IMA-Daily Update Page 1

TABLE OF CONTENTS

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Bukit Asam (PTBA) AGMS Today, What Is the Fate of Directors and Dividend Distribution? Bukit Asam (PTBA) RUPST Hari Ini, Bagaimana Nasib Direksi dan Pembagian Dividen? ESDM Ministry: Arutmin and Kaltim Prima Coal, which have recently proposed extending the PKP2B Kementerian ESDM: Arutmin dan Kaltim Prima Coal yang baru ajukan perpanjang PKP2B United Tractors Ready to Inject Capital into Acset United Tractors Siap Suntik Modal ke Acset Performance of J Resources (PSAB) in 2020 Projected to Drop 25% Due to the Covid-19 Pandemic Kinerja J Resources (PSAB) di 2020 diproyeksi turun 25% akibat pandemi Covid-19 The Price of Reference Coal (HBA) Slides, PTBA Trims the DMO Portion Harga Batu Bara Acuan (HBA) Melorot, PTBA Pangkas Porsi DMO Bumi Resources (BUMI) believes Arutmin and KPC will get a contract extension Bumi Resources (BUMI) yakin Arutmin dan KPC bakal dapat perpanjangan kontrak Kideco PKP2B ends in 2023, Indika Energy (INDY) is waiting for the Minerba Law derivative regulation PKP2B Kideco berakhir di 2023, Indika Energy (INDY) tunggu aturan turunan UU Minerba PTBA Gasification Project Threatened to Retreat Proyek Gasifikasi PTBA Terancam Mundur Ouch! Coal Prices Fall Again, Stay Away from the Level of US$60/ton Duh! Harga Batu Bara Jatuh Lagi, Jauhi Level US$ 60/ton Signs of the Chinese Economy Gradually Recovering, Copper Prices Ready to Climb

Bisnis Kontan Investor Daily Kontan Bisnis Kontan Kontan Bisnis CNBC Indonesia Bisnis

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Sinyal Ekonomi China Berangsur Pulih, Harga Tembaga Siap Merangkak Naik Outotec announces big process equipment order for Gold Fields’ Salares Norte project in Chile China to re-invest in its mining industry — report Newcrest, Greatland inch closer to Havieron mining lease China's coal mining hub Shanxi to shut small mines by end-2020 Saudi mining investment law to deliver $64bn GDP boost Gold imports by India tumble for a second month on lockdown US coal output forecast at 530 mil st in 2020, consumption at 394 million st: EIA

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Bukit Asam (PTBA) AGMS Today, What Is the Fate of Directors and Dividend Distribution?

M. Nurhadi Pratomo

THE STATE-owned coal issuer, PT Bukit Asam Tbk., will hold an annual general meeting of shareholders for the fiscal year 2019 on Wednesday (06/10/2020).

Bukit Asam has seven agenda items at the annual general meeting of shareholders (AGMS), Wednesday (06/10/2020). Two topics that became the main focus were the determination of the use of net income, including the distribution of dividends for the 2019 fiscal year and changes in the composition of the company's management.

As an illustration, the issuer coded PTBA shares reported profit for the year attributable to the owner of the parent entity worth Rp4.05 trillion as of December 31, 2019. The realization was down 19.24 percent compared with Rp5.02 trillion in the 2018 period.

PTBA is known as a royal issuer in distributing dividends. The coal producer is also included in the IDX High Dividend 20 (IDXHIDIV20) constituent.

IDXHIDIV20 consists of 20 shares that have distributed cash dividends for the past 3 years. Not only that, the occupants of the index are also known to have high dividend yields.

PTBA distributed dividends worth Rp3.76 trillion or 75 percent of the profit for the 2018 fiscal year. Thus, the value received by shareholders was Rp339.63 per share.

The previous year, PTBA also distributed dividends at a 75 percent dividend payout ratio (DPR). The company decided to...

Bukit Asam (PTBA) RUPST Hari Ini, Bagaimana Nasib Direksi

dan Pembagian Dividen? M. Nurhadi Pratomo

EMITEN batu bara milik negara, PT Bukit Asam Tbk., akan melangsungkan rapat umum pemegang saham tahunan untuk tahun buku 2019 pada, Rabu (10/6/2020).

Bukit Asam memiliki tujuh mata acara dalam rapat umum pemegang saham tahunan (RUPST), Rabu (10/6/2020). Dua topik yang menjadi sorotan utama yakni penetapan penggunaan laba bersih termasuk pem-bagian dividen tahun buku 2019 serta perubahan susunan pengurus perseroan.

Sebagai gambaran, emiten berkode saham PTBA itu melaporkan laba tahun berjalan yang dapat diatribusikan kepada pemilik entitas induk senilai Rp4,05 triliun per 31 Desember 2019. Realisasi itu turun 19,24 persen dibandingkan dengan Rp5,02 triliun periode 2018.

PTBA dikenal sebagai emiten yang royal dalam membagikan dividen. Produsen batu bara itu juga masuk ke dalam konstituen IDX High Dividend 20 (IDXHIDIV20).

IDXHIDIV20 beranggotakan 20 saham yang membagikan dividen tunai selama 3 tahun terakhir. Tidak hanya itu, penghuni indeks itu juga dikenal memiliki dividend yield yang tinggi.

PTBA membagikan dividen senilai Rp3,76 triliun atau 75 persen dari laba tahun buku 2018. Dengan demikian, nilai yang diterima oleh pemegang saham Rp339,63 per lembar.

Tahun sebelumnya, PTBA juga membagikan dividen dengan rasio pembayaran atau dividend payout ratio (DPR) 75 persen. Perseroan memutuskan...

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The company decided to distribute cash dividends totaling Rp3.35 tril lion or Rp318.52 per share for the 2017 financial year performance.

From the agenda of changing the composi-tion of the company's management, the concoction of Minister of State-Owned Enterprises (BUMN) Erick Thohir for PTBA is being awaited. The reason, he has overhauled the board of directors of two other Mining SOE Holding members, PT Aneka Tambang Tbk. (ANTM) and PT Timah Tbk. (TINS).

For PTBA, Erick has not changed the composition of the company's management on a large scale. The change only happened because of the appointment of Suryo Eko Hadianto who previously served as Director of Operations and Production of Bukit Asam to become Director of Business Transfor-mation at PT Indonesia Asahan Aluminum (Persero).

Meanwhile, the position left by Suryo was filled by Director of Commerce at Bukit Asam Adib Ubaidillah as Acting Director of Operations and Production. Thus, the majority of PTBA management are currently the people who were appointed during the leadership of the Minister of SOEs Rini Soemarno in the 2014-2019 period.

Previously, SOE observer from the University of Indonesia Toto Pranoto said the directors of the three mining BUMNs had experienced a change earlier this year. As such, it needs to be carefully considered if there are further changes in the coming AGMS.

"The newly formed Directors need time in fine tuning the business and may need to be given time to show performance. For example, after running for two semesters and the performance was not as expected, maybe a replacement option could be made," he explained to Bisnis, Tuesday (06/09/2020).

Perseroan memutuskan membagikan dividen tunai dengan total Rp3,35 triliun atau Rp318,52 per lembar saham untuk kinerja tahun buku 2017.

Dari agenda perubahan susunan pengurus perseroan, ramuan Menteri Badan Usaha Milik Negara (BUMN) Erick Thohir untuk PTBA tengah dinantikan. Pasalnya, dia telah merombak jajaran direksi dua anggota Holding BUMN Pertambangan lainnya, PT Aneka Tambang Tbk. (ANTM) dan PT Timah Tbk. (TINS).

Untuk PTBA, Erick belum melakukan perubahan susunan pengurus perseroan secara besar-besaran. Perubahan hanya terjadi karena dilantiknya Suryo Eko Hadianto yang sebelumnya menjabat sebagai Direktur Operasi dan Produksi Bukit Asam menjadi Direktur Transformasi Bisnis di PT Indonesia Asahan Aluminium (Persero).

Adapun, posisi yang ditinggalkan Suryo diisi oleh Direktur Niaga Bukit Asam Adib Ubaidillah selaku Pelaksana Tugas (Plt) Direktur Operasi dan Produksi. Dengan demikian, mayoritas pengurus PTBA saat ini merupakan orang-orang yang diangkat pada masa kepemimpinan Menteri BUMN Rini Soemarno periode 2014-2019.

Sebelumnya, Pengamat BUMN dari Universitas Indonesia Toto Pranoto mengatakan direksi 3 BUMN tambang itu baru mengalami perubahan awal tahun ini. Dengan demikian, perlu dipertimbangkan dengan matang apabila ada perubahan lagi dalam RUPST mendatang.

“Direksi yang baru dibentuk butuh waktu dalam fine tuning bisnis dan mungkin perlu diberikan waktu untuk unjuk kinerja. Misalnya, setelah berjalan dua semester dan performance tidak sesuai harapan mungkin opsi penggantian bisa dilakukan,” jelasnya kepada Bisnis, Selasa (9/6/2020).

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As is known, TINS and ANTM will also hold an AGM on Thursday (06/11/2020). Both also have an agenda for approval of changes in the composition of the company's management.

Toto assessed that changes in SOEs directors that are too frequent, especially in public companies, will trigger uncertainty about the company's future prospects. As a result, investors can grow doubts.

"Even if there is a replacement possible at PTBA because there has not been a change in management in the last few years," he added. Editor: Rivki Maulana

Seperti diketahui, TINS dan ANTM juga akan menggelar RUPST pada, Kamis (11/6/ 2020). Keduanya juga memiliki agenda persetujuan perubahan susunan pengurus perseroan.

Toto menilai pergantian direksi BUMN yang terlalu sering, apalagi di perusahaan ter-buka, akan memicu ketidakpastian tentang prospek perusahaan ke depan. Akibatnya,

bisa tumbuh keraguan di investor.

