Daily News Update Page 1

TABLE OF CONTENTS

No. Title Media Source Page

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Recap of Mining BUMN Performance: ANTM and PTBA Make Profits, TINS Loses Rekap kinerja BUMN tambang: ANTM dan PTBA raup laba, TINS merugi

Zero Percent Coal Royalty Provisions Reaffirmed in the Job Creation RPP Ketentuan Royalti Batu Bara Nol Persen Dipertegas dalam RPP Ciptaker

Bukit Asam profits dip 44 percent in September amid weak coal demand

Antam's Gold Sales Decreased 44% Penjualan Emas Antam Turun 44%

J Resources (PSAB) offers bonds of Rp 500 billion with an interest of up to 10.25% J Resources (PSAB) menawarkan obligasi Rp 500 miliar dengan bunga hingga 10,25%

Timah asks MIND ID to give a loan of US$ 100 million Timah Minta MIND ID Beri Pinjaman US$ 100 Juta

Bakrie Group Action, Darma Henwa (DEWA) Transaction Makes Shares Dilution 21 Percent Aksi Grup Bakrie, Transaksi Darma Henwa (DEWA) Bikin Dilusi Saham 21 Persen Coal in 20 Years Not Sold, Here's World Consumption Trends Batu Bara 20 Tahun Lagi Tak Laku, Begini Tren Konsumsi Dunia

Antam (ANTM) builds the lithium battery industry supply chain with the CATL consortium Antam (ANTM) bangun rantai pasok industri lithium battery dengan konsorsium CATL

Pemprov Babel-Ministry of ESDM Discuss Increase in Tin Royalties Pemprov Babel-Kementerian ESDM Bahas Kenaikan Royalti Timah

Kontan

Bisnis

The Jakarta Post

Dunia Energi

Kontan

Investor Daily

Bisnis CNBC Indonesia

Kontan

Republika

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Daily News Update Page 2

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Pfizer's Corona Vaccine Works, Coal Prices Are Disturbed Vaksin Corona Pfizer Ces Pleng, Harga Batu Bara Terusik IEEFA Indonesia: DME coal gasification project could lose US$377 million annually Glencore awards Orica explosives contract Iron price jumps as Chinese imports continue at record pace Cokal drafts in PT Harmoni Panca Utama for contract mining at BBM coal project China coal imports from Australia cut in half Mitsui E&S restarts build of money-bleeding Indonesian coal plant

CNBC Indonesia IEEFA Australian Mining Mining.com Int'l Mining Australian Mining Nikkei Asia

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Daily News Update Page 3

Recap of Mining BUMN Performance: ANTM and PTBA

Make Profits, TINS Loses Reporter: Akhmad Suryahadi | Editor: Herlina

Kartika Dewi

A PUBLIC mining company under the

auspices of mining holding MIND ID has reported its financial performance. As a result, there are those who experience a decrease in net income to suffer losses.

The classy performance was shown by PT Aneka Tambang Tbk (ANTM). The issuer of precious metal hawkers (LM) posted a net profit of Rp 835.78 billion in the third quarter of 2020, up 30.28% on an annual basis. On a quarterly basis, ANTM's net profit rose by 105% compared to the previous quarter.

In terms of sales, ANTM posted revenues of Rp 18.03 trillion, down 26% on an annual basis. It's just that, on a quarterly basis, Aneka Tambang's sales shot up to 119% from Rp 4.02 trillion in the second quarter of 2020 to Rp 8.81 trillion in the third quarter of 2020.

During the first nine months of 2020, gold commodity was the main contributor where as much as Rp 12.98 trillion or 72% of ANTM's sales were contributed by gold commodities. Until September 2020, ANTM gold sales reached 14,882 kg or the equivalent of 478,467 oz.

The state-owned coal mining company, PT Bukit Asam Tbk (PTBA), also still posted a net profit of Rp 1.7 trillion in the third quarter of 2020. However, this net profit achievement fell 44% when compared to the net profit in the same period the previous year which reached Rp 3.10 trillion.

Rekap kinerja BUMN tambang: ANTM dan PTBA raup laba,

TINS merugi Reporter: Akhmad Suryahadi | Editor: Herlina

Kartika Dewi

PERUSAHAAN terbuka bidang pertam-

bangan yang berada di bawah naungan holding pertambangan MIND ID telah me-laporkan kinerja keuangannya. Hasilnya, ada yang mengalami penurunan laba bersih hingga menanggung kerugian.

Kinerja mentereng ditunjukkan oleh PT Aneka Tambang Tbk (ANTM). Emiten penjaja logam mulia (LM) ini membukukan laba bersih senilai Rp 835,78 miliar pada kuartal III-2020, naik 30,28% secara tahunan. Secara kuartalan, laba bersih ANTM naik hingga 105% dibanding kuartal sebelumnya.

Dari sisi penjualan, ANTM membukukan pendapatan senilai Rp 18,03 triliun, turun 26% secara tahunan. Hanya saja, secara kuartalan, penjualan Aneka Tambang melesat hingga 119% dari Rp 4,02 triliun di kuartal kedua 2020 menjadi Rp 8,81 triliun di kuartal ketiga 2020.

Sepanjang sembilan bulan pertama 2020, komoditas emas menjadi kontributor utama dimana sebanyak Rp 12,98 triliun atau 72% dari penjualan ANTM disumbang oleh komoditas emas. Hingga September 2020, penjualan emas ANTM mencapai 14.882 kg atau setara 478.467 oz.

Perusahaan tambang batubara milik negara, PT Bukit Asam Tbk (PTBA) juga masih men-cetak laba bersih senilai Rp 1,7 triliun pada kuartal III-2020. Meski demikian, raihan laba bersih ini turun 44% jika dibandingkan dengan torehan laba bersih pada periode yang sama tahun sebelumnya yang mencapai Rp 3,10 triliun.

Daily News Update Page 4

The decrease in net profit is in line with Bukit Asam's lower net income. The issuer

based in South Sumatra posted net income of Rp. 12.8 trillion, down 20.94% from the

actual net income in the third quarter of 2019 which at that time reached Rp. 16.25

trillion.

The decline in revenue was also in line with the decline in Bukit Asam's coal sales

volume. During the first 9 months of 2020, Bukit Asam's coal sales volume decreased

9% on an annual basis to 18.6 million tonnes.

PT Timah Tbk (TINS) has shown a different

performance. The tin producer listed a loss of Rp 255.15 billion. TINS also recorded a

decline in revenue of 18.42% (yoy) to Rp 11.88 trillion per quarter III-2020.

Refined tin sales in the third quarter amounted to 45,548 tons, down 9.49

percent from 50,326 tons in the same period last year. Meanwhile, the average

selling price for refined tin also fell 21.73 percent to US$ 16,832 per ton from US$

19,083 per ton previously.

Kiwoom Sekuritas Indonesia analyst Sukarno Alatas assessed that currently the

prices of the majority of commodities are actually on a stronger trend if we compare

it to the second quarter, which fell deeply. Meanwhile, the price of gold only

decreased in the first quarter.

Sukarno assessed that a number of commodities such as gold, nickel, tin, and

coal still had the opportunity to continue strengthening next year as the economy

recovers assuming a vaccine is ready.

For the nickel commodity, positive news

also comes from the plan to form an electric vehicle battery holding.

Penurunan laba bersih ini sejalan dengan penurunan pendapatan bersih Bukit Asam. Emiten yang berbasis di Sumatra Selatan ini membukukan pendapatan bersih senilai Rp 12,8 triliun, turun 20,94% dari realisasi pendapatan bersih di triwulan ketiga 2019 yang kala itu mencapai Rp 16,25 triliun.

Penurunan pendapatan ini juga seiring dengan menurunnya volume penjualan batubara Bukit Asam. Sepanjang 9 bulan pertama 2020, volume penjualan batubara Bukit Asam menurun 9% secara tahunan menjadi 18,6 juta ton.

Kinerja berbeda ditunjukkan oleh PT Timah Tbk (TINS). Emiten produsen timah tersebut membukukan kerugian Rp 255,15 miliar. TINS juga mencatatkan penurunan pendapatan sebesar 18,42% (yoy) menjadi Rp 11,88 triliun per kuartal III-2020.

Penjualan logam timah pada kuartal ketiga sebesar 45.548 ton atau turun sebesar 9,49% dari realisai periode yang sama tahun lalu yang mencapai 50.326 ton. Adapun harga rata-rata jual logam timah juga turun 21,73% menjadi US$ 16.832 per ton dari sebelumnya US$ 19.083 per ton.

Analis Kiwoom Sekuritas Indonesia Sukarno Alatas menilai saat ini harga mayoritas komoditas sebenarnya dalam tren menguat jika kita bandingkan dari kuartal kedua yang sempat turun dalam. Sedangkan harga emas hanya mengalami penurunan di kuartal pertama.

Sukarno menilai, sejumlah komoditas eperti emas, nikel, timah, dan batubara masih berpeluang melanjutkan penguatan tahun depan seiring pulihnya ekonomi dengan asumsi vaksin yang sudah siap.

Untuk komoditas nikel, kabar positif juga datang dari rencana pembentukan holding baterai kendaraan listrik.

Daily News Update Page 5

"The Consortium of State-Owned Enter-

prises (BUMN) plans to build a battery

industry made of nickel, where ANTM will

work on this big project," said Sukarno to

Kontan.co.id, Monday (9/11).

Furthermore, the need for electric battery

raw materials will increase demand for

nickel, so that the prospects for other

nickel issuers, such as PT Vale Indonesia

Tbk (INCO) will also be attractive going

forward.

Meanwhile, coal prices are expected to

recover from the end of this year and have

the opportunity to continue to increase

until next year. One of the assumptions of

this estimate is based on coal demand from

China which has begun to show an increase

in line with the decline in the Covid-19

infection rate and the Panda Country's

economy is starting to recover. In addition,

the daily infection rate in China has also

been successfully controlled and continues

to decline.

