Chapter Ix. Mine Site Infrastructures

CHAPTER IX.
MINE SITE INFRASTRUCTURES
9.1 Mine Site Infrastructures
Mine site infrastructures are supporting facilities of mining activity which are developed
around the mining area. Their establishment and placement are based on the condition
of workplace such as topography, physical characteristics and land mechanics, as well
as economic and security consideration.
Supporting facilities shall mean any means and infrastructures to be constructed in
supporting the operation of mining activity. Location of mining infrastructures will
require certain area of land to be utilized in placing required buildings. Based on their
function and type, mining infrastructures may be classified into:
 Office building, housing and public facilities
 Electricity and water utility building
 Mechanical utility building (workshop, warehouse, and laboratory)
 Mining operation supporting means and environmental handling
9.1.1 Office, Housing, and Public Facilities Buildings
9.1.1.1 Mine Administrative Office
Mine administrative office is part of mine site infrastructures to be utilized for activities
of planning, supervision and evaluation of mining operation. Engineering and space
function which are planned in the mine administrative office may be seen in Table 9.1
and Figure 9.1.
1
Table 9.1 Infrastructure Need
PARTICULARS UNIT QUANTITY SIZE TOTAL YEAR
PRICE (M2) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
SHOP & OFFICE 1,998,102 1,157,000 296,564 16,699 74,499 73,350 62,779 19,574 56,848 118,028 2,053 5,748 5,748 5,748 5,748 5,748 5,748
Warehouse 300 1 1,350 405,000 405,000
Explosives Ware House 400 1 200 80,000 80,000
Workshop 800 7 120 672,000 672,000
CULVERT 121,523 16,699 73,150 19,574 12,101
Pipe (HDPE @6 m/pc, steel 300 ; 6") 250 1 467,415 44,400 1,350 73,350 62,779 56,848 105,927 2,053 5,748 5,748 5,748 5,748 5,748 5,748
Field Offices 300 1 832 248,414 248,414
First Aid Room 150 1 25 3,750 3,750
COMPLEX BUILDING 3,640,790 1,234,894 729,208 645,019 659,717 322,359 - - - - - - - - - - -

Staff Ablution 300 1 1 340,134 305,888 10,378 9,319 9,347 4,509
Labor Ablution 250 1 1 2,809,080 582,930 674,730 596,700 610,470 298,350
Dining Room 200 1 100 165,500 20,000 44,100 39,000 39,900 19,500
Praying Place 8,000 1 1 8,000 8,000
Kitchen 150 1 20 3,000 3,000
Water Treatment 25,000 1 1 25,000 25,000
Power Supply 321 1 156 50,076 50,076
Guest House 300 1 100 30,000 30,000
Senior Staff Houses 300 1 150 45,000 45,000
Junior Staff Houses 300 1 300 90,000 90,000
Labor Base Camp (Temporary) 250 1 300 75,000 75,000
INFRASTRUCTURES & OTHERS 304,226,200 304,226,200 - - - - - - - - - - - - - - -

Stock Pile (64 ha)+ ROM di PORT 200,000 4 800,000 800,000
Weight Bridge (60 T) 100,000 1 100,000 100,000
Earth Bund Construction (8.000 x 2 x 1 m) 48,000 2 96,000 96,000
Barge Loader 10,000,000 6 60,000,000 60,000,000
Fuel Station 100,000 2 200,000 200,000
Settling Pond 2 unit (100 x 50 x 4 m) 75,000 2 150,000 150,000
CPP (500 TPH) 2,500,000 3 7,500,000 7,500,000
Road Construction PIT- STP (3 Km) 83,333 3 300,000 300,000
Road Construction PIT - Waste Dump (1.5 Km) 83,333 1.5 150,000 150,000
Road Construction STP - PORT (200 Km) 1,000,000 200 200,000,000 200,000,000
Exploration + Study + Permits 2,530,200 1 2,530,200 2,530,200
Land Compensation Hauling Road (200 Km x 60 m) 5,400,000 1 5,400,000 5,400,000
Land Compensation Minning Area (6.000 ha) 4,500 6,000 27,000,000 27,000,000
GRAND TOTAL 309,865,093 306,618,094 1,025,772 661,718 734,216 395,710 62,779 19,574 56,848 118,028 2,053 5,748 5,748 5,748 5,748 5,748 5,748
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Table 9.1 Infrastructure Need (continuation)
PARTICULARS YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
SHOP & OFFICE 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748
Warehouse
Explosives Ware House
Workshop
CULVERT
Pipe (HDPE @6 m/pc, steel 300 ; 6") 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748
Field Offices
First Aid Room
COMPLEX BUILDING - - - - - - - - - - - 49,594 - - -

Staff Ablution 694
Labor Ablution 45,900
Dining Room 3,000
Praying Place
Kitchen
Water Treatment
Power Supply
Guest House
Senior Staff Houses
Junior Staff Houses
Labor Base Camp (Temporary)
INFRASTRUCTURES & OTHERS - - - - - - - - - - - - - - -

Stock Pile (64 ha)+ ROM di PORT
Weight Bridge (60 T)
Earth Bund Construction (8.000 x 2 x 1 m)
Barge Loader
Fuel Station
Settling Pond 2 unit (100 x 50 x 4 m)
CPP (500 TPH)
Road Construction PIT- STP (3 Km)
Road Construction PIT - Waste Dump (1.5 Km)
Road Construction STP - PORT (200 Km)
Exploration + Study + Permits
Land Compensation Hauling Road (200 Km x 60 m)
Land Compensation Minning Area (6.000 ha)
GRAND TOTAL 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 55,342 5,748 5,748 5,748
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Table 9.2 Additional Infrastructure Need
PARTICULARS TOTAL YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
COMMUNICATION 200,000 20,000 20,000 20,000 20,000 20,000

OFFICE FACILITIES 820,000 10,000 10,000 100,000 100,000 100,000
OPERATION FACILITIES 802,000 1,000 1,000 100,000 100,000 100,000
PLANNING/SURVEY FACILITIES 1,000,000 100,000 100,000 100,000 100,000 100,000
BASE CAMP FACILITIES 820,000 10,000 10,000 100,000 100,000 100,000
WORKSHOP FACILITIES 810,000 5,000 5,000 100,000 100,000 100,000
FIRST AID FACILITIES 800,200 100 100 100,000 100,000 100,000
HOME BUILDING FACILITIES 820,000 10,000 10,000 100,000 100,000 100,000
LABORATORY 802,000 1,000 1,000 100,000 100,000 100,000
OTHERS 804,000 2,000 2,000 100,000 100,000 100,000
7,678,200 159,100 159,100 920,000 920,000 920,000
Table 9.2 Additional Infrastructure Need (continuation)

PARTICULARS YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
COMMUNICATION 20,000 20,000 20,000 20,000 20,000

OFFICE FACILITIES 100,000 100,000 100,000 100,000 100,000
OPERATION FACILITIES 100,000 100,000 100,000 100,000 100,000
PLANNING/SURVEY FACILITIES 100,000 100,000 100,000 100,000 100,000
BASE CAMP FACILITIES 100,000 100,000 100,000 100,000 100,000
WORKSHOP FACILITIES 100,000 100,000 100,000 100,000 100,000
FIRST AID FACILITIES 100,000 100,000 100,000 100,000 100,000
HOME BUILDING FACILITIES 100,000 100,000 100,000 100,000 100,000
LABORATORY 100,000 100,000 100,000 100,000 100,000
OTHERS 100,000 100,000 100,000 100,000 100,000
920,000 920,000 920,000 920,000 920,000
4
Figure 9.1 Mine Office
9.1.1.2 Employees Housing
Employee housing constitutes made available for employees and staffs in the land area
of approximately 5,000 m2 (located not far from the mining location). Each of these
buildings is in the area of 500 m2 consisting of 6 bedrooms, living room, guestroom,
bathroom and wash-basin (Figure 9.2).
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Figure 9.2 Employee Housing
9.1.1.3 Religious Service Building (Mosque)
Religious Service Building in the form of mosque is constructed on the land in the area
of 90 m2. This mosque building comprises praying room, keeper room, multipurpose
room, and ritual ablution room (Figure 9.3).
9.1.1.4 Eating Place Building
Eating place building is the room specifically provided as eating place for workers in
the level of manager and operator. It is located next to mine office building in the area
of 20 m x 24 m or 480m2 (Figure 9.4).
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Figure 9.3 Religious Service Building
Figure 9.4 Lunchroom Building
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9.1.1.5 Security Post Building
Security post building is constructed in each location deemed strategic and requires
security such as office area entrance, stockpile, explosive storehouse, warehouse and
workshop, mining intersection et cetera. Around strategic location, the land is fenced
with barbed wire in order to maintain its security. It is estimated that there are 10
security post building having the area of 3.5 m x 3.5m or 12.25m2 or total area of 122.5
m2, comprising watchman room and equipment room.
Figure 9.5 Security Post
9.1.1.6 Fuel Building
Fuel station is constructed in order to meet the fuel need for mining operation in the
mine location. Fuel station occupies the area of 50 m x 50 m or 2,500 m2 comprising
three fuel tanks in the capacity of 10,000 liters/tank (Figure 9.6). It is planned to
construct 2 fuel stations where the fuel is distributed by means of pipe into service room
that regulates fuel consumption.
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Figure 9.6 Fuel Station
9.1.2 Energy/Electricity and Water Utility Building
9.1.2.1 Power Plant Station
Power plant station building is planned in order to meet electrical energy need for some
purposes. This power plant station must be able to supply electrical energy for the
following interests:
 Office and religious service place
 Workshop and warehouse
 Water and fuel pump station
 Mine road and mine equipment
 Access to the work front of mining work
 Etc.
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Power plant station is constructed in some places as the operation place of generator set.
The area of each building is 5 m x 6 m or 80 m2 and use the building floor foundation
made of concrete.
Figure 9.7 Power Plant Station
9.1.2.2 Sanitary Water Processor
Sanitary water need for the mining is supplied by the sanitary water processing
installation that utilizes rainwater and underground water (artesian well). Water source
derives from rainwater that is accommodated in pond, water of artesian drilling well that
is sucked using pump. Rainwater is accommodated in the sedimentation pond,
processed and flowed to reservoir, subsequently pumped to water tank in order to be
distributed to the requiring divisions. Water tank is constructed in the height of 6 meters
so that the water may flow the requiring divisions in a manner of gravitation. This
sanitary water processing requires a land in the area of 100 m2 (Figure 9.8).
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9.1.3 Mechanical Utility Building
9.1.3.1 Mine Workshop
Workshop is an infrastructure to be utilized for mine equipments that require repair and
maintenance. Location of this building must not be far from the mining location so that
mining equipments may be immediately repaired. This building is also equipped with
workshop equipments. It is constructed from wood and using asbestos roof. The
planned land area for this workshop is approximately 2,500 m2 (Figure 9.9).
Figure 9.8 Sanitary Water Processing Installation
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Figure 9.9 Mine Workshop
9.1.3.2 Equipments Storehouse
This building is utilized as a place in storing spare parts of mine equipments. It is
located nearby workshop building location that is planned in the area of 2,000 m2.
9.1.3.3 Laboratory
This building is utilized as a place in examining and controlling the quality of coal
resulting from exploration and mining, controlling mine water et cetera. It is located
nearby the mine office that is planned in the area of 400 m2.
9.1.3.4 Explosive Storehouse
If the company intends to perform self-detonation, then it must provide an explosive
storehouse. Explosive storehouse is constructed for storing explosive and its equipments
to be used in detonation activity. This explosive storehouse is planned to be constructed
far from office location or public facilities, comprising two buildings in the area to be
adjusted to total explosives to be stored. The first building will be utilized for storing
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explosive and second building will be used for storing detonator and detonation
equipments. Area of required land is 300 m2.
9.2 Supporting Means of Mining Operation & Environmental Handling
9.2.1 Coal Stockpile
Stockpile the land utilized in accommodating the product of mining outcome. The
stockpile is planned to be constructed in the area of 64 hectares. For the purpose of this
stockpile location, then the land around the planned location must be first flattened by
way of stripping in order to obtain sufficient space. Water drainage is constructed
around the stockpile. The water is flowed into sedimentation pond or water waste
processing pond prior to flowing it to free water (river).
9.2.2 Waste Dump
Waste dump is the land to be utilized in stockpiling waste from development activity
and mining operation. The waste dump is planned to be constructed in the area of 1,916
Ha. For the purpose of dumping of this area, then the land around the planned location
will be first stripped in order to obtain adequate space. Water drainage is constructed
around dumping area. The water is flowed into sedimentation pond or water waste
processing pond prior to flowing it to free water.
9.2.3 Sedimentation Pond
Sedimentation pond is a pond that functions to sediment and process the mining water
waste prior to flow it to free water (river). This pond is planned to be constructed in
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some places that produce the mine water waste. The size will be adjusted to mine waste
water debit entering to and expelling from the pond.
9.2.4 Mine Road and Other Infrastructures
Mine road is the road utilized for mining operation, office-related interest, inter-division
relationship, marketing, access from outside mining location, as well as other public
mine supporting activities.
Based on need, road and other infrastructures will be constructed, such as:
1. Road construction, Pit – Stockpile, 3 km.
2. Road construction, Pit – Waste Dump, 1.5 km.
3. Road construction, Stockpile – Port, 200 km.
4. Constructing Overflow Drainage (8000x2x1m).
5. Constructing bridge between Stockpile – Port, approximately 20 bridges.
6. Weighing bridge, 1 unit.
7. Loading system to vessel, (equipped with supporting equipment).
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CHAPTER X. ENVIRONMENTAL, OCCUPATIONAL HEALTH AND SAFETY
(OHS) ANALYSIS
Report on the complete environmental analysis comprising the Environmental Impact
Analysis (AMDAL), Environmental Management Plan (RKL) and Environmental
Monitoring Plan (RPL) may be seen in the document of Environmental Impact Analysis
(AMDAL). The summary may be outlined as follows:
10.1 Environmental Management Plan (RKL)
Type of managed important impact include the components of geophysical-chemical,
biology, social, economy and culture as well as community health. Management is
performed on all stages of coal mining activity of PT. KARYA BUMI BARATAMA,
namely on the stage of preparation, operation, and post-operation. Based on the
environmental impact analysis, types of large and important impacts which expected to
arise and must be managed are as follows:
10.1.1 Preparatory Stage
A. Geophysical-chemical component
1. Air Quality
Environmental management efforts which are performed include as follows:
a. Routine watering in project area and mine road in order to minimize the
increasing dust concentration, especially during drought season.
b. Periodic maintenance for employed working equipments in order to
minimize the disposed gas concentration which are secreted during
operation.
15
c. Deceleration of vehicle speed in order to minimize flying dust, especially
during drought season.
d. Minimization of trees felling along demarcation of transportation road so
that the trees may function as filter and absorber of dust or gas deriving
from vehicles.
2. Noise
a. Working hour management by avoiding working hour during rest period of
local community.
b. Periodic maintenance of employed working equipments in order to minimize
noise concentration during operation of the equipments.
c. Utilization of proper operable mining equipments.
d. Installation of extenuator on the muffler of truck machine or other
equipment in order to reduce noise.
B. Biological Component (Flora and Fauna)
Environmental management efforts are performed by limiting, as efficient as
possible, the land to be cleared or, the land to be cleared is only the land that is
really utilized for construction of transportation road as well as by planting
quickly growing plants on the left and right sides along the transportation road.
C. Social, Economic and Cultural Components
1. Employment and Business Opportunity
Environmental management efforts are performed by placing priority for
surrounding community in order to participate in meeting the employment need
16
through the existence of coal mining activity by PT. KARYA BUMI
BARATAMA.
2. Culture
Environmental management efforts are performed by cooperating with Village
Apparatus, Muspika, as well as Local Government of Kabupaten Sarolangun and
Kabupaten Musi Rawas as well as Provincial Government, in maintaining and
conserving traditional values and in overcoming violation cases of local custom
around mining area.
3. Community Restlessness and Conflict Potency
Environmental management efforts are performed by having socialization or
social approach to surrounding community in relation to the existence of planned
coal mining by PT. KARYA BUMI BARATAMA and by clearing transparent
land and the selling value of land to be cleared must be appropriate to standard
and, must be based on amicable negotiation will all residents as the land owners,
as well as village apparatus or public figures.
D. Community Health Component
1. Environmental Sanitation and Disease Prevalence
Environmental management efforts are performed by implementing the following
program as one of company activities, namely:
 To maintain canal in the mining area so that the water remain flow
 To cover puddles in the mining area in order to prevent mosquito’s nest.
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 To cooperate with the Regency and Provincial Health Agency in an effort of
improving environmental sanitation in villages around the mining area
2. Health Facilities and Medical Staffs
Environmental management efforts are performed by implementing the following
program as one of forms of company’s care toward public health around the
mining location. Such program is performed by, as follows:
 To develop policlinic in the mining area
 To provide opportunity to community living around mining in order to obtain
health service in the mining’s policlinic
10.1.2 Mining Operation Stage
A. Geophysical-chemical Component
1. Microclimate
Environmental management efforts are performed by gradually managing the land
clearing and immediate perform reclamation after the land is completely cleared
for coal excavation, as well as reducing unnecessary land clearing, not felling
trees in demarcation of river or existing canals, and not burning the land.
2. Air Quality
Environmental management efforts are performed by:
a. Routine watering in the project area and mine road in order to reduce the
increasing dust concentration, especially during drought season.
b. Periodic maintenance of employed working equipments in order to
minimize the disposed gas concentration secreted during the operation of all
mining equipments.
18
c. Deceleration of vehicle speed in order to minimize flying dust, especially
during drought season.
d. Growing and maintaining trees that may function as filter and absorber of
dust or gas along the transportation road.
3. Noise
a. Periodic maintenance of employed working equipments in order to
minimize the noise concentration arising during operation of the equipments.
b. Installation of device exhaust in the machine muffler of transporting trucks
and other mining equipments to reduce noise.
c. Growing and maintaining of plants, especially the ones with wide canopies
in the green lane (road demarcation).
4. Geology
a. Mine pit slopes are sought to have secure slope slant in accordance with
geotechnical study.
b. Drainage of the mine slope is sought to be as proper as possible in order to
flow water from the slope.
c. In each scaffold, drainage is constructed in order to flow water from the
slope body in the scaffold and to flow water existing on the scaffold.
d. To limit the land to be cleared as efficient as possible, or the land to be
cleared will only be the land that is really utilized as the activity and
backfilling location, followed by reclamation and revegetation with quickly
growing plants, namely on each completion of one mining block.
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5. Land
a. Top soil and covering soil stockpiling are performed separately, yet it is still
around the mining pit, namely in order to facilitate its return to the pit when
the mining has been completed.
b. Top soil and covering water is stockpiled in concave or flat land, and grown
by covercrop, such as Crotalaria sp). Covercrop growing is also performed
in open lands.
c. Around the top soil and covering land stockpile, drainage and mud settling
pond are constructed. Drainage construction is intended for directing the
larian water and avoiding scratch of larian water from upper land.
d. Land fertility management is performed in improving the land
characteristics, such as top soil spread. Purpose and objective of this top soil
spread is to obtain better physical and chemical characteristics of the land.
Improvement of land pH is performed by providing lime or dolomite 1
ton/ha, NPK fertilizer in the quantity of 0.3 ton/ha.
e. Management of erosion and sedimentation improvement is in the following
manner:
- To regulate overburden stockpiling in such manner forming terrace.
Therefore, it possible to press the dirt as minimum as possible.
Processing field of this terrace is gown by woods such as albiza, acacia,
sungkai, etc.
- To construct the erosion and sedimentation observation post in the
mining area, that may be measure d and monitored periodically, namely
20
once a week , simultaneously with the recording and observation of
rainfall occurring in the mining area.
6. Water Quality
a. Physical and chemical water quality management is performed by
constructing:
 Perimeter drainage. This drainage will function to prevent water deriving
from outside the mine to enter the mine.
 Scaffold drainage. This drainage will function to flow the water existing
on the scaffold to the mine floor in order that there is no inundation that
may affect the stability of mine slope.
 Mine-Base Drainage. This drainage will function to accommodate
rainwater falling to the mine floor and water deriving from the drainage
on the scaffold into sump. Water from sump is subsequently pumped out
of the mine and flowed into the nearest river if it has met the specified
environmental quality standard.
 Such drainage may be in the form of triangle or trapezium in the depth of
0.5 – 1 meter, constructed by bulldozer or backhole.
 Mud settling pond is constructed for accommodating water from mine
and overflow from coal stockpile as well as waste dump is settling pond
comprising 2 compartments in the dimension of 100m x 60m x 4m and
100m x 50m x 4m. Typical settling pond for maintaining the parameter
of physical and chemical characteristics of water, may be seen in Figure
10.1.
21
 In case the water has low pH value (acidic) and contain potentially high
iron, and sulfate, then the water in the settling pond will be grown by
lime (CaCO3) for neutralizing the water pH in the settling pond will
depend on the volume and pH value of sediment water.
 In order to neutralize one liter water with pH of 4 – 6 (pH target = 7),
0.0000 5 – 0.005 gram lime is required or, for 1000 m3 water, 0.5 – 5 kg
is required (Parlyandto, D., 1991). Thus, water flowed to the river is
expected to have be appropriate to the water standard value as specified
in the Decree of State Minister of Environment Number 113 of 2003
concerning the Waste Water Quality Standard for Business and/or Coal
Mining Activity.
b. Other liquid waste resulted from the coal mining activity is used lubricating
oil. The coal mining activity will result in used lubricating oil in
significantly large quantity deriving from utilization of means of
transportation and heavy equipments (such as bulldozer, excavator,
backhole, etc.). In case this used lubricating oil is not properly handled, it
may contaminate the river surface water.
In observance of this problem, then prevention will be performed through
efforts as follows:
 To prevent of solar spill during discharge and fuel filling
 To construct overflow drainage around the stockpile location/fuel tank
and lubricating oil. Sump is constructed at end of the drainage equipped
with oil catcher.
 To provide used lubricating oil accommodator according to the need.
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 Coaling of billboard concerning the danger of oil contamination on the
water area, and warning not to dispose used lubricating oil to the land
and/or river.
 To provide waste destruction machine (senator).
23
Purified water
Leak water from
Mine and Coal
Stockpiling
Water
Figure 10.1 Typical Settling Pond
24
PT. KARYA BUMI BARATAMA Kajian
Manajemen Personalia dan Sumber Daya Manusia
c. Acid Mine (AM) will be managed as follows:
Acid mine is one of important issue of environment in the mining activity
that is, in its operation, related to discharge of material containing sulfide
mineral, such as in coal mining. Acid mine is water that is acid in nature
deriving from mining pit drainage, covering land, stockpile, or tailing.
Coal sample in laboratory indicate the sulfur content < 2%, most of which is
organic sulfur. Therefore, the potency of occurrence of Acid Mine is very
low.
In order to predict the potency of acid mine, geochemical characteristic
analysis must be performed for all types of stones that may be disclosed in
the mining or stockpiling activity. Result of the analysis may provide a
description on the types of stones potentially forming acid, potentially
neutralizing neutral acid and stone. This identification is very beneficial in
arranging the management strategy in preventing or handling the problem
relating to acid mine.
Minimizing the incidence of potential Mine Acid is as follows:
 Outside the mine under dry cover method
- Blending of potential acid stone with the stones that may neutralize
acid (alkaline in nature) or with neutral stones.
- Stockpiling of stones potentially forming acid with neutral stones.
The thickness of non-acid-forming layer is approximately 5 meters
and is formed in the maximum slant of 8%, subsequently layered by
soil of + 1 meter thick.
XI - 25
- In order to avoid the incidence of erosion to the stockpile due to
rainwater, compaction is performed by compactor.
 Inside the mine under dry cover method
- Acid-forming stones will be placed upon spreading the clay or non-
acid-forming material. Subsequently, on it, it is stockpiled by acid-
forming stones in order to achieve neutralization.
- Stockpiling scaffold is 5 meters and total slant may reach 25%. Thus,
infiltration and percolation may be expected in the stockpile cover to
approach zero.
The sketch of such dry cover method may be seen in Figure 10.2.
Revegetation
Top Soil
Neutral stones or
non-acid-forming
stones > 5 meter
Acid stone neutralization
Potentially acid-
forming stones
Basic stones
XI - 26
Figure 10.2 Dry Cover Method Sketch
7. Fire Potency
a) Gradual land clearing, which means that each stage has certain dimension.
b) Establishment of firemen team.
c) Preparation appropriate and effective fire extinguishers in controlling coal
and forest fire.
d) To construct control tower and fire post that is equipped with complete
facilities in every fire-prone point.
B. Biological Component
1. Flora and Fauna
(1) Land clearing that is performed for minimum required area only.
(2) In order that the company’s management may easily control the land
clearing, then the implementation must be in accordance with the specified
planning.
(3) To perform revegetation in open lands which are not utilized any longer
(post-mining).
(4) In the mining site:
 To grow trees in the mining site that is performed gradually in line with
reclamation activity. Fertilization is performed in order to maintain the
XI - 27
extent of trees fertility and to improve the nutrition content in the soil.
 Types of trees to be selected shall be local plants, especially the one with
high economic value.
 In order to obtain good result, growing method must be observed,
especially for matter relating to inter-tree growing interval because very
close or very distant growing will result in poor vegetation. Method to
be applied shall be lane method, namely: growing will be performed in
one lengthy lane in accordance with available area, while the trees
growing interval is 3 m x 4 m.
 In order to realize successful trees growing, then continuous
maintenance will be performed, such as by weeding, pest syringing and
replacement of dead seeds with the new ones. In order to ensure the
equilibrium of trees growing, self seeding may be performed for trees to
be used. In addition, the seeds to be grown are of guaranteed quality.
(5) Along Mine Road
In the open land along the mine road, revegetation will be performed for the
sake of environmental conservation (buffer zone), especially in controlling
the impact on the quality of surrounding air. Types of plants which are used
for revegetation in this area is equated to the type of plants used for
revegetation in the mining area. Revegetation in the area will be
implemented upon completing the mining road. If adequately good
vegetation is still found on the above area, then the vegetation will be
maintained not to be damaged in order to be utilized as buffer zone.
XI - 28
(6) To place wild animal hunting billboard in the mining area.
(7) To establish cooperation with Local Government in implementing the
animal preservation program existing in the mining area.
2. Water Biota
Environmental management efforts having been performed are similar to the
water quality management with the aim of avoiding contamination to waters such
as river. Owing to uncontaminated waters, the life of water biota will not be
annoyed.
1. Employment and Business Opportunities
Environmental management effort is performed by providing surrounding
community with priority in order to participate in meeting employment need
owing to existence of coal transportation activity.
2. Community restlessness and conflict potency
Environmental management effort is performed by having socialization or social
approach to surrounding community in relation to the coal waste management by
PT. KARYA BUMI BARATAMA and, having an approach to community
through public figures by prioritizing the principle of amicable negotiation.
10.1.3 Post-operation Stage
A. Geophysical Component
1. Microclimate
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Environmental management efforts having been performed are environmental
management system through troubled reclamation and rehabilitation. It is intended
for improving the troubled land into productive land in accordance with the post-
mining land exploitation. This post-mining land exploitation must be in
accordance with Detailed Layout Plan (DLP) of Sarolangun District and Musi
Rawas District or Provincial Layout Plan.
There are three types of rehabilitation works, namely:
Land maintenance and improvement. The troubled land due to clearing activity
and the lands having been rehabilitated, yet does not indicate the achievement of
rehabilitation standard require maintenance and improvement work.
Land Stabilization. Waste dump land or area that has not reached final profile
and is temporarily left for a period of 3 – 5 years will require temporary
stabilization in order to control or prevent the incidence of sedimentation. This
land stabilization will be achieved by growing the land-covering plants (legume)
which may quickly grow. The seeds are not grown in this land.
Final Rehabilitation. All lands that will not be troubled for more than 5 years
will require final rehabilitation. Revegetation of the lands leading to final
rehabilitation will be achieved by growing legume that may quickly grow and, on
the next stage, it will form forest ecosystem by gradually replanting local-species
forest trees. General requirement of each above type of rehabilitation work will be
outlined in the following Table 10.1.
Table 10.1 General Requirements of Rehabilitation Work Types
Type of Preparation Revegetation Specification
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Rehabilitation
Land maintenance Harrowing and contouring, To grow the species of rainforest, pioneer local
and improvement drainage may be required if and forest fruit plants @ 200 trees/ha
the land to be improved is Manual spread or using legume kernel hydro
bare and/or there is hard soil seeder or grass @ 200 kg seeds/ha. Hydro-
layer. seeding is good for difficult and hard area.
Land stabilization Harrowing and drainage Legume kernel hydro-seeding and grass @ 200
work.. kg kernel/ha. Utilization of NPK fertilizer
not using top soil (16,16,16) @ 250 kg/ha
Final rehabilitation Utilization of top soil, To grow local and non-local (if required) species
harrowing and drainage work pioneer and fruit plants @ 550 trees/ha
are required. To spread legume kernel and grass @ 100 kg/ha.
Provision of NPK @ fertilizer 30kg/ha
Minimum maintenance 3-4 times within the first
year upon planting and 1 – 2 times a year during
the second year of planting (fertilization,
maintenance and replacement of dead plants are
required)
To grow the species of rainforest upon the
existence of canopy (around 2-3 years of pioneer
plants growing) @ 100 trees per hectare.
Stockpiling system of top soil and covering land in the stockpiled pit may be seen in
Figure 10.3.
Transportation Coal Mining Top Soil and Land Clearing and Top Soil
Revegetation Rehabilitation
Covering Soil Excavation
Excavation
Top Soil
Rehabilitation
Progress
Direction Mining Progress
Direction
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Figure 10.3 Stockpiling of Top Soil and Covering Soil in the Stockpiled Pit Area
2. Land and Erosion
Environmental management efforts are performed by regulating the management
system as follows:
a. The land of covering soil stockpiling and former means and infrastructure
land, upon being flattened, will be revegetated with the plant appropriate to
the land condition and local climate, such as: Sengon (paraserianthes
falcataria), Sungkai (Peronema canescens), Meranti (Shorea sp.) or other
local plants which are adjusted to the land exploitation.
b. Steep slopes as former mining area which may not be reclaimed, are
transformed into slope or by making bench terraces, and planted by
covercrop plants or annual plants.
c. Flattening and formation of land surface in line with the topography of
surrounding land.
d. Re-spreading of top soil to the soil surface.
e. Top soil spread onto the land surface.
f. To grow legume in order to protect the top soil from erosion and to
minimize the growth of weeds or underbrush.
1. Flora and Fauna
Environmental management efforts having been performed include as follows:
a. Flora
1) Vegetation improvement or restoration.
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2) Redevelopment of forest ecosystem in accordance with the post-
mining land exploitation agreement or at least approaching the
original condition.
3) To improve or restore the land biota habitat.
4) To perform revegetation on post-mining open lands by the types of
trees with high economic value in observance of proper and correct
plants cultivation.
5) To monitor the development of vegetation, including maintaining and
replacing the dead one.
6) Revegetation of seeds of local forest trees species in order to reforest
the troubled area.
b. Fauna
(1) To place wild animal hunting prohibition billboard in the mining area.
(2) To establish cooperation with Local Government in implementing the wild
animal preservation program in the mining area.
2. Water Biota
Environmental management effort is similar to the flora and fauna because the
purpose of environmental management is to maintain the stability of abundance
and variety of water biota by means of reclamation and rehabilitation of former
mining area.
Principally, when the mining operation of PT. KARYA BUMI BARATAMA
has been completed, mining facilities and infrastructures existing in the mining
XI - 33
area will be disassembled, cleaned, removed and reclaimed/ rehabilitated.
Cleaning of former installation or building location will be performed in order to
avoid environmental contamination, either to surface water and soil water or to the
land as well as to maintain the land stability in the former installation area. Former
installation land as well as mining means and infrastructures will be flattened and
provided with top soil and revegetated.
Items which are no longer usable or categorized as waste will be managed
(stockpiled or processed) in the location or delivered outside according to the
existing type of waste and in accordance with the standard procedure having been
specified in the government regulation.
Environmental management efforts are performed by means of socialization or
social approach to surrounding community owing to the activities of dismantling,
removal, and reutilization of building and mining installation as well as
infrastructures, reclamation and rehabilitation of troubled area, severance of
workers and assignment to other sector, as well as environmental monitoring and
rehabilitation of post-mining operation and returning the post-mining land to the
government, as well as having an approach to community through public figures
by prioritizing the principle of amicable negotiation.
10.2 Environmental Monitoring Plan (RPL)
Types of important impacts which are monitor include the components of geophysical-
chemical, biology, social, economy and culture as well as public health. Types of large
and important impacts allegedly to arise and must be monitored are as follows:
XI - 34
10.2.1 Preparatory Stage
1. Air Quality
Ambient air quality testing method for parameter of Particulate Matter (PM10 and
PM2.5) using gravimetric under beta-continuous ray radiometry system
measurement, SO2 by applying Pararosanilin Method, NO2 parameter by applying
Saltzman Method. Pb and silica content is analyzed using AAS. Dust content
testing by fall dust or dust collector.
Result of ambient air quality testing is analyzed by comparing it with the ambient
air quality standard as specified in the Government Regulation Number 41 of
1999 concerning Air Pollution Control, subsequently to determine the
environmental quality scale, then the result of ambient air measurement is
converted into the form of Air Polluter Standard Index.
2. Noise
Noise testing is conducted by applying the Integrated Sound Level Meter, while
noise data is compared with the Decree of State Minister of Environment Number
Kep-48/MENLH/1996 concerning Noise Level Standard.
3. Land Use
Collection of land exploitation data and type of land is conducted through
secondary data in the form of Land Use map and Land System map issued by the
authorized agency.
Data analysis of land use and land type is conducted using the mapping software,
XI - 35
such as ArcView or ArcGIS. Owing to the support of this software, we may
identify the land use in the study location as well as land system of the coal
mining location of PT. KARYA BUMI BARATAMA. Data of land cover
condition is used as reference in determining the constant of land cover factor in
the erosion calculation.
1. Flora
Collection of vegetation data will be performed, either directly or through
investigation of secondary data on some samples involving the types of vegetation
existing in the study location. In order to obtain information or data from all
populations, it will be performed by taking random or limited samples. Method
applied in this investigation is quadrate method in the width of 20 m that is placed
by cutting the land contour. Observation is performed in each growth stratum
(seeding, stake, pole and tree) by recording the type of total individual.
Based on data resulting from vegetation measurement, then we may identify the
closeness of each type, frequency and domination as well as INP of each type.
2. Fauna
Collection of primary data will be performed by direct field observation in order
to identify the type of wild animal spread. The wild animals to be observed are
mammals, birds, reptiles, amphibians, and insects. For mammals, other than direct
meeting, it will be observed based on sign or trace it leave, while primate is
XI - 36
identified from its sound. Result of observation is stated in individual unit per area.
Direct observation and interviews with community surrounding the mine location
is determined through random sampling method. Interview is conducted by
spreading structured questionnaires supported by depth interview. Data analysis is
performed quantitatively and qualitatively.
D. Public Health Component
Direct observation and interviews with community surrounding the mine location
is determined through random sampling method.. Interview is conducted by
spreading structured questionnaires supported by depth interview. Data analysis is
performed quantitatively and qualitatively.
10.2.2 Mining Operation Stage
1. Microclimate
Data and information on the climate in the study area are collected through
secondary data and literature from climatology station in the planned mining
location and area nearest to the project location.
Rainfall in each location will be presented in the form of highest and lowest
average in one year period. Air temperature and humidity will be presented in
annual average as well as minimum and maximum value during the recording
year.
XI - 37
Air temperature in Indonesia during one year is relatively permanent, although
rain intensity will vary according to season. Meanwhile, climate classification will
be determined based of rainfall data.
Some approaches or methods may be applied in determining the types of climates
in one area. In Indonesia, the rain failing in the same month will vary from one
area to the other ones. Some methods usually applied in determining climate in
Indonesia are Schmidt & Fergusson, Koppen and Oldeman methods.
2. Air Quality
Method applied for ambient air quality testing for Particulate Matter (PM10 and
pm2.5) parameter is gravimetry under beta-continuous ray radiometry system
measurement, SO2 by applying Pararosanilin Method, NO2 parameter by applying
Saltzman Method. Pb and silica content are analyzed using AAS. Dust content
testing is performed by fall dust or dust collector.
Result of ambient air quality testing is analyzed by comparing it with the ambient
air quality standard as specified in the Government Regulation Number 41 of
1999 concerning Air Pollution Control, subsequently to determine the
environmental quality scale, and then the result of ambient air measurement is
converted into the form of Air Polluter Standard Index.
3. Noise
Noise testing is conducted by applying the Integrated Sound Level Meter, while
noise data is compared with the Decree of State Minister of Environment Number
Kep-48/MENLH/1996 concerning Noise Level Standard.
XI - 38
4. Geology
Collection of land morphological data and geological formation as well as its
spread is performed through secondary data in the form of geological map and
topographical map issued from authorized agency and combined with
topographical resulting from field survey conducted by PT. KARYA BUMI
BARATAMA.
The data analysis of geological formations and land morphology using mapping
software such as ArcView or ArcGIS. Owing to support of this software, we may
identify the area of each geological formation and morphology existing in the
mining project border. For morphological data in the form of spread and area of
each slope level in the study location is applied in determining the class of land
slope for erosion calculation.
5. Land
Land sampling procedure is as follows:
1) Making land profile in certain points.
2) Drilling until the depth of less than 120 cm or until compact layer, contact
litic, paralytic, for solum depth measurement or effective land depth.
3) Untroubled land sampling using sample ring. For each plot, 2 – 3 ring
samples are taken.
4) Troubled land sampling compositely in the quantity of + 1 kg for specifying
the land chemical characteristic.
5) The two above land sampling are performed in two depths, namely 0 – 30
XI - 39
cm and 30 – 60 cm.
6) Land structure is directly specified in field by taking the land chunk in the
size of + 10 cm3, subsequently pressed by finger in order to obtain the land
aggregates. Based on these aggregates, the shape, size and structure
development are determined.
6. Water Quality
Sampling shall refer to SNI 06-2421-1991 concerning Sampling Guidance for
Water Quality Testing. Total sampling points is determined upon performing the
river flow debit measurement. Total sampling points for river with 0-15
m3/second debit are two (2) points, 15-30 m3/second debits are four (4) points and
more than 30 m3/second debits are six (6) points. Sampling is performed in a
manner of place and time composite, namely water sample from some sampling
points is taken with the same volume, subsequently mixed evenly in one container
in order to be subsequently picked out in the quantity of + two (2) liters.
Subsequently, samples are preserved using H2SO4 and HNO3 which are adjusted
to their parameter. To guarantee the quality of QA sampling, blank sample in the
form of equipment and container will be used in each of 1 (one) unit to all
locations. Such blank sample will be treated as ordinary sample. Mine acid testing
is performed under Geochemical Characteristic Analysis method.
Data resulting from laboratory testing is compared with water quality standard
class II as contained in Appendix I of Government Regulation Number 82 of 2001
concerning Water Quality Management and Water Pollution Control. In order to
convert the outcome of river water quality testing into Environmental Quality
XI - 40
Scale, then the outcome of river water quality testing will be converted in the form
of Pollution Index (PI). The purpose of Pollution Index (PI) is to fully describe the
quality of river water existing in the study location. Calculation procedure shall
refer to the Decree of State Minister of Environment Number 115 of 2003
concerning Guidance of Water Quality Status Determination.
1. Flora and Fauna
investigation of secondary data in some samples involving types of vegetation
existing in the study location. Obtaining information or data from all populations
will be done by taking small portion or limited samples. The applied method is
quadrate method in the width of 20 m that is positioned intersecting the land
contour. Collection of primary data is performed by means of field direct
observation in order to identify the types of wild animal spread. The observed
wild animals are mammals, birds, reptiles, amphibians, and insects. For mammals,
other than direct meeting, it will be observed based on the left sign or trace, while
the primate is identified from its sound. Outcome of observation is stated in
individual unit per area.
2. Water Biota
Macro benthos sampling is performed by means of taking basis water substrate by
Grab Sampler. Plankton sample is preserved by Lugol solution (1:100) and
makrozoobenthos taken and inserted into black plastic bag. Upon filtering and
identifying, benthos organism is preserved by 10% formalin. Identification of
XI - 41
Plankton by some literatures of Davis (1955), Nedham and Nedham (1963),
Mizuno (1964) and Prescott (1970), Edmonsond (1959) and Pennack (1978)
guidance is specifically used for benthos.
Types of nekton or fish which are found in river are collected from catch by
residents and, residents living around the mining area are investigated and
interviewed and literature study is conducted. Fish type identification, according
to Saanin (1984), Kottelat, et al. (1993). Some mathematical equations will be
applied in analyzing data.
C. Social, Economic and Cultural Component
Direct observation and interview are conducted with community living around the
mining location, the determination of which is by random sampling method.
Interview is conducted by spreading structured questionnaires and supported by
depth interview. Data analysis is performed quantitatively and qualitatively.
D. Accident Potency Component
To conduct direct observation and interview with community living around the
mining location that is determined through random sampling method. Interview is
conducted by spreading structured questionnaires and supported by depth
interview. Data analysis is performed quantitatively and qualitatively.
10.2.3 Post-operation Stage
1. Microclimate
Data and information on the climate in the study area are collected through
XI - 42
secondary data and literature from climatology station in the planned mining
location and area nearest to the project location.
Rainfall in each location will be presented in the form of highest and lowest
average in one year period. Air temperature and humidity will be presented in
annual average as well as minimum and maximum value during the recording
year.
Air temperature in Indonesia during one year is relatively permanent, although
rain intensity will vary according to season. Meanwhile, climate classification will
be determined based of rainfall data.
Some approaches or methods may be applied in determining the types of climates
in one area. In Indonesia, the rain failing in the same month will vary from one
area to the other ones. Some methods usually applied in determining climate in
Indonesia are Schmidt & Fergusson, Koppen and Oldeman methods.
2. Land and Erosion
Land sampling procedure is as follows:
1) Making land profile in certain points.
2) Drilling until the depth of less than 120 cm or until compact layer, contact
litic, paralytic, for solum depth measurement or effective land depth.
3) Untroubled land sampling using sample ring. For each plot, 2 – 3 ring
samples are taken.
4) Troubled land sampling compositely in the quantity of + 1 kg for specifying
the land chemical characteristic.
XI - 43
5) The two above land sampling are performed in two depths, namely 0 – 30
cm and 30 – 60 cm.
6) Land structure is directly specified in field by taking the land chunk in the
size of + 10 cm3, subsequently pressed by finger in order to obtain the land
aggregates. Based on these aggregates, the shape, size and structure
development are determined.
Outcome of physical and chemical characteristics testing of the land will be
subsequently converted into the environmental quality Scale. The scale is made
based on criteria of Center for Land and Agroclimate Survey, Ministry of
Agriculture (1983).
Measurement of land infiltration level is performed using an instrument called
“Double Ring Infiltrometer” in the diameter of 5 inches inside, 10 inches external
diameter of 40 cm high. Field infiltration measurement is performed by recording
the decrease of water surface in the Ring in every several minutes in order to
obtain correlation between water surface decrease and required period. Capacity
of land infiltration will be calculated from established chart.
For parameter, erosion is monitored under the following method: data of rainfall
during 10 years are obtained from climatology station in the nearest planned
mining area, data of slope level spread are obtained from interpretation of slope
map, while data of land physical and chemical characteristics will be tested in
laboratory. Erosion analysis in the study location is performed by applying a
method developed by Wischmeier and Smith (1978), called the Universal Soil
Loss Equation (USLE). The applied equation used the physical parameter and
XI - 44
land management that affect the erosion speed into 6 main parameters.
1. Flora and Fauna
investigation of secondary data on some samples involving the types of vegetation
existing in the study location. In order to obtain information or data from all
populations, it will be performed by taking random or limited samples. Method
applied in this investigation is quadrate method in the width of 20 m that is placed
by cutting the land contour. Observation is performed in each growth stratum
(seeding, stake, pole and tree) by recording the type of total individual. Based on
data resulting from vegetation measurement, then we will identify the closeness of
each type, frequency and domination as well as INP of each type.
Collection of primary data will be performed by direct field observation in order
to identify the type of wild animal spread. The wild animals to be observed are
mammals, birds, reptiles, amphibians, and insects. For mammals, other than direct
meeting, it will be observed based on sign or trace they leave, while primate is
identified from its sound. Result of observation is stated in individual unit per area.
2. Water Biota
Macro benthos sampling is performed by means of taking basis water substrate by
Grab Sampler. Plankton sample is preserved by Lugol solution (1:100) and
makrozoobenthos taken and inserted into black plastic bag. Upon filtering and
XI - 45
identifying, benthos organism is preserved by 10% formalin. Plankton
identification by literature of some Davis’s literatures (1955), Nedham and
Nedham (1963), Mizuno (1964) and Prescott (1970), Edmonsond (1959) and
Pennack (1978) guidance is specifically used for benthos.
Types of nekton or fish which are found in river are collected from catch by
residents and, residents living around the mining area are investigated and
interviewed and literature study is conducted. Fish type identification, according
to Saanin (1984), Kottelat, et al. (1993). Some mathematical equations will be
applied in analyzing data.
C. Social, Economic and Cultural Component
Direct observation and interview are conducted with community living around the
mining location, the determination of which is by random sampling method.
Interview is conducted by spreading structured questionnaires and supported by
depth interview. Data analysis is performed quantitatively and qualitatively.
10.3 Occupation Health and Safety (OHS)
Occupational Health and Safety (OHS) analysis shall including OHS handling
organization, OHS equipments, and OHS implementation measures in mining activity.
10.3.1 OHS Handling Organization
OHS handling is the responsibility of OHS Section Head under OHS and Environment
Division Head that is directly report to the Head of Engineering Division (see
(Organization Chart in Chapter XI).
XI - 46
10.3.2 Equipments
Occupational Health and Safety equipments to be made available in various locations of
coal mining, stockpiling, transportation and loading are as contained in Table 10.2.
Table 10.2 Occupational Health and Safety Equipments
No. In location of Occupational Health and Safety Equipments
1 Mine a. Safety Helmet
b. Safety shoes
c. Eyeglasses
d. Leather gloves
e. Dust masker + earplug
f. Reflector vest
g. Fire extinguisher and First Aid Equipments in each vehicle
transporting personnel and mining equipments.
h. Red flag (2 m high) for vehicle transporting personnel
i. Speed Limit Signboard for dump truck 40 tons ≤ 40 km/hour and
personnel vehicle ≤ 60 km/hour
2 Workshop a. Safety Helmet
b. Safety Shoes
c. Leather gloves
d. Safety eyeglasses
e. Fire extinguisher
f. First Aid Equipments
g. Used lubricating oil accommodator
h. Used iron accommodator, used spare parts accommodator
i. Spilled oil cleaner
3 Spare parts warehouse a. Safety Helmet
b. Safety Shoes
XI - 47
c. Leather gloves
d. Safety eyeglasses
e. Fire extinguisher
4 Transportation road from a. Safety Helmet
mine to stockpile/ b. Safety Shoes
washing installation c. Leather gloves
d. Eyeglasses
e. Dust masker
f. Speed limit signboard, dump truck 40 ton ≤ 40 km/hour and
personnel vehicle ≤ 60 km/hour
5 Conveyor belt lane a. Conveyor belt cover
b. Warning signboard
c. Safety fence
d. Emergency cable to disconnected the motor circuit along the belt
conveyor.
e. Illumination light along conveyor belt in certain interval
f. Buoy
g. Fire extinguisher
6 Port a. Safety Helmet
b. Safety Shoes
c. Leather gloves
d. Dust masker + earplug
10.3.3 Mining OHS Implementation Measures
Measures taken in implementing the Mining OHS is as displayed in Table 10.3.
In all mining activities, analysis and measures of Occupational Health and Safety must
XI - 48
be observed. One of them is relating to activity in mine slope that may be generally
outlined as follows: For activity in the mine slope, OHS factor is dominantly related to
the mine slope stability. Therefore, the following matters must be observed.
a. Construction of slope geometry according to the recommended rule and
geotechnical design.
b. Safety berm construction in the ramp.
c. To perform further monitoring and analysis to the mine slope during mining
activity (geological structure potentially causing erosion must be measured and
analyzed. Moreover, monitoring must be performed on the slope movement,
especially in the area with main geological structure).
d. To perform routine slope maintenance, such as by cleaning the stone collapse on
the berm and ramp.
e. Water drainage maintenance.
f. Illumination of warning signboard on sensitive slope edge, especially on the mine
road.
Table 10.3
Measures Taken in Implementing the Mining OHS
No. Activities Remarks
1 Security Patrol a. Survey/inspection in order to anticipate any deficiency

