Spatial Modeling for Location Optimization of The Nickel Smelter Project to Improve Estimated Accuracy of Investment And Operational Maintenance Costs.

EasyChair Preprint 5995

Abstract

Investments in the mining industry have recently increased with substantial funding for every project such as the construction of a smelter plant or a refinery in the downstream nickel mining process business. The accuracy of cost estimation is very important in business and project planning, especially in investment in the mining industry. Projects with a large investment scale such as smelter construction or refineries are prone to common problems such as a decrease in investment value due to the low return on investment that is less promising. This can be realized with knowledge of the project location which forms the basis for cost estimation. The location factor is usually used to adjust the estimated cost estimates based on the project location, where the cost estimate can be improved by using several methods, namely spatial models for location optimization. Location is very influential in every construction work, especially the preparation and planning stages in the entire business process such as the nickel mining industry. One of the features of this approach is the spatial model for location optimization and project work indicators by considering the business location of the nickel mining industry with smelter or refining projects. The main objective of this research is to improve the accuracy of the estimated investment and maintenance costs by using a spatial model that can optimize the project location factors. The spatial method in selecting project locations can be a practical and effective solution to the problem of increasing operational and maintenance investment in the mining sector downstream program with a focus on IRR analysis and also an alternative estimate model that can be generated from the results of the spatial model.

Keyphrases: Cost estimates, Investment, Location, Operations and Maintenance, spatial model

@booklet{EasyChair:5995,
  author    = {Rinaldy Panggabean and Mohammed Ali Berawi},
  title     = {Spatial Modeling for Location Optimization of The Nickel Smelter Project to Improve Estimated Accuracy of Investment And Operational Maintenance Costs.},
  howpublished = {EasyChair Preprint 5995},
  year      = {EasyChair, 2021}}