PT. Garumedang Buana Mandiri (GRabuma) was engaged by PT. Hengjaya Mineralindo (HM) to conduct a Feasibility Study and Financial Analysis of the Bete-Bete Limestone Project, located in Bungku Pesisir District, Morowali, Central Sulawesi, Indonesia. The Feasibility Study and Financial Analysis were conducted following the Pincock perspective (Pincock, et al., 2009). The cost estimation in this report follows the guidelines from the cost estimate classification system outlined by the Association for the Advancement of Cost Engineering (AACE) International No. 47R-11 (AACE, 2020b).
HM is a subsidiary of Nickel Industries Limited. HM holds a 100% interest in the Bete-Bete limestone project, which is located northeast of HM’s mining permit (IUP) and covers a total area of 127 hectares. Initial exploration of this project confirmed an average CaO content of 52.67%, with a thickness exceeding 100 meters and no overburden on the surface.
The Bete-Bete Limestone Project aims to produce 3 to 4 million tons per annum, offering four different products categorized by size (4-9 mm, 2-3 mm, 1-2 mm, and less than 1 mm). These products will be transported directly to the International Tsingshan Stainless Steel (ITSS) smelter, located approximately 16 km from the proposed mining site.
The primary focus of a Feasibility Study and Financial Analysis is to: 1) provide capital expenditures, operating expenditures, and revenues based on the Feasibility Study Stage, following the Pincock Perspective and the Association for the Advancement of Cost Engineering (AACE) International Recommended Practice No. 47R-11; and 2) conduct a financial analysis based on these figures to calculate the net present value (NPV), internal rate of return (IRR), and payback period using the relevant discount rate.
