INVESTMENT PROJECT ANALYSIS OF DUAL SYSTEM SUPPLY POWER STUDY CASE AT SITE SAMBARATA MINE OPERATION PT BERAU COAL

• Main Author: Chandra Syaputra, Dwi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85850
• Institution: Institut Teknologi Bandung

PT Berau Coal, is facing operational challenges in its Sambarata mine, primarily due to inconsistent power supply due to its single electricity supply system of four diesel generators. This affects the efficiency of the coal processing plant and productivity. The use of B30 fuel, a blend of biodiesel and diesel, has environmental impacts and significant operational expenditure. To address these issues, the company needs to make informed investment choices, focusing on asset investments that can enhance operational performance and energy use, potentially eliminating production losses. The research aims to develop a reliable power supply solution for the Sambarata Mine by assessing potential investment options, financial, operational, and environmental implications, and implementing the dual system investment option. The issue of single systems power supply not guaranteeing 100% performance availability, which can lead to disruptions and negatively impact operations. It proposes implementing a redundant power supply system through a multi-step process, including a Business Strategy Approach (Kepner-Tregoe Method), Capital Budget Analysis for Redundancy Power Supply, Financial Analysis, Risk Analysis, and Sensitivity Analysis and Monte Carlo Simulation. The study analyses potential problems related to dual system power supplies, including over expenses, unchanged operation costs, reliability issues, operational impact on coal processing, and integration challenges with existing systems. The proposed solution is the implementation of a dual power supply system, combining existing generators and a subscription to PLN. The investment plan for PT Berau Coal Site SMO involves strategic planning to ensure maximum performance availability. The system planning includes a dual system power supply by subscribing to PLN, which allows the current generator to serve as a backup system during PLN repair. The capex value is the actual worth of the offer provided by PLN as a provider, along with the tender value for the supporting infrastructure. Operational expenditure on the power supply system is a significant cost component, and the company needs to evaluate for efficiency and consider the potential impact of government policies related to carbon and environmental taxes. The company has identified a discount rate of 12%, known as the weighted average cost of capital (WACC), to be used in the net present value (NPV) analysis for this investment project. Cash Flow Analysis is a method used to assess the impact of a project on a company's free cash flow. It involves calculating changes in each component due to the project and adding them up. The project's NPV is positive, indicating it is expected to create value for the company over its lifetime. Sensitivity analysis variables help assess how changes in NPV may affect the expected level of an investment. Monte Carlo simulation is used to obtain a more thorough view of risk and uncertainty in the investment model. The proposed solution for power supply issues at PT Berau Coal's Sambarata Mine is the implementation of a dual power supply system. This system offers higher reliability and redundancy, reduced downtime, increased production, and lower operational costs. Successful implementation requires careful planning, risk management, contractual agreements, staff training, and monitoring and evaluation. PT Berau Coal is implementing a plan to achieve 100% Performance Availability (PA) in supplying operational electricity to SMO (Sambarata Mine Operation) at the coal processing plant. This involves investing in additional power sources and subscribing to PLN (Perusahaan Listrik Negara), which ensures a sustainable and reliable power supply. The plan also reduces the environmental impact of using diesel fuel in generators used for operations. Compliance with government regulations on carbon tax gives the company an advantage by choosing to subscribe to PLN as it reduces carbon emissions from operations. The implementation plan is structured with a systematic and phased approach, focusing on investment objectives, feasibility assessment, and proposal development. The justification for this investment is based on power supply reliability, cost-effectiveness, environmental impact, and regulatory compliance. The implementation plan requires collaboration and commitment from multiple stakeholders.