IMA-Daily Update Page 1

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Depressed Commodity Prices, Financial Performance of MIND ID Subsidiaries Decreases Harga komoditas tertekan, kinerja keuangan anak usaha MIND ID merosot

Pandemic Boosts Gold Prices, Freeport Indonesia Records US$ 94 Million Profits Pandemi Dorong Harga Emas Naik, Freeport Indonesia Catat Laba US$ 94 Juta

Semester I/2020, PTBA Receives Rp 9 T Income, Rp 1.29 T Profit Semester I/2020, PTBA Raih Pendapatan Rp9 T, Laba Rp1,29 T

Electricity for Antam (ANTM)'s ferronickel smelter project will be available in early 2021 Listrik untuk proyek smelter feronikel Antam (ANTM) tersedia awal 2021 Roaring Growth Engine, United Tractors Starts to Race Mesin Pertumbuhan Menderu, United Tractors Mulai Berpacu

PT Timah (TINS) Will Do Mining Again in Singkep PT Timah (TINS) Bakal Menambang Lagi di Singkep

Merdeka Copper Continues the Tujuh Bukit Mining Project Merdeka Copper Lanjutkan Proyek Tambang Tujuh Bukit

Freeport's dividend payments will not decrease even though the business is exposed to the corona outbreak Setoran dividen Freeport tak akan berkurang walau bisnis terpapar wabah corona

Mining Holding Reveals Reasons for Freeport's Smelter Target to Delay to 2024 Holding Tambang Ungkap Alasan Target Smelter Freeport Molor ke 2024 Antam Ready to Work on the Wabu Gold Mine in Papua Antam Siap Garap Tambang Emas Wabu di Papua

Kontan

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Kontan Investor Daily

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DetikFinance Investor Daily

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IMA-Daily Update Page 2

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Here is the List of Big Miners Who Received Government Awards Ini Deretan Penambang Kelas Kakap yang Dapat Award Pemerintah Indonesia's Weda Bay expects 4 new nickel plants to be ready in 2021 Metso Outotec signs contract with Zijin Mining Vale suspends iron-ore production at Viga Australia’s Queensland state approves giant coal mine Adani, JSPL, Vedanta, 43 others bid for commercial coal mines

CNBC Indonesia Reuters Global Mining Review Mining Weekly Mining.com The Economic Times

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IMA-Daily Update Page 3

Depressed Commodity Prices, Financial Performance of MIND

ID Subsidiaries Decreases Reporter: Dimas Andi | Editor: Noverius

Laoli

THE PERFORMANCE of a number of

companies that are members of the state-owned enterprise (SOEs) mining holding or MIND ID has been under pressure during the first half of 2020.

This cannot be separated from the corrections experienced by the prices of a number of commodities on which these companies' revenues are based.

PT Indonesia Asahan Aluminum (Persero) or Inalum for example. As of the first semester of 2020, Inalum earned Rp 3.03 trillion in revenue.

This number decreased by 8.45% (yoy) compared to the results in the first semester of 2019 of Rp 3.31 billion. Inalum's net profit was also eroded by 59.92% (yoy) from Rp 257 billion in the first half of 2019 to Rp 103 billion in the first semester of 2020.

A similar fate was also experienced by PT Aneka Tambang Tbk (ANTM), which in the first semester of 2020 experienced a decline in revenue of 36.06% (yoy) to Rp 9.22 trillion, even though in the first semester of 2019 the company posted revenues of Rp 14.42 billion.

ANTM's net profit also fell by 80.14% (yoy) to Rp 85 billion in the first half of 2020. On the other hand, in the first semester of 2019, ANTM achieved a net profit of Rp 428 billion.

Harga komoditas tertekan, kinerja keuangan anak usaha

MIND ID merosot Reporter: Dimas Andi | Editor: Noverius

Laoli

KINERJA sejumlah perusahaan yang

tergabung dalam holding pertambangan

Badan Usaha Milik Negara (BUMN) atau MIND ID mengalami tekanan sepanjang

paruh pertama 2020.

Hal ini tak lepas dari koreksi yang dialami

harga sejumlah komoditas yang menjadi tumpuan pendapatan perusahaan-per-

usahaan tersebut.

PT Indonesia Asahan Aluminium (Persero)

atau Inalum misalnya. Per semester I-2020 lalu Inalum meraup pendapatan sebesar

Rp 3,03 triliun.