Sukarno continued, the shares of PTBA,

ANTM, INCO, and TINS were still attractive.

However, investors are asked to wait for

the momentum of the correction if they

want to buy these mining stocks.

This is because today metal-based issuers

such as INCO, ANTM and TINS have

strengthened significantly and are likely to

continue trading tomorrow (10/11).

In today's trading, ANTM shares closed up

10.22% to Rp 1,240, TINS shares rose

8.77% to 930, and INCO shares closed up

6.56% to 4,550 levels.

“Konsorsium Badan Usaha Milik Negara (BUMN) berencana membangun industri

baterai berbahan baku nikel dimana ANTM yang bakal mengerjakan proyek besar ini,”

ujar Sukarno kepada Kontan.co.id, Senin (9/11).

Lebih lanjut, kebutuhan bahan baku

baterai listrik bakal meningkatkan per-mintaan komoditas nikel , sehingga

prospek emiten nikel lainnya, seperti PT Vale Indonesia Tbk (INCO) juga akan

menarik ke depannya.

Adapun, harga batubara diperkirakan akan pulih mulai akhir tahun ini dan berpeluang

terus meningkat hingga tahun depan. Salah satu asumsi atas perkiraan ini didasarkan

pada permintaan batubara dari China yang mulai menunjukkan peningkatan seiring

dengan penurunan angka infeksi Covid-19 dan perekonomian Negeri Panda tersebut

mulai pulih. Selain itu, tingkat infeksi harian di China juga telah berhasil diken-

dalikan dan terus mengalami penurunan.

Sukarno melanjutkan, saham PTBA, ANTM,

INCO, dan TINS masih atraktif. Hanya saja, investor diminta untuk menunggu

momentum koreksi apabila ingin membeli saham-saham pertambangan ini.

Sebab, hari ini emiten berbasis logam

seperti INCO, ANTM, dan TINS menguat cukup signifikan dan kemungkinan besar

akan berlanjut pada perdagangan besok (10/11).

Pada perdagangan hari ini, saham ANTM

ditutup menguat 10,22% ke level Rp 1.240, saham TINS menguat 8,77% ke level 930,

dan saham INCO ditutup menguat 6,56% ke level 4.550.

Daily News Update Page 6

Zero Percent Coal Royalty Provisions Reaffirmed in the Job

Creation RPP Denis Riantiza Meilanova

THE GOVERNMENT has affirmed the

provisions related to the imposition of zero percent royalties on coal commodities for activities to increase the added value of coal in the draft Government Regulation Draft (RPP) on Implementing Law on Job Creation in the Energy and Mineral Resources Sector.

In the RPP draft released by the govern-ment, it is stated that the holders of mining business permits (IUP) for production operations, special IUP (IUPK) for produc-tion operations, and IUPK as a continuation of contract/agreement operations for coal commodities that carry out development and/or utilization of coal in the country may be subject to production fees/ royalties up to zero percent.

The imposition of royalties up to zero percent does not apply to all coal produced by business actors, however, it is only imposed on the amount or tonnage of coal used in the development or utilization of coal.

However, the draft does not specify which coal development or utilization activities will receive royalty incentives of up to zero percent.

Director of Mineral and Coal Revenue at the Ministry of Energy and Mineral Resources, Jonson Pakpahan, said that the preparation of the RPP was not final. Further provisions regarding the types of coal development or utilization activities that will receive royalty incentives are also still being discussed.

Ketentuan Royalti Batu Bara Nol Persen Dipertegas dalam

RPP Ciptaker Denis Riantiza Meilanova

PEMERINTAH mempertegas ketentuan ter-

kait pengenaan royalti nol persen terhadap komoditas batu bara untuk kegiatan peningkatan nilai tambah batu bara dalam draf Rancangan Peraturan Pemerintah (RPP) tentang Pelaksana Undang-Undang tentang Cipta Kerja Sektor Energi dan Sumber Daya Mineral.

Dalam draf RPP yang dirilis pemerintah disebutkan bahwa pemegang izin usaha pertambangan (IUP) operasi produksi, IUP khusus (IUPK) operasi produksi, dan IUPK sebagai kelanjutan operasi kontrak/ perjanjian untuk komoditas batu bara yang melakukan kegiatan pengembangan dan/ atau pemanfaatan batu bara di dalam negeri dapat dikenakan iuran produksi/royalti hingga nol persen.

Pengenaan royalti hingga nol persen tidak berlaku terhadap seluruh batu bara yang diproduksi pelaku usaha, tetapi, hanya dikenakan terhadap jumlah atau tonase batu bara yang digunakan dalam kegiatan pengembangan atau pemanfaatan batu bara.

Akan tetapi, dalam draf tersebut belum dijabarkan mengenai kegiatan pengem-bangan atau pemanfaatan batu bara mana saja yang akan mendapat insentif royalti hingga nol persen.

Direktur Penerimaan Mineral dan Batu Bara Kementerian Energi dan Sumber Daya Mineral Jonson Pakpahan mengatakan bahwa penyu-sunan RPP belum final. Ketentuan lebih lanjut mengenai jenis kegiatan pengembangan atau pemanfaatan batu bara yang akan memperoleh insentif royalti juga masih dibahas.

Daily News Update Page 7

"It is being discussed. It is also still being discussed what is [regulated] in ministerial regulations or in government regulations," said Jonson when contacted by Bisnis, Monday (9/11/2020).

Regarding the target for completing the RPP and draft ministerial regulations, Jonson could not confirm it. However, he hopes that the RPP can be completed quickly.

"For us, we want it as soon as possible, but we have to go through the procedures and mechanisms that apply," he said.

The following are the provisions of the Minerals and Coal Chapter in the draft RPP of the ESDM Sector Job Creation Law which was released on Saturday (7/11/2020):

Article 1

(1) Holders of Production Operation IUP, Production Operation IUPK and IUPK as a Continuation of Contract/Agreement Operations for coal commodities that carry out Coal Development and/or Utilization activities in the country may be subject to a production fee/royalty up to 0% (zero percent).

(2) The production fee/royalty up to 0% (zero percent) as referred to in paragraph (1) shall be imposed on the amount/ tonnage of Coal used in Coal Development and/or Utilization activities.

(3) Further provisions regarding the amount, requirements and procedures for the imposition of production fees/royalties up to 0% (zero percent) as referred to in paragraph (1) shall be regulated in a Ministerial Regulation.

(4) The amount, requirements and procedures for the imposition of production fees/royalties up to 0% (zero percent) as referred to in paragraph (3) must first obtain the approval of the minister who administers government affairs in the financial sector. Editor: Zufrizal

"Sedang dibahas. Ini juga masih dibahas apa [diatur] di peraturan menteri atau di per-aturan pemerintah," kata Jonson ketika di-hubungi Bisnis, Senin (9/11/2020).

Terkait dengan target penyelesaian RPP maupun rancangan peraturan menteri, Jonson belum bisa memastikannya. Namun, diia berharap agar RPP bisa diselesaikan dengan cepat.

"Kalau kami sih, maunya secepatnya, tapi kan harus melewati prosedur dan meka-nisme yang berlaku," ujarnya.

Berikut bunyi ketentuan Bab Mineral dan Batu Bara dalam draf RPP Undang-Undang Cipta Kerja Sektor ESDM yang dirilis Sabtu (7/11/2020):

Pasal 1

(1) Pemegang IUP Operasi Produksi, IUPK Operasi Produksi dan IUPK sebagai Kelanjutan Operasi Kontrak/Perjanjian untuk komoditas batubara yang melakukan kegiatan Pengembangan dan/atau Peman-faatan Batubara di dalam negeri dapat dikenakan iuran produksi/royalti hingga 0% (nol persen).

(2) Pengenaan iuran produksi/royalti hingga 0% (nol persen) sebagaimana dimaksud pada ayat (1) dikenakan terhadap jumlah/ tonase Batubara yang digunakan dalam kegiatan Pengembangan dan/atau Peman-faatan Batubara.

(3) Ketentuan lebih lanjut mengenai besaran, persyaratan, dan tata cara pengenaan tarif iuran produksi/royalti hingga 0% (nol persen) sebagaimana dimaksud pada ayat (1) diatur dalam Peraturan Menteri.

(4) Besaran, persyaratan, dan tata cara pengenaan tarif iuran produksi/royalti hingga 0% (nol persen) sebagaimana dimaksud pada ayat (3) harus terlebih dahulu mendapat persetujuan menteri yang menyelenggarakan urusan pemerintahan di bidang keuangan. Editor : Zufrizal

Daily News Update Page 8

Bukit Asam profits dip 44 percent in September amid weak coal demand

Norman Harsono | The Jakarta Post

STATE-owned coal miner PT Bukit Asam booked a decline in net profits for the third

consecutive quarter as weak coal demand, impacted by the COVID-19 health crisis, continued to take its toll on the company’s finances.

Bukit Asam’s net profits dipped 44.2 percent year-on-year (yoy) to Rp 1.73 trillion (US$121.7 million) in the January-September period this year, as revenues fell sharper than expenses, the company’s latest financial statement shows.

The publicly listed miner slashed operational expenses by 11.4 percent yoy to Rp 9.3 trillion in the first nine months of this year but its revenues slumped by a steeper 21 percent yoy to Rp 12.85 trillion.

Due to the efficiency measures, Bukit Asam’s production went down by 10.2 percent yoy to 19.4 million tons in the nine-month period.

“Not many companies can survive let alone make a profit,” Bukit Asam president director Arviyan Arifin told reporters of the financial results on Nov. 6. “We should be grateful.”

Bukit Asam’s revenue margins, like that of every other Indonesian coal miner, took a big hit this year as global demand for coal – a commodity mainly used to generate electricity – collapsed following the closure of industries and businesses amid the pandemic.

Indonesia’s benchmark coal price (HBA) was pegged at $55.71 per ton for this month, recovering from the five-year record low of $49.42 per ton in September, but still weaker than the average $77.89 per ton last year, Energy and Mineral Resources Ministry data shows.

