Mining Contracts Research Articles

EVALUATION OF MINE SUMP AT PT. BERKAT ANUGERAH SEJAHTERA, PT. ANTANG GUNUNG MERATUS SITE, SOUTH KALIMANTAN

PT. Berkat Anugerah Sejahtera (PT. BAS) is one of the mining contractors operating at PT. Antang Gunung Meratus in South Kalimantan. In its operations, one of the main challenges is the entry of water into the mining pit and managing surface runoff that flows into the mining front. The water entering the pit needs to be properly managed so it can be controlled and concentrated at a single point, referred to as the lowest point. This water management is carried out by constructing a sump or a collection point at the lowest location. The purpose of this study is to understand the dewatering process and measure the runoff volume entering the mine, assess the actual sump capacity, and evaluate the efficiency of the pumping system. Data collection was conducted to compare the planned sump capacity with the actual sump capacity in the field. Rainfall data from the past 10 years were analyzed to determine rainfall intensity and calculate the catchment area of PT. BAS, which spans 121.18 hectares. From this, the runoff volume was calculated to be 25,230.53 m³/day. The study found that the actual sump capacity is 32,215 m³. However, this capacity is likely insufficient to accommodate the total runoff volume entering the mine, suggesting the need for further evaluation of the current sump capacity to improve water management efficiency at the mining site.

To mine or not to mine the deep seabed?

Several studies have noted that the International Seabed Authority (ISA) scores low on public participation. However, none have studied the efforts of non-governmental organizations to exert influence on the ISA’s rulemaking processes. I examine how environmental NGOs and private mining contractors attempt to sway one narrow, but existential, part of the ISA’s draft exploitation regulations between 2014 and 2019: the definition of “serious harm” to the marine environment. Although environmental NGOs appear to have been more successful in influencing that definition, the interests of private contractors may still prevail. Despite the efforts of environmental NGOs, the term “serious harm” remains largely undefined, allowing for more subjectivity and flexibility in interpretation. This challenge is exacerbated when combined with current institutional weaknesses and limited scientific expertise within the ISA. Ongoing negotiations and recent developments may, however, alter this outcome.

Determining The Contract Service Strategy at Coal Terminal Maintenance to Address Contractor’s Inability to Maintain Availability of Fixed Plants in Supporting Shipments Activities at PTKPC a Case Study PTKPC, East Kutai, East Kalimantan, Indonesia

PTKPC, a coal producer, was facing challenges due to a permit transition in December 2021 from Coal Mining Contract of Work (PKP2B) to Special Mining Business License (IUPK). This change increases operational costs with added royalty rates, value-added tax, and profit-sharing obligations. To address this issue, the company decided to streamline contractors in each department in all business units, consolidating various tasks under one umbrella contract. The goal is to provide a big volume of work, potentially lowering rates and reducing PTKPC’s operational costs. However, relying on a single contractor for crucial operations, as seen in the Coal Terminal Maintenance Department (CTMD), introduces risks. The sole contract winner, PTPB, struggles to meet obligations since the contract’s initiation on December 1, 2021. The average contract fulfillment since commencement date is 86% of 100% desired target, disrupting fixed plant Coal Terminal maintenance activities. Physical availability is 93%, below the 94% target, increasing CTMD’s maintenance costs by $0.059 per ton. This research seeks to identify the root causes of PTPB’s inability to fulfill contractual duties and explore alternative solutions. and then from all the existing alternatives, what is the best alternative in responding to this condition. Utilizing primary and secondary data from PTPB’s monthly proforma invoices, contract scope, and CTMD’s monthly reports, the research employs methodologies like problem tree analysis and stakeholder analysis to unravel business complexities and identify root cause of the problems. Qualitative data collection methods, including focused group discussions (FGD) and semi-structured interviews, will be used to determine alternatives. These alternatives will be assessed using the Value-Focused Thinking (VFT) methodology. The Analytic Hierarchy Process (AHP) methodology, assisted by the AHP Super Decision application, will determine the best alternative: the “Implementation of Warnings and Penalties to PTPB”. Implementing this alternative demonstrates PTKPC’s commitment to stakeholders, ensuring contractor accountability without disrupting fixed plant maintenance. Penalty funds will support CTMD’s financial viability, funding additional resources for tasks beyond PTPB’s capacity. This strategy may be applied to other contracts within PTKPC.

