Daily News Update Page 1

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Smelter is detrimental, Freeport boss: PT Smelting has only given dividends after 20 years Smelter merugikan, Bos Freeport: PT Smelting saja baru beri deviden setelah 20 tahun

Shifted from the Largest Indonesian Nickel Producer, Here's Vale's Response Tergeser dari Produsen Nikel Terbesar RI, Begini Respons Vale

DEWA Records OB Volume of 86.03 Million Bcm until September 2020 DEWA Catatkan Volume OB 86,03 Juta Bcm hingga September 2020

Indonesia Reveals $12b Plan to Create Electric Car Battery Giant

Adaro Energy (ADRO) has no plans to increase its export portion to China, why? Adaro Energy (ADRO) belum berencana tambah porsi ekspor ke China, kenapa?

Different from nickel, why is the downstream copper industry not working? Beda dari Nikel, Kenapa Sih Industri Hilir Tembaga Gak Jalan?

Project Investment Reaches US$ 12 Billion - Antam is working on the Indonesia Battery Holding Project Investasi Proyek Capai US$ 12 Miliar - Antam Garap Proyek Indonesia Battery Holding Shadowed by La Nina, United Tractors (UNTR) believes that performance is maintained Dibayangi La Nina, United Tractors (UNTR) Pede Kinerja Tetap Terjaga

Get fresh air from the omnibus law, this is a recommendation from analysts for coal issuers Dapat angin segar dari omnibus law, ini rekomendasi analis bagi emiten batubara

Kontan

CNBC Indonesia

Bisnis

Jakarta Globe

Kontan

CNBC Indonesia

Neraca Bisnis

Kontan

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Daily News Update Page 2

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Want to be king of electric car batteries, this is RI's nickel wealth Mau Jadi Raja Baterai Mobil Listrik, Ini Kekayaan Nikel RI Government Asked to Prepare Industry to Absorb Nickel Pemerintah Diminta Siapkan Industri untuk Serap Nikel Vale (INCO) and Antam (ANTM) Expansion HPAL Nickel Smelter Worth Trillions Vale (INCO) dan Antam (ANTM) Ekspansi Smelter Nikel HPAL Bernilai Triliunan The Capacity of Copper Smelters in Indonesia Is Still Underdeveloped Kapasitas Smelter Tembaga di Indonesia Masih Tertinggal Government Develops 7 Coal Downstreaming Schemes, From Gas to Briquettes Pemerintah Kembangkan 7 Skema Hilirisasi Batu Bara, Dari Gas hingga Briket Cokal secures funding for BBM Thiess to continue operations at BMA Caval Ridge coal mine Newcrest shares solid as it starts trading in Canada China coal supplies to tighten this winter on import curbs, strong demand Whitehaven to delay key projects amid coal slump BHP confirms Chinese customers have cancelled orders for Australian coal

CNBC Indonesia Dunia Energi Bisnis CNN Indonesia Inews.id Mining Weekly Int'l Mining Mining.com Reuters Australian Mining The New Daily

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Daily News Update Page 3

Smelter is detrimental, Freeport boss: PT Smelting has only

given dividends after 20 years Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PRESIDENT Director of PT Freeport Indonesia (PTFI) Tonny Wenas again revealed that the copper smelter project is not economical. Tony calculated that there was a loss of around US$ 300 million per year that had to be borne when the PTFI copper smelter project was built.

He explained that the main income for the smelter came from Treatment Charge and Refining Charge (TCRC). With a smelter capacity of 2 million tons of copper concentrate per year and an investment of US$ 3 billion, the TCRC value needed to make it economical must be at US$ 52 cents per pound.

However, the TCRC value is currently only around US$ 26 cents per pound of copper, and is projected to stagnate in the next few years. This means that there is a loss of US$ 26 cents per pound of copper. In his calculations, the difference is equivalent to a loss of US$ 300 million per ton.

"Miners provide subsidies of US$ 300 million per year. This will have an impact on shareholders, for the government it will also have an impact," Tony said in a webinar held on Wednesday (14/10).

Furthermore, he said that copper cathode products from PTFI's smelters had to be exported. This is because 50% of production from the current copper smelter, namely PT Smelting, is able to meet the needs of the domestic industry. "With this the US$ 300 million subsidy will also be exported," added Tony.

Smelter merugikan, Bos Freeport: PT Smelting saja baru beri deviden setelah 20 tahun Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PRESIDEN Direktur PT Freeport Indonesia

(PTFI) Tonny Wenas kembali membeberkan tidak ekonomisnya proyek smelter tembaga. Hitungan Tony, ada kerugian sekitar US$ 300 juta per tahun yang harus ditanggung saat proyek smelter tembaga PTFI itu dibangun.

Dia membeberkan, pendapatan utama smelter datang dari Treatment Charge and Refining Charge (TCRC). Dengan kapasitas smelter 2 juta ton konsentrat tembaga per

tahun dan menelan investasi sebesar US$ 3 miliar, nilai TCRC yang dibutuhkan agar ekonomis mesti di angka US$ 52 sen per pon.

Namun, nilai TCRC saat ini hanya di kisaran

US$ 26 sen per pon tembaga, dan diproyeksi-kan stagnan dalam beberapa tahun ke depan. Artinya, ada kerugian atau loss sebesar US$ 26 sen per pon tembaga. Dalam perhitungannya, selisih tersebut setara dengan kerugian US$ 300 juta per ton.

"Penambang memberikan subsidi US$ 300

juta per tahun. Ini akan berdampak bagi pemegang saham, bagi pemerintah juga akan berdampak," kata Tony dalam webinar yang digelar Rabu (14/10).

Lebih lanjut, dia bilang bahwa produk katoda tembaga dari smelter PTFI juga terpaksa akan diekspor. Pasalnya, 50% produksi dari smelter tembaga yang ada sekarang, yakni PT Smelting sudah mampu memenuhi kebutuhan industri dalam negeri. "Dengan begitu subsidi US$ 300 juta itu juga ikut diekspor," imbuh Tony.

Daily News Update Page 4

Just so you know, until September 2020, PTFI's copper smelter progress has only reached 5.86%. As of August 2020, the project, which is located in JIIPE Gresik, East Java, has absorbed an investment of around US$ 303 million.

Now the smelter project is still hampered due to the corona virus pandemic or Covid-19. "Because our main suppliers, from Finland, Canada and Japan, are very affected (Covid-19)," said Tony.

Even so, he emphasized that PTFI will still work on the copper smelter as agreed in the Special Mining Business Permit (IUPK) he pocketed in December 2018.

"We are committed as agreed, so we will continue to build a new smelter," said Tony.

Furthermore, Tony explained that the current smelter construction conditions are different from during the construction of the first copper smelter by PT Smelting. Regarding PT Smelting, Tony said that even though it generates profits, the profits generated are only marginal.

As an illustration, PT Smelting was only able to generate dividends after 20 years of operation. "PT Smelting after 20 years of operation has just started paying dividends and is very marginal," he said.

He explained that the initial assumption for smelter construction was promising. The assumption is based on projected rising demand growth and maintained supply from copper smelters.

However, smelters became uneconomical after the rampant construction of copper smelters in China resulted in oversupply.

"At that time, the world smelter capacity was not yet what it is today. Currently China is...

Asal tahu saja, hingga September 2020, progres smelter tembaga PTFI baru men-capai 5,86%. Hingga Agustus 2020, proyek yang berlokasi di JIIPE Gresik, Jawa Timur itu sudah menyerap investasi sekitar US$ 303 juta.

Kini proyek smelter tersebut masih terhambat karena adanya pandemi virus corona atawa Covid-19. "Karena para pemasok utama kami, dari Finlandia, Kanada dan Jepang sangat terdampak (Covid-19)," ungkap Tony.

Kendati begitu, dia menegaskan bahwa PTFI tetap akan mengerjakan smelter tembaga sebagaimana kesepakatan yang tertuang pada Izin Usaha Pertambangan Khusus (IUPK) yang dikantonginya pada Desember 2018 lalu.

"Kami komitmen sebagaimana yang di-sepakati, jadi tetap pembangunan smelter baru akan kami lanjutkan," ucap Tony.

Lebih lanjut, Tony membeberkan bahwa kondisi pembangunan smelter saat ini berbeda dengan saat masa pembangunan smelter tembaga pertama oleh PT Smelting. Mengenai PT Smelting, Tony menyebut bahwa sekalipun menghasilkan laba, namun keuntungan yang dihasilkan hanya marginal.

Sebagai gambaran, PT Smelting saja baru bisa menghasilkan dividen setelah 20 tahun beroperasi. "PT Smelting setelah 20 tahun beroperasi baru mulai bayar dividen dan sangat marginal," ungkapnya.

Dia menjelaskan, asumsi awal pembangunan smelter memang menjanjikan. Asumsi itu berdasarkan proyeksi pertumbuhan per-mintaan yang meningkat serta pasokan dari smelter tembaga yang terjaga.

Namun, smelter menjadi tidak ekonomis setelah maraknya pembangunan smelter tembaga di China sehingga terjadi over-supply.

"Pada saat itu kapasitas smelter dunia belum seperti sekarang. Saat ini China...

Daily News Update Page 5

Currently China is diligently building copper smelters in 2003-2004. This is how overcapacity started to occur. That's the background," Tony continued.

Apart from that, the movement of the TCRC value was also stagnant. Tony said that the TCRC in 1995 was at US$ 18 cent per pound. That value hasn't changed much until now.

In fact, the price of copper has shot up, from US$ 60 cents per pound in the late 1990s to US$ 62 cents in early 2000. "Now the copper price is US$ 3, but TCRC is still US$ 18 cents," said Tony.

This condition was agreed by the Senior Technical External Manager of PT Smelting Bouman T Situmorang. According to him, the initial assumption when building a smelter is considered profitable. It's just that, the start of the rise of copper smelters in China has actually dropped the TCRC value.

"Smelters are now a bit choked up due to economic calculations," said Bouman.

Regarding profits and dividend distribution, Bouman also admitted that PT Smelting has only given four times to shareholders. Established since 1996 and started commercial production on May 5, 1999, PT Smelting only started to distribute dividends in 2014.

"Early 2014, jump to 2017, not every year shareholders receive dividends," he said.

For information, PT Smelting's copper smelter was built based on PTFI's obligations under its Contract of Work (COW). PT Smelting shares are held 60.5% by Mitsubishi Materials Corp., PTFI 25%, Mitsubishi Copporation Japan Ltd. 9.5% and JX Nippon Mining & Metals Corp. as much as 5%.

Saat ini China rajin bangun smelter tembaga di 2003-2004. Ini lah mulai ter-jadi over capacity, Itu latar belakangnya," sambug Tony.

Selain itu, pergerakan nilai TCRC juga stagnan. Tony menyampaikan, TCRC pada tahun 1995 berada di angka US$ 18 cent per pound. Nilai itu tak banyak berubah hingga sekarang.

Padahal, harga tembaga sudah melesat, dari US$ 60 sen per pon di akhir tahun 1990-an dan menjadi US$ 62 sen pada awal 2000. "Sekarang harga tembaga US$ 3, tapi TCRC tetap US$ 18 sen," kata Tony.

Kondisi itu diamini oleh Senior Manager Technical Eksternal PT Smelting Bouman T Situmorang. Menurutnya, asumsi awal saat pembangunan smelter dinilai mengun-tungkan. Hanya saja, mulai maraknya smelter tembaga di China malah men-jatuhkan nilai TCRC.

"Smelter sekarang agak tersendat karena hitung-hitungan ekonomi," ungkap Bouman.

Mengenai keuntungan dan pembagian dividen, Bouman juga mengakui bahwa PT Smelting baru memberikan 4 kali ke pemegang saham. Mulai didirikan sejak tahun 1996 dan mulai produksi komersial pada 5 Mei 1999, PT Smelting baru mulai membagi dividen pada tahun 2014.

"Awal 2014, loncat ke 2017, nggak setiap tahun pemegang saham mendapat dividen," ungkapnya.