and insecure condition.
b. To take preventive measures by stopping and warning

and provide suggestion in the event of any matter
conflicting with the OHS rules.
c. To submit oral/written report to the supervisor of rule
XI - 49
violator
d. Truck speed limit is 40 ton < 40 km/hour and personnel

vehicle < 60 km/hour
2 Security Inspection a. Checking condition of fire extinguisher, making

inventory, and refurnishing, if required
b. Checking condition of transportation facilities
c. Checking condition of workshop facilities
d. Checking condition and arrangement of warehouse
e. Checking condition and arrangement of main camp and

work location
3 Discussion on safety a. Discussion on safety matter on every hour

matter b. Morning discussion, providing assistance, and
monitoring the realization of the morning discussion
4 Safety Campaign a. Prioritizing the safety on each level of work under

personal approach system, providing instruction, and
distribute slogan
b. Safety contest evaluation
5 Security Protector a. Inventory of self prevention
b. Completing insufficiency
c. Monitoring the usage
d. Checking and completing the equipment safety protector
e. Checking and completing the signboard
6 Operator Selection a. Checking the type of equipment
7 Safety report a. Accident report
b. Monthly report
c. Training report
XI - 50
10.3.4 Occupational Health and Safety Guidance
OHS application in the company may not be separated from legal basis of OHS
application itself. This legal basis is intended for providing a clear ground concerning
what rule and how to apply the OHS.
Legal sources of OHS application are as follows:
 Article 3 Paragraph 1 Law No. 1 of 1970 concerning Occupational Health and Safety,
including:
- To prevent and minimize accident;
- To prevent, minimize, and extinguish fire;
- To prevent and minimize danger of detonation;
- To provide opportunity or way of escape in the event of fire or any other
dangerous incident;
- To provide aid on accident;
- To provide self-protection equipments to the workers;
- To prevent and control the incidence or distribute temperature, humidity, dust, dirt,
smoke, vapor, gas, wind blow, weather, ray or radiation, sound and tremor;
- To prevent and control the incidence of work-related disease, either physically or
psychologically, poisoning, infection, and contagion;
- To obtain sufficient and appropriate illumination;
- To obtain good temperature and humidity;
- To obtain sufficient air freshness;
XI - 51
- To maintain sanitation, healthiness, and orderliness;
- To obtain harmony among workers, work equipments, environment, working
method and process;
- To secure and facilitate transportation of persons, animals, plants or shafts;
- To secure and maintain any type of building;
- To secure and facilitate loading and unloading works, goods treatment and
storage;
- To prevent dangerous electric shock
- To adjust and perfect the security of any dangerous work with potentially high
accident risk.
 Decree of Minister of Mining and Energy No. 555.K/26/M.PE/1995 concerning
Occupational Health and Safety for General Mining
In each mining activity, in consideration of total workers and type or extent of work, the
Chief Executive of Mine Inspection may oblige the businessman to establish an
organization unit in order to handle the Occupational Health and Safety under
supervision of the Head of Mine Engineering.
The Occupational Health and Safety Division has responsibilities as follows:
 To collect data and record the detail of any harmful accident or incident, incidents
prior to any accident, causes of accident, analyzing accidents and accident
prevention;
 To collect data on areas and activities requiring stricter supervision with the aim of
providing suggestion to the Head of Mine Engineering concerning mining procedure
XI - 52
or work procedure, mining equipments and utilization of detectors as well as self-
protection equipments;
 To provide information and direction concerning the Occupational Health and Safety
to all mining workers by conducting meetings, lectures, discussions, films,
publications, et cetera;
 If necessary, to establish and train members of Mine Saving Team;
 To arrange accident statistic
 To evaluate the Occupational Health and Safety
The Occupational Health and Safety (OHS) is an essential matter that must be observed
by PT. Karya Bumi Baratama in managing the coal mining operation that is believed to
be able to improve productivity and has significant benefits to workers.
In order to maintain the employee’s occupational health and safety, the company shall
establish a standard operating procedure for the mining operational activity. This
standard operational procedure shall be conducted to each worker in order to maintain
the safety of workers and to prevent any unexpected incidence of work-related accident.
10.3.5 OHS Activity Program Plan
In order to complement the duties as stipulated in the Occupational Health and Safety
program plan, in its implementation, PT. Karya Bumi Baratama shall establish the work
committee in each structural level with the following duties:
 To regularly and jointly inspect any aspect of Occupational Health and Safety and
any relevant problem having been found in the mining area and propose any action
required in order to overcome such problem;
XI - 53
 To regulate the necessary integrated inspection to work sites in the mining area in
performing its functions.
The planned programs relating to Occupational Health and Safety to be applied in PT.
Karya Bumi Baratama for new and old workers are as follows:
a. Education and Training
 The Head of Mine Engineering must conduct education and training for new
workers and supervisors which are required in facing any danger and annual
refreshing training or other education and training established by the Chief
Executive of Mine Inspection.
Material of the education and training program is comprehension on duties of a
mine worker, authorities and responsibilities of a supervisor, introduction to
work environment, self-saving plan and rescue in emergency, fire alarm and fire
extinguishment, health and safety aspect of the job to be assigned, identification
of danger and how to avoid it, first aid for accident, as well as protective
measures. Moreover, there is an additional subject, namely the safe mining
method, maintenance and utilization of mine lights, basic knowledge on
ventilation, regulation on supporting and basic operation of supporting,
evacuation method in mine during emergency, utilization of self-saving
equipments, dangers and detection of combustible and toxic gases.
 Head of Mine Engineering may perform by itself or in cooperation with
governmental agency or other official agencies, which are adjusted to the
activity and type of work on the mining business operation.
 Any performance of educational and training activity must be first approved by
XI - 54
the Chief Executive of Mine Inspection.
b. Medical Checkup
 Mine workers shall be entitled to obtain medical checkup as the liability of the
company;
 Mine workers must periodically undergo medical checkup (complete checkup)
by an authorized physician;
 Underground mine workers must undergo medical checkup at least twice a year;
 Mine workers who are employed in any place which may be harmful to the lung
must undergo special medical checkup;
 Frequency of medical checkup for mine workers who deal with harmful material
by an authorized physician shall be performed based on the rules specified by
the Chief Executive of Mine Inspection.
c. Implementation of Occupational Health and Safety in Mining Area
 To conduct campaign on the mine-related Occupational Health and Safety and
socialization or safety talk concerning routine utilization of safety equipments
for workers that is intended for embedding the awareness of workers so that they
may work safely and properly and realize the importance of occupational safety
in carrying out daily duties in their workplace;
 To provide the Occupational Health and Safety tools, such as first aid box,
safety sign, fire extinguisher, rotary lamp, safety cone, self-protection
equipments (such as gloves, safety helmet, masker, safety glasses, leather safety
XI - 55
shoes, rubber safety shoes, reflector vest, raincoat, etc.), internal safety training;
 To install equipment for fire danger warning.To install early equipments for fire
danger protection.
 Supervision on the discipline of workers in using self-protection equipments,
vehicle speed in the mining area as specified by the safety division, traffic signs
in the mining area;
 Installation of safety fence in the location around mine area, either the active
ones or the ones having been abandoned and may cause danger;
 Maintenance of access to each workplace in mining activity;
 To engage workers in health insurance institution
10.4 Community Development Program
PT Karya Bumi Baratama shall, in accordance with applicable rules, apply the
community development program with the aim of improving the community capability
in the mining area in order to achieve a better socioeconomic and cultural condition
compared with the condition prior to the existence of development activity. Owing to
the existence of community development program, community is expected to be more
independent with better life quality and welfare.
With regard to the above matter, then PT Karya Bumi Baratama plan to carry out the
Community Development Program in reference to three main characters, namely:
- Community Based,
- Local Resources Based;
- Sustainable.
XI - 56
Two targets to be achieved, namely: community capacity target and welfare target. The
first target, namely community capacity will be achieved through an effort of
empowerment so that the community may participate in the production process or
supporting institution in the production process, equity by not differentiate the status
and expertise, security, sustainability, and cooperation, all of which run simultaneously.
The implemented programs are as follows:
- Community relationship, involving the aspects of education, health, religion, social
and culture, sports, public means and facilities.
- Community development, involving employment of local human resources, skill
potency empowerment and community means, independence, procurement of means
and infrastructures in business program.
Expected impact:
- Improved appreciation by community on the company;
- Realization of conducive atmosphere in order to improve work intensity and
continuity of company operation.
- To direct community in running business and entrepreneur activity in order to
establish independent community.
XI - 57
CHAPTER XI. LABOR AND ORGANIZATION ANALYSIS
Labor and organization analysis is focused on labor need and organization structure in
order to be able to perform the mining activity in accordance with design and planning
having been made.
11.1 Labor Need
Labor need calculation is arranged based on coal mining design and planning with a
series of activities until reaching the location of selling port and for a period of mine age,
namely 30 years. Total labor required from year to year and total peak need may be seen
in detail in Tables 11.1 through 11.5.
11.2 Organization
Organization structure required in carrying out this mining plan must include the
following functions.
1) General Manager (Project Manager), simultaneously holds the position as Head of
Engineering
2) Deputy General Manager (Deputy Project Manager), simultaneously holds the
position as Deputy Head of Engineering
3) Engineering Division Head
4) Production Division Head
XI - 58
5) Plant Head
6) Finance, Accounting, and Tax Head (FAT Head)
7) General and Human Resources Division Head (GHRD Head)
8) OHS & Environment Division Head (OHS&E Head)
9) CPP Division Head
Organization chart for this Sarolangun coal mining plan is schematically as illustrated in
Figure 11.1.
XI - 59
PT. KARYA BUMI BARATAMA Kajian Manajemen Personalia dan Sumber Daya Manusia
Table 11.1
Detail of Total Workers (Part 1)
DESCRIPTION Peak YEAR

