INVESTMENT ANALYSIS OF CURVED CHUTE 80 TO 62 CONVEYOR AND 33 TO 34 CONVEYOR PROJECT CONCENTRATING DIVISION PT. FREEPORT INDONESIA

• Main Author: SIANIPAR (NIM : 29107146); Pembimbing: Dr. Ir. Sudarso Kaderi Wiryono, TAGOR
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/17369
• Institution: Institut Teknologi Bandung

PT Freeport Indonesia (PTFI) as a copper, gold and silver concentrate producer is always try to operate in the most efficient production cost to adapt with the fluctuated metal commodity price. Concentrating division in 2004 started curved chute project as one of the solution to reduce the plugged chute impact to the production and to achieve more efficient conveyor belt replacement cost. Curved chute project phase I is consists of 6 project with 2 remaining projects,80/62 conveyor and 33/34 conveyor transfer chute. Decreased production loss data of plugged chute event and decreased conveyor belt replacement cost at the 4 finished projects 51/53, 83/51,63/72 and 62/63 is used as a success factor project in the investment analysis to the remaining project. Curved chute 80/62 project with 6 years life time in the most likely scenario <br /> <br /> <br /> (copper 1.5 USD/lb, gold 800 USD/oz and silver 9 USD/oz) and RADR 15% is feasible to be executed in 2009 resulting in positive NPV 777,863.92 USD, IRR 32.13%, and Payback Period 3.33 years. Curved chute 33/34 project with 10 years life time in the most likely scenario with RADR 20% is not feasible to be executed in 2009 resulting in negative NPV 1,031,467.83 USD, IRR 1.59% and without Payback Period. Using Solver, with an objective to be feasible for the project to be executed in 2009, then the most likely scenario shall be modified with copper price higher than 2.90 USD/lb. If curved chute 33/34 project is cancelled for 1 year, consider copper price shall be higher than 2.99 USD/lb, and while it is cancelled for 2 years, consider copper price shall be higher than 3.12 USD/lb to be feasible for the project curved chute 33/34 to be executed. <br />