The Epri Coal Mining And Preparation Cost Model

This paper describes the features of a computer cost model developed to estimate requirements and costs of individual coal mining projects. Detailed cost analysis procedures for both coal mining and preparation are incorporated into the model. This model has been developed over a period of seven years through funding provided by the Electric Power Research Institute (EPRI). The model follows a process engineering approach for the estimation of all project capital and operating costs. A discounted cash flow analysis procedure is also designed into the model to allow for the solution of cost/ton or cost/MMBtu of clean coal production. The model can be applied to most surface or underground mining deposits and can accommodate a wide variety of coal washing situations. This flexibility makes the model a particularly useful tool for preliminary project analysis, property screening, investment analysis, mining technology assessment, coal cleaning level assessment, and general property valuation.