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
I. SENIOR STAFF
1. Project Manager 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2. Deputy PM 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
3. Engineering Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
4. Production Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
5. Plant Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
6. FAT Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
7. HRGA Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
8. SHE Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Sub Total I 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
II. OPERATION
1. Engineer Section
Head+Crusher+Conveying+Maintanance+ad
min+Loading Convey 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7
2. Production Section Head 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
3. Group Leader +Crue CPP 152 55 85 112 139 152 142 142 142 142 142 142 142 142 142 142 142 142 142 142 136 136 136 136 136 136 136 136 138 138 138
4. Operators 1,842 389 838 1,236 1,643 1,842 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,603 1,603 1,603 1,603 1,603 1,603 1,603 1,603 1,634 1,634 1,634
Sub Total II 2,004 454 933 1,358 1,792 2,004 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,835 1,749 1,749 1,749 1,749 1,749 1,749 1,749 1,749 1,782 1,782 1,782
III. DRILLING & BLASTING

1. Blasting Foreman 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2. Licensed Blaster
3. Drillers 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
4. Drill Helpers 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
5. Explosives Helper 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9
Sub Total III 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
60
Table 11.1
Detail of Total Workers (Part 2)
DESCRIPTION Peak YEAR

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
IV. SURVEY
1. Chief Surveyor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2. Surveyor 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
I 3. Draftsman 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Sub Total IV 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
V. MECHANICAL
1. Planat Section Head 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
2. Plant Group Leader 19 4 9 13 17 19 17 17 17 17 17 17 17 17 17 17 17 17 17 17 16 16 16 16 16 16 16 16 17 17 17
3. Mechanic 151 32 69 101 134 151 138 138 138 138 138 138 138 138 138 138 138 138 138 138 131 131 131 131 131 131 131 131 134 134 134
4. Assistant Mechanic/Drivers
5. Welder 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
6. Autoelectricians 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
7. Fuelmen 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
8. Tiremen 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
9. Helper 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6
Sub Total V 191 58 99 136 173 191 177 177 177 177 177 177 177 177 177 177 177 177 177 177 169 169 169 169 169 169 169 169 172 172 172
VI. WAREHOUSE
1. Logistic Section Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
2. Purchasing Supervisor
3. Storemen 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
4. Tool Keeper 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
5. Clerk 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
6. Laborer 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
7. Purchasing Labor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Sub Total VI 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14
VII. ADMINISTRATION
1. Finance + Accounting Tax Section He 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2. Personnel Section Head 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
3. Secretary 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
4. Clerk & Security 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10
5. Office Boy & Drivers 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8
Sub Total VII 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22 22
GRAND TOTAL 2,265 581 1,103 1,564 2,035 2,265 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 1,989 1,989 1,989 1,989 1,989 1,989 1,989 1,989 2,024 2,024 2,024
61
Table 11.1 Detail of Total Workers (Part 3)
YEAR
PEAK 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
1. Yunior & Senior Staff 197 85 120 151 182 197 185 185 185 185 185 185 185 185 185 185 185 185 185 185 178 178 178 178 178 178 178 178 181 181 181
2. Operator & Mechanics 1,842 389 838 1,236 1,643 1,842 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,683 1,603 1,603 1,603 1,603 1,603 1,603 1,603 1,603 1,634 1,634 1,634
3. Laborer 227 108 145 177 210 227 214 214 214 214 214 214 214 214 214 214 214 214 214 214 207 207 207 207 207 207 207 207 210 210 210

DESCRIPTION TOTAL Monthly Salary & Annual Field Flight Medical
Yearly Basic THR Bonus Bonus Allowance Fare
I. SENIOR STAFF
1. Project Manager 80,414 26,700 24,000 26,700 2,486 528
2. Deputy PM 61,064 20,025 18,000 20,025 2,486 528
3. Engineering Head 34,502 9,984 11,520 9,984 2,486 528
4. Production Head 44,294 13,104 15,120 13,104 2,486 480
5. Plant Head 34,454 9,984 11,520 9,984 2,486 480
6. FAT Head 34,454 9,984 11,520 9,984 2,486 480
7. HRGA Head 34,454 9,984 11,520 9,984 2,486 480
8. SHE Head 34,454 9,984 11,520 9,984 2,486 480
Sub Total I 358,093 109,749 114,720 109,749 19,891 3,984
II. OPERATION
1. Engineer Section
min+Loading Convey 19,382 5,616 5,184 5,616 2,486 480
2. Production Section Head 18,230 5,616 4,032 5,616 2,486 480
3. Group Leader +Crue CPP 9,004 5,105 1,964 1,532 403
4. Operators 8,251 4,538 1,968 1,361 384
Sub Total II 54,868 20,876 1,968 11,180 14,125 4,973 1,747

1. Blasting Foreman 8,985 5,105 1,964 1,532 384
2. Licensed Blaster 8,985 5,105 1,964 1,532 384
3. Drillers 8,029 4,538 1,745 1,361 384
4. Drill Helpers 6,118 3,404 1,309 1,021 384
5. Explosives Helper 6,118 3,404 1,309 1,021 384
Sub Total III 38,234 21,556 8,291 6,467 1,920
62
DESCRIPTION TOTAL Monthly Salary & Annual Field Flight Medical

Yearly Basic THR Bonus Bonus Allowance Fare
IV. SURVEY
1. Chief Surveyor 9,004 5,105 1,964 1,532 403
2. Surveyor 8,029 4,538 1,745 1,361 384
3. Draftsman 8,029 4,538 1,745 1,361 384
Sub Total IV 25,062 14,182 5,455 4,255 1,171
V. MECHANICAL
1. Planat Section Head 18,230 5,616 4,032 5,616 2,486 480
2. Plant Group Leader 9,004 5,105 1,964 1,532 403
3. Mechanic 7,267 4,538 984 1,361 384
4. Assistant Mechanic/Drivers 6,118 3,404 1,309 1,021 384
5. Welder 5,793 3,404 984 1,021 384
6. Autoelectricians 7,267 4,538 984 1,361 384
7. Fuelmen 6,118 3,404 1,309 1,021 384
8. Tiremen 6,118 3,404 1,309 1,021 384
9. Helper 6,118 3,404 1,309 1,021 384
Sub Total V 72,033 36,816 2,951 11,232 14,976 2,486 3,571
VI. WAREHOUSE
1. Logistic Section Head 18,230 5,616 4,032 5,616 2,486 480
2. Purchasing Supervisor 9,004 5,105 1,964 1,532 403
3. Storemen 6,118 3,404 1,309 1,021 384
4. Tool Keeper 6,118 3,404 1,309 1,021 384
5. Clerk 6,118 3,404 1,309 1,021 384
6. Laborer 6,118 3,404 1,309 1,021 384
7. Purchasing Labor 6,118 3,404 1,309 1,021 384
Sub Total VI 57,823 27,740 12,541 12,253 2,486 2,803
VII. ADMINISTRATION
1. Finance + Accounting Tax Section Head 18,230 5,616 4,032 5,616 2,486 480
2. Personnel Section Head 18,230 5,616 4,032 5,616 2,486 480
3. Secretary 9,004 5,105 1,964 1,532 403
4. Clerk & Security 6,118 3,404 1,309 1,021 384
5. Office Boy & Drivers 6,118 3,404 1,309 1,021 384
Sub Total VII 57,700 23,145 12,646 14,806 4,973 2,131
GRAND TOTAL 663,814 254,063 4,919 176,064 176,630 34,810 17,328
63
DESCRIPTION BASIS TOTAL YEAR

Escalation Base Year in IDR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Escalation 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
I. SENIOR STAFF
1. Project Manager 80,414 2,714,322 81,018 81,625 82,237 82,854 83,476 84,102 84,732 85,368 86,008 86,653 87,303 87,958 88,618 89,282 89,952
2. Deputy PM 61,064 2,061,178 61,522 61,984 62,449 62,917 63,389 63,864 64,343 64,826 65,312 65,802 66,295 66,793 67,294 67,798 68,307
3. Engineering Head 34,502 1,164,600 34,761 35,022 35,285 35,549 35,816 36,084 36,355 36,628 36,902 37,179 37,458 37,739 38,022 38,307 38,594
4. Production Head 44,294 1,495,121 44,627 44,961 45,299 45,638 45,981 46,325 46,673 47,023 47,376 47,731 48,089 48,450 48,813 49,179 49,548
5. Plant Head 34,454 1,162,980 34,713 34,973 35,235 35,500 35,766 36,034 36,304 36,577 36,851 37,127 37,406 37,686 37,969 38,254 38,541
6. FAT Head 34,454 1,162,980 34,713 34,973 35,235 35,500 35,766 36,034 36,304 36,577 36,851 37,127 37,406 37,686 37,969 38,254 38,541
7. HRGA Head 34,454 1,162,980 34,713 34,973 35,235 35,500 35,766 36,034 36,304 36,577 36,851 37,127 37,406 37,686 37,969 38,254 38,541
8. SHE Head 34,454 1,162,980 34,713 34,973 35,235 35,500 35,766 36,034 36,304 36,577 36,851 37,127 37,406 37,686 37,969 38,254 38,541
Sub Total I 12,087,140 360,779 363,485 366,211 368,957 371,725 374,513 377,321 380,151 383,002 385,875 388,769 391,685 394,622 397,582 400,564
II. OPERATION
1. Engineer Section
min+Loading Convey 19,382 4,579,658 136,694 137,720 138,752 139,793 140,842 141,898 142,962 144,034 145,115 146,203 147,299 148,404 149,517 150,639 151,768
2. Production Section Head 18,230 1,846,056 55,101 55,515 55,931 56,350 56,773 57,199 57,628 58,060 58,496 58,934 59,376 59,822 60,270 60,722 61,178
3. Group Leader +Crue CPP 9,004 40,986,468 498,930 776,857 1,031,300 1,289,517 1,420,695 1,337,182 1,347,211 1,357,315 1,367,495 1,377,751 1,388,085 1,398,495 1,408,984 1,419,551 1,430,198
4. Operators 8,251 440,392,404 3,230,637 7,022,312 10,431,721 13,969,920 15,778,335 14,523,538 14,632,465 14,742,208 14,852,775 14,964,171 15,076,402 15,189,475 15,303,396 15,418,172 15,533,808
Sub Total II 487,804,586 3,921,363 7,992,403 11,657,704 15,455,581 17,396,645 16,059,818 16,180,266 16,301,618 16,423,880 16,547,059 16,671,162 16,796,196 16,922,168 17,049,084 17,176,952

1. Blasting Foreman 8,985 303,272 9,052 9,120 9,188 9,257 9,327 9,397 9,467 9,538 9,610 9,682 9,754 9,828 9,901 9,976 10,050
2. Licensed Blaster 8,985
3. Drillers 8,029 1,626,092 48,536 48,900 49,267 49,636 50,008 50,383 50,761 51,142 51,526 51,912 52,301 52,694 53,089 53,487 53,888
4. Drill Helpers 6,118 1,239,011 36,982 37,260 37,539 37,821 38,104 38,390 38,678 38,968 39,260 39,555 39,851 40,150 40,451 40,755 41,060
5. Explosives Helper 6,118 1,858,517 55,473 55,889 56,309 56,731 57,156 57,585 58,017 58,452 58,890 59,332 59,777 60,225 60,677 61,132 61,591
Sub Total III 5,026,892 150,043 151,169 152,303 153,445 154,596 155,755 156,923 158,100 159,286 160,481 161,684 162,897 164,119 165,349 166,590
64
Table11.3 Detail of Total Workers (Part 2)
DESCRIPTION BASIS YEAR

Escalation Base Year in IDR 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Escalation 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
I. SENIOR STAFF
1. Project Manager 80,414 90,626 91,306 91,991 92,681 93,376 94,076 94,782 95,493 96,209 96,930 97,657 98,390 99,128 99,871 100,620
2. Deputy PM 61,064 68,819 69,335 69,855 70,379 70,907 71,439 71,975 72,514 73,058 73,606 74,158 74,714 75,275 75,839 76,408
3. Engineering Head 34,502 38,884 39,176 39,469 39,765 40,064 40,364 40,667 40,972 41,279 41,589 41,901 42,215 42,532 42,851 43,172
4. Production Head 44,294 49,919 50,294 50,671 51,051 51,434 51,820 52,208 52,600 52,994 53,392 53,792 54,196 54,602 55,012 55,424
5. Plant Head 34,454 38,830 39,121 39,414 39,710 40,008 40,308 40,610 40,915 41,222 41,531 41,842 42,156 42,472 42,791 43,112
6. FAT Head 34,454 38,830 39,121 39,414 39,710 40,008 40,308 40,610 40,915 41,222 41,531 41,842 42,156 42,472 42,791 43,112
7. HRGA Head 34,454 38,830 39,121 39,414 39,710 40,008 40,308 40,610 40,915 41,222 41,531 41,842 42,156 42,472 42,791 43,112
8. SHE Head 34,454 38,830 39,121 39,414 39,710 40,008 40,308 40,610 40,915 41,222 41,531 41,842 42,156 42,472 42,791 43,112
Sub Total I 403,568 406,595 409,644 412,717 415,812 418,931 422,073 425,238 428,428 431,641 434,878 438,140 441,426 444,736 448,072
II. OPERATION
1. Engineer Section
min+Loading Convey 19,382 152,907 154,053 155,209 156,373 157,546 158,727 159,918 161,117 162,326 163,543 164,770 166,005 167,250 168,505 169,769
2. Production Section Head 18,230 61,637 62,099 62,565 63,034 63,507 63,983 64,463 64,946 65,433 65,924 66,418 66,917 67,418 67,924 68,434
3. Group Leader +Crue CPP 9,004 1,440,924 1,451,731 1,462,619 1,473,589 1,421,910 1,432,574 1,443,318 1,454,143 1,465,049 1,476,037 1,487,107 1,498,261 1,531,696 1,543,184 1,554,758
4. Operators 8,251 15,650,311 15,767,689 15,885,946 16,005,091 15,362,850 15,478,072 15,594,157 15,711,114 15,828,947 15,947,664 16,067,271 16,187,776 16,620,428 16,745,081 16,870,670
Sub Total II 17,305,779 17,435,572 17,566,339 17,698,087 17,005,812 17,133,356 17,261,856 17,391,320 17,521,755 17,653,168 17,785,567 17,918,959 18,386,793 18,524,694 18,663,629

1. Blasting Foreman 8,985 10,126 10,202 10,278 10,355 10,433 10,511 10,590 10,669 10,749 10,830 10,911 10,993 11,076 11,159 11,242
2. Licensed Blaster 8,985
3. Drillers 8,029 54,292 54,700 55,110 55,523 55,940 56,359 56,782 57,208 57,637 58,069 58,504 58,943 59,385 59,831 60,279
4. Drill Helpers 6,118 41,368 41,679 41,991 42,306 42,623 42,943 43,265 43,590 43,917 44,246 44,578 44,912 45,249 45,588 45,930
5. Explosives Helper 6,118 62,053 62,518 62,987 63,459 63,935 64,415 64,898 65,385 65,875 66,369 66,867 67,368 67,874 68,383 68,895
Sub Total III 167,839 169,098 170,366 171,644 172,931 174,228 175,535 176,851 178,178 179,514 180,860 182,217 183,584 184,960 186,348
65
DESCRIPTION BASIS TOTAL YEAR

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
IV. SURVEY
1. Chief Surveyor 9,004 303,920 9,071 9,139 9,208 9,277 9,347 9,417 9,487 9,559 9,630 9,702 9,775 9,849 9,922 9,997 10,072
2. Surveyor 8,029 542,031 16,179 16,300 16,422 16,545 16,669 16,794 16,920 17,047 17,175 17,304 17,434 17,565 17,696 17,829 17,963
3. Draftsman 8,029 271,015 8,089 8,150 8,211 8,273 8,335 8,397 8,460 8,524 8,588 8,652 8,717 8,782 8,848 8,915 8,981
Sub Total IV 1,116,966 33,339 33,589 33,841 34,095 34,351 34,609 34,868 35,130 35,393 35,658 35,926 36,195 36,467 36,740 37,016
V. MECHANICAL
1. Planat Section Head 18,230 1,846,056 55,101 55,515 55,931 56,350 56,773 57,199 57,628 58,060 58,496 58,934 59,376 59,822 60,270 60,722 61,178
2. Plant Group Leader 9,004 4,907,750 36,002 78,257 116,251 155,681 175,834 161,851 163,065 164,288 165,520 166,761 168,012 169,272 170,542 171,821 173,109
3. Mechanic 7,267 31,689,914 232,471 505,314 750,649 1,005,253 1,135,383 1,045,090 1,052,928 1,060,825 1,068,781 1,076,797 1,084,873 1,093,010 1,101,207 1,109,466 1,117,787
4. Assistant Mechanic/Drivers 6,118
5. Welder 5,793 195,522 5,836 5,880 5,924 5,968 6,013 6,058 6,104 6,149 6,195 6,242 6,289 6,336 6,383 6,431 6,480
6. Autoelectricians 7,267 981,224 29,288 29,507 29,729 29,952 30,176 30,403 30,631 30,860 31,092 31,325 31,560 31,797 32,035 32,275 32,517
7. Fuelmen 6,118 826,008 24,655 24,840 25,026 25,214 25,403 25,593 25,785 25,979 26,174 26,370 26,568 26,767 26,968 27,170 27,374
8. Tiremen 6,118 826,008 24,655 24,840 25,026 25,214 25,403 25,593 25,785 25,979 26,174 26,370 26,568 26,767 26,968 27,170 27,374
9. Helper 6,118 1,239,011 36,982 37,260 37,539 37,821 38,104 38,390 38,678 38,968 39,260 39,555 39,851 40,150 40,451 40,755 41,060
Sub Total V 42,511,492 444,991 761,412 1,046,076 1,341,452 1,493,090 1,390,177 1,400,603 1,411,108 1,421,691 1,432,354 1,443,097 1,453,920 1,464,824 1,475,810 1,486,879
VI. WAREHOUSE
1. Logistic Section Head 18,230 615,352 18,367 18,505 18,644 18,783 18,924 19,066 19,209 19,353 19,499 19,645 19,792 19,941 20,090 20,241 20,393
2. Purchasing Supervisor 9,004
3. Storemen 6,118 413,004 12,327 12,420 12,513 12,607 12,701 12,797 12,893 12,989 13,087 13,185 13,284 13,383 13,484 13,585 13,687
4. Tool Keeper 6,118 413,004 12,327 12,420 12,513 12,607 12,701 12,797 12,893 12,989 13,087 13,185 13,284 13,383 13,484 13,585 13,687
5. Clerk 6,118 826,008 24,655 24,840 25,026 25,214 25,403 25,593 25,785 25,979 26,174 26,370 26,568 26,767 26,968 27,170 27,374
6. Laborer 6,118 826,008 24,655 24,840 25,026 25,214 25,403 25,593 25,785 25,979 26,174 26,370 26,568 26,767 26,968 27,170 27,374
7. Purchasing Labor 6,118 206,502 6,164 6,210 6,257 6,303 6,351 6,398 6,446 6,495 6,543 6,592 6,642 6,692 6,742 6,792 6,843
Sub Total VI 3,299,877 98,495 99,234 99,978 100,728 101,484 102,245 103,011 103,784 104,562 105,347 106,137 106,933 107,735 108,543 109,357
VII. ADMINISTRATION
1. Finance + Accounting Tax Section Head 18,230 1,230,704 36,734 37,010 37,287 37,567 37,849 38,133 38,419 38,707 38,997 39,290 39,584 39,881 40,180 40,482 40,785
2. Personnel Section Head 18,230 615,352 18,367 18,505 18,644 18,783 18,924 19,066 19,209 19,353 19,499 19,645 19,792 19,941 20,090 20,241 20,393
3. Secretary 9,004 303,920 9,071 9,139 9,208 9,277 9,347 9,417 9,487 9,559 9,630 9,702 9,775 9,849 9,922 9,997 10,072
4. Clerk & Security 6,118 2,065,019 61,637 62,099 62,565 63,034 63,507 63,983 64,463 64,947 65,434 65,925 66,419 66,917 67,419 67,925 68,434
5. Office Boy & Drivers 6,118 1,652,015 49,310 49,679 50,052 50,427 50,806 51,187 51,571 51,957 52,347 52,740 53,135 53,534 53,935 54,340 54,747
Sub Total VII 5,867,011 175,119 176,433 177,756 179,089 180,432 181,786 183,149 184,523 185,907 187,301 188,706 190,121 191,547 192,983 194,431
GRAND TOTAL 557,713,964 5,184,130 9,577,724 13,533,869 17,633,348 19,732,322 18,298,901 18,436,143 18,574,414 18,713,722 18,854,075 18,995,481 19,137,947 19,281,481 19,426,093 19,571,788
66

V
DESCRIPTION BASIS YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
IV. SURVEY
1. Chief Surveyor 9,004 10,147 10,223 10,300 10,377 10,455 10,534 10,613 10,692 10,772 10,853 10,935 11,017 11,099 11,182 11,266
2. Surveyor 8,029 18,097 18,233 18,370 18,508 18,647 18,786 18,927 19,069 19,212 19,356 19,501 19,648 19,795 19,944 20,093
3. Draftsman 8,029 9,049 9,117 9,185 9,254 9,323 9,393 9,464 9,535 9,606 9,678 9,751 9,824 9,898 9,972 10,047
Sub Total IV 37,294 37,573 37,855 38,139 38,425 38,713 39,004 39,296 39,591 39,888 40,187 40,488 40,792 41,098 41,406
V. MECHANICAL
1. Planat Section Head 18,230 61,637 62,099 62,565 63,034 63,507 63,983 64,463 64,946 65,433 65,924 66,418 66,917 67,418 67,924 68,434
2. Plant Group Leader 9,004 174,408 175,716 177,034 178,361 171,204 172,488 173,782 175,085 176,398 177,721 179,054 180,397 185,219 186,608 188,007
3. Mechanic 7,267 1,126,171 1,134,617 1,143,127 1,151,700 1,105,485 1,113,777 1,122,130 1,130,546 1,139,025 1,147,568 1,156,174 1,164,846 1,195,979 1,204,949 1,213,986
4. Assistant Mechanic/Drivers 6,118
5. Welder 5,793 6,528 6,577 6,626 6,676 6,726 6,777 6,827 6,879 6,930 6,982 7,035 7,087 7,141 7,194 7,248
6. Autoelectricians 7,267 32,761 33,007 33,255 33,504 33,755 34,008 34,264 34,520 34,779 35,040 35,303 35,568 35,835 36,103 36,374
7. Fuelmen 6,118 27,579 27,786 27,994 28,204 28,416 28,629 28,843 29,060 29,278 29,497 29,719 29,941 30,166 30,392 30,620
8. Tiremen 6,118 27,579 27,786 27,994 28,204 28,416 28,629 28,843 29,060 29,278 29,497 29,719 29,941 30,166 30,392 30,620
9. Helper 6,118 41,368 41,679 41,991 42,306 42,623 42,943 43,265 43,590 43,917 44,246 44,578 44,912 45,249 45,588 45,930
Sub Total V 1,498,031 1,509,266 1,520,585 1,531,990 1,480,132 1,491,233 1,502,418 1,513,686 1,525,038 1,536,476 1,548,000 1,559,610 1,597,172 1,609,151 1,621,219
VI. WAREHOUSE
1. Logistic Section Head 18,230 20,546 20,700 20,855 21,011 21,169 21,328 21,488 21,649 21,811 21,975 22,139 22,306 22,473 22,641 22,811
2. Purchasing Supervisor 9,004
3. Storemen 6,118 13,789 13,893 13,997 14,102 14,208 14,314 14,422 14,530 14,639 14,749 14,859 14,971 15,083 15,196 15,310
4. Tool Keeper 6,118 13,789 13,893 13,997 14,102 14,208 14,314 14,422 14,530 14,639 14,749 14,859 14,971 15,083 15,196 15,310
5. Clerk 6,118 27,579 27,786 27,994 28,204 28,416 28,629 28,843 29,060 29,278 29,497 29,719 29,941 30,166 30,392 30,620
6. Laborer 6,118 27,579 27,786 27,994 28,204 28,416 28,629 28,843 29,060 29,278 29,497 29,719 29,941 30,166 30,392 30,620
7. Purchasing Labor 6,118 6,895 6,946 6,999 7,051 7,104 7,157 7,211 7,265 7,319 7,374 7,430 7,485 7,542 7,598 7,655
Sub Total VI 110,177 111,003 111,836 112,675 113,520 114,371 115,229 116,093 116,964 117,841 118,725 119,615 120,512 121,416 122,327
VII. ADMINISTRATION
1. Finance + Accounting Tax Section Head 18,230 41,091 41,399 41,710 42,023 42,338 42,655 42,975 43,297 43,622 43,949 44,279 44,611 44,946 45,283 45,622
2. Personnel Section Head 18,230 20,546 20,700 20,855 21,011 21,169 21,328 21,488 21,649 21,811 21,975 22,139 22,306 22,473 22,641 22,811
3. Secretary 9,004 10,147 10,223 10,300 10,377 10,455 10,534 10,613 10,692 10,772 10,853 10,935 11,017 11,099 11,182 11,266
4. Clerk & Security 6,118 68,947 69,464 69,985 70,510 71,039 71,572 72,109 72,650 73,194 73,743 74,296 74,854 75,415 75,981 76,551
5. Office Boy & Drivers 6,118 55,158 55,572 55,988 56,408 56,831 57,258 57,687 58,120 58,556 58,995 59,437 59,883 60,332 60,785 61,240
Sub Total VII 195,889 197,358 198,838 200,330 201,832 203,346 204,871 206,408 207,956 209,515 211,087 212,670 214,265 215,872 217,491
GRAND TOTAL 19,718,577 19,866,466 20,015,464 20,165,580 19,428,465 19,574,178 19,720,985 19,868,892 20,017,909 20,168,043 20,319,304 20,471,698 20,984,544 21,141,928 21,300,492
67
GM/
Engineering Head
&
Deputy GM / Deputy
Head of Head of Production Head of Plant Head of Head of Head of Head of

CPP
Division
Engineering Division FAT Human Resources OHS & Division
Division Division and Gneeral Environment
Head of Staff Staff Staff

Head of Head of
Heavy - Financial Division
- HRD
Occupational Heath and
General Division Safety & Environment

Mine Mining Equipments - Accounting Division -
- Taxation Division
Planning Section Maintenance
Head of Head of
Head of
Monitor & Drilling &
Blasting Logistic
Control Section
Section
Head of Head of
Mine Pit Service

