KHZ-drilling technology is a new drilling concept under technology development phase in SMC. The objective of this work is to study the total drilling costs (TDC) with KHZ-technology in underground drifting and tunneling applications. The TDC-value is compared with that of the current technology in order to evaluate the competetiveness of the concept and identify/quantify the development targets for different subsystems, for instance drilling tools. The TDC-analysis will be a basis for the Business Impact Analysis and the business model development process.