“Kalaupun ada penggantian mungkin di

PTBA karena belum ada penggantian mana-jemen pengelola dalam beberapa tahun terakhir,” imbuhnya. Editor : Rivki Maulana

ESDM Ministry: Arutmin and Kaltim Prima Coal, which have recently proposed extending the PKP2B Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

FROM November this year to April 2025,

there are seven companies holding Coal Mining Concession Work Agreements (PKP2B) whose contracts will expire.

Of the seven giant companies with the first

generation PKP2B status, only two companies have submitted a status change to a Special Mining Business License (IUPK) as a continuation of PKP2B.

The Director of Coal Development and Business of the M inistry of ESDM Sujatmiko said that the request came from PT Arutmin Indonesia and PT Kaltim Prima Coal (KPC). The two subsidiaries of PT Bumi Resources Tbk (BUMI) submitted in different time frames.

Kementerian ESDM: Arutmin dan Kaltim Prima Coal yang baru

ajukan perpanjang PKP2B Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

MULAI November tahun ini hingga April

2025, ada tujuh perusahaan pemegang Per-janjian Karya Pengusahaan Pertambangan Batubara (PKP2B) yang akan habis masa kontraknya.

Dari ketujuh perusahaan raksasa yang ber-status PKP2B generasi pertama itu, baru dua perusahaan yang sudah mengajukan per-ubahan status menjadi Izin Usaha Pertam-bangan Khusus (IUPK) sebagai kelanjutan dari PKP2B.

Direktur Pembinaan dan Pengusahaan Batu-bara Kementerian ESDM Sujatmiko menyam-paikan, permohonan itu datang dari PT Arutmin Indonesia dan PT Kaltim Prima Coal (KPC). Kedua anak usaha dari PT Bumi Resources Tbk (BUMI) itu mengajukan dalam rentang waktu yang berbeda.

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"There are two companies that have submitted proposals, PT Arutmin Indonesia submitted in October 2019 and PT KPC in March 2020," Sujatmiko told Kontan.co.id, Tuesday (9/6).

According to Sujatmiko, his party is currently conducting a comprehensive evaluation of the petition submitted by Arutmin. The evaluation was carried out by an Integrated Team involving represen-tatives from cross ministries/institutions, as well as academics.

He said, evaluations related to environ-mental and administrative aspects were carried out in accordance with current regulations. In accordance with Article 112 B of Government Regulation (PP) Number 77 of 2014, the evaluation of the extension of PKP2B operations includes fulfillment of administrative, technical, environmental and financial obligations.

"Fulfi llment of these obligations by prioritizing national interests and increasing state revenue," said Sujatmiko.

However, Sujatmiko stated that the evaluation related to increasing state revenue would be carried out based on regulations derived from the new Minerba Law currently being drafted by the government. Unfortunately, he did not reveal further about the preparation of the derivative rules.

What is clear, in a previous Kontan.co.id report, the Director of Mineral Develop-ment and Exploitation of the Ministry of ESDM, Yunus Saefulhak revealed, there are at least three Government Regulation Draft (RPP) that is being discussed by the Ministry of ESDM and other government officials.

According to him, the 3 RPPs will summarize a number of articles that mandate further regulation in derivative regulations. He detailed,...

"Ada dua perusahaan yang sudah meng-ajukan, PT Arutmin Indonesia mengajukan bulan Oktober 2019 dan PT KPC bulan Maret 2020," kata Sujatmiko kepada Kontan.co.id, Selasa (9/6).

Menurut Sujatmiko, saat ini pihaknya tengah melakukan evaluasi secara menye-luruh terhadap permohonan yang diajukan oleh Arutmin. Evaluasi itu dilakukan oleh Tim Terpadu yang melibatkan wakil-wakil dari lintas kementerian/lembaga, serta akademisi.

Dia bilang, evaluasi yang terkait dengan aspek lingkungan dan administrasi dilaku-kan sesuai dengan peraturan yang suda ada saat ini. Sesuai ketentuan Pasal 112 B Peraturan Pemerintah (PP) Nomor 77 Tahun 2014, evaluasi perpanjangan operasi PKP2B meliputi pemenuhan kewajiban administrasi, teknis, lingkungan dan finansial.

"Pemenuhan kewajiban tersebut dengan mengutamakan kepentingan nasional dan peningkatan penerimaan negara," ujar Sujatmiko.

Namun, Sujatmiko menyatakan bahwa evaluasi yang terkait dengan peningkatan penerimaan negara akan dikerjakan ber-dasarkan peraturan turunan dari UU Minerba baru yang saat ini sedang disusun oleh pemerintah. Sayangnya, dia tidak membeberkan lebih jauh mengenai penyu-sunan aturan turunan tersebut.

Yang jelas, dalam pemberitaan Kontan.co.id sebelumnya, Direktur Pembinaan dan Peng-usahaan Mineral Kementerian ESDM Yunus Saefulhak mengungkapkan, paling tidak ada tiga Rancangan Peraturan Pemerintah (RPP) yang sedang digodok oleh Kementerian ESDM dan jajaran pemerintahan lainnya.

Menurut dia, 3 RPP tersebut akan merangkum sejumlah pasal yang meng-amanatkan pengaturan lebih lanjut dalam regulasi turunan. Dia merinci,...

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He detailed, the three RPP consisted of, first, the RPP regarding mining and coal mining management.

Second, lesson plans related to mining areas. Third, the RPP on guidance and supervision, which includes regulations on reclamation and post-mining. The three RPPs are targeted to be completed within the next nine months. At present, the government has formed a team to compile the three RPPs.

Meanwhile, based on the new Minerba Law, Article 169 B (2) To obtain an IUPK as a Continuation of Contract/Agreement Operations, holders of KK and PKP2B must submit an application to the Minister at the latest within a period of 5 (five) years and no later than a period of 1 (one) year before KK and PKP2B end.

According to the Chairman of the Indonesia Mining Institute Irwandy Arief, PKP2B holding companies whose contracts will expire soon can apply for an extension by meeting the minimum requirements. According to him, there are at least four minimum requirements that must be met.

First, it has included amendments to the PKP2B in accordance with article 169 of the Minerba Law, including submitting an Entire Regional Work Plan (RKSW). Second, do the mining governance process properly and correctly. Third, related to the fulfillment of environmental and social responsibilities.

Fourth, if it is extended it will increase state revenue and will develop value added alias downstreaming. "So it is not automatically extended, must be evaluated among others according to the items above," said Irwandy, to Kontan.co.id, Tuesday (9/6).

For information, the company whose contract expires in the near future is PT Arutmin Indonesia. Arutmin has...

Dia merinci, ketiga RPP tersebut terdiri dari, pertama, RPP tentang pengelolaan pertam-bangan minerba.

Kedua, RPP yang terkait dengan wilayah pertambangan. Ketiga, RPP tentang pem-binaan dan pengawasan, yang di dalamnya antara lain terdapat pengaturan perihal reklamasi dan pasca tambang. Ketiga RPP tersebut ditargetkan dapat diselesaikan dalam kurun waktu sembilan bulan ke depan. Saat ini, pemerintah sudah membentuk tim untuk menyusun tiga RPP tersebut.

Adapun, berdasarkan UU Minerba baru, Pasal 169 B (2) Untuk memperoleh IUPK sebagai Kelanjutan Operasi Kontrak/Perjanjian, pemegang KK dan PKP2B harus mengajukan permohonan kepada Menteri paling cepat dalam jangka waktu 5 (lima) tahun dan paling lambat dalam jangka waktu 1 (satu) tahun sebelum KK dan PKP2B berakhir.

Menurut Ketua Indonesia Mining Institute Irwandy Arief, perusahaan pemegang PKP2B yang kontraknya akan segera berakhir sudah bisa mengajukan permohonan perpanjangan dengan memenuhi persyaratan minimum. Menurutnya, paling tidak, ada empat per-syaratan minimum yang mesti dipenuhi.

Pertama, sudah memasukkan amandemen PKP2B sesuai pasal 169 UU Minerba, ter-masuk mengajukan Rencana Kerja Seluruh Wilayah (RKSW). Kedua, melakukan proses tata pertambangan secara baik dan benar. Ketiga, terkait dengan pemenuhan tanggung jawab lingkungan dan sosial.

Keempat, bila diperpanjang akan menambah penerimaan negara dan akan melakukan pengembangan nilai tambah alias hilirisasi. "Jadi tidak otomatis diperpanjang, harus dievaluasi antara lain sesuai butir-butir di atas," sebut Irwandy, kepada Kontan.co.id, Selasa (9/6).

Sebagai informasi, perusahaan yang kontrak-nya berakhir dalam waktu dekat adalah PT Arutmin Indonesia. Arutmin memiliki..

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Arutmin has a mining area of 57,107 ha, and the contract will expire on November 1, 2020.

Aside from Arutmin, there are six other first-generation PKP2Bs who will be out of contract. Namely PT Kendilo Coal Indonesia (1,869 ha/13 September 2021), PT Kaltim Prima Coal (84,938 ha/31 December 2021), PT Multi Harapan Utama (39,972 ha/1 April

2022), PT Adaro Indonesia (31,380 ha/1 October 2022 ), PT Kideco Jaya Agung (47,500 ha/13 March 2023), and PT Berau Coal (108,009/26 April 2025).

Arutmin memiliki wilayah tambang dengan luas 57.107 ha, dan kontraknya akan berakhir pada 1 November 2020.

Selain Arutmin, ada enam PKP2B generasi pertama lain yang akan habis kontrak. Yakni PT Kendilo Coal Indonesia (1.869 ha/13 September 2021), PT Kaltim Prima Coal (84.938 ha/31 Desember 2021), PT Multi Harapan Utama (39.972 ha/ 1 April

2022), PT Adaro Indonesia (31.380 ha/1 Oktober 2022), PT Kideco Jaya Agung (47.500 ha/13 Maret 2023), dan PT Berau Coal (108.009/26 April 2025).