Jumlah ini turun 8,45% (yoy) dibanding-kan hasil di semester I-2019 sebesar Rp

3,31 miliar. Laba bersih Inalum juga tergerus sebesar 59,92% (yoy) dari Rp 257

miliar di semester I-2019 menjadi Rp 103 miliar di semester I-2020.

Nasib serupa juga dialami oleh PT Aneka Tambang Tbk (ANTM) yang di semester I-

2020 kemarin mengalami penurunan pen-dapatan sebesar 36,06% (yoy) menjadi Rp

9,22 triliun, padahal di semester I-2019 perusahaan ini mencetak pendapatan

sebesar Rp 14,42 miliar.

Laba bersih ANTM ikut anjlok hingga

80,14% (yoy) menjadi Rp 85 miliar di semester I-2020. Sebaliknya, di semester I-

2019 lalu ANTM meraih laba bersih sebesar Rp 428 miliar.

IMA-Daily Update Page 4

PT Timah Tbk (TINS) also experienced a decline in revenue by 18.50% (yoy) from Rp. 9.78 billion in the first semester of 2019 to Rp.7.97 billion in the first semester of 2020.

Still in the first semester of 2020, TINS suffered a net loss of Rp. 390 billion, even though in the first semester of 2019 this issuer pocketed a net profit of Rp. 205 billion.

As for MIND ID's subsidiary in the coal mining sector, PT Bukit Asam Tbk (PTBA) has not released its first semester 2020 financial statements until this article was written.

President Director of MIND ID Orias Petrus Moedak said that the decline in the performance of a number of MIND ID subsidiaries was greatly influenced by the sluggish prices of several mining commodities accompanied by low demand.

He gave an example, global aluminum commodity prices during the first semester then fell 12% year to date (ytd). Likewise, global coal prices fell by 9% (ytd) and bauxite fell by 7% (ytd) . The largest decline was experienced by global tin prices by 19% (ytd).

Only global gold prices were still able to increase 25% (ytd) in the first semester yesterday. This increase was inseparable from the high demand for safe haven assets amid the global economic uncertainty during the Covid-19 pandemic.

"The depressed price and reduced demand will ultimately affect MIND ID's financial condition," said Orias in the Hearing Meeting (RDP) with Commission VI DPR RI, Tuesday (29/9).

The decline in the performance of a number of MIND ID's subsidiaries has an impact on the side of non-tax state revenue (PNBP). It is recorded that...

PT Timah Tbk (TINS) juga mengalami penurunan pendapatan sebesar 18,50% (yoy) dari Rp 9,78 miliar di semester I-2019 menjadi Rp 7,97 miliar di semester I-2020.

Masih di semester I-2020, TINS menderita rugi bersih sebesar Rp 390 miliar, padahal di semester I-2019 lalu emiten ini mengantongi laba bersih sebesar Rp 205 miliar.

Adapun anak usaha MIND ID di sektor tambang batubara, PT Bukit Asam Tbk (PTBA) belum merilis laporan keuangan semester I-2020 hingga artikel ini dibuat.

Direktur Utama MIND ID Orias Petrus Moedak menyampaikan, penurunan kinerja sejumlah anak usaha MIND ID sangat dipengaruhi oleh lesunya harga beberapa komoditas tambang yang disertai rendahnya permintaan.

Ia memberi contoh, harga komoditas aluminium global sepanjang semester satu lalu turun 12% secara year to date (ytd). Begitu pula dengan harga batubara global yang merosot 9% (ytd) serta bauksit yang terkoreksi 7% (ytd). Penurunan terbesar dialami oleh harga timah global sebesar 19% (ytd).

Hanya harga emas global yang masih mampu melonjak 25% (ytd) di semester pertama kemarin. Kenaikan tersebut tak lepas dari tingginya permintaan aset safe haven di tengah ketidakpastian ekonomi global di masa pandemi Covid-19.

“Harga yang tertekan dan demand yang berkurang ini pada akhirnya mempenga-ruhi kondisi keuangan MIND ID,” ungkap Orias dalam Rapat Dengar Pendapat (RDP) bersama Komisi VI DPR RI, Selasa (29/9).

Penurunan kinerja sejumlah anak usaha MIND ID berdampak pada sisi penerimaan negara bukan pajak (PNBP). Tercatat,...

IMA-Daily Update Page 5

It is recorded that the consolidated PNBP value of MIND ID in the first semester of 2020 is Rp 1.86 billion. This figure is still far too far from the realization of PNBP from MIND ID in 2019 amounting to Rp. 6.75 billion.

