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Purpose: The main purpose of this article is to evaluate the feasibility of the re-mining project of the closure tin mine area which is then processed into silica products according to export specifications, which is simultaneous with the process of environmental management of the closure mining area.
Theoretical framework: Determining the capital budgeting of the project, financial indicators: Payback Period, NPV, Profitable Index, Internal Rate Return, and Return of Investment, and sensitivity Design/methodology/approach: A quantitative approach will be used to analyze the capital budgeting calculations to build a green industry through re-mining and silica refinery activities in good environmental management, not only land rehabilitation and vegetation restoration activities but post-mining activities, however synergized through creating an innovative program.
Findings: Based on the results of investment calculations, the development of this green industry was declared technically and financially feasible through the management of re-mining, production of silica, and structuring the ex-mining area into a productive green area with a budget commitment that was mutually agreed upon before this activity was carried out.
Research, Practical & Social implications: The post-mining tin location in Belitung Province – Indonesia, still has the potential for non-metallic mineral content, which can be re-mined and refined for silica commodities. The ex-mining area was found to be still an open area and even barren, even though PT Timah Tbk has carried out environmental restoration activities.
Originality/value: In the study of capital budgeting for re-mining and silica refineries, the sensitivity of the analysis to changes in fuel costs and changes in selling prices has also been calculated.
