IMA-Daily Update Page 1

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Not interested in acquisitions in the near future, MIND ID focuses on working on downstream projects Tak minat akuisisi dalam waktu dekat, MIND ID fokus kerjakan proyek hilirisisasi Merdeka Copper Net Profit Declines 9.4% Laba Bersih Merdeka Copper Turun 9,4% Precious Metals Raising, United Tractors Continues to Hunt Gold Mine Logam Mulia Melesat, United Tractors Terus Buru Tambang Emas Indonesian tin production to see 11% decline in 2020 due to low demand: ITA Nickel and Bauxite Mines Are the Government's Mainstay to Recover the Economy Tambang Nikel dan Bauksit Jadi Andalan Pemerintah Pulihkan Ekonomi Semester II-2020, ZINC is Ready to Spur Mining Production Semester II-2020, ZINC Siap Pacu Produksi Tambang Divestment of Freeport Shares Increases Mimika's APBD Divestasi Saham Freeport Tingkatkan APBD Mimika Increasingly languishing, coal prices continue to fall below US$ 50/ton Kian Merana, Harga Batu Bara Terus Jatuh di Bawah US$ 50/ton Coal Business Has Less Interest in the World's Largest Mining Company, Why? Bisnis Batubara Kurang Lagi Diminati Perusahaan Tambang Terbesar Dunia, Kenapa? Wow! One of the largest diamonds in the world was found, its value is Rp264 billion Wow! Salah Satu Berlian Terbesar di Dunia Ditemukan, Nilainya Rp 264 Miliar

Kontan Neraca CNBC Indonesia The Jakarta Post Dunia Tambang Investor Daily Timika Express CNBC Indonesia Dunia Tambang Suara.com

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Workers block access to giant gold mine Covid-19 hurt mining in Asia and the Americas most Nexa Resources improves safety and ore recovery with Orica’s technology BHP to fund Canada’s Midland nickel exploration Congo makes exceptions to export ban on cobalt, copper and tin India wants all the coking coal & anthracite Russia can deliver

The Star Mining Weekly Global Mining Review Mining.com Mining Technology Russia Today

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Not interested acquisitions in the near future, MIND ID focuses on working on downstream projects Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

SOE mining industry holding, Mining Industry Indonesia (MIND ID) admits that it will put the brakes on acquisitions in the near future. MIND ID and its subsidiaries have chosen to focus on working on a number of value-added or downstream projects.

MIND ID Senior Vice President Corporate Secretary Rendi Witular said, after taking over the majority of PT Freeport Indonesia's shares in December 2018 and completing the divestment process of 20% stake in PT Vale Indonesia Tbk (INCO) last June, MIND ID has no plans to make another acquisition. Both in the form of takeover of shares and acquisition of mining land.

"Nothing, there is no plan (acquisition)," said Rendi to Kontan.co.id, Monday (24/8).

Moreover, MIND ID is not interested in the four companies that will divest this year. Just so you know, there are four mineral companies that will divest their shares to Indonesian entities. The four companies have different portion of share divestment obligations.

First, PT Natarang Mining. The gold commodity company has an obligation to divest shares of 22%. Second, PT Ensbury Kalteng Mining (gold), which has an obligation to divest shares of 44%.

Third, PT Kasongan Bumi Kencana (gold) which has an obligation to divest shares of 19%. Fourth,...

Tak minat akuisisi dalam waktu dekat, MIND ID fokus kerjakan

proyek hilirisasi Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

HOLDING industri pertambangan BUMN, Mining Industry Indonesia (MIND ID) mengaku bakal mengerem akuisisi dalam waktu dekat ini. MIND ID dan anak-anak usahanya memilih fokus untuk mengerjakan sejumlah proyek peningkatan nilai tambah atau hilirisasi.

Senior Vice President Corporate Secretary MIND ID Rendi Witular mengatakan, setelah mengambil alih mayoritas saham PT Freeport Indonesia pada Desember 2018 dan me-rampungkan proses divestasi 20% saham PT Vale Indonesia Tbk (INCO) pada Juni lalu, MIND ID belum berencana kembali melakukan akuisisi. Baik dalam bentuk pengambil alihan saham maupun akuisisi lahan tambang.

"Nggak ada, belum ada rencana (akuisisi)," kata Rendi kepada Kontan.co.id, Senin (24/8).

Terlebih, MIND ID pun tak berminat terhadap empat perusahaan yang bakal melakukan divestasi pada tahun ini. Asal tahu saja, ada empat perusahaan mineral yang bakal mendivestasikan sahamnya kepada entitas Indonesia. Keempat perusahaan tersebut memiliki kewajiban divestasi saham dengan porsi yang berbeda.

Pertama, PT Natarang Mining. Perusahaan komoditas emas itu memiliki kewajiban divestasi saham sebesar 22%. Kedua, PT Ensbury Kalteng Mining (emas) yang memiliki kewajiban divestasi saham sebesar 44%.

Ketiga, PT Kasongan Bumi Kencana (emas) yang memiliki kewajiban divestasi saham sebesar 19%. Keempat,...

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Fourth, PT Galuh Cempaka (diamond commodity) with an obligation to divest its shares of 31%. However, MIND ID is not interested in absorbing the shares of the four mineral companies. "We are not interested and there is no discussion regarding that," said Rendi.

He said that currently his party is more focused on the downstream segment, namely by working on a number of downstream projects so that they can be completed on target. At least, there are six downstream projects that are the priority of MIND ID and its subsidiaries.

First, Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan. The projects of PT Inalum (Persero) and PT Aneka Tambang Tbk. (Antam) is currently working on early work (land clearing) and completing the Engineering Design, and is targeted to be operational in 2023.

Second, the upgrading project or technology improvement of smelter reduction furnace and alumina refinery owned by PT Inalum (Persero). The project, which is targeted to increase the production capacity of up to 30 Ktpa of aluminum, is scheduled for completion in 2022.

Third, the Tanjung Enim Mine Mouth Steam Power Plant (PLTU), South Sumatra. This PLTU is a project of PT Bukit Asam Tbk (PTBA) which has a capacity of 2 x 621.72 MW and is targeted to operate in 2022.

Fourth, Antam's ferronickel (FeNi) smelter project. The smelter construction with a capacity of 13,500 tons Ni has actually reached 97.98%. However, the smelter's operational schedule was delayed because it did not have electricity supply. Fifth, the ausmelt tin smelter project in West Bangka. The PT Timah Tbk project has a capacity of 40,000 tons of crude tin which is targeted to be operational next year.

Keempat, PT Galuh Cempaka (komoditas intan) dengan kewajiban divestasi saham-nya sebesar 31%. Namun, MIND ID tidak tertarik untuk menyerap saham dari keempat perusahaan mineral tersebut. "Kami tidak tertarik dan tidak ada pem-bahasan terkait itu," kata Rendi.

Dia bilang, saat ini pihaknya lebih fokus di segmen hilir yaitu dengan mengerjakan sejumlah proyek hilirisasi supaya bisa rampung sesuai target. Paling tidak, ada enam proyek hilirisasi yang menjadi prioritas MIND ID dan anak-anak usahanya.

Pertama, Smelter Grade Alumina Refinery (SGAR) di Mempawah, Kalimantan Barat. Proyek PT Inalum (Persero) dan PT Aneka Tambang Tbk. (Antam) ini sedang dalam tahap pengerjaan early work (pematangan lahan) dan penyelesaian Engineering Design, dan ditargetkan bisa beroperasi pada tahun 2023.

Kedua, proyek upgrading atau peningkatan teknologi tungku reduksi smelter dan refinery alumina milik PT Inalum (Persero). Proyek yang ditargetkan bisa mening-katkan kapasitas produksi hingga 30 Ktpa aluminium ini dijadwalkan rampung pada tahun 2022.

Ketiga, Pembangkit Listrik Tenaga Uap (PLTU) Mulut Tambang Tanjung Enim, Sumatera Selatan. PLTU ini merupakan proyek PT Bukit Asam Tbk (PTBA) yang memiliki kapasitas 2 x 621,72 MW dan di-targetkan beroperasi pada tahun 2022.

Keempat, proyek smelter feronikel (FeNi) Antam. Konstruksi smelter berkapasitas 13.500 ton Ni ini sebenarnya sudah men-capai 97,98%. Namun, jadwal operasional smelter ini molor lantaran belum memiliki pasokan listrik. Kelima, proyek smelter tin ausmelt di Bangka Barat. Proyek PT Timah Tbk ni memiliki kapasitas 40.000 ton crude tin yang ditargetkan bisa beroperasi tahun depan.