Sebagai informasi, smelter tembaga PT Smelting dibangun atas kewajiban PTFI dalam Kontrak Karya (KK). Saham PT Smelting dipegang 60,5% oleh Mitsubishi Materials Corp., PTFI 25%, Mitsubishi Copporation Japan Ltd. 9,5% dan JX Nippon Mining & Metals Corp. sebanyak 5%.

Daily News Update Page 6

Shifted from the Largest Indonesian Nickel Producer,

Here's Vale's Response Anisatul Umah, CNBC Indonesia

PT INDONESIA Morowali Industrial Park

(IMIP) has replaced PT Vale Indonesia Tbk (INCO) to become the largest nickel producer in Indonesia since 2018, although in 2014 Vale's contribution to national nickel metal production reached 77%.

In response to this, Deputy CEO of PT Vale Indonesia, Febriany Eddy, said that this did not disturb the company because Vale was not focused on becoming the largest

producer in the country.

According to her, Vale does not only look at volume, but also several other important aspects such as employee safety, profit, and business sustainability.

Likewise from a market perspective, according to her, the goods produced by Vale are exported to Japan, so that they do not compete for market share with other producers in Indonesia.

"Our business strategy is not focused on being the largest producer. If we look at Morowali over Vale, we don't just look at volume," she said in an interview with CNBC Indonesia, Wednesday (14/10/ 2020).

She further said that with the strategic resources and reserves in Vale's contract of work, his party plans to invest in the Pomalaa smelter project, Southeast

Sulawesi and Bahodopi, Central Sulawesi.

Tergeser dari Produsen Nikel Terbesar RI, Begini Respons

Vale Anisatul Umah, CNBC Indonesia

PT INDONESIA Morowali Industrial Park (IMIP) telah menggantikan posisi PT Vale Indonesia Tbk (INCO) menjadi produsen logam nikel terbesar di Indonesia sejak 2018, meski pada 2014 kontribusi Vale terhadap produksi logam nikel nasional mencapai 77%.

Menanggapi hal ini, Deputy CEO PT Vale Indonesia Febriany Eddy mengatakan hal tersebut tidak mengganggu perusahaan karena Vale tidak berfokus untuk menjadi produsen terbesar di negara ini.

Menurutnya, Vale tidak hanya melihat volume, namun juga beberapa aspek penting lainnya seperti keselamatan kerja karyawan, keuntungan, dan keberlanjutan usaha (sustainability).

Begitu juga dari perspektif pasar, menurutnya barang yang diproduksi oleh Vale itu diekspor ke Jepang, sehingga tidak berebut pangsa pasar dengan produsen lainnya di Indonesia.

"Strategi bisnis kami tidak fokus menjadi produsen terbesar. Kalau dilihat Morowali di atas Vale ya kita tidak hanya melihat volume," paparnya dalam wawancara bersama CNBC Indonesia, Rabu, (14/10/ 2020).

Lebih lanjut dia mengatakan, dengan sumber daya dan cadangan di kontrak karya Vale yang sangat strategis, pihaknya berencana investasi di proyek smelter Pomalaa, Sulawesi Tenggara dan Bahodopi, Sulawesi Tengah.

Daily News Update Page 7

She said that the new smelter in Bahodopi, the company will partner with companies from China. This smelter will produce ferronickel and nickel pig iron (NPI) which can be processed into stainless steel.

Meanwhile in Pomalaa, the High Pressure Acid Leaching (HPAL) smelter will partner with a Japanese company, Sumitomo Metal Mining Co. Ltd (SMM). The products from the HPAL smelter will be suitable as raw material for batteries.

In addition, Vale also plans to expand at the existing smelter in Sorowako, South Sulawesi with an additional capacity of around 10 thousand tons of nickel matte from the current capacity of around 73 thousand tons.

"These three projects are very big. We are aware that they have to go through a partnership. We are currently completing negotiations with our partners and the licensing and financing process because these three things need time," she explained.

She said the investment required for the three projects reached US$ 5 billion. However, the investment will be carried out together with partners, not just the Vale portion. In these two joint venture projects, according to her, Vale will be a minority holder.

"The investment needed for the total smelters in Pomalaa and Bahodopi which will form a JV with partners, coupled with the Sorowako smelter expansion project, reaches US$ 5 billion. The total investment is not only from Vale itself," she explained.

Previously, the Special Staff of the Minister of EMR for Mineral and Coal Management Irwandy Arif said IMIP is now the biggest player in the Indonesian nickel industry with a percentage of even reaching 50% since 2018. According to him, this shows the development of the nickel industry in the country is changing very quickly.

Dia mengatakan, smelter baru di Bahodopi ini, perusahaan akan bermitra dengan perusahaan asal China. Smelter ini akan memproduksi feronikel dan juga nickel pig iron (NPI) yang bisa diolah menjadi stainless steel.

Sementara di Pomalaa yakni smelter High Pressure Acid Leaching (HPAL) yang akan bermitra dengan perusahaan asal Jepang yakni Sumitomo Metal Mining Co. Ltd (SMM). Adapun produk dari smelter HPAL ini akan cocok dijadikan bahan baku baterai.

Selain itu, Vale juga berencana melakukan ekspansi di smelter yang telah ada di Sorowako, Sulawesi Selatan dengan kapasitas tambahan sekitar 10 ribu ton nickel matte dari kapasitas saat ini sekitar 73 ribu ton.

"Tiga projek ini besar sekali. Kita sadar harus lewat partnership. Saat ini sedang merampungkan negosiasi dengan partner kami dan proses perizinan dan financing karena tiga hal itu perlu waktu," jelasnya.

Dia mengatakan, investasi yang dibutuhkan untuk ketiga proyek itu mencapai US$ 5 miliar. Namun investasi tersebut akan dilakukan bersama dengan mitra, bukan hanya porsi Vale. Di kedua projek patungan ini, menurutnya Vale akan menjadi peme-gang minoritas.

"Untuk kebutuhan investasi dari total smelter di Pomalaa dan Bahodopi yang akan membentuk JV dengan partner, ditambah dengan proyek ekspansi smelter Sorowako, itu mencapai US$ 5 miliar. Total investasi itu bukan hanya dari Vale sendiri," jelasnya.

Sebelumnya, Staf Khusus Menteri ESDM Bidang Tata Kelola Mineral dan Batubara Irwandy Arif mengatakan IMIP kini menjadi pemain terbesar di industri nikel Indonesia dengan persentase bahkan mencapai 50% sejak 2018. Menurutnya, hal ini menunjuk-kan perkembangan industri nikel di Tanah Air berubah sangat cepat.

Daily News Update Page 8

Based on Irwandy's presentation data, in 2014 the nickel industry was sti ll controlled by Vale by 77%, followed by PT Aneka Tambang Tbk (ANTM) at 19% and others 3%. It didn't take long to change the composition, in 2018 the nickel industry was directly controlled by the Indonesia Morowali Industrial Park (IMIP).

Since 2018, IMIP is said to have controlled 50%, followed by PT Vale Indonesia Tbk which fell to 22%, Virtue Dragon 11%, Harita 6%, Antam also fell to only 5%, and others by 6%.

"If you look at it from here, the development we need to pay attention to is that in 2014 the nickel industry was controlled by Vale 77% and Antam 19% and others 3%, but in 2018 IMIP controlled 50% and Vale fell to 22%," he said.

Irwandy said, with the same composition that changed drastically from 2014 to 2018, he projected that the same conditions would repeat itself in the future, namely in 2023. He predicted the composition of the nickel industry in 2023 would also change drastically.

"In 2023 the composition will definitely change drastically," he said. (wia)

Berdasarkan data pemaparan Irwandy, pada 2014 industri nikel masih dikuasai Vale sebesar 77%, lalu disusul PT Aneka Tambang Tbk (ANTM) sebesar 19% dan lainnya 3%. Tak butuh waktu lama dalam mengubah komposisi, pada 2018 industri nikel langsung dikuasai oleh Indonesia Morowali Industrial Park (IMIP).

Sejak 2018, IMIP disebutkan menguasai sebesar 50%, lalu disusul PT Vale Indonesia Tbk yang turun menjadi sebesar 22%, Virtue Dragon 11%, Harita 6%, Antam juga turun menjadi hanya 5%, serta lainnya sebesar 6%.

"Kalau lihat dari sini, yang perkembangan-nya perlu kita cermati yaitu bahwa pada 2014 industri nikel dikuasai Vale 77% dan Antam 19% dan lainnya 3%, tapi pada 2018 IMIP menguasai 50% dan Vale turun jadi 22%," tuturnya.

Irwandy mengatakan, sama dengan komposisi yang berubah drastis dari 2014 ke 2018, dia memproyeksikan kondisi yang sama akan berulang di masa depan, yakni pada 2023. Dia memperkirakan komposisi industri nikel pada 2023 juga akan ber-ubah drastis.

"Tahun 2023 komposisinya pasti akan berubah drastis," ujarnya. (wia)

DEWA Records OB Volume of 86.03 Million Bcm until

September 2020 Finna U. Ulfah

MINING contractor issuer, PT Darma Henwa Tbk., Recorded an overburden removal (OB) volume of 86.03 million bcm until September 2020.

DEWA Catatkan Volume OB 86,03 Juta Bcm hingga

September 2020 Finna U. Ulfah

EMITEN kontraktor pertambangan, PT Darma Henwa Tbk., mencatatkan volume pengupasan lapisan tanah atau overburden removal (OB) sebesar 86,03 juta bcm hingga September 2020.

Daily News Update Page 9

Darma Henwa Mukson Corporate Secretary Arif Rosyidi said that the realization was successful in increasing by 4.02 percent compared to the achievement of OB in the same period last year.

Meanwhile, the largest contribution to the Company's OB volume came from the Bengalon coal project or Bengalon Coal Project/BCP, amounting to 60.36 million bcm for the period January to September 2020 or 70.17 percent of the company's total OB production.

"With the achievement of OB production volume from January to September 2020 of 86.03 million bcm, and hoping that the weather conditions in the next three months will be quite conducive, we hope that the achievement by the end of the year can improve," Mukson told Bisnis, Wednesday night (14/10/2020).

The issuer coded DEWA share s also revealed that it will use several strategies in order to record positive growth in both operational and financial performance.

These strategies include improving the performance of production equipment, implementing a more effective and efficient design and mining sequencing.

Not only that, DEWA will increase productivity and reduce fuel consumption by improving the quality of the mine road, reducing the slope of the mine road, and opening up a more efficient waste dump area.

On the other hand, Mukson admitted that until now the company is still participating in several tender opportunities for the provision of mining services to several potential clients.

"However, at this time we cannot convey it because it is still in the process of discussion or stages," said Mukson. Editor: Hadijah Alaydrus

Sekretaris Perusahaan Darma Henwa Mukson Arif Rosyidi mengatakan bahwa realisasi itu berhasil naik sebesar 4,02 persen dibandingkan dengan pencapaian OB pada periode yang sama tahun lalu.

Adapun, kontribusi terbesar volume OB Perseroan berasal dari proyek batubara Bengalon atau Bengalon Coal Project/BCP yaitu sebesar 60,36 juta bcm untuk periode Januari hingga September 2020 atau sebesar 70,17 persen dari total produksi OB perseroan.

“Dengan capaian volume produksi OB Januari – September 2020 sebesar 86,03 juta bcm, dan berharap kondisi cuaca di tiga bulan mendatang cukup kondusif, maka kami berharap pencapaian sampai dengan akhir tahun dapat membaik,” ujar Mukson kepada Bisnis , Rabu malam (14/10/2020).

Emiten berkode saham DEWA itu pun mengungkapkan akan menggunakan bebe-rapa strategi agar dapat membukukan pertumbuhan positif baik unutk kinerja operasional maupun keuangan.

Strategi tersebut antara lain, meningkat-kan kinerja alat produksi, menerapkan desain dan mining sequencing yang lebih efektif dan efisien.

Tidak hanya itu, DEWA akan meningkatkan produktivitas dan mengurangi konsumsi bahan bakar dengan meningkatkan kualitas jalan tambang, mengurangi tingkat kemiringan jalan tambang, dan membuka area waste dump yang lebih efisien.

