Study On The Investment Feasibility Of Indonesia Mine Project

Investment feasibility study of the project is a very important link in the investmentmanagement activities of enterprises. Unique investment environment in Indonesia coal mineproject investment risk analysis study to assess the risk of the operation of the project, andtargeted preventive measures.This article first introduces the basic situation of the DBP project, including the locationof the project site, logistics and warrants procedures, intention of project investment and withthe cooperation of local investors. Then the paper assesses the investment environment inIndonesia, including Indonesia’s political, legal, economic, and diplomatic and foreigninvestment in coal resources. Third, the DBP project technical analysis, analysis of minereserves of coal quality and mining conditions. View from coal burial conditions, DBP projectsite is suitable for a large open-air grapple machine mining. Fourth, the DBP project financialanalysis, DBP project FOB cost, ROI, payback period, internal rate of return and financialbreakeven point. Sixth, assess DBP project risks, including the risk of the project’s technical,economic risk and political and legal risks, proposed the targeted risk preventioncountermeasures, including:1, continue exploration to improve the credibility of the minereserves, the rational use of open-pit mining techniques to avoid the risk of geological miningarea.2, rational use of the exchange rate tool to reduce as far as possible to ignore the impactcaused by the rupiah exchange rate changes on the cost. Initiatives to control the political andlegal risks:(1) respect local laws and regulations;(2) local employees;(3) select partners inIndonesia set up joint ventures;(4) financing locally.