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Sixth, the copper smelter and the Precious Metal Refinery (PMR) owned by PT Freeport Indonesia (PTFI). The US$ 3 billion smelter project is planned to have a PMR facility which is targeted to operate in the fourth quarter of 2022 as well as a copper smelter which is targeted to be completed in the fourth quarter of 2023. "It's all done (the project is carried out according to the stages). We are currently focusing on completing downstream projects," Rendi concluded.

Keenam, smelter tembaga dan Precious

Metal Refinery (PMR) milik PT Freeport

Indonesia (PTFI). Proyek smelter senilai

US$ 3 miliar ini rencananya memiliki

Fasilitas PMR yang ditargetkan bisa ber-

operasi Kuartal IV-2022 serta smelter

tembaga yang ditargetkan rampung

Kuartal IV-2023. "Sudah jalan semua

(pengerjaan proyek sesuai tahapannya).

Kita saat ini fokus ke penyelesaian proyek-

proyek hilirisasi," pungkas Rendi.

Merdeka Copper Net Profit Declines 9.4% By: Ahmad Nabhani

ALTHOUGH the price of gold in the market continues to creep up, this is not in line with the achievement of the financial performance of PT Merdeka Copper Gold Tbk (MDKA). This is because the gold mining issuer recorded a net profit in the first half of 2020 of US$ 38 million or a decrease of 9.4% year on year compared to the same period last year of US$ 42 million. This information was conveyed by the company in its financial report published in Jakarta yesterday.

Meanwhile, the company's revenue reached US$ 199 million, up 3.7% year on year (yoy) from the previous US$ 192 million in the first half of 2019. The increase in revenue was driven by gold sales, which rose 40.1% yoy to US$ 188.1 million. According to the Panin Sekuritas analyst team in their research, MDKA's sales increase was driven by an increase in the gold sales segment. The increase in gold sales was driven by a 24.8% yoy increase in prices to US$ 1,642 per troy ounce and an increase in volume of 12.2% yoy to 115,000 ounces.

Laba Bersih Merdeka Copper Turun 9,4%

Oleh: Ahmad Nabhani

MESKI harga emas di pasar terus merangkak naik, namun hal tersebut tidak seirama dengan pencapaian kinerja keuangan PT Merdeka Copper Gold Tbk (MDKA). Pasalnya, emiten tambang emas ini mencatatkan laba bersih di semester pertama 2020 sebesar US$ 38 juta atau turun 9,4% year on year dibandingkan priode yang sama tahun lalu US$ 42 juta. Informasi tersebut disampaikan perseroan dalam laporan keuangan yang dipublikasi-kan di Jakarta, kemarin.

Sementara pendapatan perseroan mencapai US$199 juta, naik 3,7% year on year (yoy) dari sebelumnya US$192 juta pada semester I/2019. Peningkatan pendapatan didorong penjualan emas yang naik 40,1% yoy menjadi US$188,1 juta. Menurut tim analis Panin Sekuritas dalam risetnya menyebut-kan, peningkatan penjualan MDKA didorong oleh peningkatan segmen penjualan emas. Dimana peningkatan penjualan emas di-dorong peningkatan harga 24,8% yoy men-jadi US$1.642 per troy ounce dan kenaikan volume 12,2% yoy menjadi 115.000 ounces.

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In contrast to sales volume, product volume tended to be flat, namely a slight correction of 0.9% yoy to 109,000 ounces. Meanwhile, copper production fell 67.8% yoy to 2,900 tonnes, while sales decreased 65% yoy to 3,200 tonnes. The decrease was caused by technical problems where there was a steel content which resulted in the heap leach process being not optimal. This resulted in a decline in revenue in the copper segment to US$ 18 million or down 49.7% yoy.

Although overall revenue increased, gross profit margin and operating profit margin decreased. This was due to an increase in cost of goods sold 16.2% yoy to US$ 122 million, and general administrative expenses up 50% to US$ 13 million. For information, this year the company targets gold production of around 165,000 to 185,000 ounces (oz) amid the streng-thening trend of gold prices.

Merdeka Copper Gold Corporate Secretary, Adi Adriansyah Sjoekri, as quoted by Bisnis once said, with the strengthening of world gold prices since the beginning of this year, the company hopes that this will have a positive impact on the company. "The prospect of operating and the company's gold guide in 2020 is 165,000 to 185,000 ( oz) of gold with a fixed supporting cost of around US$ 650 to US$ 750 per net ounce from silver credit," he said.

Currently, the company continues to ramp up production and will focus on continuing to explore and develop resources in three mining areas, namely Tujuh Bukit in East Java, Wetar Island in Southwest Maluku, and Pani in Gorontalo. At the Tujuh Bukit mine, the company is still continuing the exploration process for copper and gold porphyry resources in the Upper High Grade Zone (UHGZ), which is a combination of surface and underground drilling.

Berkebalikan dengan volume penjualan, volume produk cenderung flat, yakni koreksi tipis 0,9% yoy emnjadi 109.000 ounces. Adapun, produksi tembaga anjlok 67,8% yoy menuju 2.900 ton, sedangkan penjualan turun 65% yoy menjadi 3.200 ton. Penurunan disebabkan oleh permasalahan teknis dimana terdapat kandungan baja yang mengakibatkan proses heap leach menjadi tidak optimal. Hal ini menjadikan penurunan pada pendapatan di segmen tembaga men-jadi US$ 18 juta atau turun 49,7% yoy.

Meskipun secara keseluruhan pendapatan meningkat, marjin laba kotor dan marjin laba operasi mengalami penurunan. Hal ini disebabkan peningkatan beb an pokok penjualan 16,2% yoy menjadi US$122 juta, dan beban umum administrasi naik 50% menuju US$13 juta. Sebagai informasi, tahun ini perseroan menargetkan produksi emas sekitar 165.000 hingga 185.000 ounce (oz) di tengah tren penguatan harga emas.

Sekretaris Perusahaan Merdeka Copper Gold, Adi Adriansyah Sjoekri seperti dikutip bisnis pernah mengatakan, dengan menguatnya harga emas dunia sejak awal tahun ini, perseroan berharap hal tersebut dapat mem-bawa dampak positif kepada perseroan. ”Prospek operasi dan panduan emas perseroan pada 2020 adalah 165.000 hingga 185.000 (oz) emas dengan biaya pendukung tetap sekitar US$650 hingga US$750 per ounce bersih yang berasal dari kredit perak,” ujarnya.

Saat ini, perseroan terus menggenjot produksi dan masih akan fokus untuk terus melanjutkan eksplorasi dan pengembangan sumber daya di tiga wilayah tambang, yaitu Tujuh Bukit di Jawa Timur, Pulau Wetar di Maluku Barat Daya, dan Pani di Gorontalo. Di tambang Tujuh Bukit, perseroan masih melanjutkan proses eksplorasi sumberdaya porfiri tembaga dan emas pada Upper High Grade Zone (UHGZ), yang merupakan kombinasi pemboran dari permukaan dan bawah tanah.

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This is in line with the company's efforts to increase the production capacity of the Tujuh Bukit mine from 4 million tons per year to 8 million tons. In addition to other gold mines, the company has entered into a joint agreement with PT J Resources Asia Pasifik Tbk. (PSAB) to optimize the mineral content in the Pani Block.

Hal tersebut pun sejalan dengan langkah perseroan yang berupaya untuk meningkatkan kapasitas produksi tambang Tujuh Bukit dari semula sebesar 4 juta ton per tahun menjadi 8 juta ton. Selain itu untuk tambang emas lainnya, perseroan telah melakukan join agreement dengan PT J Resources Asia Pasifik Tbk. (PSAB) untuk mengoptimalkan kandungan mineral

yang berada di Blok Pani.

Precious Metals Raising, United Tractors Continues to Hunt Gold

Mine Monica Wareza, CNBC Indonesia

THE HEAVY equipment issuer of the Astra

Group, PT United Tractors Tbk (UNTR), through its subsidiary Agincourt Resources, continues to eye new gold mines to be acquired. The increase in gold prices has attracted the company to expand its gold mining business.

President Director of United Tractors Frans Kesuma during a virtual public expose held by the Indonesia Stock Exchange (IDX) today, said United Tractor continues to look for new gold mines while completing the gold mine acquisition which is in process.

"The process for the acquisition, from due diligence to agreement, will take time. It depends on the type of ore we test in the laboratory," said Frans, in Jakarta, Tuesday (25/8/2020).

However, Frans did not mention the name of the mine or company to be acquired. This pandemic has delayed the acquisition and search for new gold mines.

