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• Approach
– Figure out how much time it will take to drill
the holes each year
– Figure out how many drills you need and how
many hours they will work
– Figure out how long the drill will last
– Now you have Capital Cost for drills and the
life of the drills you can get an annual cost to
own the drills
Our Spreadsheet
With 8 months, 5 days a week and 10 hour shifts I have 1714 hours
Max available on one drill.
Other Ownership Costs
• Taxes and Insurance
– These are commonly approximated as a percentage of
the value of the equipment
– Most mining equipment tends to be 4 to 7% of value
depending on what it is.
– Problem is that the value varies with time as the asset
grows old and wears out
– Idea is to get the average value at the start of each tax
or insurance year
• Industry term is average annual investment.
Spreadsheet Gets Taxes as a Function of
Average Annual Investment
Bit and Steel Cost = Cost Per Foot Drilled * # of feet of drilling
Total Up the Non-Labor Direct Drill
Operating Costs
Getting Drill Labor Cost
Indicate the
Number of
Booster per hole
Indicate the
Number of
Initiation points
Identify the number of surface or down hole delays used in your
Pattern (needed for non-el and det cord)
Spread Sheet Calculations
Secondary breakage on top of grizzly screen costs money. Take a cost/ton for
Secondary breakage * tons needing breakage. (The percentage of your tonnage
Needing secondary breakage comes from Havablast Spreadsheet).
Note – Even if 2ndary breakage is within acceptable limits it still does not happen
For free.
Excess Wear Penalty
When rocks are too big it puts extra wear on trucks, bed-liners, suspensions, loader
Teeth and hydraulics and other things. Spreadsheet uses D50 from the Havablast
Spreadsheet and a cost per inch for excess size to estimate. (Note that you could
Change values to tune a sheet like this to a specific operation).
Cost of Suspended Operations
When blasting is to be done, equipment is pulled back and workers not needed for
The blasting work are evacuated from the pit. Equipment not in service still has
An ownership cost and workers still are paid. Even if the blast may be done in less
Than 10 minutes people slowing down before the blast and then getting “in the groove”
After takes time.