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.
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