Logam Mulia Melesat, United Tractors Terus Buru Tambang

Emas Monica Wareza, CNBC Indonesia

EMITEN alat berat Grup Astra, PT United Tractors Tbk (UNTR), melalui anak usaha-nya Agincourt Resources, terus mengincar tambang emas baru untuk diakuisisi. Kenaikan harga emas menjadi daya tarik bagi perseroan untuk memperbesar bisnis tambang emas.

Direktur Utama United Tractors Frans Kesuma saat paparan publik virtual yang diselenggarakan Bursa Efek Indonesia (BEI) hari ini, mengatakan United Tractor terus mencari tambang emas baru sambil menyelesaikan akuisisi tambang emas yang sedang dalam proses.

"Proses untuk akuisisi, mulai dari due diligence sampai kesepakatan butuh waktu. Tergantung jenis ore yang kita uji di laboratorium," kata Frans, di Jakarta, Selasa (25/8/2020).

Namun Frans tidak menyebutkan nama tambang atau perusahaan yang akan diakuisisi. Adanya pandemi ini, membuat proses akuisisi dan pencarian tambang emas baru mengalami keterlambatan.

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"The problem is because it is difficult to send a team to check the location to the mine," said Frans.

United Tractor has a gold mining business segment run by PT Agincourt Resources, which operates the Martabe gold mine in South Tapanuli, North Sumatra.

As of June 2020, total sales of the gold equivalent from Martabe were 186 thousand ounces, down 4% from 195 thousand ounces.

Martabe posted a net income of Rp 4 trillion in the period of June 2020. This value increased by 11% from Rp 3.6 trillion in the same period in 2019.

The average selling price of Martabe gold was US$ 1,498/try ounce, compared to US$ 1,315/troy ounce in the same period last year.

The price of gold in the world spot market throughout 2020 continued to increase, and had reached a record high at the level of US$ 2,072.27/troy ounce, to be precise on August 7, 2020. (hps/hps)

"Kendala karena sulit untuk mengirim tim untuk mengecek lokasi ke tambang," kata Frans.

United Tractor memiliki segmen usaha pertambangan emas yang dijalankan PT Agincourt Resources, yang mengoperasikan tambang emas Martabe di Tapanuli Selatan, Sumatera Utara.

Sampai dengan bulan Juni 2020, total penjualan setara emas dari Martabe adalah sebanyak 186 ribu ons atau turun 4% dari 195 ribu ons.

Martabe membukukan pendapatan bersih sebesar Rp 4 triliun pada periode Juni 2020. Nilai tersebut meningkat 11% dari Rp 3,6 triliun pada periode yang sama tahun 2019.

Rata-rata harga jual emas Martabe sebesar US$ 1.498/try ons, dibandingkan US$1.315/ troy ons pada periode yang sama tahun lalu.

Harga emas di pasar spot dunia sepanjang 2020 terus mengalami kenaikan, dan sempat mencapai rekor tertinggi pada level US$ 2.072,27/troy ons, tepatnya pada 7 Agustus 2020. (hps/hps)

Indonesian tin production to see 11% decline in 2020 due to low demand: ITA

Norman Harsono | The Jakarta Post

INDONESIA, the world’s second-largest tin producer, is expected to see a double-digit decline in refined tin production this year, amid a slump in global demand, according to the International Tin Association (ITA).

The ITA expected refined tin production to reach 69,000 tons this year, down 11.5 percent from 78,000 tons last year. The lower production is mainly driven by production cuts from state-owned PT Timah, the world’s top tin producer, according to ITA market analyst James Willoughby in an email interview with The Jakarta Post.

Timah’s output sank 26.2 percent year-on-year (yoy) to 27,833 tons in the Jan-June period this year, the company stated in a press statement published on the Indonesia Stock Exchange (IDX) website on July 30.

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The company also announced the plan to cut its monthly output by between 20 and 30 percent in March, in response to weak global demand for tin, a metal mostly used for soldering, as production and consumption of everyday electronics slowed as a result of the COVID-19 pandemic.

“We’re expecting solder to be particularly hard-hit by the coronavirus,” said Willoughby via email on Aug 13.

An uptick in demand for tinned goods earlier this year, triggered by panic buying of groceries, was insufficient to replace the lower soldering demand.

Indonesia’s refined tin exports had also fallen around 4 percent so far this year, down from 67,500 tons last year, said Willoughby, adding that the outlook remained weak.

“Geographically, we’ve been seeing more Indonesian tin going to China this year. That’s partly due to generally higher prices in China this year, and also due to greater demand in China than the rest of the world,” said Willoughby.

Global tin prices dropped to a four-year low of US$13,385 per tonne on March 24, but have since rebounded to $17,580 per tonne as of Aug. 21, based on the international benchmark London Metal Exchange (LME) prices.

The ITA expects tin prices to average $17,000 per tonne this year but this figure remains lower than the average $18,608 per tonne last year.

“In Indonesia, unfortunately, 95 percent of tin produced is exported, so when tin prices drop drastically, that 95 percent export revenue will be eroded,” said Institute for Development of Economics and Finance (Indef) researcher Abra Talattov on Aug. 21.

Timah, the country’s largest tin miner, exports most of its production to Singapore, South Korea, China, the United States and India, which made up 73 percent of its total exports in the first half of the year.

“Most of these countries had an economic contraction in the first half,” said Abra. “Only China had positive growth, but at a slower rate.”

Singapore’s gross domestic product (GDP) fell a record 13.2 percent year-on-year (yoy) in the second quarter, while the economy also fell 42.9 percent from the previous three months on an annualized and seasonally adjusted basis.

Abra suggested that Indonesian effort to develop its downstream mining industries would minimize the country’s exposure to such global market vulnerability.

“Going forward, we will more carefully calculate production [targets], taking into account tin price trends,” Timah corporate secretary Abullah Umar told the Post via text message on Aug. 19.

Timah booked a Rp 390 billion ($26.4 million) net loss in the Jan-June period this year, a stark contrast to the Rp 205.3 billion net profit it booked in the same period last year.

The company had cut costs by 13.5 percent yoy to Rp 7.73 trillion but it was not enough to cover slumping revenue, which fell by a steeper 18.5 percent to Rp 7.98 trillion, amid weak tin demand and prices.

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Timah’s financial woes would limit its ability to uphold investment plans and to explore new tin reserves, said Indonesian Mining Experts Association (Perhapi) chairman Rizal Kasli.

The company is currently developing a multimillion dollar tin smelter in Bangka Belitung as part of the government’s downstreaming plan. Timah had 327,520 tons worth of proven tin reserves last year and 1.04 million tons of potential reserves, also called resources.

“Those reserves can last for four to six years of production. Exploration is needed to convert more resources into reserves and extend the company’s operational lifespan,” he said.

Nickel and Bauxite Mines Are the Government's Mainstay to

Recover the Economy Author: Edo Fernando, Editor: Faris

Primayudha

THE GOVERNMENT has set a target for

Indonesia's economic growth in 2021, which must be at the level of 4.4 to 5.5 percent. As Chairman of the National Economic Recovery and Covid19 Management Team, Erick Thohir is optimistic that this target can be achieved. According to him, Indonesia has strong capital in the form of resources that can restore economic conditions due to a pandemic outbreak.

Erick Thohir said there were two factors that could support Indonesia's economic recovery with this target. First, namely Indonesia which has a large population and is supported by abundant natural resources.

Erick Thohir's statement is in line with what was conveyed by many world institutions which said that the Indonesian economy in the next year would experience massive growth. Like the World Bank,...

Tambang Nikel dan Bauksit Jadi Andalan Pemerintah Pulihkan

Ekonomi Penulis : Edo Fernando, Editor : Faris

Primayudha

PEMERINTAH telah mematok target per-

tumbuhan ekonomi Indonesia pada tahun 2021, harus berada pada angka 4,4 sampai 5,5 persen. Selaku Ketua Tim Pemulihan Ekonomi Nasional dan Penanganan Covid19, Erick Thohir optimis target itu bisa tercapai. Menurutnya, Indonesia

memiliki modal kuat berupa sumber daya yang bisa memulihkan kondisi ekonomi akibat wabah pandemi.

Erick Thohir mengatakan ada dua faktor

yang mampu mendukung pemulihan ekonomi Indonesia dengan target tersebut. Pertama yakni Indonesia yang memiliki populasi yang besar dan ditunjang oleh sumber daya alam yang melimpah.

Pernyataan Erick Thohir tersebut, senada dengan apa yang disampaikan oleh banyak lembaga dunia yang mengatakan ekonomi Indonesia di tahun depan akan mengalami pertumbuhan yang sangat masif. Seperti

Bank Dunia,...