The energy ministry expects the benchmark price to close at between $59 and $61 per ton this year and at around $66 per ton next year, which is still lower than the 2019 prices.

“This significantly thinner profitability will impel the company to impose efficiency measures, going forward,” wrote investment analyst Robertus Yanuar Hardy of Kresna Sekuritas in a note received by The Jakarta Post on Monday.

The securities firm expects Bukit Asam to end 2020 with net profits of Rp 2.19 trillion, lower than the previous estimate of Rp 2.72 trillion.

However, Robertus maintained that Bukit Asam’s shares remained attractive, recommending investors to buy.

He reasoned that, among other factors, demand for Bukit Asam’s coal was more stable than that of its competitors. The state-owned coal miner is the chief supplier for state-owned electricity monopoly PLN.

Meanwhile, Mirae Asset Sekuritas Indonesia analyst Andy Wibowo Gunawan wrote in a note published on Monday that Bukit Asam’s net profits in the first nine months of the year realized 60.4 percent and 64.1 percent of the respective full-year estimates of the securities firm and the consensus.

Daily News Update Page 9

Andy’s note also acknowledged Bukti Asam’s coal production slump.

“However, we believe that PTBA’s coal production numbers will recover in the fourth quarter of 2020 due to the higher estimates of global coal demand,” the note reads, referring to the firm by its Indonesia Stock Exchange (IDX) code.

Meanwhile, Bukit Asam finance director Mega Satria said the company disbursed Rp 700 billion in capital expenditure (capex) as of September. Most of the capital went to developing a coal-fired power plant in South Sumatra that has reached 55.5 percent completion.

He estimated capital spending would amount to between Rp 1 trillion and Rp 2 trillion this year, lower than the initially budgeted Rp 4 trillion, as projects such as railway expansion and the power plant faced delays due to the COVID-19 virus outbreak.

Going forward, Bukit Asam’s Arviyan said that “this pandemic will still affect our business in 2021 but capex next year will still be bigger than this year because we have projects to execute.”

The Indonesian Coal Mining Association (APBI) expects global coal demand to only show a “real recovery” starting July next year as governments maintain a degree of lockdown in the first half while distributing COVID-19 vaccines.

Bukit Asam shares rose 1.01 percent in Monday’s trading close against the benchmark Jakarta Composite Index’s (JCI) rise of 0.38 percent.

Antam's Gold Sales Decreased 44%

Rio Indrawan

PT ANEKA Tambang Tbk (ANTM) nickel ore production up to nine months this year has dropped dramatically compared to the realization of production in the same period 2019. Until September 2020, based on unaudited financial reports, nickel ore production reached 1.2 million wmt, down 77% compared to the realization of production in the year then 5.4 million wmt.

Ferronickel production until September 2020 reached 19,113 TNi, up slightly compared to last year's production realization with the same period of 19,052 TNi with sales reaching 19,507 TNi, down from the position of 19,703 TNi last year.

Penjualan Emas Antam Turun 44%

Rio Indrawan

PRODUKSI bijih nikel PT Aneka Tambang Tbk (ANTM) hingga sembilan bulan tahun ini menurun drastis dibanding dengan realisasi produksi dengan periode sama 2019. Hingga September 2020, berdasar-kan laporan keuangan unaudited produksi bijih nikel mencapai 1,2 juta wmt anjlok 77% dibanding realisasi produksi tahun lalu 5,4 juta wmt.

Produksi feronikel hingga September 2020 mencapai 19.113 TNi naik tipis dibanding realisasi produksi tahun lalu dengan periode yang sama yakni sebesar 19.052 TNi dengan penjualannya mencapai 19.507 TNi atau turun dari posisi pada sembilan tahun lalu 19.703 TNi.

Daily News Update Page 10

For gold production until September 1,280 kg, compared to the realization of

production until September last year, namely 1,485 kg or down 13.8%. The sales

rate for the nine months of this year was 14,882 kg or a 44% drop from last year's

realization of 26,712 kg.

From the financial side, revenue (sales) as of September were realized at Rp. 18

trillion, down from last year's sales realization with the same period of Rp.

24.5 trillion. Then the cost of goods sold was Rp. 15.2 trillion, down from Rp. 21.1

trillion last year.

Realized gross profit of Rp. 2.9 trillion was

down compared to the same period last year of Rp. 3.3 trillion. Up to nine months

this year, operating expenses could be reduced to Rp1.4 trillion from the previous

position of Rp2.1 trillion.

As of September, the realization of net

profit was Rp835.7 billion, an increase compared to the realization in September

last year of Rp641.5 billion.

Kunto Hendrapawoko, Corporate Secretary of Antam, said that in general the

realization of production in the nine months of this year is in accordance with

the 2020 plan. "Antam continues to implement strict health protocols in line

with Antam's efforts to maintain continuity of production," said Kunto, Monday (9/11).

The production ferronickel is fully absorbed by the export market. With

market bases in East Asia and South Asia. "The conditions of the Covud-19 pandemic,

which had an impact on international trade access, also affected Antam's export sales

levels in the nine month period," said Kunto. (RI)

Untuk produksi emas hingga September 1.280 Kg dibanding realisasi produksi

hingga September tahun lalu yakni 1.485 kg atau turun 13,8%. Tingkat penjualan

hingga sembilan bulan tahun ini 14.882 kg atau anjlok 44% dari realisasi tahun lalu

sebesar 26.712 kg.

Dari sisi keuangan pendapatan (penjualan) hingga September realisasinya Rp18 triliun

anjlok dari realisasi penjualan tahun lalu dengan periode yang sama yakni Rp24,5

triliun. Lalu dengan beban pokok pen-jualan Rp15,2 triliun turun dibanding

tahun lalu Rp21,1 triliun.

Realisasi laba kotor Rp2,9 triliun turun

dibanding periode yanh sama di tahun lalu sebesar Rp3,3 triliun. Hingga sembilan

bulan tahun ini realisasi beban usaha dapat diturunkan menjadi Rp1,4 triliun dari

posisi sebelumnya Rp2,1 triliun.

Hingga September realisasi laba bersih

Rp835,7 miliar, naik dibanding realisasi hingga September tahun lalu Rp641,5

miliar.

Kunto Hendrapawoko, Corporate Secretary Antam, mengatakan secara umum realisasi

produksi pada sembilan bulan tahun ini sesuai dengan rencana 2020. “Antam

senantiasa menjalankan protokol kese-hatan ketat sejalan dengan upaya Antam

menjaga kesinambungan produksi,” kata Kunto, Senin (9/11).

Untuk feronikel produksi sepenuhnya diserap oleh pasar ekspor. Dengan basis

pasar berada di wilayah Asia Timur dan Asia Selatan. “Kondisi pandemi Covud-19

yang berdampak pada akses perdagangan internasional turut pula mempengaruhi

tingkat penjualan ekspor Antam pada periode sembilan bulan,” kata Kunto. (RI)

Daily News Update Page 11

J Resources (PSAB) offers bonds of Rp 500 billion with an interest of up to 10.25%

Reporter/Editor: Wahyu Tri Rahmawati

PT J RESOURES Asia Pasifik Tbk (PSAB)

will issue bonds amounting to Rp 500

billion. This is the sixth phase of PSAB's ongoing bond issuance. This issuance is

part of the Asia Pacific Sustainable Bond I J Resources with a total target fund of Rp 3

trillion.

In the sixth phase of issuance, PSAB offers

two series of bonds. Of the total issuance of the sixth phase, Rp. 414.75 billion was

guaranteed with full commitment.

Series A bonds have a principal value of Rp 251.66 billion. The 370-day bond offers a

fixed interest rate of 9.25% per annum.

Series B bonds have a principal value of Rp 163.09 billion. The bonds with a tenor of 3

years offer a fixed interest rate of 10.25 percent per year.

"The remainder of the principal amount of Rp. 85.25 billion will be guaranteed with

the best ability (best effort)," said PSAB in brief additional information on the

issuance of bonds, Monday (9/11).

PSAB will use the proceeds from the bond issuance to be channeled in the form of

loans to its subsidiary, namely PT J Resources Nusantara, for the settlement of

medium term notes III phase II of Rp 380 billion. J Resources will use the remaining

bond proceeds for working capital or general corporate purposes J Resources

Nusantara.

J Resources (PSAB) menawarkan obligasi Rp 500 miliar dengan

bunga hingga 10,25% Reporter/Editor: Wahyu Tri Rahmawati

PT J RESOURES Asia Pasifik Tbk (PSAB) akan menerbitkan obligasi sebesar Rp 500 miliar. Ini adalah penerbitan obligasi berkelanjutan tahap keenam PSAB. Penerbitan ini merupakan bagian dari Obligasi Berkelanjutan I J Rresources Asia Pasifik dengan total target dana Rp 3 triliun.

Pada penerbitan tahap keenam, PSAB menawarkan dua seri obligasi. Dari total penerbitan tahap keenam, sebesar Rp 414,75 miliar dijamin dengan kesanggupan penuh (full commitment).

Obligasi seri A memiliki nilai pokok Rp 251,66 miliar. Obligasi dengan tenor 370 hari ini menawarkan tingkat bunga tetap 9,25% per tahun.

Obligasi seri B memiliki nilai pokok Rp 163,09 miliar. Obligasi dengan tenor 3 tahun ini menawarkan tingkat bunga tetap 10,25% per tahun.

"Sisa dari pokok obligasi yaitu sebanyak-banyaknya Rp 85,25 miliar akan dijamin dengan kesanggupan terbaik (best effort)," ungkap PSAB dalam informasi tambahan ringkas penerbitan obligasi, Senin (9/11).

PSAB akan menggunakan dana hasil penerbitan obligasi untuk disalurkan dalam bentuk pinjaman kepada anak usaha, yakni PT J Resources Nusantara untuk pelunasan medium term notes III tahap II sebesar Rp 380 miliar. J Resources akan menggunakan sisa dana obligasi untuk modal kerja atau keperluan korpo-rasi umum J Resources Nusantara.

