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n 
 
 Bureau of Mines Information Circular/1986 
 
 Company Towns Versus Company 
 Camps in Developing Alaska's 
 Mineral Resources 
 
 By Robert Bottge 
 
 UNITED STATES DEPARTMENT OF THE INTERIOR 
 
 tJMMMMIWMMIil llW M 
 
 t t au ur i fMAmim ivHm m i Hr im m r w r MJtn i wWFl ' m ' J l TJi! 
 
ClMfaJtibti*. b*fi»*rf'!M£ 
 
 Information Circular 9107 
 // 
 
 ,r 
 
 Company Towns Versus Company 
 Camps in Developing Alaska's 
 Mineral Resources 
 
 By Robert Bottge 
 
 UNITED STATES DEPARTMENT OF THE INTERIOR 
 Donald Paul Hodel, Secretary 
 
 BUREAU OF MINES 
 Robert C. Horton, Director 
 
 i.iiinni—uiinmaili.lllJManra 
 

 o 
 
 1 
 
 ^ 
 
 Library of Congress Cataloging-in-Publication Data 
 
 Bottge, Robert. 
 
 Company towns versus company camps in developing Alaska's 
 mineral resources. 
 
 (Information circular; 9107) 
 
 Bibliography: p. 5 
 
 Supt. of Docs, no.: I 28.27: 9107 
 
 1. Miners — Alaska — Housing. 2. Industrial housing — Alaska. 3. Mineral indus- 
 tries — Alaska — Employees — Housing. 4. Company towns — Alaska. I. Title. II. Company 
 camps in developing Alaska's mineral resources. III. Series; Information circular (United 
 States. Bureau of Mines); 9107. 
 
 TN295.U4 622 s 
 
 [HD7289.5.M5982U53] 
 
 [307.7'67'097981 
 
 86-600228 
 
CONTENTS 
 
 Page 
 
 Abstract 1 
 
 Introduction 2 
 
 Company towns 2 
 
 Company camps 2 
 
 The commuting option 2 
 
 Economic considerations 3 
 
 Hypothetical underground mine example 3 
 
 Hypothetical open-pit mine example 4 
 
 Page 
 
 Conclusions 5 
 
 References 5 
 
 Appendix A. — Capital costs 6 
 
 Appendix B. — Operating costs 9 
 
 Appendix C. — Estimating the work force size .... 11 
 
 ILLUSTRATIONS 
 
 A-l. Alaska capital cost factors back pocket 
 
 A-2. Townsite costs versus total employees, 1984 dollars 7 
 
 A-3. Campsite costs versus total employees, 1984 dollars 8 
 
 C-l. Total employees versus daily tonnage in cut-and-fill mining 12 
 
 C-2. Total employees versus daily tonnage in blasthole mining 13 
 
 C-3. Total employees versus daily tonnage in open-stope mining 14 
 
 C-4. Total employees versus daily tonnage in long-hole mining 15 
 
 C-5. Total employees versus daily tonnage in shrinkage-stope mining 16 
 
 C-6. Total employees versus daily tonnage in room-and-pillar mining 17 
 
 C-7. Total employees versus daily tonnage in open-pit mining 18 
 
 TABLES 
 
 1. Mine assumptions 3 
 
 2. Capital and annual costs and required copper prices by region for a 1,000-st/d underground mine 4 
 
 3. Capital and annual costs and required copper prices by region for a 50,000-st/d open-pit mine 4 
 
 C-l. Cut-and-fill mining data 12 
 
 C-2. Blasthole mining data 13 
 
 C-3. Open-stope mining data 14 
 
 C-4. Long-hole mining data 15 
 
 C-5. Shrinkage-stope mining data 16 
 
 C-6. Room-and-pillar mining data 17 
 
 C-7. Open-pit mining data 18 
 
 C-8. Estimate of mine and mill personnel by type of mining 19 
 
 I IW WH I M IH 
 
 ■•"'-—-"' ■ mlMHMIIIUHMlllMUMIIIll 
 
UNIT OF MEASURE ABBREVIATIONS USED IN THIS REPORT 
 
 d/wk 
 
 day per week 
 
 St 
 
 short ton 
 
 h 
 
 hour 
 
 st/d 
 
 short ton per day 
 
 h/d 
 
 hour per day 
 
 yr 
 
 year 
 
COMPANY TOWNS VERSUS COMPANY CAMPS IN DEVELOPING 
 ALASKA'S MINERAL RESOURCES 
 
 By Robert Bottge 1 
 
 ABSTRACT 
 
 When a company develops a mineral property in a remote area of Alaska, it must 
 consider how best to house its personnel. This Bureau of Mines report examines the 
 economics of two options: company towns and company camps. The price required to 
 maintain a 15% discounted-cash-flow rate of return (DCFROR) was derived for 
 hypothetical 1,000-st/d cut-and-fill mines and 50,000-st/d open-pit mines located in 
 three different regions of the State. One set of hypothetical mines utilizes a townsite; 
 the other utilizes a relatively new concept, a fly-in camp or commuting operation, in 
 which two shifts of employees operate the mine and all associated facilities for 1 week 
 before being replaced by a second crew. 
 
 The study shows that operating costs were higher for mines employing the 
 commuting option than for mines having a company town because of the additional 
 wages paid for overtime hours; however, the price required to obtain a 15% DCFROR 
 for the single-product copper concentrate, f.o.b. the mill site, was significantly lower 
 owing to the lower investment costs for the camp-type operation. The economic 
 advantage for those mines utilizing the camp increases from south to north and from 
 the coast toward the interior. 
 
 'Mineral economist, Alaska Field Operations Center, Bureau of Mines, Juneau, AK. 
 
INTRODUCTION 
 
 The development of mineral deposits in Alaska 
 usually involves the need to provide living accommoda- 
 tions for employees. The options range from constructing a 
 camp for which the company provides room and board to 
 building a townsite which is administered by the company 
 with housing for single people as well as those with 
 families. The capital cost of providing housing for 
 personnel in remote areas must be weighed against the 
 operating costs inherent with each option. If the company 
 operates only during the summer, it will likely opt for 
 mobile bunkhouse units. However, if the company mines 
 year-round, it may want to consider a different set of 
 options. This report explores two housing options avail- 
 able for long-term permanent mining operations and 
 analyzes the impact of each on the total cost of two mining 
 ventures in three regions of the State. 
 
 A computerized costing system was used for develop- 
 ing cost data. The system developed for the Bureau of 
 Mines was designed to estimate capital and operating 
 costs within ± 25% of actual costs for the 48 contiguous 
 States (3). 2 For Alaska, the costs were modified to reflect 
 higher local costs. While the exact values determined by 
 the model should be viewed cautiously, this method seems 
 reasonable for the purpose of comparing the cost of the 
 housing options explored here. 
 
 For determining the price required to obtain a 15% 
 discounted cash flow rate of return (DCFROR) for each 
 mining scenario, a second computer program developed by 
 the Bureau of Mines was utilized. The Mine Simulation 
 Program (MINSIM8) 3 was capable of handling all data 
 input without modification. 
 
 COMPANY TOWNS 
 
 Company towns are those communities in which 75% 
 of the work force serves a single industry and its 
 supporting companies (25). Commonly the towns are 
 associated with resource-based or transportation-related 
 industries involved in mining and smelting ore, cutting 
 and processing trees, processing pulp and paper, or 
 building, maintaining or servicing railroads. 
 
 Though the resource that motivates their creation 
 will eventually be exhausted, many mine-related towns 
 may be viewed as relatively permanent. However, when 
 the projected mine life is less than 30 yr and the location is 
 remote, the company often is compelled to build apart- 
 ments or homes for its employees which it then rents to 
 them, generally at a nominal fee. It must also provide 
 schools, churches, a community center, streets, sewers, 
 water, electricity, telephones, landscaping, stores, offices, 
 and a hotel. Once the town is built, the company must 
 
 operate and maintain all these facilities. In addition to 
 running the mine and mill complex, the mine manager or 
 superintendent also assumes final responsibility for the 
 townsite. 
 
 The newer towns tend to be more isolated, more 
 technologically intensive, and more carefully planned, 
 and to have more government participation in community 
 development (12). Tumbler Ridge, BC, Canada, exem- 
 plifies this new movement in town conception and 
 development. Here, the Province of British Columbia has 
 created an autonomous townsite to serve two new coal 
 mines that are operated by a private company (8). Because 
 an incorporated town might be eligible for government 
 funds for such municipal services as schools, fire protec- 
 tion, hospitals, sewers, and water, the company's financial 
 burden may be lower than if it had to provide these 
 services itself. 
 
 COMPANY CAMPS 
 
 Camps differ from townsites in one principal way: 
 while a townsite usually has a mix of single and married 
 people housed in dormitories, apartments, mobile units, 
 houses, and multifamily structures, a camp usually 
 consists of either portable or permanent structures for 
 housing working employees only. Housing facilities in a 
 small company may consist of a bunkhouse for sleeping all 
 employees and another unit for preparing and serving 
 
 meals; larger companies may provide a number of 
 bedrooms to sleep four to six employees off a central living 
 area. Still larger companies may provide dormitories with 
 a number of bedrooms off a corridor leading to a recreation 
 room, dining room, and laundry. The number of square 
 feet of living space varies with the company and the 
 longevity of the project. 
 