The micropolitics of coal in India: understanding resource politics from the ground up through a materiality lens

ABSTRACT Coal in India carries different values and meanings for different actors. Consequently, the politics of this resource is manifested in multiple forms at multiple levels. Whereas the extraction of coal is accomplished by a larger resource politics involving an energy crisis narrative and a need to ensure national resource security, people at the grassroots level – workers, security forces, the displaced, administrators, mine planners, and a wide range of other actors – engage primarily with the micropolitics of coal. In this paper, we draw on new materialities literature in human geography to demonstrate that the everyday micropolitics of coal in the eastern Indian state Jharkhand is more than a subset of national or regional resource politics. In doing so, we analyse four vignettes through a materiality lens based on the land use, weight, pollution, and heat of coal. We use ethnographic methods to untangle everyday and long-term micropolitical trajectories related to coal extraction. We show the fluid and often interchangeable and overlapping roles of actors at the coal face: revolutionary groups striving to become mining contractors, contractors working as politicians to mediate claims, and politicians assuming the role of revolutionaries. Meanwhile coalfield residents make moral claims of indigeneity to gain a share of the resource, or eke out informal, coal-based livelihoods. In this fluid setting, the actors in the micropolitics of coal are influenced by outside forces to varying degrees, and are yet able to reimagine resource politics to their own advantage.

The role of asset management on project performance moderated by environmental dynamism on Indonesia's mining project

In Indonesia, the success of coal extraction largely depends on the role of mining contractors. One of these successes is determined by proper asset management amidst uncertainty in the coal business, such as sustainability and digitalization issues. However, research that identifies the role of asset management in improving the performance of mining projects is still rare. Therefore, this research investigates the impact of Information technology capability, sustainability practices, and asset management on improving the performance of coal mining contractor projects in Indonesia. This research uses quantitative methods, with questionnaire data filled in by 128 project managers of mining contractor projects spread across Indonesia and analyzed by applying structural equation modeling (SEM). The findings indicate that Information technology capability and sustainability practices have a substantial and beneficial effect on improving asset management, which then enhances the performance of mining contractors. Interestingly, there is no direct impact of Information technology capability and sustainability practices on the operational performance of mining projects, so asset management is highly needed. The originality of this study is in the recognition of asset management as a valuable asset for firms that have integrated Information technologies & sustainability practices, as it promotes improved operational performance of projects, and there is still rarely any previous research that examines sustainability practices and asset management, especially mining projects. This research contributes to developing the resource-based view (RBV) theory and also contributes managerially to the practices that mining contractors must carry out when dealing with uncertain business situations.

The influences of sustainability practices and IT capability on project operational performance through supply chain resilience in Indonesia's coal mining contractors

Coal mining is a very important sector in Indonesia, but there has been a decline in the realization of coal production in recent years, so this can reduce state revenues. One of the big challenges in the mining sector is the uncertainty of the mining business, such as information technology and sustainability concerns, that affect the mining industry's supply chain procedure. The purpose of this examination is to identify and determine the performance of supply chain resilience in the face of business uncertainty by determining the function of IT capabilities and sustainability practices in coal mining contractors. This research was conducted using a quantitative research method approach that was carried out using a structured survey instrument. The methodology employed in this study is built on purposive sampling, which is a non-probability selection method. The researchers used the Structural Equation Model (SEM) to examine data that were gathered from a sample of 128 project managers of coal mining contractors in Indonesia. The findings of this study demonstrated that project operational performance was significantly and favorably impacted by supply chain resilience. Additionally, a major and advantageous mediating IT skill in the operational execution of projects is supply chain resilience. Furthermore, it was shown that the use of IT capacity and the implementation of sustainability practices had a noteworthy and favorable influence on enhancing the performance of mining contractor projects. This research also provides information that environmental dynamism does not significantly moderate supply chain resilience on mining project performance. The novelty of this research is the contribution of supply chain resilience as an important resource for organizations that are integrated with IT capabilities to encourage increased project operational performance, especially for coal mining contractors. Additionally, research is still rarely carried out in between sustainability practices and supply chain resilience in the mining sector. It is concluded that coal mining contractor projects need to build supply chain resilience at the site amidst the uncertainty of the coal mining business.