Di sisi lain, Mukson mengaku hingga saat ini perseroan masih terus berpartisipasi dalam beberapa kesempatan tender untuk penyediaan jasa pertambangan di bebe-rapa klien potensial.

“Namun demikian, saat ini kami belum bisa menyampaikannya karena masih dalam proses pembahasan atau tahapan,” papar Mukson. Editor : Hadijah Alaydrus

Daily News Update Page 10

Indonesia Reveals $12b Plan to Create Electric Car Battery Giant BY : RANGGA PRAKOSO

INDONESIA Asahan Aluminium, the state-owned mining holding company, has unveiled a $12 billion plan to create an integrated electric vehicle battery industry called Indonesia Baterai to spearhead its effort to become a global player in the green energy technology.

The company, also known by its trading name Mining Industry Indonesia (Mind ID), signed up its nickel miner subsidiary Aneka Tambang and the state energy firm Pertamina and utility company Perusahaan Listrik Negara (PLN) to set up Indonesia Baterai, Orias Petrus Moedak, Mind ID's president director, said on Tuesday.

"Mind ID and Antam will handle the upstream mining sector. Meanwhile, the intermediate to downstream products are managed by Pertamina and PLN," Orias said.

He said partners from China and South Korea had expressed their interest to work with the consortium. Orias did not identify the prospective partners citing the discussions that have yet to conclude.

"There are two potential partner companies interested to invest in mining to making battery packs. One project worth $5 billion while the other is $7 billion," Orias said.

"All is being discussed right now, and hopefully, it will conclude soon," Orias said.

He said the projects would draw its funding from shareholder equity, local bank loans, or global bonds as a last resort. "Hopefully, the local banks would support us. It will be a different set of issues we borrow from abroad too often," Orias said.

Mind ID already borrows heavily from abroad to finance Indonesia's takeover of Freeport Indonesia, the country's largest gold miner. In May, the company raised $2.5 billion from selling global bonds to refinance debts and fund the acquisition of 20 percent shares in Vale Indonesia, a nickel producer.

Orias said Indonesia Baterai would build an electric vehicle battery factory in North Maluku or North Konawe, with an estimated $3 billion cost. Mind ID now controlled about 30.4 percent of Indonesia's nickel reserves, ensuring ample raw material availability for the battery plant.

Orias said he hoped other businesses would capture this opportunity to develop Indonesia's electric vehicles industry. "If we make a battery at a reasonable price and then only export them, then we just indirectly subsidize the foreigners," Orias said.

Ridwan Djamaluddin, the director-general of mineral and coal at the Energy and Mineral Resources Ministry, said the government has begun developing the downstream industry.

"We are not only talking here and there but looking for players that can really develop the industry," he said.

Daily News Update Page 11

Adaro Energy (ADRO) has no plans to increase its export

portion to China, why? Reporter: Dityasa H. Forddanta | Editor:

Herlina Kartika Dewi

CHINA stopped importing coal from Australia. However, this does not mean additional opportunities for coal issuers who have a portion of exports for the bamboo curtain country.

For example, PT Adaro Energy Tbk (ADRO). This company cannot auto-matically increase the volume of exports to China.

The reason is, the sale of ADRO is a long-term sales contract. "Our sales volume has also been adjusted to production," Mahardika Putranto, Head of Corporate Secretary & Investor Relations told Kontan.co.id, Wednesday (14/10).

So, ADRO still maintains its operational performance guidelines this year. ADRO targets its coal production to reach 52 million tons-54 million tons by the end of this year, down about 10 percent from last year's realization.

Mahardika added that China's economic activity has recently improved. This is reflected in the number of coal imports which rose 15% on an annual basis to 136 million tonnes during the half of this year.

"However, there are still concerns that there will be restrictions on imports from China until the end of the year," said Mahardika.

Until the first semester yesterday, ADRO's coal production decreased 4% on an annual basis to 27.29 million tons. Its sales volume decreased...

Adaro Energy (ADRO) belum berencana tambah porsi ekspor

ke China, kenapa? Reporter: Dityasa H. Forddanta | Editor:

Herlina Kartika Dewi

CHINA menghentikan impor batubara dari Australia. Namun, hal ini bukan berarti peluang tambahan bagi emiten batubara yang memiliki porsi ekspor untuk negeri tirai bambu tersebut.

Sebagai contoh, PT Adaro Energy Tbk (ADRO). Perusahaan ini tak bisa serta-merta menambah volume ekspor ke China.

Pasalnya, penjualan ADRO merupakan kontrak penjualan jangka panjang. "Volume penjualan kami juga sudah di-sesuaikan dengan produksi," ujar Mahardika Putranto, Head of Corporate Secretary & Investor Relations kepada Kontan.co.id, Rabu (14/10).

Sehingga, ADRO masih mempertahankan panduan kinerja operasionalnya tahun ini. ADRO menargetkan produksi batubaranya sebesar 52 juta ton-54 juta ton hingga akhir tahun ini, turun sekitar 10% dari realisasi tahun lalu.

Mahardika menambahkan, aktivitas eko-nomi China belakangan memang membaik. Hal ini tercermin dari angka impor batu-bara yang naik 15% secara tahunan menjadi 136 juta ton sepanjang paruh waktu tahun ini.

"Namun, tetap ada kekhawatiran akan ada-nya pembatasan impor dari China hingga akhir tahun," tandas Mahardika.

Hingga semester pertama kemarin, pro-duksi batubara ADRO turun 4% secara tahunan menjadi 27,29 juta ton. Volume penjualannya turun...

Daily News Update Page 12

Its sales volume decreased 6% to 27.13 million tons. Of this sales volume, 14% is a portion of sales to China.

With this target, ADRO hopes to be able to obtain operational EBITDA of between US$ 600 million to US$ 800 million. Even so, this value also fell 33%-50% compared to last year's realization.

This decrease is in line with the

anticipation of a decrease in the average selling price (ASP) of coal by the end of the year.

"Market conditions are currently weak. However, we are optimistic about the long-term fundamentals of the thermal coal market because regions such as Southeast Asia and South Asia continue to seek improvements in the electricity sector," Mahardika explained.

Volume penjualannya turun 6% menjadi 27,13 juta ton. Dari volume penjualan ini, sebesar 14% merupakan porsi penjualan ke China.

Dengan target tersebut, ADRO berharap mampu memperoleh EBITDA operasional antara US$ 600 juta hingga US$ 800 juta. Meski begitu, nilai ini juga turun 33%-50% dibanding realisasi tahun lalu.

Penurunan ini seiring dengan antisipasi turunnya rata-rata harga jual atau average selling price (ASP) batubara hingga akhir tahun.

"Kondisi pasar saat ini sedang lemah. Tapi, kami optimistis dengan fundamental jangka panjang pasar batu bara termal karena wilayah seperti Asia Tenggara dan Asia Selatan terus mengupayakan peningkatan di sektor ketenagalistrikan," terang Mahardika.

Different from nickel, why is the downstream copper industry not

working? Anisatul Umah, CNBC Indonesia

COPPER downstream in Indonesia does

not appear to have developed much when

compared to other mineral commodities

such as nickel, which since the last few

years have started operating a number of

nickel smelters.

Seeing this condition, the government

continues to encourage copper mining

companies to build smelters in the country.

Beda dari Nikel, Kenapa Sih Industri Hilir Tembaga Gak

Jalan? Anisatul Umah, CNBC Indonesia

HILIRISASI tembaga di Indonesia terlihat

tidak begitu berkembang bila dibanding-

kan dengan komoditas mineral lain seperti

nikel yang sejak beberapa tahun terakhir

sejumlah smelter nikel mulai beroperasi.

Melihat kondisi ini, pemerintah pun terus

mendorong agar perusahaan tambang

tembaga juga membangun smelter di

dalam negeri.

Daily News Update Page 13

Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of Energy and Mineral Resources (ESDM) Ridwan Djamaluddin said the downstream copper industry needs to be developed so that it has added value for the country.

He admitted that the downstream copper commodity has not yet been carried out by a number of parties that Indonesia only continues to sell its homeland, because it only digs and sells, it has not reached the downstream sector.

"As often quipped by many parties, we often sell our country, dig and sell, this is the paradigm we want to convert to value-added commodities," he said in the Webinar 'The Future of Indonesia's Copper Downstreaming', Wednesday (14/10/ 2020).

He further said that to increase the added value required capital in the form of investment. According to him, this condition is not easy for business entities, because there must be a careful calculation of every penny spent.

Likewise with the government, every penny that is not earned must be counted because this is a right of the community. The balance between business entity and government must be sought together.

"This balance is what we are looking for. The difference is that we want the long value-added process to have an impact as much as possible. Increase added value, employment and independence," he said.

The mindset of finding a balance between business entities and the government is still not being done much. He wants to have a balance in the mindset of the corporate count with the mindset of the balance of the state.

Direktur Jenderal Mineral dan Batubara (Dirjen Minerba) Kementerian Energi dan Sumber Daya Mineral (ESDM) Ridwan Djamaluddin mengatakan industri hilir tembaga perlu dikembangkan agar me-miliki nilai tambah bagi negara.

Dia mengakui, belum jalannya hilirisasi komoditas tembaga ini kerap disindir oleh sejumlah pihak bahwa Indonesia hanya terus menjual tanah air, karena hanya menggali dan menjual, belum sampai ke sektor hilir.

"Sebagaimana sering disindir banyak pihak, kita sering jual tanah air, gali jual, ini paradigma yang ingin kita alihkan menjadi (komoditas) bernilai tambah," ungkapnya dalam Webinar 'Masa Depan Hilirisasi Tembaga Indonesia', Rabu (14/10/2020).

Lebih lanjut dia mengatakan, untuk me-ningkatkan nilai tambah diperlukan modal berupa investasi. Kondisi ini menurutnya memang tidak mudah bagi badan usaha, karena harus ada perhitungan matang dari setiap sen yang dikeluarkan.

Pun demikian dengan pemerintah, setiap sen yang tidak didapatkan harus dihitung karena ini merupakan hak dari masya-rakat. Keseimbangan badan usaha dan pemerintah harus dicari bersama.

"Keseimbangan ini yang kita cari. Per-bedaanya adalah kita ingin agar proses nilai tambah yang panjang itu sebisa mungkin berikan dampak. Meningkatkan nilai tambah, lapangan kerja, dan keman-dirian," ungkapnya.

Pola pikir mencari keseimbangan antara badan usaha dan pemerintah saat ini masih belum banyak dilakukan. Pihaknya ingin adannya keseimbangan pola pikir hitungan korporasi dengan pola pikir keseimbangan negara.

Daily News Update Page 14

Law No.3 of 2020 concerning Mineral and Coal Mining (Minerba Law), he added, further strengthens and confirms the downstreaming of added value of copper to be something that must be done.

"It is done well for the government who asks it to be obliged and industry players to implement it well," he said.

As is known, currently there is only one large copper smelter operated by PT Smelting, a joint venture company between PT Freeport Indonesia and Mitsubishi that has been built since 1996 in Gresik, East Java with a copper concentrate supply capacity of 1 million tons of copper per year and produces 300 thousand tons of copper cathodes per year.

Now Freeport has built a second copper smelter which is also located in Gresik, to be precise in the Java Integrated Industrial and Port Estate (JIIPE) Industrial area, with a processing capacity of 2 million tons of copper concentrate per year. The investment value required is estimated at US$ 3 billion. (wia)

Undang-Undang No.3 Tahun 2020 tentang Pertambangan Mineral dan Batubara (UU Minerba), imbuhnya, semakin memperkuat dan menegaskan hilirisasi nilai tambah tembaga menjadi seuatu yang wajib di-kerjakan.

"Dilakukan baik bagi pemerintah yang nyuruh wajib dan pelaku industri agar ter-implementasi dengan baik," tegasnya.

Seperti diketahui, saat ini baru ada satu smelter tembaga yang cukup besar dioperasikan PT Smelting, perusahaan patungan antara PT Freeport Indonesia dan Mitsubishi yang telah dibangun sejak 1996 di Gresik, Jawa Timur dengan kapasitas pasokan konsentrat tembaga sebesar 1 juta ton tembaga per tahun dan menghasilkan 300 ribu ton katoda tembaga per tahun.

