INVESTMENT ANALYSIS OF CRUSHING STATION 11 UPGRADE TO SUPPORT COAL PRODUCTION IN PIT Z, BINUNGAN MINE OPERATIONS, PT. BERAU COAL

• Main Author: Fadhlullah Muharam, Adnan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85937
• Institution: Institut Teknologi Bandung

Binungan Mine Operations is one of the operational sites of PT. Berau Coal, one of the largest coal mining companies in Indonesia located in East Kalimantan. In 2024, the production target at the Binungan site is around 44% of the company's total production target and will continue to increase in the coming years, this makes the Binungan site a critical area for the company in achieving coal production targets. Pit Z is a Pit at the Binungan site with large coal reserves, the estimated coal reserves in Pit Z based on Life of Mine (LOM) data is around 10.77 Million Metric Tonnes. The current condition is a breakdown of the crusher unit at the crushing station during the crushing activity of Pit Z coal, Further investigation found that the cause of the damage was the Hardgrove Grindability Index (HGI) value of Pit Z coal (29 - 36) which was lower than the specifications of the crusher unit at the crushing station (HGI ? 40). HGI is a measure of coal resistance to crushing activities, the smaller the HGI value, the more difficult the coal characteristics are to crush. The coal crushing activity is a critical activity in the company's operations, disrupting this activity will certainly have an impact on the company's business processes as a whole, so immediate solutions to existing problems are needed, since delays in resolving problems will not only affect mining operations at Pit Z, but the Binungan site as a whole. Based on the technical assessment and selection of business solution alternatives and also Financial analysis of proposed solutions, PT. Berau Coal plans to invest Rp.35.7 billion for the construction of a New Crushing Station (CR 11 Upgrade) as a solution to the existing problems. This research aims to evaluate the financial feasibility of the New Crushing Station construction scenario, the method used in the analysis is the Discounted Cash Flow Method (DCF) with Incremental cost. The construction of a new crushing station produces the following financial parameters NPV Rp. 12,356 billion, Profitability Index (PI) 1,35, IRR 22,20%, Payback Period 2,75 years and Discounted Payback Period 3,26 years. Sensitivity analysis shows that coal production is the most sensitive parameter to NPV fluctuations, where a ± 20% parameter change will result in a ± 88,39% NPV fluctuation. In addition, based on Scenario Analysis and Monte Carlo Simulations, it is found that the worst scenario produces an NPV of Rp. 8,055 billion and the best scenario produces an NPV of Rp. 15,831 billion, and the probability of NPV < 0 is 2,05% and NPV > Base Case is 46,96%. The analysis results show that the project implementation is financially feasible, the project will generate profits for the company even under the worst conditions. So it is highly recommended for PT. Berau Coal to implement the project.