 THE COMMUTING OPTION 
 
 Historically, company-run camps were in remote 
 locations. Wages were high to entice employees, usually 
 men, to work there. But turnover was high and the 
 employees left as they accumulated a "nestegg," com- 
 pleted a contracted work tour, found employment closer to 
 their homes, were lonely for their families, or just drifted 
 on. 
 
 In an attempt to stabilize the workforce in remote 
 locations and lower operating costs, companies operating 
 in northern Canada have introduced a number of 
 
 2 Italic numbers in parentheses refer to items in the list of references 
 preceding appendix A. 
 
 3 Further information on MINSIM8 may be obtained by contacting the 
 Division of Minerals Availability, Bureau of Mines, Washington, DC. 
 
commuting options. Employees are brought to a remote 
 site at company expense, work a relatively short, 
 predetermined work schedule, and then are returned to a 
 home location. A number of scenarios have been im- 
 plemented, including seven 12-h days at the work site and 
 seven days at home (called seven on-seven off or 
 seven-twelves), 20 days on and 10 days off, 30 days on and 
 14 days off, and 6 weeks on, 2 weeks off (13). The results of 
 the various programs indicate that the shorter the work 
 period, the lower the turnover rate (13). 
 
 In Alaska, the oil industry in Cook Inlet has long 
 worked its platform employees 12-h days, 7 days on and 7 
 off. The same work schedule has been followed for the 
 
 oil-related activities on the North Slope and the Trans- 
 Alaska pipeline pump stations. At the Polaris Mine on 
 Little Cornwallis Island, NT, Canada, "southerns" work 
 10 weeks on and 2 weeks off while the Native Inuit work 
 either that schedule or 6 weeks on and 4 weeks off (20). In 
 other Canadian mines, the system of seven on-seven off is 
 often employed (4, 9, 14). Chenard said the seven on-seven 
 off system seemed the most suitable for everybody 
 involved (6). Cominco, Ltd., is planning to implement a 
 commuting program for its employees at the Red Dog 
 Mine in northwestern Alaska during the projected 50-yr 
 life of the mine (2). 
 
 ECONOMIC CONSIDERATIONS 
 
 Labor is a major cost in any mining venture, and 
 labor turnover reduces efficiency and raises operating 
 costs. While the fly-in or commuting option is not a 
 panacea for all remote mining ventures, it does provide 
 some benefits for the company and for its personnel. 
 Employees receive large paychecks and large blocks of 
 time off to spend with their families or for other activities. 
 The company tends to attract more mature, family- 
 oriented people who give the company stability, good 
 performance, fewer accidents, less absenteeism and lower 
 turnover. (3). The company's capital costs for the venture 
 are lower because it does not have to build, manage, and 
 maintain a remote townsite. 
 
 To measure the impact of each housing option on the 
 total economic picture for a mining venture, two types of 
 mines are proposed in three geographically different parts 
 of Alaska: Southeast, South-Central, and North-Central. 
 An underground cut-and-fill operation producing 1,000 
 st/d and a 50,000-st/d open-pit mine are examined with 
 the fly-in or commuting option and with the townsite 
 option. 
 
 HYPOTHETICAL UNDERGROUND MINE 
 EXAMPLE 
 
 The assumptions for the three cut-and-fill mining 
 scenarios were essentially the same (table 1). Major cost 
 differences occurred with the different regional locations. 
 Capital and operating costs for the mines, concentrators, 
 and town or camp sites increased from south to north and 
 from coastal to interior locations. Regional capital and 
 operating costs are discussed in some detail in appendixes 
 A and B. 
 
 Major differences in capital and operating costs 
 occurred with the choice of a town or camp site. For the 
 townsite scenario, 428 people were required to fill the 102 
 positions in the mine (358 employees) and the concentra- 
 tor (70 employees) for the three 8-h shifts each day. 
 Appendix C discusses the number of employees likely to 
 be employed in six types of underground mines and in 
 open-pit mining. 
 
 A commuter campsite required 204 people for each 
 week's crew (171 in the mine and 33 at the concentrator). 
 Because each crew worked 1 week and was off 1 week, a 
 total of 408 people was required. The difference in the 
 total of 428 people for a townsite and 408 for a campsite 
 was due to the number of hours worked; townsite 
 
 employees worked 8 h/d, 5 d/wk, and campsite employees 
 worked 12 h/d, 7 d/wk. Both the mine and the concentrator 
 in the townsite and campsite operations were assumed to 
 run 7 d/wk. The town would have to be large enough to 
 house a pool of additional employees equal to 20% of the 
 work force to fill in for those people on annual and sick 
 leave, or in training, or for those who had quit. For the 
 camp option, the towns and villages surrounding the point 
 of embarkation would house the excess people for the mine 
 and concentrator. 
 
 The townsite not only had more employees, but each 
 employee could be expected to add anywhere from 0.7 to 
 1.8 additional people to the townsite, depending upon how 
 strongly the company encouraged families to live there. In 
 January and February 1982, the town of Faro, YT, 
 Canada, had 2,128 people when the Anvil Mining Co. had 
 767 direct employees, a ratio of 2.77:1 (11). In 1973, the 
 town of Clinton Creek, YT, Canada, had 515 people living 
 
 TABLE 1 . — Mine assumptions 
 
 
 
 Underground 
 
 
 Open-pit 
 
 Assumptions 
 
 cut-and-fill mine 
 
 
 mine 
 
 
 Town 
 
 Camp 
 
 Town 
 
 Camp 
 
 Total employees, mine . . . 
 
 358 
 
 171 
 
 428 
 
 204 
 
 Total employees, 
 
 
 
 
 
 concentrator 
 
 70 
 
 33 
 
 378 
 
 180 
 
 Work tours, hours per 
 
 
 
 
 
 week 
 
 40 
 
 84 
 
 40 
 
 84 
 
 Type of ore deposit 
 
 
 Copper 
 
 
 Copper 
 
 Reserves st . . 
 
 5,20C.'X>: 
 
 345.iJ0u.0Cii! 
 
 Ore grade % . . 
 
 
 5 
 
 
 0.5 
 
 Mining rate, ore . . st/d . . 
 
 
 1,000 
 
 
 35,000 
 
 Mining rate, waste st/d . . 
 
 
 
 
 
 15,000 
 
 Mine life yr . . 
 
 
 15 
 
 
 30 
 
 Mine-mill operating 
 
 
 
 
 
 efficiency % . . 
 
 
 90 
 
 
 90 
 
 Ore recovery % . . 
 
 
 95 
 
 
 100 
 
 Mine locations were 
 
 
 
 
 
 remote from major cities 
 
 
 Yes 
 
 
 Yes 
 
 Ground transportation 
 
 
 
 
 
 connected mine to 
 
 
 
 
 
 supply sources 
 
 
 Yes 
 
 
 Yes 
 
 All price determinations 
 
 
 
 
 
 were at the mine site 
 
 
 
 
 
 before smelter and 
 
 
 
 
 
 refining charges and 
 
 
 
 
 
 transportation costs . . . 
 
 
 Yes 
 
 
 Yes 
 
 15%DCFRORon 
 
 
 
 
 
 investment was 
 
 
 
 
 
 assumed 
 
 
 Yes 
 
 
 Yes 
 
 Straight-line depreciation 
 
 
 
 
 
 was used on all items . 
 
 
 Yes 
 
 
 Yes 
 
 Standard State and 
 
 
 
 
 
 Federal taxes were 
 
 
 
 
 
 assumed 
 
 
 Yes 
 
 
 Yes 
 
 iwtTw i nn i mm mmwiii ii i i wii 
 
 i nii«MiwiMffi« « «i^^ 
 
at the site of the Clinton Mine Division of Cassiar 
 Asbestos Corp., Ltd., which had 296 direct employees, a 
 ratio of 1.74:1 (5). In this report a ratio of 2.66:1 was 
 arbitrarily chosen, which meant that the townsite 
 contained 1,150 people. A ratio of 2.66:1 indicated that the 
 company's policy was to encourage workers with families 
 to settle in the town and stabilize the work force. 
 
 A townsite for 1,150 people cost considerably more 
 than a campsite for 204, not only because of the physical 
 size of the town, but also because of the need for larger 
 diesel electric generators, domestic water facilities, fire 
 protection, shopping and recreational areas, etc. On the 
 other hand, the campsite cost more to operate. The 
 difference was in the salaries. Personnel in the town 
 worked five 8-h days per week; camp employees worked 
 seven 12-h days, which included 44 h of overtime per 
 week. 
 
