UTILIZATION OF UNDERSIZE CRUSHED LIMESTONE FOR BUSINESS DEVELOPMENT PROJECT AT PT. BHUMIADYA INDONESIA (BMA)

• Main Author: ARIF SYAHRIJAL - 29116065, MUHAMMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29141
• Institution: Institut Teknologi Bandung

PT. Bhumiadya Indonesia is a firm that operates Kiln Plant in West Bandung District, West Java, to produce lime (Calcium Oxide), the limestone raw material is received from third party supplier and also from own mining area under different entitled firm’s name which called PT. SBI. This firm then operate mining area and do crushing limestone to have suitable quantity and quality requirement of PT. BMA. <br /> <br /> <br /> Crusher Plant at PT. SBI mining area produced 2 types of size of crushed limestone, which are size 30-50mm, 60-80mm and size below 30mm as by product. The total of 2 types crushed limestone is around 600 ton per day will deliver to PT. BMA as raw material and the rest 400 ton per day as by product remain stay in PT. SBI’s mining area. There is operation issue from mining area which decrease the working space as the by product undersize crushed limestone increasing every day and required extra work to manage the stockpile and additional operation cost for maintaining un used inventory. <br /> <br /> <br /> In order to handling the undersize of crushed limestone and not to sell as low-price raw material, the new project investment is proposed to build up limestone grinding mill at PT. BMA Plant. The idea is to utilize undersized crushed limestone as ram material and produce the ground calcium carbonate (GCC) product size 200 mesh and enter the market as the expansion of PT. BMA business. This idea also expected to settle operation challenge at PT. SBI mining area. <br /> <br /> <br /> The total budget proposal including capex and opex for the first year is IDR.37,304,142,720. This amount then review to its financial perfective. Discounted Cash Flow Analysis is applied to the project and sensitivity analysis and monte carlo simulation are applied to understand the risk of investment. And the result of calculation showed that NPV is positive, IRR is 19.76% and Payback periode 3.9 years. From this result, the proposal it is recommended to PT. BMA Management to step in the new investment to get advantages of expanding the business and handling operation issue at SBI mining area positively. <br />