Fuel Efficiency Improvement Initiatives for Reducing Mining Operation Costs Using Root Cause Analysis and SWOT Method A Case Study Pt. Falcon, 2nd BLOCK, East Kutai, East Kalimantan, Indonesia

PT. FALCON is the one of Owner coal mining company which is doing of monitoring and controlling mining activity process by Contractors from the land clearing until coal hauling to the crusher plant. The contractor already starting mining activity in the 2^nd BLOCK since January 2022 until currently. Based on historically data, fuel consumption during Jun 2022 – Jun 2023 still increasing.

Fuel is the main component of the operational in the coal mining industry. Sustainability of the operational is very influenced by the fuel inventory and the fuel price. Because fuel is the main component cost in mining activity (>50% from total mining cost), increasing of the fuel price will be very influencing to operational sustainability in the future, moreover if increasing of the fuel price not accompanied by coal price.

This project aims to find the root cause of the problem using the fishbone method to further determine the right way to make an action plan from solving the root of the problem. In addition, the analysis is also carried out using SWOT analysis to identify the Strengths, Weakness, Opportunities and Threats of the company, so that appropriate recommendations can be submitted to company management so that the company can develop and survive in the future.