FINANCIAL ANALYSIS OF INL PROJECT LAND REINFORCEMENT: CASE OF A COAL MINING COMPANY IN EAST KALIMANTAN

• Main Author: Mardianti
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80701
• Institution: Institut Teknologi Bandung

PT XYZ is one of a leading coal mining company in Indonesia with production capacity reaches 55 million tons per year, located in East Kalimantan. PT XYZ engages in coal mining and sales for both domestic and international customers from various industrial sectors. One of production of PT.XYZ is the INL Area, gives the high impact for all of PT. XYZ production for the next eight years. The type of coal product from this pit as low quality with an average calorific value is about 4200 Kcal/kg GAR. The coal company, which is a cost leadership business, always strives for cost efficiency so that the company can make more profits., The highest cost that requires is fuel consumption, notably the movement of overburden to dump waste, thus one option to improve efficiency is to optimize distance from the mining front of the INL pit to the dump waste. The case study of the financial analysis is aiming for a comparative study by using two scenario alternative of financial model which are scenario A: Pit INL used recently waste dump and the cycle time around 6.7 Km and Scenario B: Pit INL proposed new dump waste design with investment borepile reinforcement project to accommodate overburden removal for INL pit and has cycle time around 5 Km. The financial model shows all of the feasibility parameter such as the NPV, IRR, PI and PBP between all of the scenario. Scenario analysis is also conducted measure probability of the project to succeed, to determine the significant variables and the sensitivity of these variables to the feasibility of the project. The Risk analysis on this project take three variables into account as the variables that have the greatest influence on the project's value such as coal price realization and fuel consumption. The best option of this chase that we proposed to management is scenario B that giving higher value to PT.XYZ, submission of investment for the borepile reinforcement project, with a potential value of NPV around 144.24 M$, 33 IRR %, and PBP 4.2 years.