IC 9107 Company Towns Versus Company Camps In Developing Alaska's Mineral Resources

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.0.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.