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一、BENTONITE Peta Lokasi Proyek Project Location Map Background Bentonite deposit of West Java Province is mainly of calsium magnesium type(Ca-Mg bentonite). This type of bentonite is generally used as purifying agent or bleaching earth, especially in palm oil industry. Beside that, bentonite is also required by beverage industry, cooking oil, basic chemical, non-metal mineral and steel industry, soap and cosmetic industry. In West java, bentonite reserves can be found locally in 8 regencies, namely : - Ciamis : in districts of Parigi and Cimerak, total estimated reserve more 1.597.074 tons. - Tasikmalaya : in distric of Karangnunggal, total estimated 7.987.500 ton. - Kuningan : in districts of Luragung, Karang Kencana and Cimahi amounted total hypothetical reserve of more than 1.043.700 tons. - Sumedang : found in districts of Buah Dua, Tanjungmedar, Situraja, Tomo and Tanjungkerta, total estimated reserve ± 106.500.000 ton. - Cianjur : found in districts of Cempaka, Sukanagara, Cibinong, Pagelaran and Kadupandak. - Bogor : found in Nanggungdistrict. Bentonite Sample Location

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Page 1: BENTONITEimages.mofcom.gov.cn/id/table/能源和矿产.doc · Web viewIt can be concluded that this Iron Sand Mining is economically feasible, moreover the selling price of concentrates

一、BENTONITEPeta Lokasi Proyek Project Location Map

Background

Bentonite deposit of West Java Province is mainly of calsium magnesium type(Ca-Mg bentonite). This type of bentonite is generally used as purifying agent or bleaching earth, especially in palm oil industry. Beside that, bentonite is also required by beverage industry, cooking oil, basic chemical, non-metal mineral and steel industry, soap and cosmetic industry.

In West java, bentonite reserves can be found locally in 8 regencies, namely : - Ciamis : in districts of Parigi and Cimerak, total estimated reserve more

1.597.074 tons.- Tasikmalaya : in distric of Karangnunggal, total estimated 7.987.500 ton.- Kuningan : in districts of Luragung, Karang Kencana and Cimahi amounted

total hypothetical reserve of more than 1.043.700 tons.- Sumedang : found in districts of Buah Dua, Tanjungmedar, Situraja, Tomo and

Tanjungkerta, total estimated reserve ± 106.500.000 ton.- Cianjur : found in districts of Cempaka, Sukanagara, Cibinong, Pagelaran and

Kadupandak.

Bentonite Sample LocationKarangnunggal District

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- Bogor : found in Nanggungdistrict.- Sukabumi : found in districts of Jampang Tengah, Lengkong, Sagaranten,

Gegerbitung, Cisolok, Surade, Bantargadung and Cikidang amounted total reserve of millions of tons.

The development of bentonite consumption of Indonesia in the last decades shows an average increase of 24,04% per year, which significantly influenced by the demand from palm oil industry, especially from Indonesia and Malaysia which are the world’s biggest producer of palm oilExisting Condition - Sample location for bentonite mining and processsing proposed here is

Karangnunggal District, Tasikmalaya Regency.- Mining Practice: semi-mechanical open pit mining - Deposit condition :

Width of reserve : 30 haThickness : 5 – 10 m, average 7 mEnvironment : dry field, hilly regions.Overburden : clay soil, thickness 0,5 – 2 m

Stripping ratio : 1,5:7Technical Analysis

a. Required equipment consists of mix mechanical equipment (handdrill, buldozer) and manual, transportation vehicle, and other equipment

b. Mining mechanism. Overburden stripping :- Mining lifetime : 10 tahun- Avrg. overburden thickness : 1,5 m- Volume to be excavated per year : 14.789 x (1,5:7) = 3.169 m3 solid overburden

or 3.865 m3 loose overburden.- Stripping production = 200 x 0,80 x 0,75 x 1,0 = 120 m3 loose overburden per

hour. With 0,82 loading factor, the stripping prod. Is 98,4 m3 solid overburden/hour, or 2,13 x 236.160 = 503.021 tons of solid overburden per year.

