OFR-76-93 Alaskan Mineral Industry Cost Escalation Factors

The U. S. Bureau of Mines has undertaken the development of mineral industry cost escalation factors to enable the estimation of mineral development and extraction costs for mineralized sites in Alaska throught the use of the Bureau's Cost Estimating System v2.0 (CES 2.0). For the purposes of this document, all calculations are based on, and reflect the economic environment in Alaska in July 1992. The greater cost of mining in Alaska as compared to the contiguous-48 States can be estimated for Alaskan mining operations through (1 ) the analysis of capital and operating costs for analogous mine and mill plants in operation in the contiguous-48 States; (2) the hypothetical relocation of mine and mill plants from their actual location(s) to Alaska by making engineering modifications to the mine and mill plant design as required by the Alaskan site characteristics; (3) calculation of the cost of the required engineering modifications and; (4) the escalation of all costs to a level representative of the economic environment in Alaska at some specific point in time.