2. Hydraulic Excavator Costs ©Dr. B. C. Paul 2000

3. Economics of Hydraulic Excavator l Has about same cycle time as Cable Shovel - about 25 seconds Need to watch Hydraulic Excavator Specs (Cable Shovels rate for 120 degree swing while HEs rate for 90 degree) Swing adjust factor is about 1.2 l We’ll use same run times as Cable Shovel and only 2 trucks

4. Ownership Costs l About $1,200,000 to purchase l 5% for Extras $60,000 l Transportation at $4/hundred weight 344,687 lbs implies $14,000 l Cost on Site is $1,274,000 l Life is 35,000 hours over 1934/year 35,000/1934 = 18 years l Annual Cost is 0.16319*1,274,000 = $208,000

5. Other Ownership l Taxes and Insurance at 5% of average annual investment 19/36*$1,274,000*.05 = $33,600 l Tax Advantage $1,274,000/18*0.4 = $28,300 l Annual Ownership Cost $213,300 compared to $194,000 FEL

6. Operating Costs l Fuel - 18 gallons/hour fuel $1/gal $18/hour l Komatsu - Gives Lubricants but not mechanics to install them Use Terex Rule 1/3rd fuel $6/hour l Repair Costs - sometimes not shown on new larger machines Extrapolate $20/hour

7. More Operating Cost l Operators - use same as Cable Shovel $44.60hour l Total $88.60/hour l 1934/year $171,400/year l Total Ownership and Operating $384,700 Consider $75,000 savings on trucks $309,700 or 31 cents/ton

8. Comparisons l Contrast to 35.8 cents/ton for FEL l Got an operating priority vs. Cost decision FEL is more mobile HE is lower cost but HE may need FEL support to clean up spills but HE may also be able to run with just one operator Close Call