United Tractors Ready to Inject Capital into Acset

Farid Firdaus

PT ACSET Indonusa Tbk (ACST) plans to

hold a capital increase action with preemptive rights (HMETD) or rights issue with a target of obtaining funds of Rp 1-1.5 trillion in August 2020. PT United Tractors Tbk (UNTR) as the majority shareholder committed to being the standby buyer of the corporate action.

United Tractors Corporate Secretary Sara

K Loebis said the company, through PT Karya Supra Perkasa, which controls 50.1% of Acset's shares, has agreed to become a standby rights issue buyer. Thus, the company has prepared funds according to the portion of share ownership in Acset.

"United Tractors is also preparing additional funds, if there are other shareholders who do not exercise the HMETD," she explained to Investor Daily,

Tuesday (9/6).

United Tractors Siap Suntik Modal ke Acset

Farid Firdaus

PT ACSET Indonusa Tbk (ACST) beren-cana menggelar aksi penambahan modal dengan hak memesan efek terlebih dahulu (HMETD) atau rights issue dengan target perolehan dana Rp 1-1,5 triliun pada Agustus 2020. PT United Tractors Tbk (UNTR) selaku pemegang saham mayoritas berkomitmen menjadi pembeli siaga aksi korporasi tersebut.

Sekretaris Perusahaan United Tractors Sara K Loebis mengatakan, perseroan melalui PT Karya Supra Perkasa yang merupakan pengendali 50,1% saham Acset telah menyanggupi untuk menjadi pembeli siaga rights issue. Dengan demikian, perseroan telah menyiapkan dana sesuai porsi kepemilikan saham pada Acset.

“United Tractors juga menyiapkan dana tambahan, jika ada pemegang saham lain yang tidak melaksanakan HMETD,” jelas dia kepada Investor Daily, Selasa (9/6).

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As is known, besides Karya Supra Perkasa, other Acset shareholders as of May 31, 2020 are PT Cross Plus Indonesia with 12.27%, HPAM Mutual Funds Progressive Equity 6.33%, PT Loka Cipta Kreasi 5.83%, HCBC-Fund Services, Bob (Cayman) 5.51%, and public ownership 19.96%.

As planned, Acset will offer a maximum of 15 billion new shares at a nominal price of Rp 100 per share. At present, the number of outstanding shares of Acset reaches 700 million shares. As a result, shareholders who do not exercise their rights in the rights issue have the potential to experience a maximum dilution effect of 95.54%.

Separately, Corporate Secretary of Acset Indonusa Maria Cesilia Hapsari said, the price of the rights issue was still under management review by taking into account current market conditions and the movement of Acset's shares. While the rights issue fund target of around Rp 1-1.5 trillion will be used to settle the company's debt obligations.

This corporate action has received the approval of shareholders in the Extra-ordinary General Meeting of Shareholders (EGMS) held on Monday (8/6). If it goes well, this action will become the company's second rights issue after previously holding the initial rights issue in 2016.

United Tractors has been recorded consistently helping its subsidiaries, both in the form of commitment to absorb new shares or provide loans. Last year, United Tractors raised its loan commitment to Acset to Rp 4 trillion from Rp 1.6 trillion.

The term of the loan agreement is until April 30, 2023, while the availability of funds until August 18, 2022. As of March 31, 2020, Acset has made payment of the shareholder loan of Rp 1.6 trillion.

Seperti diketahui, selain Karya Supra Perkasa, pemegang saham Acset lainnya per 31 Mei 2020 adalah PT Cross Plus Indonesia sebanyak 12,27%, Reksa Dana HPAM Ekuitas Progresif 6,33%, PT Loka Cipta Kreasi 5,83%, HCBC-Fund Services, Bob (Cayman) 5,51%, dan kepemilikan publik sebesar 19,96%.

Sesuai rencana, Acset akan menawarkan saham baru maksimal 15 miliar saham dengan harga nominal Rp 100 per saham. Saat ini, jumlah saham beredar Acset men-capai 700 juta saham. Alhasil, pemegang saham yang tidak mengeksekusi haknya pada rights issue berpotensi mengalami efek dilusi maksimal 95,54%.

Secara terpisah, Sekretaris Perusahaan Acset Indonusa Maria Cesilia Hapsari mengatakan, harga pelaksanaan rights issue masih dalam pengkajian manajemen dengan memper-hatikan kondisi pasar dan pergerakan saham Acset saat ini. Sementara target dana rights issue yang sekitar Rp 1-1,5 triliun akan digunakan untuk pelunasan kewajiban utang perseroan.

Aksi korporasi ini telah mendapat restu pemegang saham dalam Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) yang digelar pada Senin (8/6). Jika berjalan lancar, aksi ini akan menjadi rights issue kedua perseroan setelah sebelumnya menggelar rights issue perdana pada 2016.

United Tractors tercatat konsisten mem-bantu anak usahanya, baik dalam bentuk komitmen menyerap saham baru ataupun memberikan pinjaman. Tahun lalu, United Tractors menaikan komitmen pinjaman kepada Acset menjadi Rp 4 triliun dari semula Rp 1,6 triliun.

Jangka waktu perjanjian pinjaman tersebut sampai dengan 30 April 2023, sedangkan periode ketersediaan dana hingga 18 Agustus 2022. Per 31 Maret 2020, Acset telah melaku-kan pembayaran atas pinjaman pemegang

saham tersebut sebesar Rp 1,6 triliun.

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Performance of J Resources (PSAB) in 2020 Projected to Drop 25% Due to the Covid-19 Pandemic

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

PT J RESOURCES Asia Pasifik Tbk (PSAB) estimates that revenue and net profit could decline, with a magnitude of less than 25%. This value is calculated from the impact of the Covid-19 pandemic on the commodity market and the restrictions on the operati-onal activities of the gold mining company.

In the disclosure of information submitted to the Indonesia Stock Exchange (IDX) on Tuesday (9/6) yesterday, the covid-19 pandemic has an impact on the operational limitations of PSAB within a period of 3 months. The existence of additional protocols carried out following the Covid-19 handling protocol has an impact on roaster schedules or work shifts.

"There needs to be an additional place or quarantine intermediary before entering the factory site, there is an additional mess that must be prepared so that workers do not contact people outside the factory environ-ment," the report said.

From this condition, the contribution of income from operational activities that are subject to restrictions on total consolidated revenue in 2019 is estimated to be less than 25%. Meanwhile, the estimated decrease in total consolidated revenue for the March-April 2020 period compared to March-April 2019 is also less than 25%.

While the impact on consolidated net income for the March-April 2020 period compared to March-April 2019 is also expected to decrease by less than 25%.

Kinerja J Resources (PSAB) di 2020 diproyeksi turun 25%

akibat pandemi Covid-19 Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PT J RESOURCES Asia Pasifik Tbk (PSAB) memperkirakan pendapatan dan laba bersih bisa turun, dengan besaran kurang dari 25%. Nilai itu dihitung dari dampak pandemi Covid-19 terhadap pasar komoditas serta pembatasan aktivitas operasional per-usahaan tambang emas tersebut.

Dalam keterbukaan informasi yang di-sampaikan kepada Bursa Efek Indonesia (BEI), Selasa (9/6) kemarin, pandemi covid-19 berdampak terhadap pembatasan operasional PSAB dalam kurun waktu 3 bulan. Adanya protokol tambahan yang dilakukan mengikuti protokol penanganan Covid-19 berimbas pada schedule roaster atau shift kerja.

"Perlu ada tambahan tempat atau perantara karantina sebelum masuk ke lokasi pabrik, adanya mess tambahan yang harus disiapkan supaya pekerja tidak ada kontak dengan orang do luar lingkungan pabrik," tulis laporan tersebut.

Dari kondisi itu, kontribusi pendapatan dari kegiatan operasional yang mengalami pem-batasan terhadap total pendapatan konso-lidasi tahun 2019 diperkirakan kurang dari 25%. Sementara itu, perkiraan penurunan total pendapatan konsolidasi untuk periode Maret-April 2020 dibandingkan Maret-April 2019 juga kurang dari 25%.

Sedangkan dampak terhadap laba bersih konsolidasi untuk periode Maret-April 2020 dibandingkan Maret-April 2019 juga diper-kirakan turun kurang dari 25%.

IMA-Daily Update Page 11

PSAB has actually made corrections to these projections. Previously, the gold mining issuer had published material information or facts related to the impact of Covid-19 to the IDX on May 26 last.

In the correction report, PSAB stated that the company still maintained business continuity amid the conditions of the Covid-19 pandemic. With a number of strategies. First, do the Covid-19 protocol strictly, especially when entering the work area at the mine site and factory.

Second, conducting in-camp, especially those working at the mine site and factory, so there is no direct contact with people outside. Third, carry out a 14-day quarantine if there is a roaster shift to ensure that everyone who goes to the mine site and factory is in good health.

Fourth, communication with suppliers and creditors to inform the company's current condition, so that suppliers and creditors can continue to provide support to PSAB in carrying out business activities. Fifth, make every effort so that PSAB gold sales activities are not disrupted.

PSAB sejatinya telah melakukan koreksi atas proyeksi tersebut. Sebelumnya, emite n tambang emas ini sudah menerbitkan infor-masi atau fakta material terkait dampak Covid-19 kepada BEI pada tanggal 26 Mei lalu.

Dalam laporan koreksi tersebut, PSAB menyatakan bahwa perusahaan tetap mem-pertahankan kelangsungan usaha di tengah kondisi pandemi Covid-19. Dengan sejumlah strategi. Pertama, melakukan protokol Covid-19 dengan ketat, terutama saat me-masuki wilayah kerja di lokasi tambang dan pabrik.