- Time required for overburden stripping = 3.169 : 98,4 = 32 hour per year.Financial Analysis Feasibility of InvestmentAssumptions : - Project duration : 10 years- Economic lifetime of equipment, infrastructure and utility : 10 years- Depreciation of equipment : 5 years (straight line depreciation).- Reinvestment of equipment at the 6th year with a 5% excalation investment

value 5% (internal capital resource)- Residual value of equipemnt at the 5th year = 40%, other utilities = 0%,- Minimum interest rate (i*) = 17% yearly, interest rate of loan = 25% yearly,- Selling price of final product increases by 5% annually,- Production cost (fixed and variable) increases 5% annually,

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- Initial capital is returned at the end of project duration.- Production rate is equal with selling rate.

Estimation of income, costs and investment fund of bentonite :

a. Annual Mining CostTotal annual operational mining cost is 665,400 USD

b. Operational CostTotal production cost is operational cost plus depreciation cost, which amounted 895,800 USD

Investment cost of bentonite is as follows:a. Total investment cost is 1.5 M USD, consists of 60% own capital 875,400 USD

and 40% loan capital (maximum loan period 10 years) 583,400 USDb. Planned production rate is 100 ton/day or 30.000 ton/year with selling price

0.07 USD,- per kg. Processing equipment work hours is 24 hours (3 shift). Based on the above data and calculations, the cash flow and profitability indicators of bentonite mioning business is as follows :- (NPV) = 7.8 M USD- (IRR) =63,10%- Payback Period (PP) = 1 year 11 months Profitability Index (PI) = 3,1Project StatusBentonite at Karangnunggal District, Tasikmalaya Regency has already owned eksploitation permit (SIPD) covering an area of 343 Ha, by the name of PD. Agribisnis & Pertambangan. The processing plant of bentonite to be powder form is nearby the mining site with installed capacity of 2000 ton/month. Recent market segment is to supply national demand, especially from cooking oil industry.

Proposed Business OptionInvestment opportunity of bentonite can be conducted by :

1. Business cooperation, especially investment for quality improvement technology and production capacity.

Direct purchase of final product.

Proposed Incentives - Facilitation of accelerated permit issue and mediation to local government as

well as local community by Government of West Java Province.Data and information support.

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二、Cisukarame-Cisolok Geothermal Power Plant

Background

1. Indonesia has the biggest geothermal potency in the world (+ 20.000 MW); whereas 27% of the potency is on West Java province with a total of 6101 Me;

2. The development of Geothermal Power Plant in West Java is projected to anticipate a + 900 MW disparity in electricity supply starting in year 2008.

The proposed Cisukarame – Cisolok geothermal Power Plant location is projected to supply the electricity demand of West Java, especially the southern part

Existing Condition

- The status of the proposed location is outside the geothermal area owned by Pertamina, thus this location can be managed by Regional Government of West Java Province.

- The location is subsequently near the fast growing Pelabuhanratu tourism area. Surface manifestation : hot spring, geyser, solfatar, hydrothermal alteration, with a temperature of 60-870 C.

PROPOSED PLANT LOCATION

BANDUNG

JAKARTA

Sukabumi

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Technical Analysis - Area width of Cisukarame-Cisolok is + 5.000 Ha.- Hypothetical potency amounted 190 MWe (potential resource 50 MW, indicated reserve 133 MW).Classified into medium temperature (200-225 C).

Analisa Finansial/ Financial Analysis

Variable Value Unit

Electricity Price 45 US$/MWh

Electricity Price Escalation 1.5% per year

Capacity Factor 90%  

Depreciation 10 years

Depreciation rate 10%  

Well Capacity 10 MW

Drilling Succes Ratio 80%  

Steam Production Decl Rate 5%  

Debt 70%  

Equity 30%  

Tax 34%  

Disc rate 10%  

Interest Rate 7.5%  

IDC 7.5%  

Loan period 10 years

Development well cost 2.6 Millions US$

Make-Up well cost 2.6 Millions US$

Exploration well cost 2.8 Millions US$

O&M Steam Field 2% Steam field capital

O&M Power Plant 2 US$/MWh

Indicators Value

Steamfield Investment US $ 24.5 Million

Power Plant Investment US $ 29.78 Million

Total Investment US $ 54.28 Million

NPV 5.014 US $

IRR 13.07 %

Payout time Between year 9 to 10

Proposed Business Option

Several options for geothermal investment :

- Direct investment.