IMA-Daily Update Page 11

Like the World Bank, which said that Indonesia's economy would grow by 4.8 percent next year. Then there is also the IMF which predicts Indonesia's economic growth rate to reach 6.1 percent.

Indonesia has been considered capable of adapting quickly to the changing world business climate. If in the past Indonesia could make big profits with palm oil commodities, now Indonesian mining will contribute quite a lot of income because of the large reserves of nickel, bauxite and a number of other minerals that can provide added value.

According to Erick, mining is considered to have saved Indonesia from the brink of recession, as experienced by neighboring countries. As is well known, Singapore has entered into an economic recession because so far it has only relied on income from the tourism sector. And when the lockdown policy was implemented, the wheels of their economy were really disrupted.

If the decline in economic growth in Asian countries is at minus 10 to a dozen percent, Indonesia in the last quarterly report only experienced a decline of 5.3 percent. Of course this also cannot be separated from the government's policy of wanting the mining sector for production in order to meet export demand and domestic consumption.

Seperti Bank Dunia, yang menyebut ekonomi Indonesia bakal tumbuh sebesar 4,8 persen di tahun depan. Kemudian juga ada IMF yang memprediksi angka pertumbuhan ekonomi Indonesia mencapai 6,1 persen.

Indonesia selama ini dianggap mampu beradaptasi dengan cepat, atas perubahan iklim bisnis dunia. Jika dulu Indonesia bisa untung besar dengan komoditas kelapa sawit, kini pertambangan Indonesia akan menyumbang pendapatan cukup besar karena banyaknya cadangan nikel, bauksit dan sejumlah mineral lainnya yang bisa memberikan nilai tambah.

Pertambangan menurut Erick dianggap telah menyelamatkan Indonesia dari jurang resesi, seperti yang dialami oleh negara tetangga. Seperti yang sudah diketahui, Singapura telah masuk dalam resesi ekonomi karena selama ini hanya mengandalkan pendapatan dari sektor pariwisata. Dan ketika kebijakan lockdown diterapkan, roda perekonomian mereka benar-benar terganggu.

Jika penurunan pertumbuhan ekonomi negara Asia berada di angka minus 10 hingga belasan persen, Indonesia pada laporan kuartal terakhir hanya mengalami penu-runan sebesar 5,3 persen saja. Tentu hal ini juga tak lepas dari kebijakan pemerintah yang tetap menginginkan sektor tambang untuk produksi, guna memenuhi permintaan ekspor dan konsumsi dalam negeri.

Semester II-2020, ZINC is Ready to Spur Mining Production

ENTERING a new normal phase set by the government, PT Kapuas Prima Coal Tbk (ZINC), an issuer engaged in base metal mining in Indonesia, is ready to spur production of...

Semester II-2020, ZINC Siap Pacu Produksi Tambang

MEMASUKI fase kenormalan baru yang ditetapkan pemerintah, PT Kapuas Prima Coal Tbk (ZINC), Emiten yang bergerak di bidang pertambangan logam dasar (base metal) di Indonesia, siap memacu produksi...

IMA-Daily Update Page 12

is ready to spur production of base metal consisting of Lead (Pb) concentrate, Zinc concentrate (Zn ) and Silver (Ag).

As of July 2020, ZINC has produced around 5,741 tons of Lead concentrate and 19,238 zinc concentrate and 427 tons of silver, with a sales value of Rp 301.4 billion.

ZINC Director Hendra Susanto William said, during the second quarter of this year, ZINC mining production experienced operational and transportation restrictions due to the impact of Covid-19, but along with the start of the new normal phase, the Company is optimistic that the sales target will be strived to achieve the adjusted target this year. although the record in the first half of this year has not reached 50% of the total sales target.

"Even with the Covid pandemic, the first semester is always slower than the second semester due to many national holidays," he said in his statement Tuesday (25/8/2020).

Apart from boosting productivity, the Company also continues to be committed to the sustainability of the Company's business in the construction of Lead and Zinc smelters. This is to provide added value to the Company's mineral products, as well as to support the downstream program that is being pushed by the Government.

It is planned that the Company's refining smelter project in Pangkalan Bun will have a maximum production capacity of 40,000 tons of concentrate per year to produce 20,000 tons of lead metal per year for the Lead (Pb) smelter and 30,000 tons of ingots per year for the Zinc (Zn) smelter and is targeted. can operate early next year for Lead (Pb) smelters and early 2022 for Zinc (Zn) smelters.

siap memacu produksi logam dasar yang terdiri dari konsentrat Timbal (Pb), konsen-trat Seng (Zn) dan Perak (Ag).

Hingga bulan Juli 2020, ZINC sudah mem-produksi sekitar 5.741 ton konsentrat Timbal dan 19.238 konsentrat Seng dan 427 ton perak, dengan nilai penjualan sebesar Rp301,4 miliar.

Direktur ZINC Hendra Susanto William mengatakan, sepanjang kuartal II tahun ini, produksi tambang ZINC mengalami pem-batasan operasional dan transportasi akibat dampak Covid-19, namun seiring dengan dimulainya fase new normal, Perseroan optimistis target penjualan akan diupayakan agar mencapai target yang telah disesuaikan pada tahun ini meskipun catatan pada paruh pertama tahun ini belum mencapai 50% dari total target penjualan.

“Walaupun dengan adanya pandemi Covid, semester pertama memang selalu lebih pelan dibandingkan dengan semester kedua dikarenakan banyak libur nasional,” katanya dalam keterangannya Selasa (25/8/2020).

Selain memacu produktivitas, Perseroan juga terus berkomitmen untuk keberlan-jutan usaha Perseroan dalam pembangunan smelter Timbal dan Seng. Hal ini guna memberi nilai tambah bagi produk-produk mineral Perseroan, sekaligus mendukung program hilirisasi yang tengah dipacu oleh Pemerintah.

Rencananya proyek smelter pemurnian Perseroan yang berada di Pangkalan Bun, nantinya akan memiliki kapasitas produksi maksimal 40.000 ton konsentrat per tahun untuk memproduksi 20.000 ton metal timbal per tahun untuk smelter Timbal (Pb) dan 30.000 ton ingot per tahun untuk smelter Seng (Zn) dan ditargetkan dapat beroperasi awal tahun depan untuk smelter Timbal (Pb) dan awal tahun 2022 untuk smelter Seng (Zn).

IMA-Daily Update Page 13

Hendra said, after the implementation of

the new normal, ZINC continues to spur on

to continue the Company's strategic

projects, such as the lead refining smelter

project and zinc refining ZINC.

"To support this target, ZINC has also

signed a 2.5 MW Electric Power Sale and

Purchase Agreement (SPJBTL) with PLN in

the middle of this month to guarantee the

operation of the Lead (Pb) smelter, while

for the Zinc (Zn) smelter with a power of

35 MW. still in the next stage of discussion

with PLN," he explained.

In addition to focusing on current activities

and investments, ZINC also continues to

evaluate the Company's performance

improvements for this year. In Semester I-

2020, ZINC recorded sales of IDR 301.4

billion.

Meanwhile, the profit for the year was

recorded at Rp 41.9 billion. For the record,

in the first quarter of 2020, ZINC posted

sales of Rp166.7 billion, while ZINC's net

profit was recorded at Rp15.9 billion.

Hendra added, during the first semester of

2020 the Company experienced a decline

in performance when compared to the

achievements in the same semester the

previous year. This condition is felt by

almost all mining companies in Indonesia.

"This is of course due to the decline in

commodity prices and the limited sales

made following the lockdown policy

implemented in almost all parts of the

world. Therefore, to help improve the

Company's performance, we are also trying

to make efficiency by reducing various

expenses and expenses," he concluded.

Editor: Gora Kunjana

Hendra mengatakan, pasca pemberlakuan new normal, ZINC terus memacu untuk meneruskan proyek-proyek strategis Perseroan, seperti proyek smelter pemurnian Timbal dan pemurnian Seng ZINC.

“Untuk mendukung target tersebut ZINC juga telah menandatangi Surat Perjanjian Jual Beli Tenaga Listrik (SPJBTL) dengan PLN sebesar 2,5 MW pada pertengahan bulan ini untuk menjamin pengoperasian smelter Timbal (Pb), sedangkan untuk smelter Seng (Zn) dengan daya sebesar 35 MW masih dalam pembahasan tahap berikutnya dengan pihak PLN,” jelasnya.

Selain fokus pada kegiatan dan investasi yang ada saat in, ZINC juga senantiasa mengevaluasi perbaikan kinerja Perseroan untuk tahun ini. Pada Semester I-2020 ini, ZINC mencatat penjualan sebesar Rp301,4 miliar.