Kedua, melakukan in-camp khususnya yang bekerja di lokasi tambang dan pabrik, sehingga tidak terjadi kontak langsung dengan orang-orang di luar. Ketiga, melakukan karantina 14 hari apabila ada roaster shift untuk memasti-kan setiap yang menuju lokasi tambang dan pabrik dalam kondisi sehat.

Keempat, melakukan komunikasi dengan supplier dan kreditur untuk menginformasikan kondisi perusahaan terkini, sehingga supplier dan kreditur dapat terus memberi dukungan kepada PSAB dalam menjalankan kegiatan usaha. Kelima, melakukan segala upaya agar kegiatan penjualan emas PSAB tidak

terganggu.

The Price of Reference Coal (HBA) Slides, PTBA Trims the DMO Portion

Pandu Gumilar

STATE-owned listed company PT Bukit Asam Tbk. plans to reduce the supply of coal for domestic market obligations (DMO) by 10 percent.

Initially the PTBA-coded stock issuer planned to supply coal to the domestic market by 60 percent of the total production which reached 30 million tons. However,...

Harga Batu Bara Acuan (HBA) Melorot, PTBA Pangkas Porsi DMO

Pandu Gumilar

EMITEN pelat merah PT Bukit Asam Tbk. berencana mengurangi pasokan batu bara untuk domestic market obligations (DMO) sebesar 10 persen.

Mulanya emiten berkode saham PTBA itu berencana memasok batu bara untuk pasar domestik sebesar 60 persen dari total produksi yang mencapai 30 juta ton. Akan tetapi,...

IMA-Daily Update Page 12

However, the price of reference coal (HBA) decided by the Ministry of Energy and Mineral Resources (ESDM) often decreases.

In June, the government reduced the HBA by 13 percent from the position of US $ 61.11 per ton in May 2020 to US$ 52.98 per ton. Bukit Asam's Corporate Secretary Hadis Surya said that the price of HBA which tends to decline quite impacted the company.

According to him it shows the weakening of domestic coal absorption. PTBA also tried to make a breakthrough by looking for other export markets to maintain PTBA's performance.

"This affects coal production for special DMO supply, where there is a decrease of approximately 10 percent than planned for DMO. However, in proportion to DMO fulfillment, PTBA still refers to the Ministry of ESDM regulation, where a minimum of 25 percent of total production for DMO supply," he told Bisnis on Tuesday (06/09/2020).

Hadis added in total, PTBA hopes to meet the DMO of at least 50 percent of the total coal sold by the company this year.

In the phase of rock price volatility and the tendency of reduced demand for coal supply, PTBA will conduct efficiency. Hadis said that happened all business lines even from the operational side of PTBA also made efforts to reduce the cost of production (HPP).

"The reduction of HPP through the implementation of optimization of mining service costs by pressing the most optimal stripping ratio and hauling distance, optimization of tool road hours and fuel savings," he said. Editor: Hafiyyan

Akan tetapi, harga batu bara acuan (HBA) yang diputuskan oleh Kementerian Energi dan Sumberdaya Mineral (ESDM) kerap menurun.

Pada Juni, pemerintah menurunkan HBA sebesar 13 persen dari posisi US$61,11 per ton pada Mei 2020 menjadi US$52,98 per ton. Sekretaris Perusahaan Bukit Asam Hadis Surya mengatakan harga HBA yang cenderung menurun cukup berdampak bagi perseroan.

Menurutnya hal itu menunjukkan adanya pelemahan penyerapan batubara dalam negeri. PTBA pun berusaha melakukan terobosan dengan mencari pasar ekspor lain untuk menjaga performa PTBA.

"Ini mempengaruhi produksi batubara untuk pasokan khusus DMO, di mana ada penurunan kurang lebih 10 persen dari yang direncanakan untuk DMO. Namun, secara proporsi pemenuhan DMO, PTBA tetap mengacu kepada ketentuan Kemen-terian ESDM, di mana minimal 25 persen dari total produksi untuk pasokan DMO," katanya kepada Bisnis pada Selasa (9/6/2020).

Hadis menambahkan secara total, PTBA berharap dapat memenuhi DMO minimal 50 persen dari total batubara yang dijual perusahaan pada tahun ini.

Dalam fase volatilitas harga batu dan kecenderungan berkurangnya permintaan pasokan batu bara, PTBA akan melakukan efisiensi. Hadis mengatakan hal itu terjadi semua lini bisnis bahkan dari sisi operasional PTBA juga melakukan upaya penurunan harga pokok produksi (HPP).

"Pengurangan HPP melalui penerapan optimasi biaya jasa penambangan dengan menekan stripping ratio dan jarak angkut yang paling optimal, optimasi jam jalan alat dan penghematan BBM," katanya. Editor : Hafiyyan

IMA-Daily Update Page 13

Bumi Resources (BUMI) believes Arutmin and KPC will get a

contract extension Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

PT BUMI Resources Tbk (BUMI) is optimistic that both of its subsidiaries, PT Arutmin Indonesia and PT Kaltim Prima Coal (KPC) can get a contract extension while maintaining its mining area.

As is known, Arutmin is the holder of the Coal Mining Work Agreement (PKP2B) whose contract will expire soon on November 1, 2020. Meanwhile, the KPC contract will expire on December 31, 2021.

With an area of mining land of 57,107 hectares (ha) for Arutmin and 84,938 ha for KPC, these two BUMI subsidiaries are among the largest coal producers in Indonesia.

BUMI Director and Corporate Secretary Dileep Srivastava said that at present his party was still waiting for the final decision from the Ministry of ESDM. He was sure that both Arutmin and KPC could change their status from PKP2B to a Special Mining Business License (IUPK) as a continuation of the contract, by maintaining the area of the mining area.

"We are optimistic. We hope to receive the final formal decision from the authorities for both," Dileep told Kontan.co.id, Tuesday (9/6).

Contacted separately, PT Arutmin Indonesia's General Manager Legal & External Affairs Ezra Sibarani also expected the same thing. According to him,...

Bumi Resources (BUMI) yakin Arutmin dan KPC bakal dapat

perpanjangan kontrak Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

PT BUMI Resources Tbk (BUMI) optimistis kedua anak usahanya, yakni PT PT Arutmin Indonesia dan PT Kaltim Prima Coal (KPC) bisa mendapatkan perpanjangan kontrak sekaligus mempertahankan luasan wilayah pertambangannya.

Seperti diketahui, Arutmin merupakan peme-gang Perjanjian Karya Pengusahaan Pertam-bangan Batubara (PKP2B) yang kontraknya akan segera berakhir pada 1 November 2020 mendatang. Sementara itu, kontrak KPC akan berakhir pada 31 Desember 2021.

Dengan luasan lahan tambang sebesar 57.107 hektare (ha) untuk Arutmin dan 84.938 ha untuk KPC, kedua anak usaha BUMI ini termasuk ke dalam produsen batubara terbesar di Indonesia.

Direktur dan Corporate Secretary BUMI Dileep Srivastava mengatakan, saat ini pihak-nya masih menunggu keputusan final dari Kementerian ESDM. Dia yakin, baik Arutmin maupun KPC bisa berubah status dari PKP2B menjadi Izin Usaha Pertambangan Khusus (IUPK) sebagai kelanjutan kontrak, dengan mempertahankan luasan wilayah tambang.

"Kami optimistis. Kami berharap dapat menerima keputusan formal final dari pihak berwenang untuk keduanya," ungkap Dileep kepada Kontan.co.id, Selasa (9/6).

Dihubungi terpisah, General Manager Legal & External Affairs PT Arutmin Indonesia Ezra Sibarani juga mengharapkan hal serupa. Menurutnya,...

IMA-Daily Update Page 14

According to him, Arutmin himself has proposed a permit extension from last year. This was made possible by the arrange-ments in the PKP2B contract and the mechanism set out in Government Regulation (PP) No. 77 of 2014.

Ezra claims, the main requirements needed to extend this contract have been completed by Arutmin. "Currently it is in the process of evaluating the Directorate General of Mineral and Coal related to fulfilling the requirements. All the main requirements are now, the process of confirmation of supporting data," Ezra said when contacted by Kontan.co.id, Tuesday (9/6).

He also hopes that Arutmin's mining area will not shrink when the permit is extended in the form of an IUPK. Although the authority still remains with the government, through the Minister of ESDM.

"We hope to get an extension to the current area. But it remains the authority of the government after evaluating various aspects of Arutmin," Ezra said.

In Kontan.co.id's notes, the contract extension for KK/PKP2B and the change of status to IUPK, among others are regulated in Article 169 A and Article 169 B of the new Minerba Law.

The guarantee for the extension of KK and PKP2B in the revision of the Minerba Law is contained in Article 169 A, which states that KK and PKP2B are granted a guarantee of extension to IUPK as a continuation of contract/agreement operation after fulfilling the following requirements:

(a) contracts/agreements that have not yet received an extension are guaranteed to get 2 (two) times the extension in the form of IUPK as Continuation of the Contract/Agreement for each period of not more than 10 years as a continuation of operations after the end of the KK or PKP2B by considering efforts to increase revenue country.

Menurutnya, Arutmin sendiri sudah meng-ajukan perpanjangan izin dari tahun lalu. Hal itu dimungkinkan dengan pengaturan dalam kontrak PKP2B dan mekanisme yang tertuang dalam Peraturan Pemerintah (PP) Nomor 77 Tahun 2014.

Ezra mengklaim, persyaratan utama yang dibutuhkan untuk perpanjangan kontrak ini sudah dilengkapi Arutmin. "Saat ini sedang dalam proses evaluasi di Ditjen Minerba terkait pemenuhan syarat-syarat. Sudah semua syarat utama, sekarang proses konfirmasi data-data pendukung," kata Ezra saat dihubungi Kontan.co.id, Selasa (9/6).