Survey Section
Figure 11.1 Organization Structure
68
CHAPTER XII MARKETING
12.1 International Coal Trade
According to the Information Energy Administration (IEA), in 2015, the world coal
production and consumption will reach 5,370 million tons, comprising 4,671 million
tons steam coal and 698 million tons metallurgical coal.
Figure 12.1 International Coal Production and Consumption
As per report of ABARE (Australian Bureau Research for Agriculture and Economic
Resource), March 2007, concerning the world coal trade in 2005-2006, placing
Indonesia as the largest coal supplier (approximately 25%), followed by Australia,
South Africa, People’s Republic of China, Russia Federation, Columbia, and the United
States of America. The quantity of Indonesian coal supply in the world is estimated 158
tons in 2006 or there is an increase of approximately 28 percent from 2005, namely
around 123.3 million tons. If the coal market price based on the spot market price of
69
Asia in 2006 is around US$ 45, it may be estimated that the quantity of Indonesian coal
trade in 2006 is in approximately 7.1 billion dollar or approximately Indonesian Rupiah
63.3 trillion.
300 282.3
250
200
144.2
Million Ton
150
103 97.3 90.5
100 80.2
39.1 30.9
50 26.1
7.8
0
Figure 12.2. Coal Export Estimation in 2015
According to ABARE, the Indonesian coal export is estimated to reach 200 million tons
in 2012. Furthermore, if we observe the movement of Indonesian coal export chart
during 2005-2006, it may be informed that our market orientation, other than to several
Uni-European countries, it is also dominated by Asian market, especially China, Taiwan,
India, and Korea as well as countries around ASEA, namely Malaysia and Thailand. At
least, for Asian market, the extent of international coal seaborne market of Indonesia is
approximately 233.8 billion ton mile, excluding ballast voyage which mostly use bulk-
carrier vessel in the capacity of 40,000-50,000 deadweight-ton (DWT) per shipment
unit.
70
With an assumption of one world average year charte-rate (specifically for vessel type
of handymax) in 2006, around US$ 0.002-0.003 per ton-mile, charter market value of
bulk-carrier vessel from Indonesia is around 780 million or approximately Indonesian
Rupiah 6.7 trillion, which means that the quantity of coal seaborne segment for Asia
region is around 10% of its trade value in 2006. With an assumption that the national
coal reserve supply is around 5 billion tons and annual production volume is around 190
million tons that is expected as the main strength and position Indonesia to remain be
the world coal supplier in, at least, next 3 years.
12.2 Government Policy
According to the National Energy Policy 2003 - 2020, the coal has been decided as
future alternative energy with the aim of dependence on natural oil. Total Indonesian
source of coal is estimated 61.2 billion tons that is expected to substitute the future
consumption of oil and gas. 12.46 billion tons of it is classified as measurable resources,
and 45.4 billion tons belong to indicated, measurable and hypothetical reserves. Only
6.98 billion tons that may be categorized as commercially mineable reserve, partially
located in South Sumatera (23.2%), East Kalimantan (50.1%) and South Kalimantan
(23.5%). Almost 58.5% of is lignite, sub-bituminous (26.6%), bituminous (14 %) and
the remaining ones are anthracite.
71
NATIONAL COAL POLICY
MANAGERIAL POLICY
Mining Exploitation Development

Policy Policy Policy
- Investment climate - Diversification - Research and Development

- Exploration intensification & - Price - Training Indonesiasi
Production - Lignite - Organization
- Conservation - Coal Briquette - Data/ Information
- Fiscal - Coal Methane Gas - Center for Coal Technology
- Governmental Department - National Coal Stock
in Coal Production
Figure 12.3 National Coal Policy
Coal Resources Management Policy
 To reposition the coal status as a strategic mineral
 To assist the development of national coal infrastructure structure
 To take legal action on PETI
Cultivation Policy
 To establish a conducive and competitive capital investment climate
 To provide fair business certainty to investors
 To intensify the coal reserve finding
Exploitation Policy
 To direct and encourage the diversification of net coal exploitation and technology
72
 To provide special attention to the research and development as well as
investment in the sector of lignite exploitation and Coal Bed Methane
 To develop the Center for Coal Exploitation Technology
Development Policy
 To encourage the development of low-rank coal exploitation, underground mining,
Coal Bed Methane exploitation and Mine Mouth Steam Power Plant
 To improve the technology of net coal exploitation and reduce environmental
impact
 To intensify the coal research and development
Indonesia coal production in 2007 reached 205 million tons. At present, the need for
domestic coal have reached 52 million tons annually, or increasing averagely 7-8% per
year, while the remaining 153 million tons are intended for export. As described in the
domestic National Coal Policy, the need for domestic coal will reach 150 million tons in
2020. The commitment of governmental crash program for developing the Steam Coal
Power Plant in the capacity of 10,000 MW may result in additional coal consumption of
more than 30 million tons.
Upon issuance of Presidential Regulation of Republic of Indonesia Number 71 of 2006
dated July 5th, concerning Assignment to PT PLN (Persero) for accelerating the
development of Power Plant using coal, then the coal need for the purpose of electrical
energy has significantly increased. Therefore, reliable and continual coal supply is
required with guaranteed quality and economic price.
73
One of efforts in obtaining such coal supply is made by means of operational
cooperation between PT PLN (persero) and Coal Mining Company (KP/PKP2B). Coal
mining in Indonesia generally refers to Law, Presidential Decree and Government
Regulation, as follows:
 Law Number 4 of 2009 concerning Mineral and Coal Mining
 Law Number 25 of 2007 concerning Capital Investment
 Presidential Decree Number 75 of 1996 concerning Principal Rule of Coal Mining
Cultivation Work Agreement
 Law Number 32 of 2004 concerning Local Government
 Law Number 25 of 1999 concerning Financial Equilibrium between Central
Government and Local Government
 Decree of Minister of Energy and Mineral Resources Number 1453/K/29/MEM/2000
concerning Technical Guidance on the Performance of Governmental Duties in the
Sector of General Mining
 Government Regulation Number 75 of 2001 concerning Second Amendment to
Government Regulation No. 32 concerning the Principal Rules of Mining.
 Law Number 30 of 2007 concerning Energy.
 Law Number 40 of 2007 concerning Limited Liability Company.
12.3 Marketing Prospect
According to the International Energy Outlook (IEO) 2007, world energy consumption
will increase 57% within a period of 25 years, namely from 2004 to 2030. Total
consumed energy increase from 447 quadrillion BTU into 559 BTU in 2015 and
increase into 702 quadrillion BTU in 2030. The increased need for global energy has
74
lead to increasing price of natural oil and natural gas in the mid of 2004 – 2030 period.
High growth of energy need in the above period is projected for Non-OECD countries
reaching 95%, while for OECD countries are approximately 24%. High growth of
energy need in Non-OECD countries is due to increasing of community’s purchasing
power that reaches averagely 2.5% per year.
Coal is source of energy with the fastest growth. Total world coal reserve is estimated
1,001 billion tons which is sufficient to be consumed for 180 years with the present
productivity. At present, the world coal consumption has reached 5.4 billion tons in
2004 and will increase into 10.6 billion tons in 2030. Coal consumption is projected to
increase averagely 3.5% per year until 2015 and 2.0-% until 2030. Coal contribution on
total world energy consumption will reach 28% in 2030. Of total produced coal, 67% is
for electrical power plant, 30% for industrial consumption and the remaining one is for
household and other commercial purpose. International coal trade has increased from
764 million tons in 2004 into 1.112 million tons in 2030. As described in the National
Coal Policy, the need for domestic coal will reach 150 million tons in 2020.
Figure 12.4 Domestic Coal Consumption in 2020
75
The sale of Indonesia’s coal, either for domestic consumption or export continue to
increase, averagely 10.2% per year. Domestic consumption in 2006 reached 48.9
million tons, comprising Steam Power Plant 27.8 million tons (62.7%), cement factory
5.3 million tons (15.1%), metallurgy 300 thousand tons and pulp, briquette and others
15.6 million tons. Export in 2006 reached 143 million tons, especially for Asia (China,
India, Japan, and South Korea): 88.8 million tons and the remaining one is for Europe,
Australian and Latin America.
250,000
200,000
,000Ton
150,000
100,000
50,000
0
2001 2002 2003 2004 2005 2006 2007
PRODUKSI KONSUM SI EKSPOR
Figure 12.5, Coal Consumption, Production and Export
Commitment of Governmental crash program for developing Steam Coal Power Plant
in the capacity of 8000 MW in the next 5 years will require additional consumption of
28 million tons per year. Likewise, the planned steam coal power plant in Malaysia,
Philippines, Korea and Japan will establish market in the quantity of 28 million tons
within the next future 5 years. In consideration of the consistently increasing coal
consumption, then within the next 5 years, domestic coal consumption is expected to
reach more than 60 million tons per year.
76
One of major coal consumers is cement industry. At present, there are 11 cement
factories with total production of 33 million tons cements per year of total installed
capacity of 47 million tons per year. Coal consumption in 2006 reached 5.8 million tons,
4% increase from the preceding year. Consumers of the cement factory are Indocemen:
1.6 million tons, PT Semen Gresik: 1 million tons, PT. Holcim: 862 thousand tons and
PT Semen Tonasa: 481 thousand tons.
120
100
80
60
40
20
0
2001 2002 2003 2004 2005 2006 2007
TOTAL 28.41 30 30.8 33 41 48.2 51.6

OTHERS 2.7 4.5 1.2 3.6 7.4 13.1 14.7
BRIQUETTE 0.03 0.025 0.025 0.023 0.028 0.028 0.027
PULP INDUSTRY 0.8 0.5 1.7 1.2 1.4 2.1 3.1
METALLURGY 0.18 0.21 0.2 0.12 0.2 0.19 0.19
CEMENT 5.1 4.7 4.8 5.3 5.6 5.8 5.9
CFPP 19.6 20.1 22.9 22.8 26.4 27 27.7
Figure 12.6 Domestic Coal Exploitation
12.4 Coal Price
Coal selling price will greatly depend on the procurement cost, including selling cost
and procurement cost comprising capital cost, exploration, mining, processing,
transportation, reclamation, labor, overhead and community development. The coal
price from mining up to final loading will vary because it not all coal mining companies
have crushing plant and jetty facilities in port.
Empirical analysis on the coal price has been compiled by Mimuroto in his book titled
“An Analysis of Steaming Coal Price Trends – Factors behind Price Fluctuation and
77
Outlook”, January 2000, against the Australian coal price. The price of Australian coal
export to Japan is the benchmark of world coal price. Australia has the largest coal
export segment in the world, namely 29% of total world coal export. Meanwhile, Japan
is the largest coal exporter, in the segment of 22% of total coals traded in the world.
Determinants of Austrian coal price are:
 Historic trend of Australian coal price;
 Exchange rate between Australian dollar and United States dollar.
 Total Australian coal stock for export.
 Australian coal mining productivity.
 Coal export of the United States of America.
 Price of natural oil in the world.
The price international coal generally use several indexes, such as Argus Daily
International (Argus), Barlow Jonker Index (BJI) and, for Indonesian coal, the
government HAS SPECIFIED THE Indonesian Coal Index (ICI) as reference.
120
107 . 24
100
84 .08 86 .7 2
80 79 .6
76 .03
US$/Ton
68 .52 69 .31 70 .8 3
6500 Kc al/K g
65 .34 63 .68
60 58 .88 58 .8 3 61 .6 5 5800 Kc al/K g
56 .96
52 .84 5000 Kc al/K g
49 .41
44 .93 46 .07
40
20
0
SEP OCT NOV DEC JAN FE B
Figure 12.270 0F7ob Coal Price (In2d0o0n8 esian Coal Index)
78
Table 12.1 Indonesian Coal Index Report
Argus/Coalindo
Indonesian Coal Index Report
Weekly average ICI Price Friday 18 January 2008
Indonesian Coal Indices incorporating by Argus Media and PT Coalindo

Grade Basis Price (US$/t)
Indonesia 6500 Kcal GAR 86.95
Submission to the Coalindo Panel - 18 Jan 2008

Indonesian 6500 Kcal Indonesian 5800 Kcal Indonesian 5000 Kcal
96.50 88.00 61.50
96.01 88.00 61.50
92.00 88.00 61.00
89.00 74.25 58.00
89.00 73.20 56.20
87.00 73.00 53.00
86.20 73.00 52.00
84.50 73.00 51.87
83.27 72.00 51.50
82.00 71.00 51.00
82.00 69.00 51.00
79.00 67.50 51.00
78.00 67.00 50.50
78.00 66.00 47.80
71.00 66.75 45.00
65.00
64.00
Monthly ICI average
Oct Nov Dec
Indonesian 6500 Kcal 68.52 76.03 84.08
Indonesian 5800 Kcal 58.88 63.68 69.31
Indonesian 5000 Kcal 46.07 49.41 52.84
GAR = Gross As Received
As illustrated in Figure 12.7, the Coal Price (ICI) and Table 12.1 on the Indonesian Coal
Index Report, the price of 5000 kca/kg calorie coal in early January was approximately
US$ 53 per ton. It is difficult to predict the coal price because it depends on various
factors, such as international oil price and exchange rate. If the coal price is assumed to
79
increase 3% to 6% per year, then the price of 5000 kcal/kg calorie coal for the next 10
year is estimated approximately US$ 72 per ton up to US$ 91 per ton, on condition that
the oil price is not more than US$ 100 per barrel.
12.5 Coal Marketing Prospect of PT. Karya Bumi .................................. Baratama
12.5.1 Domestic Market Prospect
PT Karya Bumi Baratama’s coal may be categorized as Low Rank Coal. There are
several definitions of LRC, as follows:
ASTM : LRC is lignite (CV 3500 – 4600 Kcal/kg, mmmf, with total moisture
higher than 35%
ISO System : LRC is Brown Coal (CV < 5700 Kcal/kig), ash free
GOI : Coal with higher moisture content (>35%) and Low Calorific Value
(< 5100 Kcal/kg adb) include Lignite and Sub Bituminous C
The quality of PT Karya Bumi Baratama’s coal may be seen in table below.
80
Table 12.2 Coal Quality of PT Karya Bumi Baratama
PROXIMATE ANALYSIS (%) PT. KBB PLN
Total Moisture 30 35
Inherent Moisture 15 20
Volatile Matter 40 35 (ar)
Fixed Carbon 40 20 (ar)
Ash Content 5 6 (max)
EQUILIBRIUM MOISTURE (%) 15 20
Gross (kCal/kg ar) 4200 – 4350 3900 - 4200
Gross (kCal/kg adb) 5200 – 5500
Net (kCal/kg ar) 3900 – 4050
Hardgrove Grindability Index 45 50 - 60
ULTIMATE ANALYSIS (% daf)
Carbon 68,7 25 min
Hydrogen 4,57
Nitrogen 1,02 1,2 max
Sulphur 0,3 1,8% dafmax
Oxygen 14
*) Source: Prequalification Document of PT. PLN
Total coal reserves of PT Karya Bumi Baratama is quite significant (> 100 million tons),
in accordance with the National Coal Policy, especially Low Rank Coal (LRC), may be
utilized form various purposes, such as mine mouth Steam Power Plant, gasification and
liquefaction, coal briquette, et cetera, as displayed in the scheme below.
81
Source : Coaltrans Conference 14-15 November 2007
LOW RANK COAL
Coal
Upgrading
Liquefaction
Mine Mouth
Gasification
Power Generation
Upgraded Synthetic
Coal Oil
Power Plant
- Synthetic gas
Electricity (Petrochemical)
Export Transportation
-Synthetic fuel
Briquette (Industrial Fuel)
Figure 12.8 Utilization Concept of Low Rank Coal
Scenario of estimated LRC need is as described in the following table.
Table 12.3 Scenario of Estimated Need for Low rank Coal in Indonesia during
2010-2025 (In million tons)
Consumer 2010 2015 2020 2025
Electricity 43.0 78.0 82.0 106.0
Coal Liquefaction 9.0 25.0 35.0
Upgrading 1.7 8.0 12.0 17.0
Gasification 1.5 5.0 7.0 9.0
Other Industry 3.8 8.0 10.0 17.0
Total 50.0 108.0 136.0 184.0
82
Source : Coaltrans Conference 14-15 November 2007
As described in the above Table 12.2, the quality of PT Karya Bumi Baratama in
accordance with requirements needed in the 10,000 MW acceleration program of PT
PLN that entirely require coal supply of 28 million tons per year in 2010. Other
domestic marketing in accordance with scenario of the Table 12.3 above namely for
coal liquefaction, upgrading, and other industries such as gasification and briquette
which are entirely estimated to reach 50 million tons in 2010.
12.5.2 Export Marketing Prospect
The world coal consumption has been incessantly increasing and estimated to be
twofold within a future period of 30 years (IOE 2007). Consumption of steam coal is
projected to grow 1.5 % per year and lignite (low raw coal) that is utilized for electrical
power plant will grow 1% per year.
Figure 12.9 Coal and Lignite Consumption in Asia and Africa
83
World coal consumption during 2006 reached 6,088 million tons (figure 12.9), in which
the largest consumption in Asia, especially China, India, Japan, and South Korea that
reached 3,081 million or 54% of total world consumption. Average increase of world
consumption was 5.38% per year, while average increase of consumption in Asia was
11.36% per year. Owing to the planned development of coal power plant in Asia, inter
alia: China, India, South Korea, the import of which may reach more than 300 million
tons. Therefore, the export of PT Karya Bumi Baratama’s coal is still widely open.
Figure 12.10 Coal Import in Asia
100
90
80
70
Million Ton
60
50
40
30
20
10
0
2001 2002 2003 2004 2005 2006
ASIA EROPA AUSTRALIA - AMERIKA LAIN-LAIN
Figure 12.11 Coal Export from Indonesia to Asia, Europe, Australia, and America
84
Indonesia’ coal export in 2006 reached 143 million tons, in which 89.7 million tons to
Asia, 21 million tons to Europe, Australia, and America as well as other counties in the
quantity of 32.7 million tons.
12.6 Domestic Market Obligation
Domestic Market Obligation is a policy established by the Government that requires the
coal mining company (KP/PKP2B) to sell part of its coal production in domestic with
the aim of satisfying the need for coal. Basis of such governmental policy is:
1) National Energy Policy (NEP)
(Presidential Regulation No. 5 of 2006, Article 4 paragraph 2: Blueprint of
National Energy Management.
2) National Coal Policy (NCP)
(Article 2 section 6: Domestic Coal Need
3) Law No. 30 of 2007 concerning Energy
(Article 3: Guaranteed Domestic Coal Need)
4) Coal Mining Cultivation Work Agreement (PKP2B)
Article 12 section 1: Marketing
Article 19 section 1: National Interest Promotion
Indonesian Government applies the DMA policy in consideration of the following
matters:
1) Increasing coal need for generator, especially in the 10,000 MW
acceleration program.
2) Competition with other industries that exploit coal as raw material and fuel
such as cement, paper, briquette, fertilizer and metallurgy.
85
3) Fluctuating increase of coal price, adjustment of fuel price and following the
international index (ICI, BJI, Argus).
4) Limited mine infrastructure that cause stagnant supply of coal to generator.
DMO methodology is as follows:
1. DMO is applicable for all coal mining companies (KP/PKP2B).
2. Total DPO (%) = Total Domestic Need x 100%

Total National Product
3. DMO (%) will be determined by the Government (MESDM), 5 years prior
to its implementation.
4. In order that the DMO has legal power, it must be issued by virtue of
Presidential Decree or Government Regulation.
5. It is recommended to establish the National Coal Agency in order to
regulate the DMO and analyze the coal production and consumption.
6. The DMO is only related to the volume of coal supply, while the price will
adjust to the market price mechanism.
An example of DMO calculation for six coal mining companies in 2006 is as follows:
D
DMMO
O 2 20 0 06 6
COAL
P E R U SMINING
A H A A N TCOMPANY
AMBANG PRODUCTION
PRODUKSI
PKP2B)
B ATUBARA(PKP2B) (2008)
(2006) Ton
Ton
% t%
o to
P rNational
oduKSI
Production
N a s i o n al
1 . P T K a l t im P r im a C o a l 35.301MTons 8.933MTons 4.6%
2 . P T A d a r o I n d o n e s ia 34.368MTons 8.697MTons 4.5%
3 . P T K id e c a J a y a A g u n g 18.900MTons 4.783MTons 2.5%
4 . P T A r u t m in I n d o n e s ia 16.234MTons 4.108MTons 2.1%
5.PTBerauCoal 10.533MTons 2.665MTons 1.4%
6 . P T B u k it A s a m 9.252MTons 2.341MTons 1.2%
PRODUKSINASIONAL 193.610MTons 31.527MTons 16.3%
* ) K o n s u m s i N a s io n a l ( 2 0 0 6 ) : 4 8 . 9 9 5 M T o n s
*) National Consumption (2006) : 48,995 M Tons
ProduksiKP/PKP2B
Production of KP/PKP2B K o n s u m s i N a s io n a l
* ) D M O = ----------------------------------------------x
*) DMO = P r o d u k s i N a s io n a l x National Consumption
National Production
86
CHAPTER XIII. INVESTMENT ANALYSIS AND ECONOMIC FEASIBILITY
13.1 Investment Basic Concept and Economic Feasibility Analysis
Investment in the sector of coal mining generally requires utilization of large fund and
certainly has large risk. Therefore, before making a decision for an investment, there
must be an accurate analysis relating to technical, economic, and financial aspects. This
economic aspect must involve an assessment on the present situation and condition. It
also consider the condition of future period, especially in anticipating any change
arising out of the factors of technological development, changing global economic
condition that usually affect the change to coal price, et cetera. Analysis on the
economic aspect is particularly required in estimating expenditure and revenue during
the mining period, which is described in the projection of company’s cash flow.
Analysis on the feasibility of coal mining project in the survey area by PT. Karya Bumi
Baratama is performed by conventional approach, namely by conducting an analysis on
the cash outflow and cash inflow that may be the basis of assessment in identifying the
profit to be obtained by the company. Cash flow is formed by some parameters, namely
coal sale value, operating cost comprising cover soil peeling cost, coal mining, coal
processing, construction cost of mine means and infrastructures, depreciation and
amortization, tax et cetera. Flow chart illustrating the investment and economic
evaluation of type of coal mining business may be completely and schematically seen in
Figure 13.1.
Analysis on Investment and Economic Feasibility in this study will be made in the
assumption that all investment and mining activities are carried out by PT. KBB itself.
87
13.2 Basis of analysis and assumption that is applied
Economic aspect analysis and feasibility analysis on the coal mining project of PT.
Karya Bumi Baratama in this survey area is intended for assessing whether or not the
project is profitable and the its extent of economy.
Some assumptions and limitations which are used as bases in analyzing the economic
aspect of PT. Karya Bumi Baratama coal mining project are as follows:
a) Calculation is performed until loading to vessel in port, while the mine

period is calculated until 30 years.
b) Cost calculation is performed in the United States Dollar currency, with an
assumption that the exchange rate or US$ rate = IDR. 10,000.00
c) Long-term loan interest is 6.5% per year.
d) Comparison of loan and self-capital (DER) is 70%: 30%. 70% of investment

cost derives from bank and 30% from self capital (equity).
e) Fuel and Lubricant Price of;

 Fuel price (IDR. 5,500.00/lt $0.55
 Fuel Contingency 3.5%
Lubricant price:
 Engine\Tans\Final Drive (US$/lt) $2.80
 Hydraulic oil (US$/lt) $2.40
 Grease (US$/kg) $7.70
 Blasting cost (US$/bcm) $0.24
 Fuel transportation (US$/lt) $0.04
f) Annual Escalation rate: (max. 12%/year)

 Equipment price 4.00%
 Oil price 3.005
 Spare parts price 4.00%
g) Depreciation period, straight line method:
88
 5 years, and
 8 years, specifically for Big equipment.
h) Coal selling price FOB vessel in port is assumed = US$55.00/ton
PRODUCTION SCHEDULE
Cost Centre
Cost Purchase & Equipment

Database Replacement Number
Schedule Schedule
Operating Hours Labour Number
Equipment Labour Hour

Operating Cost
Total Capital Cost Total Operating Cost
Cash Outflow
Revenue &
Cash Inflow
Economic Evaluation
Tax, Escalation,
Interest, Risk,
Depreciation,
Amortitation,
DCFAnalysis
Figure 13.1 Flow chart of investment and economic evaluation
89
13.3 Investment Cost
Calculation of investment cost, namely the fund that must be made available by PT.
Karya Bumi Baratama, including investments of preliminary stage and operational stage
in the form of procurement and addition as well as replacement, comprising the need for
equipments, infrastructures development project (construction), exploration cost and
studies, land clearing cost, and working capital. In detail, all needs for investment are
presented in Table 13.
13.3.1 Mining Equipments Investment
Investment calculation for mining equipments is based on some considerations, as
follows:
- List of required equipments (total, model and endurance period of
equipments) which are adjusted to the coal production schedule.
- Equipments purchasing schedule is adjusted to the endurance period of each
equipment, including the equipment replacement schedule, and
- Budget use schedule for purchasing equipments based on procurement price.
13.3.2 Preliminary Stage Investment Cost
Preliminary stage investment cost is the cost having been incurred by PT. Karya Bumi
Baratama as the need and requirement that must be met prior to commencement of the
coal mining project, comprising:
- General survey and exploration cost.
- Study cost (feasibility study, environmental impact analysis, etc.)
- License cost (general survey, exploration, exploitation, etc.)
- Other costs.
90
13.3.3 Land Replacement Investment
Investment cost for land compensation is the cost incurred with the aim of providing
compensation to the region or community in relation to exploitation of land and/or
plants existing on it. Calculation of land clearing cost is based on regulation issued by
Local Government and information provided by PT. Karya Bumi Baratama. Land
clearing cost for mining in Tanjung Rambai Block and Muara Indung – HTI Block as
well as supporting area, involving the dumping area, infrastructure, stockpile, and
development area of 6000 Ha is US$ 27,000,000.00. Meanwhile, the land compensation
cost for transportation road of in the length of 200 km and width of 60m is
US$ 5,400,000.00.
13.3.4 Infrastructure Investment Cost
Investment cost for infrastructures is the cost incurred for mining infrastructure
development during the construction period. This cost include infrastructures of
workshop, warehouse, office area and housing, utilizes, road to port, including the road
around office area and housing et cetera.
13.3.5 Working Capital
Working capital is the cost that must be made available by PT. Karya Bumi Baratama in
order to meet the need for mining production until the period where the company may
obtain revenue from coal selling so that it is able to finance production by itself.
Therefore, working capital required in this coal mining project included cash,
remuneration of part-time workers, as well as ownership cost and operating cost.
91
Source of Fund
Source of fund for PT. Karya Bumi Baratama coal mining project is assumed and
calculated deriving from Bank’s loan and self capital (equity) in the proportion of 70%
and 30%. 70% of investment cost derives from bank’s loan and 30% derives from self
capital (equity).
In such proportion of debt and equity, the capital structure is expected to be optimal for
the implementation of PT. Karya Bumi Baratama coal mining project in consideration
of the present general economic and financial condition of the company. The loan
deriving from bank will be calculated with the 6% annual interest rate as long-term loan.
Detailed need for investment, including the calculation of depreciation and cost, is
presented in Table 13.1 through Table 13.10, as follows:
92
Table 13.1 Investment Need for Major Equipments

NO EQUIPMENT TYPE MODEL PEAK YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
A WASTE REMOVAL EQUIPMENT

1 Drilling machine D245KS 2 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
2 Drilling machine SKF50
3 Bulldozers D-375 12 2 4 7 10 11 12 12 12 12 12 12 12 12 12 12 12 12 12 12 10 10 10 10 10 10 10 10 10 10 10
4 Bulldozers D-155 6 1 2 4 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 5 5 5
5 Bulldozers D-85SS 13 3 5 8 11 12 13 13 13 13 13 13 13 13 13 13 13 13 13 13 11 11 11 11 11 11 11 11 11 11 11
6 Hydraulic Excavators EX5500
8 Hydraulic Excavators EX2500 12 3 7 10 11 12 12 12 12 12 12 12 12 12 12 12 12 12 12 10 10 10 10 10 10 10 10 10 10 10
9 Hydraulic Excavators PC-400 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
10 Hydraulic Excavators PC-1250SP-7 4 2 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
11 Hydraulic Excavators PC-750SE 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
12 Rigid dumptruck HD-1500
13 Rigid dumptruck HD-785 158 17 56 96 138 158 104 104 104 104 104 104 104 104 104 104 104 104 104 104 87 87 87 87 87 87 87 87 87 87 87
15 Rigid dumptruck CWB-520 41 34 38 38 36 41 19 19 19 19 19 19 19 19 19 19 19 19 19 19 17 17 17 17 17 17 17 17 17 17 17
B COAL WINNING EQUIPMENT