Sementara laba tahun berjalan tercatat sebesar Rp41,9 miliar. Sebagai catatan, pada kuartal pertama tahun 2020, ZINC membukukan penjualan sebesar Rp166,7 miliar, sementara laba bersih ZINC tercatat Rp15,9 miliar.

Hendra menambahkan, sepanjang semester I-2020 Perseroan mengalami penurunan kinerja bila dibandingkan dengan capaian di semester yang sama tahun sebelumnya. Kondisi ini dirasakan oleh hampir semua perusahaan tambang di Indonesia.

“Hal ini tentu disebabkan oleh menurun-nya harga komoditas terkait dan terbatas-nya penjualan yang dilakukan menyusul kebijakan lockdown yang dilakukan di hampir seluruh dunia. Oleh karena itu, untuk membantu perbaikan kinerja Perseroan, kami juga berusaha melakukan efisiensi dengan mengurangi berbagai pengeluaran dan beban,” pungkasnya. Editor : Gora Kunjana

IMA-Daily Update Page 14

Divestment of Freeport Shares Increases Mimika's APBD

By Divine Revelation

THE DIVESTMENT of PT Freeport Indonesia's majority shares by Indonesia turned out to have a major impact on state revenues, including increasing Mimika's Regional Revenue and Expenditure Budget (APBD) from 2021 to 2041.

Because in the divestment clause, the status of the permit from PTFI in Indonesia changed from a Contract of Work to a Special Mining Business License (IUPK).

Mimika Regent Eltinus Omaleng said that the share ownership portion owned by the government through Inalum and also the Papuan regional government is also increasing.

So that the income that is paid in through dividends also increases.

Likewise, the revenue paid to the Mimika Regency Government is certain to increase drastically. He conveyed his appreciation and positive spirit to the media crew at the SP3 State House Hall, Monday (24/8) to the heads of Regional Apparatus Organizations (OPD), not to be worried or even afraid.

Because, starting in 2021, Mimika's APBD will continue to increase from previous years. The increase in APBD starting next year is not without reason, because the Mimika Regency Government will receive a dividend of 2.5 percent from PT Freeport Indonesia.

Following this, in December 2021, the Mimika Regency Government will also receive a 7 percent profit from the 51.2 percent divestment of PT Freeport Indonesia's shares.

Divestasi Saham Freeport Tingkatkan APBD Mimika

By Wahyu Ilahi

DIVESTASI saham mayoritas PT Freeport Indonesia oleh Indonesia ternyata mem-berikan dampak besar bagi penerimaan Negara termasuk meningkatkan Anggaran Pendapatan Belanja Daerah (APBD) Mimika mulai tahun 2021 hingga 2041 nanti.

Karena dalam klausul divestasi itu, status izin dari PTFI di Indonesia berubah dari Kontrak Karya menjadi Izin Usaha Pertam-bangan Khusus (IUPK).

Bupati Mimika, Eltinus Omaleng, mengata-kan, porsi kepemilikan saham yang dimiliki oleh pemerintah lewat Inalum dan juga pemerintah daerah Papua juga semakin meningkat.

Sehingga secara pendapatan yang disetor lewat dividen juga meningkat.

Begitu pun juga pendapatan yang disetor kepada Pemerintah Kabupaten Mimika di-pastikan naik drastis.

Kepada awak media di Pendopo Rumah Negara SP3, Senin (24/8), apresiasi dan spirit positif disampaikannya kepada para kepala Organisasi Perangkat Daerah (OPD) tidak perlu khawatir bahkan takut.

Sebab, mulai 2021 APBD Mimika akan terus meningkat dari tahun-tahun sebelumnya.

Kenaikan APBD mulai terhitung tahun depan bukan tanpa alasan, karena Pemkab Mimika akan menerima deviden sebesar 2,5 persen dari PT Freeport Indonesia.

Menyusul, pada Desember 2021, Pemkab Mimika juga akan menerima keuntungan 7 persen dari 51,2 persen divestasi saham PT Freeport Indonesia.

IMA-Daily Update Page 15

"Papua gets 10 percent of the 51 percent stake in Freeport. Where 10 percent of the shares are divided for the Mimika Govern-ment as the producing region of 7 percent and the remaining 3 percent is allocated for the Papua Provincial Government," explained the person number one in Mimika.

It was also explained that the profits from the divestment of PT Freeport Indonesia's shares will only start next year, because there had been a previous mistake in writing down the 7 percent share ownership for Mimika and the surrounding area.

“I hanged this matter for almost two years because I didn't want any free shares. This seven percent stake is purely owned by the Mimika Regency Government, so I ask that the word surrounding it be removed,” said the Regent.

Meanwhile, the elimination of the word surrounding is closely related to the formation of a Regional Company (Perusda), in which it has proposed the names of commissioners and directors of Perusda who will later manage the shares.

This Perusda, which was established and domiciled in Jayapura, Papua Province, will run with initial capital disbursed by the Mimika Regency Government.

"For the start of the Perusda, we will support the authorized capital of Rp. 20 billion and this is bigger than the Papua Provincial Government," he explained.

To note, the assumption of the Mimika's ABPD in 2020 is Rp4.3 tri ll ion, but refocusing and reallocation were carried out due to the Covid-19 pandemic so that it decreased or was corrected to Rp3.8 trillion.

Responding to the condition of budget absorption with physical activities resulting from changes in the APBD value, the Regent conducted monitoring and evaluation (Monev) with the OPD leadership.

“Papua dapat 10 persen dari 51 persen saham Freeport. Dimana 10 persen saham itu dibagi untuk Pemerintah Mimika sebagai daerah penghasil 7 persen dan sisanya 3 persen jatah Pemeirntah Provinsi Papua,” jelas orang nomor satu di Mimika.

Dijelaskan pula, keuntungan dari divestasi saham PT Freeport Indonesia baru mulai tahun depan, karena telah terjadi kesalahan sebelumnya pada penulisan kepemilikan saham 7 persen untuk Mimika dan daerah sekitarnya.

“Soal ini saya gantung hampir dua tahun karena saya tidak mau ada saham cuma-cuma. Tujuh persen ini saham murni milik Pemerintah Kabupaten Mimika, jadi saya minta kata sekitarnya itu dihapus,” tegas Bupati.

Adapun, penghapusan kata sekitarnya, terkait erat dengan pembentukan Perusahaan Daerah (Perusda), dimana pihaknya telah mengajukan nama komi-saris dan direktur Perusda yang akan mengelola saham nanti.

Perusda yang didirikan dan berkedudukan di Jayapura, Provinsi Papua, ini akan berjalan dengan modal awal dikucurkan oleh Pemerintah Kabupaten Mimika.

“Untuk awal berjalannya Perusda, kami akan support modal dasar Rp20 miliar dan ini lebih besar dari Pemerintah Provinsi Papua,” jelasnya.

Untuk diketahui, asumsi ABPD Mimika tahun 2020 sebesar Rp4,3 triliun, namun dilakukan refocusing dan realokasi akibat pandemi Covid-19 sehingga turun atau terkoreksi menjadi Rp3,8 triliun.

Menyikapi kondisi penyerapan anggaran dengan fisik kegiatan dari perubahan nilai APBD, maka Bupati melakukan monitoring dan evaluasi (Monev) bersama pimpinan OPD.

IMA-Daily Update Page 16

Monev is intended to ensure that program activities have and have not yet run according to the target in 2020.

So that later activities that cannot be carried out this year will be proposed again through the Mimika RKPD Musrenbang, so that they can be accommodated in 2021," he said.

Author: Maurits, Editor: Linda

Monev dimaksud untuk memastikan program kegiatan yang sudah dan belum berjalan sesuai target di tahun 2020.

Sehingga nanti kegiatan yang tidak bisa dikerjakan tahun ini akan diusulkan kembali melalui Musrenbang RKPD Mimika, agar bias diakomodir pada 2021,” tandasnya. Penulis : Maurits, Editor : Linda

Increasingly languishing, coal prices continue to fall below

US$50/ton Tirta Citradi, CNBC Indonesia

THE NEWCASTLE thermal coal price

continues its downward trend. Now coal

prices are at their lowest level in more

than four years.

At the close of trading Monday (24/8/

2020), the price of Newcastle thermal coal

for contracts that are actively traded

weakened 1.41% to US$ 48.9/ton. Coal

prices have been below US$ 50/ton in the

last two trading days.

The factor that triggered the collapse in

coal prices was weak market funda-

mentals. Demand for coal is still not fully

recovered, in fact it is in danger of falling

for this year.

