The Indonesian Province of Papua is one of the most desolate area’s in the world and the indigenous tribes still live their lives as if it was centuries ago. There is however a trend among the indigenous people to try to benifit from our modern society while keeping their traditions.
Hendrik Wieland has gained the trust of the indigenous people in the Peniai regency while preaching the Holy word. For years his ministry supported the tribes and they granted him 10,000 ha of land to develop and mine. The Papua Gold Union will perform this task in close cooperation with DHC.
As part of the agreement with the indigenous people, DHC will invest heavily in Humanitarian projects;
- Proper housing and sanitation
- Clean drinking water
- Renewable energy, hydro-electric plant
- Health care
- Education and university scholarships
- Micro-credits for business development
- Social services
- Infrastructure (including airport)
- Cement Factory
For the indigenous Papuans
Health Care is a rare good. They highly
depend on their traditional medicine and will occasionally be able to get
health care at high cost at the nearest government health care posts. It is not
an exception for a very sick patient to travel
for several days to get to the nearest health care provider.
There are no exact demographical
data but the Bupati of Papua told us that the average life expectancy of the
indigenous tribes is between 35 and
40 years. Roughly
half of what
is found in developed
countries. The main cause of death are simple infections, child birth complications
and trauma. With an adequate health care system those can be treated with a
high success rate.
The Bogobaida region has no health
care center, the nearest is 300 km away and no roads are available for travel
for the most part of the journey.
It must be clear from the above that health care
development in the region has a high priority with DHC.
To maintain sustainable health care, all of the following
factors must be provided for;
- Qualified staff
- Patient transport
Many developers make the mistake
that just putting a building there with equipment will provide sufficient
health care but there are many examples to be found that support our theory
that such a plan would not work in the long run.
During the last decade DHC has performed an
extensive study on the health care situation in Indonesia and developed this
integral plan to provide high quality care to a large part of the population.
We will give a summary of the health care plan in this mining business plan.
Phase 1 : (fully taken from initial investment)
Set up a small hospital and treatment center near the mining site to provide health care to the mine workers and the 72 tribes in the region. This will be at first a center with Dutch Tropic Physicians sent to Papua by a Christian organization in the Netherlands. Funds will be provided by the mining company.
Phase 2 :
Set up a
multifunctional academic teaching hospital in Jakarta (400+ bed hospital) in
cooperation with the University in Jakarta and
international health care organizations (Mayo clinic, Cleveland Clinics and Dubai Health Care
City). Extensive training of staff will be in The USA and the Netherlands at
first and later with the help of foreign teachers on site.
This academic hospital will provide the possibility to train qualified staff members (preferably originating from the indigenous tribes of Papua) and physicians for the medical
post and hospital
organization in Papua. It will also generate the necessary financial
support to maintain the medical facilities in Papua after the funding from the mining company has stopped. A long term
continuation of the health care facilities is the main goal of the total project.
The Jakarta academic hospital has
the ability to provide high care that is not readily available
in Indonesia. There is an economic loss of over 10 billion USD going abroad
every year due to the lack of adequate high care in Indonesia. DHC has
developed a business plan to provide an hospital organization that will be
profitable in the niche of health care. Land and commitment of the university
has been obtained. Funds generated by this hospital will guarantee the long term continuation of health care services in Papua. (details to be found in a separate
hospital business plan (on request))
Phase 3 :
To increase the quality of health care in a
broader region in Papua several other primary
health care posts
will be constructed as well as a regional hospital
(100 bed hospital).The staff, training, supervision will be provided from the
Jakarta hospital, this will guarantee the quality and long term business of the
By setting up the hospital
organization in three phases we will generate a long term medical program for
the 300.000 indigenous Papuans. The cooperation with the Jakarta hospital will
ensure long term financial support, training of staff and quality. A total of 1,5 billion USD is estimated to go into
the full scale health care program.
There are no roads that lead from
the nearest village to the mining site and planned airport. To build a road in the area is a
challenging undertaking. Not only the dense tropical forest but also the
mountainous terrain will produce engineering challenges. It is however vital
for the development of the area to build a good infrastructure and at least 100
km of roads must be build.
labor force is cheap in the area and rock material from the mining operation will be used as bedding
in the cut and fill process only the
crossing of rivers will mount to higher costs for construction. The planning of the roads
will be to avoid as much as possible the rainy
season streams of the rivers as to facilitate the accessibility of the road
system all year round.
Simple gravel 2 lane roads slightly
elevated with ditches and drainage will be built. For a bridge the cost will be $ 15.000.000,- ( 3 are anticipated) for the road $
250.000,- per km.