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Share Holder

Incentives

- Strong commitment of Local (Regency) and Regional Government of West Java Province to facilitate the development of Geothermal Power Plant.

- Facilitation of accelerated permit issue.

- Data and information support.

- A Task Force Team to facilitate investment matters is provided by the Regional Government of West Java Province.

三、Tampomas Geothermal Power Plant

Project Location Map

PROPOSED PLANT LOCATION

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Analisis Teknis - Area width of Tampomas geothermal area is + 880 Ha.- The complex owns referred potency of 100 MW. - Classified as medium temperature.The generated electricity can be loaded by the existing transmission network in adjacent areas.

Financial Analysis

Assumptions :

Estimated electricity generation 30 MW

Duration of contract Period : 30 years

Operation of Plant Unit 1 starts at the third year

Operation of Plant Unit 2 starts at the fourth year

Other asummptions and their values are shon in the following Table :

Assumptions For Calculation of Financial Analysis

Variable Value Unit

Electricity Price 45 US$/MWh

Electricity Price Escalation 1.5% per year

Capacity Factor 90%  

Depreciation 10 years

Depreciation rate 10%  

Well Capacity 10 MW

Drilling Succes Ratio 80%  

Steam Production Decl Rate 5%  

Debt 70%  

Equity 30%  

Tax 34%  

Disc rate 10%  

Interest Rate 7.5%  

IDC 7.5%  

Loan period 10 years

BANDUNG

JAKARTA

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Development well cost 2.6 Millions US$

Make-Up well cost 2.6 Millions US$

Exploration well cost 2.8 Millions US$

O&M Steam Field 2% Steam field capital

O&M Power Plant 2 US$/MWh

Indikator Keuntungan/Profitability Indicators

Indicators Value

Steamfield Investment US $ 24.5 Million

Power Plant Investment US $ 29.78 Million

Total Investment US $ 54.28 Million

NPV 8.955 US $

IRR 15.44 %

Payout time Between year 10 to 11

Proposed Business Option

Several option for geothermal investment :

- Direct investment.Share Holder

Incentives

- Strong commitment of Local (Regency) and Regional Government of West Java Province to falilitate the development of Geothermal Power Plant.

- Facilitation of accelerated permit issue.

- Data and information support.

A Task Force Team to facilitate investment matters is provided by Regional Government of West Java Province.

四、Tangkubanparahu Geothermal Power Plant

Peta Lokasi Proyek Project Location Map

PROPOSED PLANT LOCATION

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Background

3. Lying on the ring of fire, Indonesia has the biggest geothermal potency in the world (+ 20.000 MWe); whereas 27% of the potential is in West Java province with a total of 6101 MW;

4. There are 4 Geothermal Power Plants already in operation, namely Kamojang (140 MW), Awibengkok G. Salak (330 MW), Darajat (125MW) and Wayang Windu (110MW), and some geothermal contracts which currently has not been in operation totalling together 1150 MWe.

5. The development of Geothermal Power Plants in West Java is projected to anticipate a + 900 MW disparity in electricity supply starting in the year 2008.

The proposed Tangkubanparahu Geothermal Power Plant possesses some comparative advantages as a business prospect. Existing Condition

- The status of the proposed location is outside the geothermal area owned by Pertamina, so this location can be managed by Regional Government of West Java Province.

- Initial geothermal supporting data for this location is currently being prepared by the Regional Government of West Java Province

- Surface manifestation: crater, solfatar, fumaroel, steaming ground, silicious cinter silika, hydrotermal alteration.

- Temperature of manifestation is 1720 C

.Gambaran Sistem Panas Bumi/Geothermal System of Tangkubanparahu Area

Technical Analysis

BANDUNG

JAKARTA

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- Area width of Tangkubanparahu geothermal area is + 4.863 Ha.- The complex owns hypothetical potential of 190 MWe (resource 100 MW, estimated potential 90

MW).- Accessible location from big cities.- Classified as high enthalpy zone.The generated electricity can be distributed by the existing transmission network in adjacent areas.

