FEASIBILITY ANALYSIS OF LIMESTONE MINING AT PT.HARVEY TO SUPPORT THE CLINKER CEMENT INDUSTRY USING EXCEL VBA MACRO

• Main Author: KURNIAWAN RUSLI NIM 13413090, RONALD
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30672
• Institution: Institut Teknologi Bandung

The need for limestone as the main material of clinker-cement is increasing along <br /> <br /> with the trend of increasing cement production from year to year up to 6% with 100 <br /> <br /> million tons production in 2017. This is also supported by national economic <br /> <br /> growth that have a causal relationship with increasing national expenditure <br /> <br /> infrastructure consumption. <br /> <br /> PT. Harvey, who previously engaged in agribusiness, then saw opportunities in this <br /> <br /> business. This interest was then supported by an offer of mining land process <br /> <br /> cooperation from PT. Pumarin, a company in Padalarang, West Bandung, which <br /> <br /> owns limestone mining land. For this reason, PT. Harvey wanted to plan investment <br /> <br /> in limestone mining in the mining area owned by PT. Pumarin as a supporting <br /> <br /> business in the cement industry. <br /> <br /> Investment in stone mining has a relatively high risk of financial loss in the mining <br /> <br /> business, so before the investment is made there must be good planning to reduce <br /> <br /> the risk of financial loss. For this reason, it is necessary to conduct a financial <br /> <br /> feasibility analysis so that it can be known whether the mining business will be <br /> <br /> feasible or not. This feasibility analysis well be considered by looking at 4 aspects, <br /> <br /> namely market, legal, technical and financial aspects. To facilitate the financial <br /> <br /> feasibility analysis, a computerized model will be developed using Excel macro <br /> <br /> VBA platform. <br /> <br /> Investment is considered feasible if all aspects meet the criteria of each. The <br /> <br /> feasibility of market aspects is measured from the analysis of market space and <br /> <br /> Porter's five forces analysis. Feasibility of legal and technical aspects is measured <br /> <br /> by ensuring the fulfillment of legal and technical needs to run a business. <br /> <br /> Financially, feasibility is measured by 4 investment feasibility indicators, namely <br /> <br /> net present value (NPV), internal rate of return (IRR), and payback period (PBP), <br /> <br /> and benefit cost ratio (BCR), then sensitivity analysis. <br /> <br /> The results of the study show that this investment plan is feasible from the 4 aspects <br /> <br /> analyzed. Financially, investments are shown to be feasible with NPV of Rp <br /> <br /> 2.396.446.271,54, IRR of 35%, PBP of 33 months, and BCR of 1.21. The results of <br /> <br /> the sensitivity analysis show 2 sensitive variables that need to be considered in the <br /> <br /> business, namely total income and non-fixed costs with gradients of change <br /> <br /> respectively 9,951 and 5,704.