 Table 2 summarizes capital and annual costs for a 
 1,000-st/d underground mining venture for three regions 
 of Alaska utilizing a campsite or a townsite. Total initial 
 capital costs are given for each venture, including the 
 initial housing and electrical costs. Because housing and 
 electrical costs are the major components being varied in 
 the study, they are also shown separately in the second 
 column. Direct annual operating costs, without deprecia- 
 tion, are given to show the impact of the greater wages in 
 the camp situation. The required price (revenue) per short 
 
 ton of copper metal and per short ton of ore mined are also 
 given for each scenario. In both cases, the required price 
 assumes a 15% DCFROR on the respective investment. 
 The table indicates that the combination of relatively 
 lower capital costs and relatively higher annual operating 
 costs in the mining scenario utilizing a campsite produced 
 a cheaper copper price f.o.b. the mill than a mining 
 situation utilizing a townsite. Further, as capital and 
 annual costs increase from south to north, the choice of a 
 campsite becomes more advantageous. 
 
 HYPOTHETICAL OPEN-PIT MINE EXAMPLE 
 
 To check the validity of the calculations made in the 
 first example, a second one was constructed. An open-pit 
 mine moving 35,000 st/d of ore and 15,000 st/d of waste 
 was proposed. All assumptions made for the underground 
 mine applied to the open-pit example except those 
 regarding total personnel and the ore deposit (table 1). 
 
 The method and cost factors for determining capital 
 and operating costs for the open-pit mine were the same as 
 those employed for the underground mine, with one 
 exception: the open pit miners were paid less than the 
 underground miners. 
 
 Table 3 summarizes capital and annual costs and 
 required concentrate prices for a 50,000-st/d open pit mine 
 in three regions of Alaska. The table 3 data indicate that 
 
 TABLE 2.— Capital and annual costs and required copper prices by region for 1,000-st/d underground mine 1 
 
 £?.;!! housing and I°' a ' Required Required 
 
 n«„i„„ ™£ electrical JSISSL revenue revenue 
 
 Re9 ' on S££? capital °S3 g per st per st ore 
 
 costs ' costs costs ' coDDer 4 mined 5 
 millions m°l?ons millions PP 
 
 Southeast Alaska: 
 
 Camp $93.7 $21.5 $32.2 $1,514 $196 
 
 Town 162.2 86.1 27.4 2,025 262 
 
 South-Central Alaska: 
 
 Camp 123.2 27.9 33.5 1,733 224 
 
 Town 205.5 112.0 31.1 2,490 322 
 
 North-Central Alaska: 
 
 Camp ■ 1 50.5 34.9 37.8 2,001 258 
 
 Town 261.4 140.0 35.8 3,020 390 
 
 'Required price is the price to maintain a 15% DCFROR on investment. 
 
 includes environmental impact statement, exploration, access, mining, beneficiation, housing, and electrical costs; the latter 2 categories are also shown 
 separately in the next column. 
 ^Direct operating costs including mining, beneficiation, administration, transportation, housing, and electrical costs. 
 
 "Total revenues over the life of the project (including depreciation and amortization costs) divided by total short tons of recovered copper. 
 5 Total revenues over the life of the project (including depreciation and amortization costs) divided by the total ore mined. 
 
 TABLE 3. — Capital and annual costs and required copper prices by region for 50,000-st/d open-pit mine 1 
 
 To . ta ] housing and J^L Required Required 
 
 Dq „™ f i electrical „„"".' revenue revenue 
 
 9 ° cos P s ca P ital S" 9 P erst P erst ° re 
 
 c °f ts ' costs, co ,f ts ' copper 4 mined 5 
 mllllons millions milhons _ 
 
 Southeast Alaska: 
 
 Camp $774.3 $58.2 $96.8 $1 ,800 $28 
 
 Town 893.8 172.1 89.0 2,022 31 
 
 South-Central Alaska: 
 
 Camp 1,020.7 75.6 102.7 2,265 35 
 
 Town 1,175.6 223.7 97.0 2,580 40 
 
 North-Central Alaska: 
 
 Camp 1,239.0 94.5 113.9 2,693 42 
 
 Town 1,433.6 279.6 109.7 3,104 48 
 
 'Required price is the price to maintain a 15% DCFROR on investment. 
 
 includes environmental impact statement, exploration, access, mining, beneficiation, housing, and electrical costs; the latter 2 categories are also shown 
 separately in the next column. 
 ^Direct operating costs including mining, beneficiation, administration, transportation, housing, and electrical costs. 
 "Total revenues over the life of the project (including depreciation and amortization costs) divided by total short tons of recovered copper. 
 5 Total revenues over the life of the project (including depreciation and amortization costs) divided by the total ore mined. 
 
the open-pit mines having campsites were cheaper to 
 construct than those having townsites. The operating cost 
 for the campsite facility was greater than that utilizing a 
 townsite. Over the life of the mine, the price required to 
 maintain a 15% DCFROR was less for those facilities 
 
 having a campsite. As with the examples using under- 
 ground mines, the cost advantage for an operation using a 
 campsite became greater from south to north and from 
 coastal areas toward the interior. 
 
 CONCLUSIONS 
 
 In developing a remote site, a mining company must 
 decide whether to place its personnel at the mine site or at 
 a distant site from which they commute. Which option is 
 chosen is based in part on company philosophy, but 
 economics can play a big role in making the final decision. 
 As seen from the hypothetical mine examples presented 
 here, mine operations having fly-in or commuter camp- 
 sites are cheaper to build and require fewer people at the 
 site than those employing a town; therefore, initial 
 investment costs are less. However, if a commuter or fly-in 
 type campsite is used, operating costs are higher, 
 primarily owing to higher personnel costs. From the 
 
 standpoint of regional economics, about the same number 
 of people are employed with either option; however, each 
 employee earns considerably more money working 84 h 
 every other week at a campsite than he would working 40 
 h each week at a townsite. But while wage costs are 
 higher with a fly-in or commuter option, turnover, 
 sickness, and absenteeism are relatively lower (3). The 
 price required to obtain a 15% DCFROR for the 
 single-product copper concentrate, f.o.b. the mill site, was 
 significantly lower. The economic advantage for mines 
 utilizing the camp increases from south to north and from 
 the coast toward the interior. 
 
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 20. Scales, M. High Arctic Wizardry: Polaris Mine on Stream. 
 Can. Min. J., v. 103, No. 7, 1982, pp. 24-41. 
 
 21. U.S. Army Corps of Engineers. Cost Engineering. EIRS 
 Bull. 82-02, 1984, 25 pp. 
 
 22. Walsh, P., G Paget, and R. A. Rabnett. Tumbler Ridge: A 
 New Approach to Resource Community Development. CIM Bull., 
 v. 76, No. 853, 1983, pp. 33-38. 
 
 23. Wohlford, J. Engine and Turbine-Powered Generating 
 Plants. Ch. in Society of Mining Engineers Handbook, ed. by I. A. 
 Given. Soc. Min. Eng. AIME, 1973, pp. 23-21 to 23-23. 
 
 I MMtMJIJHHUBftWMdmWiHBi BH B^ 
 
APPENDIX A.— CAPITAL COSTS 
 
 Certainly a major consideration in the choice of a 
 town or a camp is cost. While precise costs may be closely 
 estimated once the go-ahead is given on a project, most 
 economic evaluations require only order of magnitude 
 estimates. Deriving order of magnitude cost estimates is 
 difficult owing to the dearth of precise data available. 
 While the literature often contains cost estimates for new 
 projects, closer scrutiny reveals a lack of precision on what 
 components are included. 
 
 At least two publications can be used to estimate 
 construction costs in Alaska: "Building Construction Cost 
 Data" (10Y and the Corps of Engineers booklet "Cost 
 Engineering" (21). The former publication lists average 
 construction cost indexes for typical "average" building 
 construction projects for 162 cities in the United States 
 and Canada. The latter publication lists location factors to 
 apply to the construction of repetitive-type facilities for all 
 50 States and at military locations within each State. 
 
 A comparison of cost factors for Anchorage versus 
 Washington, DC, in reference 10 shows a factor difference 
 of 1.41; reference 21 shows a factor difference of 1.90 
 between Elmendorf Air Force Base (which borders 
 Anchorage) and Washington, DC. A comparison of con- 
 struction indexes for cities in other States often shows 
 differences of less than 5%. It is interesting, then, that the 
 difference in the two Anchorage estimates is nearly 35%. 
 If two sources differ so widely on a construction site where 
 extensive experience exists, one must wonder how 
 accurately construction costs away from that area can be 
 estimated. 
 
 ESTIMATING CONSTRUCTION COSTS IN 
 ALASKA 
 
 In an attempt to estimate capital costs for Alaskan 
 projects in a consistent manner, a map showing escalation 
 factors for each part of the State was developed (fig. 
 A-l — in pocket). The escalation factors are based on the 
 Corps of Engineers booklet, "Cost Engineering" (21) with 
 subjective modifications based upon the collection of cost 
 data and estimates by the author over the last 12 yr. 
 