Analisis Finansial/ Financial Analysis

Variable Value Unit

Electricity Price 45 US$/MWh

Electricity Price Escalation 1.5% per year

Capacity Factor 90%  

Depreciation 10 years

Depreciation rate 10%  

Well Capacity 10 MW

Drilling Succes Ratio 80%  

Steam Production Decl Rate 5%  

Debt 70%  

Equity 30%  

Tax 34%  

Disc rate 10%  

Interest Rate 7.5%  

IDC 7.5%  

Loan period 10 years

Development well cost 2.6 Millions US$

Make-Up well cost 2.6 Millions US$

Exploration well cost 2.8 Millions US$

O&M Steam Field 2% Steam field capital

O&M Power Plant 2 US$/MWh

Indicators Value

Steamfield Investment US $ 37.9 Million

Power Plant Investment US $ 57.86 Million

Total Investment US $ 95.76 Million

NPV 17.197 US $ Million

IRR 16.13 %

Payout time Between year 11 to 12

Proposed Business Option

Several options for geothermal investment :

- Direct investment.Share Holder

Incentives

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- Strong commitment of Local (Regency) and Regional Government of West Java Province to falilitate the development of Geothermal Power Plant.

- Facilitation of accelerated permit issue.

- Data and information support.

A Task Force Team to facilitate investment matters is provided by Regional Government of West Java Province.

五、Ironsand

Background

The Iron sand potential is spread along the south coast of West Java Province, in the Regencies of Sukabumi, Cianjur, Tasikmalaya and Ciamis.

The demands for iron sand are currently increasing, because this material is widely used in the production of iron steel (the current demand is 2.000.000 tons of iron pellets per year) and national portland cement industry (+ 854.000 tons of concentrate per year).

The mining system used so far is manual and semi-mechanic, and the iron sand is sold to other regions as raw material. This not only causes a low price, but it also causes environmental problems and infrastructural damages.

BANDUNG

JAKARTA

Ironsand Deposit

Proposed Pier Location

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A full-mechanic or mechanic-manual combination mining system is being proposed, which will separate the iron concentrate from the sand. The remaining sand can be returned to the mining site in order to prevent environment problems and sea abrasion.

To overcome infrastructural damages caused by inter-region transportation, it is proposed that the transportation is carried via sea by building quays.

Existing conditiono The spread of iron sand locations in the form of concentrates in the West Java

Province: Sukabumi Regency : located in the Subdistricts of Ciracap, Surade,

Jampang (49.800.000 tons), Tegalbuleud and Pelabuhan Ratu. Cianjur Regency : located in the Subdistrict of Sindang Barang (4.000.000

tons) and the Subdistrict of Cidaun (4.000.000 tons). Tasikmalaya Regency: located in the Subdistrict of Cipatujah (4.200.000

tons) and the Subdistrict of Cikalong (2.400.000 tons). Ciamis Regency: located in the Subdistrict of Pangandaran and Cijulang for

around 500.000 tons.o The proposed iron sand location as an example is in the village of Sinarlaut,

Subdistrict of Agrabinta, Cianjur Regency.o The exploration activity in this location has been done with hand drilling in

654 drill points with 200 x 200 m grade, where 517 points of them have magnetic degree (MD) ≥ 7 % (Cut Off Grade)

o Most of the iron sand deposit in this region is well revealed in 2-3 rows of sand dunes, with the deposit width from the highest tide coast line towards the land = 110 meters up to 705 meters.

o The iron sand deposit in the Sinarlaut region generally comprises the following minerals: Magnetit (Fe3O4), Haematit (Fe2O3) dan Ilmenite (FeOTiO2)

o The iron sand deposit with MD ≥ 7 % generally is in the form of lenses, which are stretched along or parallel to the coast line, so the reserve is counted with the “area of influence method” approach.

Technical Analysis A full mechanic mining system using heavy equipments. The iron (Fe) degree is around 56,1 – 59 % and Ti O2 10 – 14,9%. The most suitable sea transportation facility to be build is a quay with the

capacity of 5.000 to 10.000 DWT, whether it is in Cibuni river of Cikaso river, so that it needs a tug boat and a barge as its means of transport.

In the example location (Sinarlaut village, Agrabinta Subdistrict) the reserve width which can be mined/dug out is 241.5 hectares (Cut Of Grade ≥ 7 %) with the total potential (on the land and under sea level) of approximately 10 million cubic meters of crude sand.