Kini Freeport telah membangun smelter tembaga kedua yang juga berlokasi di Gresik, tepatnya di kawasan Industri Java Integrated Industrial and Port Estate (JIIPE), dengan kapasitas olahan sebesar 2 juta ton konsentrat tembaga per tahun. Adapun nilai investasi yang dibutuhkan diperkirakan mencapai US$ 3 miliar. (wia)

Project Investment Reaches US$12 Billion - Antam is working on the Indonesia Battery Holding

Project By: Ahmad Nabhani

CONSIDERING the ability in exploration and having liquidity brought PT Aneka Tambang Tbk. (ANTM) is trusted to be the representative of PT Mining and Industry Indonesia (MIND ID) in the Indonesia Battery Holding (IBH) project. The investment value of...

Investasi Proyek Capai US$12 Miliar - Antam Garap Proyek

Indonesia Battery Holding Oleh: Ahmad Nabhani

MEMPERTIMBANGKAN kemampuan

dalam eksplorasi dan memiliki likuiditas membawa PT Aneka Tambang Tbk. (ANTM) dipercaya menjadi perwakilan PT Mining and Industry Indonesia (MIND ID) dalam proyek Indonesia Battery Holding (IBH). Nilai investasi proyek...

Daily News Update Page 15

The investment value of the battery development project from nickel mining to battery boxes is estimated at US$ 12 billion.

"The plan for BUMN participation in the battery value chain EV [electric vehicle], MIND ID and Antam will play more roles in the upstream, the intermediate is Pertamina, and in the downstream there is PLN. To control from upstream to down-stream it will run, now It's a process, Indonesia Battery Holding," said Group CEO of MIND ID, Orias Petrus Moedak in a webinar discussion as quoted by a business in Jakarta, yesterday.

He conveyed, the process of forming the Indonesia Battery Holding (IBH) is currently underway. Later, IBH will be involved in the business of making motorized vehicle batteries from upstream to downstream. Meanwhile, the IBH project will involve three BUMN, namely MIND ID together with PT Pertamina (Persero) and PT PLN (Persero). The three of them will form a holding company in the battery business for electric motor vehicles.

Furthermore, Orias explained that IBH will later partner, both with PT Aneka Tambang (Antam) Tbk., And a subsidiary of Pertamina or PLN, to form a joint venture in a joint battery development project with foreign partners.

The investment value of the battery development project from nickel mining to battery boxes is estimated at US$ 12 billion. With an estimate of Jisdor's exchange rate today at Rp14,793 per US dollar, the investment value is equivalent to Rp177.52 trillion.

Orias said that the funding will come from a combination of capital from shareholders and bank loans. Currently,...

Nilai investasi proyek pengembangan baterai dari tambang nikel hingga menjadi baterai kotak ini diperkirakan mencapai US$12 miliar.

"Rencana partisipasi BUMN dalam rantai nilai value chain EV [electric vehicle] baterai, MIND ID dan Antam akan lebih berperan di hulu, yang di intermediate ada Pertamina, dan di hilir ada PLN. Untuk mengontrol dari hulu ke hilir itu berjalan akan dibuat, sekarang lagi proses, Indonesia Battery Holding," kata Group CEO MIND ID, Orias Petrus Moedak dalam diskusi webinar seperti dikutip bisnis di Jakarta, kemarin.

Disampaikannya, proses pembentukan Indonesia Battery Holding (IBH) tersebut saat ini tengah berjalan. Nantinya, IBH akan terlibat dalam bisnis pembuatan baterai kendaraan bermotor mulai dari sektor hulu ke hilir. Adapun, proyek IBH akan melibatkan tiga BUMN, yakni MIND ID bersama dengan PT Pertamina (Persero) dan PT PLN (Persero). Ketiganya akan membentuk perusahaan induk di bidang bisnis baterai untuk kendaraan bermotor listrik.

Lebih lanjut, Orias menjelaskan IBH nantinya akan bermitra, baik dengan PT Aneka Tambang (Antam) Tbk., maupun anak usaha Pertamina atau PLN, untuk membentuk usaha patungan dalam proyek pengembangan baterai bersama dengan mitra asing.

Nilai investasi proyek pengembangan baterai dari tambang nikel hingga menjadi baterai kotak ini diperkirakan mencapai US$12 miliar. Dengan estimasi kurs Jisdor hari ini di level Rp14.793 per dolar AS, maka nilai investasi itu setara dengan Rp177,52 triliun.

Orias menuturkan bahwa pendanaan nantinya berasal dari kombinasi modal dari pemegang saham dan pinjaman perbankan. Saat ini,...

Daily News Update Page 16

Currently, the project development team is intensively preparing a cooperation plan with potential foreign partners from China and South Korea. However, Orias has not been able to reveal the name of the prospective partner's company.

"Because our signature is Antam, later we will open Antam. What is certain is that one from China and one from [South] Korea. Apart from China, we are open. unsolicited approach, they come and we cooperate, we do not open tenders," said Orias.

Minister of BUMN Erick Thohir also echoed MIND ID's expansion plan to the electric battery industry, when the mining holding holding took over 20 percent of PT Vale Indonesia Tbk. (INCO). By reaching Rp.5.52 trillion, MIND ID completed the purchase of 5.1 percent of Sumitomo Metal Mining (SMM) shares and 14.9 percent shares of Vale Canada Limited (VCL) in Vale Indonesia.

Saat ini, tim pengembangan proyek tersebut secara intensif tengah menyiapkan rencana kerja sama dengan calon mitra asing yang berasal dari China dan Korea Selatan. Namun, Orias belum bisa mengungkapkan nama perusahaan calon mitra tersebut.

"Karena yang tanda tangan dari kami adalah Antam, nanti yang buka Antam. Yang pasti satu dari China dan satu dari Korea [Selatan]. Selain China, kami terbuka. Ini pola nego-siasinya sifatnya unsolicited approach, mereka datang dan kami lakukan kerja sama, kami tidak buka tender," kata Orias.

Rencana ekspansi MIND ID ke industri baterai listrik sebelumnya juga digaungkan oleh Menteri BUMN Erick Thohir, saat induk holding pertambangan itu mengambil alih 20 persen saham PT Vale Indonesia Tbk. (INCO). Dengan merogoh Rp5,52 triliun, MIND ID menuntaskan pembelian 5,1 persen saham Sumitomo Metal Mining (SMM) dan 14,9 persen saham Vale Canada Limited (VCL) di Vale Indonesia.

Shadowed by La Nina, United Tractors (UNTR) believes that performance is maintained

Finna U. Ulfah

PT UNITED Tractors Tbk stated that operational performance in the coal mining business line will remain according to plan until the end of the year despite being overshadowed by weather disturbances due to the La Nina phenomenon.

United Tractors Corporate Secretary Sara K. Loebis said the projected performance of the mining contractor business line has taken into account the increase in rainfall that usually occurs at the end of the year.

Dibayangi La Nina, United Tractors (UNTR) Pede Kinerja

Tetap Terjaga Finna U. Ulfah

PT UNITED Tractors Tbk menyatakan kinerja operasional di lini usaha pertam-bangan batu bara bakal tetap sesuai dengan rencana hingga akhir tahun kendati di-bayangi gangguan cuaca akibat fenomena La Nina.

Sekretaris Perusahaan United Tractors Sara K. Loebis mengatakan proyeksi kinerja lini usaha kontraktor pertambangan telah memperhitungkan kenaikan curah hujan yang biasa terjadi di penghujung tahun.

Daily News Update Page 17

Throughout 2020, the mining contractor business line run by subsidiary PT Pamapersada Nusantara is expected to print an overburden removal (OB) volume of 800 million bcm (bank cubic meter).

"So far, [operations] are still on track with the target and we have already considered the rainfall estimate. Thus, the company's strategy at the end of this year is still the same, namely optimum productivity,” said Sara to Bisnis, Wednesday (14/10/2020).

Meanwhile, the issuer coded UNTR shares has not released its operational perfor-mance throughout the third quarter of 2020.

However, until August 2020 UNTR recorded a decrease in OB volume to 561.6 million bcm compared to 656.4 million bcm in the same period 2019.

On a monthly basis, UNTR posted a growth in OB volume of 73.6 million bcm in August 2020 compared to 67.1 million bcm in July 2020.

From the production side, until August 2020 the company recorded a decline in production performance to only 75.8 million tons compared to the first eight months of 2020 of 84 million tons. Editor: Rivki Maulana

Sepanjang 2020, lini usaha kontraktor per-tambangan yang dijalankan oleh anak usaha PT Pamapersada Nusantara diharapkan bisa mencetak volume overburden removal (OB) sebesar 800 juta bcm (bank cubic meter).

“Sejauh ini, [operasional] masih on track dengan target dan kami sudah memper-timbangkan estimasi curah hujan itu. Dengan demikian, strategi perseroan di akhir tahun ini masih sama, yaitu optimum produktivitas,” ujar Sara kepada Bisnis, Rabu (14/10/2020).

Adapun, emiten berkode saham UNTR itu belum merilis kinerja operasional sepanjang kuartal III/2020.

Kendati demikian, hingga Agustus 2020 UNTR membukukan penurunan volume OB menjadi sebesar 561,6 juta bcm dibanding-kan dengan 656,4 juta bcm pada periode yang sama 2019.

Secara bulanan, UNTR membukukan per-tumbuhan volume OB menjadi sebesar 73,6 juta bcm pada Agustus 2020 dibandingkan dengan 67,1 juta bcm pada Juli 2020.

Dari sisi produksi, hingga Agustus 2020 perseroan mencatatkan penurunan kinerja produksi menjadi hanya sebesar 75,8 juta ton dibandingkan dengan delapan bulan pertama tahun 2020 sebesar 84 juta ton. Editor : Rivki Maulana

Get fresh air from the omnibus law, this is a recommendation from analysts for coal issuers

Reporter: Akhmad Suryahadi | Editor: Tendi Mahadi

IN THE midst of weakening coal prices, the Omnibus Law Work Creation Act is a breath of fresh air for coal mining issuers. One form of incentives that...

Dapat angin segar dari omnibus law, ini rekomendasi analis bagi

emiten batubara Reporter: Akhmad Suryahadi | Editor: Tendi

Mahadi

DI tengah pelemahan harga batubara, Undang-Undang (UU) Cipta Kerja Omnibus Law menjadi angin segar bagi emiten pertambangan batu-bara. Salah satu bentuk insentif yang...

Daily News Update Page 18

One form of incentives that the govern-ment has implemented is relaxation of royalties up to 0%.

In Article 128A, which is an embedded article between articles 128 and 129, it is stated that business actors who increase the added value of coal can be given certain treatment on the obligation of State revenue. Giving certain treatment to the

state revenue obligation as referred to is the activity of increasing the added value of coal which can be in the form of the imposition of a royalty of 0%.

Head of Research at NH Korindo Sekuritas

Indonesia, Anggaraksa Arismunandar, said that the royalty relaxation could have a positive impact on coal mining issuers. This benefit is especially felt for issuers who are willing to invest in order to

increase the added value of commodities, either through the downstream process or the utilization of coal to steam power plants (PLTU).

In his notes, a number of issuers have integrated downstream operations including PT Adaro Energy Tbk (ADRO) which has several PLTUs in South Kalimantan and Central Java, and PT Bukit Asam Tbk (PTBA) which is developing a PLTU in South Sumatra.

In Kontan.co.id's records, PTBA has a PLTU project, namely Sumsel 8 Mining Mouth, which as of June 2020 progress has reached 43% and is expected to operate commercially in the first quarter of 2022.

"However, investors should keep a close

watch on the latest developments on the Job Creation Bill. This is because the draft bill has undergone several revisions,” said Anggaraksa when contacted by

Kontan.co.id, Wednesday (14/10).

Salah satu bentuk insentif yang dilakukan pemerintah adalah berupa relaksasi royalti sampai dengan 0%.

