Open AccessFeasibility study of development of coal transport support infrastructure with conveyor system in coal mining industry
Author(s) -
Jhony,
Oei Fuk Jin
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1007/1/012142
Subject(s) - payback period , coal , truck , investment (military) , coal mining , engineering , waste management , belt conveyor , environmental science , mining engineering , production (economics) , economics , automotive engineering , mechanical engineering , politics , law , political science , macroeconomics
As a result of the significant decline in coal prices in 2014 and 2015, as many as 125 coal companies closed (source: kompas.com). The survived companies are required to make a cost down in order to survive. Electric conveyor as a hauling system replaces the dump truck hauling system. The case study was conducted at one of the coal companies in Central Kalimantan where the annual target of coal hauling is 7 million tons. This investment feasibility study was carried out by economic analysis for 15 years hauling and NPV of $ -101.604,769 was obtained, IRR of -4.69%, Payback Period for 16.37 years, B / C Ratio amounting to 0.827. The investment feasibility study was also carried out for 25 years hauling (to use up the remaining coal reserves) and an NPV of $ 373,723,630, an IRR of 52.12%, a Payback Period of 0.948 years, a B / C ratio of 1.639. This investment is said to be feasible if hauling is carried out for 25 years with a target of 7 million tons per year.