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Data Teknis Technical Data

No Description Deposit Condition Unit

Above sea water (onshore)

Under sea water level

1. Width of deposit area 2.151.000 677.027 m2

2. Deposit Volume 7.948.589 2.188.783 m3

3. Length of deposit area 8.378.870 - m

4. Average width of deposit 110,53 – 705,26 - m

5. Average thickness 3,68 3,23 m

6. Total crudesand 13.990.741 3.522.112 ton

7. Total concentrate 2.573.772 359.301 ton

8. Total Fe 1.515.400 208.716 ton

9. Total TiO2 295.393 42.261 ton

10. Average density Insitu 1,75 1,61 ton/m3

11. Average Magnetic Degree 18,38 10,34 %

12. Avrg. Fe content 58,64 57,98 %

13. Avrg TiO2 content 11,50 11,66 %

Financial AnalysisThe feasibility of a full mechanic mining investment with the production of 1 million tons of concentrate per year:Assumptions used:o Length of the project: 10 yearso The economic age of the equipments = 5 years, the supporting facilities and

construction = 10 yearsEquipment depreciation 5 (five) yearso (straight line depreciation).o Equipment reinvestment in the sixth year with the investment value

escalation of 5 %,o The residue value of equipment in the fifth year is 40 %, while the other

facilities is 0 %.o The Minimum Rate of Return is 20 % per year, the loan interest is 25 % per

year.o The final processing product selling price will increase 5 % per yearo The production cost (fixed and variable) will increase 5 % per year,o The initial working capital will return at the end of the project

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(2) the cost composition in the mining plan- The total of investment (capital) for initial investment availability (mining

facilities) plus the company’s operational cost = 5.7 M USD,-, consisting of 30 % equity and 70 % loans.

- The tax is applied according to the Government Regulations on retributions and taxes

- The amount of concentrate production is planned to be 1.000.000 tons/year, with the selling price of Rp. 8.500,- per tons of concentrates,

Payback period, HPV and IRRThe cash flow and feasibility indicator value of the iron sand working investment is as follows:- NPV (Net Present Value) = 1.2 M USD,- or positive- IRR (Internal Rate Of Return) = 34,24 %, atau ≥ 20 %,- PBP (Pay Back Period) = 4 years 3 months 19 days, or shorter that the project’s

age (10 years)- It can be concluded that this Iron Sand Mining is economically feasible,

moreover the selling price of concentrates is currently up to US$ 20 per ton of concentrate in place (stock pile)

Notes:Above investment value does not include the costs of constructing a quay in the Cibuni or Cisokan river mouth, with the capacity of 5.000 to 10.000 DWT, which is predicted at + 1.1 M USD-1.7 M USD

Project StatusThe example location is in the Sinarlaut village, Agrabinta Subdistrict, which already has the Mining Businees Permit (IUP/KP) Exploration with the area of 241,5 hectares on behalf CV Sugih Mukti. Alternative Cooperation OptionThe iron sand business can be done by:1. operational cooperation2. direct purchase of end products / concentratesIncentives given- The support of facility and rapidness of getting permits and contacts with the

local government and people of the Provincial Government- Support in gathering data and information- Assistance in the formation of small mining groups or Partnership Structures

六、Lime Pozolan CementPeta Lokasi Proyek Project Location Map

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Background

The term Pozolan refers to a natural or artificial substance which consists of silicate element (SiO2) and clay (Al2O3), reactive, in itself do not possess cement characteristic, but when fine substance is mixed with Calcium Hydroxide (slaked lime) and water after sometime in room temperature will form solid substance which is water-proof and insoluble. This character is called pozolanic. One of natural subtance that has pozolanic character is trass.

Natural pozolan that owns special characteristic especially Pozolan Trass from Nagreg has been studied and used since Dutch era. The usage of pozolan is for construction either water-related construction or others. The pozolan cement has a relatively lower price than portland.