16 Drilling machine D50KS
17 Wheel Loader WA-600 11 1 4 6 9 10 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11 11
18 Rigid dumptruck FH-16 144 17 52 86 121 138 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144
19 Set Vessel SET-120 144 17 52 86 121 138 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144 144
22 Hydraulic Excavators PC-750SE 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
23 Hydraulic Excavators PC-1250SP-7 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
24 Rigid dumptruck HD-785 14 7 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14 14
25 Rigid dumptruck CWB-520 7 7
26 Rigid dumptruck P-124 6x4 28 7 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28 28
C SUPPORT
27 Motor Grader GD-825A-2
28 Motor Grader GD-705A-1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
29 Motor Grader GD-510R-1
30 Compactor BW212 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
31 Water truck CWB-520wt 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
32 water pump MFV 420 S 28 5 9 9 9 9 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 18 28 28 28
34 Bulldozers D-85SS 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
TOTAL 644 127 274 404 537 602 550 550 550 550 550 550 550 550 550 550 550 550 550 550 524 524 524 524 524 524 524 524 534 534 534
93
Table 13.2 Total Initial Equipments, Addition and Replacement

NO EQUIPMENT TYPE MODEL YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

1 Drilling machine D245KS 1 1 1 1 1 1 1 1 1 1 1 1 1
3 Bulldozers D-375 3 2 2 3 3 1 3 2 3 3 1 3 2 3 3 1 3 2 3 3 2 2 3 3 2 2 3 3
4 Bulldozers D-155 2 1 1 2 1 1 1 1 2 1 1 1 1 2 1 1 1 1 2 1 1 1 2 1 1 1 2 1
5 Bulldozers D-85SS 4 3 2 3 3 1 4 2 3 3 1 4 2 3 3 1 4 2 3 3 3 2 3 3 3 2 3 3
8 Hydraulic Excavators EX2500 4 3 4 3 1 1 3 4 3 1 1 3 4 1 1 1 3 4 1 1 1
9 Hydraulic Excavators PC-400 1 1 1 1 1 1 1 1 1 1 1 1 1
10 Hydraulic Excavators PC-1250SP-7 2 2 1 1 2 1 1 2 1 1 2 1 1 2 1 1 2 1 1
11 Hydraulic Excavators PC-750SE 2 2 1 1 1 1 1
13 Rigid dumptruck HD-785 42 17 39 40 42 20 2 40 42 20 2 40 42 20 2 40 42 3 2 40 42 3 2 40 42 3
15 Rigid dumptruck CWB-520 34 34 4 3 12 4 3 12 4 3 12 4 1 12 4 1 12 4 1

17 Wheel Loader WA-600 3 1 3 2 3 1 2 3 2 3 1 2 3 2 3 1 2 3 2 3 1 2 3 2 3 1 2 3 2 3 1
18 Rigid dumptruck FH-16 35 17 35 34 35 17 23 35 34 35 17 23 35 34 35 17 23 35 34 35 17 23 35 34 35 17 23 35 34 35 17
19 Set Vessel SET-120 35 17 35 34 35 17 23 35 34 35 17 23 35 34 35 17 23 35 34 35 17 23 35 34 35 17 23 35 34 35 17
20 Hydraulic Excavators PC-200 1 1 1 1 1 1 1 1 1 1 1 1 1
21 Hydraulic Excavators PC-400 2 2 2 2 2 2 2
22 Hydraulic Excavators PC-750SE 2 2 2 2 2 2 2
23 Hydraulic Excavators PC-1250SP-7 1 1 1 1 1 1 1 1 1 1 1 1 1
24 Rigid dumptruck HD-785 7 7 7 7 7 7 7 7 7 7 7 7 7
25 Rigid dumptruck CWB-520 7 7
26 Rigid dumptruck P-124 6x4 21 7 21 7 21 7 21 7 21 7 21 7 21
C SUPPORT
28 Motor Grader GD-705A-1 2 2 2 2 2 2 2
30 Compactor BW212 1 1 1 1 1 1 1
31 Water truck CWB-520wt 2 2 2 2 2 2 2
32 water pump MFV 420 S 14 5 4 14 4 14 4 14 4 14 4 14 4 10
33 Hydraulic Excavators PC-300 1 1 1 1 1 1 1
34 Bulldozers D-85SS 2 2 2 2 2 2 2
TOTAL 231 127 154 130 135 63 105 114 126 132 65 108 117 127 133 62 104 114 129 136 41 103 115 126 132 40 105 118 137 133 41
94
Table 13.3 Investment Cost for Initial and Additional Equipments (US$)
NO EQUIPMENT TYPE MODEL UNIT PRICE TOTAL YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Drilling machine D245KS 807,449 18,100,359 839,746 908,270 1,021,680 1,105,049 1,243,030 1,344,461
2 Drilling machine SKF50 801,729 0
3 Bulldozers D-375 569,610 68,132,622 1,139,220 1,184,789 1,848,271 1,922,201 666,363 2,079,053 1,441,477 2,248,704 2,338,652 810,733 2,529,486 1,753,777 2,735,892 2,845,328 986,380
4 Bulldozers D-155 376,380 22,393,061 376,380 391,435 814,185 423,376 440,311 457,924 476,241 990,581 515,102 535,706 557,134 579,420 1,205,193 626,700 651,768
5 Bulldozers D-85SS 201,375 26,172,214 604,125 418,860 653,422 679,558 235,580 980,014 509,607 794,987 826,787 286,619 1,192,337 620,015 967,224 1,005,913 348,716
6 Hydraulic Excavators EX5500 5,265,000 0
7 Hydraulic Excavators EX3600 4,677,750 0
8 Hydraulic Excavators EX2500 2,646,000 211,401,385 8,255,520 11,447,654 8,929,170 3,095,446 3,219,264 11,298,249 15,666,906 12,220,186 4,236,331 4,405,785
9 Hydraulic Excavators PC-400 297,000 6,273,767 297,000 308,880 361,346 375,800 439,633 457,218
10 Hydraulic Excavators PC-1250SP-7 774,598 33,405,554 1,549,195 805,582 871,317 1,884,833 980,113 1,060,090 2,293,187 1,192,457 1,289,762
11 Hydraulic Excavators PC-750SE 541,512 6,148,760 1,083,024 658,832 801,570
12 Rigid dumptruck HD-1500 1,278,000 0
13 Rigid dumptruck HD-785 739,476 831,227,650 12,571,092 29,993,147 31,992,690 34,936,017 17,301,647 1,871,346 38,923,999 42,505,007 21,050,099 2,276,779 47,356,996 51,713,840 25,610,663
14 Rigid dumptruck HD-465 495,104 0
15 Rigid dumptruck CWB-520 77,391 16,259,615 2,631,294 321,947 271,610 1,129,896 391,697 330,455 1,374,691 476,560 402,049

16 Drilling machine D50KS 604,980 0
17 Wheel Loader WA-600 404,010 49,076,288 404,010 1,260,511 873,954 1,363,369 472,635 983,080 1,533,605 1,063,299 1,658,747 575,032 1,196,067 1,865,864 1,293,666 2,018,119 699,615
18 Rigid dumptruck FH-16 173,622 278,397,200 2,951,570 6,319,831 6,384,835 6,835,529 3,452,919 4,858,460 7,689,041 7,768,128 8,316,467 4,201,004 5,911,059 9,354,894 9,451,116 10,118,253 5,111,163
19 Set Vessel SET-120 128,150 205,484,981 2,178,554 4,664,668 4,712,647 5,045,304 2,548,600 3,586,029 5,675,281 5,733,656 6,138,384 3,100,761 4,362,953 6,904,848 6,975,869 7,468,283 3,772,550
20 Hydraulic Excavators PC-200 199,800 4,489,197 199,800 233,738 243,087 284,378 295,753 345,989
21 Hydraulic Excavators PC-400 297,000 6,150,751 594,000 722,692 879,265
22 Hydraulic Excavators PC-750SE 541,512 11,663,078 1,126,345 1,370,371 1,667,266
23 Hydraulic Excavators PC-1250SP-7 774,598 17,697,614 837,805 871,317 1,019,318 1,060,090 1,240,156 1,289,762
24 Rigid dumptruck HD-785 739,476 118,266,214 5,598,721 5,822,670 6,811,700 7,084,168 8,287,474 8,618,973
25 Rigid dumptruck CWB-520 77,391 541,737 541,737
26 Rigid dumptruck P-124 6x4 129,430 38,652,129 906,013 2,826,761 1,102,303 3,439,187 1,341,121 4,184,297
C SUPPORT
27 Motor Grader GD-825A-2 410,339 0
28 Motor Grader GD-705A-1 246,527 5,105,486 493,055 599,877 729,842
29 Motor Grader GD-510R-1 0
30 Compactor BW212 114,953 1,190,311 114,953 139,857 170,158
31 Water truck CWB-520wt 89,640 1,856,409 179,280 218,122 265,378
32 water pump MFV 420 S 274,210 57,001,954 1,371,051 1,140,714 4,670,661 1,387,854 5,682,573 1,688,536
33 Hydraulic Excavators PC-300 243,000 2,516,216 243,000 295,647 359,699
34 Bulldozers D-85SS 201,375 4,170,396 402,750 490,007 596,168
TOTAL 2,041,774,937 30,831,102 59,858,735 65,164,183 68,608,100 28,718,847 28,680,983 28,163,299 65,354,371 72,608,542 42,473,035 46,644,980 46,485,146 83,749,916 92,745,178 37,928,894
95
Table 13.3 Investment Cost for Initial and Additional Equipments (US$) (continuation)
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

1 Drilling machine D245KS 1,512,336 1,635,743 1,839,988 1,990,131 2,238,627 2,421,298
3 Bulldozers D-375 3,077,506 2,133,738 3,328,631 3,461,776 2,496,171 2,596,018 4,049,788 4,211,780 3,036,974 3,158,453 4,927,187 5,124,274
4 Bulldozers D-155 677,839 704,953 1,466,302 762,477 824,695 857,683 1,783,980 927,670 1,003,367 1,043,502 2,170,485 1,128,652
5 Bulldozers D-85SS 1,450,660 754,343 1,176,775 1,223,846 1,323,712 917,774 1,431,727 1,488,996 1,610,498 1,116,612 1,741,915 1,811,592
8 Hydraulic Excavators EX2500 15,462,434 21,441,242 5,574,723 5,797,712 6,029,620 21,161,409 29,343,820 7,629,393 7,934,569 8,251,952
9 Hydraulic Excavators PC-400 534,880 556,275 650,764 676,794 791,753 823,424
10 Hydraulic Excavators PC-1250SP-7 2,790,013 1,450,807 1,569,193 3,394,477 1,765,128 1,909,163 4,129,901 2,147,548 2,322,788
11 Hydraulic Excavators PC-750SE 975,233 1,186,519 1,443,582
13 Rigid dumptruck HD-785 2,770,049 57,617,027 62,917,793 4,673,893 3,370,189 70,099,923 76,549,116 5,686,506 4,100,350 85,287,274 93,133,704 6,918,504
15 Rigid dumptruck CWB-520 1,672,522 579,808 163,051 2,034,879 705,425 198,377 2,475,741 858,257 241,356

17 Wheel Loader WA-600 1,455,198 2,270,109 1,573,943 2,455,350 851,188 1,770,471 2,761,935 1,914,942 2,987,309 1,035,601 2,154,049 3,360,317 2,329,819 3,634,518 1,259,966
18 Rigid dumptruck FH-16 7,191,708 11,381,659 11,498,727 12,310,402 6,218,512 8,749,812 13,847,528 13,989,960 14,977,487 7,565,770 10,645,484 16,847,636 17,020,926 18,222,403 9,204,917
19 Set Vessel SET-120 5,308,200 8,400,803 8,487,211 9,086,308 4,589,884 6,458,236 10,220,861 10,325,990 11,054,883 5,584,295 7,857,432 12,435,240 12,563,146 13,449,956 6,794,149
20 Hydraulic Excavators PC-200 359,829 420,948 437,786 512,148 532,634 623,107
21 Hydraulic Excavators PC-400 1,069,760 1,301,527 1,583,507
22 Hydraulic Excavators PC-750SE 2,028,484 2,467,961 3,002,651
23 Hydraulic Excavators PC-1250SP-7 1,508,839 1,569,193 1,835,733 1,909,163 2,233,450 2,322,788
24 Rigid dumptruck HD-785 10,082,980 10,486,299 12,267,486 12,758,186 14,925,273 15,522,284
25 Rigid dumptruck CWB-520
26 Rigid dumptruck P-124 6x4 1,631,678 5,090,837 1,985,186 6,193,781 2,415,283 7,535,682
C SUPPORT
28 Motor Grader GD-705A-1 887,964 1,080,344 1,314,404
30 Compactor BW212 207,023 251,875 306,445
31 Water truck CWB-520wt 322,873 392,825 477,931
32 water pump MFV 420 S 6,913,719 2,054,362 8,411,596 2,499,446 10,233,993 3,040,958 7,906,491
33 Hydraulic Excavators PC-300 437,629 532,443 647,798
34 Bulldozers D-85SS 725,330 882,475 1,073,666
TOTAL 37,689,564 41,688,562 112,202,868 128,919,622 22,492,199 49,963,507 56,750,130 117,699,530 130,763,883 20,582,697 74,895,851 91,053,076 158,735,359 167,028,827 33,293,950
96
Table 13.4 Acquisition cost of major equipment (US$)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Drilling machine D245KS 839,746 839,746 1,748,016 1,748,016 1,748,016 2,769,696 2,769,696 3,874,745 3,874,745 3,874,745 5,117,775 5,117,775 6,462,236 6,462,236
3 Bulldozers D-375 1,139,220 2,324,009 4,172,279 6,094,481 6,760,844 8,839,897 10,281,374 12,530,077 14,868,729 15,679,462 18,208,948 19,962,724 22,698,616 25,543,944 26,530,324
4 Bulldozers D-155 376,380 767,815 1,582,000 2,005,377 2,445,688 2,903,612 3,379,853 4,370,433 4,885,536 5,421,242 5,978,376 6,557,796 7,762,989 8,389,689 9,041,457
5 Bulldozers D-85SS 604,125 1,022,985 1,676,407 2,355,965 2,591,545 3,571,559 4,081,166 4,876,154 5,702,941 5,989,560 7,181,897 7,801,912 8,769,135 9,775,048 10,123,764
8 Hydraulic Excavators EX2500 8,255,520 19,703,174 28,632,345 31,727,791 34,947,054 34,947,054 34,947,054 34,947,054 46,245,303 61,912,209 74,132,395 78,368,726 82,774,511 82,774,511
9 Hydraulic Excavators PC-400 297,000 605,880 605,880 605,880 605,880 967,226 1,343,026 1,343,026 1,343,026 1,343,026 1,782,658 2,239,876 2,239,876 2,239,876 2,239,876
10 Hydraulic Excavators PC-1250SP-7 1,549,195 2,354,777 2,354,777 3,226,094 3,226,094 5,110,926 6,091,040 6,091,040 7,151,130 7,151,130 9,444,317 10,636,775 10,636,775 11,926,537 11,926,537
11 Hydraulic Excavators PC-750SE 1,083,024 1,083,024 1,083,024 1,083,024 1,083,024 1,741,856 1,741,856 1,741,856 1,741,856 1,741,856 2,543,426 2,543,426 2,543,426 2,543,426 2,543,426
13 Rigid dumptruck HD-785 12,571,092 42,564,239 74,556,928 109,492,945 126,794,592 126,794,592 128,665,938 167,589,937 210,094,943 231,145,042 231,145,042 233,421,821 280,778,817 332,492,656 358,103,320
15 Rigid dumptruck CWB-520 2,631,294 2,953,241 2,953,241 2,953,241 3,224,850 4,354,746 4,746,443 4,746,443 4,746,443 5,076,898 6,451,589 6,928,148 6,928,148 6,928,148 7,330,197

17 Wheel Loader WA-600 404,010 1,664,521 2,538,476 3,901,845 4,374,479 5,357,559 6,891,164 7,954,463 9,613,210 10,188,242 11,384,309 13,250,173 14,543,839 16,561,958 17,261,573
19 Set Vessel SET-120 2,178,554 6,843,221 11,555,868 16,601,173 19,149,772 22,735,801 28,411,083 34,144,738 40,283,123 43,383,884 47,746,837 54,651,684 61,627,553 69,095,836 72,868,386
20 Hydraulic Excavators PC-200 199,800 199,800 199,800 199,800 433,538 676,625 676,625 676,625 676,625 961,003 1,256,755 1,256,755 1,256,755 1,256,755 1,602,744
21 Hydraulic Excavators PC-400 594,000 594,000 594,000 594,000 594,000 1,316,692 1,316,692 1,316,692 1,316,692 1,316,692 2,195,957 2,195,957 2,195,957 2,195,957 2,195,957
22 Hydraulic Excavators PC-750SE 1,126,345 1,126,345 1,126,345 1,126,345 1,126,345 2,496,716 2,496,716 2,496,716 2,496,716 2,496,716 4,163,982 4,163,982 4,163,982 4,163,982
23 Hydraulic Excavators PC-1250SP-7 837,805 1,709,122 1,709,122 1,709,122 1,709,122 2,728,439 3,788,530 3,788,530 3,788,530 3,788,530 5,028,685 6,318,447 6,318,447
24 Rigid dumptruck HD-785 5,598,721 11,421,390 11,421,390 11,421,390 11,421,390 18,233,090 25,317,258 25,317,258 25,317,258 25,317,258 33,604,732 42,223,705 42,223,705
25 Rigid dumptruck CWB-520 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737 541,737
26 Rigid dumptruck P-124 6x4 906,013 3,732,774 3,732,774 3,732,774 3,732,774 4,835,077 8,274,264 8,274,264 8,274,264 8,274,264 9,615,385 13,799,681 13,799,681 13,799,681 13,799,681
C SUPPORT
28 Motor Grader GD-705A-1 493,055 493,055 493,055 493,055 493,055 1,092,932 1,092,932 1,092,932 1,092,932 1,092,932 1,822,773 1,822,773 1,822,773 1,822,773 1,822,773
30 Compactor BW212 114,953 114,953 114,953 114,953 114,953 254,810 254,810 254,810 254,810 254,810 424,968 424,968 424,968 424,968 424,968
31 Water truck CWB-520wt 179,280 179,280 179,280 179,280 179,280 397,402 397,402 397,402 397,402 397,402 662,780 662,780 662,780 662,780 662,780
32 water pump MFV 420 S 1,371,051 2,511,765 2,511,765 2,511,765 2,511,765 7,182,426 8,570,280 8,570,280 8,570,280 8,570,280 14,252,853 15,941,389 15,941,389 15,941,389 15,941,389
33 Hydraulic Excavators PC-300 243,000 243,000 243,000 243,000 243,000 538,647 538,647 538,647 538,647 538,647 898,346 898,346 898,346 898,346 898,346
34 Bulldozers D-85SS 402,750 402,750 402,750 402,750 402,750 892,757 892,757 892,757 892,757 892,757 1,488,925 1,488,925 1,488,925 1,488,925 1,488,925
TOTAL 30,831,102 90,689,837 155,854,020 224,462,120 253,180,967 281,861,950 310,025,249 375,379,620 447,988,162 490,461,198 537,106,178 583,591,323 667,341,240 760,086,418 798,015,312
97
Table 13.4 Acquisition cost of major equipment (US$) (continuation)

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

1 Drilling machine D245KS 6,462,236 7,974,572 7,974,572 9,610,315 9,610,315 9,610,315 11,450,302 11,450,302 13,440,433 13,440,433 13,440,433 15,679,060 15,679,060 18,100,358 18,100,358
3 Bulldozers D-375 29,607,830 31,741,568 35,070,199 38,531,975 38,531,975 41,028,146 43,624,164 47,673,953 51,885,733 51,885,733 54,922,707 58,081,160 63,008,346 68,132,621 68,132,621
4 Bulldozers D-155 9,719,297 10,424,249 11,890,551 12,653,028 12,653,028 13,477,723 14,335,405 16,119,385 17,047,055 17,047,055 18,050,422 19,093,925 21,264,409 22,393,061 22,393,061
5 Bulldozers D-85SS 11,574,424 12,328,768 13,505,543 14,729,389 14,729,389 16,053,102 16,970,875 18,402,603 19,891,599 19,891,599 21,502,097 22,618,709 24,360,624 26,172,216 26,172,216
8 Hydraulic Excavators EX2500 82,774,511 82,774,511 98,236,945 119,678,187 125,252,910 131,050,622 137,080,242 137,080,242 137,080,242 137,080,242 158,241,651 187,585,471 195,214,864 203,149,433 211,401,385
9 Hydraulic Excavators PC-400 2,774,756 3,331,032 3,331,032 3,331,032 3,331,032 3,981,795 4,658,589 4,658,589 4,658,589 4,658,589 5,450,343 6,273,766 6,273,766 6,273,766 6,273,766
15 Rigid dumptruck CWB-520 9,002,719 9,582,526 9,582,526 9,582,526 9,745,577 11,780,456 12,485,880 12,485,880 12,485,880 12,684,257 15,159,998 16,018,255 16,018,255 16,018,255 16,259,610

17 Wheel Loader WA-600 18,716,771 20,986,881 22,560,823 25,016,174 25,867,362 27,637,833 30,399,768 32,314,710 35,302,019 36,337,620 38,491,669 41,851,986 44,181,805 47,816,323 49,076,290
19 Set Vessel SET-120 78,176,586 86,577,388 95,064,599 104,150,908 108,740,791 115,199,028 125,419,889 135,745,879 146,800,762 152,385,058 160,242,490 172,677,730 185,240,875 198,690,831 205,484,980
26 Rigid dumptruck P-124 6x4 15,431,360 20,522,196 20,522,196 20,522,196 20,522,196 22,507,382 28,701,163 28,701,163 28,701,163 28,701,163 31,116,446 38,652,128 38,652,128 38,652,128 38,652,128
C SUPPORT
28 Motor Grader GD-705A-1 2,710,737 2,710,737 2,710,737 2,710,737 2,710,737 3,791,081 3,791,081 3,791,081 3,791,081 3,791,081 5,105,485 5,105,485 5,105,485 5,105,485 5,105,485
30 Compactor BW212 631,991 631,991 631,991 631,991 631,991 883,866 883,866 883,866 883,866 883,866 1,190,310 1,190,310 1,190,310 1,190,310 1,190,310
31 Water truck CWB-520wt 985,653 985,653 985,653 985,653 985,653 1,378,477 1,378,477 1,378,477 1,378,477 1,378,477 1,856,409 1,856,409 1,856,409 1,856,409 1,856,409
32 water pump MFV 420 S 22,855,108 24,909,470 24,909,470 24,909,470 24,909,470 33,321,067 35,820,513 35,820,513 35,820,513 35,820,513 46,054,506 49,095,464 57,001,954 57,001,954 57,001,954
34 Bulldozers D-85SS 2,214,255 2,214,255 2,214,255 2,214,255 2,214,255 3,096,730 3,096,730 3,096,730 3,096,730 3,096,730 4,170,396 4,170,396 4,170,396 4,170,396 4,170,396
TOTAL 835,704,876 877,393,438 989,596,307 1,118,515,929 1,141,008,128 1,190,971,635 1,247,721,765 1,365,421,295 1,496,185,178 1,516,767,875 1,591,663,726 1,682,716,802 1,841,452,161 2,008,480,988 2,041,774,937
98
Table 13.5 Depreciation of Major Equipments (US$)

NO EQUIPMENT TYPE MODEL TOTAL sum YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1 Drilling machine D245KS 5 16,199,854 16,199,853 167,949 167,949 349,603 349,603 349,603 385,990 385,990 425,346 425,346 425,346 469,616 469,616 517,498 517,498
2 Drilling machine SKF50 5
3 Bulldozers D-375 5 62,455,491 62,455,494 227,844 464,802 834,456 1,218,896 1,352,169 1,540,135 1,591,473 1,671,560 1,754,850 1,783,724 1,873,810 1,936,270 2,033,708 2,135,043 2,170,172
4 Bulldozers D-155 5 20,638,976 20,638,975 75,276 153,563 316,400 401,075 489,138 505,446 522,407 557,687 576,032 595,111 614,953 635,589 678,511 700,831 724,043
5 Bulldozers D-85SS 5 24,165,173 24,165,169 120,825 204,597 335,281 471,193 518,309 593,487 611,636 639,949 669,395 679,603 722,067 744,149 778,596 814,421 826,841
6 Hydraulic Excavators EX5500 8
7 Hydraulic Excavators EX3600 8
8 Hydraulic Excavators EX2500 8 170,854,191 170,854,189 1,031,940 2,462,897 3,579,043 3,965,974 4,368,382 4,368,382 4,368,382 4,368,382 4,748,723 5,276,129 5,687,506 5,830,117 5,978,432 5,978,432
9 Hydraulic Excavators PC-400 5 6,109,082 6,109,081 59,400 121,176 121,176 121,176 121,176 134,045 147,429 147,429 147,429 147,429 163,086 179,370 179,370 179,370 179,370
10 Hydraulic Excavators PC-1250SP-7 5 31,582,372 31,582,370 309,839 470,955 470,955 645,219 645,219 712,346 747,253 747,253 785,007 785,007 866,678 909,147 909,147 955,081 955,081
11 Hydraulic Excavators PC-750SE 5 6,148,761 6,148,760 216,605 216,605 216,605 216,605 216,605 131,766 131,766 131,766 131,766 131,766 160,314 160,314 160,314 160,314 160,314
12 Rigid dumptruck HD-1500 8
13 Rigid dumptruck HD-785 5 734,877,641 734,877,645 2,514,218 8,512,848 14,911,386 21,898,589 25,358,918 22,844,700 17,220,340 18,606,602 20,120,400 20,870,090 20,870,090 20,951,177 22,637,776 24,479,543 25,391,656
14 Rigid dumptruck HD-465 5
15 Rigid dumptruck CWB-520 5 15,894,875 15,894,878 526,259 590,648 590,648 590,648 644,970 344,690 358,641 358,641 358,641 370,410 419,369 436,341 436,341 436,341 450,660

16 Drilling machine D50KS 5
17 Wheel Loader WA-600 5 44,283,615 44,283,615 80,802 332,904 507,695 780,369 874,896 990,710 1,045,328 1,083,197 1,142,273 1,162,753 1,205,350 1,271,802 1,317,875 1,389,750 1,414,666
18 Rigid dumptruck FH-16 5 249,921,927 249,921,926 590,314 1,854,280 3,131,247 4,498,353 5,188,937 5,570,315 5,844,157 6,120,815 6,417,003 6,566,620 6,777,140 7,110,310 7,446,908 7,807,265 7,989,297
19 Set Vessel SET-120 5 184,467,381 184,467,380 435,711 1,368,644 2,311,174 3,320,235 3,829,954 4,111,450 4,313,572 4,517,774 4,736,390 4,846,822 5,002,207 5,248,120 5,496,563 5,762,543 5,896,900
22 Hydraulic Excavators PC-750SE 5 11,062,547 11,062,545 225,269 225,269 225,269 225,269 225,269 274,074 274,074 274,074 274,074 274,074 333,453 333,453 333,453 333,453
23 Hydraulic Excavators PC-1250SP-7 5 15,410,561 15,410,561 167,561 341,824 341,824 341,824 341,824 378,127 415,882 415,882 415,882 415,882 460,049 505,984 505,984
24 Rigid dumptruck HD-785 5 102,982,734 102,982,736 1,119,744 2,284,278 2,284,278 2,284,278 2,284,278 2,526,874 2,779,174 2,779,174 2,779,174 2,779,174 3,074,328 3,381,290 3,381,290
25 Rigid dumptruck CWB-520 5 541,737 541,735 108,347 108,347 108,347 108,347 108,347
26 Rigid dumptruck P-124 6x4 5 37,144,991 37,144,990 181,203 746,555 746,555 746,555 746,555 785,813 908,298 908,298 908,298 908,298 956,061 1,105,083 1,105,083 1,105,083 1,105,083
C SUPPORT
27 Motor Grader GD-825A-2 5
28 Motor Grader GD-705A-1 5 5,105,485 98,611 98,611 98,611 98,611 98,611 119,975 119,975 119,975 119,975 119,975 145,968 145,968 145,968 145,968 145,968
29 Motor Grader GD-510R-1 5
30 Compactor BW212 5 1,190,310 22,991 22,991 22,991 22,991 22,991 27,971 27,971 27,971 27,971 27,971 34,032 34,032 34,032 34,032 34,032
31 Water truck CWB-520wt 5 1,856,409 35,856 35,856 35,856 35,856 35,856 43,624 43,624 43,624 43,624 43,624 53,076 53,076 53,076 53,076 53,076
32 water pump MFV 420 S 5 53,231,167 274,210 502,353 502,353 502,353 502,353 1,162,275 1,211,703 1,211,703 1,211,703 1,211,703 1,414,085 1,474,222 1,474,222 1,474,222 1,474,222
33 Hydraulic Excavators PC-300 5 2,516,216 48,600 48,600 48,600 48,600 48,600 59,129 59,129 59,129 59,129 59,129 71,940 71,940 71,940 71,940 71,940
34 Bulldozers D-85SS 5 4,170,396 80,550 80,550 80,550 80,550 80,550 98,001 98,001 98,001 98,001 98,001 119,234 119,234 119,234 119,234 119,234
TOTAL 1,815,748,507 6,166,220 17,518,803 29,693,066 42,744,998 48,256,609 47,644,541 43,018,333 45,345,902 47,872,424 49,301,266 51,004,213 52,711,082 55,685,536 58,907,752 60,183,413
99
Table 13.5 Depreciation of Major Equipment (US$) (continuation)

