Productivity and Quality in Smart Manufacturing Systems

Economic evaluation of mobile screening station waterless systemoperation of nickel laterite ore

AYustian, EWidodo and M.L. Singgih


The study investigates the economic level of operating the Mobile Screening Station Waterless System (MSSWS) for the first-time application in the nickel laterite mining industry. Three investment alternatives are compared in this study to determine the most economical option, i.e.: maintaining existing Fixed Screening Station/FSS (alternative one), purchasing MSSWS (alternative two), and purchasing new FSS(alternative three). Evaluation is made by performing cost savings analysis, increment cash flow projections, NPV, and IRR calculation. Furthermore, sensitivity analysis of the most economic option will be done as well. The results show that MSSWS gives the highest NPV and IRR. The decreasing of ore hauling distance and water content that are contributed by MSSWS yields significant cost savings in terms of reducing hauled trucks’ investment and its operating cost. In accordance with this analysis, the economics of MSSWS is very sensitive to the changed of ore hauling distance. Therefore, this study has been successfully confirmed that purchasing of MSSWS is the most economical option. In addition to this result, a sensitivity analysis will be undertaken based on the situation that the moving of MSSWS over a certain period once the minimum change in the average ore hauling distance occurs.

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