DETERMINING THE BEST ALTERNATIVE TO BUILD & OPERATE COAL CRUSHING FACILITIES; ANALYTIC HIERARCHY APPROACH

• Main Author: Paido Simatupang, Kondar
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85838
• Institution: Institut Teknologi Bandung

PT. KLM is one of the coal producers in Indonesia with a production capacity of up to 55 million tons per year. The operational area includes sites A and B, covering a total area of approximately 65,000 hectares. In region A, coal is delivered by truck from the mine, then crushed, and subsequently transported to the port where it is loaded onto ships using a conveyor. Currently, the mining location is getting farther from the Coal Processing Plant (CPP). From the Life of Mine developed by the Company, the new Pit location is approximately 17 km from the existing CPP and about 7 km to the Coal Terminal. The economic evaluation study considers that the company is planning to build a crushing facility to reduce the operational costs of coal hauling near the pit. The case study for the financing plan of the new coal crushing facility close to the mining site presents 3 (three) alternatives: the construction of the facility by the company (capital expenditure) using its own funds, the construction of the facility by the company using leasing (loan), and the construction of the facility through a partnership with a third party under a rental scheme. The financial model shows all the feasibility parameters such as NPV, IRR, PI, and PBP across all scenarios. The research methodology involves analyzing problem trees and stakeholders to uncover business complexities and identify the root causes of issues. Qualitative data collection was conducted through semi-structured interviews. All alternatives were evaluated using Value-Focused Thinking (VFT), and the Analytic Hierarchy Process (AHP) method was employed to determine the best alternative, assisted by the Super Decision application.