Dia juga berharap luas wilayah tambang Arutmin tidak menyusut saat izin diper-panjang dalam bentuk IUPK. Kendati kewe-nangan tetap ada di tengan pemerintah, melalui Menteri ESDM.

"Kita berharap mendapatkan perpanjangan dengan luas wilayah sekarang. Tetapi itu tetap kewenangan pemerintah setelah melakukan evaluasi berbagai aspek dari Arutmin," sebut Ezra.

Dalam catatan Kontan.co.id, pengaturan perpanjangan kontrak KK/PKP2B dan perubahan statusnya menjadi IUPK, antara lain diatur dalam Pasal 169 A dan Pasal 169 B UU Minerba yang baru.

Jaminan perpanjangan KK dan PKP2B dalam revisi UU Minerba tertuang dalam Pasal 169 A, yang menyebutkan bahwa KK dan PKP2B diberikan jaminan perpanjangan menjadi IUPK sebagai kelanjutan operasi kontrak/ perjanjian setelah memenuhi persyaratan:

(a) kontrak/perjanjian yang belum mem-peroleh perpanjangan dijamin mendapatkan 2 (dua) kali perpanjangan dalam bentuk IUPK sebagai Kelanjutan Operasi Kontrak/ Perjanjian masing–masing untuk jangka waktu paling lama 10 tahun sebagai kelanjutan operasi setelah berakhirnya KK atau PKP2B dengan mempertimbangkan upaya pening-katan penerimaan negara.

IMA-Daily Update Page 15

(b) contracts/agreements that have obtained the first extension are guaranteed to be given a second extension in the form of an IUPK as a Continuation of the Contract/Agreement for a maximum period of 10 years as a continuation of operations after the end of the first extension of the KK or PKP2B taking into account efforts to increase state revenue.

Whereas Article 169 B states, when IUPK as a Continuation of Contract/Agreement Operation is given, the area of develop-ment plan for all areas approved by the Minister becomes WIUPK for the stage of production operation activities.

(b) kontrak/perjanjian yang telah mem-peroleh perpanjangan pertama dijamin untuk diberikan perpanjangan kedua dalam bentuk IUPK sebagai Kelanjutan Operasi Kontrak/Perjanjian untuk jangka waktu paling lama 10 tahun sebagai kelanjutan operasi setelah berakhirnya perpanjangan pertama KK atau PKP2B dengan memper-timbangkan upaya peningkatan penerimaan negara.

Sedangkan dalam Pasal 169 B disebutkan, Pada saat IUPK sebagai Kelanjutan Operasi Kontrak/Perjanjian diberikan, wilayah rencana pengembangan seluruh wilayah yang disetujui Menteri menjadi WIUPK untuk tahap kegiatan operasi produksi.

Kideco PKP2B ends in 2023, Indika Energy (INDY) is waiting for the Minerba Law derivative

regulation Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

SEVEN companies holding Coal Mining Concession Agreements (PKP2B) will expire. PT Kideco Jaya Agung is one of them.

The subsidiary of PT Indika Energy Tbk (INDY) is one of the largest coal producers in Indonesia. In the new Mineral and Coal Law (Minerba Law), there is a guarantee extension clause for Contract of Work (CoW/KK) or PKP2B, and a change in status to a Special Mining Business License (IUPK).

The regulation was stipulated in Article 169 A of the new Minerba Law which was passed at the DPR RI Plenary Meeting on May 12 last. Meanwhile,...

PKP2B Kideco berakhir di 2023, Indika Energy (INDY) tunggu aturan turunan UU Minerba

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

TUJUH perusahaan pemegang Perjanjian Karya Pengusahaan Pertambangan Batu-bara (PKP2B) akan habis kontraknya. PT Kideco Jaya Agung adalah satu diantaranya.

Anak usaha dari PT Indika Energy Tbk (INDY) tersebut merupakan salah satu produsen batubara terbesar di Indonesia. Dalam Undang-Undang Mineral dan Batubara (UU Minerba) yang baru, terdapat klausula jaminan perpanjangan bagi Kontrak Karya (KK) atau PKP2B, dan perubahan status menjadi Izin Usaha Pertambangan Khusus (IUPK).

Pengaturan itu tertuang dalam Pasal 169 A UU Minerba baru yang disahkan di Rapat Paripurna DPR RI pada 12 Mei lalu. Adapun,...

IMA-Daily Update Page 16

Meanwhile, Article 169 B paragraph (2) states, to obtain an IUPK as a continuation of the operation of KK/PKP2B, the company can submit an application to the Minister no sooner than 5 years and no later than 1 year before the contract ends.

This means that with the Kideco Jaya Agung contract that will expire on March 13, 2023, the request for contract extension can be done. However, INDY as the holding company does not seem to be in a hurry.

INDY's Head of Corporate Communication Ricky Fernando said, before submitting an application for an extension, his party would first await the derivative rules of the new Minerba Law. The derivative rules are Government Regulations (PP) which will regulate more clearly related to the contract renewal process and the change in status of PKP2B to IUPK.

"Right, the Kideco mining contract is currently in effect until March 13, 2023. We are still waiting for the regulations derived from the new Minerba Law to clarify the implementation of the regulation," Ricky told Kontan.co.id, Tuesday (9/6).

Ricky was still not able to open the extent to which the preparation of the Entire Regional Work Plan (RKSW) was prepared. This RKSW becomes important because one of the main considerations for the Minister of ESDM in evaluating the area of the area that will be given to Kideco if it is extended to become IUPK. "That's an internal process, yes," said Ricky.

In Kontan.co.id's notes, Kideco is the main pillar of INDY's coal business, with a contribution of 55% to consolidated revenue. In terms of volume, from the production target of around 31 million tons this year, 29.65 million tons came from Kideco. Until the first quarter,...

Adapun, Pasal 169 B ayat (2) disebutkan, untuk memperoleh IUPK sebagai kelanjutan operasi dari KK/PKP2B, perusahaan bisa mengajukan permohonan kepada Menteri paling cepat 5 tahun dan paling lambat 1 tahun sebelum kontrak berakhir.

Artinya, dengan kontrak Kideco Jaya Agung yang akan habis pada 13 Maret 2023 mendatang, permohonan perpanjangan kontrak sudah bisa dilakukan. Namun, INDY sebagai induk usaha tampaknya tidak mau tergesa-gesa.

Head of Corporate Communication INDY Ricky Fernando mengatakan, sebelum mengajukan permohonan perpanjangan, pihaknya akan terlebih dulu menunggu aturan turunan dari UU Minerba yang baru. Aturan turunan tersebut merupakan Peraturan Pemerintah (PP) yang akan mengatur lebih jelas terkait dengan proses perpanjangan kontrak dan perubahan status PKP2B menjadi IUPK.

"Benar, kontrak tambang Kideco saat ini berlaku hingga 13 Maret 2023. Kami masih menunggu peraturan turunan dari UU Minerba yang baru untuk memperjelas implementasi beleid tersebut," kata Ricky kepada Kontan.co.id, Selasa (9/6).

Ricky pun masih belum bisa membuka sejauh mana penyusunan Rencana Kerja Seluruh Wilayah (RKSW) telah disiapkan. RKSW ini menjadi penting karena salah satu pertimbangan utama bagi Menteri ESDM dalam mengevaluasi luasan wilayah yang akan diberikan kepada Kideco jika diper-panjang menjadi IUPK. "Itu internal proses ya," sebut Ricky.

Dalam catatan Kontan.co.id, Kideco merupa-kan penopang utama bisnis batubara INDY, dengan kontribusi sebesar 55% terhadap pendapatan konsolidasi. Secara volume, dari target produksi sekitar 31 juta ton pada tahun ini, sebanyak 29,65 juta ton berasal dari Kideco. Hingga kuartal I,...

IMA-Daily Update Page 17

Until the first quarter, from 9.3 million tons

of realized coal production from INDY,

Kideco contributed as much as 8.8 million

tons.

Just so you know, Kideco Jaya Agung has

been established since 1982. The company

has a coal mining concession of 47,500

hectares (Ha) located in Paser Regency, East

Kalimantan.

40% of Kideco Jaya Agung's shares are

directly owned by INDY. This issuer also

owns 51% of Kideco Jaya Agung shares

through PT Indika Inti Corpindo. The 9%

remaining shares are owned by South

Korea's Samtan Co., Ltd.

In addition to Kideco, the PKP2B holder who

will expire is PT Arutmin Indonesia with an

area of 57,107 ha whose contract will expire

on November 1, 2020. In addition there are

also PT Kendilo Coal Indonesia (1,869 ha/13

September 2021), PT Kaltim Prima Coal

(84,938 ha/31 December 2021), PT Multi

Harapan Utama (39,972 ha/1 April 2022),

PT Adaro Indonesia (31,380 ha/1 October

2022), and PT Berau Coal (108,009/26 April

2025).

Hingga kuartal I, dari 9,3 juta ton realisasi

produksi batubara INDY, Kideco ber-

kontribusi sebanyak 8,8 juta ton.

Asal tahu saja, Kideco Jaya Agung telah

berdiri sejak tahun 1982 silam. Perusahaan

ini memiliki konsensi tambang batubara

seluas 47.500 hektar (Ha) yang terletak di

Kabupaten Paser, Kalimantan Timur.

Sebesar 40% saham Kideco Jaya Agung

dimiliki langsung oleh INDY. Emiten ini

juga memiliki 51% saham Kideco Jaya

Agung melalui PT Indika Inti Corpindo.

Adapun 9% saham yang tersisa dimiliki

oleh Samtan Co, Ltd asal Korea Selatan.