 The escalation factors assume that a road system will 
 be built to exploit a major property and that the company 
 will not be required to pay for that road. Therefore, the 
 factors will not apply until some form of ground 
 transportation exists. In general, the escalation factors 
 are lowest along the coast and increase in mountainous 
 areas and in higher latitudes. The area north of the 
 Brooks Range is the most expensive area in which to 
 construct any facility. 
 
 The factors shown on figure A-l represent multiples 
 of a cost to construct a similar facility in Washington, DC 
 (or Seattle, which is 1.01). In a sense, facilities are 
 costed-out in Seattle and "moved" to the location in 
 Alaska using the appropriate escalation factor. 
 
 The factors given on figure A-l assume that facilities 
 will be permitted in the area. The factors include lands 
 that are designated wilderness, wildlife preserves, and 
 national parks. Because of political factors, however, 
 these areas are not likely to be exploited. The factors do 
 not consider the politics of development, only the physical 
 aspects and their impact on costs. 
 
 For the study discussed in the main body of the report, 
 non-specific sites were chosen in three parts of the State, 
 or regions. The region and the escalation factors follow: 
 southeast, 2.00; south-central, 2.60; north-central, 3.25. 
 
 Although there may be a number of escalation factors 
 within each area of the State, for this report one factor has 
 been chosen to represent each region. The Southeast 
 region is defined as that part of Alaska east of 141° 
 longitude (fig. A-l). The South-Central region is defined 
 here as that part of Alaska south of 64° north latitude. The 
 North-Central region is defined as that part of Alaska 
 north of 64° and south of 68° north latitude. 
 
 To obtain the total capital costs for the facilities in 
 each part of the State, the cost for underground and 
 open-pit mines developed by O'Hara (19) was computed, 
 updated from 1978 to 1984 using the Bureau's cost- 
 estimating system (CES) program (7), and multiplied by 
 the appropriate escalation factor. The various capital cost 
 components in the CES program were adjusted until that 
 total matched the total estimate using O'Hara's equations 
 times the escalation factor. Two components in the CES 
 program were not used: electrical and town and campsite 
 costs. CES assumed power would be provided by a power 
 company, but in Alaska, it would be diesel generated. 
 Electrical capital costs were based upon Wohlford (23) 
 updated to 1984. CES provided no estimates for townsite 
 costs or for the total installed cost for large camps. The 
 author estimated these costs from published data (2, 19, 
 22) and discussions with mining people during the past 12 
 
 yr. 
 
 Figures A-2 and A-3 show curves and equations for 
 calculating the 1984 cost to design and completely install 
 either a town or a campsite. 2 The curves reflect the data in 
 references 2, 19 and 22 adjusted to 1984. 
 
 Calculations for the camps turn out to be approx- 
 imately double the direct cost of living space plus 
 community center space estimated by CES (7). In addition 
 to the basic units, a campsite requires roads, walkways, 
 utilities, a sewer system, landscaping, and outdoor 
 recreation facilities. As the campsite becomes larger, the 
 community center grows. As the campsite grows from 20 
 to 200 people, the space per person increases as more 
 amenities are added for the workers' convenience. Beyond 
 200 employees, the space per employee diminishes 
 because all of the amenities have been provided and the 
 increase in the unit space per person is less than one unit 
 per person. A 200-plus-employee camp includes space for 
 kitchen and dining rooms, lounge and recreation rooms, 
 laundry, infirmary, gymnasium, hobby rooms, commis- 
 sary, library, post office, maintenance, and storage. 
 
 italic numbers in parentheses refer to items in the list of references 
 preceding this appendix. 
 
 ^he curves and equations shown on each figure estimate housing facility 
 costs (y-axis) given employees (x-axis). 
 
< 
 
 o 
 o 
 
 uu 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 on 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Y= $ I30,900( 
 500 sX <2,50 
 
 x) 0.92 
 
 employees 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 IU J 
 
 
 
 
 
 
 
 
 
 
 
 100 
 
 ipoo 
 
 EMPLOYEES 
 
 10,000 
 
 FIGURE A-2. — Townsite costs versus total employees, 1984 dollars. 
 
 II II II I II I I I I I I III I iMlirfimin ■«— mm— ■■■■« 
 
 I WBUMAM* JFMl V r a mM * Pft MBn ^UiJJlAMJIIJU n UMMmilUUM^ 
 
uu — 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 U ~ 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 = *90,I00(X) - 805 
 00<X 5|,000 employees 
 
 
 
 
 
 
 
 
 
 
 
 
 T 
 2 
 
 
 
 
 
 
 
 
 
 
 
 
 Y = *2,700(X)'- 45 
 
 20 *X *200 employees 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 U.I i 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 10 
 
 100 
 
 1,000 
 
 10,000 
 
 EMPLOYEES 
 FIGURE A-3. — Campsite costs versus total employees, 1984 dollars. 
 
APPENDIX B.— OPERATING COSTS 
 
 ESTIMATING SALARY COSTS IN ALASKA 
 
 Salaries for long-term hardrock mining in Alaska 
 were not available. The average hourly wage rate for 
 metal, nonmetal, and sand and gravel employees in March 
 1984 was $19.64 (1). This figure included sick, holiday, 
 and vacation pay, shift differential, and overtime pay. As 
 March was not a high-overtime month in Alaska, the 
 figure was considered to be representative for long-term 
 hardrock mining. 
 
 The national average mine and plant wage for 
 January 1975, the base year for the Bureau of Mines' 
 costing program, was $5.61. Based on typical manning 
 tables and wage rates for that time, an average salary 
 could have been $5.85/h for underground mining, $5.60/h 
 for surface mining, and $5.45/h for mine plant and 
 concentrating. Adjusting these January 1975 estimated 
 wage rates to January 1984 was done by dividing the 
 January 1984 average of $11.56/h by $5.61. The quotient 
 of 2.06 was multiplied times the various rates times 1.35 
 for benefits to obtain a 1984 estimated figure of $16.27/h 
 for underground mining, $15.57/h for surface mining, and 
 $15.16/h for mine plant and beneficiation. 
 
 Estimating salaries for Alaska is difficult because the 
 State is so large and economic conditions vary from region 
 to region. For State employees, Alaska has a regionalized 
 pay schedule in which salaries for like work are adjusted 
 to reflect the varying cost to live in each region of Alaska. 
 The following salary relationships were derived from the 
 General Government/Noncollective Bargaining Schedule: 
 
 Factor 
 
 Area 
 
 1.000 Contiguous States and 
 
 Canada. 
 1.225 Ketchikan, Juneau, 
 
 Anchorage. 
 1.272 Petersburg, Wrangell, 
 
 Sitka, Palmer. 
 1.313 Haines, Skagway, Seward, 
 
 Kenai, Kodiak. 
 
 1.412 Cordova, Fairbanks. 
 
 1.463 Valdez. 
 
 1.565 Aleutian Islands, 
 
 Dillingham. 
 1.616 Bethel, Nenana, Hooper 
 
 Bay, Nome. 
 1.677 Galena, Tanana, McGrath, 
 
 Fort Yukon, Barrow. 
 
 Applying the factor of 1.225 to the estimated salaries 
 derived above gave $19.93/h for underground mining, 
 $19.07/h for surface mining, and $18.57/h for mine plant 
 
 and beneficiation employees near Ketchikan, Juneau, or 
 Anchorage. These numbers compared favorably with the 
 average mining wage of $19.64/h in March 1984. 
 
 The following escalation factors were applied to the 
 base salaries of $16.27/h for underground miners, $15.57/ 
 h for surface miners, and $15.16/h for mine plant and 
 beneficiation: 
 
 Region 
 
 Camp 
 
 Town 
 
 Southeast 
 
 South-Central 
 
 1.225 
 1.225 
 
 1.225 
 1.412 
 
 North-Central 
 
 1.412 
 
 1.677 
 
 
 
 
 The factors for camps and townsites were not the same in 
 the South-Central and North-Central locations because 
 the assumption was made that personnel for a South- 
 Central mine with a camp were headquartered in 
 Anchorage and personnel for a North-Central mine with a 
 camp were located in Fairbanks. The labor cost for a 
 townsite away from these two metropolitan areas was 
 higher to compensate people for the higher cost of living in 
 a remote site. 
 
 Based upon the factors listed above, total annual costs 
 per employee at an underground operation with a 
 campsite or townsite in each region were as follows: 
 
 Region 
 
 Camp Town 
 
 Mine Mill Mine Mill 
 
 Southeast 
 
 South-Central 
 North-Central 
 
 $54,900 $51,200 $41,500 $38,600 
 54,900 51,200 47,800 44,500 
 63,300 59,000 56,700 52,900 
 
 The above figures represent total company costs per 
 employee; gross individual wages would be about 11% 
 less. Camp labor costs are for 84 h/wk, of which 44 h are 
 overtime; town labor costs are for 40 h/wk. 
 
