Decision Making Acquisition Corridor Area to Get Additional Reserve to Extend the Mining Life at PT Borneo Indobara

Abstract

PT Borneo Indobara (PT BIB) is a coal mining company facing a critical challenge: its current coal reserves of 641 million tons will be depleted by 2035, while its operational permit extends until 2036. To address this, PT BIB aims to acquire an unclaimed corridor area adjacent to its Kusan Girimulya Bawah pit, which could provide additional reserves. This study evaluates three acquisition alternatives using the Simple Multi-Attribute Rating Technique (SMART) to determine the optimal option based on cost, reserve volume, operational feasibility, and regulatory compliance. The research employs qualitative methods, including interviews, focus group discussions, and field observations, to gather data on technical and economic factors. Findings reveal that Option 1–acquiring the corridor area without joint operations–offers the lowest cost ($31.29/t), operational simplicity, and sufficient reserves (3.63 million tons) to extend mining operations until 2036. Despite yielding fewer reserves than other options, it minimizes regulatory hurdles and operational disruptions. The study concludes that Option 1 is the most viable solution, balancing reserve acquisition with cost efficiency and operational flexibility. Implications include recommendations for revising feasibility studies, ensuring equipment capacity, and securing forestry permits to facilitate implementation.