Mining Contract Lifecycle Management Maturity Assessment: Case Study PT Kaltim Prima Coal

Abstract

PT Kaltim Prima Coal (KPC) is an Indonesian incorporated company that engages in coal mining and sales for both domestic and international customers from various industrial sectors. KPC manages a mining area of 84,938 hectares in Sangatta, Bengalon and Rantau Pulung, East Kalimantan, Indonesia. Supported by more than 4,199 employees and more than 21,000 personnel from contractors and associated companies, KPC's coal production capacity reaches 70 million tonnes per year. KPC manages three main mining contracts, all of which are overseen by the Contract Mining Division (CMD). Mining contractors are responsible for more than half of overburden removal and coal mine production, according to the last ten years history and the long term mine plan beyond 2021. CMD will need mature and good contract and contractor management to ensure that KPC's total production targets are met without major setbacks. Therefore, a measurement of CMD's present maturity level in handling mining contracts and contractors is required. The goal of the research is to conduct a maturity assessment by surveying mining contract lifecycle management staff to determine the current level of maturity and to develop a plan to close the gap between the current and maximum maturity levels using cause and effect analysis. The research revealed 37 viable solutions based on cause and effect analysis, which are recommended for execution as quick wins and major projects after being prioritized based on impact-effort analysis.