 The annual costs for employees at an open-pit 
 operation with a campsite or townsite in each region were 
 as follows: 
 
 Region 
 
 Camp Town 
 
 Mine Mill Mine Mill 
 
 Southeast 
 
 South-Central 
 North-Central 
 
 $52,600 $51,200 $39,700 $38,600 
 52,600 51,200 45,700 44,500 
 60,600 59,000 54,300 52,900 
 
 As with the underground examples, gross individual 
 wages would be about 11% less than figures cited here. 
 
 mmmHfmKw n mimvmitmmMN ! 
 
10 
 
 ESTIMATING OTHER OPERATING COSTS IN The factors for materials and supplies used in mining, 
 
 ALASKA concentrating, and equipment operations were derived by 
 
 multiplying the Alaska construction factor times 20% and 
 
 In constructing the models for this study, the adding 1. The factors accounted for the extra cost of 
 
 following factors were used to escalate the cost of moving supplies to Alaska and the extra cost of operating 
 
 materials and supplies and equipment operation for each an( i maintaining equipment in a remote northern loca- 
 
 region: tion. 
 
 — — : = The operating costs for the town and campsites were 
 
 calculated separately, and the final escalated number was 
 entered into CES. In addition to camp food and town 
 maintenance costs, the cost of daily or thrice weekly air 
 support was added to the town or camp operating costs. 
 
 Southeast 
 
 1.40 
 
 South-Central 
 
 1.52 
 
 North-Central 
 
 1 65 
 
 
11 
 
 APPENDIX C— ESTIMATING THE WORK FORCE SIZE 
 
 For making generalized estimates of the work force in 
 a mining venture, one must know the type of mining 
 proposed. In actuality, the size of the workforce depends 
 on the size, depth, and configuration of the ore body, the 
 type of beneficiation required, and the company's prefer- 
 ence in setting staffing requirements. Compounding the 
 difficulty in making the estimates is finding base line 
 data. Once base line data are found, one needs enough 
 discrete examples to generate a curve for each type of 
 mining. The last requirement is exceptionally difficult as 
 many underground mines utilize several types of mining 
 methods simultaneously. 
 
 For this report work force data from the 1969, 1970, 
 and 1971 Canadian Mining Manuals were used (16-18). 
 These were the only years in which complete data for the 
 mine, mill, plant, and office staffs were compiled. 
 Employment statistics were used only once for each 
 company in the 3-yr period unless the total production or 
 total employment varied from the previous year's data by 
 more than 25%; in those cases, the company's statistics 
 were used for the second or third year, in addition to the 
 first year. Production-employee relationships that seemed 
 anomolous were not included. Generally, the mines 
 having the highest and lowest number of employees per 
 unit of production were excluded on the assumption that a 
 mistake was made in reporting or because conditions in 
 the highly variant mine were unique to that mine. The 
 results are given in tables C-l through C-7; graphs of the 
 data are given in figures C-l through C-7. 
 
 Total production-employee relationships are shown 
 for the following types of mining: blasthole, cut and fill, 
 long hole, open pit, open stope, room and pillar, and 
 shrinkage stope. Each graph shows the number of mines 
 in the sample, a first-order polynomial equation (least 
 squares), a correlation coefficient of the curve against the 
 data, and a curve plot one standard deviation unit above 
 and below the data-generated curve. 
 
 Although other types of equations fit some of the data 
 better, a simple least-squares curve was used here to show 
 the increase in employees with increased production. 
 Correlation coefficients ranged from 0.873 for shrinkage- 
 
 stope mining to 0.989 for room-and-pillar mining. The 
 median correlation coefficient was 0.927. 
 
 A pair of lines located one standard deviation unit 
 above and below each least-squares curve was also 
 plotted. Statistically, 68.3% of the mines employing the 
 type of mining graphed should have work forces within 
 ±1 standard deviation unit of the calculated curve. 
 Employment at 95% of the mines should fall within 1.96 
 standard deviation units of the calculated least squares 
 curve. 
 
 The estimates generated from the equations include 
 all the personnel necessary to operate the facility 3 shifts 
 per day, 7 d/wk, including mining, concentrating, surface 
 plant, and office. The assumption was made that the mine 
 complex was remotely located and hence required a 
 surface plant facility to maintain the mine, mill, and 
 living area, be it a townsite or a campsite. If the operation 
 was drawing personnel from an existing town or city in 
 close proximity, possibly one-fourth to one-third fewer 
 people would be required in the surface plant and office 
 personnel. 
 
 Utilizing the Bureau of Mines' CES program requires 
 that the total workforce be split into mining and milling 
 segments. Making the split is difficult for many of the 
 same reasons specified above in estimating the workforce. 
 In addition to the variation in personnel requirements 
 that comes with the unique characteristics of each ore 
 body, each type of ore recovery technique requires a 
 different quantity of workers. Among underground min- 
 ing techniques, room-and-pillar mining and open-stope 
 mining tend to employ the least amount of labor and 
 shrinkage-stope mining the most. Owing to a lack of data, 
 no curve was constructed for square-set mining, which is 
 probably the most labor intensive mining technique. 
 
 Table C-8 shows one split between mine and mill 
 personnel for seven types of mining. The splits were made 
 on the basis of the curves shown in figures C-l through 
 C-7 minus the mill personnel as calculated from O'Hara 
 (19). Forty percent was added to direct mill personnel 
 estimates for plant and office personnel at underground 
 mines; 10% was added at open-pit mines. 
 
12 
 
 TABLE C-1 — Cut-and-fill mining data 
 
 Year 
 
 Company 
 
 Mineral 
 concentrates 
 
 Mine 
 
 Mill 
 
 Surface plant 
 
 Other Tonnage. 
 
 types of ore + Salaried Hourly Salaried Hourly Salaried Hourly 
 mining waste stat f workers staff workers staff workers 
 
 Office 
 staff 
 
 Total 
 employees 
 
 1971 Bralorne Can-Fer Au 
 
 1971 Eldorado Nuclear U 
 
 1971 Hallnor Mines Au, Ag 
 
 1971 Madsen Red Lake Cu 
 
 1971 Opemiska Copper Mines Cu, Au, Ag .. . 
 
 1971 Sullivan Mining Cu, Zn, Pb 
 
 1970 Aunor Gold Mines Au 
 
 1 970 Madsen Red Lake Au 
 
 1970 Opemiska Copper Mines Cu, Au, Ag . . . 
 
 1970 Orchan Mines Zn, Cu 
 
 1969 Bralorne Can-Fer Au 
 
 1969 Giant Yellow Knife Mines . . Au 
 
 1969 Nigadoo River Mines Pb, Zn, Cu, Ag 
 
 1969 Quemont Mines Cu, Au, Ag, 
 
 Zn, Fe 
 
 280 
 
 1.350 
 
 349 
 
 551 
 
 OS 3,966 
 
 1,100 
 
 750 
 
 721 
 2,300 
 1.100 
 430 
 1,250 
 1,100 
 
 SH, SL 
 LH, OP 
 
 SH 
 OS, 
 
 SH 
 
 SL 1,252 
 
 44 
 12 
 10 
 32 
 25 
 11 
 11 
 39 
 17 
 11 
 38 
 19 
 29 
 
 69 
 
 128 
 
 97 
 
 87 
 
 372 
 
 190 
 
 215 
 
 141 
 
 348 
 
 86 
 
 89 
 
 206 
 
 157 
 
 205 
 
 1 
 
 20 
 2 
 4 
 
 10 
 9 
 3 
 5 
 9 
 
 12 
 3 
 
 13 
 9 
 
 21 
 
 10 
 36 
 21 
 23 
 38 
 37 
 28 
 32 
 39 
 47 
 12 
 60 
 32 
 31 
 
 4 
 
 17 
 
 3 
 
 10 
 
 12 
 
 5 
 
 4 
 
 6 
 
 8 
 
 9 
 
 5 
 
 7 
 
 5 
 
 13 
 
 17 
 87 
 18 
 37 
 83 
 58 
 64 
 50 
 70 
 69 
 31 
 38 
 54 
 62 
 
 13 
 84 
 8 
 17 
 80 
 30 
 27 
 30 
 59 
 18 
 12 
 30 
 24 
 33 
 
 122 
 416 
 161 
 188 
 627 
 354 
 352 
 275 
 572 
 258 
 163 
 392 
 300 
 394 
 
 'Certain cut-and-fill mines also reported other types of mining as follows: LH — long hole; OP — open pit; OS — open stope; SH — shrinkage stope; SL- 
 caving. 
 
 -sublevel 
 
 700 
 
 600- 
 
 500- 
 
 UJ 
 UJ 
 
 3 400 
 
 2 
 
 UJ 
 
 300- 
 
 O 
 
 200- 
 
 I00 
 
 i standard deviation unit 
 
 Y = I66.2+0.I3900X 
 Correlation coefficient = 0.927 
 Standard error of estimate 1 ±58 
 
 ± 
 
 ipoo 
 
 2000 3000 
 DAILY TONNAGE 
 
 4000 
 
 5000 
 
 FIGURE C-1. — Total employees versus daily tonnage in cut-and-fill mining. 
 
