EFFORTS TO REDUCE CLIMATE CHANGE IMPACT ON MINING OPERATION PROFITABILITY BY DATA VISUALISATION AND SYSTEM DYNAMICS APPROACH: CASE STUDY PT. BERAU COAL
Climate change effects could come in direct or indirect forms to the coal surface mines operation. The direct impact on the operation with changing weather trends of extreme rainfall will increase operation delays and decrease company revenue. The indirect impact would be potential carbon tax policy...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Subjects: | |
| Online Access: | https://digilib.itb.ac.id/gdl/view/70253 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Climate change effects could come in direct or indirect forms to the coal surface mines operation. The direct impact on the operation with changing weather trends of extreme rainfall will increase operation delays and decrease company revenue. The indirect impact would be potential carbon tax policy implementation that puts carbon pricing on the emission generated by high fossil fuel usage, increasing the company mining cost. The company’s profitability will be at risk in the current condition if there are no efforts to minimize the impact.
Literature review and data visualisation using operation data compiled from the mining operation throughout 2017 to 2021 that consist of all unit performance, rainfall, and fuel consumption are analyzed to find out contributing factors of climate change effect in the mining operation. Climate change affects several parameters, such as external policy on strict emission policy from the government, weather-related delays, decreasing productivity, and increasing fuel ratio due to higher support unit work. The system dynamics model was then developed based on the critical operating parameters to measure its impact on the company’s profitability. Nine scenarios were developed from three group scenarios: decreasing weather-related standby, reducing fuel consumption, and increasing operational efficiency.
The simulation for 2022 to 2026 results confirmed that future mining operation profitability should not depend on increasing unit numbers to overcome increasing weather-related standby but instead increase the working area resilience to face extreme events or even pursue weather manipulation efforts that could bring USD 30 million additional profit. Fuel efficiency by increasing operation control, using a higher percentage of biofuel, and starting to operate non-fossil fuel-based trucks could increase the company’s profit by USD 22 million. Above all the high capital projects, the company should also focus on improving the operation efficiency by increasing physical availability, usage of availability, and productivity which could generate an additional USD 45 million for the company.
|
|---|