Selain Kideco, pemegang PKP2B yang akan

habis kontrak adalah PT Arutmin

Indonesia dengan luasan 57,107 ha yang

kontraknya akan berakhir 1 November

2020. Selain itu ada juga PT Kendilo Coal

Indonesia (1.869 ha/13 September 2021),

PT Kaltim Prima Coal (84.938 ha/31

Desember 2021), PT Multi Harapan Utama

(39.972 ha/1 April 2022), PT Adaro

Indonesia (31.380 ha/1 Oktober 2022),

dan PT Berau Coal (108.009/26 April

2025).

PTBA Gasification Project Threatened to Retreat

Finna U. Ulfah

THE COAL gas project owned by the red-

listed mining company, PT Bukit Asam

Tbk., Is threatened to retreat from the

completion target in line with the ongoing

Covid-19 pandemic.

Proyek Gasifikasi PTBA Terancam Mundur

Finna U. Ulfah

PROYEK gasifikasi batu bara milik emiten

tambang berpelat merah, PT Bukit Asam

Tbk., terancam mundur dari target

penyelesaian seiring dengan masih ber-

langsungnya pandemi Covid-19.

IMA-Daily Update Page 18

Company Secretary of Bukit Asam Hadis Surya said that the company is evaluating the overall plan for the coal gasification project due to the Covid-19 pandemic. Previously, the plant was expected to be operational by the end of 2023.

"As a result of Covid-19 this plan has the potential to be reversed and at the same time be evaluated for its priority. So, it

could be DME or it could be Methanol which was done first," Hadis told Bisnis on Tuesday (06/09/2020).

Nevertheless, the Hadis does not want to

explain in detail the factors and details of

the coal rotation project delay in collaboration with Air Products.

Meanwhile, the total investment between the issuer coded PTBA shares and Air Products for the development of this

gasification is US$ 3.2 billion. Later, Air Products acts as an investor in the Upstream and Downstream businesses.

This gasification will convert young coal into syngas to be processed into Dimethyl Ether (DME), Methanol, and Mono

Ethylene Glycol (MEG).

The coal rotation project is planned to

produce 1.4 million tons of DME, 300,000 tons of Methanol and 250,000 tons of MEG.

Currently the feasibility study has been completed and entered the FEED and EPC stages.

The gasification development will be carried out in the Bukit Asam Coal Based Special Economic Zone (BACBSEZ) Tanjung Enim, South Sumatra. Later, this down-stream DME can be used as raw material for LPG, so that it can reduce gas imports for LPG. Editor: Hafiyyan

Sekertaris Perusahaan Bukit Asam Hadis Surya mengatakan bahwa perseroan tengah mengevaluasi secara keseluruhan rencana proyek gasifikasi batu bara akibat pandemi Covid-19. Sebelumnya, pabrik ini diharapkan dapat beroperasi di akhir 2023.

“Akibat Covid-19 rencana ini berpotensi jadi mundur dan sekalian dievaluasi untuk prioritasnya. Jadi, bisa DME atau bisa juga Methanol yang duluan dikerjakan,” ujar Hadis kepada Bisnis, Selasa (9/6/2020).

Kendati demikian, Hadis belum mau men-jelaskan secara terperinci faktor dan detail penundaan proyek penghiliran batu bara yang bekerja sama dengan Air Products tersebut.

Adapun, total investasi antara emiten berkode saham PTBA itu dan Air Products untuk pengembangan gasifikasi ini adalah US$3,2 miliar. Nantinya, Air Products ber-tindak sebagai investor di bisnis Upstream dan Downstream.

Gasifikasi ini akan mengkonversi batubara muda menjadi syngas untuk kemudian diproses menjadi Dimethyl Ether (DME), Methanol, dan Mono Ethylene Glycol (MEG).

Proyek penghiliran batu bara ini di-rencanakan akan memproduksi 1,4 juta ton DME, 300.000 ton Methanol, dan 250.000 ton MEG. Saat ini studi kelayakan sudah selesai dan masuk ke tahap FEED dan EPC.

Pembangunan gasifikasi ini akan dilakukan di kawasan Bukit Asam Coal Based Special Economic Zone (BACBSEZ) Tanjung Enim, Sumatra Selatan. Nantinya, DME hasil hilirisasi ini dapat digunakan sebagai bahan baku LPG, sehingga dapat mengu-rangi impor gas untuk LPG. Editor : Hafiyyan

IMA-Daily Update Page 19

Ouch! Coal Prices Fall Again, Stay Away from the Level of

US$60/ton Tirta Citradi, CNBC Indonesia

NEWCASTLE coal prices for heavily

traded contracts closed lower yesterday. Even though the global economy is starting to accelerate again, the price of coal is still difficult to penetrate US$ 60/ton.

Yesterday (06/09/2020) Newcastle coal prices for busy contracts traded down 2.61% to US$ 54/ton. In month to date coal prices experienced a correction of 4.08%.

Although lockdown relaxation is on the

way and the new normal era continues to be welcomed, the price of coal cannot be said to be recovering. China's economy continues to advance and the Eurozone economy that is gradually being opened has indeed led to coal prices shot up. But it still hasn't reached the level before the pandemic.

One indicator of the reopening of the economy is the level of air pollution which

has risen again to pre-pandemic levels.

Citing data from the Center for Research on Energy and Clean Air, the level of air pollution in China has increased. This is reflected in the increase in pollutant levels such as NO2, O3, SO2, and PM 2.5.

Increased economic activity in China is also indicated by an increase in coal burned in the six largest power plants in China. Increased coal consumption in China has

made coal stocks thin out.

Duh! Harga Batu Bara Jatuh Lagi, Jauhi Level US$ 60/ton

Tirta Citradi, CNBC Indonesia

HARGA batu bara Newcastle untuk

kontrak yang ramai diperdagangkan ditutup melemah pada perdagangan kemarin. Meskipun ekonomi global mulai dipacu lagi, harga batu bara masih susah tembus US$ 60/ton.

Kemarin (9/6/2020) harga batu bara Newcastle untuk kontrak yang ramai diperdagangkan melemah 2,61% ke US$ 54/ton. Secara month to date harga batu bara mengalami koreksi sebesar 4,08%.

Meski relaksasi lockdown di tempuh dan era new normal terus disongsong, harga batu bara belum bisa dikatakan pulih. Ekonomi China yang terus melaju dan ekonomi Zona Euro yang secara gradual terus dibuka memang sempat membawa harga batu bara melesat. Namun masih belum tembus level sebelum pandemi.

Salah satu indikator kembali dibukanya perekonomian adalah tingkat polusi udara yang sudah naik lagi kembali ke level sebelum masa pandemi.

Mengutip data Center for Research on Energy and Clean Air, tingkat cemaran udara di China mengalami kenaikan. Hal ini tercermin dari kenaikan tingkat polutan seperti NO2, O3, SO2, dan PM 2,5.

Meningkatnya aktivitas ekonomi di China juga diindikasikan dengan peningkatan batu bara yang dibakar di enam pem-bangkit terbesar di China. Peningkatan konsumsi batu bara China membuat stok batu bara Negeri Tirai Bambu menipis.

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Based on Refinitiv Coal Flow data, the total stock in major Bohai ports such as Caofeidian, Qinhuangdao and Jingtang in northern China reached 12.3 million tons as of May 29, 2020 compared to 17.5 million tons in the same period last month.

But with this reality the price of coal is still difficult to rally and penetrate the level of US$ 60/ton. Tension between Australia and China is a negative sentiment for coal prices.

The land of kangaroos is trying to improve its relationship with the land of pandas. But the call must be returned with disappointment. In fact, an invitation to hold discussions to find a solution to their dispute has been sent to China since weeks ago, said Australian Trade Minister Simon Birmingham.

"Unfortunately, our requests for discussion so far have been met negatively," Birmingham told Australian Broadcasting Corp (ABC) radio on Monday (6/8/2020). "That's disappointing."

China is furious with Australia because the Kangaroo State supports investigative steps related to the origins of the corona virus which is the culprit of the current global pandemic. Beijing finally took steps to impose import duties on Australian barley imports.

In addition to threats and tariffs, on Friday China also urged its citizens not to travel to Australia. The reason is because there is racial discrimination and violence against Chinese people in connection with the corona virus pandemic in the country. However, this has been denied by Australia.

Tensions between the two parties gave rise to uncertainty. Moreover, Australian exports to China accounted for 30% including coal. This is one of the factors that weighs on coal prices.

Berdasarkan data Refinitiv Coal Flow, total stok di pelabuhan utama Bohai seperti Caofeidian, Qinhuangdao dan Jingtang di China bagian utara mencapai 12.3 juta ton per 29 Mei 2020 dibandingkan 17.5 juta ton periode yang sama bulan lalu.

Namun dengan realitas ini harga batu bara masih susah reli dan tembus level US$ 60/ton. Ketegangan hubungan antara Australia dengan China menjadi sentimen negatif bagi harga batu bara.

Negeri Kanguru mencoba memperbaiki hubungannya dengan Negeri Panda. Namun seruan itu harus dibalas dengan kekecewaan. Padahal, ajakan untuk mengadakan diskusi untuk menemukan solusi bagi perselisihan mereka telah dikirimkan ke China sejak berminggu-minggu lalu, kata Menteri Perda-gangan Australia Simon Birmingham.

"Sayangnya, permintaan kami untuk diskusi sejauh ini telah dipenuhi secara negatif," kata Birmingham kepada radio Australian Broadcasting Corp (ABC), Senin (8/6/2020). "Itu mengecewakan."

China geram dengan Australia karena Negeri Kanguru itu mendukung langkah investigasi terkait asal muasal virus corona yang jadi biang kerok pandemi global saat ini. Beijing akhirnya mengambil langkah untuk me-nerapkan bea masuk terhadap impor barley asal Australia.