Initially the road between the mining compound and the airstrip will be constructed at a cost of $ 10.000.000,-
All the tribal villages will be
connected to a state of the art communication system. In all villages internet
will be available. It is not only
needed for the mining operation but also to set up school classes in the villages
(the time to travel to school each day is too long). A radio connection system
will be set up as well as 4G communication systems with satellite internet connection.
For smooth operations and
accurate order management reliable communication and an integrated computer
network is essential. The remote nervous center in The Netherlands must have real-time data on all operating processes and direct
information on calamities and spare parts needed. Also
the mining operation itself will be in need of a radio and 4G network for their communication.
Nokia currently offers a wide
variety of network and 4G solutions built to be mobile, deployable on drones
and low energy/light weight.
The mobile 4G devices have a 75 km
range , use 100W, and can accommodate 400 users. They cost around $ 10.000,-.
The larger connection stations cost $ 80.000,-.
A budget of $ 500.000,- is needed
to set up a state of the art communication network with internet access.
For all construction in the region
large amounts of cement are needed. Currently there is no cement factory in the
region capable of delivering.
- Crushing and Preblending
limestone, clay, iron ore,
coal,etc. Limestone is the largest amount of raw materials in cement
production. After mining, the size of limestone is large with high hardness, so
the limestone crushing plays a more important role in cement plant.
In the cement production line,
producing 1 ton of Cement need grind at least 3 tons of materials (including
raw materials, fuel, clinker, mixed materials,gypsum).Grinding operation
consumes about 60% of total power in cement plants, raw material grinding more
than 30%, while coal mill used in cement plant consumes 3%, cement grinding
about 40%. So choosing the right grinding mills for the cement plant is very
important; cement vertical mill or cement vertical roller mill in the
production of cement specific surface area up to 3800 cm²/ g with stable and
Adopting the technology of homogenization could
rationally get the best
homo-effect and afford an eligible production to the demand.
Preheater and calciner are key equipment for precalcing production technique.
Burning cement clinker in a rotary kiln
The calcination of rotary kiln is a
key step of cement production, which makes directly influence on the quality of
Grinding cement clinker (and
gelling agent, performance tuning materials,etc) is used to grind the cement to the appropriate size (in fineness, specific surface area, etc.),
optimize cement grain
grading, increase the hydration area and accelerate the hydration rate
to meet the requirements of cement paste setting and hardening.
The biggest challenge in cement
manufacturing is to keep the whole process environmentally friendly. As we
commit to being a project that is environmentally neutral
solutions for the process will be found or compensated elsewhere.
The cost for the plant
is roughly $60,- per ton production capacity. A 3MT production facility will
cost around $ 200.000.000,- to build.
PPC has set up a schooling project
in the region to reduce the level of illiteracy. DHC has set the goal to provide
full scale education
to children and a high school diploma for those that can. Furthermore
there will be scholarships for those capable to go to university. Hoping they
will return to aid in the further development of their region and province. For the elderly a basic schooling program will be given.
Distance and the lack of a good
infrastructure makes it difficult for
all children to attend school. The communication network that has been set up
for the mining operation will also be used to provide schooling from the
central school location. With the internet connection and computers in the
classroom students will be able to follow the central education in their remote
villages. The same equipment can also be used for the older population.
An Highschool will be built
centrally in the main village and students will be interns there. Specialized
teachers will be hired by the school.
As part of the plan is also to give
micro investment credits to farmers and small enterprises the central school
will also provide supportive education plans to assist with the new enterprises
and how to farm best.
Affordable housing will be provided to several groups.
they will live in a compound near
the mining site. The compound will move every year to a new location along the
progress of the project.
Their housing must be comfortable
and fully equipped with decent air-conditioning. Maybe the local workforce will
not use the AC but foreigners certainly will. Adequate sanitation and washing
facilities will be included in the compound. The kitchen, dining hall,
entertainment center, library and shops will be set into the perimeter of the
A fully equipped
container unit will cost $ 25.000,- For the compound
staff and all their functions
4oo units are needed.
The Nomowodidei Community, Ekari
and Moni Clan will be relocated to their new villages and locations for their
farms and businesses. This will be a major operation and one of the basic
conditions on which the gold mine concession was granted to Wieland and
Roughly 30.000 Papuans will be housed in 6.000 newly constructed housing units. The
architectural and urban planning firm of Hendrik Wieland has already made plans
for this project and is ready to execute it.
- Business Development
One more condition for obtaining the
mining concession was
that the project should
create durable business
opportunities to make them independent from the mining
operation improving their quality of life on the long term.
will be provided to start-up various businesses, Repayment of the investment
loans will be through delivery of produced goods (farmers etc.) or services.
Initially the first
tranche of micro-credits will be given
to businesses that directly
will supply essential products or services
to the mining company.