Referring to Eurostat data, the European

Union (EU) imported a total of 3.3 million

tonnes of thermal coal net in June,

generally in line with May and down 2.3

million tonnes the previous year.

Kian Merana, Harga Batu Bara Terus Jatuh di Bawah

US$50/ton Tirta Citradi, CNBC Indonesia

HARGA batu bara termal Newcastle masih terus melanjutkan tren penurunannya. Kini harga batu bara berada di level teren-dahnya dalam lebih dari empat tahun terakhir.

Pada penutupan perdagangan Senin (24/8/2020), harga batu bara termal Newcastle untuk kontrak yang aktif di-transaksikan melemah 1,41% ke US$ 48,9/ton. Harga batu bara sudah berada di bawah US$ 50/ton dalam dua hari perda-gangan terakhir.

Faktor pemicu ambrolnya harga batu bara adalah fundamental pasar yang lemah. Permintaan terhadap batu bara masih belum pulih benar, malahan terancam anjlok untuk tahun ini.

Mengacu pada data Eurostat, Uni Eropa (UE) mengimpor total 3,3 juta ton batu bara termal secara neto di bulan Juni, secara umum sejalan dengan bulan Mei dan turun 2,3 juta ton pada tahun sebelumnya.

IMA-Daily Update Page 17

Argus Media reported total first-half imports to the EU and UK to be 23.1 million, which was 51% lower on the previous year and the lowest level since January-June since 1988.

EU import demand has been suppressed by a continuing decline in coal-fired power plants amid the increasing market share of electricity consumption from renewable energy sources and competition from gas over the past two years.

EU-27 coal imports fell this year by an average of 3.9 million tonnes / month in January-July at 3.7 million tonnes/month. Last year, revenue from August to December averaged at 5.9 million tonnes/month.

The decline in overall EU-27 imports this year was driven by Germany, which accounted for a third of the total reduction of 23.1 million tonnes. Spain, Portugal and Poland contributed 4.1 million tonnes, 1.9 million tonnes and 1 million tonnes respectively.

Meanwhile in the Asia Pacific region, import demand for coal's biggest duo of coal consumers, namely China and India, is still weak. Especially with the import quota to encourage domestic coal consumption amid the Covid-19 pandemic.

In addition, the deteriorating Australia-China relationship has also become a negative sentiment for coal prices considering that this primary energy source is one of the leading commodities of the Kangaroo Country.

After targeting barley, China is now reportedly starting to target alcoholic beverage products from Australia. The deteriorating trade relations between the two have made the market increasingly anxious, especially over the fate of seaborne coal imports in the Asia Pacific region. RESEARCH TEAM CNBC INDONESIA (twg/twg)

Argus Media melaporkan total impor paruh pertama ke UE dan Inggris menjadi 23.1juta, yang mana lebih rendah 51% pada tahun sebelumnya dan menjadi level terendah sejak Januari-Juni sejak 1988.

Permintaan impor UE telah ditekan oleh penurunan berkelanjutan dalam pembangkit listrik tenaga batu bara di tengah me-ningkatnya pangsa pasar konsumsi listrik dari sumber energi terbarukan dan persaingan dari gas selama dua tahun terakhir.

Impor bersih batu bara UE-27 turun pada tahun ini dengan rata-rata 3,9 juta ton/bulan di Januari-Juli di 3,7 juta ton/bulan. Tahun lalu, penerimaan Agustus-Desember rata-rata di 5,9 juta ton/bulan.

Penurunan keseluruhan impor UE-27 tahun ini didorong oleh Jerman, yang menyumbang sepertiga dari total pengurangan 23,1 juta ton. Spanyol, Portugal dan Polandia masing-masing menyumbang 4,1 juta ton, 1,9 juta ton dan 1 juta ton penurunan.

Sementara itu di kawasan Asia Pasifik, permintaan impor duo konsumen terbesar batu bara yaitu China dan India juga masih lemah. Apalagi dengan adanya kuota impor untuk mendorong konsumsi batu bara domestik di tengah pandemi Covid-19.

Ditambah lagi hubungan Australia-China yang memburuk juga menjadi sentimen negatif untuk harga batu bara mengingat sumber energi primer ini merupakan salah satu komoditas unggulan Negeri Kanguru.

Setelah menarget barley, kini China di-kabarkan mulai menarget produk minuman beralkohol asal Australia. Hubungan dagang keduanya yang memburuk membuat pasar semakin cemas terutama terhadap nasib impor batu bara lintas laut (seaborne) di kawasan Asia Pasifik. TIM RISET CNBC

INDONESIA (twg/twg)

IMA-Daily Update Page 18

Coal Business Has Less Interest in the World's Largest Mining

Company, Why? Author: Dimas Chaidir Adinugroho, Editor:

Faris Primayudha

THE COAL business is now increasingly depressed. The large number of coal importers from various parts of the world has also begun to cut the demand needed in the industry. In addition, the number of government programs from various countries that use alternative and renewable energy that is more environ-mentally friendly and cheaper to produce is increasing over time. This has made several mining companies engaged in coal production begin to reduce production and some have switched to the production of other more potential minerals.

One of the largest mining companies in the world, BHP (BHPLF) Australia plans to cut its coal business. The Melbourne, Australia-based mining company will try to sell its 80 percent stake in the BHP Mitsui Coal joint venture. The subsidiary owns two low-grade coal mines in Queensland. Low quality coal itself is used for steel making. In addition, the company with a market capitalization of more than US$ 100 billion will also sell thermal coal assets in Australia and Colombia.

Reporting from cnnindonesia.com, BHP CEO Mike Henry said the company wants to increase its copper and nickel extraction business while divesting mature oil and gas assets. The plan describes the company's efforts to create an energy mix different from the current one. In addition,...

Bisnis Batubara Kurang Lagi Diminati Perusahaan Tambang

Terbesar Dunia, Kenapa? Penulis : Dimas Chaidir Adinugroho, Editor

: Faris Primayudha

BISNIS batubara kini kian tertekan. Banyak-nya konsumen importer batubara dari ber-bagai penjuru dunia juga mulai memangkas permintaan yang dibutuhkan dalam industri-nya. Selain itu, banyaknya program-program pemerintah dari berbagai Negara yang melakukan pemanfaatan energi alternatif dan energi baru terbarukan yang lebih ramah lingkungan dan murah untuk diproduksi kian meningkat seiring waktunya. Hal ini membuat beberapa perusahaan tambang yang bergerak pada produksi batubara mulai menurunkan produksi dan sebagian beralih ke produksi bahan galian lain yang lebih potensial.

Salah satu perusahaan tambang terbesar di dunia, BHP (BHPLF) Australia berencana me-mangkas bisnis batubara. Perusahaan tambang yang berbasis di Melbourne, Australia itu akan mencoba untuk menjual 80 persen sahamnya pada perusahaan patungan BHP Mitsui Coal. Anak usahanya itu memiliki dua tambang batubara dengan kualitas rendah di Queensland. Batubara dengan kualitas rendah sendiri digunakan untuk pembuatan baja. Selain itu, perusahaan dengan kapitalisasi pasar di atas US$ 100 miliar itu juga akan menjual aset batubara termal di Australia dan Kolombia.

Dilansir dari cnnindonesia.com, CEO BHP Mike Henry menyatakan perusahaan ingin meningkatkan bisnis ekstraksi tembaga dan nikelnya sembari mendivestasikan aset minyak dan gas yang sudah matang. Rencana itu menggambarkan upaya perusahaan untuk menciptakan bauran energi yang berbeda dari saat ini. Selain itu,...

IMA-Daily Update Page 19

In addition, Henry also wants to focus BHP's coal portfolio on higher quality coal mines.

Analysts assess that companies accelerating the transition to green energy are also inseparable from the corona virus pandemic. The outbreak hit demand for oil, gas and coal. This is because activities outside the home are limited, factory

operations have stopped, and many planes do not fly. Analysts themselves are pessimistic that mining demand will recover soon.

Meanwhile, earlier this month, BP announced a tenfold increase in low-carbon investment as part of the company's efforts to anticipate a global reduction in oil use. BP estimates that demand for fossil fuels could fall by up to

75 percent over the next 30 years if global temperature increases are limited to 1.5 degrees Celsius. Therefore, will the coal business in the future still be a potential energy business that mining companies will still be interested in in the future?

Selain itu, Henry juga ingin memfokuskan portofolio batubara BHP pada tambang batubara dengan kualitas lebih tinggi.