Dalam Pasal 128A, yang merupakan pasal sisipan di antara pasal 128 dan 129 disebutkan bahawa pelaku usaha yang melakukan peningkatan nilai tambah batu-bara, dapat diberikan perlakuan tertentu terhadap kewajiban penerimaan Negara. Pemberian perlakuan tertentu terhadap kewajiban penerimaan negara sebagai-mana dimaksud adalah kegiatan pening-katan nilai tambah batubara dapat berupa pengenaan royalti sebesar 0%.

Kepala Riset NH Korindo Sekuritas Indo-nesia Anggaraksa Arismunandar mengata-kan, relaksasi royalti ini bisa berdampak positif bagi emiten tambang batubara. Manfaat ini terutama dirasakan bagi emiten yang bersedia untuk melakukan investasi dalam rangka menaikkan nilai tambah komoditas, baik melalui proses hilirisasi maupun pemanfaatan batubara ke pembangkit listrik tenaga uap (PLTU).

Dalam catatan dia, sejumlah emiten telah memiliki operasi hilir terintegrasi diantara-nya PT Adaro Energy Tbk (ADRO) yang memiliki beberapa PLTU di Kalimantan Selatan dan Jawa Tengah, serta PT Bukit Asam Tbk (PTBA) yang tengah mengem-bangkan PLTU di Sumatera Selatan.

Dalam catatan Kontan.co.id, PTBA memiliki proyek PLTU yakni Mulut Tambang Sumsel 8, yang per Juni 2020 kemajuannya telah mencapai 43% dan diharapkan beroperasi secara komersial pada kuartal pertama 2022.

“Namun, hendaknya investor tetap men-cermati perkembangan terakhir terhadap RUU Cipta Kerja. Hal ini dikarenakan karena draf RUU tersebut masih mengalami beberapa kali revisi,” terang Anggaraksa ketika dihubungi Kontan.co.id, Rabu (14/10).

Daily News Update Page 19

Likewise, MNC Sekuritas analyst Catherina Vincentia considers this to be in line with the omnibus law's goal of attracting foreign investors to invest in the country, one of which is by way of downstreaming in order to provide added value for coal mining products.

"In the midst of decreasing demand from coal itself globally, we see this impact more for the long term, because Indonesia certainly will not survive just by exporting," said Cathrina when contacted by Kontan.co.id.

She continued, with the downstream obligations that make coal more valuable, of course this black gold commodity can be sold at a higher price so that it becomes a positive catalyst for coal mining issuers. In addition, Catherina assessed that several points in the omnibus law make it easier for coal companies to extend their operational permits.

For preferred stocks in the coal mining sector, MNC Sekuritas still chose ADRO, PTBA and PT Indo Tambangraya Megah Tbk (ITMG) shares. MNC Sekuritas still recommends PTBA shares in line with its expansion in the coal transportation segment which is carried out via railroad tracks and the cooperation between this state-owned company and Pelindo.

Senada, Analis MNC Sekuritas Catherina Vincentia menilai hal ini sejalan dengan tujuan omnibus law yang bertujuan untuk menarik investor asing agar berinvestasi di tanah air, salah satunya dengan cara hilirisasi agar memberikan nilai tambah bagi hasil tambang batubara.

“Di tengah penurunan permintaan dari batu-bara sendiri secara global, kami melihat dampak ini lebih untuk jangka panjang, karena Indonesia tentu tidak akan bertahan hanya dengan melakukan ekspor,” ujar Cathrina saat dihubungi Kontan.co.id.

Dia melanjutkan, dengan adanya kewajiban hilirisasi yang menjadikan batubara lebih bernilai, tentu komoditas emas hitam ini dapat dijual dengan harga yang lebih tinggi sehingga menjadi katalis yang positif bagi emiten tambang batubara. Selain itu, Catherina menilai beberapa poin dalam omnibus law memang memudahkan perusahaan batubara untuk memperpanjang izin operasionalnya.

Untuk saham pilihan di sektor tambang batu-bara, MNC Sekuritas masih menjatuhkan pilihan ke saham ADRO, PTBA dan PT Indo Tambangraya Megah Tbk (ITMG). MNC Sekuritas masih merekomendasikan saham PTBA seiring ekspansinya di segmen trans-portasi batubara yang dilakukan melalui rel kereta api dan kerjasama emiten pelat merah

ini dengan Pelindo.

Want to be king of electric car batteries, this is RI's nickel wealth

Wilda Asmarini, CNBC Indonesia

A NUMBER of state-owned enterprises (BUMN) will form a holding company, PT Indonesia Battery, which will run the electric vehicle battery business, from upstream to downstream.

Mau Jadi Raja Baterai Mobil Listrik, Ini Kekayaan Nikel RI

Wilda Asmarini, CNBC Indonesia

SEJUMLAH Badan Usaha Milik Negara (BUMN) akan membentuk holding PT Indonesia Battery yang akan menjalankan bisnis baterai kendaraan listrik, mulai dari hulu sampai ke hilir.

Daily News Update Page 20

CEO of Holding BUMN Mining MIND ID or formerly Inalum, Orias Petrus Moedak, said that the construction of this battery factory would be led by Inalum through PT Aneka Tambang Tbk together with PT Pertamina (Persero) and PT PLN (Persero).

"In the upstream there is Antam, the intermediate one is Pertamina, the down-stream is PLN. Now it is being processed. That will be Indonesia Battery, that is the holding company involved in making batteries from upstream to downstream," he explained in a discussion on Tuesday (13/10). 2020).

Then, are Indonesia's nickel ore reserves sufficient to build an electric car battery factory in the future? Nickel ore is the raw material for electric vehicle battery components.

Based on data from the Geological Agency of the Ministry of EMR 2019 with status as of December 2018, the national nickel ore reserves reached 3.57 billion tons consisting of an estimated reserve of 2.87 billion tons and 698 million tons of proven reserves.

Meanwhile, nickel resources even reached 9.31 billion tons, consisting of measured resources of 2.03 billion tons, indicated as 2.68 billion tons, inferred 4.29 billion tons, and hypothetical 294.9 million tons.

Starting in early 2020, the government has banned the export of nickel ore with the intention of miners to carry out processing and refining in the country first, so that the export value has added value and has higher selling value. In addition, the end of nickel ore exports is also with the aim that Indonesia has sufficient reserves to build an electric vehicle battery industry.

Based on data from the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources, the production of nickel processing such as Nickel Pig Iron (NPI) and ferronickel in 2019 reached 1.78 million tons. This figure is...

CEO Holding BUMN Pertambangan MIND ID atau dulu bernama Inalum, Orias Petrus Moedak, mengatakan pembangunan pabrik baterai ini akan dipimpin Inalum melalui PT Aneka Tambang Tbk bersama dengan PT Pertamina (Persero) dan PT PLN (Persero).

"Di hulu ada Antam, yang intermediate ada Pertamina, hilir ada PLN. Sekarang lagi diproses. Itu nanti ada Indonesia Battery, itu holding company yang terlibat dalam pem-buatan baterai dari hulu ke hilir," jelasnya dalam sebuah diskusi pada Selasa (13/10/ 2020).

Lalu, apakah cadangan bijih nikel Indonesia cukup untuk membangun pabrik baterai mobil listrik di masa mendatang? Bijih nikel merupakan bahan baku dari komponen baterai kendaraan listrik.

Berdasarkan data Badan Geologi Kementerian Energi dan Sumber Daya Mineral 2019 dengan status hingga Desember 2018, cadangan bijih nikel nasional mencapai 3,57 miliar ton terdiri dari cadangan terkira sebanyak 2,87 miliar ton dan 698 juta ton cadangan terbukti.

Sedangkan sumber daya nikel bahkan men-capai 9,31 miliar ton, terdiri dari sumber daya terukur 2,03 miliar ton, tertunjuk 2,68 miliar ton, tereka 4,29 miliar ton, dan hipotetik 294,9 juta ton.

Mulai awal 2020 ini pemerintah telah melarang ekspor bijih nikel dengan maksud penambang melakukan pengolahan dan pemurnian di dalam negeri terlebih dahulu, sehingga nilai ekspor memiliki nilai tambah dan bernilai jual lebih tinggi. Selain itu, penghentian ekspor bijih nikel juga dengan tujuan agar Indonesia memiliki cadangan yang cukup untuk membangun industri baterai kendaraan listrik.

Berdasarkan data Direktorat Jenderal Mineral dan Batu Bara Kementerian Energi dan Sumber Daya Mineral, produksi olahan nikel seperti Nickel Pig Iron (NPI) dan feronikel pada 2019 mencapai 1,78 juta ton. Angka ini...

Daily News Update Page 21

This figure is a significant increase compared to 2015 which was only 358.5 thousand tons. In 2020 this is planned to increase to 2.02 million tons.

The Special Staff of the Minister of Energy and Mineral Resources (ESDM) for Mineral and Coal Management, Irwandy Arif, said that the majority of the total nickel reserves which reached 3.57 billion tons were low grade nickel ore (limonite nickel). This low grade nickel is suitable for processing into raw material for electric vehicle batteries.

Please note, high grade nickel or saprolite nickel has a high nickel content of 1.5%-2.5%. While limonite has a content lower than 1.5%.

A number of nickel smelters in the country currently tend to take high grade nickel. In order for this low grade nickel not to be wasted, according to him it needs further processing.

To take advantage of this low grade nickel, several companies are currently developing a hydro-metallurgical process known as the High Pressure Acid Leaching (HPAL) smelter. In the end, the product from the HPAL smelter, according to him, could become the raw material for electric vehicle batteries.

"We hope this can develop well, so that consumption of low-grade nickel can increase and balance consumption from factories that use high-grade nickel," he said.

He said that currently there are six HPAL smelters in the process of being developed in Indonesia.

The six HPAL smelters are operated by PT Halmahera Persada Legend, PT Adhikara Cipta Mulia, PT Smelter Nickel Indonesia, PT Vale Indonesia, PT Huayue, and PT QMB. Apart from the smelter Vale built, five other smelters are targeted to start operating in 2021.

Angka ini naik signifikan dibandingkan 2015 yang baru sebesar 358,5 ribu ton. Pada 2020 ini direncanakan naik menjadi 2,02 juta ton.

Staf Khusus Menteri Energi dan Sumber Daya Mineral (ESDM) Bidang Tata Kelola Mineral dan Batu Bara Irwandy Arif menga-takan mayoritas dari jumlah cadangan nikel yang mencapai 3,57 miliar ton tersebut merupakan bijih nikel berkadar rendah (limonite nickel). Nikel kadar rendah ini lah yang cocok diolah menjadi bahan baku baterai kendaraan listrik.

Perlu diketahui, nikel kadar tinggi atau saprolite nickel memiliki kandungan nikel tinggi yakni 1,5%-2,5%. Sementara limonite memiliki kandungan lebih rendah dari 1,5%.

Sejumlah smelter nikel di dalam negeri saat ini cenderung mengambil nikel kadar tinggi. Agar nikel kadar rendah ini tidak terbuang sia-sia, maka menurutnya perlu pengolahan lebih lanjut.

Untuk memanfaatkan nikel kadar rendah ini, maka kini beberapa perusahaan tengah mengembangkan proses hydro metalurgi atau dikenal dengan smelter High Pressure Acid Leaching (HPAL). Pada akhirnya, produk dari smelter HPAL ini menurutnya bisa menjadi bahan baku baterai kendaraan listrik.

"Kita harapkan ini bisa berkembang dengan baik, sehingga konsumsi nikel kadar rendah bisa bertambah dan mengimbangi konsumsi dari pabrik yang memakai nikel kadar tinggi," ujarnya.

Dia mengatakan, saat ini ada enam smelter HPAL yang tengah dalam proses pem-bangunan di Indonesia.

Enam smelter HPAL tersebut antara lain dioperasikan oleh PT Halmahera Persada Legend, PT Adhikara Cipta Mulia, PT Smelter Nikel Indonesia, PT Vale Indonesia, PT Huayue, dan PT QMB. Selain smelter yang dibangun Vale, lima smelter lainnya di-targetkan mulai beroperasi pada 2021.

