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Sensitivity of Coal Reserve Economic Feasibility to Price Fluctuations: A Case Study of an Open-Pit Coal Mine in East Kalimantan, Indonesia Arif Deswanda Cismawan; Eddy Ibrahim; Eddy Sutriyono; M. Taufik Toha; Maulana Yusuf; Rahmat Wahyudi Putra
International Journal of Engineering Continuity Vol. 5 No. 1 (2026): IJEC
Publisher : Sultan Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58291/ijec.v5i1.547

Abstract

Coal price volatility is one of the most important factors affecting the economic feasibility of mining operations, particularly marginal coal reserves that are highly sensitive to changes in cost and revenue. This study evaluates the economic feasibility of marginal coal reserves under different coal price scenarios using a case study from an open-pit coal mine in East Kalimantan, Indonesia. The analysis applies a simplified discounted cash flow framework combined with operating margin analysis, critical price determination, and price sensitivity assessment. The results show that, at a base coal price of USD 43,97/ton, the project remains economically feasible, with an operating margin of USD 6,05/ton and a net present value of USD 82,91 million. However, a 20% decline in coal price results in a negative margin of USD 2,74/ton, making the project no longer economically feasible. The critical price was identified at USD 37,92/ton, representing the break-even threshold. The sensitivity analysis further demonstrates that the economic status of marginal coal reserves is dynamic and can shift from feasible to marginal or not feasible depending on market conditions. These findings highlight the importance of integrating price sensitivity into reserve evaluation and mine planning. The proposed framework provides a practical decision-support approach for reserve classification, production planning, and resource optimization under uncertain economic conditions. The main contribution of this study is the development of a practical techno-economic classification framework that links coal price variation with reserve feasibility status through the integration of critical price, operating margin, and break-even stripping ratio. This framework allows marginal reserves to be evaluated as dynamic economic entities rather than as fixed reserve categories under a single base-case price assumption.
Planning of Sharing Wall At Iup Boundaries As A Strategy For Coal Conservation And Compliance With Mining Regulations Arie Kurniawan; Eddy Ibrahim; Taufik Toha; Rahmat Wahyudi Putra
International Journal of Science and Environment (IJSE) Vol. 5 No. 4 (2025): November 2025
Publisher : CV. Inara in Colaboration with www.stie-sampit.ac.id

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.51601/ijse.v5i4.244

Abstract

Coal mining activities in adjacent Mining Business Permit (IUP) areas often face technical challenges at pit boundaries. Conventional double-wall pit designs generally lead to pit losses at border zones, increased overburden volume, and higher stripping ratios, resulting in reduced mining efficiency and suboptimal utilization of coal reserves. Meanwhile, Indonesian mining regulations—Law No. 3 of 2020 in conjunction with Law No. 4 of 2025, Government Regulation No. 96 of 2021, and Ministerial Decree of Energy and Mineral Resources (Kepmen ESDM) No. 1827 K/30/MEM/2018—emphasize the obligation to conserve mineral and coal resources through efficient and optimal mine planning. This study aims to evaluate the planning of sharing wall (joint boundary slope mining) at IUP boundaries as a strategy for coal conservation and regulatory compliance. The research methods include analyzing existing double-wall designs, developing an alternative sharing wall model, recalculating overburden volume, coal reserves, stripping ratio, and pit loss potential, and assessing technical results against conservation regulations. The case study was conducted at the boundary of PT Merapi Energy Coal’s IUP in Lahat Regency, South Sumatra. The analysis results show that implementing the sharing wall design results in a 70 million bcm deviation in overburden volume, an increase in stripping ratio from 5.39 to 5.94 bcm/ton, and an additional 11.8 million tons of recovered reserves compared to the double-wall design. This strategy supports resource conservation principles as stipulated in Kepmen ESDM No. 1827 K/30/MEM/2018, particularly regarding pit loss reduction and coal recovery optimization. Therefore, sharing wall planning not only enhances technical and economic efficiency but also strengthens compliance with national mining conservation regulations.