He added, since the Covid-19 pandemic hit, all MIND ID members have routinely conducted discussions internally and with the Ministry of SOE regarding tests of the worst conditions of companies or stress tests.

From there, companies under MIND ID do have to carry out strict business efficiency but without any employee layoff policies, both at the head office and in mining areas. "There are no layoffs. That's the last choice," said Orias.

According to him, the opportunity to improve MIND ID's performance remains open considering that at the beginning of the second semester the prices of a number of commodities began to show an improving trend.

“Prices have started to improve in July and August. We hope that performance can get better again at the end of the year," he concluded.

Tercatat, nilai PNBP MIND ID secara konsolidasi di semester I-2020 sebesar Rp 1,86 miliar. Angka ini masih terlampau jauh dibandingkan realisasi PNBP dari MIND ID di tahun 2019 sebesar Rp 6,75 miliar.

Dia menambahkan, semenjak pandemi Covid-19 melanda, seluruh anggota MIND ID telah rutin melakukan pembahasan secara internal maupun bersama Kemen-terian BUMN terkait uji kondisi terburuk perusahaan atau stress test.

Dari situ, perusahaan-perusahaan di bawah MIND ID memang harus melakukan efisiensi bisnis secara ketat namun tanpa ada kebijakan pemutusan hubungan kerja (PHK) karyawan, baik di kantor pusat maupun di wilayah pertambangan. “Tidak ada PHK. Itu pilihan paling akhir,” tegas Orias.

Menurutnya, peluang perbaikan kinerja MIND ID tetap terbuka mengingat di awal semester kedua harga sejumlah komoditas mulai menunjukan tren perbaikan.

“Harga sudah mulai membaik di bulan Juli dan Agustus. Harapannya kinerja bisa kembali membaik di akhir tahun nanti,” tutup dia.

Pandemic Boosts Gold Prices,

Freeport Indonesia Records US$94 Million Profits

By: Herman/FMB

PRESIDENT Director of the Indonesian

Mining Industry Indonesia (MIND ID) holding company, Orias Petrus Moedak, said that in the first semester of 2020, PT Freeport Indonesia managed to record a net profit of US$ 94 million (Rp 1.4 trillion).

Pandemi Dorong Harga Emas

Naik, Freeport Indonesia Catat Laba US$ 94 Juta

Oleh : Herman/FMB

DIREKTUR Utama holding BUMN pertam-

bangan Mining Industry Indonesia (MIND ID) Orias Petrus Moedak menyampaikan, pada semester I-2020, PT Freeport Indonesia berhasil mencatatkan laba bersih senilai US$ 94 juta (Rp 1,4 triliun).

IMA-Daily Update Page 6

Freeport Indonesia's profit was driven by improving commodity prices for copper and gold.

"Year to date, until June, the position is US$ 94 million. Compared to previous expectations, we expect that in 2020 there will still be no dividends, but this profit position is indeed beyond expectations because the price suddenly improved with the Covid- 19," said Orias Petrus during a Working Meeting with Commission VI of the DPR-RI, Tuesday (29/9/2020).

Orias said that since March 2020, the realization of copper and gold prices has increased. This condition is different from other commodities which face pressure.

"Copper just moved up in June at the level of US$ 3 per pound, while gold prices increased and there was a slight adjustment in May and June, but there was a significant increase during Covid-19 because people bought gold in times of uncertainty," said Orias.

Based on the Mind ID presentation material presented by Orias, PT Freeport Indonesia's copper production during the first semester of 2020 reached 321 million pounds with total sales of 299 million pounds. Meanwhile, gold production during the first semester of 2020 reached 340,000 ounces with sales reaching 319,000 ounces.

In a Working Meeting with Commission VI of the DPR-RI, Orias also conveyed the conditions for the spread of Covid-19 in the Mind ID Group work environment (PT Antam Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Indonesia Asahan Aluminum or Inalum, and PT Timah Tbk).

Cumulatively, the total number of workers affected by Covid-19 reached 1,219 with details of which 235 were still isolated, 978 people finished isolating, and 6 people died. For cases of death, the largest number was in Freeport, with 5 people.

Perolehan laba Freeport Indonesia tersebut didorong oleh membaiknya harga komoditas tembaga dan emas.