Daily News Update Page 12

The underwriters for the bond issuance are PT Indo Premier Sekuritas and PT Trimegah Sekuritas Indonesia Tbk. The public offering period for the bonds, which have an idA rating, will take place on 23-24 November 2020. The allotment response is set on 25 November 2020. These bonds will be listed on the Indonesia Stock Exchange on 30 November 2020.

In the five previous issuance stages, J Resources has raised Rp 2.2 trillion in funds. With the addition of the sixth issuance, J Resources still has a remaining ceiling for issuing sustainable bonds of around Rp. 300 billion.

Penjamin emisi obligasi ini adalah PT Indo Premier Sekuritas dan PT Trimegah Sekuritas Indonesia Tbk. Masa penawaran umum obligasi yang memiliki peringkat idA ini akan berlangsung pada 23-24 November 2020. Tanggap penjatahan di-tetapkan pada 25 November 2020. Obligasi ini akan dicatatkan di Bursa Efek Indonesia pada 30 November 2020.

Dalam lima tahap penerbitan sebelumnya, J Resources telah meraup dana Rp 2,2 triliun. Dengan tambahan penerbitan keenam, maka J Resources masih memiliki sisa plafon penerbitan obligasi berkelan-jutan sekitar Rp 300 miliar.

Timah asks MIND ID to give a

loan of US$ 100 million Farid Firdaus

(farid.firdaus@beritasatumedia.com)

PT TIMAH Tbk (TINS) is exploring a loan

of US$ 100 million to the company's share-holders, PT Indonesia Asahan Aluminum (Inalum) or Mining Industry Indonesia (MIND ID). The shareholder loan will be used to refinance bank loans related to working capital.

Director of Finance Timah Wibisono said that his party is proposing shareholder loan interest below 2.5% and a loan tenor of 1 year with a renewable period. The company hopes that MIND ID will grant the loan proposal before the end of 2020.

"We are trying to replace some of our working capital loan debt in US dollars into shareholder loans. This is a natural hedge strategy. That way, if there is a high fluctuation in the exchange rate, the impact will not be that big on profit and loss," he said in Jakarta, Monday (9/11).

Timah Minta MIND ID Beri

Pinjaman US$ 100 Juta Farid Firdaus

(farid.firdaus@beritasatumedia.com)

PT TIMAH Tbk (TINS) menjajaki pinjaman

sebesar US$ 100 juta kepada pemegang saham perseroan, PT Indonesia Asahan Aluminium (Inalum) atau Mining Industry Indonesia (MIND ID). Shareholder loan tersebut akan dipakai untuk membiayai kembal i (refinancing) utang bank terkait modal kerja.

Direktur Keuangan Timah Wibisono mengata-kan, pihaknya mengusulkan bunga share-holder loan tersebut di bawah 2,5% dan tenor pinjaman selama 1 tahun dengan periode yang dapat diperbarui. Perseroan berharap MIND ID mengabulkan proposal pinjaman tersebut sebelum akhir 2020.

“Kami berupaya mengganti sebagian utang kredit modal kerja dalam dolar Amerika Serikat (AS) menjadi shareholder loan. Ini strategi natural hedge. Dengan begitu, kalau ada gejolak yang tinggi terhadap nilai tukar, imbasnya tidak begitu besar terhadap profit and loss,” kata dia di Jakarta, Senin (9/11).

Daily News Update Page 13

Wibisono said that shareholder loans have the potential to make the company's short-term debt risk profile better. The company has bank debt worth Rp. 6.6 trillion as of early November. Of that amount, the company's dollar debt reaches US$ 126 million. The company's creditors come from domestic and foreign banks.

The debt that will be exchanged for shareholder loans has an interest rate of around 2.55-3%. If the shareholder loan is granted according to the proposal, Timah will have a lower interest expense on the US dollar loan. In addition, the company can maintain a healthy net debt to EBITDA.

Wibisono emphasized that the company will not take out new loans, outside of the previous commitments. The company has already withdrawn a loan of around US$ 30 million for the expansion of the ausmelt furnace smelter in Muntok, Bangka Belitung. Overall smelter construction work has reached 30.5% and is targeted for completion in January 2022. PT Wijaya Karya Tbk (WIKA) acts as the smelter contractor.

As planned, the Timah ausmelt smelter will cost a total investment of US$ 80 million. This project is assisted by the Finnish export finance agency, Finnvera, along with MUFG Bank and Indonesia Eximbank.

Besides ausmelt, Timah is also still looking for strategic partners from home and abroad for rare earth mineral projects. "Rare earth projects need partners who have high technology," he said.

Performance Improvements

In the fourth quarter of 2020, continued Wibisono, the company hopes to continue to reduce losses. He is optimistic that the movement of the rupiah exchange rate against the US dollar...

Wibisono mengatakan, shareholder loan berpotensi membuat profil risiko utang jangka pendek perseroan lebih baik. Perseroan memiliki utang bank senilai Rp 6,6 triliun hingga awal November. Dari jumlah itu, utang dolar perseroan mencapai US$ 126 juta. Kreditur perseroan berasal dari bank domestik dan luar negeri.

Adapun utang yang akan ditukar dengan shareholder loan memiliki tingkat bunga sekitar 2,55-3%. Jika shareholder loan dikabulkan sesuai proposal, Timah akan memiliki beban bunga yang lebih rendah pada pinjaman dolar AS. Selain itu, perseroan bisa menjaga net debt to EBITDA tetap sehat.

Wibisono menegaskan, perseroan tidak akan mengambil pinjaman baru, di luar komitmen yang sudah diraih sebelumnya. Perseroan sudah menarik pinjaman sekitar US$ 30 juta untuk ekspansi smelter ausmelt furnace di Muntok, Bangka Belitung. Pekerjaan konstruksi smelter secara keseluruhan telah mencapai 30,5% dan ditargetkan selesai pada Januari 2022. PT Wijaya Karya Tbk (WIKA) bertindak sebagai kontraktor smelter tersebut.

Sesuai rencana, smelter ausmelt Timah akan menelan total investasi US$ 80 juta. Proyek ini dibantu oleh lembaga pembiayaan ekspor asal Finlandia, Finnvera, beserta MUFG Bank dan Indonesia Eximbank.

Selain ausmelt, Timah juga masih mencari mitra strategis dari dalam dan luar negeri untuk proyek mineral tanah jarang atau (rare earth). “Proyek rare earth mem-butuhkan mitra yang punya teknologi tinggi,” ujar dia.

Perbaikan Kinerja

Pada kuartal IV-2020, lanjut Wibisono, perseroan berharap dapat terus menekan kerugian. Pihaknya optimistis, pergerakan nilai tukar rupiah terhadap dolar AS...

Daily News Update Page 14

He is optimistic that the movement of the rupiah exchange rate against the US dollar will tend to be stable and global tin commodity prices will strengthen. "Hopefully the tin price will go to the position of US$ 18,000 per metric ton," he said.

The completion of the US presidential election period also brings new hope to tin demand due to the potential for improve-ment in manufacturing activity. According to Wibisono, sales to the US market account for around 15 percent of the company's total sales. Meanwhile, the European market is 15%, the Asian market takes the majority share of 68%, and domestic sales 2%.

Timah's performance shows better performance on a quarterly basis. This can be seen from the company's operating cash flow of Rp 4.84 trillion in the third quarter of 2020, up 52.68% compared to the second quarter of 2020 of Rp 3.17 trillion. EBITDA in the third quarter of 2020 reached Rp 850.36 billion, an increase compared to the second quarter of 2020 of Rp 338.72 billion.

Meanwhile, the company's loss reached Rp 255.16 billion in the third quarter of 2020, better than the loss in the second quarter of 2020 of Rp 390.07 billion. Another indicator that shows improvement in the third quarter of 2020 is the gross profit margin, which rose to 6.40% from 3.13% in the third quarter of 2020. In addition, the net profit margin increased from -4.89% to -2.15% previously.

In terms of operating performance, Timah produced 34,592 tonnes of tin ore in the third quarter of 2020, or a decrease of 47.44% from the end of 2019 of 65,819 tonnes. From this achievement, around 74.56% came from land mining, while the remaining 25.44% came from marine mining.

Pihaknya optimistis, pergerakan nilai tukar rupiah terhadap dolar AS bisa cenderung stabil dan harga komoditas timah global menguat. “Semoga harga timah menuju posisi US$ 18.000 per metrik ton,” tutur dia.

Selesainya periode pemilihan presiden AS turut membawa harapan baru pada permintaan komoditas timah lantaran potensi perbaikan aktivitas manufaktur. Menurut Wibisono, penjualan ke pasar AS berkontribusi sekitar 15% terhadap total penjualan perseroan. Sementara, pasar Eropa 15%, pasar Asia mengambil porsi mayoritas 68%, dan penjualan dalam negeri 2%.

Kinerja Timah menunjukkan performa membaik secara kuartalan. Hal ini terlihat dari cashflow operasi perseroan Rp 4,84 trilun hingga kuartal III-2020, naik 52,68% dibandingkan kuartal II tahun 2020 sebesar Rp 3,17 triliun. EBITDA pada kuartal III-2020 mencapai Rp 850,36 miliar, meningkat dibandingkan kuartal II-2020 Rp 338,72 miliar.

Sementara itu, rugi perseroan mencapai Rp 255,16 miliar pada kuartal III-2020, lebik baik dibandingkan dengan rugi pada kuartal II-2020 sebesar Rp 390,07 miliar. Indikator lainnya yang menunjukkan perbaikan pada kuartal III-2020 adalah gross profit margin yang naik menjadi 6,40% dari kuartal III-2020 3,13%. Di-samping itu, net profit margin meningkat dari sebelumnya -4,89% menjadi -2,15%.

