INVESTMENT PROJECT ANALYSIS OF PUBLIC ROAD DIVERSION PLAN IN SOUTH GURIMBANG PIT, JOB SITE GURIMBANG MINE OPERATION - PT. BC

• Main Author: Patandung, Lukas
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85844
• Institution: Institut Teknologi Bandung

Gurimbang Mine Operation (GMO) is one of the mining concession locations with a Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B) license granted by the Government to PT.BC. This site only began mining in 2021 with total coal reserves of 52 million MT that can be produced over approximately 12 years (2021 – 2033). The site faces an external challenge due to a public road (provincial road) that crosses the planned mining area at GMO, particularly in Pit West and Pit South. As a result, there are about 3.5 million MT of coal reserves that cannot be mined because of the presence of this provincial public road within the planned mining area. To support the conservation of energy on marginal coal reserves and maximize coal extraction from the site, government support is needed to permit the diversion of the public road, enabling the mining of all coal reserves at the site. Through the permit application process submitted to the provincial government via the PUPR service, the government supports the diversion of the public road by PT.BC as long as it meets the technical requirements provided by the government. Several tasks that PT.BC must carry out for the diversion of the public road include constructing a new road outside the mining concession area according to the technical specifications required for provincial public road construction, building houses, and providing facilities for local residents affected by the diversion to the new settlement area. Therefore, an analysis of the economic aspects of the company and external factors affecting the business environment is necessary. The PESTEL framework is used to measure the external impact on the business environment, while the analysis of the company's ability to conduct business is performed by identifying tangible and intangible resources owned by the company. Capital Budgeting is used to assess the financial feasibility of a project. Additionally, a sensitivity analysis of several economic parameters is conducted to identify which parameters have a significant impact on the project's economics. Sensitivity analysis of all influencing variables such as coal prices, fuel price, cost of capital and inflation, as well as risk management are expected to provide solutions in project implementation and decision making by company management. To assess the investment feasibility of the project, the Discounted Cash Flow (DCF) method is used. From the alternative for relocating public roads within the PT.BC mining concession area outside the mining plan area using the DCF method produces an NPV value of USD 25,459,086, an IRR of 44.54% and a Payback Period of 2.21 years in the base case condition, while in the worst case condition it produces an NPV value amounting to USD 143,833, IRR 12.14% and Payback Period 4.86 years and best case conditions produce USD 128,914,436, IRR 136.6% and Payback Period 1.05 years, showing that the coal price factor is the most sensitive variable in the project investment that will be implemented.