Analis menilai perusahaan mempercepat transisi ke energi hijau juga tidak lepas dari pandemi virus corona. Wabah itu menghantam permintaan minyak, gas, dan batubara. Pasalnya, aktivitas di luar rumah menjadi terbatas, operasional pabrik ter-henti, dan banyak pesawat tidak terbang. Analis sendiri pesimistis permintaan tambang dapat segera pulih.

Sementara itu, pada awal bulan ini, BP mengumumkan kenaikan investasi rendah karbon sebesar sepuluh kali lipat sebagai upaya perusahaan untuk mengantisipasi dunia yang mengurangi penggunaan minyak. BP memperkirakan permintaan bahan bakar fosil bisa turun hingga 75 persen selama 30 tahun ke depan bila kenaikan suhu global dibatasi hingga 1,5 derajat celcius. Oleh karena itu, apakah bisnis batubara kedepannya tetap menjadi bisnis energi potensial yang akan tetap dilirik oleh perusahaan -perusahaan tambang kedepannya?

Wow! One of the largest diamonds in the world was

found, its value is Rp264 billion Dythia Novianty | Lintang Siltya Utami

THE GEM Diamonds mining company discovered a gemstone the size of a golf ball, believed to be one of the largest diamonds mined this year.

The precious stone was found in the company's Letseng mine in Lesotho, a small country in South Africa.

Wow! Salah Satu Berlian Terbesar di Dunia Ditemukan,

Nilainya Rp 264 Miliar Dythia Novianty | Lintang Siltya Utami

PERUSAHAAN pertambangan Gem Diamonds

menemukan batu permata seukuran bola golf, diyakini sebagai salah satu berlian terbesar yang ditambang tahun ini.

Batu berharga itu ditemukan di tambang Letseng milik perusahaan di Lesotho, sebuah negara kecil di Afrika Selatan.

IMA-Daily Update Page 20

Gem Diamonds boss Clifford Elphick described the 442-carat stone as one of the world's largest diamonds discovered this year.

"The discovery of this extraordinary diamond is further confirmation of the caliber of the Letseng mine," said Elphick, as quoted by The Sun, Tuesday (25/8/ 2020).

The diamond is the largest the company has found since the discovery of the 910 carat "Lesotho Legend" stone, selling for US$ 40 million in 2018. The newly discovered diamond will be shipped to Antwerp, Belgium, and is expected to go on sale next month.

According to Edward Sterck, an analyst at investment banking firm BMO Capital Markets, said the stone could be worth up

to US$ 18 million or Rp 264.3 billion. Gem Diamonds said a portion of the proceeds from the sale would go towards local community projects.

The UK-based company itself partners with the government of Lesotho, a landlocked country in South Africa. With a population of only 2 million people, the country is known for its open-air mines that have huge diamonds.

The largest diamond discovered this year is a 549-carat stone, mined by Canadian company Lucara Diamond from the Karowe mining company in Botswana. Although the diamond industry has also been affected by the Covid-19 pandemic, the demand for precious stones remains high.

Bos Gem Diamonds Clifford Elphick meng-gambarkan, batu 442 karat itu sebagai salah satu berlian terbesar di dunia yang ditemukan tahun ini.

"Penemuan berlian yang luar biasa ini merupakan konfirmasi lebih lanjut dari kaliber tambang Letseng," kata Elphick, seperti dikutip The Sun, Selasa (25/8/ 2020).

Berlian tersebut adalah terbesar yang ditemukan perusahaan sejak penemuan batu "Lesotho Legend" 910 karat, dijual seharga 40 juta dolar AS pada 2018. Batu berlian yang baru ditemukan ini akan dikirim ke Antwerp, Belgia, dan di-harapkan akan dijual bulan depan.

Menurut Edward Sterck, seorang analis di perusahaan perbankan investasi BMO Capital Markets, mengatakan batu itu bisa bernilai hingga 18 juta dolar AS atau senilai Rp 264,3 miliar. Gem Diamonds mengatakan, sebagian dari dana yang dihasilkan dari penjualan akan digunakan untuk proyek komunitas lokal.

Perusahaan yang berbasis di Inggris ini sendiri bermitra dengan pemerintah Lesotho, negara terkurung daratan di Afrika Selatan. Dengan populasi hanya 2 juta orang, negara ini dikenal dengan tambang terbuka yang memiliki berlian besar.

Berlian terbesar yang ditemukan tahun ini adalah batu 549 karat, ditambang per-usahaan Kanada Lucara Diamond dari penambagan Karowe di Botswana. Meski industri berlian juga terkena dampak dari pandemi Covid-19, tapi permintaan batu mulia tetap tinggi.

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Workers block access to giant gold mine

MORE than 1,000 workers blocked access to the world’s biggest gold mine in protest at a company move to shut down visits to their families over virus concerns.

The miners demonstrated at the main entrance to the Grasberg complex – also a major copper mine – in Indonesia’s easternmost Papua region, as the workers and US-based operator Freeport held talks.

The protest, which started yesterday morning, came in response to a company decision to cancel bus services to the city of Timika in response to fears about the spread of coronavirus infections.

“They’re staging a peaceful protest and so far everything is under control. Nobody is acting violently,” police chief Eduard Edison said.

Workers and management “haven’t yet agreed on things and they are still negotiating”, he added.

Freeport spokesman Riza Pratama said the company was “studying” the workers’ demands.

“We’ll give them an answer as soon as possible, taking into account health and safety protocols.”

In May, Freeport said it was reducing its staff at the mine, which employed about 25,000 people, after virus infections rose in the area. — AFP

Covid-19 hurt mining in Asia and the Americas most By: Creamer Media Reporter

MINING operations in Asia and the Americas were hardest hit by government regulations implemented to stymie the spread of Covid-19, and are the regions that will register the largest declines in mineral production growth this year.

This is according to a new report by Fitch Solutions, which states that ore production in China, Indonesia, Peru and India have been the hardest hit, while Australia, Russia and Iran have seen limited disruptions owing to Covid-19.

Tin and copper ore will face the greatest Covid-19-induced reductions in output in 2020, owing to the concentration of copper and tin projects in Asia and the Americas. Global gold and iron-ore production will show greater resilience in 2020, owing to high prices and the location of mines of these metals in countries where mining operations are least affected by the pandemic.

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For Asia, Fitch Solutions is forecasting a mining industry value (MIV) contraction of 4% year-on-year in 2020, after revising down mineral production forecast for a number of countries in the region. Most notably, China’s mineral production growth forecast has been reduced by an average of 3% from previous levels.

A MIV contraction of 5.6% is forecast for the Americas, where output, exports and investment were impacted by strict policies in certain countries.

“Peru, Mexico and Ecuador led the region with the strictest policies, essentially reducing the mining sector to just critical activities for a month of longer,” Fitch Solutions notes.

Africa and Europe had mineral disruptions, but mining companies could announce disruptions to production, owing to low mineral prices. Sub-Saharan Africa’s forecast is for a 1% MIV contraction, owing to lower metal prices and some localised lockdowns that resulted in logistical hurdles affecting output.

Fitch Solutions, however, believes that the worst is over, with the number of Covid-19 cases

globally starting to plateau and more economies opening up.

“Global metal prices have displayed a sustained recovery since bottoming in March, and we believe in further upside if not stabilisation in the coming quarters and 2021. The global recovery in the mining and metals sector is being led by China as the country has embarked on a strong V-shaped recovery since lockdowns were lifted in April, ramping up mining

production along with demand for imported ore, which we expect to continue in the second half of 2020 and 2021.”

Despite mining operations across the world facing varying degrees of disruption or reduced revenues, mining companies, in general, are surviving the Covid-19 financial storm without significant debt increases or bankruptcy filings.

Fitch Solutions says interim results released by mining companies in recent weeks remained strong, indicating that that they have been able to withstand the stress thus far.

“We have long held the view that major miners are better positioned to weather unexpected storms since the 2015 commodities rout.”

For instance, the financial footing of Anglo American, which reported earnings before interest, taxes, depreciation and amortisation of $3.4-billion in the first half of 2020, compared with $5.5-billion in the first half of 2019, remains strong and resilient iron-ore prices will shield the company from losses.

In its financial year, which ended June, BHP also announced a 5% reduction in underlying Ebitda, but it remains healthy at $22.1.-billion for the 12 months with attributable profit of $8-billion.

Rio Tinto’s revenues declined by 13.7% year-on-year in the first half of 2020, as prices for all metals that the miner produces – except iron-ore and uranium – reduced in the six months.

