FINANCIAL ANALYSIS TO CONSIDER THE BEST OPTION OF NEW RECYCLING BALL PLANT ALTERNATIVES AT CONCENTRATING DIVISION PT FREEPORT INDONESIA

• Main Author: AGUNG JF (NIM : 29107139); Pembimbing: Dr. Ir. Sudarso Kaderi Wiryono, DEA, MUHAMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/16517
• Institution: Institut Teknologi Bandung

Concentrating Division in PT Freeport Indonesia has consumed grinding steel balls for the purpose of concentrate production at very high rate. This rate depends on the number of mineral processing throughput in the milling circuits. Recently most of those grinding balls were supplied by purchasing new grinding balls, meanwhile just a small amount of grinding balls provided by recycling ball process. This situation was mainly happened due to the existing recycling ball plant capacity was quite low due to it just set up to recycle reject balls from SAG Mill which has diameter around +50mm on the other hand reject balls from Ball Mill that mostly in 15-50mm diameter range has not been recycled. <br /> <br /> <br /> Recycling 15-50mm grinding balls offers enormous benefit and opportunities. <br /> <br /> <br /> Therefore from this final project several recommendations to increase existing recycle ball plant capacity was tried to analyse by using several financial analysis methods i.e., cash flow, capital budgeting techniques and cost reduction analysis. The alternatives to increase existing recycling ball plant capacity i.e., build automation plant, modified existing plant or build several recycle plants near the grinding circuits. From the financial analysis it is recommended to modify the existing recycle ball plant which is the 2nd option. Since it has several competitive advantages such as low <br /> <br /> <br /> initial investment and low electrical consumption therefore it offers better financial return than other alternatives. The project estimated has Payback Period 0.4-0.7 years, NPV$0.848-15 million, IRR 2-271% and Profitability Index 0.73-13.17.