Analisis Produktivitas Alat Angkut dan Muat Pada Pengupasan Overburden di PT. XYZ Desa Batuah, Kutai Kartanegara, Kalimantan Timur

PT. XYZ is a company engaged in coal mining contractors located in East Kalimantan. During mining activities, PT. XYZ uses an open-pit mining system. In February 2023 PT. XYZ had a production target overburden of 193,700 bcm, but in reality, the production target only reached 119,529 bcm.. The productivity of the conveyance and loading equipment is by field conditions to be compared with the company's production achievement targets. The research method used is a quantitative method where this research takes data directly and interviews in the field. The results of the calculation analysis, the production of means of conveyance dumptruckIVECO 350 reached 27.17 Bcm/hour, dump truck ISUZU GIGA FV285 reached 22.16 Bcm/hour, andarticulated dump truck VOLVO A40G achieved 54.57 Bcm/hr. Production of the Sanny SY330H excavator truck reached 178.63 Bcm/hour and the XCMG X370CA excavator reached 154.09 Bcm/hour. The amount of production of the actual means of conveyance that was achieved was 193,700 Bcm/hour. The parameters that affect the amount of production of a tool both hauling and loading, namely circulation time, tub or bucket capacity, amount of filling, fill factor, and material expansion factor. However, based on field observations by the author, there are several additional factors such as the type of weather factor and the condition of the mine road or ramp. In addition to the weather factor, road conditions that are far from the existing standard size will affect the amount of production of a tool.
 Keywords: coal, Overburden, Production, productivity

LEGAL PROTECTION OF OIL AND GAS MINING TO REALIZE SUSTAINABLE DEVELOPMENT

Indonesia, as one of the countries with abundant natural resource potential, such as oil and gas, plays an essential role in the global energy landscape. As a Mining Authority (KP) stakeholder who collaborates with contractors through the oil and gas mining contract system, the government contributes to using oil and gas in various sectors, especially the industrial sector, as part of sustainable development efforts. Sustainable development with an environmental perspective is a conscious and planned effort that incorporates ecological aspects, including natural resources, into the development process to ensure the ability, well-being, and quality of life of current and future generations. The components of sustainable development include social, economic, and environmental aspects. The paradigm of sustainable economic development aims to achieve optimal production, improve the welfare of economic actors, and preserve the environment. In this paper, we will discuss the regulation of laws and technology for the management and utilization of oil and gas. Oil and gas resources in Indonesia require careful management and prioritization of the principles of sustainable development. The role of government through mining contracts and technological advances contributes to the optimization of oil and gas production. By integrating environmental considerations through technology into the development process and encouraging sustainable practices, Indonesia can ensure long-term resource availability, promote economic growth, and safeguard the well-being of current and future generations.

Operational Management For “Mining Contractors Services Company” In Indonesia

Background - The mining contractor services business that Company will operate focuses on the process of mining overburden material and coal mining products which are carried out in an open pit manner, then the coal products will be hauled or transported to the port of the concession owner. This operational process requires operational costs in accordance with the work according to the contract, Operational costs are very influential in getting a positive profit margin, because this business is what the client or concession owner pays is the rate of $/BCM of Overburden and $/Ton of coal produced. The Company only gets service revenue, not the selling price of the coal. This makes the operational cost factor very significant in maintaining this mining service business costs are very influential in getting a positive profit margin, because this business is what the client or concession owner pays is the rate of $/BCM of Overburden and $/Ton of Coal produced. The Company only gets service revenue, not the selling price of the coal. This makes the operational cost factor very significant in maintaining this mining service business.

