FINANCIAL ANALYSIS AUGER MINING METHOD WITH A CAPITAL BUDGETING APPROACH
PT. Berau Coal is a company that holds a Coal Mining Concession Work Agreement (PKP2B). Administratively, the agreement area is located in Berau District, East Kalimantan Province. Detailed exploration activities have been carried out by PT. BERAU COAL, and has obtained approval of the Final Explora...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/61306 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT. Berau Coal is a company that holds a Coal Mining Concession Work Agreement (PKP2B). Administratively, the agreement area is located in Berau District, East Kalimantan Province. Detailed exploration activities have been carried out by PT. BERAU COAL, and has obtained approval of the Final Exploration Report and recommendations to carry out a Feasibility Study from the Director of the Directorate of Mineral and Coal Businesses since 26 April 1983. In this Business Issue there are four things to focus on, namely:
a. The Coal Price Decline In Mid-2020
b. The Decrease of Coal Reserve Pit K12 and D2
c. Company obligations related to Coal conservation
d. External Issue
How the Coal Price Decline & Coal reserve updates in K12 and D2 have a direct impact on decreasing production & equipment standby. Further raises the issue of the volume of Coal that had been promised to the government according to the doc feasibility study could not be fulfilled. More Effort is expected by the government according to the regulation is the Minister of Energy and Mineral Resources Regulation No. 26 of 2018 concerning the conservation of minerals and Coal.
Auger is one solution that will be discussed in this paper. Technically and economically able to answer the above issue. Several strategies and scenarios related to production and investment plans are presented to determine the best value. Based on the evaluation of the four scenarios, then through the capital budgeting approach all scenarios are feasible and the first scenario (no investment approach) is the best. This is considering the operating license which will expire in 2025.
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