Proceedings of the 2nd International Conference on Industrial and Technology and Information Design, ICITID 2021, 30 August 2021, Yogyakarta, Indonesia

Research Article

Financial Risk Analysis on Coal Reserve Estimation

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  • @INPROCEEDINGS{10.4108/eai.30-8-2021.2311528,
        author={Hidayatullah  Sidiq and Faisol  Mukarrom},
        title={Financial Risk Analysis on Coal Reserve Estimation},
        proceedings={Proceedings of the 2nd International Conference on Industrial and Technology and Information Design, ICITID 2021, 30 August 2021, Yogyakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICITID},
        year={2021},
        month={10},
        keywords={modifying factors financial risk coal reserve estimation},
        doi={10.4108/eai.30-8-2021.2311528}
    }
    
  • Hidayatullah Sidiq
    Faisol Mukarrom
    Year: 2021
    Financial Risk Analysis on Coal Reserve Estimation
    ICITID
    EAI
    DOI: 10.4108/eai.30-8-2021.2311528
Hidayatullah Sidiq1,*, Faisol Mukarrom1
  • 1: Department of Mining Engineering, Institut Teknologi Nasional Yogyakarta, Indonesia
*Contact email: hidayatullah@itny.ac.id

Abstract

The economic feasibility is one of modifying factors that must be considered in the process of converting coal resources to coal reserves. Financial risk analysis is important to do on the application of economic modifying factors so that the correct declaration of coal reserves. The main factors that affect financially are changes in coal prices and mining costs. To resolve problem uncertainty financial risk used is IRR and sensitivity analysis methods. In this study, the discound factor used is 10% to obtain NPV 5.7 million, IRR 39%, and PBP 2.1 years with estimated coal reserves of 7.7 tons. Risk factors if there is a price decline of up to 3% more than that, the estimated coal reserves will be change.