Metalytics - Coal Cost Models

Metalytics Coal Cost Models. 


Metalytics coal cost curves are derived from engineering-based coal cost models for each mine. The models cover the full range of surface mining methods - draglines, rope/hydraulic shovels, excavators and truck fleets, drilling and blasting, loading and hauling. For underground mining the models cover longwall, continuous mining and bord and pillar mining, plus of course coal washing as required. Offsite rail costs are estimated from gross and net tonne-kilometre costs specific to each rail network used for coal haulage in each producer country. Port costs are derived from reported port charges where available, and ocean freights are calculated for capesize, panamax and handymax vessels using current bunker and diesel prices, time charter costs and toll charges. Royalties are calculated according to statutory formulas. For mines producing more than one saleable product, cash costs are value-weighted according to saleable product prices.

Each mine model draws cost estimation data from look-up tables for each country, where table costings are estimated from survey data and the Cost Estimation Handbook published by the Australasian Institute of Mining and Metallurgy. Look up table cost estimates for the various mining methods and processing routes are driven by labour, fuel and power costs indices and by up to eight separate equipment operating cost indices.

The Metalytics coal mine cost modelling was initially created by Marc Gersteling, an accomplished mining engineering professional and coal industry specialist, with over 15 years’ experience in the mining industry. He has worked throughout Australia’s major coal basins for producers including the BHP Billiton Mitsubishi Alliance, Rio Tinto Coal Australia and Xstrata Coal in site-based detailed mine planning and design roles. This included working at various times as a Truck and Shovel Mine Planning Engineer, Drill and Blast Engineer, Coal and Partings Scheduling Engineer and Mid-Term Mine Planning Engineer.

See our model for BHP Billiton's Mt Arthur mine in NSW Australia, and the associated costing lookup table for Australian coal mines.

You can also see our model for the former CONSOL Buchanan metallurgical underground mine in the USA.

Modelled mines cover export production from Australia, Indonesia, Vietnam, South Africa, Mozambique, USA, Canada, Colombia, Venezuela, Russia, Czech Republic and Mongolia. Currently we are modelling over 470 mines in these countries, producing in 2015 almost 350Mt metallurgical coal and 825 Mt seaborne export thermal coal.

All years from 2010 to 2020 are modelled to produce coal cost curves for mines, companies and countries for export metallurgical and thermal coal. The cost curves show mine, processing, inland transport, royalties and port loading for FOB cost courves plus seaborne freight costs for CFR China and CFR Rotterdam cost curves. All cost curves come with a backing data table containing the plotted data. Example cost curves can be viewed from the cost curve list at the bottom of the previous page.

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