TABLE C-2.— Blasthole mining data 
 
 13 
 
 Year 
 
 Company 
 
 Mineral 
 concentrates 
 
 Other Tonnage, 
 types of ore + 
 ■ mining 1 waste 
 
 Mine 
 
 Mill 
 
 Surface plant 
 
 Office 
 staff 
 
 Total 
 employees 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 11 
 
 157 
 
 13 
 
 39 
 
 6 
 
 105 
 
 41 
 
 372 
 
 31 
 
 198 
 
 13 
 
 55 
 
 16 
 
 112 
 
 60 
 
 485 
 
 5 
 
 50 
 
 5 
 
 12 
 
 3 
 
 21 
 
 9 
 
 105 
 
 6 
 
 66 
 
 4 
 
 21 
 
 4 
 
 32 
 
 17 
 
 150 
 
 6 
 
 56 
 
 10 
 
 54 
 
 8 
 
 57 
 
 32 
 
 223 
 
 15 
 
 135 
 
 7 
 
 41 
 
 4 
 
 65 
 
 27 
 
 294 
 
 51 
 
 214 
 
 14 
 
 44 
 
 11 
 
 42 
 
 68 
 
 544 
 
 44 
 
 210 
 
 18 
 
 80 
 
 23 
 
 92 
 
 72 
 
 539 
 
 24 
 
 172 
 
 11 
 
 45 
 
 9 
 
 69 
 
 30 
 
 360 
 
 42 
 
 234 
 
 13 
 
 70 
 
 3 
 
 36 
 
 46 
 
 444 
 
 16 
 
 128 
 
 11 
 
 42 
 
 7 
 
 53 
 
 19 
 
 276 
 
 1971 
 1971 
 1971 
 1971 
 1970 
 1970 
 1970 
 1970 
 1970 
 1970 
 1969 
 
 1969 
 
 Cu 
 Ag 
 
 Heath Steel Mines Pb, Zn, 
 
 Mattigame Lake Mines ... Zn, Cu, 
 
 Reeves, McDonald Pb, Zn 
 
 Tribag Mining Co Cu 
 
 Heath Steel Mines Pb, Zn, Cu 
 
 Kam Kotia Mines Cu, Zn 
 
 OS 3,200 
 
 SL 4,100 
 
 775 
 
 500 
 
 OS 2,100 
 
 2,420 
 
 4,028 
 
 CF 4,450 
 
 Au, Ag CF, SH .. 1,706 
 
 Ni, Cu SL 4,150 
 
 Zn, Cu, Pb, CF, SH .. 1,304 
 Au, Ag 
 
 Sherritt Gordon Mines Ni, Cu SL 4,150 
 
 Mattigame Lake Mines 
 Noranda Mines, Geco Div. 
 Pamour Porcupine Mines 
 Sherritt Gordon Mines . . . 
 Manitou Barvue Mines . . 
 
 Zn, Cu 
 
 Cu, Zn, Au, Pb 
 
 60 
 
 205 
 
 25 
 
 69 
 
 22 
 
 144 
 
 30 
 
 555 
 
 'Certain mines using blasthole mining also reported other types of mining as follows: CF- 
 caving. 
 
 -cut and fill; OS — open stope; SH — shrinkage stope; SL — sublevel 
 
 700 
 600 
 
 - 
 
 
 
 
 ^ 
 
 •*'" ^ 
 
 ^ _^^ 
 
 500 
 
 
 
 Y= 95.8+ 0.09469 X 
 Correlation coefficient = 0.924 
 
 
 (O 
 
 
 
 Standard error 
 
 of estimate = ±55 
 
 ^^ ^-^» ^ 
 
 UJ 
 UJ 
 
 O 400 
 
 
 
 
 
 
 — 
 
 
 
 ^" 
 
 -' ^^ ^ 
 
 _j 
 a. 
 
 
 
 
 ^ 
 
 ^^* -^^ 
 
 
 
 
 •" 
 
 y^ s* 
 
 2 
 
 
 
 
 • ^ ^s 
 
 
 UJ 
 
 
 
 
 -" ^-"^ 
 
 ^ 
 
 ^ 300 
 
 — 
 
 
 • ^ 
 
 
 ^ 
 
 P 
 
 
 
 
 
 
 200 
 
 — 
 
 ^ 
 
 ^ ^^ 
 
 -^-_ 
 
 
 
 
 
 ^^ s* 
 
 
 - 1 standard deviation unit 
 
 
 
 
 **^ ^ 
 
 
 
 
 
 
 ^ 
 
 
 
 !00 
 
 
 ^ 
 
 • 
 
 I 
 
 I i 
 
 1,000 
 
 2p00 3,000 
 
 DAILY TONNAGE 
 
 4000 
 
 5000 
 
 FIGURE C-2. — Total employees versus daily tonnage in blasthole mining. 
 
 maasieauam* 
 
 tarn 
 
14 
 
 TABLE C-3. — Open-stope mining data 
 
 Year 
 
 Company 
 
 Mineral 
 concentrates 
 
 Other 
 types of 
 mining 1 
 
 Tonnage, _ 
 
 ore + Salaried 
 waste sta f, 
 
 Mine 
 
 Mill 
 
 Surface plant 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Office 
 staff 
 
 Total 
 employees 
 
 1971 Algoma Steel Corp Fe 4,150 36 214 12 46 27 153 89 577 
 
 1971 East Malartic Mines Au BH, SL . . . 1,650 14 176 9 23 8 49 21 300 
 
 1971 KRC Operators MoS BH, SH . . 330 7 28 4 12 1 22 5 79 
 
 1971 Teck Corp Ag, Pb, Zn 130 4 25 2 11 1 5 4 52 
 
 1971 Venus Mines Au, Ag, Pb 325 7 28 5 19 1 2 5 67 
 
 Zn, Cd 
 
 1971 Wilroy Mines Cu, Zn, Pb, Ag 1,520 8 105 7 26 4 43 29 222 
 
 1970 Lake Shore Mines Au, Ag BH, SH .. 1,365 8 105 9 18 10 25 10 185 
 
 1970 Leitch Mines Ag, Pb, Zn 140 4 35 2 11 3 5 7 67 
 
 1970 Zenmac Metal Mines Zn, Cu, Cd 105 2 15 1 8 2 4 6 38 
 
 1969 MacLeod-Mosher Au, Ag BH, SL . . . 1,284 10 116 8 21 2 33 9 199 
 
 'Certain open-stope mines also reported other types of mining as follows: BH — blasthole; SH — shrinkage stope; SL — sublevel caving. 
 
 70Q 
 
 600 
 
 500 
 
 (/> 
 UJ 
 Ul 
 
 Q 4001- 
 
 u 
 
 5c 300 
 
 200- 
 
 100 
 
 Y= 54.4 + 0.09665 X 
 Correlation coefficient = 0.957 
 Standard error of estimate =±34 
 
 standard deviation unit 
 
 ipoo 
 
 2000 3000 
 
 DAILY TONNAGE 
 
 4000 
 
 5000 
 
 FIGURE C-3. — Total employees versus daily tonnage in open-stope mining. 
 
