Mohutsiwa, M.Musingwini, C.2017-02-172017-02-172015-08Mohutsiwa, M. and Musingwini, C. 2015. Parametric estimation of capital costs for establishing a coal mine: South Africa case study. Journal of the Southern African Institute of Mining and Metallurgy. 115(8), pp. 789-797. DOI: 10.17159/2411-9717/2015/v115n8a172225-6253http://hdl.handle.net/10539/22069The work reported in this paper is part of a MSc research study at the University of the Witwatersrand.Capital cost estimates are important in decisions on whether a project will be approved, mothballed, or abandoned. In South Africa, junior coal miners do not have extensive databases of historical projects from which to estimate capital costs. The purpose of this paper is to establish formulae that can be used for estimating capital costs of developing coal mines in a coal-producing country, using South Africa as a case study. The costs are estimated to an error of magnitude level of-30% to +50%, which is suitable for a concept study level, using a parametric estimation technique. The study uses data from completed coal mining projects from selected coal-producing countries. Three formulae are developed and presented for estimating capital costs of underground bord and pillar, surface shovel and truck, and dragline operations.en©This Journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.Capital costsCoal miningParametric cost estimationCost benefit analysisBord and pillarDragline operationConcept studiesArticle