In cooperation with
PPC churches and
community houses will
be built in the main urban
development regions. Spiritual guidance will be provided to the indigenous people and the
mining staff. Furthermore the cultural aspects of the
indigenous society will
be respected and preserved.
Cost $ 300.000.000,-
As Papua still remains one of the
least polluted regions of the world we will respect that at all cost. As there
is hardly no energy infrastructure it will be set up from scratch.This means that the goal
is to provide 100 % renewable energy in the region with support of back-up
fossil fuel generators in crucial functions like security, crucial part of
mining operation and the hospital.
Solar power: (10% taken from initial investment)
- Each building that will be constructed will have full solar power
- After completion of the hydro-electric plant, energy will be sold elsewhere
its roof. $
1.000,- per square meter. Energy
production per square meter of solar panel = 0,4 kWh/day. For the
production of 2MWh of energy per day a total
120.000 square meters of solar
panels will be needed.
There is no existing
power grid in this region of Papua.
This means that we cannot deliver
energy to a grid. The incorporation of storage
capacity becomes therefore vital. A total of 20 storage units of energy with a
capacity of 200 kWh and an inversion capacity of 250kW are needed to store the
generated energy for night time and peak operations. At this moment Tesla provides solutions for energy
storage that cost $ 200.000,- per unit.
Besides the larger storage, each
house/building with solar energy will be equipped with a smaller storage device
costing $12.000,-. We expect 500 units to be placed over time.
A total new electricity
infrastructure net will be built at each location. At this time it is hard to
predict the total costs but they are estimated to be equal to the investment in
solar panels as this is the general
rule of thumb elsewhere.
The tropics are an unfriendly
environment due to the climate.
Therefore it is anticipated that maintenance costs will be higher than elsewhere. We anticipate it to be 10% of the initial
For the energy production, using
solar panels is the first choice. It can be implemented within months and it
can provide local energy solutions. For the long term it will be insufficient.
To maintain a more permanent solution for
renewable energy a 9 megawatt hydroelectrical plant
can be built in the Bogobaida region.
This will serve two purposes.
energy on a permanent basis 365 days a year.
the opportunity to redirect the river containing the gold to its old river bed.
This will make the harvesting of the soil containing the gold easier,
especially when rich veins are struck.
General cost information can be
found in this solid Norwegian report (http://publikasjoner.nve.no/veileder/2012/veileder2012_03.pdf) (http://www.authorstream.com/Presentation/kaushik7-1562231-ppt-
In the mining region there is a
small lake up in the mountains out of which the gold containing river
originates. By rediverting the river (building a dam) and by increasing the
capacity of the lake by building another dam we can establish a reservoir to
maintain a constant flow of water in the 9 needed water
tubes that will provide
the 9 turbines with the needed water energy.To
transport the energy to
the various villages
and plant a complete power grid will be built with transport lines and
transformers. This will cost $ 200.000,- on
average per km of line. We estimate
that 1.000 km will be needed for full operation within the region.
Furthermore a reservation must be
made to expand the power grid. The plant will be constructed in a manner that
it potentially can house 20 turbines.
An airport will be constructed near
the mining site. It will be a secure location that is guarded
well. Within the compound essential functions of the mining project
will be located;
Smelter and gold vault.
- The warehouse.
- The armory.
Almost all products and materials
needed for the project will be flown into the airport. This will make it
essential for the whole operation. Freight size airplanes like the Hercules
must be able to land safely at the airport.
Minimum TOR-15 = 1.433 m and minimum
LR-15 = 777 m.
Primarily it will be a daytime
VFR airport with traffic management control. A simple ILS landing
system will be included for bad weather landing. A full-scale GNSS will only be
implemented in a later stage of the project when needed due to its costs.
The Bogobaida area lies deep within
the jungle of Papua. There
are no roads or railroads. At the moment there are only small landing
strips at some places. In order to facilitate this huge project we must take
into consideration that almost all materials and food needed for the project
will have to arrive on time by ship or air in order to facilitate smooth
operation of the various projects. Due
to uncertain delivery windows it is clear that local warehousing of
essential products is mandatory.
The main warehousing facility will
be located at the airport compound.
The central coordination of the
logistics will be in the Netherlands where for every product the full chain from order to delivery
will be monitored. The system
will be computer supported and every item will
have a tracking number . Every item taken from the supply will
be managed by the automated system. It will take into account the average use
and the order time of a product to be able to maintain sufficient supply in the
One of the first departments to
start will be this one and its first year of operation will be funded out of
the initial investment. The full time staff will be 10 members, during the
first year setup 10 additional members will join the staff.
management software $ 50.000,-
(annual) (Gatekeeper software)
Setup staff $ 500.000,-
Office $ 250.000,-
Expenses $ 500.000,-