Cost Analysis of Underground Support Construction

In the real world of coal mining, the bottom line for almost every support project decision is economic (i.e., what is it going to cost?). Up to this point, I have discussed the methods to improve the performance of typical support projects by better installation, materials, and techniques, thus lowering the impact of the bottom line cost. In this chapter, 1 shall explore what costs are relevant in mining construction, and how these costs are developed. The chapter centers around two major discussions: (I) developing cost accounting techniques, and (2) cost-estimating procedures for support construction. Each focuses on the fundamentals of practical cost considerations necessary for decisions on construction projects underground. Since cost accounting, economics, and investment planning are all subjects which warrant complete discussions on their own, this chapter will focus on distilling the important concepts required by a planning engineer into an easily understandable presentation.