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

1 Drilling machine D245KS 517,498 571,359 571,359 629,616 629,616 629,616 695,146 695,146 766,024 766,024 766,024 845,751 845,751 931,985 931,985
3 Bulldozers D-375 2,279,777 2,355,769 2,474,317 2,597,606 2,400,330 2,284,063 2,376,519 2,520,751 2,670,752 2,670,752 2,778,912 2,891,399 3,066,879 3,249,378 3,249,378
4 Bulldozers D-155 748,184 773,291 825,512 852,668 722,314 751,685 782,231 845,767 878,805 878,805 914,540 951,704 1,029,005 1,069,201 1,069,201
5 Bulldozers D-85SS 878,506 905,371 947,281 990,868 921,125 895,735 928,422 979,412 1,032,442 1,032,442 1,089,799 1,129,567 1,191,604 1,256,123 1,256,123
8 Hydraulic Excavators EX2500 5,978,432 5,978,432 6,498,955 7,220,747 6,390,064 6,585,237 6,788,216 6,788,216 6,788,216 6,788,216 7,500,588 8,488,411 8,745,244 9,012,351 9,290,143
11 Hydraulic Excavators PC-750SE 195,047 195,047 195,047 195,047 195,047 237,304 237,304 237,304 237,304 237,304 288,716 288,716 288,716 288,716 288,716

17 Wheel Loader WA-600 1,466,493 1,547,342 1,603,397 1,690,843 1,721,158 1,784,212 1,882,578 1,950,777 2,057,169 2,094,052 2,170,767 2,290,443 2,373,419 2,502,861 2,547,734
19 Set Vessel SET-120 6,085,950 6,385,141 6,687,409 7,011,014 7,174,481 7,404,488 7,768,500 8,136,256 8,529,971 8,728,853 9,008,692 9,451,568 9,898,999 10,378,014 10,619,985
22 Hydraulic Excavators PC-750SE 333,453 405,697 405,697 405,697 405,697 405,697 493,592 493,592 493,592 493,592 493,592 600,530 600,530 600,530 600,530
23 Hydraulic Excavators PC-1250SP-7 505,984 505,984 559,720 615,606 615,606 615,606 615,606 680,985 748,979 748,979 748,979 748,979 828,523 911,248 911,248
25 Rigid dumptruck CWB-520
26 Rigid dumptruck P-124 6x4 1,163,195 1,344,503 1,344,503 1,344,503 1,344,503 1,415,205 1,635,793 1,635,793 1,635,793 1,635,793 1,721,813 1,990,193 1,990,193 1,990,193 1,990,193
C SUPPORT
28 Motor Grader GD-705A-1 177,593 177,593 177,593 177,593 177,593 216,069 216,069 216,069 216,069 216,069 262,881 262,881 262,881 262,881 262,881
30 Compactor BW212 41,405 41,405 41,405 41,405 41,405 50,375 50,375 50,375 50,375 50,375 61,289 61,289 61,289 61,289 61,289
31 Water truck CWB-520wt 64,575 64,575 64,575 64,575 64,575 78,565 78,565 78,565 78,565 78,565 95,586 95,586 95,586 95,586 95,586
32 water pump MFV 420 S 1,720,451 1,793,616 1,793,616 1,793,616 1,793,616 2,093,192 2,182,208 2,182,208 2,182,208 2,182,208 2,546,688 2,654,990 4,236,288 4,236,288 4,236,288
34 Bulldozers D-85SS 145,066 145,066 145,066 145,066 145,066 176,495 176,495 176,495 176,495 176,495 214,733 214,733 214,733 214,733 214,733
TOTAL 61,613,638 63,189,802 67,155,695 71,617,358 66,492,948 68,090,342 70,210,967 74,402,786 78,952,910 79,574,699 82,330,953 85,651,884 92,590,005 98,393,034 99,427,327
100
Table 13.6 Investment Cost for Minor Equipment (US$)

NO EQUIPMENT TYPE MODEL UNIT QUANTITY TOTAL YEAR
PRICE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 COAL Fire Extinguishment D-85SS 223,750

2 COAL Fire Extinguishment PC-300 270,000
3 COAL Fire Extinguishment CWB-520wt 116,700 TRUE
4 Workshop Tools 215,650 1 1,823,423 215,650 272,866 345,263
5 Tyre Handler WA 500 302,500 2 8,933,171 605,000 707,764 827,984 968,624
6 Truck Crane MANITOU 181,500 1 2,679,951 181,500 212,329 248,395 290,587
7 Genset (All) 100 KVA 41,250 6 247,500 247,500
8 Tower Lamp 6 x 5000 W 14,300 10 2,111,477 143,000 167,290 195,705 228,948
9 Blasthole Pump Legra 66,000 1 974,528 66,000 77,211 90,326 105,668
10 ANFO TRUCK FL-10 ANT 220,000 2 6,496,852 440,000 514,738 602,170 704,454
11 Substation and Cable 350,000 0
12 Ambulance 28,600 1 241,826 28,600 36,188 45,790
13 Fuel Truck Scania 137,500 4 8,121,064 550,000 643,422 752,713 880,568
14 Fuel Storage x 500 kL 123,200 3 369,600 369,600
15 Lube Car Scania 198,000 2 5,847,166 396,000 463,264 541,953 634,009
16 Water Pump 13,200 2 389,811 26,400 30,884 36,130 42,267
17 Low Boy LBT-120 115,500 1 1,705,424 115,500 135,119 158,070 184,919
36 39,941,793 3,384,750 - - - 2,952,021 - 309,054 - 3,453,447 - - - 4,431,097 - -
Table 13.6 Investment Cost for Minor Equipment (US$) (continuation)

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
1 COAL Fire Extinguishment D-85SS

2 COAL Fire Extinguishment PC-300
3 COAL Fire Extinguishment CWB-520wt
4 Workshop Tools 436,867 552,777
5 Tyre Handler WA 500 1,133,154 1,325,630 1,550,799 1,814,216
6 Truck Crane MANITOU 339,946 397,689 465,240 544,265
7 Genset (All) 100 KVA
8 Tower Lamp 6 x 5000 W 267,836 313,331 366,552 428,815
9 Blasthole Pump Legra 123,617 144,614 169,178 197,914
ANFO TRUCK FL-10 ANT 824,112 964,094 1,127,854 1,319,429
10 Substation and Cable
11 Ambulance 57,938 73,310
12 Fuel Truck Scania 1,030,140 1,205,118 1,409,817 1,649,287
13 Fuel Storage x 500 kL
14 Lube Car Scania 741,701 867,685 1,015,068 1,187,487
15 Water Pump 49,447 57,846 67,671 79,166
16 Low Boy LBT-120 216,329 253,075 296,062 346,350
- 4,726,281 - 494,806 - 5,529,080 - - - 7,094,329 - - - 7,566,928 -
101
Table 13.7 Acquisition Value Of Minor Equipment (US$)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

4 Workshop Tools 215,650 215,650 215,650 215,650 215,650 215,650 488,516 488,516 488,516 488,516 488,516 488,516 833,779 833,779 833,779
5 Tyre Handler WA 500 605,000 605,000 605,000 605,000 1,312,764 1,312,764 1,312,764 1,312,764 2,140,749 2,140,749 2,140,749 2,140,749 3,109,373 3,109,373 3,109,373
6 Truck Crane MANITOU 181,500 181,500 181,500 181,500 393,829 393,829 393,829 393,829 642,225 642,225 642,225 642,225 932,812 932,812 932,812
7 Genset (All) 100 KVA 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500
8 Tower Lamp 6 x 5000 W 143,000 143,000 143,000 143,000 310,290 310,290 310,290 310,290 505,995 505,995 505,995 505,995 734,943 734,943 734,943
9 Blasthole Pump Legra 66,000 66,000 66,000 66,000 143,211 143,211 143,211 143,211 233,536 233,536 233,536 233,536 339,204 339,204 339,204
ANFO TRUCK FL-10 ANT 440,000 440,000 440,000 440,000 954,738 954,738 954,738 954,738 1,556,908 1,556,908 1,556,908 1,556,908 2,261,362 2,261,362 2,261,362
10 Substation and Cable 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
11 Ambulance 28,600 28,600 28,600 28,600 28,600 28,600 64,788 64,788 64,788 64,788 64,788 64,788 110,578 110,578 110,578
12 Fuel Truck Scania 550,000 550,000 550,000 550,000 1,193,422 1,193,422 1,193,422 1,193,422 1,946,135 1,946,135 1,946,135 1,946,135 2,826,703 2,826,703 2,826,703
13 Fuel Storage x 500 kL 369,600 369,600 369,600 369,600 369,600 369,600 369,600 369,600 369,600 369,600
14 Lube Car Scania 396,000 396,000 396,000 396,000 859,264 859,264 859,264 859,264 1,401,217 1,401,217 1,401,217 1,401,217 2,035,226 2,035,226 2,035,226
15 Water Pump 26,400 26,400 26,400 26,400 57,284 57,284 57,284 57,284 93,414 93,414 93,414 93,414 135,682 135,682 135,682
16 Low Boy LBT-120 115,500 115,500 115,500 115,500 250,619 250,619 250,619 250,619 408,688 408,688 408,688 408,688 593,608 593,608 593,608
3,384,750 3,384,750 3,384,750 3,384,750 6,336,771 6,336,771 6,645,825 6,645,825 10,099,272 10,099,272 9,729,672 9,729,672 14,160,769 14,160,769 14,160,769
102
Table 13.7 Acquisition Value of Minor Equipment (US$) (continuation)

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

4 Workshop Tools 833,779 833,779 833,779 1,270,646 1,270,646 1,270,646 1,270,646 1,270,646 1,270,646 1,823,423 1,823,423 1,823,423 1,823,423 1,823,423 1,823,423
5 Tyre Handler WA 500 3,109,373 4,242,527 4,242,527 4,242,527 4,242,527 5,568,156 5,568,156 5,568,156 5,568,156 7,118,955 7,118,955 7,118,955 7,118,955 8,933,171 8,933,171
6 Truck Crane MANITOU 932,812 1,272,758 1,272,758 1,272,758 1,272,758 1,670,447 1,670,447 1,670,447 1,670,447 2,135,687 2,135,687 2,135,687 2,135,687 2,679,951 2,679,951
7 Genset (All) 100 KVA 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500 247,500
8 Tower Lamp 6 x 5000 W 734,943 1,002,779 1,002,779 1,002,779 1,002,779 1,316,110 1,316,110 1,316,110 1,316,110 1,682,662 1,682,662 1,682,662 1,682,662 2,111,477 2,111,477
9 Blasthole Pump Legra 339,204 462,821 462,821 462,821 462,821 607,435 607,435 607,435 607,435 776,613 776,613 776,613 776,613 974,528 974,528
ANFO TRUCK FL-10 ANT 2,261,362 3,085,474 3,085,474 3,085,474 3,085,474 4,049,568 4,049,568 4,049,568 4,049,568 5,177,422 5,177,422 5,177,422 5,177,422 6,496,852 6,496,852
11 Ambulance 110,578 110,578 110,578 168,516 168,516 168,516 168,516 168,516 168,516 241,826 241,826 241,826 241,826 241,826 241,826
12 Fuel Truck Scania 2,826,703 3,856,843 3,856,843 3,856,843 3,856,843 5,061,960 5,061,960 5,061,960 5,061,960 6,471,778 6,471,778 6,471,778 6,471,778 8,121,064 8,121,064
14 Lube Car Scania 2,035,226 2,776,927 2,776,927 2,776,927 2,776,927 3,644,611 3,644,611 3,644,611 3,644,611 4,659,680 4,659,680 4,659,680 4,659,680 5,847,166 5,847,166
15 Water Pump 135,682 185,128 185,128 185,128 185,128 242,974 242,974 242,974 242,974 310,645 310,645 310,645 310,645 389,811 389,811
16 Low Boy LBT-120 593,608 809,937 809,937 809,937 809,937 1,063,012 1,063,012 1,063,012 1,063,012 1,359,073 1,359,073 1,359,073 1,359,073 1,705,424 1,705,424
14,160,769 18,887,050 18,887,050 19,381,856 19,381,856 24,910,936 24,910,936 24,910,936 24,910,936 32,005,265 32,005,265 32,005,265 32,005,265 39,572,193 39,572,193
103
Table 13.8 Depreciation of Minor Equipment (US$)
NO EQUIPMENT TYPE MODEL LIFE TIME TOTAL YEAR

(YEARS) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 COAL Fire Extinguishment D-85SS 6

2 COAL Fire Extinguishment PC-300 6
3 COAL Fire Extinguishment CWB-520wt 6
4 Workshop Tools 6 1,823,423 35,942 35,942 35,942 35,942 35,942 35,942 45,478 45,478 45,478 45,478 45,478 45,478 57,544 57,544 57,544
5 Tyre Handler WA 500 4 8,026,063 151,250 151,250 151,250 151,250 176,941 176,941 176,941 176,941 206,996 206,996 206,996 206,996 242,156 242,156 242,156
6 Truck Crane MANITOU 4 2,407,819 45,375 45,375 45,375 45,375 53,082 53,082 53,082 53,082 62,099 62,099 62,099 62,099 72,647 72,647 72,647
7 Genset (All) 100 KVA 4 247,500 61,875 61,875 61,875 61,875 0 0 0 0 0 0 0 0 0 0 0
8 Tower Lamp 6 x 5000 W 4 1,897,069 35,750 35,750 35,750 35,750 41,822 41,822 41,822 41,822 48,926 48,926 48,926 48,926 57,237 57,237 57,237
9 Blasthole Pump Legra 4 0
ANFO TRUCK FL-10 ANT 4 0
10 Substation and Cable 10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
11 Ambulance 6 241,826 4,767 4,767 4,767 4,767 4,767 4,767 6,031 6,031 6,031 6,031 6,031 6,031 7,632 7,632 7,632
12 Fuel Truck Scania 4 7,296,421 137,500 137,500 137,500 137,500 160,856 160,856 160,856 160,856 188,178 188,178 188,178 188,178 220,142 220,142 220,142
13 Fuel Storage x 500 kL 10 369,600 36,960 36,960 36,960 36,960 36,960 36,960 36,960 36,960 36,960 36,960
14 Lube Car Scania 4 5,253,423 99,000 99,000 99,000 99,000 115,816 115,816 115,816 115,816 135,488 135,488 135,488 135,488 158,502 158,502 158,502
15 Water Pump 4 350,228 6,600 6,600 6,600 6,600 7,721 7,721 7,721 7,721 9,033 9,033 9,033 9,033 10,567 10,567 10,567
16 Low Boy LBT-120 4 1,532,248 28,875 28,875 28,875 28,875 33,780 33,780 33,780 33,780 39,517 39,517 39,517 39,517 46,230 46,230 46,230
29,445,621 643,893 643,893 643,893 643,893 667,686 667,686 678,487 678,487 778,707 778,707 741,747 741,747 872,656 872,656 872,656
104
Table 13.8 Depreciation of Minor Equipment (US$) (continuation)

16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

4 Workshop Tools 57,544 57,544 57,544 72,811 72,811 72,811 72,811 72,811 72,811 92,129 92,129 92,129 92,129 92,129 92,129
5 Tyre Handler WA 500 242,156 283,288 283,288 283,288 283,288 331,407 331,407 331,407 331,407 387,700 387,700 387,700 387,700 453,554 453,554
6 Truck Crane MANITOU 72,647 84,987 84,987 84,987 84,987 99,422 99,422 99,422 99,422 116,310 116,310 116,310 116,310 136,066 136,066
7 Genset (All) 100 KVA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
8 Tower Lamp 6 x 5000 W 57,237 66,959 66,959 66,959 66,959 78,333 78,333 78,333 78,333 91,638 91,638 91,638 91,638 107,204 107,204
9 Blasthole Pump Legra
ANFO TRUCK FL-10 ANT
11 Ambulance 7,632 7,632 7,632 9,656 9,656 9,656 9,656 9,656 9,656 12,218 12,218 12,218 12,218 12,218 12,218
12 Fuel Truck Scania 220,142 257,535 257,535 257,535 257,535 301,279 301,279 301,279 301,279 352,454 352,454 352,454 352,454 412,322 412,322
14 Lube Car Scania 158,502 185,425 185,425 185,425 185,425 216,921 216,921 216,921 216,921 253,767 253,767 253,767 253,767 296,872 296,872
15 Water Pump 10,567 12,362 12,362 12,362 12,362 14,461 14,461 14,461 14,461 16,918 16,918 16,918 16,918 19,791 19,791
16 Low Boy LBT-120 46,230 54,082 54,082 54,082 54,082 63,269 63,269 63,269 63,269 74,015 74,015 74,015 74,015 86,588 86,588
872,656 1,009,813 1,009,813 1,027,106 1,027,106 1,187,561 1,187,561 1,187,561 1,187,561 1,397,150 1,397,150 1,397,150 1,397,150 1,616,744 1,616,744
105
Table 13.9 General Plant Investment (US$)

PARTICULARS UNIT QUANTITY SIZE TOTAL YEAR
PRICE (M2) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
SHOP & OFFICE 1,998,102 1,157,000 296,564 16,699 74,499 73,350 62,779 19,574 56,848 118,028 2,053 5,748 5,748 5,748 5,748 5,748 5,748
Warehouse 300 1 1,350 405,000 405,000
Explosives Ware House 400 1 200 80,000 80,000
Workshop 800 7 120 672,000 672,000
CULVERT 121,523 16,699 73,150 19,574 12,101
Pipe (HDPE @6 m/pc, steel 300 ; 6") 250 1 467,415 44,400 1,350 73,350 62,779 56,848 105,927 2,053 5,748 5,748 5,748 5,748 5,748 5,748
Field Offices 300 1 832 248,414 248,414
First Aid Room 150 1 25 3,750 3,750
COMPLEX BUILDING 3,640,790 1,234,894 729,208 645,019 659,717 322,359 - - - - - - - - - - -

Staff Ablution 300 1 1 340,134 305,888 10,378 9,319 9,347 4,509
Labor Ablution 250 1 1 2,809,080 582,930 674,730 596,700 610,470 298,350
Dining Room 200 1 100 165,500 20,000 44,100 39,000 39,900 19,500
Praying Place 8,000 1 1 8,000 8,000
Kitchen 150 1 20 3,000 3,000
Water Treatment 25,000 1 1 25,000 25,000
Power Supply 321 1 156 50,076 50,076
Guest House 300 1 100 30,000 30,000
Senior Staff Houses 300 1 150 45,000 45,000
Junior Staff Houses 300 1 300 90,000 90,000
Labor Base Camp (Temporary) 250 1 300 75,000 75,000
INFRASTRUCTURES & OTHERS 304,226,200 304,226,200 - - - - - - - - - - - - - - -

Stock Pile (64 ha)+ ROM di PORT 200,000 4 800,000 800,000
Weight Bridge (60 T) 100,000 1 100,000 100,000
Earth Bund Construction (8.000 x 2 x 1 m) 48,000 2 96,000 96,000
Barge Loader 10,000,000 6 60,000,000 60,000,000
Fuel Station 100,000 2 200,000 200,000
Settling Pond 2 unit (100 x 50 x 4 m) 75,000 2 150,000 150,000
CPP (500 TPH) 2,500,000 3 7,500,000 7,500,000
Road Construction PIT- STP (3 Km) 83,333 3 300,000 300,000
Road Construction PIT - Waste Dump (1.5 Km) 83,333 1.5 150,000 150,000
Road Construction STP - PORT (200 Km) 1,000,000 200 200,000,000 200,000,000
Exploration + Study + Permits 2,530,200 1 2,530,200 2,530,200
Land Compensation Hauling Road (200 Km x 60 m) 5,400,000 1 5,400,000 5,400,000
Land Compensation Minning Area (6.000 ha) 4,500 6,000 27,000,000 27,000,000
GRAND TOTAL 309,865,093 306,618,094 1,025,772 661,718 734,216 395,710 62,779 19,574 56,848 118,028 2,053 5,748 5,748 5,748 5,748 5,748 5,748
106
Table 13.9 General Plant Investment (US$) (continuation)

PARTICULARS YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
SHOP & OFFICE 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748
Warehouse
Explosives Ware House
Workshop
CULVERT
Pipe (HDPE @6 m/pc, steel 300 ; 6") 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748
Field Offices
First Aid Room
COMPLEX BUILDING - - - - - - - - - - - 49,594 - - -

Staff Ablution 694
Labor Ablution 45,900
Dining Room 3,000
Praying Place
Kitchen
Water Treatment
Power Supply
Guest House
Senior Staff Houses
Junior Staff Houses
Labor Base Camp (Temporary)
INFRASTRUCTURES & OTHERS - - - - - - - - - - - - - - -

Stock Pile (64 ha)+ ROM di PORT
Weight Bridge (60 T)
Earth Bund Construction (8.000 x 2 x 1 m)
Barge Loader
Fuel Station
Settling Pond 2 unit (100 x 50 x 4 m)
CPP (500 TPH)
Road Construction PIT- STP (3 Km)
Road Construction PIT - Waste Dump (1.5 Km)
Road Construction STP - PORT (200 Km)
Exploration + Study + Permits
Land Compensation Hauling Road (200 Km x 60 m)
Land Compensation Minning Area (6.000 ha)
GRAND TOTAL 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 55,342 5,748 5,748 5,748
107
Table 13.10 Fixtures and Furniture Investment (US$)
PARTICULARS TOTAL YEAR

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
COMMUNICATION 200,000 20,000 20,000 20,000 20,000 20,000

OFFICE FACILITIES 820,000 10,000 10,000 100,000 100,000 100,000
OPERATION FACILITIES 802,000 1,000 1,000 100,000 100,000 100,000
PLANNING/SURVEY FACILITIES 1,000,000 100,000 100,000 100,000 100,000 100,000
BASE CAMP FACILITIES 820,000 10,000 10,000 100,000 100,000 100,000
WORKSHOP FACILITIES 810,000 5,000 5,000 100,000 100,000 100,000
FIRST AID FACILITIES 800,200 100 100 100,000 100,000 100,000
HOME BUILDING FACILITIES 820,000 10,000 10,000 100,000 100,000 100,000
LABORATORY 802,000 1,000 1,000 100,000 100,000 100,000
OTHERS 804,000 2,000 2,000 100,000 100,000 100,000
7,678,200 159,100 159,100 920,000 920,000 920,000
Table 13.10 Fixtures and furniture investment (us$) (continuation)
PARTICULARS YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
COMMUNICATION 20,000 20,000 20,000 20,000 20,000

OFFICE FACILITIES 100,000 100,000 100,000 100,000 100,000
OPERATION FACILITIES 100,000 100,000 100,000 100,000 100,000
PLANNING/SURVEY FACILITIES 100,000 100,000 100,000 100,000 100,000
BASE CAMP FACILITIES 100,000 100,000 100,000 100,000 100,000
WORKSHOP FACILITIES 100,000 100,000 100,000 100,000 100,000
FIRST AID FACILITIES 100,000 100,000 100,000 100,000 100,000
HOME BUILDING FACILITIES 100,000 100,000 100,000 100,000 100,000
LABORATORY 100,000 100,000 100,000 100,000 100,000
OTHERS 100,000 100,000 100,000 100,000 100,000
920,000 920,000 920,000 920,000 920,000
108
Table 13.11 Investment, Acquisition Value, and Depreciation (us$)
PARTICULARS Life Time TOTAL YEAR