Pada kinerja operasi, Timah memproduksi bijih timah sebesar 34.592 ton pada kuartal III-2020, atau turun sebesar 47,44% dari akhir 2019 sebanyak 65.819 ton. Dari pencapaian tersebut, sekitar 74,56% berasal dari penambangan darat, sedangkan sisanya 25,44% berasal dari penambangan laut.

Daily News Update Page 15

In line with that, refined tin sales until September 2020 amounted to 45,548 tonnes, down 9.49% from the end of 2019 at 50,326 tonnes. This affected the company's revenue decline by 18.42 percent to Rp 11.88 trillion in the third quarter of 2020 from Rp 14.56 trillion at the end of last year. Editor: Jauhari Mahardhika (Jauhari@investor.co.id)

Seiring itu, penjualan logam timah hingga September 2020 sebesar 45.548 ton atau turun 9,49% dari akhir 2019 sebanyak 50.326 ton. Hal ini mempengaruhi penurunan pendapatan perseroan sebesar 18,42% menjadi Rp 11,88 triliun hingga kuartal III-2020 dari akhir tahun lalu Rp 14,56 triliun. Editor : Jauhari Mahardhika (jauhari@investor.co.id)

Bakrie Group Action, Darma Henwa (DEWA) Transaction Makes

Shares Dilution 21 Percent Dwi Nicken Tari

THE BAKRIE Group entity's integrated

mining and energy contractor issuer, PT Darma Henwa Tbk. plans to make an additional capital without pre-emptive rights (PMTHMETD) or a private placement with targeted funds of Rp352.24 billion.

This corporate action aims to pay off the company's debt to Highrank Investment Ltd. (HI). Later, HI will become a share-holder of DEWA.

The percentage of the company's share ownership will be diluted by 21.18 percent after the private placement transaction plan is carried out.

Previously, DEWA's shareholder compo-sition was Goldwave Capital Limited 17.46 percent, Zurich Assets International Ltd. 11.5 percent, Highrank Investment 0 percent, and society 71.04 percent.

After the transaction, Goldwave Capital Limited's shareholding decreased to 13.76 percent, Zurich Assets International Ltd. 9.06 percent, Highrank 21.18 percent, and the public 56 percent.

Aksi Grup Bakrie, Transaksi Darma Henwa (DEWA) Bikin

Dilusi Saham 21 Persen Dwi Nicken Tari

EMITEN kontraktor tambang dan energi

terintegrasi entitas Grup Bakrie, PT Darma Henwa Tbk. berencana melakukan Penambahan Modal Tanpa Hak Memesan Efek Terlebih Dahulu (PMTHMETD) atau private placement dengan dana yang dibidik mencapai Rp352,24 miliar.

Aksi korporasi ini bertujuan membayar utang perseroan kepada Highrank Investment Ltd. (HI). Nantinya, HI akan menjadi salah satu pemegang saham DEWA.

Persentase kepemilikan saham perseroan akan terdilusi sebesar 21,18 persen setelah rencana transaksi private placement di-laksanakan.

Sebelumnya, susunan pemegang saham DEWA ialah Goldwave Capital Limited 17,46 persen, Zurich Assets International Ltd. 11,5 persen, Highrank Invesment 0 persen, dan masyarakat 71,04 persen.

Setelah transaksi, kepemilikan saham Goldwave Capital Limited berkurang men-jadi 13,76 persen, Zurich Assets Inter-national Ltd. 9,06 persen, Highrank 21,18 persen, dan masyarakat 56 persen.

Daily News Update Page 16

DEWA will issue 5.87 bill ion series B common shares in a private placement with an exercise price of Rp60 per share. Thus, DEWA will pocket fresh funds of around Rp 352.24 billion.

However, the funds will not be received in cash because the company will pay its obligations directly to Highrank Investment Ltd. (HI) worth US$ 23.80 million at an agreed exchange rate of Rp.14,800 per US dollar, bringing the total value to Rp.352.24 billion.

"All series B shares issued in the planned transaction [private placement] will be used to settle the company's obligations to lenders," DEWA wrote in a disclosure of information, as quoted on Monday (9/11/ 2020).

DEWA explained that Highrank Investment accepted the transfer of the company's debt in the form of collection rights from READ Finance Company Ltd. worth US$ 23.80 million based on the Receivables Transfer Notification Letter dated November 4, 2019.

Highrank Investment has also submitted a Demand of Payment to DEWA on July 14, 2020 because the company has not fulfilled the payment that should have been made on July 1, 2020.

As an effort to settle these payments, DEWA and HI made a settlement agreement on obligations on September 21, 2020.

The contents of the agreement state that DEWA will pay the principal of the loan facility amounting to US$ 23.80 million by January 5, 2021 or the conversion of all principal facilities into series B ordinary shares in rupiah currency at an exchange rate of Rp14,800 per US dollar.

This private placement is also expected to help DEWA complete its obligations and improve its capital structure with a lower debt to equity ratio.

DEWA akan menerbitkan saham biasa seri B sebanyak 5,87 miliar saham dalam aksi private placement dengan harga pelaksanaan Rp60 per saham. Dengan demikian, DEWA akan mengan-tongi dana segar sekitar Rp352,24 miliar.

Namun, dana tersebut tidak akan diterima dalam bentuk tunai karena perseroan akan langsung membayar kewajibannya kepada Highrank Investment Ltd. (HI) senilai US$23,80 juta dengan kurs yang disepakati Rp14.800 per dolar AS sehingga nilai keseluruhan menjadi Rp352,24 miliar.

“Seluruh saham seri B yang diterbitkan dalam rencana transaksi [private placement] akan digunakan untuk penyelesaian kewajiban perseroan kepada para pemberi pinjaman,” tulis DEWA dalam keterbukaan informasi, seperti dikutip pada Senin (9/11/2020).

DEWA menjelaskan bahwa Highrank Invest-ment menerima pengalihan utang perseroan dalam bentuk hak tagih dari READ Finance Company Ltd. senilai US$23,80 juta ber-dasarkan Surat Pemberitahuan Pengalihan Piutang tertanggall 4 November 2019.

Highrank Investment pun telah menyam-paikan Demand of Payment kepada DEWA pada 14 Juli 2020 karena perseroan belum memenuhi pembayaran yang seharusnya dilakukan pada 1 Juli 2020.

Sebagai upaya penyelesaian pembayaran tersebut, DEWA dan HI membuat perjanjian penyelesaian atas kewajiban pada 21 September 2020.

Adapun isi perjanjian tersebut memuat DEWA akan membayar pokok fasilitas pinjaman senilai US$23,80 juta selambat-lambatnya pada 5 Januari 2021 atau konversi seluruh pokok fasilitas menjadi saham biasa seri B dalam mata uang rupiah dengan kurs Rp14.800 per dolar AS.

Private placement ini pun diharapkan dapat membantu DEWA menyelesaikan kewajiban-nya dan memperbaiki struktur permodalan dengan rasio utang terhadap modal yang lebih rendah.

Daily News Update Page 17

In addition, the issuance of new shares is also said to reduce DEWA's financial burden so that profits can increase.

Previously, the US$ 23.80 million loan fund received by DEWA had been used for the development of the Aceh project.

To smooth this corporate action, DEWA will ask for the blessing of the share-holders through the Extraordinary General Meeting of Shareholders (EGMS) on 18 December 2020.

On the stock exchange floor, DEWA's shares are still stuck at Rp50 per share with a market capitalization of Rp1.09 trillion. Editor: Hafiyyan

Selain itu, penerbitan saham baru ini juga disebut dapat menurunkan beban keuangan DEWA sehingga laba bisa meningkat.

Sebelumnya, dana pinjaman US$23,80 juta yang diterima DEWA tersebut telah diguna-kan untuk pengembangan proyek Aceh.

Untuk memuluskan aksi korporasi ini, DEWA akan meminta restu dari para peme-gang saham lewat Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) pada 18 Desember 2020.

Di lantai bursa, saham DEWA masih tertahan di Rp50 per saham dengan kapitalisasi pasar Rp1,09 triliun. Editor :

Hafiyyan

Coal in 20 Years Not Sold, Here's World Consumption

Trends Wilda Asmarini, CNBC Indonesia

COAL is estimated to be unsold in the next

20-30 years as various countries in the world are competing to use clean energy to combat the effects of climate change.

So, what is the current trend of world coal consumption? Is it true that the trend in consumption continues to decline every year?

Based on data from the BP Statistical Review 2020, global coal consumption in 2019 reached 157.86 exajoules, a decrease of 0.6% compared to 2018 which amounted to 158.79 exajoules. The largest decline in coal demand came from the European Union countries, reaching 17.8% to 7.69 exajoules from 9.37 exajoules in 2018.

Batu Bara 20 Tahun Lagi Tak Laku, Begini Tren Konsumsi

Dunia Wilda Asmarini, CNBC Indonesia

BATU bara diperkirakan bakal tak laku

lagi pada 20-30 tahun mendatang karena berbagai negara di dunia berlomba-lomba menggunakan energi bersih guna meme-rangi dampak perubahan iklim.

Lantas, seperti apa tren konsumsi batu bara dunia saat ini? Apakah benar tren konsumsinya terus menurun set iap tahunnya?

Berdasarkan data BP Statistical Review 2020, konsumsi batu bara global pada 2019 mencapai 157,86 exajoules, turun 0,6% dibandingkan 2018 yang sebesar 158,79 exajoules. Penurunan permintaan batu bara terbesar berasal dari negara uni eropa yakni mencapai 17,8% menjadi 7,69 exajoules dari 9,37 exajoules pada 2018.

Daily News Update Page 18

Likewise, developed countries joined the Organization for Economic Co-operation and Development (OECD), coal consump-tion fell by 11.3% to 32.10 exajoules from 36.19 exajoules in 2018. Meanwhile, countries outside the OECD only up 2.6% to 125.75 exajoules from 122.61 exajoules in 2018.