Daily News Update Page 22

He said that the average capex per tonne of nickel is around US$ 19,000 per ton. The total capital expenditure or investment of the six HPAL smelters is estimated at US$ 5.13 billion or around Rp 75.9 trillion (assuming an exchange rate of Rp 14,800 per US$). (wia)

Dia mengatakan, rata-rata belanja modal per ton nikel sekitar US$ 19.000 per ton. Adapun total belanja modal atau investasi dari keenam smelter HPAL tersebut diperkirakan mencapai US$ 5,13 miliar atau sekitar Rp 75,9 triliun (asumsi kurs Rp 14.800 per US$). (wia)

Government Asked to Prepare Industry to Absorb Nickel

Rio Indrawan

THE INDUSTRY must be ready to absorb the results of further mineral processing, especially nickel, which the government is currently being incessantly pushing.

Orias Petrus Moedak, Director of Miniung Industry Indonesia (MIND ID), said that the industry must be ready to follow the increased supply of nickel and its derivatives, which the government is currently pushing. He emphasized that nickel is not only needed as a raw material for making electric vehicle batteries.

"Electric batteries are certainly related to the demand for vehicles. Actually, we shouldn't be too focused on what we have. All focus on nickel, even though there is another important thing for batteries, namely lithium. Being busy with nickel costs a lot as the material is added to the final battery," said Orias, Wednesday (14/10).

According to Orias, the downstream nickel industry owned by Indonesia is expected to have various final results. It's just that the downstream nickel industry in the country is still unable to make this happen because other materials are needed and must be met from imports.

Pemerintah Diminta Siapkan Industri untuk Serap Nikel

Rio Indrawan

INDUSTRI harus siap menyerap hasil

pengolahan lanjutan mineral, khususnya nikel yang saat ini sedang gencar-gencar-nya didorong pemerintah.

Orias Petrus Moedak, Direktur Utama

Miniung Industry Indonesia (MIND ID), mengatakan industri harus siap mengikuti peningkatan pasokan nikel dan turunan-nya yang saat ini sedang digenjot peme-rintah. Ia menegaskan mineral nikel tidak hanya diperlukan sebagai baham baku membuat baterai kendaraan listrik.

“Baterai listrik tentu terkait dengan per-mintaan akan kendaraan. Sebenarnya kita jangan terlalu fokus dengan yang kita punya. Semua fokus ke nikel, padahal buat

baterai ada yang penting lain yakni lithium. Sibuk dengan nikel ada biaya besar sebagai materi ditambahkan ke hasil akhir baterai,” kata Orias, Rabu (14/10).

Menurut Orias, industri hilir nikel yang dimiliki Indonesia diharapkan memiliki hasil akhir yang variatif. Hanya saja industri hilir nikel di tanah air masih belum mampu mewujudkan itu lantaran tetap perlu bahan-bahan lain yang di-

perlukan dan harus dipenuhi dari impor.

Daily News Update Page 23

"It is an alternative use, but there are not many processes from upstream to downstream. Not everything is in us, there is still something to be developed. There are still final applications that have to be imported," he said.

Orias said that the availability of nickel and its derivatives is still influenced by demand. One alternative to nickel-derived products is an electric battery as a companion to the Solar Power Plant (PLTS). This can be a solution so that the downstream nickel industry lives without having to rely on the development of electric cars.

"Our consumption trend, nickel depends on the demand assumption used. One of them is the companion battery from solar power, especially in remote areas where electricity is used during the day, recharge it at night. Batteries do not focus on electric vehicles, but also provide lighting for islands where electricity is stil l lacking,” said Orias.

Irwandy Arif, Special Staff of the Minister of EMR for the Acceleration of Governance for the Minerba Sector, said the Ministry of EMR cannot go alone to encourage and implement downstream nickel. It needs stakeholder involvement, because if not, the various incentives prepared will not have a significant impact.

"Downstreaming is not only the main task and function of the Director General of Minerba, but the Ministry of Industry. Then there are BKPM and Ministry of Finance," said Irwandy.

Ridwan Djamaluddin, Director General of Mineral and Coal at the Ministry of EMR, said that Indonesia's nickel reserves are abundant, especially those with low levels. However, the development roadmap is unclear. For this reason, there needs to be an appropriate scheme to develop nickel and its derivative products.

“Aternatif penggunaan tapi belum banyak proses dari hulu ke hilir. Tidak semua ada di kita, masih ada yang harus dikembang-kan. Aplikasi akhir masih ada yang harus impor,” kata dia.

Orias mengungkapkan untuk nikel dan produk turunannya, ketersediaaannya masih dipengaruhi permintaan. Salah satu alternatif agar produk turunan nikel adalah baterai listrik sebagai pendamping dari Pembangkit Listrik Tenaga Surya (PLTS). Ini bisa menjadi solusi agar industri hilir nikel hidup tanpa harus mengandalkan perkembangan mobil listrik.

“Tren konsumsi kita, nikel tergantung asumsi demand yang dipakai. Salah satunya baterai pendamping dari tenaga surya, khususnya daerah jauh dengan tenaga listrik di siang hari dipakai malam recharge. Baterai tidak fokus pada kendaraan listrik, tapi juga penerangan bagi pulau-pulau yang listriknya masih kurang,” ungkap Orias.

Irwandy Arif, Staf khusus Menteri ESDM Bidang Percepatan Tata Kelola Sektor Minerba, mengatakan Kementerian ESDM tidak bisa berjalan sendiri untuk men-dorong dan mengimplementasikan hiliri-sasi nikel. Perlu keterlibatan stakeholders, karena jika tidak maka berbagai insentif yang disiapkan juga tidak akan mem-berikan dampak berarti.

“Hilirisasi bukan hanya tupoksi Dirjen Minerba, tapi Kementerian Perindustrian. Kemudian ada BKPM dan Kemenkeu,” kata Irwandy.

Ridwan Djamaluddin, Direktur Jenderal Minerba Kementerian ESDM, mengatakan cadangan nikel Indonesia berlimpah, terlebih yang kadar rendah. Namun roadmap pengembangan tidak jelas. Untuk itu perlu ada skema yang tepat guna mengembangkan nikel dan produk turunannya.

Daily News Update Page 24

"Indonesia has a lot of low grade nickel reserves, but planning is not ideal. Several nickel-based Indonesian regions have emerged, some of which we plan, some are encouraged by industry players. That's a good indication that industry players are aware of their needs," said Ridwan. (RI)

“Indonesia punya banyak cadangan nikel kadar rendah, tapi perencanaan tidak ideal. Muncul beberapa kawasan Indonesia berbasis nikel, beberapa kita rencanakan, beberapa didorong pelaku industri. Itu indikasi bagus bahwa pelaku industri menyadari kebutuhannya,” kata Ridwan. (RI)

Vale (INCO) and Antam (ANTM) Expansion HPAL Nickel Smelter

Worth Trillions Denis Riantiza Meilanova & Hafiyyan

TWO mineral mining companies, PT Vale

Indonesia Tbk. and PT Aneka Tambang

Tbk. (ANTM) plans to expand its nickel

smelter with hydrometallurgical techno-

logy or (high pressure acid leach/HPAL)

for processing low grade nickel ore.

Based on Bisnis records, INCO plans to

build an HPAL nickel smelter in Pomalaa,

Southeast Sulawesi, which is expected to

be completed in 2025.

The smelter project is estimated to require

an investment of around US$ 2.5 billion.

With an estimated exchange rate of Rp.

14,700, the investment value is around Rp.

36.75 trillion.

The Ministry of Energy and Mineral Resources (ESDM) noted that there were 6 HPAL smelter projects with a total invest-ment of US$ 5.13 billion.

The average capital expenditure (capex) per tonne of nickel is around US$ 19,000. The total output capacity of the six projects is 246,774 tonnes of nickel.

Vale (INCO) dan Antam (ANTM) Ekspansi Smelter Nikel HPAL

Bernilai Triliunan Denis Riantiza Meilanova & Hafiyyan

DUA emiten pertambangan mineral, PT

Vale Indonesia Tbk. dan PT Aneka

Tambang Tbk. (ANTM) merencanakan

ekspansi smelter nikel dengan teknologi

hidrometalurgi atau (high pressure acid

leach/HPAL) untuk pengolahan bijih nikel

kadar rendah.

Berdasarkan catatan Bisnis, INCO beren-

cana untuk membangun smelter nikel

HPAL di Pomalaa, Sulawesi Tenggara, yang

diperkirakan rampung pada 2025.

Proyek smelter itu diperkirakan mem-

butuhkan investasi sekitar US$2,5 miliar.

Dengan estimasi kurs Rp14.700, nilai

investasi itu berkisar Rp36,75 triliun.

Kementerian Energi dan Sumber Daya

Mineral (ESDM) mencatat terdapat 6

proyek smelter HPAL dengan total inves-

tasi senilai US$5,13 miliar.

Rata-rata belanja modal (capital expen-

diture/capex) per ton nikel sekitar US$

19.000. Total kapasitas keluaran enam

proyek tersebut sebesar 246.774 ton nikel.

Daily News Update Page 25

The six HPAL smelters were worked on by

PT Halmahera Persada Legend, PT

Adhikara Cipta Mulia, PT Smelter Nickel

Indonesia, PT Vale Indonesia, PT Huayue,

and PT QMB. The majority of projects are

targeted to start operating in 2021.

"The HPAL smelter project is a sensitive

project due to the large capex value, even

greater than the RKEF [rotary kiln-electric

furnace]," said the Special Staff of the

Minister of EMR for Mineral and Coal

Management Irwandy Arif in a webinar,

Tuesday (13/10) 2020).

The capital expenditure for the HPAL

smelter is in the range of US$ 65,000 per

tonne of nickel, while the RKEF smelter is

in the range of US$ 13,000 per tonne of

nickel.

Apart from the six ongoing HPAL projects,

MIND ID and Aneka Tambang also plan to

develop HPAL and RKEF factories in North

Maluku or North Konawe.

MIND ID Group CEO Orias Petrus Moedak

said that the nickel removal project is an

effort to fulfill the value chain for the

domestic electric vehicle battery industry.

"This is a project value of US$ 2 [billion] -

US$ 3 billion," he added. This means that

the required investment value is around

Rp. 29.4 trillion - Rp. 44.1 trillion.

MIND ID or PT Indonesia Asahan

Aluminum (Persero) holds 65 percent of

Antam's shares. Inalum also narrowed 20

percent of Vale Indonesia's shares, after

completing an acquisition transaction

worth Rp 5.52 trillion on October 7, 2020.

Editor: Hafiyyan

Enam smelter HPAL tersebut digarap oleh

PT Halmahera Persada Legend, PT

Adhikara Cipta Mulia, PT Smelter Nikel

Indonesia, PT Vale Indonesia, PT Huayue,

dan PT QMB. Mayoritas proyek ditargetkan

mulai beroperasi pada 2021.

"Proyek smelter HPAL merupakan proyek

yang sensitif disebabkan nilai capex yang

besar, bahkan lebih besar daripada RKEF

[rotary kiln-electric furnace]," ujar Staf

Khusus Menteri ESDM Bidang Tata Kelola

Mineral dan Batubara Irwandy Arif dalam

webinar, Selasa (13/10/2020).

Nilai belanja modal smelter HPAL berada

pada kisaran US$65.000 per ton nikel,

sedangkan smelter RKEF pada kisaran

US$13.000 per ton nikel.

Selain enam proyek HPAL yang tengah

berjalan tersebut, MIND ID dan Aneka

Tambang, juga berencana mengembangkan

pabrik HPAL dan RKEF di Maluku Utara

atau Konawe Utara.

Group CEO MIND ID Orias Petrus Moedak

mengatakan bahwa proyek penghiliran

nikel ini sebagai salah satu upaya peme-

nuhan rantai nilai industri baterai ken-

daraan listrik dalam negeri.

"Ini nilai proyek US$2 [miliar]-US$3 miliar

kisarannya," imbuhnya. Artinya, nilai

investasi yang dibutuhkan berkisar Rp29,4

triliun - Rp44,1 triliun.

