CAPITAL INVESTMENT ANALYSIS OF SLURRY PUMP IN PIT QSV1, EAST KALIMANTAN (CASE STUDY AT PT BERAU COAL)

• Main Author: Riaviandhi, Dhehave
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/69977
• Institution: Institut Teknologi Bandung

Coal prices on the Newcastle (Australia) ICE market in March 2022 closed up 46.01% to the level of US$ 446/ton. This is the highest record since at least 2008. With this, since the beginning of the year (ytd), the price of the black stone has sky rocketed to 193.90%. Meanwhile, in the last year, the price of coal has increased by 425.32%. With the current high price of coal, PT Berau coal has carried out several optimizations and improvements carried out in 2022 and for the following years. One of the activities is planning to open a mine that has been closed for a long time since 2019, namely Pit QSV 1. If only using conventional methods with trucks and shovels, the mud cannot be transported and removed from the pit on time. In addition, the truck and shovel method is a very high risk activity, because the operational frequency of the work is closely related to mud. Investments in a slurry pump are required to open this Pit QSV 1, because this pump can suck both water and mud at the same time also more safety. Based on the financial feasibility analysis, the slurry pump investment is feasible to implement. Investments that need to be issued by PT. Berau Coal for $4,371,463.43 from CAPEX at 10% WACC. The NPV is estimated at $1,005,924.04, coupled with an IRR of 24%, a payback period of 1.3 years, a Discounted Payback Period of 1.6 years, and a positive profitability index of 1.18. The probability of this project failing (NPV0) is 0%. In this research on financial feasibility analysis, several components of the calculation are still based on assumptions. Basically, the actual project implementation tends to be more operationally dynamic, because it will always intersect with technical matters and company procedures. Therefore, it is recommended to carry out strict supervision and monitoring on a regular basis to avoid excessive use of the budget which can reduce the cost efficiency that will be obtained. Delay in starting the project will also affect the NPV of the project.