Specifically for Asia Pacific, coal consump-tion in 2019 rose 2.2% to 122.22 exajoules from 119.62 exajoules in 2018. The highest growth was in Bangladesh, reaching 41% to 0.14 exajoules from 0.10 exajoules in 2018. Then, Singapore rose 30.8% although in terms of volume it was not much, namely to 0.03 exajoules from 0.02 exajoules. In third place is Vietnam, which rose 30.2% to 2.07 exajoules from 1.59 exajoules in 2018.

As for China, which is the highest coal consumer, grew 2.3% to 81.67 exajoules in 2019 from 79.83 exajoules in 2018. Then India grew 0.3% to 18.62 exajoules in 2019 from 18.56 exajoules in 2018.

Meanwhile, Indonesia grew 20% to 3.41 exajoules in 2019 from 2.84 exajoules in 2018.

The biggest decline occurred in Spain, which fell 54.6% to 0.21 exajoules in 2019 from 0.46 exajoules in 2018. Then Portugal fell 49.4% to 0.06 exajoules from 0.11 exajoules in 2018. Then Denmark fell 41.8% to 0.04 exajoules from 0.07 exajoules in 2018.

Meanwhile, coal consumption in the United States decreased only 14.6% to 11.34 exajoules in 2019 from 13.28 exajoules in 2018.

When viewed over the last seven years, BP Statistics data shows that there has been a decrease in world coal consumption by around 2.5% to 157.86 exajoules in 2019 from 161.98 million tons in 2013.

Begitu pun dengan negara-negara maju tergabung dalam Organisation for Economic Co-operation and Development (OECD), konsumsi batu bara turun 11,3% menjadi 32,10 exajoules dari 36,19 exajoules pada 2018. Sementara negara-negara di luar OECD hanya naik 2,6% menjadi 125,75 exajoules dari 122,61 exajoules pada 2018.

Spesifik Asia Pasifik, konsumsi batu bara pada 2019 naik 2,2% menjadi 122,22 exajoules dari 119,62 exajoules pada 2018. Pertumbuhan tertinggi terdapat di Bangladesh yakni men-capai 41% menjadi 0,14 exajoules dari 0,10 exajoules pada 2018. Lalu, Singapura naik 30,8% meski dari sisi volume tidak banyak yakni menjadi 0,03 exajoules dari 0,02 exajoules. Di posisi ketiga ditempati Vietnam yang naik 30,2% menjadi 2,07 exajoules dari 1,59 exajoules pada 2018.

Adapun China yang merupakan konsumen batu bara tertinggi tumbuh 2,3% menjadi 81,67 exajoules pada 2019 dari 79,83 exajoules pada 2018. Lalu India tumbuh 0,3% menjadi 18,62 exajoules pada 2019 dari 18,56 exajoules pada 2018.

Sementara Indonesia tumbuh 20% menjadi 3,41 exajoules pada 2019 dari 2,84 exajoules pada 2018.

Untuk penurunan terbesar terjadi di Spanyol yakni turun 54,6% menjadi 0,21 exajoules pada 2019 dari 0,46 exajoules pada 2018. Lalu Portugal turun 49,4% menjadi 0,06 exajoules dari 0,11 exajoules pada 2018. Kemudian Denmark turun 41,8% menjadi 0,04 exajoules dari 0,07 exajoules pada 2018.

Sementara konsumsi batu bara di Amerika Serikat hanya turun 14,6% menjadi 11,34 exajoules pada 2019 dari 13,28 exajoules pada 2018.

Bila dilihat selama tujuh tahun terakhir, data BP Statistik ini menunjukkan bahwa ter-dapat penurunan konsumsi batu bara dunia sekitar 2,5% menjadi 157,86 exajoules pada 2019 dari 161,98 juta ton pada 2013.

Daily News Update Page 19

Each year shows a trend of decreasing consumption, namely to 161, 84 exajoules

in 2014, 157.84 exajoules in 2015, then 155.50 exajoules in 2016, but in 2017

there was an increasing trend to 156.09 exajoules, 158.79 exajoules in 2018, but

fell again in 2019 to 157.86 exajoules. (wia)

Tiap tahunnya menunjukkan tren penu-runan konsumsi yakni menjadi 161,84 exajoules pada 2014, 157,84 exajoules pada 2015, lalu 155,50 exajoules pada 2016, namun pada 2017 ada tren peningkatan menjadi 156,09 exajoules, 158,79 exajoules pada 2018, namun turun lagi pada 2019 menjadi 157,86 exajoules. (wia)

Antam (ANTM) builds the lithium battery industry supply chain with the CATL consortium

Reporter: Ridwan Nanda Mulyana | Editor: Yudho Winarto

PT ANEKA Tambang Tbk or Antam

(ANTM) plans to build a supply chain for the lithium battery industry with the CATL Consortium. Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif also witnessed the signing of the Main Agreement on the Lithium Battery Industry Supply Chain Cooperation Project in Indonesia between PT Antam Tbk and the CATL Consortium, Monday (9/11).

Arifin also appreciated the efforts to increase the added value of minerals in the country. "We appreci ate Antam for realizing increased mineral added value in the country by planning to build a supply chain for the Lithium Battery industry in Indonesia with the CATL Consortium," said Arifin in a written statement, Tuesday (10/11).

He hopes that this signing can become a pioneer industry in the downstreaming of low grade nickel ore as raw material for batteries for electric motor vehicles, as well as driving the regional economy around the mine and the national economy.

Antam (ANTM) bangun rantai pasok industri lithium battery

dengan konsorsium CATL Reporter: Ridwan Nanda Mulyana | Editor:

Yudho Winarto

PT ANEKA Tambang Tbk atau Antam

(ANTM) berencana membangun rantai pasok industri lithium battery dengan Konsorsium CATL. Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif ikut menyaksikan penandatanganan Pokok Perjanjian Proyek Kerja Sama Rantai Pasok Industri Lithium Battery di Indonesia antara PT Antam Tbk dan Konsorsium CATL, Senin (9/11).

Arifin pun mengapresiasi upaya pening-katan nilai tambah mineral di dalam negeri tersebut. "Kami mengapresiasi Antam untuk mewujudkan peningkatan nilai tambah mineral di dalam negeri dengan rencana membangun rantai pasok industri Lithium Battery di Indonesia dengan Konsorsium CATL," kata Arifin dalam keterangan ter-tulisnya, Selasa (10/11).

Dia berharap, penandatanganan ini dapat menjadi industri pionir dalam hilirisasi bijih nikel kadar rendah sebagai bahan baku baterai untuk kendaraan bermotor listrik, sekaligus menggerakkan roda pereko-nomian daerah sekitar tambang dan nasional.

Daily News Update Page 20

"I hope that with this signing, Antam and the CATL Consortium can become a

pioneer industry in refining low grade nickel ore domestically as raw material for

batteries for electric motor vehicles. In addition, I hope this can also be a new

economic driving force around mining areas and nationwide," said Arifin.

Still according to Arifin, Indonesia has the

potential to develop the lithium battery industry because it has the potential for

large reserves of nickel, cobalt and manganese. Meanwhile, the downstream

project has been regulated in Law Number 3 of 2020 concerning Mineral and Coal

Mining.

He said, the government continues to encourage the construction of smelters,

particularly those producing nickel sulfate and cobalt sulfate. "Currently, there are

several companies that have built smelters using hydrometallurgical technology, one

of which is Antam," said Arifin.

Furthermore, Arifin said that to support

investment in the battery-based electric motor vehicle industry (KBLBB), the

Government has issued Presidential Regulation No. 55 of 2019 concerning the

Acceleration of the Battery-Based Electric Motor Vehicle Program for Road

Transportation.

Arifin hopes that Indonesia will be able to compete globally in the supply of electric

vehicles. "In the future, it is hoped that Indonesia will be able to become an

efficient and competitive country in providing electric vehicles by forming a

global value chain in the country," concluded Arifin.

"Saya berharap dengan penandatanganan ini, Antam dan Konsorsium CATL dapat menjadi industri pionir dalam pemurnian bijih nikel kadar rendah di dalam negeri sebagai bahan baku baterai untuk ken-daraan bermotor listrik. Selain itu, saya harap ini juga dapat menjadi roda peng-gerak ekonomi baru sekitar daerah tambang dan nasional," tutur Arifin.

Masih menurut Arifin, Indonesia memiliki potensi pengembangan industri baterai lithium karena memiliki potensi cadangan unsur nikel, kobalt, dan mangaan yang besar. Adapun, proyek hilirisasi telah diatur dalam Undang-Undang Nomor 3 Tahun 2020 tentang Pertambangan Mineral dan Batubara.

Kata dia, Pemerintah terus mendorong pembangunan smelter, khususnya peng-hasil nikel sulfat dan kobalt sulfat. "Saat ini ada beberapa perusahaan yang telah melakukan pembangunan smelter dengan teknologi hidrometalurgi salah satunya adalah Antam," ujar Arifin.

Lebih lanjut, Arifin menyampaikan bahwa untuk mendukung investasi industri kendaraan bermotor listrik berbasis baterai (KBLBB), Pemerintah telah mener-bitkan Peraturan Presiden No. 55 Tahun 2019 tentang Percepatan Program Kendaraan Bermotor Listrik Berbasis Baterai untuk Transportasi Jalan.

Arifin berharap, Indonesia nantinya dapat bersaing secara global dalam penyediaan

kendaraan listrik. "Untuk masa mendatang diharapkan Indonesia mampu menjadi

negara yang berdayaguna dan berdaya saing dalam menyediakan kendaraan

listrik dengan membentuk global value chain di dalam negeri," tutup Arifin.

Daily News Update Page 21

Pemprov Babel-Ministry of ESDM Discuss Increase in Tin

Royalties Editor: Nidia Zuraya

THE PROVINCIAL Government (Pemprov)

of Bangka Belitung Islands (Babel) together with the Ministry of ESDM discussed an increase in tin sales royalties by 10 percent. The increase in royalties is to accelerate the development and welfare of the people on the tin-producing island.

