Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia

Research Article

Financial Feasibility Study for A River Diversion Project to Optimize the Pit P Marginal Reserve as Part of PT PQR’s Implementing the Coal Conservation Aspect

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  • @INPROCEEDINGS{10.4108/eai.25-11-2021.2318845,
        author={Seno Alfi Syahrin and Ahmad Danu Prasetyo},
        title={Financial Feasibility Study for A River Diversion Project to Optimize the Pit P Marginal Reserve as Part of PT PQR’s Implementing the Coal Conservation Aspect},
        proceedings={Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICSST},
        year={2022},
        month={7},
        keywords={coal conservation; marginal reserve; modifying factor; monte carlo},
        doi={10.4108/eai.25-11-2021.2318845}
    }
    
  • Seno Alfi Syahrin
    Ahmad Danu Prasetyo
    Year: 2022
    Financial Feasibility Study for A River Diversion Project to Optimize the Pit P Marginal Reserve as Part of PT PQR’s Implementing the Coal Conservation Aspect
    ICSST
    EAI
    DOI: 10.4108/eai.25-11-2021.2318845
Seno Alfi Syahrin1,*, Ahmad Danu Prasetyo1
  • 1: Bandung Insitute Technology, Bandung
*Contact email: seno_alfi@sbm-itb.ac.id

Abstract

One part of the Good Mining Practices (GMP) application is related to the coal conservation aspect, in which mining companies are expected to promote optimal reserve conservation to ensure the mine's sustainability. It is estimated that the Pit P area contains 16.6 million tons of marginal reserve. The unmet modifying factor is the reserve beneath a major river. The river must be diverted in order to mine coal and maintain the environment. A capital budget analysis and a risk analysis technique were developed to determine the project's feasibility. The analysis shows that scenario 1 is financially viable, as demonstrated by its net present value of US$35.6 million and internal rate of return of 34.94 percent. It has a 61% chance of success, according to Monte Carlo simulations. More output results in the creation of companies’ profits, which eventually results in increased income for the state.