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Nexa Resources improves safety and ore recovery with Orica’s technology

Published by Jessica Casey, Editorial Assistant

BY applying Orica’s fully wireless initiation system, WebGenTM, Nexa Vazante (Nexa Resources) significantly reduced ore dilution from 27% to 20%, resulting in a net benefit of US$1.59 million.

The single blast event achieved a smaller hydraulic radius by keeping the pillar during the stope extraction which in turn resulted in a reduced cycle time to 20 days, down 70% from an expected 90 days by maintaining two mucking access points to the main stope, only possible due to the technology’s wireless capability. The blasting approach dramatically improved safety by pre-loading the pillar with WebGen, minimising the exposure of personnel and removing the need to re-enter the area.

Nexa Vazante Chief Mining Engineer, Mateus Ribeiro, said: “Thanks to this technology and partnership, we recovered an island rib pillar, which is a pillar kept in the open stope for dilution control. After all the ore from the block was extracted and the pillar had completed its requirement, the pre-loaded holes were successfully initiated remotely.

“We went through a series of improvements in the evolution of blasting technology with Orica, from the first detonators until nowadays using 100% wireless detonators. The blast happened two levels below us, so we are 400 m away, above the shot. All encoded signals were sent through the rock with the safety protocols to fire the blast being followed.

Nexa Vazante, a zinc and lead mine owned by Nexa Resources, is located in northwest Minas Gerais, Brazil. Using vertical retreat mining (VRM) and long hole open stope as the main methods for ore extraction, the mine has traditionally deployed wired initiators in the recovery of ore, typically yielding around 60% ore recovery in the pillars. The application of wired initiators also required increased resources and time in the mine.

In 2019, Orica proposed the implementation of WebGen wireless initiating technology at Vazante to support the team in mitigating the operational and safety challenges of the mine. Enabled by the wireless technology, ore within the pillars can be recovered through pre-loading without the need to return to the open stope. With the introduction of the company’s technology, the mine was able to gain time in the sequencing of the blast and extract ore previously inaccessible while improving its operating productivity.

Orica’s Latin America Wireless and Electronic Blasting Systems Specialist, Wesley Andrade, added: “The Nexa Vazante crew and our team conducted extensive site signal surveying and applied best practices to ensure the drill pattern in the pillar was accurately loaded with WebGen 100 units, encoded and positioned as planned.

“This achievement in recovering a pillar through wireless initiation while protecting people from hazards is made possible only by the strong partnership between Nexa Vazante and Orica. We are thrilled to have Nexa Vazante successfully implement wireless blasting with our WebGen initiating system.”

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BHP to fund Canada’s Midland nickel exploration Cecilia Jamasmie

CANADIAN junior Midland Exploration (TSX-V: MD) said on Monday it had struck a new funding deal with a subsidiary of BHP (ASX, LON, NYSE: BHP) for nickel exploration activities in northern Quebec.

BHP’s unit Rio Algom Limited will fund 100% of Midland’s exploration for the battery metal within the Nunavik territory up to C$1.4 million ($1.06 million), on an annual basis, for a minimum of two years.

The objective, the junior said, is to identify, test and develop high-quality exploration targets towards the discovery of new significant nickel deposits within the targeted area.

Midland also said BHP may propose additional exploration work for up to C$700,000 before advancing an identified project to the second phase.

The deal comes only weeks after Tesla (NASDAQ: TSLA) boss Elon Musk promised miners a “giant contract” to any firm able to extract nickel for the batteries that power his company’s electric cars in an “efficient, environmentally sustainable manner.”

The BHP-Midland deal could potentially be an answer for the world’s most-valuable carmaker’s needs.

Analysts argue that Musk may have to rely for now on supply coming from the world’s largest producer of the metal: Indonesia. Companies operating there, however, are being criticized for plans to pump waste into the open sea, meaning Musk and other EV makers may need to compromise on sourcing standards while trying to compel the industry to clean up its act.

“Nickel projects being built in Southeast Asia will rely on coal, fuel oil or diesel to run their operations and will leave a very large carbon footprint,” said Sam Riggall, chief executive officer of Clean TeQ Holdings Ltd., which is developing an Australian mine to supply nickel for vehicle batteries. “This sort of makes a bit of a mockery of driving a green, sustainable car,” he told Bloomberg News.

Junior Canada Nickel (TSX-V: CNC) also has its eyes on the price. The junior said in July it had found a way to mine nickel without spewing tonnes of carbon into the atmosphere.

The company is in the midst of setting up a facility near Timmins, Ontario, that CEO Mark Selby said can extract the metal virtually carbon-free.

Canada Nickel plans to create NetZero Metals, a wholly-owned subsidiary, to use existing technologies in the production of zero-carbon nickel, cobalt, and iron products.

Copper, the other favourite

Rio Algom and Midland inked last year another funding deal through which the mining giant would support the Canadian junior’s exploration for copper in the same area. That included work at Midland’s Mythril copper-gold-molybdenum-silver project in James Bay Eeyou Istchee.

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As part of that agreement, BHP gained the right to participate in future financings to maintain its pro rata non-diluted ownership stake or increase its ownership to a maximum of 19.99% on a fully diluted basis.

Midland has various partnerships and option agreements on many of its projects with industry heavyweights, including Agnico Eagle Mines (TXS: AEM; NYSE: AEM), Teck Resources (TSX.TECK.A; NYSE: TECK), IAMGOLD (TSX: IMG; NYSE: IAG), Osisko Mining (TSX: OSK), Altius Minerals Corp. (TSX: ALS), Soquem, Nuvavik Mineral Exploration Fund and Abcourt Mines Inc. (TSXV: ABI). (With files from Bloomberg)

Congo makes exceptions to export ban on cobalt, copper and tin

THE DEMOCRATIC Republic of the Congo (DRC) has given mining companies an ‘indefinite waiver’ to an export ban on cobalt hydroxide and carbonate.

The latest move comes after a meeting with the country’s biggest miners in the DRC’s capital city Kinshasa, Reuters reported.

On 22 August, concentrates of 3Ts (tin, tungsten and tantalum), have also been granted an indefinite waiver by the DRC’s mines ministry.

An export ban waiver on copper concentrate was also announced by the ministry.

However, the duration of this waiver is yet to be determined as companies are expected to submit their proposals on the plan a week from now.

Congo is the world’s largest producer of cobalt and Africa’s biggest copper producer. It banned exports of copper and cobalt concentrates in 2013 to encourage miners to process the ore in the country itself.

The latest decision by the government comes as a relief to cobalt, copper and tin miners in Congo, as well as Zambian smelters and refiners.

Reuters cited the ministry as stating: “After a long debate, the mines minister Professor Willy Kitobo Samsoni decided to grant an indefinite waiver for cobalt hydroxides and carbonates, the tin concentrates of Alphamin, and concentrates of 3Ts.”

Alphamin operates a tin mine in the Congo’s North Kivu province.

In January, state-owned firm China Nonferrous Metal Mining (CNMC) launched the Congo’s first large-scale smelter, the Lualaba Copper Smelter (LCS), which is 45km from the Kamoa-Kakula project in the DRC.

The government joint venture (JV) is capable of processing 400,000tpa of copper concentrate and producing 120,000tpa of copper blister.

However, LCS cannot process all of the Congo’s copper production, even at full capacity.

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According to the central bank, the Congo produced 765,000t of copper concentrate in the first half of this year alone, marking a 13.4% increase year-on-year (YoY).

In September 2019, the Indonesian Government intended to bring forward the ban on nickel exports from 2022 to January 2020, enabling higher exports of nickel from the Philippines to China.

India wants all the coking coal & anthracite Russia can deliver

NEW Delhi plans to boost imports of coking coal, anthracite, and pulverized coal from Russia to 40 million tons per year. The supplies, worth around $4.5 billion, are intended to meet the needs of India’s steel industry.

The news was first reported by Kommersant business daily on Monday. According to its sources, Russian Deputy Energy Minister Anatoly Yanovsky said that the issue had been already discussed with India’s Ministry of Steel. The ministry believes that Russia can deliver the volumes discussed, and the exports can be “pretty competitive” with Australian coal.

Based on the July coking coal price of around $113 per ton, the imports of 40 million tons will cost India around $4.5 billion.

Russia currently exports less than 1 million ton of metallurgical coal to India, while its total exports of the resource stands at around 46 million tons. Thus, India could account for almost all of Russia’s exports of the fuel, which is vital for primary steelmaking, and become one of the largest markets for Russian coal producers.

An industry source told Kommersant that New Delhi is going to increase steel production, but lacks its own metallurgical coal. Robust expansion in steel production will make the country the largest importer of coking coal by 2025, overtaking China, Fitch Solutions predicted last year.