"So far, the royalty for tin sales received by Babel is only three percent, so it will not be able to provide impetus for the acceleration of development and community empower-ment," said Deputy Governor of the Babel Islands, Abdul Fatah in Pangkalpinang, Monday (9/11).

He said that so far Babel, whose territory as a producer of tin ore, has struggled with problems, both natural disasters and social conflicts. Meanwhile, the Central Govern-ment, apart from receiving dividends on 65 percent of shares, also received 20 percent of the royalties of 3 percent from the sale of refined tin.

The percentage sharing of royalties on tin sales is 16 percent for the Babel Islands Province, 20 percent for the Central Govern-ment, 32 percent for producing regions, and 32 percent for neighboring regions. This means, he said, only 0.48 percent of the total value of tin sales each year is distributed to the Provincial Government of Babel.

"This value received by this tin-producing region is considered very incomparable with the mining results obtained by PT Timah, because environmental damage, ecosystems and critical land are the main impact of tin mining to be borne by the local government and disasters that harm the community," he said.

Pemprov Babel-Kementerian ESDM Bahas Kenaikan Royalti

Timah Redaksi: Nidia Zuraya

PEMERINTAH Provinsi (Pemprov) Kepulauan Bangka Belitung (Babel) bersama Kementerian ESDM membahas kenaikan royalti penjualan timah sebesar 10 persen. Kenaikan royalti ini guna mempercepat pembangunan dan kesejahteraan masyarakat di pulau penghasil timah itu.

"Selama ini royalti penjualan timah yang diterima Babel hanya tiga persen, sehingga tidak akan mampu memberikan daya dorong bagi percepatan pembangunan dan pember-dayaan masyarakat," kata Wakil Gubernur Kepulauan Babel, Abdul Fatah di Pangkal-pinang, Senin (9/11).

Ia mengatakan selama ini Babel yang wilayah-nya sebagai penghasil bijih timah bergumul dengan permasalahan baik bencana alam dan konflik sosial. Sementara Pemerintah Pusat selain menerima deviden atas saham 65 persen juga menerima 20 persen dari royalti sebesar 3 persen hasil penjualan logam timah.

Persentase pembagian royalti atas penjualan timah yakni 16 persen untuk Provinsi Kepulauan Babel, 20 persen untuk Pemerintah Pusat, 32 persen untuk daerah penghasil, dan 32 persen untuk daerah yang berdekatan. Artinya, kata dia, hanya 0,48 persen dari nilai total penjualan logam timah tiap tahunnya yang dibagikan kepada Pemprov Babel.

"Nilai ini yang diterima daerah penghasil timah ini, dirasa sangat tidak sebanding dengan hasil penambangan yang diperoleh PT Timah, karena kerusakan lingkungan, ekosistem dan lahan kritis sebagai dampak utama dalam penambangan timah menjadi beban pemerintah daerah dan bencana yang merugikan masyarakat," katanya.

Daily News Update Page 22

Therefore, he said, it is no exaggeration to feel that the people and also the Babel government are fighting for and making efforts for the central government to get special attention, namely that the Provincial Government of Babel owns PT Timah Tbk shares from the shares of the Central Government in PT Timah Tbk, through PT Inalum Tbk as the holding of mining company, which is 14 percent.

In addition, it also increases the royalty sales of tin to producing regions to support development programs in regencies/cities in Bangka Belitung.

ESDM Ministry's Director General of Mineral and Coal Ridwan Djamaluddin said he would officially report the results of today's meeting to the Minister of ESDM. "We also try our hardest with the spirit of equitable development. And because our country is still within the Indonesian Unitary State, let's do it and finish it as well as possible," he said.

Oleh karena itu, kata dia, tidak berlebihan rasanya masyarakat dan juga pemerintah Babel memperjuangkan serta melakukan upaya kepada pemerintah pusat untuk mendapatkan perhatian khusus yaitu Pemprov Babel memiliki saham PT Timah Tbk dari saham Pemerintah Pusat di PT Timah Tbk, melalui PT Inalum Tbk sebagai perusahaan induk holding pertambangan, yakni sebesar 14 persen.

Selain itu, juga, meningkatkan royalti pen-jualan timah kepada daerah penghasil untuk mendukung program pembangunan di daerah kabupaten/kota di Bangka Belitung.

Dirjen Minerba Kementerian ESDM Ridwan Djamaluddin mengatakan secara resmi akan melaporkan hasil rapat hari ini ke Menteri ESDM. “Kami pun berusaha sekeras -kerasnya dengan semangat pemerataan pembangunan. Dan karena negara kita masih dalam satu NKRI, mari kita laksanakan dan selesaikan sebaik-baiknya,” ujarnya.

Pfizer's Corona Vaccine Works, Coal Prices Are Disturbed

Tirta Citradi, CNBC Indonesia

THE CONTRACT price for Newcastle

thermal coal earlier this week closed with a slight correction. The correction that has occurred this time is a natural thing, considering that the coal price has touched its highest level in seven months.

In trading on Monday (9/11/2020), the price of coal in the Newcastle thermal futures contract closed down 0.32% to US$ 62.15/ton. Last week the price closed at US$ 62.35/ton.

Vaksin Corona Pfizer Ces Pleng, Harga Batu Bara Terusik

Tirta Citradi, CNBC Indonesia

HARGA kontrak batu bara termal

Newcastle di awal pekan ini ditutup dengan koreksi tipis. Koreksi yang terjadi kali ini adalah hal yang wajar mengingat harga batu bara sudah menyentuh rentang level tertingginya dalam tujuh bulan.

Pada perdagangan hari Senin (9/11/2020), harga batu bara kontrak berjangka termal Newcastle ditutup melorot 0,32% ke US$ 62,15/ton. Pada pekan lalu harganya di-tutup di US$ 62,35/ton.

Daily News Update Page 23

Starting from October 13 until the end of last week, the contract price of coal has shot up by 16.2%. With this fantastic increase in less than a month making it prone to correction due to profit taking by traders.

There are several sentiments that will drive coal contract prices this week. First, of course, from the news of the Covid-19 vaccine made by Pfizer which is called effective and without side effects. This news is certainly positive news in the market that will raise investors' risk appetite.

The existence of an effective and safe vaccine will make the economy rise again. The energy and industrial sectors can also be excited. The positive news about vaccines will be a catalyst for coal prices.

However, there is still a long way to go for a safe and effective vaccine. Vaccines must be approved by the relevant health authorities first, massively produced and distributed globally.

To produce billions of doses of vaccine and distribute it to hundreds of countries until each country carries out a mass vaccination would take time. While the spike in cases due to Covid-19 in the US and Europe continued to increase, lockdowns were again widely implemen-ted.

So that if the lockdown is increasingly heard, this will offset the potential upward pressure on coal.

Apart from the two factors mentioned above, coal price movements are also influenced by supply in China. So far, the tight supply of Panda Country has made domestic coal prices soar. For information, Qinhuangdao thermal coal prices are still above the green zone.

Terhitung sejak 13 Oktober sampai akhir pekan lalu, harga kontrak batu bara telah melesat sebesar 16,2%. Dengan kenaikan fantastis tersebut dalam kurun waktu kurang dari satu bulan membuatnya rawan terkoreksi akibat aksi ambil untung oleh para trader.

Ada beberapa sentimen yang akan menjadi penggerak harga kontrak batu bara minggu ini. Pertama tentu dari kabar vaksin Covid-19 buatan Pfizer yang disebut ampuh dan tanpa efek samping. Kabar tersebut tentu menjadi berita positif di pasar yang bakal menaikkan risk appetite investor.

Keberadaan vaksin yang efektif dan aman bakal membuat ekonomi bangkit lagi. Sektor energi dan industri pun bisa bergairah. Kabar positif vaksin akan menjadi katalis bagi harga batu bara.

Namun jalan untuk mendapatkan vaksin yang aman dan ampuh masih panjang. Vaksin harus disetujui oleh otoritas kesehatan terkait dulu, diproduksi secara masif dan didistribusikan secara meng-global.

Untuk memproduksi miliaran dosis vaksin dan mendistribusikannya ke ratusan negara hingga setiap negara melakukan vaksinasi masal tentu memakan waktu. Sementara lonjakan kasus akibat Covid-19 di AS dan Eropa terus meningkat membuat lockdown kembali marak diterapkan.

Sehingga jika lockdown semakin santer terdengar, maka ini akan mengimbangi potensi tekanan ke atas terhadap batu bara.

Selain dua faktor di atas pergerakan harga batu bara juga dipengaruhi oleh pasokan di China. Selama ini ketatnya pasokan Negeri Panda membuat harga batu bara domestiknya melonjak. Sebagai informasi harga batu bara termal Qinhuangdao masih berada di atas zona hijau.

Daily News Update Page 24

The green zone is an informal target for the coal price range set by the government. The green zone is pegged at RMB 500 - RMB 570/ton. But now the price of thermal coal with 5,500 Kcal/Kg calories is priced at RMB 616/ton.

Under normal conditions, stun companies and other importers will switch to importing coal because local prices are already very high and have eroded margins. Just imagine, the price of imported seaborne coal is even US$ 35/ton cheaper than China's domestic coal.

However, China's import quota policy coupled with weak imports to the country in the last few months has made the coal market disconnected.

In the future, along with the arrival of winter and the adoption of a new import quota policy, it has the potential to increase prices.

"In the medium term, we still have a positive perception of the price of coal. Global demand will gradually increase, coupled with reduced production, will balance prices," said Toby Hassel, Refinitiv Analyst. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Zona hijau merupakan target informal rentang harga batu bara yang dipatok oleh pemerintah. Zona hijau dipatok di RMB 500 - RMB 570/ton. Namun kini harga batu bara termal berkalori 5.500 Kcal/Kg itu di-banderol RMB 616/ton.

