Investment Project Analysis of Mud Handling Using Slurry Pump Method: A Case Study of Pit C2 PT. Berau Coal

Abstract

Disposal is important in mining activity for allocation of waste material that need to be dispose to obtain the coal ores. The disposal allocation in Pit C2 currently has a long distance and there is an additional cost incurred due to the distance rate adjustment from distance contract reference. To overcome this problem, there is an option of short distance disposal scenario, namely in pit dump scenario. With this scenario, there is cost efficiency from the distance rate adjustment due to the reduction in disposal distance. Sump H as a planned area for in pit dump is currently fulfilled with sedimentation material, with a volume around 1,2 million cubic meters (BCM). Therefore, it is necessary for mud handling in Sump H area for it to become in pit dump location area. One of the proposed scenarios is the use of slurry pump, this scenario is more suitable for current condition due to it can finished earlier. However, it is necessary to study and evaluate further the financial analysis of the proposed scenario in comprehensive manner. To obtain the financial feasibility of this project, this research use capital budgeting analysis in which the parameters used are studied further using sensitivity analysis and probability analysis. From the results of the financial feasibility analysis of this slurry pump scenario, it shows that this project is financially feasible with an NPV value of IDR 16.227.951.215,26, with an IRR of 43,08%, a Payback Period of 1,6 years, a Discounted Payback Period of 1,77 years and a Profitability value Index 1,7. In addition, based on the Monte Carlo Simulation for probability analysis, it is found that the probability of this project failing is 0%. Therefore, it can be concluded from the results of the financial feasibility analysis, this project is recommended to be implemented.