Concrete containing mix of Pozolan-Trass Nagreg is more superior than without it, the reasons are: 1. Concrete becomes more reliable to aggressive water movement. 2. Concrete becomes more water-proof. 3. The older the concrete, its endurence increases. 4. Amount of hydration heat in the concrete is lower, especially in

water-related construction. This means no crack will develop in the concrete. 5. Concrete becomes more practical and easily handled, more plastic,

and has higher confined strength..Due to the above characteristics, pozolan is very appropriate to be used as hidraulic adhesive, light concrete, and other construction purposes. Its relatively low price offers new alternative to be used for development of low cost housing.Existing Condition

BANDUNG

Trass Deposit

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- Location of Pozolan-trass proposed here is Nagreg (Mt. Kendan) Bandung Regency, where a detail exploration has been conducted over 50 ha area.

- Geochemcical analysis of 28 points shows that Nagreg trass has pozolan activity 88-98%, when mix with lime will acquire maximum confined strength after 28 days is 152 kg/cm2 (SNI 15-0301-89). Nagreg Trass is classified as Quality 1 (NI20 test); mineral Si02+Al2O3+Fe2O3 amounted 81-92% (requirement : >70%).

- The processing of Pozolan-Trass to be Lime Pozolan Cement is quite simple, as follows : Trass drying Grinding Mixing (slaked lime and additives)

Packing

SIMPLE FLOWCHARTOF LIME POZOLAN CEMENT PROCESS

Analisis TeknisJUMLAH CADANGAN• Area width = 50 Ha• Average Overburdenthickness = 2-3 m• Overburden burden = 2,6 million bcm• Highest Elevation = 1055 m a.s.l• Lowest elevation = 805 m a.s.l• Deposit Volume = 56,46 million bcmFeasibly Mined = 40,23 million bcm

NAGREG POZOLAN – TRASS NAGREG QUALITY

DESCRIPTION Requirements

L8A L11A TP12 TP13

SiO2 + Al2 O3+ Fe2 O3

>70% 91,44 90,67 90,32 89,88

Quick Lime Tohor

Slaking processda

manSieving 200 mesh

Storing

Trass Mining

Drying/activation

Grinding 200 mesh

StoringPortland Semen

Mixing homogen

Packing

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Slaking residue <10% 6,91 7,62 8,74 7,2Pozolan Activity ≥75% 98 91 95 98

SO3 ≤4% 1,25 1,1 0,55 2Na2O ≤1,5% 0,37 0,56 0,27 0,76

Note : L8A, L11A, TP12, and TP13 are tested samples.Financial Analysis Feasibility of Investmenta. Planned annual production = 30.000 tonsb. Avrg specific gravity = 0,98 ton / bcmc. Mining lifetime= 40.230.000 bcm x 80% x 30.000 ton/thn x 0,90= 1.051tahun.

CALCULATION OF PRODUCTION COST LIME POZOLAN CEMENT

七、ZEOLITEPeta Lokasi Proyek Project Location Map

2.246.119.300,44,-1.842.522.682,24,-1.352.546.033,11,-Break Even Point (BEP, Rp)

9.204.852.173,91,-7.124.969.130,43,-4.753.146.086,96,-4. Total Production Cost

30.000,-22.500,-15.000,-Total production, ton/year750.000,-562.500,-375.000,-Zak/year

306.828,41,-316.665,29,-316.876,41,-Production cost, Rp/ton306,83,-316,67,-316,88,- Rp/kg

14.727,76,-15.199,93,-15.210,07,-Selling price/Zak

138.644,72,-110.199,2080.840,36,-Break Even Point (BEP, ton)

16.200,54,-16.719,9316.731,07,-Selling price/Zak (+PPn)

584.000.000,-471.500.000,-359.000.000,-3. Administration84.000.000,-84.000.000,-59.000.000,-2. Fixed Cost

8.536.852.173,91,-6.569.469.130,43,-4.335.146.086,96,-1. Variable Cost1007550

PRODUCTION CAPACITY (ton/day)

INVESTMENT COST (Rp)

URAIAN

125.000.000 Ton

50.000.000 Ton

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Latar Belakang Zeolite reserve is found abundantly in West Java Province, however it is still

sold in the form of boulders with very low selling price. Thus, to increase value added, the zeolite reserve should be proceessed first to be sold as final product.

Development and investment opportunity is nowadays is good, considering the increase in technological development and usage of zeolited , such as in agiculture, ndustry, fishery, and pollution control.

Distribution of zeolit reserve in West Java : - Bogor Regency: foun in district of Nanggung, total estimated reserve 125

million tons.- Ciamis regency : found in districts of Kalipucang and Padaherang.