Selain ancaman dan tarif, pada Jumat lalu China juga telah mengimbau warganya untuk tidak bepergian ke Australia. Alasannya adalah karena ada diskriminasi rasial dan kekerasan terhadap orang China sehubungan dengan pandemi virus corona di negara itu. Namun, hal ini telah dibantah Australia.

Ketegangan antara kedua belah pihak me-munculkan ketidakpastian. Apalagi ekspor Australia ke China pangsanya mencapai 30% termasuk di dalamnya ada batu bara. Ini menjadi salah satu faktor yang memberat-kan harga batu bara.

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Other factors that have also contributed to hampering the strengthening of prices are the possibility of restrictions on Chinese imports, the availability and affordability of primary energy substitutes to the policies of consumer countries to switch to more environmentally friendly energy sources. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Faktor lain yang juga turut serta menghambat penguatan harga adalah kemungkinan pembatasan impor China, ketersediaan dan keterjangkauan sumber energi primer substitusi hingga kebijakan negara-negara konsumen untuk beralih ke sumber energi yang lebih ramah lingkungan. TIM RISET CNBC INDONESIA (twg/twg)

Signs of the Chinese Economy Gradually Recovering, Copper

Prices Ready to Climb Finna U. Ulfah

COPPER prices have remained on track for the most recent trading; strengthen the bullish signal along with the sentiment of global economic recovery that is still blowing hard.

Based on Bloomberg data, it was in the green zone for three consecutive trading days. Copper is a metal that is often considered an economic barometer because it is used by many industries, from cars to electronics.

At the close of trading on Monday (6/8/ 2020), the price of three-month copper contracts on the LME exchange parked at US$ 5,699 per ton, up 0.17 percent or 9.5 points. Copper prices managed to reverse the situation, after in mid-March 2020 it dropped to the level of US$ 4,371 per ton.

Though starting 2020, the price of copper managed to touch the highest level at US$ 6,343 per ton. Throughout the year 2020, copper prices still corrected 7.86 percent.

The year to date performance was one of the weakest among other base metals, under aluminum which corrected 12.07 percent and zinc which dropped 9.66 percent.

Sinyal Ekonomi China Berangsur Pulih, Harga Tembaga Siap

Merangkak Naik Finna U. Ulfah

HARGA tembaga terpantau masih berada di jalur kenaikan dalam beberapa perdagangan terakhir; memperkuat sinyal bullish seiring dengan sentimen pemulihan ekonomi global masih berhembus kencang.

Berdasarkan data Bloomberg, berada di zona hijau selama tiga hari perdagangan berturut-turut. Tembaga adalah logam yang kerap dianggap sebagai barometer ekonomi karena digunakan oleh banyak industri, mulai dari mobil hingga elektronik.

Pada penutupan perdagangan Senin (8/6/ 2020), harga tembaga kontrak 3 bulan di bursa LME parkir di level US$5.699 per ton, menguat 0,17 persen atau 9,5 poin. Harga tembaga berhasil membalikkan keadaan, setelah pada medio Maret 2020 anjlok ke level US$4.371 per ton.

Padahal mengawali 2020, harga tembaga berhasil menyentuh level tertinggi di US$6.343 per ton. Sepanjang tahun berjalan 2020, harga tembaga masih terkoreksi 7,86 persen.

Kinerja year to date itu pun menjadi salah satu yang terlemah di antara logam dasar lainnya, di bawah aluminium yang terkoreksi 12,07 persen dan seng yang turun 9,66 persen.

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Capital Futures analyst Wahyu Laksono said that last week copper had strengthened to its highest level since mid-March, supported by signals of economic recovery in China, as the world's largest copper consumer, due to the Covid-19 pandemic.

In addition, the low availability of copper in almost all warehouses of the world, being at the lowest level of global inventory in the last two years is also a strong cushion for copper prices.

"The strong physical demand for copper in China and the amount of tight supply is a positive sentiment for prices in the next few trades," Wahyu said when contacted by Bisnis, Tuesday (06/09/2020).

He explained that the price of copper was very sensitive to the development of the Chinese economy. The positive or negative growth of the Chinese economy tends to push copper prices up or down.

Rising copper prices can also be considered a proxy for the health of the broader commodity market. That is because when copper is in high demand and prices rise, other industrial and agricultural commo-dities will tend to follow.

He also assessed that the rally of copper strengthening could continue throughout June which was also supported by credit impulses and economic stimulus flushing by the Chinese government.

Meanwhile, China's credit impulse is considered as the single best indicator for increased metal demand and is expected to increase further, which strengthens the prospect of copper demand being flat or slightly higher.

Not only China, European governments have also mapped stimulus measures, including support for the electric vehicle and charging infrastructure and 5G networks that can lift copper demand.

Analis Capital Futures Wahyu Laksono menga-takan bahwa pada pekan lalu tembaga berhasil menguat ke level tertingginya sejak pertengahan Maret, didukung oleh sinyal pemulihan ekonomi China, sebagai konsumen tembaga terbesar dunia, akibat pandemi Covid-19.

Selain itu, ketersediaan tembaga yang rendah hampir di seluruh gudang penyimpanan dunia, menjadi di level persediaan global terendah sejak dua tahun terakhir juga menjadi bantalan kuat bagi harga tembaga.

“Permintaan fisik yang kuat untuk tembaga di China dan jumlah pasokan yang ketat adalah sentimen positif untuk harga dalam beberapa perdagangan ke depan,” ujar Wahyu saat dihubungi Bisnis, Selasa (9/6/2020).

Dia menjelaskan bahwa harga tembaga sangat peka terhadap perkembangan eko-nomi China. Tumbuh positif atau negatifnya ekonomi China cenderung mendorong harga tembaga untuk naik atau turun.

Naiknya harga tembaga juga dapat dianggap sebagai proksi untuk kesehatan pasar komo-ditas yang lebih luas. Hal itu dikarenakan ketika tembaga dalam permintaan tinggi dan harga naik, komoditas industri dan pertanian lainnya akan cenderung mengikuti.

Dia pun menilai reli penguatan tembaga bisa berlanjut sepanjang Juni yang juga didukung oleh credit impuls dan penggelontoran stimulus ekonomi oleh pemerintah China.

Adapun, credit impuls China dianggap sebagai indikator tunggal terbaik untuk peningkatan permintaan logam dan diperkirakan akan meningkat lebih lanjut, yang memperkuat prospek permintaan tembaga menjadi bergerak cenderung datar atau sedikit lebih tinggi.

Tidak hanya China, pemerintah Eropa juga telah memetakan langkah stimulus, ter-masuk dukungan untuk sektor kendaraan listrik dan infrastruktur pengisian daya serta jaringan 5G yang dapat mengangkat permintaan tembaga.

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Although various indicators and funda-mentals improved and gave positive sentiment, the prospect of escalating tensions in US and China trade relations could pose a new threat to copper prices.

Therefore, he estimates that the range of copper prices will not be much different compared to the price range in the previous year, or move between US$ 4,300-US$ 7,300 per ton.

"Meanwhile, the level of US$ 5,000-US$ 6,000 per ton can be an area of consolidation as well as gravity which attracts prices if it plummetes or soars," Wahyu said. Editor: Rivki Maulana

Kendati berbagai indikator dan funda-mental membaik dan memberikan sentimen positif, prospek eskalasi kete gangan hubungan dagang AS dan China dapat menjadi ancaman baru bagi harga tembaga.

Oleh karena itu, dia memperkirakan kisaran harga tembaga tidak akan jauh berbeda dibandingkan dengan kisaran harga pada tahun sebelumnya, atau bergerak di antara US$4.300-US$7.300 per ton.

“Sedangkan, level US$5.000-US$6.000 per ton bisa menjadi area konsolidasi sekaligus gravitasi yang menarik harga jika anjlok ataupun melonjak,” papar Wahyu. Editor : Rivki Maulana

Outotec announces big process equipment order for Gold Fields’ Salares Norte project in Chile

Posted by Paul Moore

OUTOTEC has been awarded a contract by Gold Fields for the delivery of process equipment to their Salares Norte greenfield gold project in the Atacama region of northern Chile. The contract value booked in Outotec’s 2020 second quarter order intake is approximately EUR 14 million.

Outotec’s scope of work includes the design and delivery of one 4 MW SAG mill and one 4 MW ball mill as well as five thickeners and one clarifier to be used in different process phases. Grinding mills are provided with the Outotec® Polymer Hydrostatic Shoe Bearing (HSB) system, which is fitted to all new Outotec grinding mills as a standard. The system is designed to maximise grinding mill availability and simplify maintenance. Both thickeners and clarifiers are Outotec’s modular designs that enable minimised site installation time.

Gold Fields is a South African, globally operating gold producer, which is the 100% owner of the Salares Norte project. Once operational, the concentrator plant will have an average annual throughput of 2 Mt of ore. The equipment is planned to be delivered in the second quarter of 2021.

“We are pleased to deliver our energy efficient and advanced process equipment to Gold Fields and support them in building profitable and sustainable operations in the challenging site location in high altitude,” notes Paul Sohlberg, Head of Outotec’s Minerals Processing business.

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China to re-invest in its mining industry — report MINING.com Editor

CHINA could move to re-invest in its mining industry to secure its resource base in the post-covid-19 world, according to a new report from Fitch Solutions.

The pandemic shed light on supply chain weaknesses in general and on international dependence for strategic products. The issue is even more crucial in China, where the metals industry is largely reliant on ore imports.

Fitch says China could revise its 13th Five-Year Plan enacted in 2016, which implemented a strategy of consolidating its primary industries, including mining and moving up the value chain towards smelting of metals.

