COMPARATIVE STUDY OF PURCHASING, RENTING OR HIRING HEAVY CONSTRUCTION EQUIPMENT FOR A MINING COMPANY

• Main Author: Febriana, Yudha
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63048
• Institution: Institut Teknologi Bandung

The open-pit coal mining development phase is inseparable from the civil construction preparation process in the mining area. Particularly if the development is essential for a pit mining extension that will deliver millions of tons of coal each year. Coal haul road, sediment pond facilities, national road diversion, river diversion, micro tunnel, underpass construction are the primary works that will be set up to support this stage. A large amount of money will be allocated for the readiness of the capital budgeting. Besides, when executing this capital undertaking, it will be given alternative decisions in the strategy for assets utilization. The options are purchasing own equipment, renting equipment, or hiring a contractor. Not all coal mining organizations hire contractors in their activity’s operations. First, the organization was a pioneer in the beginning of coal mining where there were no contenders around then. Second, they have sufficient worker assets and backing instruments. Contrasted with other capital, equipment is a fundamental factor in development, especially in the hefty and thruway portions of the mining industry, where it could be the biggest long term capital investment for many organizations. The study intends to analyze the capital budgeting process and decide which alternative is more efficient the heavy equipment, renting, or hiring a contractor. According to the study's findings derived from PT Indonesia Mining, renting is the best and most efficient alternative compared to purchasing equipment or hiring a contractor.