Mineral and Energy Economics Presentation

Economic Offering
of Mineral and Energy

ICHWAN RIZKY MURANDA 2010512028

Contents of this Presentation

1 Introduction

2 Economic Mineral and Energy Invesment Analysis

3 Comparative Analysis of Mineral and Energy from an Economic and Project Perspective

4 Mining Project Evaluation

5 Mining Economics and Finance

6 Mining Risk Assessment

01
Introduction
Introduction

The economic offering of mineral and energy refers to the amount of mineral and
energy products available for sale in the market, and its currently influenced by
various constantly evolving factors, and In managing the supply of energy minerals
we need to consider the interests of all parties and a sustainable future.
02
Economic Mineral and Energy Investment Analysis
Economic Mineral and Energy Investment Analysis

This investment involves various activities such as exploration, mining, processing,

and marketing of mineral and energy resources. According to the World Bank,
economic mineral and energy investment is a sector that has the potential to
significantly contribute to a country's economic growth. This investment can also
provide benefits in terms of job creation, technology transfer, and increasing the
country's revenue from the mineral and energy sector.
Economic Mineral and Energy Investment Analysis
Factors Influencing Investment Decisions

01 Commodity Price 04 Infrastructure

02 Regulations and Policies 05 Technology

03 Environmental and Social Impact

Economic Mineral and Energy Investment Analysis
Types of Investment in the Mineral and Energy Sector

01 Exploration 04 Renew-energy Investment

02 Mining 05 Green-Tech Investment

03 Marketing
Economic Mineral and Energy Investment Analysis

Factors Influencing Investment in the Mineral and Energy Sector

Political and Regulatory Economic Factors Environmental and Social

Factors Factors

Government policies Commodity Price Environmental Impact

Regulations Market Demand Social Impact
Economic Mineral and Energy Investment Analysis
Steps to Analyse Mineral and Energy Economics Investment

01 Financial Feasibility Study 04 Technical Analysis

02 Risk Analysis 05 Marketing Evaluation

03 Environmental Analysis
Economic Mineral and Energy Investment Analysis
Current Condition in Indonesia

• According to data from the Ministry of Energy and

Mineral Resources (ESDM), in 2020, investment in the
mineral and coal sector reached USD 4.5 billion, an
increase of 31% compared to the previous year.

• The Indonesian government has made various efforts to

encourage investment in the mineral and energy sector,
such as providing fiscal and non-fiscal incentives for
investors, accelerating licensing processes, and
improving transparency and regulatory stability.
03
Comparative Analysis of Mineral and Energy from
and Economic and Project Perspective
Comparative Analysis of Mineral and Energy from and Economic and Project Perspective
Economic Perspective

• According to data from the Ministry of Energy and Mineral Resources (ESDM), the mineral and coal sector contributed
1.09% to Indonesia's Gross Domestic Product (GDP) in 2020, while the energy sector contributed 6.59%. In addition, the
mineral and energy sector also contributed significantly to the state's revenues from the export sector.

• This sector faces challenges and risk that need to be addressed such as unstable regulations, inadequate infrastructure, and
challenges in meeting increasingly strict environmental standards

• the utilization of Indonesia's mineral and energy resources needs to be carried out wisely and sustainably in order to
provide maximum benefits to the Indonesian economy and the welfare of society.
Comparative Analysis of Mineral and Energy from and Economic and Project Perspective
Project Perspective

• According to the "Mining in Indonesia: Investment and Taxation Guide 2021" report by PwC, Indonesia has a lot of
untapped potential for mineral and energy resources.

• The Indonesian government has made efforts to increase investment and development of mineral and energy projects by
providing fiscal and non-fiscal incentives, accelerating licensing processes, and reducing bureaucracy.

• it is important to conduct risk analysis and project feasibility by considering factors such as reserve estimates, investment
costs, potential revenues, and environmental, legal, and political risks.
Comparative Analysis of Mineral and Energy from and Economic and Project Perspective
Comparative from and Economic and Poject Perspective

• From an economic perspective, the mineral and energy sectors are important for the Indonesian economy.

• From a project perspective, the success of a mineral and energy project in Indonesia depends not only on the availability
of natural resources but also on factors such as regulations, government policies, infrastructure, technology, and project
management.

• the mineral and energy sectors are important for the Indonesian economy but also face challenges and risks that need to be
addressed to provide maximum benefits for the economy and the welfare of the people. Therefore, it is important to
conduct comprehensive risk and feasibility analyses to improve the performance of mineral and energy projects in
Indonesia.
04
Mining Project Evaluation
Mining Project Evaluation
Stages of Mining Project Evaluation

Pre-Production Production Post- Production

Mining Project Evaluation

Environmental Impact Assessment

Methods

Cost-Benefit Analysis

Risk Analysis
Economic Mineral and Energy Investment Analysis

Factors Influencing Investment in the Mineral and Energy Sector

Social Factors Economic Factors Environmental Factors

Economic Mineral and Energy Investment Analysis
Challenges in Mining Project Evaluation

• Unstable Regulation

• Inadequate Infrastructure

• Challenges in Meeting Environmental Standards

05
Mining Economics and Finance
Mining Economics and Finances
Investment Cycle in the Mining Industry

Exploration Development Production

Closer Consolidation
Mining Economics and Finances
Financial Challenges in the Mining Industry

• High Investment Capital

• Commodity Price Fluctuations

• Dependency on Natural Factors

• Dependency on Export Markets

• Complex Supply Chain

06
Mining Risk Assessment
Mining Risk Assessment
Risk in the Mining Industry

• Geological Risk
• Production Risk
• Commodity Price Risk
• Government Policy
• Environmental Risk
• Financial Risk
Mining Risk Assessment

• Hazard and Risk Assessment (HRA)

• Reliability, Availability, and Maintainability Analysis (RAM)

Methods

• System Analysis

• Checklist Analysis

• Quantitative Analysis
Mining Risk Assessment
Factors Affecting Mining Risk Assessment

• Type of mineral mined

• Mining location

• Mining method used

• Size of the mine

• Environmental conditions

• Compliance with regulations and safety standards

Mining Risk Assessment
Challenges in Mining Risk Assessment

• Environmental complexity

• Data limitations

• Subjective assessment process

• Public demands

• Policy changes
Mining Risk Assessment
Mining Risk Management Strategy

• Risk identification

• Risk evaluation

• Risk control

• Risk monitoring

• Re-evaluation
Thank you