The Effect of Market Orientation, HR Competence, Knowledge Management on Competitive Advantage, Mediated by Company Performance

Purpose: The condition of competition between coal mining contractors causes the company leaders to manage the company and try as optimally as possible to get a competitive advantage compared to other similar companies. This study discusses the relationship of Competitive Advantage built from Market Orientation variables, HR Competence, and Knowledge Management to the performance of coal mining contractors in a comprehensive manner. It explains the transformation process of Company Performance to Competitive Advantage. Research implications: A research population is a number of 37 Coal mining contractors in Indonesia, including employees who are directly involved in strategic decision making in the company, namely the Project Head, Head Office Manager, and Director as respondents. Based on these data, Smart PLS 4 software processes structural parameter estimates according to the relational model described in the study's conceptual framework. Results and conclusion: The results showed that Market Orientation, Knowledge Management and Company Performance have a significant effect on Competitive Advantage, Quality of Human Resources, Market Orientation and Knowledge Management also has a direct effect on Company Performance, but Quality of Human Resources has no significant effect on Competitive Advantage. While the Company's Performance is a Full Mediation of the Quality of Human Resources on Competitive Advantage. Originality/value: This research contributes to the development of RBV theory, especially the study of company performance on competitive advantage in a resource-based view perspective through market orientation, HR competence, knowledge management, and the practice of applying SECI knowledge to this research object, which is proven to be able to increase competitive advantage. Theoretical reference: The originality of the theoretical model in this study contributes to the development of the RBV theory, the implementation of the concept of Competitive Advantage regarding the integration of internal key resources between intangible and capability aspects of coal mining contractors.

Contract for the purchase and sale: legal aspects

The article is devoted to the particularities of the contract for the purchase and sale. The authors draw attention to a number of aspects of legal regulation that are insufficiently researched and definitely debatable, which are primarily related to the definition of the range of essential conditions of the contract for the purchase and sale. The authors also made an attempt to establish separate problems of legal regulation of the contract for the purchase and sale. The article analyzes the signs of the contract for the purchase and sale, reveals the content of this type of contracts, pays attention to the legal nature of the contract for the purchase and sale, examines the complex and multifaceted issues related to the subject of the contract for the purchase and sale in modern conditions of the development of civil law. The subject of the contract for the purchase and sale is recognized by law as an essential condition for all types of contracts. The subject matter can be any property that the seller has at the time of the conclusion of the contract, property rights and “future things” (ie, property that will be created by the seller in the future). Attention is drawn to the fact that the contract for the purchase and sale is consensual, bilateral (mutual), retaliatory by its legal characteristics. The authors draw attention to the types of the contract for the purchase and sale. Certain types of the contract for the purchase and sale include retail sales contract, goods supply contract, goods supply contract for state needs, contract for contracting agricultural products, energy supply contract, real estate sale contract, mine contract. The article also defines the peculiarity of the contract for the purchase and sale, which is that the specified contract is the main regulator of relations between producers and consumers, legal relations in the field of distribution and redistribution of material goods, ensuring the free and optimal development of all forms of ownership, entrepreneurship and trade. The norms of the Civil Code of Ukraine, which regulate the investigated issues, were analyzed.

Chromite Mining Cooperatives, Tribute Mining Contracts, and Rural Livelihoods in Zimbabwe, 1985–2021

Transnational corporations dominated chromite mining in Zimbabwe for the entire colonial period. However, the postcolonial period witnessed a gradual but significant shift toward small-scale and artisanal mining as liberalisation led to the informalisation of the mining sector. This chapter examines the impulses in the transformation of the chromite mining sector in the postcolonial period and the rise and development of chromite mining cooperatives since the 1980s. In particular, it analyses the impact of tribute mining arrangements on the emergence and growth of chromite mining cooperatives in Zimbabwe. The chapter argues that while tribute mining arrangements engendered the development and growth of mining cooperatives, the contracts also created an asymmetrical and exploitative relationship between cooperatives and large-scale mining companies that owned mining claims that they sublet to cooperatives. The chapter also considers the effects of Zimbabwe’s redistributive land reform programme and Chinese participation in artisanal and small-scale mining on mining cooperatives. Overall, the chapter analyses the effects of the liberalisation of the mining sector in Zimbabwe and the centrality of mining cooperatives in the interface between large- and small-scale chromite mining.