(Years) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
INVESTMENT
-Major Equipment 2,041,774,937 0 30,831,102 59,858,735 65,164,183 68,608,100 28,718,847 28,680,983 28,163,299 65,354,371 72,608,542 42,473,035 46,644,980 46,485,146 83,749,916 92,745,178 37,928,894
-Minor Equipment 39,941,793 0 3,384,750 0 0 0 2,952,021 0 309,054 0 3,453,447 0 0 0 4,431,097 0 0
-Shop & Office 1,998,102 1,157,000 296,564 16,699 74,499 73,350 62,779 19,574 56,848 118,028 2,053 5,748 5,748 5,748 5,748 5,748 5,748
-Complex Building 3,640,790 1,234,894 729,208 645,019 659,717 322,359 0 0 0 0 0 0 0 0 0 0 0
- Infrastructures & others 304,226,200 304,226,200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
-Furniture & Fixture 7,678,200 0 159,100 0 0 159,100 0 0 920,000 0 0 920,000 0 0 920,000 0 0
TOTAL 2,399,260,023 306,618,094 35,400,724 60,520,453 65,898,400 69,162,909 31,733,648 28,700,556 29,449,201 65,472,399 76,064,042 43,398,783 46,650,728 46,490,894 89,106,761 92,750,926 37,934,642
ACQUISITION VALUE
-Major Equipment 0 30,831,102 90,689,837 155,854,020 224,462,120 253,180,967 281,861,950 310,025,249 375,379,620 447,988,162 490,461,198 537,106,178 583,591,323 667,341,240 760,086,418 798,015,312
-Minor Equipment 0 0 3,384,750 3,384,750 3,384,750 3,384,750 6,336,771 6,336,771 6,645,825 6,645,825 10,099,272 10,099,272 10,099,272 10,099,272 14,530,369 14,530,369 14,530,369
-Shop & Office 1,453,564 1,470,263 1,544,763 1,618,113 1,680,892 1,700,466 1,757,314 1,875,342 1,877,395 1,883,143 1,888,891 1,894,639 1,900,387 1,906,135 1,911,883
-Complex Building 1,964,102 2,609,120 3,268,837 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197
- Infrastructures & others 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200
-Furniture & Fixture 0 159,100 159,100 159,100 318,200 318,200 318,200 1,238,200 1,238,200 1,238,200 2,158,200 2,158,200 2,158,200 3,078,200 3,078,200 3,078,200
TOTAL 0 342,018,817 402,539,271 468,437,670 537,600,580 569,334,227 598,034,784 627,483,985 692,956,384 769,020,426 812,419,209 859,069,937 905,560,831 994,667,592 1,087,418,518 1,125,353,160
DEPRECIATION
-Major Equipment 1,812,953,353 0 6,166,220 17,518,803 29,693,066 42,744,998 48,256,609 47,585,141 42,897,157 45,224,726 47,810,648 49,301,266 50,931,944 52,563,653 55,538,106 58,832,592 60,183,413
-Minor Equipment 29,445,621 0 643,893 643,893 643,893 643,893 667,686 667,686 678,487 678,487 778,707 778,707 741,747 741,747 872,656 872,656 872,656
-Shop & Office 10 1,972,237 0 145,356 147,026 154,476 161,811 168,089 170,047 175,731 187,534 187,739 188,314 43,533 42,438 35,562 28,802 23,099
-Complex Building 10 3,611,034 0 196,410 260,912 326,884 359,120 359,120 359,120 359,120 359,120 359,120 359,120 162,710 98,208 32,236 0 0
- Infrastructures & others 10 304,226,200 0 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 0 0 0 0 0
-Furniture & Fixture 5 7,310,200 0 31,820 31,820 31,820 63,640 63,640 31,820 215,820 215,820 184,000 368,000 368,000 184,000 368,000 368,000 184,000
0 0
TOTAL 2,159,518,645 0 37,606,320 49,025,075 61,272,759 74,396,082 79,937,765 79,236,433 74,748,936 77,088,307 79,742,834 81,418,027 52,247,933 53,630,045 56,846,561 60,102,050 61,263,168
ACCUMULATED 0 37,606,320 86,631,395 147,904,155 222,300,237 302,238,002 381,474,435 456,223,371 533,311,677 613,054,512 694,472,539 746,720,472 800,350,517 857,197,077 917,299,127 978,562,296
109
Table 13.11 Investment, Acquisition Value, and Depreciation (us$) (continuation)
PARTICULARS YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
INVESTMENT
-Major Equipment 37,689,564 41,688,562 112,202,868 128,919,622 22,492,199 49,963,507 56,750,130 117,699,530 130,763,883 20,582,697 74,895,851 91,053,076 158,735,359 167,028,827 33,293,950
-Minor Equipment 0 4,726,281 0 494,806 0 5,529,080 0 0 0 7,094,329 0 0 0 7,566,928 0
-Shop & Office 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748
-Complex Building 0 0 0 0 0 0 0 0 0 0 0 49593.75 0 0 0
- Infrastructures & others 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
-Furniture & Fixture 920,000 0 0 920,000 0 0 920,000 0 0 920,000 0 0 920,000 0 0
TOTAL 38,615,312 46,420,591 112,208,616 130,340,176 22,497,947 55,498,335 57,675,878 117,705,278 130,769,631 28,602,774 74,901,599 91,108,418 159,661,107 174,601,503 33,299,698
ACQUISITION VALUE
-Major Equipment 835,704,876 877,393,438 989,596,307 1,118,515,929 1,141,008,128 1,190,971,635 1,247,721,765 1,365,421,295 1,496,185,178 1,516,767,875 1,591,663,726 1,682,716,802 1,841,452,161 2,008,480,988 2,041,774,937
-Minor Equipment 14,530,369 19,256,650 19,256,650 19,751,456 19,751,456 25,280,536 25,280,536 25,280,536 25,280,536 32,374,865 32,374,865 32,374,865 32,374,865 39,941,793 39,941,793
-Shop & Office 1,917,631 1,923,379 1,929,127 1,934,875 1,940,623 1,946,371 1,952,119 1,957,867 1,963,615 1,969,363 1,975,111 1,980,859 1,986,606 1,992,354 1,998,102
-Complex Building 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,591,197 3,640,790 3,640,790 3,640,790 3,640,790
- Infrastructures & others 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200 304,226,200
-Furniture & Fixture 3,998,200 3,998,200 3,998,200 4,918,200 4,918,200 4,918,200 5,838,200 5,838,200 5,838,200 6,758,200 6,758,200 6,758,200 7,678,200 7,678,200 7,678,200
TOTAL 1,163,968,473 1,210,389,064 1,322,597,680 1,452,937,855 1,475,435,803 1,530,934,138 1,588,610,016 1,706,315,294 1,837,084,925 1,865,687,699 1,940,589,298 2,031,697,716 2,191,358,822 2,365,960,325 2,399,260,023
DEPRECIATION
-Major Equipment 61,525,711 63,010,432 66,976,325 71,525,914 66,492,948 67,983,366 69,992,736 74,184,555 78,841,655 79,574,699 82,200,801 85,386,372 92,324,493 98,257,675 99,427,327
-Minor Equipment 872,656 1,009,813 1,009,813 1,027,106 1,027,106 1,187,561 1,187,561 1,187,561 1,187,561 1,397,150 1,397,150 1,397,150 1,397,150 1,616,744 1,616,744
-Shop & Office 21,716 16,606 5,378 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748
-Complex Building 0 0 0 0 0 0 0 0 0 0 0 4,959 4959.375 4959.375 4959.375
- Infrastructures & others 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
-Furniture & Fixture 368,000 368,000 184,000 368,000 368,000 184,000 368,000 368,000 184,000 368,000 368,000 184,000 368,000 368,000 184,000
TOTAL 62,788,084 64,404,852 68,175,517 72,926,768 67,893,801 69,360,675 71,554,044 75,745,863 80,218,964 81,345,598 83,971,699 86,978,230 94,100,351 100,253,126 101,238,778
ACCUMULATED 1,041,350,380 1,105,755,231 1,173,930,748 1,246,857,516 1,314,751,318 1,384,111,993 1,455,666,037 1,531,411,900 1,611,630,864 1,692,976,461 1,776,948,160 1,863,926,390 1,958,026,741 2,058,279,867 2,159,518,645
110
13.4 Production Cost
Production cost that include direct cost, indirect cost, depreciation, amortization, and
additional cost is presented in detail in Table 13.12.
Operating cost is the amount of fund that must be incurred in financing all coal mining
operation by PT. Karya Bumi Baratama until selling stage. The operating cost of this
coal mining includes all direct costs and indirect costs.
Direct Operating Cost
Direct cost is used in financing all activities directly related to the mining operation
in order to produce coal product. The operating cost of coal mining consists of:
- Waste mining cost (OB-removal),
- Mining cost, coal loading and transportation (Coal getting),
- Coal processing cost (Crushing plant),
- Coal transportation cost (coal transport) to port.
Mining operating cost is calculated in consideration of production target, employed
equipments, and qualified workers, total, standard of salary. Direct cost is calculated
as equipment ownership cost + equipment operating cost + worker salary in
reference to the standard of direct worker remuneration.
 Indirect Operating Cost
Indirect operating cost is used in financing all activities indirectly related to the
production process, comprising:
- Cost relating to environmental improvement,
- Occupational health and safety (OHS) cost,
111
- Community development cost around mining area (CSR).
- Reclamation cost and post-mining.
13.5 Sales Revenue
Sales revenue within a period is the amount of fund received by PT. Karya Bumi
Baratama from coal selling in that period based then current market price. FOB port
selling price refer to the price projection and estimation of low quality coal. In this study,
it is specified in the value of US$55.00 per ton FOB Vessel.
13.6 National Income
PT. Karya Bumi Baratama is obliged to disburse various funds to the Government as
stipulated in applicable law, comprising:
Disbursement to Government relating to Production
Whereas, in accordance with provision of Article 11 paragraph (1) PKP2B, it is
declared that “The Government shall be entitled to receive 13.5% of cash production
outcome over FOB (Free On Board) price or at Sale Point price in final loading
facility owned by contractor, the determination of coal location and price for
Government is based on coal sale and purchase transaction between contractor and
purchaser, 13.5% payment of which will be utilized in:
a. Coal development cost;
b. Coal resources inventory cost;
c. Supervisory cost of environmental management and mining occupational safety;
d. Payment of exploration royalty specified by Decree of M.PE Bo. 1166
K/844/M.PE/1992 as contained in Appendix “G” PKP2B.
112
Fixed Fee
PT. Karya Bumi Baratama as PKP2B holder for Feasibility Study and Construction
stage is obliged to disburse annual fixed fee to the state in the amount of US$ 0.50
per hectare in accordance with the provision of Article 14 paragraph (1) PKP2B.
Value Added Tax (VAT)
The coal produced by PT. Karya Bumi Baratama does not belong to commodity that
may be imposed by sale tax (10% VAT) of total sale upon deducted by operating
cost, in accordance with Law No. 18 of 2000 article 5 paragraph 1 and article 8
paragraph 1. Therefore, VAT is not included in the calculation.
Company Income Tax
PT. Karya Bumi Baratama is obliged to disburse the company’s income tax over the
income it receives. This income is any additional economic capability it receives,
either the one deriving from domestic or overseas, in any name or any form. The
amount of income tax that must be disbursed by PT. Karya Bumi Baratama, if in
reference to Law No. 17 of 2000 concerning Income Tax Article 17 B is 30% for
taxable income over IDR. 100,000,000.00
However, in accordance with new Taxation Regulation, the income tax that must be
disbursed by PT. Karya Bumi Baratama is 25%.
13.7 Depreciation and Amortization
Depreciation and amortization is not cash expenditure. It is an accounting method
intended for imposing procurement cost of fixed assets or tangible assets and intangible
113
assets, by spreading during certain period, the assets of which is still functioning. In
calculating depreciation, some approaches are applied:
 The selected depreciation method is straight line depreciation that performs even as
long as the assets period is still functioning.
 First basis or cost that is used as the basis of depreciation is procurement price plus
equipment transportation cost until ready-use.
 Recovery period or depreciation period of the depreciated equipment will vary,
depending on the type of equipment.
13.8 General and Administrative Cost
General and administrative cost is the amount of fund that must be incurred by PT.
Karya Bumi Baratama in financing all activities beyond production operation, involving
administrative cost of head office, administrative cost of mine office and salary of full-
time workers.
114
Table 13.12 Production Cost

TOTAL %-age YEAR
1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
DIRECT COST 5,600,624,930 49.95% 23,422,769 64,252,379 106,141,695 150,692,307 174,382,205 153,998,307 157,437,456 161,009,287 164,719,041 168,572,167 172,574,330 176,731,420 181,049,562 185,535,123 190,194,725
-Consumable Cost 1,693,712,303 15.11% 10,220,644 27,247,847 44,765,497 62,717,824 71,443,012 59,577,122 59,711,438 59,849,783 59,992,279 60,139,050 60,290,224 60,445,933 60,606,313 60,771,505 60,941,652
-Repair Cost 2,433,352,350 21.70% 6,901,645 20,849,188 34,815,671 50,109,418 59,031,193 56,029,536 58,270,717 60,601,546 63,025,608 65,546,632 68,168,497 70,895,237 73,731,047 76,680,289 79,747,500
-Supplies (Tire) 1,033,167,873 9.21% 3,069,843 9,133,033 16,128,806 23,895,144 28,129,664 23,868,111 24,822,836 25,815,749 26,848,379 27,922,314 29,039,207 30,200,775 31,408,806 32,665,158 33,971,765
-Labor (Operator) 440,392,404 3.93% 3,230,637 7,022,312 10,431,721 13,969,920 15,778,335 14,523,538 14,632,465 14,742,208 14,852,775 14,964,171 15,076,402 15,189,475 15,303,396 15,418,172 15,533,808
-Subcontractor - 0.00%
INDIRECT COST 856,121,176 7.64% 7,397,374 14,124,902 20,424,960 27,670,482 27,597,405 27,683,178 28,134,353 28,605,187 29,152,812 29,000,114 28,440,731 28,948,807 29,484,943 29,539,561 29,379,229
-Labor (Non-Operator) 117,321,561 1.05% 1,953,493 2,555,413 3,102,149 3,663,427 3,953,987 3,775,363 3,803,678 3,832,206 3,860,947 3,889,904 3,919,079 3,948,472 3,978,085 4,007,921 4,037,980
-General Expenses 723,376,046 6.45% 4,877,111 10,748,890 16,722,211 23,307,455 23,240,219 23,495,095 23,849,875 24,172,382 24,556,465 24,758,210 24,062,732 24,477,835 24,890,858 24,862,840 25,035,448
-Mobilization 15,423,570 0.14% 566,770 820,600 600,600 699,600 403,200 412,720 480,800 600,600 735,400 352,000 458,920 522,500 616,000 668,800 305,800
DEPRECIATION 2,159,518,645 19.26% 37,606,320 49,025,075 61,272,759 74,396,082 79,937,765 79,236,433 74,748,936 77,088,307 79,742,834 81,418,027 52,247,933 53,630,045 56,846,561 60,102,050 61,263,168
-Major Equipment 1,812,953,353 16.17% 6,166,220 17,518,803 29,693,066 42,744,998 48,256,609 47,585,141 42,897,157 45,224,726 47,810,648 49,301,266 50,931,944 52,563,653 55,538,106 58,832,592 60,183,413
-Minor Equipment 29,445,621 0.26% 643,893 643,893 643,893 643,893 667,686 667,686 678,487 678,487 778,707 778,707 741,747 741,747 872,656 872,656 872,656
-Shop, Warehouse, Offices 1,972,237 0.02% 145,356 147,026 154,476 161,811 168,089 170,047 175,731 187,534 187,739 188,314 43,533 42,438 35,562 28,802 23,099
-Complex Building 3,611,034 0.03% 196,410 260,912 326,884 359,120 359,120 359,120 359,120 359,120 359,120 359,120 162,710 98,208 32,236
-Furniture & Fixture 7,310,200 0.07% 31,820 31,820 31,820 63,640 63,640 31,820 215,820 215,820 184,000 368,000 368,000 184,000 368,000 368,000 184,000
-Infrastructure 304,226,200 2.71% 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620 30,422,620
-
OTHERS 2,596,000,533 23.15% 12,092,436 34,564,826 57,008,150 79,479,322 90,686,420 93,419,061 93,419,061 93,419,061 93,419,061 93,419,061 93,419,061 93,419,061 93,419,061 93,419,061 93,419,061
-Blasting Cost 30% $0.24 per bcm 125,734,764 1.12% 577,230 1,731,690 2,886,150 4,040,610 4,617,840 4,819,871 4,819,871 4,819,871 4,819,871 4,819,871 4,819,871 4,819,871 4,819,871 4,819,871 4,819,871
- Fuel transportation $0.04 per liter 99,671,407 0.89% 625,958 1,667,160 2,735,704 3,827,224 4,351,732 3,606,540 3,606,540 3,606,540 3,606,540 3,606,540 3,606,540 3,606,540 3,606,540 3,606,540 3,606,540
- Additional cost : $9.88 2,298,406,250 9,875,000 29,625,000 49,375,000 69,125,000 79,000,000 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250
Crushing & Stockpiling (Opr cost only) $1.00 - 0.00%
Toll Fee - 0.00%
Loading to Vessel + Steve Dooring $1.25 - 0.00%
Government Royalty $55.00 $7.43 13.50% - 0.00%
SP3 (Sumbangan Pihak Ketiga) $0.02 - 0.00%
Surveyor (Quality Control and Tonnase) $0.10 - 0.00%
Land Compensation - 0.00%
Reclamation $0.06 - 0.00%
Exploration - 0.00%
Administration fee $0.02 - 0.00%
Marketing Cost - 0.00%
Total Tax (VAT Cost) 0.00%
- LIGHT VEHICLE Equipment RENTAL 72,188,112 0.64% 1,014,248 1,540,976 2,011,296 2,486,488 2,716,848 2,536,400 2,536,400 2,536,400 2,536,400 2,536,400 2,536,400 2,536,400 2,536,400 2,536,400 2,536,400
11,212,265,284 100.00% 80,518,900 161,967,183 244,847,564 332,238,193 372,603,796 354,336,980 353,739,805 360,121,842 367,033,748 372,409,369 346,682,055 352,729,333 360,800,127 368,595,795 374,256,183
48.17
115
COST per ACTIVITY TOTAL COST excl Add Cost TOTAL COST Incl Add Cost Cost / Tonnes Excl Add Cost Cost / Tonnes Incl Add Cost Cost per BCM
A. OVERBURDEN REMOVAL $4,728,790,371 $5,948,091,832 $20.32 $25.56 $2.71
B. COAL WINNING $995,093,534 $1,251,674,796 $4.28 $5.38
C. COAL HAULING $3,189,975,129 $4,012,498,656 $13.71 $17.24
116
Table 13.12 Production Cost (continuation)

YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
DIRECT COST 195,035,251 200,063,859 205,287,991 210,715,387 201,539,742 207,041,250 212,757,202 218,696,093 224,866,755 231,278,370 237,940,486 244,863,032 252,367,574 259,844,692 267,614,474
-Consumable Cost 61,116,904 61,297,413 61,483,338 61,674,840 56,195,409 56,382,436 56,575,073 56,773,489 56,977,858 57,188,358 57,405,173 57,628,492 57,858,511 58,095,430 58,339,457
-Repair Cost 82,937,400 86,254,896 89,705,092 93,293,296 91,704,413 95,372,590 99,187,493 103,154,993 107,281,193 111,572,440 116,035,338 120,676,751 125,503,822 130,523,974 135,744,933
-Supplies (Tire) 35,330,635 36,743,861 38,213,615 39,742,160 38,277,070 39,808,153 41,400,479 43,056,498 44,778,758 46,569,908 48,432,704 50,370,012 52,384,813 54,480,205 56,659,414
-Labor (Operator) 15,650,311 15,767,689 15,885,946 16,005,091 15,362,850 15,478,072 15,594,157 15,711,114 15,828,947 15,947,664 16,067,271 16,187,776 16,620,428 16,745,081 16,870,670
-Subcontractor
INDIRECT COST 29,627,202 29,720,003 29,770,987 30,136,430 29,700,562 30,304,543 30,779,208 31,239,210 31,652,532 31,535,833 32,259,284 32,787,137 33,387,465 33,866,504 33,770,237
-Labor (Non-Operator) 4,068,265 4,098,777 4,129,518 4,160,489 4,065,615 4,096,107 4,126,827 4,157,779 4,188,962 4,220,379 4,252,032 4,283,922 4,364,115 4,396,846 4,429,823
-General Expenses 25,161,616 25,144,926 24,994,669 25,260,941 25,462,248 25,806,716 26,160,680 26,480,832 26,810,170 27,158,154 27,574,732 27,965,315 28,368,849 28,800,858 29,167,714
-Mobilization 397,320 476,300 646,800 715,000 172,700 401,720 491,700 600,600 653,400 157,300 432,520 537,900 654,500 668,800 172,700
DEPRECIATION 62,788,084 64,404,852 68,175,517 72,926,768 67,893,801 69,360,675 71,554,044 75,745,863 80,218,964 81,345,598 83,971,699 86,978,230 94,100,351 100,253,126 101,238,778
-Major Equipment 61,525,711 63,010,432 66,976,325 71,525,914 66,492,948 67,983,366 69,992,736 74,184,555 78,841,655 79,574,699 82,200,801 85,386,372 92,324,493 98,257,675 99,427,327
-Minor Equipment 872,656 1,009,813 1,009,813 1,027,106 1,027,106 1,187,561 1,187,561 1,187,561 1,187,561 1,397,150 1,397,150 1,397,150 1,397,150 1,616,744 1,616,744
-Shop, Warehouse, Offices 21,716 16,606 5,378 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748 5,748
-Complex Building 4,959 4,959 4,959 4,959
-Furniture & Fixture 368,000 368,000 184,000 368,000 368,000 184,000 368,000 368,000 184,000 368,000 368,000 184,000 368,000 368,000 184,000
-Infrastructure
OTHERS 93,419,061 93,419,061 93,419,061 93,419,061 92,199,655 92,199,655 92,199,655 92,199,655 92,199,655 92,199,655 92,199,655 92,199,655 92,235,095 92,235,095 92,235,095
-Blasting Cost 4,819,871 4,819,871 4,819,871 4,819,871 4,036,642 4,036,642 4,036,642 4,036,642 4,036,642 4,036,642 4,036,642 4,036,642 4,036,642 4,036,642 4,036,642
- Fuel transportation 3,606,540 3,606,540 3,606,540 3,606,540 3,270,187 3,270,187 3,270,187 3,270,187 3,270,187 3,270,187 3,270,187 3,270,187 3,270,187 3,270,187 3,270,187
- Additional cost : 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250 82,456,250
Crushing & Stockpiling (Opr cost only)
Toll Fee
Loading to Vessel + Steve Dooring
Government Royalty
SP3 (Sumbangan Pihak Ketiga)
Surveyor (Quality Control and Tonnase)
Land Compensation
Reclamation
Exploration
Administration fee
Marketing Cost
Total Tax (VAT Cost)
- LIGHT VEHICLE Equipment RENTAL 2,536,400 2,536,400 2,536,400 2,536,400 2,436,576 2,436,576 2,436,576 2,436,576 2,436,576 2,436,576 2,436,576 2,436,576 2,472,016 2,472,016 2,472,016
380,869,597 387,607,775 396,653,557 407,197,645 391,333,761 398,906,122 407,290,109 417,880,822 428,937,906 436,359,456 446,371,125 456,828,054 472,090,484 486,199,417 494,858,584
117
13.9 Projected Income Statement

Calculation of projected income statement is the estimated fund to be received by PT.
Karya Bumi Baratama as the sales income deriving from coal production upon deducted
by costs with the scenario of production target and planned coal price. Projected income
statement include the calculation of revenue deducted by operating cost and overhead,
gross profit (Ebitda), depreciation and amortization, general expenses, Earnings before
Income Tax (EBIT), other incomes/charges, earnings before tax), Corporate tax,
Earnings after tax, and ROI. In detail, the projected income statement is presented in
Table 13.13 and Table 13.14.
118
Table 13.13 Projected Production and Revenue
Unit Plant UNIT TOTAL Unit YEAR

Cost Rate 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
PRODUCTION
SELLING COAL TONNES 232,750,000 $55.00 1,000,000 3,000,000 5,000,000 7,000,000 8,000,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000
REVENUE
SELLING COAL US$/TONNE $12,801,250,000 $12,801,250,000 55,000,000 165,000,000 275,000,000 385,000,000 440,000,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
12,801,250,000 55,000,000 165,000,000 275,000,000 385,000,000 440,000,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
Table 13.13 Projected Production and Revenue (continuation)
Unit Plant UNIT YEAR

Cost 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
PRODUCTION
SELLING COAL TONNES 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000 8,350,000
REVENUE
SELLING COAL US$/TONNE 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
119
Table 13.14 Projected Income Statement
PARTICULARS %-age of TOTAL YEAR

Revenue 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
REVENUE 100.00% 12,801,250,000 55,000,000 165,000,000 275,000,000 385,000,000 440,000,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
Revenue from Operation 100.00% 12,801,250,000 55,000,000 165,000,000 275,000,000 385,000,000 440,000,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
COST OF REVENUE 65.07% 8,329,370,593 38,035,468 102,193,218 166,852,593 234,534,656 269,425,813 251,605,451 255,140,995 258,861,154 262,734,449 266,233,132 270,371,389 274,621,453 279,062,708 283,630,905 287,957,566
Operating Cost 64.03% 8,196,625,463 35,515,205 98,817,206 163,149,845 230,171,628 265,068,626 247,417,368 250,856,517 254,428,348 258,138,102 261,991,228 265,993,391 270,150,481 274,468,623 278,954,184 283,613,786
Overhead 1.04% 132,745,131 2,520,263 3,376,013 3,702,749 4,363,027 4,357,187 4,188,083 4,284,478 4,432,806 4,596,347 4,241,904 4,377,999 4,470,972 4,594,085 4,676,721 4,343,780
GROSS PROFIT (EBITDA) 34.93% 4,471,879,407 16,964,532 62,806,782 108,147,407 150,465,344 170,574,187 207,644,549 204,109,005 200,388,846 196,515,551 193,016,868 188,878,611 184,628,547 180,187,292 175,619,095 171,292,434
Depreciation 16.87% 2,159,518,645 37,606,320 49,025,075 61,272,759 74,396,082 79,937,765 79,236,433 74,748,936 77,088,307 79,742,834 81,418,027 52,247,933 53,630,045 56,846,561 60,102,050 61,263,168
General Expenses 5.65% 723,376,046 4,877,111 10,748,890 16,722,211 23,307,455 23,240,219 23,495,095 23,849,875 24,172,382 24,556,465 24,758,210 24,062,732 24,477,835 24,890,858 24,862,840 25,035,448
EBIT 12.41% 1,588,984,716 (25,518,900) 3,032,817 30,152,436 52,761,807 67,396,204 104,913,020 105,510,195 99,128,158 92,216,252 86,840,631 112,567,945 106,520,667 98,449,873 90,654,205 84,993,817
-46.40% 1.84% 10.96% 13.70% 15.32% 22.84% 22.97% 21.58% 20.08% 18.91% 24.51% 23.19% 21.44% 19.74% 18.51%
OTHER INCOME/CHARGES -0.23% (29,952,264) 12,877,960 15,866,938 16,607,166 17,024,072 17,252,788 14,575,523 8,806,910 5,375,710 3,740,354 2,499,376 (261,135) (2,598,393) (3,571,735) (2,790,930) (1,980,815)
Int. Long Term Debt -0.23% -29,952,264 12,877,960 15,866,938 16,607,166 17,024,072 17,252,788 14,575,523 8,806,910 5,375,710 3,740,354 2,499,376 -261134.9159 -2598393.097 -3571734.956 -2790930.036 -1980815.403
Int. Short Term Loan 0.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Deposit Interest 0.00% 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EARNING BEFORE TAX 12.65% 1,618,936,980 (38,396,860) (12,834,121) 13,545,270 35,737,735 50,143,416 90,337,497 96,703,284 93,752,448 88,475,897 84,341,255 112,829,080 109,119,060 102,021,608 93,445,135 86,974,633
CORPORATE TAX 25% 3.34% 427,836,846.4 - - 3,386,317.4 8,934,433.7 12,535,854.1 22,584,374.3 24,175,821.1 23,438,112.1 22,118,974.3 21,085,313.8 28,207,270.1 27,279,765.0 25,505,402.1 23,361,283.8 21,743,658.2
-
EARNING AFTER TAX 9.30% 1,191,100,133.7 (38,396,860.0) (12,834,120.7) 10,158,952.3 26,803,301.0 37,607,562.2 67,753,122.9 72,527,463.2 70,314,336.2 66,356,923.0 63,255,941.4 84,621,810.2 81,839,295.0 76,516,206.3 70,083,851.4 65,230,974.6
-
-Dividend - - - - - - - - - - - - - - - - -
-Retained Earning 1,191,100,133.7 (38,396,860.0) (12,834,120.7) 10,158,952.3 26,803,301.0 37,607,562.2 67,753,122.9 72,527,463.2 70,314,336.2 66,356,923.0 63,255,941.4 84,621,810.2 81,839,295.0 76,516,206.3 70,083,851.4 65,230,974.6
-Acc. Retained Earning (38,396,860.0) (51,230,980.6) (41,072,028.3) (14,268,727.3) 23,338,834.9 91,091,957.7 163,619,420.9 233,933,757.1 300,290,680.1 363,546,621.5 448,168,431.8 530,007,726.8 606,523,933.1 676,607,784.5 741,838,759.1
120
Table 13.14 Projected Income Statement (Continuation)
PARTICULARS %-age of YEAR