MIND ID atau PT Indonesia Asahan

Aluminium (Persero) memegang 65 persen

saham Antam. Inalum pun mengempit 20

persen saham Vale Indonesia, setelah

merampungkan transaksi akuisisi senilai

Rp5,52 triliun pada 7 Oktober 2020. Editor :

Hafiyyan

Daily News Update Page 26

The Capacity of Copper Smelters in Indonesia Is Still Underdeveloped

SPECIAL Staff of the Minister of EMR for

the Acceleration and Management of Minerba Irwandy Arif said that the capacity of copper refining and processing facilities (smelters) in Indonesia is still lagging behind a number of countries. In fact, Indonesia is the 11th largest copper mining producer in the world because it is capable of producing the equivalent of 600 thousand tons of copper as of 2017.

He said that Indonesia's copper smelter capacity is below Japan, India, South Korea and Bulgaria.

"Even though these countries do not have raw materials for copper mining," he said in a webinar entitled The Future of Indonesia's Copper Downstreaming, Wed-nesday (14/10).

Therefore, he encouraged the construction of a copper smelter. This is because, in addition to a copper producer, Indonesia is also ranked seventh in the country with the largest copper reserves in the world.

Based on data from the Geological Agency in 2019, the estimated reserves of copper ore are predicted to reach 1.8 billion tons and copper metal to reach 15 million tons.

He gave an example that China was in the third position of copper producers, reaching 1.8 million tons. However, China can process copper reaching 7.5 million tons or 4 times more than its mine production. The large copper smelter processing capacity in China makes it the first copper smelter producer.

Kapasitas Smelter Tembaga di Indonesia Masih Tertinggal

STAF Khusus Menteri ESDM Bidang

Percepatan dan Tata Kelola Minerba Irwandy Arif mengatakan kapasitas fasilitas pemurnian dan pengolahan (smelter) tembaga di Indonesia masih tertinggal di-bandingkan sejumlah negara. Padahal, Indonesia merupakan produsen tambang tembaga peringkat 11 terbesar di dunia karena mampu memproduksi setara 600 ribu ton tembaga per 2017 lalu.

Ia menyebut kapasitas smelter tembaga Indonesia berada di bawah Jepang, India, Korea Selatan dan Bulgaria.

"Padahal negara-negara tersebut tidak mempunyai bahan baku hasil tambang tembaga," ujarnya dalam webinar bertajuk Masa Depan Hilirisasi Tembaga Indonesia, Rabu (14/10).

Oleh sebab itu, ia mendorong pembangunan smelter tembaga. Pasalnya, selain produsen tembaga, Indonesia juga menempati peringkat ketujuh negara yang memiliki cadangan tembaga terbesar di dunia.

Berdasarkan data dari Badan Geologi di 2019, jumlah cadangan terkira bijih tembaga diprediksi mencapai 1,8 miliar ton dan logam tembaga mencapai 15 juta ton.

Ia mencontohkan China menempati posisi ketiga produsen tembaga yakni mencapai 1,8 juta ton. Namun, China dapat mengolah tembaga mencapai 7,5 juta ton atau 4 kali lebih besar daripada produksi tambangnya. Besarnya kapasitas pengolahan smelter tembaga di China, membuatnya menempati posisi pertama produsen smelter tembaga.

Daily News Update Page 27

"If in Indonesia, there has been no construction of a copper smelter since 53 years ago, there are still only two smelters, one at PT Smelting and the other in Halmahera," he said.

According to him, the potential for copper smelters is very promising in the future. As of 2017, the capacity of copper smelters in the world reached 23 million tons, or a surplus compared to consumption.

However, he predicts that copper smelter production will experience a deficit in 2023. This is because the demand for copper metal is increasing. Therefore, he considered this condition as an opportunity for Indonesia to become one of the main producers of copper mines.

"Along with the increasing demand for copper metal related to the trend of EV (electric vehicles), semiconductors and non-renewable energy in the future, it is predicted that in 2023 it will reach 25 million tons so that there will be a deficit, this is an opportunity how to build a copper smelter in Indonesia," he said. (ulf/age)

"Kalau di Indonesia, tidak ada pem-bangunan smelter tembaga sejak 53 tahun yang lalu, tetap cuma ada dua smelter yang satu di PT Smelting dan satunya di Halmahera," ucapnya.

Menurutnya, potensi smelter tembaga sangat menjanjikan ke depan. Per 2017 lalu, kapasitas smelter tembaga di dunia mencapai 23 juta ton, atau mengalami surplus dibandingkan konsumsinya.

Namun, ia memprediksi produksi smelter tembaga mengalami defisit pada 2023 mendatang. Pasalnya, kebutuhan logam tembaga meningkat. Oleh sebab itu, ia menilai kondisi tersebut sebagai peluang Indonesia sebagai salah satu produsen utama tambang tembaga.

"Seiring dengan kebutuhan logam tembaga yang meningkat berkaitan dengan trend EV (kendaraan listrik), semikonduktor dan non renewable energy (energi tidak ter-barukan) ke depan, diprediksi pada 2023 mencapai 25 juta ton sehingga akan defisit, ini kesempatan bagaimana membangun smelter tembaga di Indonesia," tuturnya. (ulf/age)

Government Develops 7 Coal Downstreaming Schemes, From

Gas to Briquettes Oktiani Endarwati

THE COAL industry is considered to have a transformation to meet energy needs based on the principles of sustainability and environmental friendliness. Down-streaming of coal is the key to transfor-mation.

Pemerintah Kembangkan 7 Skema Hilirisasi Batu Bara,

Dari Gas hingga Briket Oktiani Endarwati

INDUSTRI batu bara dinilai harus segera

bertransformasi memenuhi kebutuhan

energi berbasis prinsip keberlanjutan dan

ramah lingkungan. Hilirisasi batu bara

menjadi kunci transformasi.

Daily News Update Page 28

"We have to convert the coal business according to global and domestic develop-ments, for example applying Clean Coal Technology (CCT)," said ESDM Ministry's Director of Coal Business Development Sujatmiko, Thursday (15/10/2020).

Sujatmiko said, there are seven coal downstream schemes that are currently being developed by the government, namely coal gasification, coke making, underground coal gasification, coal liquefaction, coal quality improvement, briquette manufacturing, and coal slurry/ coal water mixture.

"The seven downstreaming projects are in the future for our coal to become the backbone of energy both in Indonesia and the world," he said.

The Ministry of EMR, he said, is targeting the addition of three coal upgrading facilities in 2024, 2026 and 2028, each with a capacity of 1.5 million tons per year.

Meanwhile, the gasification process will be carried out by PT Bukit Asam as an effort to substitute Liquified Petroleum Gas (LPG) through Dimethyl Ether (DME), which will operate in 2024. PT KPC has done the same with a capacity of approximately 4 million tons.

The addition of briquette factories is planned to be completed in 2026 and 2028 with a capacity of 20,000 tons per year, while the plan for two chocolate making facilities will be completed in the same year with a capacity of approximately one million tons.

In order to speed up the downstream process, said Sujatmiko, the government is preparing fiscal and non-fiscal incentives to make the downstream project more economical. The non-fiscal incentives provided include, among others, business permits for the life of the mine reserves. This means that mining business permits are no longer limited to 20 years.

"Kita harus mengonversi bisnis batu bara sesuai dengan perkembangan global dan dalam negeri, misalkan menerapkan Clean Coal Technology (CCT), " kata Direktur Pem-binaan Pengusahaan Batubara Kementerian ESDM Sujatmiko, Kamis (15/10/2020).

Sujatmiko menyebut, ada tujuh skema hilirisasi batu bara yang tengah dikem-bangkan oleh pemerintah, yakni gasifikasi batu bara, pembuatan kokas (cokes making), underground coal gasification, pencairan batu bara, peningkatan mutu batu bara, pembuatan briket, dan coal slurry/coal water mixture.

"Tujuh hilirisasi ini masa depan batu bara kita agar menjadi tulang punggung (back-bone) energi baik di Indonesia maupun dunia," ucapnya.

Kementerian ESDM, kata dia, menargetkan penambahan tiga fasilitas peningkatan mutu batu bara (coal upgrading) pada 2024, 2026, dan 2028 dengan kapasitas masing-masing mencapai 1,5 juta ton per tahun.

Sementara proses gasifikasi akan dilakukan oleh PT Bukit Asam sebagai upaya subtitusi Liquified Petroleum Gas (LPG) melalui Dimethyl Ether (DME) yang beroperasi pada 2024. Hal serupa dilakukan oleh PT KPC dengan kapasitas kurang lebih 4 juta ton.

Untuk penambahan pabrik briket diren-canakan rampung pada 2026 dan 2028 berkapasitas 20.000 ton per tahun, sedang-kan rencana dua fasilitas cokes making akan selesai di tahun yang sama dengan kapa-sitas kurang lebih satu juta ton.

Demi mempercepat proses hilirisasi, kata Sujatmiko, pemerintah menyiapkan insentif fiskal dan nonfiskal agar proyek hilirisasi lebih ekonomis. Insentif nonfiskal yang diberikan antara lain berupa izin usaha selama umur cadangan tambang. Artinya, izin usaha pertambangan tidak lagi dibatasi 20 tahun.

Daily News Update Page 29

Meanwhile, the fiscal incentive is in the form of royalty exemption for coal which is used as raw material for downstreaming. It is believed that the zero percent royalty will not reduce state revenues.

Huclearization is able to create a multiplier effect, namely to open employment opportunities and move the wheels of the regional economy. That way, the state revenue that is lost from zero percent royalty will be substituted.

"For the road industry, the aggregate tax benefits the state. For the regions it also has an impact on the development of supporting infrastructure and economy," said Sujatmiko.

Sujatmiko confirmed that the potential for coal resources in Indonesia is quite large, with a total of 149 billion tons and total reserves of up to 38 billion tons.

"This asset must be a return, how can coal continue to provide benefits to the nation and state," he said. Editor: Rahmat Fiansyah

Sementara insentif fiskal berupa pem-bebasan royalti bagi batu bara yang dijadikan bahan baku hilirisasi. Royalti nol persen itu diyakini tidak akan mengurangi penerimaan negara.

Hlirisasi mampu menciptakan efek ber-ganda yakni membuka lapangan kerja dan menggerakkan roda perekonomian daerah. Dengan begitu, maka penerimaan negara yang hilang dari royalti nol persen akan tersubstitusi.

"Kalau industri jalan, maka secara agregat pajak memberi keuntungan bagi negara. Bagi daerah juga berdampak untuk pengembangan infrastruktur dan ekonomi penunjang," ujar Sujatmiko.

Sujatmiko memastikan potensi sumber daya batu bara di Indonesia cukup besar dengan total 149 miliar ton dan total cadangan hingga 38 miliar ton.

"Aset ini harus jadi return, bagaimana batu bara terus memberikan manfaat bagi bangsa dan negara," katanya. Editor : Rahmat Fiansyah

Cokal secures funding for BBM By: Esmarie Iannucci, Creamer Media Senior Deputy Editor: Australasia

ASX-listed Cokal has secured a $20-million debt financing facility to fund the development of its Bumi Barito Mineral (BBM) coking coal project, in Indonesia.

A binding letter of intent has been provided by China Railway 21st Bureau Group International Engineering Co and Beijing Fidick International Trade Co, with the funding to become available for drawdown on the execution of a definitive agreement, which will be completed within the next 60 days.

Cokal told shareholders on Wednesday that the company has been in discussion with the funding partners for more than 12 months, with both financiers having completed due diligence on BBM and its associated infrastructure.

Once final documentation has been signed, the funding can be drawn down in multiple tranches, with each tranche repayable within five years from the date of drawdown, with Cokal expected to repay the debt from project operations.

Daily News Update Page 30

The fee for the debt finance is lined to BBM mining operations, and will be capped at $40-million.

“Cokal has developed a much sought after coal project in BBM to production-ready stage, and is highly motivated to commence production in order to realise the inherent strategic and financial value of the asset,” said Cokal chairperson Domenic Martino.