15 
 
 TABLE C-4. — Long-hole mining data 
 
 Year 
 
 Company 
 
 Mineral 
 concentrates 
 
 Other 
 types of 
 mining 1 
 
 Tonnage, 
 ore + 
 waste 
 
 Mine 
 
 Mill 
 
 Surface plant 
 
 Office 
 staff 
 
 Total 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 employees 
 
 3 
 
 22 
 
 10 
 
 26 
 
 3 
 
 24 
 
 12 
 
 100 
 
 12 
 
 121 
 
 7 
 
 38 
 
 4 
 
 84 
 
 23 
 
 289 
 
 46 
 
 325 
 
 37 
 
 203 
 
 51 
 
 193 
 
 77 
 
 2 932 
 
 6 
 
 62 
 
 3 
 
 25 
 
 2 
 
 18 
 
 11 
 
 127 
 
 13 
 
 72 
 
 5 
 
 19 
 
 7 
 
 26 
 
 18 
 
 160 
 
 14 
 
 93 
 
 8 
 
 29 
 
 5 
 
 3 50 
 
 15 
 
 214 
 
 7 
 
 53 
 
 4 
 
 25 
 
 1 
 
 16 
 
 11 
 
 117 
 
 30 
 
 199 
 
 6 
 
 29 
 
 5 
 
 24 
 
 35 
 
 328 
 
 12 
 
 98 
 
 5 
 
 21 
 
 3 
 
 21 
 
 16 
 
 176 
 
 18 
 
 110 
 
 11 
 
 42 
 
 11 
 
 42 
 
 20 
 
 254 
 
 1971 Consolidated Canadian 
 
 Faraday 
 
 1971 Kam Kotia Mines 
 
 1970 Brunswick Mine & Smelting 
 
 1970 Camflo Mines 
 
 1970 Consolidated Canadian 
 
 Faraday 
 
 1970 Consolidated Rambler 
 
 1970 Dresser Minerals 
 
 1970 East Malartic Mines 
 
 1970 Giant Mascot Mines 
 
 1970 Manitou Barvue Mines 
 
 1970 St. Lawrence Columbium 
 and Metals Corp. 
 
 1 969 Barnat Mines 
 
 1969 Dresser Minerals 
 
 Ni, Cu, PGM . CF, SL 
 
 320 
 
 Cu, Zn, Au, Ag 2,395 
 
 Pb, Zn, Cu . . . OS 5,200 
 
 Au SH 1,146 
 
 Ni, Cu, PGM . CF 650 
 
 Cu, Au, Ag . . . 
 Ba, Ag, Pb, Cu 
 Au 
 
 SL 1 ,200 
 
 CF 860 
 
 SH 1,653 
 
 Ni, Cu SH 1,600 
 
 Ag, Cu, Zn, 
 
 Au, 
 
 Asbestos 
 Pyrochlorite 
 
 SH 1 ,080 
 
 1,475 
 
 1969 Wilroy Mines 
 
 Au, Ag CF 625 12 
 
 Ag, Pb, Cu, CF 1,120 7 
 
 Zn, Ba 
 Cu, Zn, Pb, 645 9 
 
 Au, Ag 
 
 70 
 
 80 
 
 48 
 
 115 
 
 3 
 10 
 
 31 
 
 3 15 
 23 
 
 26 
 
 21 
 
 13 
 22 
 
 56 
 
 17 
 
 7 
 14 
 
 28 
 
 156 
 
 128 
 118 
 
 251 
 
 1 Certain mines using long-hole mining also reported other types of mining as follows: CF — cut and fill; OS — open stope; SH — shrinkage stope; SL — sublevel 
 caving, 
 included in calculations, not plotted in figure C-4. 
 3 Estimate based upon the average percent the work group comprises of the total for all of the companies. 
 
 ruu 
 
 
 
 
 7 S " 
 
 
 
 
 
 / s s 
 
 600 
 
 - 
 
 
 
 //^ 
 
 500 
 
 V) 
 
 
 
 4 
 
 / 
 
 ' // 
 
 
 / 
 
 
 UJ 
 Ul 
 
 >- 
 
 
 
 
 
 q 400 
 
 
 / y 
 
 
 / 
 
 a. 
 
 
 / / 
 
 
 / 
 
 2 
 
 
 / / 
 
 / 
 
 
 Ul 
 
 
 /-, / 
 
 / 
 
 
 < 300 
 o 
 
 
 
 
 
 K 
 
 
 ' / .// 
 
 
 Y= 3.7+0. I6359X 
 
 200 
 
 
 
 
 Correlation coefficient = 0.93I 
 Standard error of estimate =±75 
 
 I00 
 
 
 
 
 " I 
 
 ipoo 
 
 2pOO 3000 
 
 DAILY TONNAGE 
 
 4.000 
 
 5.000 
 
 FIGURE C-4. — Total employees versus daily tonnage in long-hole mining. 
 
16 
 
 TABLE C-5. — Shrinkage-stope mining data 
 
 Year 
 
 Company 
 
 Mineral 
 concentrates 
 
 Other 
 types of 
 mining 1 
 
 Tonnage, _ 
 
 ore + Salaried 
 waste s t a tf 
 
 Mine 
 
 Surface plant 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Office 
 staff 
 
 Total 
 employees 
 
 1971 
 1971 
 1970 
 1970 
 1970 
 1970 
 1970 
 1970 
 1970 
 1969 
 1969 
 1969 
 1969 
 
 OS 
 
 BH 
 
 CF 
 
 Echo Bay Mines Ag, Au 
 
 Sisco Mines Ag, Co 
 
 Anglo-Rouyn Mines Cu ... 
 
 Canadian Jamieson Mines . Cu, Zn 
 
 Deer Horn Mines Ag, Co 
 
 Dickenson Mines Au, Ag 
 
 Preissac Molybdenite Mo, Bi . LH, OS 
 
 Renabie Mines Au BH ... 
 
 Sisco Mines Ag, Co 
 
 Agnico Mines Au, Co, Cu 
 
 Anglo Rouyn Cu 
 
 Echo Bay Mines Ag, Cu 
 
 Wasamac Mines . Au, Ag 
 
 200 
 182 
 
 1,001 
 
 590 
 
 55 
 
 537 
 
 1,150 
 508 
 170 
 300 
 
 1,150 
 150 
 
 1,130 
 
 8 
 
 20 
 
 9 
 
 5 
 
 18 
 
 17 
 
 13 
 
 8 
 
 6 
 
 18 
 
 6 
 
 19 
 
 34 
 51 
 
 135 
 65 
 18 
 
 133 
 
 165 
 89 
 60 
 35 
 
 103 
 36 
 
 127 
 
 15 
 11 
 22 
 32 
 12 
 29 
 36 
 18 
 11 
 16 
 18 
 14 
 28 
 
 31 
 6 
 45 
 20 
 1 
 39 
 39 
 20 
 58 
 18 
 44 
 36 
 42 
 
 17 
 8 
 
 20 
 9 
 4 
 
 18 
 2 22 
 
 12 
 9 
 
 10 
 
 28 
 
 17 
 2 19 
 
 'Certain shrinkage-stope mines also reported other types of mining as follows: BH — blasthole; CF — cut and fill; LH — long hole; OS — open stope. 
 2 Estimate based upon the average percent the work group comprises of the total for all of the companies. 
 
 114 
 
 87 
 
 252 
 
 146 
 
 44 
 
 244 
 
 286 
 
 157 
 
 157 
 
 89 
 
 219 
 
 115 
 
 246 
 
 700 
 
 600 - 
 
 500 
 </) 
 
 UJ 
 Ul 
 
 §400 
 
 Q. 
 
 S 
 
 u 
 
 ^ 300 
 
 200 - 
 
 1 00 
 
 - 
 
 
 
 Y= 79.2+0. I55I6X S 
 Correlation coefficient = 0.873 / S 
 
 
 
 
 
 
 
 Standard error of estimate = ±35 / S / 
 
 
 
 
 
 ~* 
 
 
 
 
 - 
 
 * 
 
 / 
 
 / s — —I standard deviation unit 
 
 
 •^ 
 
 
 / 
 
 — 
 
 > 
 
 *- 
 
 
 • 
 
 
 
 I i 
 
 IPOO 2P00 
 
 DAILY TONNAGE 
 
 3OO0 
 
 FIGURE C-5. — Total employees versus daily tonnage in shrinkage-stope mining. 
 
17 
 
 TABLE C-6. — Room-and-pillar mining data 
 
 Year 
 
 Company 
 
 Mineral 
 concentrates 
 
 Tonnage, _ 
 
 ce + Salaried 
 waste sta ff 
 
 Mine 
 
 Surface plant 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Salaried 
 staff 
 
 Hourly 
 workers 
 
 Office 
 staff 
 
 Total 
 employees 
 
 1971 Canadian Exploration W0 3 1,000 12 53 15 19 5 39 24 167 
 
 1971 Tantalum Mining Ta 2 5 600 3 20 4 10 5 22 13 77 
 
 1970 Canadian Exploration Pb, Zn 1,633 16 91 10 21 5 62 30 235 
 
 1970 Denison Mines U, Y 4,700 68 385 25 107 19 153 103 1 860 
 
 1970 Gaspe Copper Mines Cu, Mo, Au, Ag .. 3,550 34 172 11 73 76 292 99 1 757 
 
 1970 Tantalum Mining Ta 2 5 427 4 25 3 9 5 27 14 87 
 
 'Included in calculations, not plotted in figure C-6. 
 
 700 
 
 600 
 
 500 
 
 CD 
 
 id 
 UJ 
 
 O400 
 
 Q. 
 
 UJ 
 
 300 
 
 200 
 
 1 00 
 
 I standard deviation unit 
 
 / / / 
 
 / / ' 
 
 / / ' 
 / / / 
 
 ' ' // 
 
 / / /# Y= -29.I+O.I95083X 
 
 / / s Correlation coeff icient = 0.989 
 
 Standard error of estimate = ±47 
 
 IpOO 2000 3000 4000 
 
 DAILY TONNAGE 
 
 FIGURE C-6. — Total employees versus daily tonnage in room-and-pillar mining. 
 
18 
 
 TABLE C-7 — Open-pit mining data 
 
 Year 
 
 Company 
 
 Mineral 
 concentrates 
 
 Mine' 
 
 Mill 
 
 Surface plant 
 
 Tonnage, 
 
 Salaried Hourly Salaried Hourly Salaried Hourly 
 
 waste 
 
 staff workers staff workers staff workers 
 
 Office 
 staff 
 
 Total 
 employees 
 
 1971 
 1971 
 1971 
 
 1971 
 1971 
 1971 
 1971 
 1971 
 1971 
 1971 
 1970 
 1970 
 1970 
 1970 
 1970 
 1970 
 
 1970 
 1970 
 1970 
 1970 
 1970 
 1969 
 1969 
 1969 
 1969 
 
 Advocate Mines 
 
 Brenda Mines 
 
 Cassiar Asbestos Mines — Clinton 
 
 Creek Div. 
 