Revenue 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
REVENUE 100.00% 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
Revenue from Operation 100.00% 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000 459,250,000
COST OF REVENUE 65.07% 292,919,897 298,057,997 303,483,370 309,009,937 297,977,712 303,738,731 309,575,384 315,654,127 321,908,772 327,855,704 334,824,693 341,884,509 349,621,284 357,145,433 364,452,091
Operating Cost 64.03% 288,454,312 293,482,920 298,707,052 304,134,448 293,739,397 299,240,905 304,956,857 310,895,748 317,066,410 323,478,025 330,140,141 337,062,687 344,602,668 352,079,786 359,849,569
Overhead 1.04% 4,465,585 4,575,077 4,776,318 4,875,489 4,238,315 4,497,827 4,618,527 4,758,379 4,842,362 4,377,679 4,684,552 4,821,822 5,018,615 5,065,646 4,602,523
GROSS PROFIT (EBITDA) 34.93% 166,330,103 161,192,003 155,766,630 150,240,063 161,272,288 155,511,269 149,674,616 143,595,873 137,341,228 131,394,296 124,425,307 117,365,491 109,628,716 102,104,567 94,797,909
Depreciation 16.87% 62,788,084 64,404,852 68,175,517 72,926,768 67,893,801 69,360,675 71,554,044 75,745,863 80,218,964 81,345,598 83,971,699 86,978,230 94,100,351 100,253,126 101,238,778
General Expenses 5.65% 25,161,616 25,144,926 24,994,669 25,260,941 25,462,248 25,806,716 26,160,680 26,480,832 26,810,170 27,158,154 27,574,732 27,965,315 28,368,849 28,800,858 29,167,714
EBIT 12.41% 78,380,403 71,642,225 62,596,443 52,052,355 67,916,239 60,343,878 51,959,891 41,369,178 30,312,094 22,890,544 12,878,875 2,421,946 (12,840,484) (26,949,417) (35,608,584)
17.07% 15.60% 13.63% 11.33% 14.79% 13.14% 11.31% 9.01% 6.60% 4.98% 2.80% 0.53% -2.80% -5.87% -7.75%
OTHER INCOME/CHARGES -0.23% (3,632,194) (5,408,926) (6,949,221) (5,832,304) (4,045,835) (8,126,207) (9,634,517) (11,024,266) (10,032,957) (8,626,237) (11,715,793) (13,096,619) (13,872,401) (11,934,291) (9,444,285)
Int. Long Term Debt -0.23% -3632193.59 -5408925.841 -6949220.594 -5832304.256 -4045834.907 -8126206.799 -9634516.731 -11024266.21 -10032957.24 -8626237.248 -11715793.14 -13096619.16 -13872400.69 -11934291.23 -9444284.983
Int. Short Term Loan 0.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Deposit Interest 0.00% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
EARNING BEFORE TAX 12.65% 82,012,596 77,051,151 69,545,664 57,884,659 71,962,074 68,470,085 61,594,408 52,393,444 40,345,052 31,516,782 24,594,669 15,518,566 1,031,917 (15,015,126) (26,164,299)
CORPORATE TAX 25% 3.34% 20,503,149.1 19,262,787.8 17,386,416.0 14,471,164.7 17,990,518.5 17,117,521.2 15,398,602.1 13,098,361.1 10,086,262.9 7,879,195.4 6,148,667.1 3,879,641.4 257,979.2 - -
EARNING AFTER TAX 9.30% 61,509,447.3 57,788,363.5 52,159,248.0 43,413,494.1 53,971,555.4 51,352,563.5 46,195,806.2 39,295,083.3 30,258,788.8 23,637,586.2 18,446,001.4 11,638,924.2 773,937.7 (15,015,126.1) (26,164,298.8)
-Dividend - - - - - - - - - - - - - - - -
-Retained Earning 61,509,447.3 57,788,363.5 52,159,248.0 43,413,494.1 53,971,555.4 51,352,563.5 46,195,806.2 39,295,083.3 30,258,788.8 23,637,586.2 18,446,001.4 11,638,924.2 773,937.7 (15,015,126.1) (26,164,298.8)
-Acc. Retained Earning 803,348,206.4 861,136,569.9 913,295,817.8 956,709,311.9 1,010,680,867.3 1,062,033,430.8 1,108,229,237.0 1,147,524,320.3 1,177,783,109.1 1,201,420,695.3 1,219,866,696.6 1,231,505,620.8 1,232,279,558.6 1,217,264,432.5 1,191,100,133.7
121
13.10 Depreciation and Amortization
Factors that must also be considered in arranging cash flow are depreciation and
amortization. Depreciation and amortization are not cash expenditure. They serve as
accounting method which is intended for imposing the procurement cost of tangible
assets and intangible assets by distributing them during certain period, where the assets
are still functioning.
According to the rule, depreciation and amortization are deemed as expenditures that
may be deducted from part to be imposed by tax. Therefore, the must be an effort in
depreciating the assets within the shortest period as possible and allowable by the
existing regulation. This effort is expected to reduce total tax that must be disburse d
during initial operating years so that in order to may increase the cash inflow and
accelerate the recovery of assets procurement cost.
Depreciation method is applied by straight line depreciation, namely by performing
even depreciation along the assets period.
13.11 Projected Free Cash Flow Analysis
In order to analyze the economic feasibility of PT. KBB coal mining project, Free cash
flow analysis is applied, as displayed in Table 13.15 and Table 13.16.
Understanding cash in coal mining project investment of the PT. Karya Bumi Baratama
is the value of existing cash in near term can be used as a means of payment & financial
needs and has the properties of the highest levels of liquidity. The cash for this coal
mining may be utilized for the purpose of:
- Financing the net coal production process;
- Renewal of fixed assets in the investment activity;
122
- Installment and loan interest, tax, contribution, collection, et cetera.
During the period of coal mining project, namely 30 years, free cash flow can be
projected either cash inflow or cash outflow. The quantity of cash inflow for PT. Karya
Bumi Baratama will be greatly determined by the net profit received by the company
(either profit or loss), amount of loan from bank for an investment (70%), and the
amount of capital investment from the company itself (30%) or from shareholder, et
cetera.
Meanwhile, net profit received by the company is function of the received earnings and
cost to be incurred. The difference of earnings and costs is profit for the company.
Components that determine the company’s earnings are as follows:
- Net value of coal selling for the company.
- Value of earnings from remaining value of equipments.
Meanwhile, components that determine costs of the company are as follows:
- Net cost of coal production until it is readily sold.
- General and administrative costs.
- Disbursement of loan interest to bank.
- Disbursement of tax, contribution, and other costs.
The amount of cash outflow is affected by some components below:
- Disbursement of investment cost and working capital.
- Disbursement of principal installment over loan to the bank.
- Repayment of investment from the company itself, et cetera.
Free Cash Flow Analysis of this mining project is displayed in Table 13.15 and Table
13.16.
123
Table 13.15 Projected Balance Sheet
YEAR
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
CURRENT ASSETS
Cash and Bank - 17,757,603 49,408,603 81,574,922 115,085,814 132,534,313 123,708,684 125,428,258 127,214,174 129,069,051 130,995,614 132,996,695 135,075,240 137,234,311 139,477,092 141,806,893
Account Receivables - 9,041,096 27,123,288 45,205,479 63,287,671 72,328,767 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151
Prepaid Taxes - - 1,693,159 4,467,217 6,267,927 11,292,187 12,087,911 11,719,056 11,059,487 10,542,657 14,103,635 13,639,883 12,752,701 11,680,642 10,871,829
Inventory - 1,858,465 5,521,034 9,351,621 13,540,206 15,900,714 14,461,988 14,997,222 15,553,840 16,132,695 16,734,678 17,360,711 18,011,757 18,688,815 19,392,924 20,125,166
Time Deposit 306,618,094 1 1 1 1 1 1 1 1 1 0 1 1 1 0 0
Total Current Asets 306,618,094 28,657,165 82,052,925 137,825,183 196,380,909 227,031,722 224,956,012 228,006,543 229,980,222 231,754,385 233,766,100 239,954,193 242,220,032 244,168,978 246,043,809 248,297,038
FIXED ASSETS
Acquisition Cost 342,018,817 402,539,271 468,437,670 537,600,580 569,334,227 598,034,784 627,483,985 692,956,384 769,020,426 812,419,209 859,069,937 905,560,831 994,667,592 1,087,418,518 1,125,353,160
Accumulated Depreciation 37,606,320 86,631,395 147,904,155 222,300,237 302,238,002 381,474,435 456,223,371 533,311,677 613,054,512 694,472,539 746,720,472 800,350,517 857,197,077 917,299,127 978,562,296
Net Fixed Assets - 304,412,497 315,907,875 320,533,516 315,300,342 267,096,226 216,560,349 171,260,614 159,644,706 155,965,914 117,946,670 112,349,466 105,210,314 137,470,515 170,119,391 146,790,864
TOTAL ASSETS 306,618,094 333,069,662 397,960,801 458,358,698 511,681,251 494,127,947 441,516,360 399,267,158 389,624,928 387,720,300 351,712,770 352,303,659 347,430,346 381,639,493 416,163,200 395,087,903
CURRENT LIABILITIES
Tax Payables - - 1,693,159 4,467,217 6,267,927 11,292,187 12,087,911 11,719,056 11,059,487 10,542,657 14,103,635 13,639,883 12,752,701 11,680,642 10,871,829
Account Payables - 1,661,915 4,997,037 8,490,746 12,334,094 14,526,810 13,316,275 13,848,925 14,402,883 14,978,998 15,578,158 16,201,284 16,849,335 17,523,309 18,224,241 18,953,211
Short Term Loan
Customer Deposit 5% - 2,750,000 8,250,000 13,750,000 19,250,000 22,000,000 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500
Others
Total Current Liabilities - 4,411,915 13,247,037 23,933,905 36,051,311 42,794,737 47,570,962 48,899,336 49,084,439 49,000,985 49,083,315 53,267,419 53,451,718 53,238,510 52,867,383 52,787,540
LONG TERM LIABILITIES

Long Term Debt 214,632,665 264,448,962 276,786,103 283,734,540 287,546,466 242,925,380 146,781,840 89,595,163 62,339,238 41,656,264 -4,352,249 -43,306,552 -59,528,916 -46,515,501 -33,013,590 -60,536,560
Total Liabilities 214,632,665 268,860,877 290,033,140 307,668,445 323,597,776 285,720,117 194,352,802 138,494,499 111,423,677 90,657,249 44,731,066 9,960,867 (6,077,198) 6,723,009 19,853,793 (7,749,020)
STOCKHOLDER'S EQUITY
Equity 91,985,428 102,605,645 120,761,781 140,531,301 161,280,174 170,800,268 179,410,435 188,245,195 207,886,915 230,706,128 243,725,763 257,720,981 271,668,249 298,400,278 326,225,556 337,605,948
Retained Earning - (38,396,860) (12,834,121) 10,158,952 26,803,301 37,607,562 67,753,123 72,527,463 70,314,336 66,356,923 63,255,941 84,621,810 81,839,295 76,516,206 70,083,851 65,230,975
Total Stockholder's Equity 91,985,428 64,208,785 107,927,661 150,690,253 188,083,475 208,407,830 247,163,558 260,772,659 278,201,251 297,063,051 306,981,704 342,342,791 353,507,544 374,916,484 396,309,407 402,836,923
TOTAL LIABILITIES & EQUITY 306,618,094 333,069,662 397,960,801 458,358,698 511,681,251 494,127,947 441,516,360 399,267,158 389,624,928 387,720,300 351,712,770 352,303,659 347,430,346 381,639,493 416,163,200 395,087,903
124
Table 13.15 Projected Balance Sheet (continuation)

YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
CURRENT ASSETS
Cash and Bank 144,227,156 146,741,460 149,353,526 152,067,224 146,869,699 149,620,452 152,478,428 155,447,874 158,533,205 161,739,012 165,070,071 168,531,343 172,301,334 176,039,893 179,924,784
Account Receivables 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151
Prepaid Taxes 10,251,575 9,631,394 8,693,208 7,235,582 8,995,259 8,558,761 7,699,301 6,549,181 5,043,131 3,939,598 3,074,334 1,939,821 128,990 - -
Inventory 20,886,664 21,678,589 22,502,156 23,358,631 22,744,261 23,614,401 24,519,311 25,460,380 26,439,053 27,456,834 28,515,286 29,616,034 30,760,769 31,951,250 33,189,304
Time Deposit 1 0 1 0 1 0 0 1 1 0 0 1 0 0 0
Total Current Asets 250,858,546 253,544,594 256,042,042 258,154,588 254,102,371 257,286,765 260,190,191 262,950,586 265,508,541 268,628,595 272,152,841 275,580,350 278,684,244 283,484,294 288,607,239
FIXED ASSETS
Acquisition Cost 1,163,968,473 1,210,389,064 1,322,597,680 1,452,937,855 1,475,435,803 1,530,934,138 1,588,610,016 1,706,315,294 1,837,084,925 1,865,687,699 1,940,589,298 2,031,697,716 2,191,358,822 2,365,960,325 2,399,260,023
Accumulated Depreciation 1,041,350,380 1,105,755,231 1,173,930,748 1,246,857,516 1,314,751,318 1,384,111,993 1,455,666,037 1,531,411,900 1,611,630,864 1,692,976,461 1,776,948,160 1,863,926,390 1,958,026,741 2,058,279,867 2,159,518,645
Net Fixed Assets 122,618,093 104,633,832 148,666,932 206,080,339 160,684,485 146,822,145 132,943,979 174,903,394 225,454,061 172,711,237 163,641,137 167,771,326 233,332,082 307,680,458 239,741,378
TOTAL ASSETS 373,476,639 358,178,426 404,708,974 464,234,927 414,786,856 404,108,910 393,134,170 437,853,980 490,962,602 441,339,833 435,793,979 443,351,675 512,016,326 591,164,752 528,348,617
CURRENT LIABILITIES
Tax Payables 10,251,575 9,631,394 8,693,208 7,235,582 8,995,259 8,558,761 7,699,301 6,549,181 5,043,131 3,939,598 3,074,334 1,939,821 128,990 - -
Account Payables 19,711,339 20,499,793 21,319,785 22,172,576 21,663,580 22,530,124 23,431,329 24,368,582 25,343,325 26,357,058 27,411,340 28,507,794 29,648,106 30,834,030 32,067,391
Short Term Loan
Customer Deposit 5% 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500
Others
Total Current Liabilities 52,925,414 53,093,687 52,975,493 52,370,658 53,621,340 54,051,384 54,093,130 53,880,262 53,348,957 53,259,156 53,448,174 53,410,115 52,739,595 53,796,530 55,029,891
LONG TERM LIABILITIES

Long Term Debt -90,148,764 -115,820,343 -97,205,071 -67,430,582 -135,436,780 -160,575,279 -183,737,770 -167,215,954 -143,770,621 -195,263,219 -218,276,986 -231,206,678 -198,904,854 -157,404,750 -220,294,983
Total Liabilities (37,223,350) (62,726,657) (44,229,578) (15,059,924) (81,815,440) (106,523,895) (129,644,641) (113,335,692) (90,421,664) (142,004,063) (164,828,812) (177,796,563) (146,165,258) (103,608,220) (165,265,092)
STOCKHOLDER'S EQUITY
Equity 349,190,542 363,116,719 396,779,304 435,881,357 442,630,741 459,280,241 476,583,005 511,894,588 551,125,478 559,706,310 582,176,789 609,509,315 657,407,647 709,788,098 719,778,007
Retained Earning 61,509,447 57,788,363 52,159,248 43,413,494 53,971,555 51,352,564 46,195,806 39,295,083 30,258,789 23,637,586 18,446,001 11,638,924 773,938 (15,015,126) (26,164,299)
Total Stockholder's Equity 410,699,989 420,905,083 448,938,552 479,294,851 496,602,296 510,632,805 522,778,811 551,189,672 581,384,266 583,343,896 600,622,791 621,148,239 658,181,584 694,772,971 693,613,708
TOTAL LIABILITIES & EQUITY 373,476,639 358,178,426 404,708,974 464,234,927 414,786,856 404,108,910 393,134,170 437,853,980 490,962,602 441,339,833 435,793,979 443,351,675 512,016,326 591,164,752 528,348,617
125
Table 13.16. Working Capital Required and Free Cash Flow Analysis
WORKING CAPITAL REQUIRED

YEAR
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Cash and Bank - 17,757,603 49,408,603 81,574,922 115,085,814 132,534,313 123,708,684 125,428,258 127,214,174 129,069,051 130,995,614 132,996,695 135,075,240 137,234,311 139,477,092 141,806,893
Account Receivables - 9,041,096 27,123,288 45,205,479 63,287,671 72,328,767 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151
Prepaid Taxes - - - 1,693,159 4,467,217 6,267,927 11,292,187 12,087,911 11,719,056 11,059,487 10,542,657 14,103,635 13,639,883 12,752,701 11,680,642 10,871,829
Inventory - 1,858,465 5,521,034 9,351,621 13,540,206 15,900,714 14,461,988 14,997,222 15,553,840 16,132,695 16,734,678 17,360,711 18,011,757 18,688,815 19,392,924 20,125,166
Tax Payables - - - 1,693,159 4,467,217 6,267,927 11,292,187 12,087,911 11,719,056 11,059,487 10,542,657 14,103,635 13,639,883 12,752,701 11,680,642 10,871,829
Account Payables - 1,661,915 4,997,037 8,490,746 12,334,094 14,526,810 13,316,275 13,848,925 14,402,883 14,978,998 15,578,158 16,201,284 16,849,335 17,523,309 18,224,241 18,953,211
Customer Deposit - 2,750,000 8,250,000 13,750,000 19,250,000 22,000,000 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500
Working Capital Required - 24,245,249 68,805,888 113,891,277 160,329,597 184,236,984 177,385,049 179,107,206 180,895,782 182,753,399 184,682,785 186,686,773 188,768,313 190,930,468 193,176,425 195,509,498
Change in W. C.R. - 24,245,249 44,560,638 45,085,389 46,438,321 23,907,387 (6,851,935) 1,722,157 1,788,576 1,857,617 1,929,385 2,003,989 2,081,539 2,162,155 2,245,957 2,333,073
FREECASHFLOW ANALYSIS
SOURCES OF CASH
Net Income (EBIT) (25,518,900) 3,032,817 30,152,436 52,761,807 67,396,204 104,913,020 105,510,195 99,128,158 92,216,252 86,840,631 112,567,945 106,520,667 98,449,873 90,654,205 84,993,817
Depreciation 37,606,320 49,025,075 61,272,759 74,396,082 79,937,765 79,236,433 74,748,936 77,088,307 79,742,834 81,418,027 52,247,933 53,630,045 56,846,561 60,102,050 61,263,168
Taxes on EBIT (7,538,109) (13,190,452) (16,849,051) (26,228,255) (26,377,549) (24,782,040) (23,054,063) (21,710,158) (28,141,986) (26,630,167) (24,612,468) (22,663,551) (21,248,454)
USES OF CASH
Investment on Fixed Assets 306,618,094 35,400,724 60,520,453 65,898,400 69,162,909 31,733,648 28,700,556 29,449,201 65,472,399 76,064,042 43,398,783 46,650,728 46,490,894 89,106,761 92,750,926 37,934,642
Change in W.C.R. 24,245,249 44,560,638 45,085,389 46,438,321 23,907,387 (6,851,935) 1,722,157 1,788,576 1,857,617 1,929,385 2,003,989 2,081,539 2,162,155 2,245,957 2,333,073
FREECASHFLOW (306,618,094) (47,558,553) (53,023,199) (27,096,703) (1,633,792) 74,843,883 136,072,577 122,710,223 84,173,450 70,983,363 101,220,332 88,019,175 84,948,112 39,415,049 33,095,820 84,740,817
ACC. FREECASHFLOW (306,618,094) (354,176,647) (407,199,846) (434,296,549) (435,930,341) (361,086,457) (225,013,880) (102,303,657) (18,130,206) 52,853,157 154,073,489 242,092,664 327,040,776 366,455,825 399,551,645 484,292,462
PROJECT INTERNAL RATE OF RETURN 11.08%
DISCOUNT RATE 6%
NET PRESENT VALUE 250,138,941
126
Table 13.16. Working Capital Required and Free Cash flow analysis (continuation)
WORKING CAPITAL REQUIRED
YEAR
16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Cash and Bank 144,227,156 146,741,460 149,353,526 152,067,224 146,869,699 149,620,452 152,478,428 155,447,874 158,533,205 161,739,012 165,070,071 168,531,343 172,301,334 176,039,893 179,924,784
Account Receivables 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151 75,493,151
Prepaid Taxes 10,251,575 9,631,394 8,693,208 7,235,582 8,995,259 8,558,761 7,699,301 6,549,181 5,043,131 3,939,598 3,074,334 1,939,821 128,990 - -
Inventory 20,886,664 21,678,589 22,502,156 23,358,631 22,744,261 23,614,401 24,519,311 25,460,380 26,439,053 27,456,834 28,515,286 29,616,034 30,760,769 31,951,250 33,189,304
Tax Payables 10,251,575 9,631,394 8,693,208 7,235,582 8,995,259 8,558,761 7,699,301 6,549,181 5,043,131 3,939,598 3,074,334 1,939,821 128,990 - -
Account Payables 19,711,339 20,499,793 21,319,785 22,172,576 21,663,580 22,530,124 23,431,329 24,368,582 25,343,325 26,357,058 27,411,340 28,507,794 29,648,106 30,834,030 32,067,391
Customer Deposit 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500 22,962,500
Working Capital Required 197,933,132 200,450,907 203,066,549 205,783,929 200,481,030 203,235,381 206,097,061 209,070,323 212,159,584 215,369,439 218,704,667 222,170,234 225,944,649 229,687,764 233,577,348
Change in W. C.R. 2,423,633 2,517,775 2,615,642 2,717,380 (5,302,899) 2,754,350 2,861,681 2,973,261 3,089,261 3,209,856 3,335,228 3,465,567 3,774,414 3,743,115 3,889,584
FREECASHFLOW ANALYSIS
SOURCES OF CASH
Net Income (EBIT) 78,380,403 71,642,225 62,596,443 52,052,355 67,916,239 60,343,878 51,959,891 41,369,178 30,312,094 22,890,544 12,878,875 2,421,946 (12,840,484) (26,949,417) (35,608,584)
Depreciation 62,788,084 64,404,852 68,175,517 72,926,768 67,893,801 69,360,675 71,554,044 75,745,863 80,218,964 81,345,598 83,971,699 86,978,230 94,100,351 100,253,126 101,238,778
Taxes on EBIT (19,595,101) (17,910,556) (15,649,111) (13,013,089) (16,979,060) (15,085,969) (12,989,973) (10,342,295) (7,578,024) (5,722,636) (3,219,719) (605,487) 3,210,121
USES OF CASH
Investment on Fixed Assets 38,615,312 46,420,591 112,208,616 130,340,176 22,497,947 55,498,335 57,675,878 117,705,278 130,769,631 28,602,774 74,901,599 91,108,418 159,661,107 174,601,503 33,299,698
Change in W.C.R. 2,423,633 2,517,775 2,615,642 2,717,380 (5,302,899) 2,754,350 2,861,681 2,973,261 3,089,261 3,209,856 3,335,228 3,465,567 3,774,414 3,743,115 3,889,584
FREECASHFLOW 80,534,440 69,198,154 298,591 (21,091,522) 101,635,932 56,365,898 49,986,403 (13,905,792) (30,905,857) 66,700,877 15,394,029 (5,779,296) (78,965,533) (105,040,909) 268,182,290
ACC. FREECASHFLOW 564,826,903 634,025,057 634,323,648 613,232,126 714,868,058 771,233,957 821,220,360 807,314,567 776,408,710 843,109,587 858,503,616 852,724,320 773,758,787 668,717,878 936,900,168
PROJECT INTERNAL RATE OF RETURN
DISCOUNT RATE
NET PRESENT VALUE
127
13.12. Criteria of economic assessment
Principles which are applied in the this cost calculation and financial analysis refer to
the equivalent concept, that essentially consider the time and invested cash value, in the
form of interest rate and rate of return. Criteria which are applied in assessing the
economy of this coal mining project are Internal Rate of Return (IRR), Net Present
Value (NPV), and Payback Period (PBP).
Net Present Value (NPV);
The criteria of net present value are based on the concept of discounting all cash flows
from present value. By discounting all cash inflows and cash outflows during the project
period (investment) to the present value, subsequently calculating the net present value
by the same basis, namely present price. Criteria of NPV assessment observe two
matters simultaneously, namely factor of time value of the cash value and difference of
cash inflow and cash outflow. In other words, the NPV may indicate lump sump with
certain discount rate and indicate the present actual cash value.
Internal Rate of Return (IRR);
Internal rate of return (IRR) is one of criteria that is used as indicator in determining the
attractiveness of investment project to be made, viewed from economic aspect.
Principally, IRR is the rate of return that produce NPV of cash inflow equivalent to the
NPV of cash outflow. In NPV method, analysis is performed by first determining the
rate of discount return (i), subsequently calculate the net present value (NPV) of cash
outflow and cash inflow. The desired rate of IRR or rate of discount return (i) is by
providing the NPV value = 0. If the IRR value of this investment project is quite
128
significantly higher than the bank interest (i), it may be concluded that the project is
economically feasible.
Payback Period (PBP)
Payback period is the return period of all invested costs, which may be simply viewed in
the Free Cash Flow, namely when the value of cash flow starts to be positive.
13.13 Sensitivity Analysis
Sensitivity analysis is intended for analyzing the extent to which the change to
economic and financial parameter may affect the economy of this coal mining
investment project. Parameter that is used in assessing the economic sensitivity of a
project is generally influential sensitive parameter. In this analysis or feasibility study,
parameters which are deemed to have significant effect on the economy of these coal
mining project area as follows:
- Coal selling price, and
- Fuel (solar) purchasing price
In the sensitivity analysis, it will be simulated that the coal selling price varies from the
initial projected price of US$55.00 per ton, increasing to US$60.0 per ton, and
decreasing to US$53.0 per ton. Fuel (solar) purchasing price is initially assumed
US$ 0.55 per liter, varied until the highest price of US$0.70 per liter.
In case one of parameters change to the plan limit, yet does not have significant effect to
the economic change of the project (In this case used the benchmark IRR), then the
project may be deemed insensitive to the parameter. Conversely, in the event of any
minor change to a parameter that lead to significant change to IRR, the investment
129
project is deemed sensitive to the parameter. By comprehending the outcome of
sensitivity analysis, then the management may determine the policy and/or anticipatory
plan if the sensitive parameters may potentially arise.
The entire outcome of sensitivity analysis has been conducted in Table 13.17 and Table
13.18.
Table 13.17 Sensitivity of Coal Selling Price Change Effect Analysis
Coal Selling Price

IRR, % NPV(6%), US.$ PBP (th)
US.$ / ton
60 15.64 568,377,512 6-7
58 14.01 443,728,762 7-8
55 11.08 250,138,941 8-9
53 8.73 119,907,016 9 - 10
Table 13.18 Sensitivity of Fuel Price Change Effect Analysis
Harga BBM IRR, % NPV (6%), US. $ PBP (th)
USD 0.55 11.08 250,138,941 8–9

USD 0.60 10.18 199,896,410 8–9
USD 0.65 9.24 150,281,876 9 – 10
USD 0.70 8.25 100,667,341 9 – 10
13.14 Conclusion on the economic feasibility
Based on the cash flow analysis and sensitivity analysis having been conducted, it may
be generally concluded that the coal mining project in the PKP2B area of Kabupaten
Sarolangun and Musi Rawas, with the assumed coal selling price of US$ 55.00 per ton
FOB Vessel in port + 200 km from the mining area, is economically feasible and
recommendable for realization. The economic aspect of this coal mining project is quite
sensitive on the change to coal selling price and fuel (solar) purchasing price.
130

Chapter Ix. Mine Site Infrastructures

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CHAPTER IX.

MINE SITE INFRASTRUCTURES

9.1 Mine Site Infrastructures

of workplace such as topography, physical characteristics and land mechanics, as well

as economic and security consideration.

Supporting facilities shall mean any means and infrastructures to be constructed in

supporting the operation of mining activity. Location of mining infrastructures will

function and type, mining infrastructures may be classified into:

 Office building, housing and public facilities

 Electricity and water utility building

 Mechanical utility building (workshop, warehouse, and laboratory)

 Mining operation supporting means and environmental handling

9.1.1 Office, Housing, and Public Facilities Buildings

9.1.1.1 Mine Administrative Office

of planning, supervision and evaluation of mining operation. Engineering and space

and Figure 9.1.

COMPLEX BUILDING 3,640,790 1,234,894 729,208 645,019 659,717 322,359 - - - - - - - - - - -

INFRASTRUCTURES & OTHERS 304,226,200 304,226,200 - - - - - - - - - - - - - - -

COMPLEX BUILDING - - - - - - - - - - - 49,594 - - -

INFRASTRUCTURES & OTHERS - - - - - - - - - - - - - - -

COMMUNICATION 200,000 20,000 20,000 20,000 20,000 20,000

7,678,200 159,100 159,100 920,000 920,000 920,000

Table 9.2 Additional Infrastructure Need (continuation)

COMMUNICATION 20,000 20,000 20,000 20,000 20,000

920,000 920,000 920,000 920,000 920,000

9.1.1.2 Employees Housing

buildings is in the area of 500 m2 consisting of 6 bedrooms, living room, guestroom,

bathroom and wash-basin (Figure 9.2).

9.1.1.3 Religious Service Building (Mosque)

room, and ritual ablution room (Figure 9.3).

9.1.1.4 Eating Place Building

of 20 m x 24 m or 480m2 (Figure 9.4).

Figure 9.4 Lunchroom Building

m2, comprising watchman room and equipment room.

Figure 9.5 Security Post

9.1.1.6 Fuel Building

mine location. Fuel station occupies the area of 50 m x 50 m or 2,500 m2 comprising

that regulates fuel consumption.

9.1.2 Energy/Electricity and Water Utility Building

9.1.2.1 Power Plant Station

 Office and religious service place

 Workshop and warehouse

 Water and fuel pump station

 Mine road and mine equipment

 Access to the work front of mining work

Figure 9.7 Power Plant Station

9.1.2.2 Sanitary Water Processor

is sucked using pump. Rainwater is accommodated in the sedimentation pond,

processed and flowed to reservoir, subsequently pumped to water tank in order to be

9.1.3.1 Mine Workshop

Figure 9.8 Sanitary Water Processing Installation

9.1.3.2 Equipments Storehouse

This building is utilized as a place in storing spare parts of mine equipments. It is

9.1.3.4 Explosive Storehouse

If the company intends to perform self-detonation, then it must provide an explosive

to be used in detonation activity. This explosive storehouse is planned to be constructed

equipments. Area of required land is 300 m2.

9.2 Supporting Means of Mining Operation & Environmental Handling