CALCULATION OF THE FEASIBILITY AND EFFECT OF ECONOMY DUE TO FORMALIZATION OF UNLICENSED GOLD MINING INTO SMALL SCALE MINING (CASE STUDY : UNLICENSED GOD MINING IN KABUPATEN BENGKAYANG)

• Main Author: Putra Silalahi, Adi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/63360
• Institution: Institut Teknologi Bandung

People's mining is a legal and licensed activity, but it is often perceived that mining activities without a permit (PETI) are the same as people's mining activities. This study aims to calculate the feasibility parameters and economic impact due to the formalization of unlicensed gold mining into people’s mining in Bengkayang Regency. The method used to calculate the economic feasibility parameters of smallholder mining projects due to the formalization of PETI to PERA is Discounted Cash Flow (DCF) by discounting the cash flows obtained at a certain discount rate. Economically feasible projects are projects with an IRR greater than the discount rate and a positive NPV. The results of this study indicate that the formalization project of Unlicensed Gold Mining into People's Mining in the case study area of Bengkayang Regency is economically viable. The economic impact that occurs is the increasing of the number of workers needed from 5 to 18 people, then the increasing of miners' income from Rp. 5,004,000.00 to Rp. 7,000,000.00 per month per person, and the increasing of state revenue of Rp. 1,137,584,280.47 for 10 years of mining activities.