Strategic Decision Analysis in Disposal Selection to Manage Production Continuity at Pit KGB PT BIB

Abstract

PT BIB, one of Indonesia’s largest coal companies, aims to increase its production capacity annually, with a coal production target of 46.8 million tons approved by the Ministry of Energy and Mineral Resources (ESDM). Achieving this target has become increasingly challenging due to operational delays and environmental constraints, particularly the limited disposal capacity at the KGB Pit. This research focuses on identifying the best decision-making strategies to optimize mining operations, specifically addressing the disposal capacity issues caused by poor materials, landslides, and spatial limitations for disposal locations. The Kepner-Tregoe and Fishbone (Ishikawa) Diagram methods were employed to identify the root causes of these limitations systematically. Three alternative solutions emerged from expert discussions: maintaining the fleet, relocating the fleet, and improving the sequence of operations. The SMART method was applied to determine the best course of action, evaluating each alternative against criteria such as production volume, haulage distance, stripping ratio, preparation time, safety, and environmental impact. The findings provide a clear path forward for optimizing operational efficiency at PT BIB, ensuring that production targets can be met sustainably and effectively.