Dalam kondisi normal perusahaan setrum dan importir lainnya akan beralih meng-impor batu bara karena harga lokal sudah sangat tinggi dan menggerus margin. Bayangkan saja, harga batu bara impor lintas laut (seaborne) bahkan lebih murah US$ 35/ton dibanding batu bara domestik China.

Namun adanya kebijakan kuota impor China ditambah dengan lemahnya impor ke negara tersebut beberapa bulan terakhir membuat pasar batu bara terdiskoneksi.

Ke depan, seiring dengan masuknya musim dingin dan penetapan baru kebijakan kuota impor berpotensi akan membuat harga ter-dongkrak.

"Dalam jangka menengah, kami masih berpersepsi positif terhadap harga batu bara. Permintaan global lambat laun akan mening-kat, yang dibarengi dengan pengurangan produksi, akan menyeimbangkan harga," sebut Toby Hassel, Analis Refinitiv. TIM RISET CNBC INDONESIA (twg/twg)

IEEFA Indonesia: DME coal gasification project could lose US$377 million annually

Investing in DME doesn’t make economic sense

A PROPOSED coal gasification plant for Sumatra could lose US$377 million dollars annually, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA).

Author and energy finance Analyst Ghee Peh says that with the COVID-induced economic contraction, this is not the time to be subsidizing a downstream energy project that doesn’t make economic sense.

Daily News Update Page 25

“Prices are now below break-

even for all but one of 11 listed

Indonesian coal companies,”

says Peh.

“Into this environment, sub-

sidizing a new loss-making coal

gasification plant to produce

DME would be hard to justify.”

State-owned Tambang Batubara

Bukit Asam’s (PTBA) is

proposing a US$2 billion coal

gasification plant to produce

methanol and subsequently dimethyl ether (DME). DME would then be used as a direct

substitute for Indonesia’s liquefied petroleum gas (LPG) imports.

IEEFA estimates that the proposed DME plant would lose US$377 million annually after

operating and finance costs. This would exceed any savings from lower LPG imports by US$19

million.

Peh says replacing LPG with DME does not make economic sense.

“Our calculations show the production cost of DME will be nearly twice that of current LPG

import price,” says Peh.

“The total per tonne cost of the DME plant would be US$470/tonne – nearly twice what

Indonesia pays for LPG imports, which is used mainly for household cooking.

“The Indonesian government, already bearing the brunt of calls for economic relief and bail-

out from the coal industry, does not need another project taking its bank balance into the

red.”

Peh notes the proposed DME project has already generated discussions around its economic

viability in a webinar ‘Indonesia Coal Downstream outlook – Where to go?’ held last week and

organised by Coal Asia and Petromindo.

“IEEFA would like to add to the debate,” says Peh. “Although technically viable, we estimate

annual losses of US$377 million. The DME project is not economically viable.

“Technical viability is not the same as economic viability. The DME project doesn’t make

economic sense.”

Daily News Update Page 26

Glencore awards Orica explosives contract Molly Hancock

ORICA has secured a five-year contract to deliver explosives technology and blasting services

for Glencore’s Australian copper and zinc operations.

Glencore’s Australian copper and zinc operations include the McArthur River in the Northern Territory, Lady Loretta, Mount Isa and Ernest Henry in Queensland and the CSA underground copper mine in New South Wales.

Glencore’s Ernest Henry mine in north-west Queensland will be the first mine to trial Orica’s fully wireless initiating system, WebGen, which completely eliminates the need for down-lines and surface connecting wires, communicates through rock, air and water.

Other Orica technologies that will be part of the contract include the BlastIQ digital blast optimisation suite of products and Bulkmaster 7 – a smart explosives delivery system.

Orica chief executive Alberto Calderon said the company was looking forward to partnering with Glencore across their Australian copper and zinc operations, with the deal effective from January 2021.

“We are delighted to be integrating our most advanced technologies and solutions to solve their more complex operational needs,” Calderon said.

“This deal shows Glencore’s confidence in our technology roadmap as well as aligning with their strategic vision for technology to deliver added value to their operations.”

Orica also has an existing supply agreement with Glencore’s nickel and cobalt operations at the Murrin Murrin operations in Western Australia.

Iron price jumps as Chinese imports continue at record pace MINING.COM Staff Writer

IRON ore prices surged on Monday as Chinese steelmakers continue to demand cargoes at a

record-breaking pace amid a building boom in the world’s second-largest economy.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $121.75 a tonne on Monday, a 3.4% jump from Friday’s closing, and up 32% since the start of the year.

Trade data released over the weekend showed China’s iron ore imports jumped 15% in October compared to the same month last year to 106.7 million tonnes.

Daily News Update Page 27

For the first 10 months of 2020, iron ore imports shipment now total 975.2 million tonnes, rising 11.2% over the same period last year.

At the current pace, 2020 full year total would handily beat last year’s 1.069 billion tonnes,

which was just below 2017’s record 1.075 billion tonnes.

Reuters reports port stockpiles have grown to 129m tonnes after six straight weeks of gains:

Meanwhile, as most mills have completed environmental upgrades to meet emission standards, steel producers in northern China are also expecting fewer disruptions to their

production this winter.

But with weaker seasonal demand in the fourth quarter and low profit margins for steelmakers, domestic demand may have peaked, CITIC Futures wrote in a note.

Cokal drafts in PT Harmoni Panca Utama for contract mining at BBM

coal project Posted by Daniel Gleeson

COKAL Limited has selected PT Harmoni Panca Utama (HPU) as the preferred tenderer to

provide contract mining services for the development and mining of Cokal’s BBM coal project in Indonesia.

Aahana Mineral Resources SDN BHD (Cokal’s largest shareholder), through its experience and influence in developing and operating coal assets in Indonesia, significantly contributed to the

selection process, Cokal said.

BBM is in the Central Province of Kalimantan, and is Cokal’s most advanced project. It has a mining lease area of 14,980 ha and a remit to produce premium coking coal and pulverised

coal injection products for the nearby Asia steel markets.

Through its Indonesian subsidiary, PT Bumi Barito Mineral, Cokal has agreed to contract HPU

for a period of five years to provide services such as open-pit overburden removal, provision of the required mining fleet and associated equipment, and coal hauling from in-pit to near-

out-of-pit intermediate stockpile facilities.

HPU, one of the largest mining services companies in Indonesia, Cokal says, has agreed to

mobilise upon receiving notice from Cokal to do so.

“The appointment of HPU remains subject to finalising formal contracts,” Cokal said. “However, Cokal’s commercial team have negotiated the key commercial terms, which are

substantially attractive for Cokal, thus providing the opportunity to achieve favourable profit margins to be enjoyed by Cokal shareholders.”

Daily News Update Page 28

Cokal Jakarta-based Director, Karan Bangur, said: “The team we have brought together at Cokal have extensive experience in the start-up and logistical solutions for coal mines in

Indonesia. They have first-hand experience with major contractors and have ensured this award has been concluded on competitive terms with a strong contractor.

“The use of contract mining enables reduction of upfront capital requirements for commencement of mining and expedites the development of BBM. The company looks

forward to working with HPU to maximise value from the production of premium export quality coking coal and PCI products.”

China coal imports from Australia cut in half Nickolas Zakharia

CHINA’s coal imports have dropped by 47 per cent in October compared with the

corresponding period last year as trade tensions with Australia worsened.

Coal imports last month amounted to just 13.73 million tonnes compared with 25.69 million tonnes in October 2019.

The sobering statistics for October arrived as China reportedly banned specific Australian imports including coal.

China’s October coal imports were also 26 per cent lower than in September.

According to IEA (International Energy Agency) Clean Coal Centre, Australia supplied more than 40 per cent of China’s coking coal imports and 57 per cent of the nation’s thermal coal last year.

China imported 253.16 million tonnes of coal from Australia between January and October compared with 299.67 million tonnes in 2019.

The news came as the Minerals Council of Australia released its New Frontiers research project, outlining opportunities for Australia to boost its mining exports in South and East Asia.

According to the research, energy demand is expected to skyrocket due to factors including population growth, urbanisation and infrastructure spending, with coal expected to provide 40-60 per cent of India’s energy until 2030 and beyond “because it’s the cheapest fuel available”.

Coal supplies more than half of Indian power stations, according to the report.

The MCA anticipates strong growth for coal in Southeast Asia in the 2020s, stating that shipping coal from Australia can often be cheaper than domestic transportation in India.

Daily News Update Page 29

Mitsui E&S restarts build of money-bleeding Indonesian coal plant Coronavirus-induced losses will not exceed existing reserves, CEO says

ANNU NISHIOKA, Nikkei staff writer

MITSUI E&S Holdings has resumed construction of a coal-fired power plant in Indonesia that

was halted earlier this year in response to the global spread of the coronavirus.

The Japanese engineering company was supposed to finish building two 1,000-megawatt facilities by November. Though Mitsui E&S decided to resume construction in September, it is expected to miss this deadline.

Mitsui E&S has already lost 150 billion yen ($1.45 billion) on the project since signing the deal in 2012, following setbacks caused by a defective pipe discovered in 2018. Further losses are likely due to the pandemic-induced delay, but the company thinks the 74.6 billion yen remaining in reserves is more than enough to offset the blow.

"We are still determining the exact monetary impact, but it can be covered by reserves we have already put aside," CEO Ryoichi Oka said in a phone conference on Monday. "We have not experienced a shortage in the necessary materials or workers" for the Indonesian plant.

Mitsui E&S logged a 9% decrease in group revenue on the year to 324.2 billion yen for the six months through September, partly from its sale of Showa Aircraft Industry. With its reserves cushioning the blow from the Indonesian coal plant, the company's net loss for the period totaled 4 billion yen, an improvement from its 66.4 billion yen loss a year earlier.

For the full year, Mitsui E&S has maintained its forecast of a 20% drop in revenue to 630 billion yen. It expects to break even on a net basis, as opposed to an 86.2 billion yen loss the year before.