Thresholds in deep-seabed mining: A primer for their development

The establishment of thresholds is integral to environmental management. This paper introduces the use of thresholds in the context of deep-seabed mining, a nascent industry for which an exploitation regime of regulations, standards and guidelines is still in the process of being developed, and for which the roles and values of thresholds have yet to be finalised. There are several options for integrating thresholds into the International Seabed Authority’s regulatory regime, from being stipulated in regulations to being part of a mining contract, each option having its own advantages and disadvantages. Here we explore the range of ways that thresholds can be derived, set out the challenges in translating ecological and management data into thresholds, highlight factors for acceptance and operationalisation of thresholds in deep-seabed mining, and explain the necessity of refining thresholds as knowledge on impacts to features improves. Some comparable marine industries already use thresholds and these could potentially be used as starting points for the development of thresholds for deep-seabed mining. In order to be acceptable to the wide range of deep-seabed mining stakeholders, thresholds need to strike a balance among levels of harm acceptable by society, levels of environmental precaution justifiable by governments, scientific robustness, and operational practicality.

Analisa Pengaruh Produktifitas Terhadap Biaya Operasional Pada Proyek Penggalian Ex Disposal NW01B Guna Pengambilan Batubara di PT. Pamapersada Nusantara Distrik KMIA

PT Pamapersada Nusantara is one of the companies in Indonesia that is engaged in coal mining contractors. One of the main activity by the company is the overburden removal and coal mining in accordance with the production targets agreed with the customer. Based on the annual production planning 2022, to achieve the customer's production target, there is one work area in the KAKAO Pit – R5B west side which is the disposal of NW01B above the mineout Pit NW01B. The Disposal will be cutback (removing the overburden) for the purpose of coal mineout. Based on survey data, the total volume of disposal cutback is 3.9 Mbcm. Technical analysis states that there is a decrease in productivity by 10%, a decrease in productivity affects a decrease in production capacity which has implications for an increase in operational costs about IDR 7.12 M. To accommodate the increase in operational costs, to maintain the company's profitability, an analysis of the proposed price adjustment of the overburden excavation about USD 0.1259/bcm.

India’s Mica Mining: Implications for the 2030 United Nations Agenda for Sustainable Development

The present study sought to explore the implications of the mining of mica, a natural mineral commodity, in the Indian mining belt in regard to the 2030 United Nations Sustainable Development Goals. It analyzes the actions of the Indian mica mining industry through local case study reviews and explores the significance of these actions by analyzing them through the lens of the economic, social, and environmental sustainability theory of Andrew Basiago and the 17 UN Sustainable Development Goals (SDGs). Analysis of specific areas such as compensation of labor for miners, child labor, mica mining contractors, gender constructs in mines, and deforestation/waste production, among others, revealed that the actions of the mica mining industry in India are indeed unsustainable in various social contexts, violating various SDGs and forsaking local human capital and habitats. This essay offers a connection between the actions of the present industry in India and the unsustainable developments of the surrounding communities and suggests a transition to synthetic mica and responsible mica mining initiatives in place of current systems.

