasibility study fees

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    EArt-What Does a Feasibility Study Cost

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    The document discusses the results of a feasibility study review conducted by AMC Consultants of 105 mining feasibility studies from 2000-2007. It found that on average, the capital cost of open pit projects was $53 million plus $33 million per 1 million tonnes of annual ore production. For underground projects, the average was $37 million plus $68 million per 1 million tonnes. Feasibility study costs averaged 5.7% of project capital for underground mines and 4.6% for surface mines. Higher study costs, over 10% of capital, tended to be for expansions of smaller projects or those including large drilling programs.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    72 views1 page

    EArt-What Does A Feasibility Study Cost

    Uploaded by

    Moly69x
    The document discusses the results of a feasibility study review conducted by AMC Consultants of 105 mining feasibility studies from 2000-2007. It found that on average, the capital cost of open pit projects was $53 million plus $33 million per 1 million tonnes of annual ore production. For underground projects, the average was $37 million plus $68 million per 1 million tonnes. Feasibility study costs averaged 5.7% of project capital for underground mines and 4.6% for surface mines. Higher study costs, over 10% of capital, tended to be for expansions of smaller projects or those including large drilling programs.

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    of 1

    FEASIBILITY

    19/3/08

    1:46 pm

    Page 1

    INTERNATIONAL PROJECT STUDIES

    What does a feasibility study cost?


    Paul Harper, General Manager of AMC Consultants, reveals some interesting data

    ast year, AMC undertook a review of 105


    feasibility studies completed worldwide
    between January 2000 and January 2007.
    These were final feasibility studies for new mines
    and expansions prepared by consultants,
    engineering firms and in-house mining company
    teams. There were 69 surface mines and 36
    underground mines in the study, which was
    prepared for AMCs internal purposes. Figure 1
    shows the relationship between the mining rate
    (expressed as tonnes of ore per annum) and the
    project capital cost, adjusted to 2007 Australian
    dollars. The high outliers in Figure 1 are nickel
    laterite and iron ore projects with extensive
    infrastructure requirements. Figure 2 shows the
    same relationship for underground projects
    separately for clarity.
    The average capital cost of open pit projects can
    be expressed as $53 million plus $33 million per 1
    Mt/y of ore production and treatment capacity. For
    underground projects, the relationship is $37
    million plus $68 million per 1 Mt/y of ore
    production and treatment capacity. As the charts
    show, there is a wide variation in these costs.
    The relationship between project capital cost
    and the feasibility study cost is shown in Figure 3.
    Study costs averaged 5.7% of project capital for
    underground mines and 4.6% for surface mines.
    The higher study costs, above 10% of capital,
    tended to be for expansions of smaller projects
    and were also influenced by the inclusion of the
    cost of large drilling programs or trial mining. It
    proved impossible to normalise the available data
    for these effects.
    As might be expected, the cost of the mining
    component of a feasibility study (geology,
    geotechnical, mine design, scheduling and costing)
    was a low proportion of the total cost of
    establishing the mining operation, at around 1%
    of mining department capital cost.
    There was a substantial increase in project and
    study costs during the period considered,
    particularly after 2004. AMC does not yet have
    enough data to adjust out this effect, but the
    relationship between study cost and project capital
    cost is likely to remain valid. IM

    Figure 1 All projects

    Figure 2 Underground projects

    Figure 3 All projects


    60 International Mining APRIL 2008

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