Erfiandri, Lidana and Marliana, Sri and Ardian, Aldin and LUSANTONO, OKTARIAN WISNU and DWINAGARA, Barlian and HAQ, Shofa Rijalul (2019) Cost Estimation Model for Open Pit Nickel Mining in Indonesia. In: Proceeding of International on Earth Science and Tehnology 2019, December 5-6 2019, Shinki Hall Kyusku University Fukuoka Japan.
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16. CINEST 2019_Prosiding_Cost Estimation Model For Open Pit NIckel.pdf Download (1MB) | Preview |
Abstract
In the early stage of a mining project, cost estimation is one of the crucial aspects. Performing a poor cost estimation method may result in cost overruns leading to the project failure. In these days, O’Hara (1980) method is still commonly practiced and widely used. O’ Hara heavily worked on statistical model, which the mining project data was observed from countries other than Indonesia. Navertheless, performing O’Hara method assumes the cost is only affected by one variable (i.e., production rate), and the inflation rate should be adjusted since the formulation is done several years ago. Given that, O’Hara method is considered as obsolete and irrelevant to be applied in Indonesia. In this research, cost estimation model was intended to specifically estimate operating cost and fixed cost of open-pit nickel mining in Indonesia. The statistical model was still used, but enhanced by considering other significant variables (i.e., fuel consumption, number of trucks, or number of employees), as well as the data gathered within the country. The model validation was done by performing statistical test (i.e., t-test, F-test, and R2). In addition, the proposed method would be beneficial for Indonesia government and investors to see the company’s performance. Keywords: cost estimation, nickel mining, project evaluation, open pit mine cost monitoring.
| Item Type: | Conference or Workshop Item (Paper) |
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| Subjects: | T Technology > TN Mining engineering. Metallurgy |
| Divisions: | Faculty of Engineering, Science and Mathematics > School of Engineering Sciences |
| Depositing User: | DR. Ir. MT BARLIAN DWINAGARA |
| Date Deposited: | 09 Aug 2021 07:02 |
| Last Modified: | 09 Aug 2021 07:06 |
| URI: | http://eprints.upnyk.ac.id/id/eprint/26494 |
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