“Coal production from BBM will generate reasonably attractive profits in the current market situation, with substantial growth potential, as the global economy improves, and returns for its shareholders.”

Cokal holds a 60% interest in the BBM project, which is expected to produce at a rate of two-million tonnes a year of saleable coal from its third year of production.

Thiess to continue operations at BMA Caval Ridge coal mine Posted by Daniel Gleeson

CIMIC Group’s global mining services provider, Thiess, has been awarded a contract

extension by BHP Mitsubishi Alliance (BMA) to provide mining services at the Caval Ridge coal mine in Queensland, Australia.

The 12-month contract extension will generate revenue of A$110 million ($79 million) to Thiess, CIMIC said.

Under the contract variation, Thiess will continue to operate and maintain three 600 t excavator fleets to move additional overburden for the Caval Ridge operation, an open-pit coal mine with a 10 Mt/y throughput capacity.

Back in 2018, Thiess and BMA signed a contract variation that saw the contract miner move additional overburden through 2020 as per the terms of the contract.

CIMIC Group Chief Executive Officer, Juan Santamaria, said: “This contract extension builds on our relationship with BMA and reinforces our commitment to work with our clients to safely position their operations for optimal efficiency, productivity and cost performance.”

CIMIC Group Executive Mining and Mineral Processing and Thiess Managing Director, Douglas Thompson, said: “We’re proud to continue our work at Caval Ridge where we have a proven track record of delivering innovative and low-cost mining solutions. It is a testament to the team’s continued focus on delivering a safe and productive operation for our client.”

The contract extension will commence in December 2020.

Last week, CIMIC confirmed that it was close to bringing in a new equity investor for its Thiess contract mining business.

Daily News Update Page 31

Newcrest shares solid as it starts trading in Canada Cecilia Jamasmie

SHARES in Newcrest Mining (ASX, TSX, PNGX: NCM) were up almost 2% in pre-market trading in Canada on Wednesday as the miner, Australia’s largest gold producer, headed to its second day at the Toronto Stock Exchange.

The stock was up 1.8%, or 56 Canadian cents, to C$30.25, as gold prices regain part of the ground lost following Tuesday’s sharp pullback and reclaim the key $1,900 an ounce mark.

Gold miners have benefited from rising bullion prices, which have jumped around 30% this year as central banks dial up stimulus measures in response to the coronavirus pandemic.

Newcrest said the listing is part of its strategy to pursue growth in the Americas. It follows the acquisition of a 70% interest last year in the Red Chris copper and gold mine in British Columbia.

In 2018, the company had grabbed an equity interest in Vancouver-based Lundin Gold (TSX: LUG) to help it develop the Fruta del Norte gold project in Ecuador.

Newcrest chief executive Sandeep Biswas believes the Toronto listing will improve its global visibility.

“We have observed an increase in interest from North American investors in the gold sector over the last six months,” Biswas said in a statement. “When combined with our large existing North American shareholder base it makes sense for Newcrest stock to be able to be traded in this time-zone.”

The company will retain its primary listing on the ASX, and its secondary listing on the Papua New Guinea Exchange market, also trading under the symbol NCM.

As of August 31, 2020, there were 1,129 mining companies listed on both the TSX and TSX Venture Exchange, with a combined market capitalization of C$523 billion, including 95 international mining companies with a combined market capitalization of C$105 billion.

Ahead with expansions

Newcrest said earlier this month that it was going ahead with a second-stage expansion of its flagship Cadia gold mine, located in New South Wales, Australia.

The project, it said, would likely increase plant capacity to 35 million tonnes per annum (mtpa) from 33 mtpa and reduce the all in sustaining costs (AISC) by an estimated $22 per ounce.

Newcrest’s board has also approved a front-end recovery project at the company’s Lihir mine, in Papua New Guinea.

The projects require a combined investment of $236 million and are expected to boost gold production and recoveries at the two mines.

Daily News Update Page 32

China coal supplies to tighten this winter on import curbs, strong demand

By Muyu Xu, Gavin Maguire

CHINA’s coking and thermal coal markets are set to tighten over the remainder of 2020 as

stringent import restrictions curb supply at a time of robust demand from heavy industry,

and with the winter heating season about to kick in.

China, the world’s top coal consumer, reportedly informed key buyers to avoid Australian coal last week, part of a broader move to limit imports that also inflamed already-fraught trade ties between Beijing and Canberra.

Australia supplied over 40% of China’s total coking coal imports in 2019, and about 57% of its thermal coal.

Graphic - China's coal imports origins:

Chinese authorities have since 2018 tried to curb coal imports using an unofficial quota system that caps purchases in an effort to support domestic miners.

Daily News Update Page 33

The measures have proved effective, with domestic prices since trending higher and currently approaching record premiums to international coal benchmarks.

Graphic - China vs international coal prices:

Over the first three quarters of 2020, China brought in 239.43 million tonnes of coal, or about 80% of 2019’s full-year total.

Domestic output however has been slow to expand amid intensifying mine safety inspections following over 100 coal mining accidents this year, and an ongoing campaign to shut outdated sites.

Graphic - China coal and coke production:

The country also lacks sufficient quantities of metallurgical, or coking, coal required by its massive steel sector.

“China is unlikely to become self-sufficient in coking coal, as domestic coking coal is generally low quality,” said Jefferies analyst Christopher LaFemina in a note.

Traders and analysts say some key coal consumption areas, such as the northeast, where winter is about to set in, and the south, where power plants are far from coal mining hubs, may face a supply crunch if imports remain tightly restricted.

Daily News Update Page 34

“We have huge pressure to ensure sufficient coal supply during winter season, but there is not enough import quota, and domestic supply may not be adequate,” said a Beijing-based coal trader at a state-owned power plant.

Analysts also expect more robust demand from heavy industry this winter as Beijing loosens emissions restrictions while it tries to spur economic growth.

He Lei, a coal analyst from Huaan Futures, estimates the looser environmental curbs could result in steel production cuts of about half the level seen last winter, or about 60,000 tonnes per day.

Inventory of coking coal at major Chinese ports hit an 18-month low of 3.5 million tonnes as of Oct 9, according to data compiled by Mysteel consultancy.

Thermal coal stocks at four major ports in northern China are at around 10.9 million tonnes, a level last seen in mid-June.

Graphic - China imported coal stocks held at major ports:

Reporting by Muyu Xu in Beijing and Gavin Maguire in Singapore; Editing by Jan Harvey

Daily News Update Page 35

Whitehaven to delay key projects amid coal slump Vanessa Zhou

WHITEHAVEN Coal has paused three key development projects, including the Narrabri and

Vickery extension projects in New South Wales and the Winchester South metallurgical coal project in Queensland.

As stated in Whitehaven’s September quarterly report, the subdued coal markets have forced the company to be cautious in allocating its capital to expansion.

Whitehaven doesn’t expect to make a final investment decision on these projects, on which the company’s production will be underpinned for the next 10 years.

Whitehaven’s metallurgical coal sales took a hit over the September quarter as a result of COVID-related term contract shipment deferrals, particularly in India.

This resulted in a reduction of metallurgical coal sales to 11 per cent of sales for the quarter, down 20 per cent on the previous corresponding period.

Whitehaven is optimistic about its recovery, stating that India will support metallurgical coal

demand while issues surrounding Chinese coal import restrictions remain uncertain.

“During the September quarter, steel producers across Asia and India have all pleasingly resumed shipments under their term contracts,” Whitehaven stated.

“… Despite the ongoing Chinese coal import uncertainties, coal demand from India is strong and hot metal production in the country is higher year on year …”

Whitehaven delivered improved coal sales during the September quarter, totalling six million tonnes of coal from its managed operations to reflect a 13 per cent increase on prior corresponding period.

Run-of-mine production also shot by four per cent on the prior corresponding period to 4.5

million tonnes.

“Operationally, we have continued the June quarter’s momentum by delivering on-plan mining performance of coal and overburden across all operations, laying a solid foundation to much improved operational results,” Whitehaven managing director Paul Flynn said.

This was achieved at realised prices of $US52 ($73) a tonne for thermal coal and $US73 ($102) a tonne for metallurgical coal, both reflecting a decline from $US59 ($82) a tonne and $US76 ($106) a tonne from the June period, respectively.

Whitehaven stated that the globalCoal Newcastle Index (gC Newc) price averaged $US52 a tonne in the September quarter – a historically low pricing brought about by the impact of

COVID-19 on Asia’s industrial activity and Chinese coal quota restrictions.

Daily News Update Page 36

“In a more capital constrained environment, we continue to cautiously progress our development projects and implement a range of business improvement measures to drive cost reductions,” Flynn said.

Whitehaven reissued its 2021 financial year cost guidance at $69–$72 a tonne.

BHP confirms Chinese customers have cancelled orders for Australian coal

Sue Lannin

BHP has confirmed that Chinese customers have asked for deferrals of their coal orders amid reports that China has stopped taking shipments of Australian coal.

The company’s chairman Ken MacKenzie told reporters after BHP’s annual general meeting (AGM) that some coal exports had been stalled.

“We understand there may be some new developments relating to how China plans and moderates imports versus its own domestic coal production,” he said.

“Our commercial team has recently received deferment requests from some of our Chinese customers.”

The confirmation from BHP follows reports from commodity analyst S&P Global Platts that Chinese steel producers and Chinese power firms were ordered to stop importing Australian coal.

Economic analysis firm IHS Markit said some Chinese ports had been told not to accept Australian coal and those shipments were being sold to other countries at the last minute.

The Federal Government is investigating the reports of a possible import ban on Australian coal amid trade tensions between Canberra and Beijing.

Earlier this week, Prime Minister Scott Morrison said that coal import quotas in China were “not uncommon”.

Mr MacKenzie said BHP had longstanding relationships with its Chinese customers and it was “working hard to understand the situation more comprehensively”.

“It would be concerning if the rumours are true regarding import restrictions for Australian coal in China.”

Coal exports have been delayed into Chinese ports in the past.

On Tuesday, China’s Customs Department said it would tighten import supervision of Australian exports.

Coal is the latest export to be caught up in trade tensions between Australia and its biggest trading, China.

Daily News Update Page 37

China has imposed trade duties on Australian barley and beef exports and wine exports are now also the subject of an anti-dumping investigation.

A major point of tension has been Australia’s banning of Chinese telecommunications firm Huawei from being involved the rollout of 5G mobile infrastructure over national security concerns.

Mr Morrison’s call for an investigation into the origins of the COVID-19 pandemic, believed to have originated in the Chinese city of Wuhan, has also damaged relations.

At the AGM, BHP chief executive Mike Henry said the impact of COVID-19 made the outlook for commodities uncertain.

“However, the strength and consistency of the economic recovery underway in China does provide a measure of confidence and optimism,” he said.

BHP supports law changes to protect Indigenous sacred sites

Mr MacKenzie said BHP strongly supported changes to Australia’s cultural heritage laws to protect significant Indigenous sites.

He slammed Rio Tinto for the destruction of 46,000-year-old rock shelters at Juukan Gorge in the Pilbara in Western Australia saying it was a “tragedy.”

“It was a loss of unique cultural heritage, but it was also a loss of trust,” he said.

“It’s had an impact across the industry as a whole.”

He said BHP would not act on state approvals to blast 40 heritage sites to expand the South Flank iron mine in the Pilbara without consultation with the Banjima traditional owners.

The Australasian Centre for Corporate Responsibility withdrew a shareholder resolution calling for a moratorium by BHP on the destruction of indigenous sites.

That is after Mr MacKenzie met with traditional owners and the First Nations Heritage Protection Alliance, and BHP agreed to a set of principles to manage cultural heritage.

First Nations Heritage Protection Alliance co-chair Kado Muir said he was confident the work with BHP would lead to better protection of cultural heritage.

“We have been heartened by the constructive approach BHP has adopted to our discussions,” Mr Muir said.

“Together we are determined to drive industry reform and legislative change that improves both agreement making and the protection of Aboriginal cultural heritage, which is of immense value to all Australians.” –ABC