Fleet Ownership Model for Mineral Export Products Concerning Indonesia's Downstream Mineral Policy: A Case Study of Copper Ore Exports

T. Achmadi, S. D. Lazuardi*, Igns Buana, A. Mustakim, R. S. Rahmawati

*Corresponding author for this work

Research output: Contribution to journalConference articlepeer-review

Abstract

Indonesia's copper ore has a contribution of 3% in the world's copper ore needs and has rank of the 5th largest export of mining materials after briquette, kerosene, coal, and crude oil. According to Mineral and Coal Mining Law Number 4 of 2009 that raw materials of mining products have been prohibited to be exported including copper ore due to increasing the value of mineral export products. Thus, it would affect to the current copper ore shipment, which should firstly be processed by smelter to be work-in-process products, namely cathodes. In order to comply with the downstream policy, this study aimed to select the optimum vessel used for delivering copper ores to smelter as well as to define the minimum unit cost for transporting cathodes from smelter to importing countries. The method of non-linear programming was used to produce the minimum unit cost of transport for these three scenarios of fleet ownership model: (1) charter vessel, (2) new shipbuilding vessel, (3) second-hand vessel. The results obtained that the selected domestic ship was a new shipbuilding scenario with the type of bulk carrier, transporting copper ores from site to smelter. Meanwhile, the selected export ship was a voyage charter scenario with the type of general cargo vessel, delivering cathodes from smelter to importing countries.

Original languageEnglish
Article number012024
JournalIOP Conference Series: Earth and Environmental Science
Volume1198
Issue number1
DOIs
Publication statusPublished - 2023
Event10th International Seminar on Ocean, Coastal Engineering, Environmental and Natural Disaster Management, ISOCEEN 2022 - Surabaya, Indonesia
Duration: 29 Nov 2022 → …

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