I. Introduction
1.1. Energy Consumption and Distribution
- Worldwide
- ASEAN
(Indonesia, Malaysia, Thailand, The Philippines)
- Indonesia
1.2. Mining Commodity Price
- Coal
- Gold
ASEAN Energy Distribution
Coal Price
Gold Price
II. Investment and Risk
2.1. Concession Owner Vs Contractor
a. Fully by concession owner
b. Sharing with contractor
- Rental
- Mining Contract
- Geological risk by the contractor
- Financial risk by the contractor
2.2. Contractor Vs Equipment Supplier
a. Cash
b. Leasing company or bank
c. Direct credit from equipment supplier
d. No DP, only monthly installment ?
e. Equipment owned by equipment
supplier, operated by the contractor ?
III. Mining Investment Policy and Strategy
3.1. What, Who and When?
a. Type of concession : KUD, KP, PKP2B
b. Mining stage activity ( see attachment for detail)
- Reconnaissance
- General survey
- Exploration
- Feasibility study and AMDAL
- Construction
- Exploitation and production
c. Who is the Operator ( see attachment of mining operator in Indonesia )
- Concession owner
- Mining contractor
MINING STAGE AND WHERE CONTRACTOR INVOLVE ?
CONCESSION LICENCE
Indonesian Coal Production 2003
d. Size or Scale of Production Capacity
- Small : KUD, below one million tons annual production
- Medium : KP, PKP2B with production capacity 1 million tons up to 5 million tons
- Big : PKP2B, KP with production capacity more than 5 million tons
e. Life of mine
- Short term : < 5 years
- Medium term : 5 – 10 years
- Long term : > 10 years
3.2. Technical specification requirement
a. Geological condition and geotechnical data: type of overburden (clay stone, sandstone, igneous rock etc), dip of seam, thickness, seismic velocity, logging data
b. Weather: rain, slippery, effective hours
c. Mine design :
- Accuracy: selective mining, general work (sloping, finishing, etc)
- Open or cut area, wide of pit
- Hauling distance
- Grade of access road
- Catchments area and dewatering
- Safety factor base on geotechnical data
- slope (overall and or single slope)
- Depth of pit
d. Production capacity
e. Equipment specification
- availability, utilization, productivity and safety
3.3. Cost :
- Operation cost: labor, consumable good, maintenance and others
- Depreciation
- Overhead
- etc
IV. Mining is Big
- Big in volume of business
- Big in business capital
- Big in Heavy Equipment
- Big in Risk