In late May, China’s steel association and major steelmakers called for an increase in domestic iron ore production as well as greater investment in exploration overseas to ensure supplies.

“Post-covid-19 we believe China could move to re-invest in its mining industry to secure its resource base. The government could either increase exploration and development of minerals, or invest in technology to enable profitable mineral production from previously uneconomic, mineralised rock” said the research company.

“As resource security becomes a pressing need, we expect mining investment under China’s Belt and Road Initiative (BRI) will accelerate in the coming five years,” Fitch says.

China’s structural deficit in key minerals such as iron ore, copper and uranium will sustain the long-held strategy of securing direct access to mines in the developing world, Fitch adds.

In particular, the research company expects the investment appeal of Sub-Saharan Africa (SSA) to Chinese firms will increase as diplomatic relations between China and developed markets deteriorate.

“Diversifying away from Australia will be particularly appealing given that the country accounted for around 40% of China’s total mining imports in 2019. Investment into SSA markets such as the Democratic Republic of the Congo (copper), Zambia (copper), Guinea (iron ore), South Africa (coal) and

Ghana (bauxite) will be one avenue through which China could reduce this reliance.”

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Domestic technology

While China is the largest global producer of primary metals, it still needs to import most of the higher-value secondary metals used in autos and aerospace industries.

“As we expect China’s relations with the West to deteriorate, the country will face an increasing need to secure its technological base by funding more research and development domestically.”

Fitch analysts believe that Chinese overseas investments are now going to face increasing restrictions from regulatory bodies globally, especially in sensitive areas involving technology and resources.

“In the coming years, both state-owned enterprises (SOEs) and privately held firms in China will continue to attempt investing in foreign markets for downstream metal investment opportunities, but we expect to see a concurrent increase in technological investments domestically as the former becomes more difficult.”

Weaker economic prospects in the coming years, however, will pose challenges to China’s investments, Fitch concludes.

Newcrest, Greatland inch closer to Havieron mining lease Salomae Haselgrove

GREATLAND Gold and Newcrest Mining have reached a land usage agreement with a prescribed Aboriginal body corporate for the Havieron joint venture (JV) project in Western Australia.

Newcrest and the Jamukurnu-Yapalikunu Western Desert Lands Aboriginal Corporation (WDLAC) are under an Indigenous land use agreement (ILUA) for the use of native land at and around the Telfer gold mine.

Telfer is about 45 kilometres east of the Havieron project.

Under the agreement, Newcrest will be required to apply for any future JV development activities at the Havieron site.

If the JV wishes to lodge an application for a mining lease at Havieron, Greatland will transfer a 40 per cent legal interest in the registered title to Newcrest, which already holds a 40 per cent beneficial interest.

This means that Newcrest has the right to receive 40 per cent of the benefits from the project, while Greatland will transfer 40 per cent of its right to possess to or use the land to Newcrest.

This will not change the current respective beneficial interests of Newcrest (40 per cent) or Greatland (60 per cent) regarding the JV area.

Once the legal interest is transferred and registered by the Western Australian Department of Mines, Industry Regulation and Safety, the JV may apply for the mining lease.

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Upon the lease being granted, Newcrest will also transfer its legal interest to Greatland, which will re-establish a 100 per cent legal interest in the registered title.

Greatland Gold chief executive Gervaise Heddle said these agreements marked an important step forward in establishing the Havieron project.

“The agreements will assist in the process for a mining lease application, which is expected to be lodged within the next couple of months,” Heddle said.

“Greatland looks forward to further strengthening its relationship with WDLAC and the Martu People of the Central Western Desert region, both as a joint venture participant and through our own exploration activities in the Paterson region.”

The Jamukurnu-Yapalikunu Western Desert Lands Aboriginal Corporation (WDLAC) acts on behalf of the Martu Traditional Owners.

China's coal mining hub Shanxi to shut small mines by end-2020

CHINA’s coal mining hub Shanxi will shut down all small-sized coal mines, with annual

capacity below 600,000 tonnes, in the province by the end of 2020, the provincial authorities said in a statement.

The northern province is China’s second biggest coal mining region by production after Inner Mongolia. It produced 971.09 million tonnes of coal in 2019, accounting for a quarter of the country’s total.

The crackdown is part of Shanxi’s plan to improve safety conditions and to get rid of outdated mines.

Shanxi is home to 954 coal mines, which had combined operational capacity of 994.75 million tonnes as of end-2019.

Of the total, 35 mines had a mining capacity smaller than 600,000 tonnes per annum, with a combined capacity of 14.85 million tonnes, according to Reuters calculation based on a document issued by the Shanxi government in March.

The province is also vowing to cap the number of coal mines at 900 by 2022 and to ban approvals for new coal mining projects smaller than 900,000 tonnes per annum.

It will also improve safety conditions at non-coal mines, metallurgical plants and chemical producers in the province.

Last month, Shanxi said it will halve its coal-washing capacity to 1.8 billion tonnes a year and reduce the number of plants involved in the process to 1,200 by the end of September.

Reporting by Muyu Xu and Tom Daly; editing by David Evans

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Saudi mining investment law to deliver $64bn GDP boost Hebshi Alshammari

THE SAUDI Cabinet on Tuesday approved a new mining investment law that aims to

revolutionize the Kingdom’s mining and metals industry, and boost local and foreign investments in the sector.

Industry and Mineral Resources Minister Bandar Alkhorayef described the law as a strategic initiative that will boost the mining sector’s contribution to gross domestic product by over SR240 billion ($64 billion), reduce imports by SR37 billion, and create 200,000 direct and indirect jobs by 2030.

The new law will facilitate the establishment of a mining fund to provide sustainable finance for the sector as well as support geological survey and exploration programs.

Alkhorayef said the strength of the mining and metals industry depends on good governance and transparency as these factors boost investors’ confidence.

He said the new law deals with these issues effectively and also “aims to achieve sustainability, environment protection, compliance with health and safety regulations.”

The minister said areas near mining projects in the Kingdom will also eventually reap the benefits of the new law.

Consisting of 63 articles, the law will help optimize mineral resources in the Kingdom, which, according to experts, are valued at SR5 trillion.

Alkhorayef said the ministry aims to make the mining sector the third pillar of the Saudi industrial sector by ensuring good governance, clear-cut regulations and a well-defined licensing system.

The new law is in line with the objectives of the National Industrial Development and Logistic Program (NIDLP), which seeks to transform the Kingdom into an industrial power and logistics hub.

NIDLP CEO Sulaiman Al-Mazroua said the new law will benefit other major sectors and create job opportunities for Saudi youth.

“The approval is bound to contribute to the development of the sector and reinforce its pivotal role in bolstering the sector’s competitiveness, creating quality jobs, ability to attract lucrative investments, and enabling further downstream industries,” he said.

Al-Mazroua said the new law is comprehensive and covers all aspects of the mining and metals industry.

It will help transform the sector into the third major pillar of the national economy, he added.

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Gold imports by India tumble for a second month on lockdown By: Bloomberg

GOLD imports by India slumped by about 99% for a second straight month in May, disrupted by restrictions to control the coronavirus outbreak in the world’s second-biggest consuming nation.

Inbound shipments fell to 1.3 tons last month from 105.8 tons a year earlier, according to a person familiar with the data, who asked not to be identified as the information isn’t public.

That comes after shipments plunged to 60 kg in April, the lowest monthly imports in at least a decade. Finance Ministry spokesman Rajesh Malhotra didn’t immediately respond to two calls to his mobile phone during office hours.

India has slowly started easing a nationwide lockdown that has grounded airlines and battered the economy since it was imposed on March 25. Still, jewelers aren’t optimistic of demand picking up before September at the earliest as financial stress remains elevated and local gold prices hover near record highs.

Imports by India have slumped by more than 80% during the first five months of 2020 to 75.46 tons, according to data compiled by Bloomberg.

Titan Co, India’s biggest jeweler by market value, Monday said its income from the jewellery unit fell nearly 6% in the three months ended March, with a significant hit to sales in the second half of March as all stores were shut because of virus-related curbs.

US coal output forecast at 530 mil st in 2020, consumption at 394 million st: EIA

Author: Olivia Kalb, Editor: Richard Rubin

THE US Energy Information Administration forecast coal production of 530 million st in 2020, down 23.2% from the estimated 2019 output of 690 million st, the Energy Information Administration's Short-Term Energy Outlook reported June 9.

The 2020 output projection rose 1.4% from the May outlook, the first month-on-month increase since the start of the year.

For 2021, the EIA projected output of about 549 million st.

Coal exports for 2020 were projected to total 63.6 million st, down 31.5% from last year's exports. The forecast also rose 0.6% month on month.

Coal exports in 2021 are projected to be 70 million st.

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Power sector consumption was forecast to total 351 million st in 2020, down 35% from 2019 consumption and 4.6% below the May report. In 2021, consumption is forecast at 425 million st, down 6.5% from the previous report.

Total US consumption was forecast to be about 394 million st in 2020, down 13.2% from the previous outlook and 33% below 2019. The EIA 2021 forecast was about 469 million st, down 5.9% from May's forecast.

Compared with US coal-powered estimated generation share of 24% in 2019, the June EIA report projected coal generation share of 17% in 2020, down from 19.2% in May, and 20% in 2021, down from the previous projection of 21.3%.

Natural gas generation share for 2020 was projected to be 41%, up from 37.3% in 2019, and the highest since S&P Global Platts began tracking the data in 2013. In 2021, gas generation was projected at 36%.

The EIA forecast gas production at 89.7 Bcf/d for 2020 in June, down from 2019 production of about 92.2 Bcf/d. The 2021 projection was slightly down at 85.4 Bcf/d. Power sector consumption for 2020 was forecast to be 31.5 Bcf/d, up 1.8% from 2019 consumption, and 27.2 Bcf/d in 2021.