Corruption Culture on Managing Natural Resources: The Case Political Crime “Papa asking Stock of PT. Freeport Indonesia”

This research is the result criminology study on corruption culture of abusing the office and power involved the political elite and state officials in case of 'papa asking the stock’ related to the extension of mining contract of PT. Freeport Indonesia. This research is based on the concept of corruption culture, criminological theories and views of some economic and political observers. The research findings revealed the existence of corruption culture on political crime agreement scenario in case of “Papa Asking The Stock” that are provoking the extension of concentrates export license, diversion of issues and political lobbying to suppress stock divestment and smelter development. The nature of social structures and socio-cultural situations, responses to social situations and relationships with the perpetrators affecting individuals and groups crime behavior. A previous social culture behavior encourages learning in behavior at the society afterwards. State creates the crime laws to protect and maintain its power. The perpetrators rationalize the criminal act on securing and save their interests. Rationalization of corruption culture on the case of ‘papa asking the stocks’ bring forth the law de-penalization mitigating and generating a verdict not guilty to the perpetrators. Corruption culture identical with crime organized state or state crimes against democracy

Allocation of Climate-Related Risks in Investor–State Mining Contracts

Allocation of Climate-Related Risks in Investor–State Mining Contracts

Environment, ecology, and potential effectiveness of an area protected from deep-sea mining (Clarion Clipperton Zone, abyssal Pacific)

To protect the range of habitats, species, and ecosystem functions in the Clarion Clipperton Zone (CCZ), a region of interest for deep-sea polymetallic nodule mining in the Pacific, nine Areas of Particular Environmental Interest (APEIs) have been designated by the International Seabed Authority (ISA). The APEIs are remote, rarely visited and poorly understood. Here we present and synthesise all available observations made at APEI-6, the most north eastern APEI in the network, and assess its representativity of mining contract areas in the eastern CCZ. The two studied regions of APEI-6 have a variable morphology, typical of the CCZ, with hills, plains and occasional seamounts. The seafloor is predominantly covered by fine-grained sediments, and includes small but abundant polymetallic nodules, as well as exposed bedrock. The oceanographic parameters investigated appear broadly similar across the region although some differences in deep-water mass separation were evident between APEI-6 and some contract areas. Sediment biogeochemistry is broadly similar across the area in the parameters investigated, except for oxygen penetration depth, which reached >2 m at the study sites within APEI-6, deeper than that found at UK1 and GSR contract areas. The ecology of study sites in APEI-6 differs from that reported from UK1 and TOML-D contract areas, with differences in community composition of microbes, macrofauna, xenophyophores and metazoan megafauna. Some species were shared between areas although connectivity appears limited. We show that, from the available information, APEI-6 is partially representative of the exploration areas to the south yet is distinctly different in several key characteristics. As a result, additional APEIs may be warranted and caution may need to be taken in relying on the APEI network alone for conservation, with other management activities required to help mitigate the impacts of mining in the CCZ.

Pengembangan Organisasi Menggunakan Open System Model

Pt. PN is a company engaged in coal mining contractors. One of the vision &mission of PT. PN is becoming a global top 8 company that has excellence in all fields. Business expansion is one of the company's agenda to become an excellent mining company in Indonesia. This research was conducted to identify and map problems in PT PN by using open system model diagnostic method and data collection with qualitative method. The results showed that there are problems in the HRM system, not optimal HRM system because the development program has not been optimal, so it has an impact on employee competence, competency problems then impact on employee readiness on the business expansion agenda. Mentoring program intervention at the deputy project manager level aims to assist the company in carrying out the development process in the company. The intervention of this mentoring program also supports the company's mission in improving the quality of human resources and preparing competent cadres for organizational sustainability.

PURCHASE AGREEMENT IN THE CONDITIONS OF CIVIL LEGISLATION REFORM

The article draws attention to the fact that the contracts of sale have acquired their special significance in the context of market relations. Among the most common: retail sales contract, supply contracts, mine contract, etc. It is due to the contracts of sale that the dynamics of the transfer of property (goods) from one participant in civil relations to another is obvious. Purchase and sale obligations are the most widely used in civil turnover. It is noted that according to its legal characteristics, the contract of sale is consensual, bilateral (mutual), repayable. Its purpose is the paid alienation of property (goods) from one party and its transfer to the other party. It is concluded that at the present stage of updating the civil legislation is characterized by the search for models of legal regulation of contractual obligations, including sales. It is considered useful to adopt common European norms and principles in the field of sales, which will provide an opportunity to create a European social model that will be positioned as an ideal of justice, in particular to ensure consumer protection and small business in general.