Tasikmalaya Regency: found in districts of Cipatujah, Karang nunggal, Cikatomas and Cikalong with total estimated reserve 50 million tons.Sukabumi Regency : in Cikembar with estimated reserve of 159.435.000 tons and Gegerbitung district.Condition exsiting - Sample location for zeolite mining proposed here lies in Cikembar istrict,

Sukabumi Regency with total area of 120 hectares.- Total estimated reserve approximately 8 million metric tons.- Zeolite as raw material in this location is then processed in other region namely

Plered, Purwakarta Regency, yo become final products as zeolite flor, sand and pellet. Installed production capacity 2500 ton/moth.

- Recent market segment is 60% export to Malaysia and Vietnam, especially for

Zeolite Sample Location

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agriculture and water treatment.

Technical Analysis

a. Deposit Condition

Zeolite deposit is well exposed at rice fields. -Overburden : clayey soil, thickness 30 cm-Tebal cadangan : 3 m-Stripping ratio : 1 : 10

b. Production rate- Planned production: 30.000 ton per year- Mining lifetime : 10year- Depreciationfactor: 5%- Tonnage to be excavated annually: (30.000 x 5%) + 30.000 = 31.500 tons- Volume to be excavated annually 31.500 : 2,13 = 14.789 m3

- Workdays per year: 300 days. - Average production rate per day: 31.500 : 300 = 105 tons

Financial Analysis Feasibility of InvestmentAssumptions : - Project duration : 10 years- Economic lifetime of equipment, infrastructure and utility : 10 years- Depreciation of equipment : 5 years (straight line depreciation).- Reinvestment of equipment at the 6th year with a 5% excalation investment

value 5% (internal capital resource)- Residual value of equipemnt at the 5th year = 40%, other utilities = 0%,Minimum interest rate (i*) = 17% yearly- interest rate of loan = 25% yearly,- Selling price of final product increases by 5% annually,- Production cost (fixed and variable) increases 5% annually,- Intial capital is returned at the end of project duration.- Production rate is equal with selling rate.

Details of Investment analysis : a. Income

Planned annual production 30.000 tons, with selling priceRp. 400,- per kg. Thus, total expected income is 1.4 M USD- per year.

b. Production Cost Production cost consists of fixed coast and variable cost, whis is estimated to be 554,000 USD

c. CashflowLifetime of processing equipment is 5 years, with 40% residual value, meaning that in the 6th year a reinvestment is conducted which is Rp

Page 20: BENTONITEimages.mofcom.gov.cn/id/table/能源和矿产.doc · Web viewIt can be concluded that this Iron Sand Mining is economically feasible, moreover the selling price of concentrates

4.966.300.000 x 1,05 = 579,400 USD5 % excalation value). The 40% residual value (231,700 USD) is considered as cash inflow.

Investment cost of zeolite mining is as follows:c. Total investment cost is Rp. 8.635.670.000,-, consists of 60% own capital Rp.

5.181.402.000,- and 40% loan capital (maximum loan period 10 years) Rp. 3.454.268.000,-

d. Interest rate is applied according to Government Regulation about Tax and Retribution, as follows :

- PPn = 10%- PPh = 15% for value < Rp. 10.000.000,-.- 25% for value Rp. 10.000.000,- – Rp. 50.000.000,-- 35% for value > Rp. 50.000.00,-

e. Planned production rate is 100 ton/day or 30.000 ton/year with selling price Rp 400,- per kg.

f. Payback period, NPV dan IRR-(NPV) = 4,4 M USD-(IRR) = 62,3%- (PP) = 1 year 11 months - (PI) = 3,1

g. Investment RequirementsInvestment fund required for zeolite pellet mining and processing is 959,500 USDProject StatusThe mining site of the sample location has already owned the Exploitation Permit (IUP) covering a total area of 120 Hectares by the name of PT. Prodmin Internusa.

Proposed Business OptionInvestment opportunity of zeolitecan be conducted by :

2. Business cooperation.

Direct purchase of final product.

Proposed Incentives - Facilitation of accelerated permit issue and mediation to local government as

well as local community by Government of West Java Province.

- Data and information support.

Facilitation of small scale mining group forming, shoul the chosen option is partnership pattern.