Cash Flow Analysis of Nickel Mining Activities

Indonesia ranks second in the world for nickel resources. The location of laterite resources in Indonesia is in the Eastern Region of Indonesia (KTI), especially in Sulawesi and small islands in the North Maluku and Southeast Sulawesi islands so that many mining companies are engaged in the nickel mining industry. Nickel mining activities require large capital and investment and have high risks. This study aims to analyze the economics of one pit in a nickel mining company in Sulawesi in terms of investment feasibility plan using the discounted cash flow method. The resulting investment criteria are net present value (NPV) of $114,448,962.84, internal rate of return (IRR) of 153%, and payback period (PBP) of 1 year and 3 months which indicates that mining activities are feasible.