 Endako Mines 
 
 Granisle Copper 
 
 Jones & Laughlin Mining 
 
 Lake Asbestos of Quebec 
 
 National Steel Corp. of Canada . . 
 
 New Imperial Mines 
 
 Wesfrob Mines 
 
 Bethlehem Copper Corp 
 
 British Columbia Molybdenum 
 
 Endako Mines 
 
 Granby Mining 
 
 Granisle Copper 
 
 Iron Ore Co. of Canada — Scheffer 
 
 Div. 
 
 Jones & Laughlin Mining 
 
 National Steel Corp. of Canada . . 
 
 New Imperial Mines 
 
 Pickends, Mather & Co 
 
 Steep Rock Iron Mines 
 
 Bethlehem Copper Corp 
 
 Granby Mining 
 
 Hilton Mines 
 
 Indusmin Nepheline Syenite 
 
 Asbestos 41,000 
 
 Cu. Mo 48,000 
 
 Asbestos 46,000 
 
 Mo 50,000 
 
 Cu 10,400 
 
 Fe 22,000 
 
 Asbestos 45,000 
 
 Fe 10.500 
 
 Cu 12,500 
 
 Fe, Cu 18,000 
 
 Cu 45,000 
 
 Mo 22,500 
 
 Mo 36,000 
 
 Cu 19,100 
 
 Cu 16,100 
 
 Fe 90,000 
 
 Fe 20,000 
 
 Fe 10,800 
 
 Cu 12,500 
 
 Fe 21,000 
 
 Fe 33,300 
 
 Cu 33,500 
 
 Cu 17,200 
 
 Fe 19,500 
 
 Syenite 1 ,400 
 
 119 
 
 10 
 
 167 
 
 21 
 
 133 
 
 53 
 
 503 
 
 83 
 
 18 
 
 73 
 
 17 
 
 104 
 
 49 
 
 344 
 
 54 
 
 17 
 
 81 
 
 26 
 
 127 
 
 79 
 
 384 
 
 102 
 
 27 
 
 89 
 
 32 
 
 150 
 
 172 
 
 572 
 
 43 
 
 10 
 
 40 
 
 6 
 
 38 
 
 20 
 
 157 
 
 86 
 
 20 
 
 132 
 
 18 
 
 112 
 
 42 
 
 410 
 
 200 
 
 11 
 
 2 88 
 
 19 
 
 155 
 
 27 
 
 500 
 
 76 
 
 16 
 
 74 
 
 14 
 
 49 
 
 21 
 
 250 
 
 40 
 
 9 
 
 30 
 
 8 
 
 35 
 
 20 
 
 142 
 
 35 
 
 13 
 
 52 
 
 13 
 
 70 
 
 23 
 
 206 
 
 129 
 
 19 
 
 105 
 
 17 
 
 169 
 
 41 
 
 480 
 
 67 
 
 19 
 
 44 
 
 26 
 
 70 
 
 36 
 
 262 
 
 112 
 
 27 
 
 87 
 
 30 
 
 155 
 
 70 
 
 481 
 
 66 
 
 6 
 
 38 
 
 5 
 
 41 
 
 18 
 
 174 
 
 40 
 
 10 
 
 42 
 
 5 
 
 39 
 
 18 
 
 154 
 
 280 
 
 2 43 
 
 2 200 
 
 70 
 
 290 
 
 224 
 
 1,107 
 
 84 
 
 14 
 
 105 
 
 18 
 
 43 
 
 50 
 
 314 
 
 68 
 
 16 
 
 84 
 
 21 
 
 108 
 
 21 
 
 318 
 
 40 
 
 9 
 
 30 
 
 8 
 
 83 
 
 20 
 
 190 
 
 108 
 
 16 
 
 71 
 
 19 
 
 128 
 
 30 
 
 372 
 
 142 
 
 2 18 
 
 2 79 
 
 35 
 
 120 
 
 53 
 
 447 
 
 162 
 
 13 
 
 54 
 
 18 
 
 61 
 
 43 
 
 351 
 
 60 
 
 3 
 
 43 
 
 4 
 
 26 
 
 17 
 
 153 
 
 113 
 
 16 
 
 77 
 
 17 
 
 122 
 
 33 
 
 378 
 
 10 
 
 7 
 
 36 
 
 3 
 
 21 
 
 11 
 
 88 
 
 'Salaried staff positions are included with mine hourly personnel. 
 
 2 Estimate based upon the average percent the work group comprises of the total for all of the companies. 
 
 1,200, 
 
 1,000- 
 
 800 
 
 2 600- 
 
 2 
 
 o 
 
 400- 
 
 200 
 
 Y=68.0+0.0I0I8X 
 Correlation coefficient = 0.905 
 Standard error of eetlmote = ±89 
 
 I standard deviotion unit 
 
 30 40 50 60 
 THOUSAND SHORT TONS PER DAY 
 
 100 
 
 FIGURE C-7. — Total employees versus daily tonnage in open-pit mining. 
 
19 
 
 TABLE C-8. — Estimates of mine and mill personnel by type of mining' 
 
 Underground mining at 
 rate of 
 
 500 
 st/d 
 
 1.000 
 st/d 
 
 1,500 
 st/d 
 
 2,000 
 st/d 
 
 3,000 
 st/d 
 
 4,000 
 st/d 
 
 5,000 
 st/d 
 
 Underground mining at 
 rate of 
 
 500 
 st/d 
 
 1.000 
 st/d 
 
 1,500 
 st/d 
 
 2,000 
 st/d 
 
 3,000 
 st/d 
 
 4,000 
 std 
 
 5,000 
 st'd 
 
 
 
 Blasthole: 
 
 Mine 
 
 Mill 
 
 2 110 
 
 35 
 
 140 
 50 
 
 175 
 60 
 
 215 
 
 70 
 
 295 
 85 
 
 375 
 100 
 
 460 
 110 
 
 Room and pillar: 
 
 Mine 
 
 Mill 
 
 35 
 35 
 
 115 
 50 
 
 205 
 60 
 
 290 
 70 
 
 470 
 85 
 
 650 
 
 100 
 
 835 
 110 
 
 
 Total 
 
 Shrinkage stope: 
 
 Mine 
 
 Mill 
 
 Total 
 
 
 Total 
 
 145 
 
 190 
 
 235 
 
 285 
 
 380 
 
 475 
 
 570 
 
 70 
 
 165 
 
 265 
 
 360 
 
 555 
 
 750 
 
 945 
 
 Cut and fill: 
 
 Mine 
 
 Mill 
 
 200 
 35 
 
 255 
 50 
 
 315 
 60 
 
 375 
 70 
 
 500 
 85 
 
 620 
 100 
 
 NC 
 NC 
 
 NC 
 
 120 
 35 
 
 185 
 50 
 
 250 
 60 
 
 NC 
 NC 
 
 NC 
 
 NC 
 NC 
 
 NC 
 
 NC 
 NC 
 
 NC 
 
 NC 
 NC 
 
 Total 
 
 235 
 
 305 
 
 375 
 
 445 
 
 585 
 
 720 
 
 155 
 
 235 
 
 310 
 
 NC 
 
 Long hole: 
 
 Mine 
 
 50 
 35 
 
 115 
 50 
 
 190 
 60 
 
 260 
 70 
 
 410 
 85 
 
 560 
 100 
 
 710 
 110 
 
 Open-pit mining at 
 rate of 
 
 10,000 20,000 30,000 40,000 50,000 60,000 
 st/d st/d st/d st/d st/d st/d 
 
 70,000 
 st/d 
 
 
 
 Mill 
 
 Mine 
 
 Mill 
 
 Total 
 
 50 
 120 
 
 100 
 170 
 
 160 
 210 
 
 230 
 240 
 
 305 
 270 
 
 380 
 295 
 
 455 
 
 Total 
 
 85 
 
 165 
 
 250 
 
 330 
 
 495 
 
 660 
 
 825 
 
 320 
 
 Open stope: 
 
 Mine 
 
 Mill 
 
 65 
 35 
 
 100 
 50 
 
 140 
 60 
 
 175 
 70 
 
 260 
 
 85 
 
 340 
 100 
 
 NC 
 NC 
 
 NC 
 
 170 
 
 270 
 
 370 
 
 470 
 
 575 
 
 675 
 
 775 
 
 Total 
 
 100 
 
 150 
 
 200 
 
 245 
 
 345 
 
 440 
 
 
 NC Not calculated; beyond the limits of the data. 
 'All numbers are rounded to the nearest unit of 5. 
 2 Position shifts per 24-h day, 8 h per shift 
 
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LEGEND 
 Region boundaries 
 
 Roads 
 10 Escalation factors 
 
 Note: Escalation (actors are shown as dotted lines of 
 equal cost and as centers ot cells that extend 
 half-way to adjoining cells. 
 
 o o 
 
 FIGURE A-1.— Alaska capital cost factors.