INVESTMENT PROJECT ANALYSIS OF SURFACE MINERS METHOD BLOCK PARAPATAN SITE BINUNGAN (CASE STUDY : PT BERAU COAL)

• Main Author: Hudiantoro, Arief
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/69984
• Institution: Institut Teknologi Bandung

The coal mining industry is a costly and high-risk business that is significantly exposed to turbulence and high uncertainty. Block Parapatan in the Binungan area, part of the PKB2B Genarasi 1 area of PT. Berau Coal, is an active mining area. This project is projected as a 'green' project for Berau Coal, with a low-cost production profile but has challenges in the coal industry conditions in the form of uncertain external conditions that make the Block Parapatan have a mining pattern that is different from other blocks in all areas of PT. Berau coal is a material separation method using the ripping method instead of the blasting method. However, the Ripping method has limitations in its operation, especially in the planned mining depth, so continuous innovation is needed using other methods and in this case the use of the Surface Miner tool is an option for dissolving the material. Careful consideration and review of these mining patterns coupled with the volatility of coal prices, fuel prices, demand and regulations have been considered as significant challenges to be faced in the valuation of an investment in a mining project. Uncertainty in the business profile is expected to significantly affect the project's projected cash flows. Therefore it is necessary to carry out an adequate assessment. It is also deemed necessary to consider the best method or strategy as well as the flexibility of the company's management to accommodate these conditions during the project and choose the best alternative to maximize the value of the project. The method used by PT Berau Coal for the mining pattern using Surface Miner is Discounted Cash Flow (DCF). Calculations from this valuation method will be used as management judgment for mining decisions. The DCF method used on Surface Miner mining equipment in the “Block Parapatan Site Binungan” mining project is feasible to use. Because the discounted cash flow (DCF) assessment has an NPV value > 0, namely $ 101.87.0 Million, the IRR > Discount rate is 132% of the 9.61% discount rate and the Payback period is 2.3 years, shorter than the project period, i.e. 7 years and the Probability index > 1 is 2.9.