"Year to date, sampai dengan Juni, posisinya adalah US$ 94 juta. Dibandingkan dengan ekspektasi sebelumnya, kita ekspektasi bahwa memang di 2020 ini masih belum ada dividen, tetapi posisi laba ini memang di luar ekspektasi karena harga yang mendadak membaik dengan peristiwa Covid-19 ini," ujar Orias Petrus dalam Rapat Kerja dengan Komisi VI DPR-RI, Selasa (29/9/2020).

Orias menyampaikan, sejak Maret 2020, realisasi harga tembaga dan emas mengalami peningkatan. Kondisi ini berbeda dengan komo-ditas lain yang justru menghadapi tekanan.

“Tembaga itu baru bergerak naik di bulan Juni di level US$ 3 per pound, sementara harga emas mengalami peningkatan dan ada sedikit penyesuaian di bulan Mei dan Juni, tetapi terjadi peningkatan signifikan pada saat Covid-19 karena orang membeli emas di saat kondisi ketidakpastian,” kata Orias.

Berdasarkan bahan paparan Mind ID yang disampaikan Orias, produksi tembaga PT Freeport Indonesia sepanjang semester I-2020 mencapai 321 juta pound dengan total penjualan 299 juta pound . Sedangkan produksi emas sepanjang semester I-2020 mencapai 340.000 ounce dengan penjualan mencapai 319.000 ounce.

Dalam Rapat Kerja dengan Komisi VI DPR-RI, Orias juga menyampaikan kondisi penye-baran Covid-19 di lingkungan kerja Mind ID Group (PT Antam Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Indonesia Asahan Aluminium atau Inalum, dan PT Timah Tbk).

Secara kumulatif, total pekerja yang terkena Covid-19 mencapai 1.219 orang dengan rincian yang masih diisolasi 235 orang, selesai melakukan isolasi 978 orang, dan meninggal 6 orang. Untuk kasus meninggal, yang terbanyak adalah di Freeport sebanyak 5 orang.

IMA-Daily Update Page 7

"The number of tests that have been carried out by Mind ID is 92,254, with details of 73,000 rapid tests and 19,000 PCR tests. Most of the tests at Freeport were due to the movement of employees from Tembagapura to Timika which were (tests) carried out perio dically," he explained.

“Untuk jumlah tes yang sudah dilakukan Mind ID sebanyak 92.254, dengan rincian rapid test sebanyak 73.000 dan tes PCR 19.000. Untuk tes di Freeport paling banyak karena memang p ergerakan pegawai dari Tembagapura ke Timika yang memang (tes) dilakukan secara periodik,” terangnya.

Semester I/2020, PTBA Receives

Rp 9 T Income, Rp 1.29 T Profit Hafiyyan

PT BUKIT Asam Tbk. (PTBA) posted

revenue of Rp 9.01 trillion and net profit of Rp 1.29 trillion in the first semester of 2020.

In the financial reports per June 2020 published in Bisnis Indonesia Daily, PTBA management wrote a revenue of Rp 9.01 trillion. This value was corrected by 15.09 percent year on year (yoy) from Rp 10.61 trillion as of June 2019.

Profit for the period attributable to owners of the parent entity reached Rp1.29 trillion. This value weakened 35.85 percent yoy from the previous Rp 2 trillion.

The decrease in net income was due to a correction in income. This affected gross profit, which fell to Rp 2.55 trillion from Rp 3.66 trillion previously.

Operating profit was also corrected to Rp1.38 trillion as of June 2020, from the previous Rp2.59 trillion as of June 2019. Earnings per share also fell to Rp115 from the previous Rp187.

In the first semester of 2020, PTBA saved net cash flow for funding of up to Rp205.92 billion. This value has dropped considera-bly from Rp 2.1 trillion as of June 2019.

Semester I/2020, PTBA Raih

Pendapatan Rp9 T, Laba Rp1,29 T Hafiyyan

PT BUKIT Asam Tbk. (PTBA) membukukan

pendapatan Rp9,01 triliun dan laba bersih Rp1,29 triliun pada semester I/2020.

Dalam laporan keuangan per Juni 2020 yang dipublikasikan di Harian Bisnis Indonesia, manajemen PTBA menuliskan pendapatan Rp9,01 triliun. Nilai itu terkoreksi 15,09 persen year on year (yoy) dari Rp10,61 triliun per Juni 2019.

Laba periode berjalan yang dapat di-atribusikan kepada pemilik entitas induk mencapai Rp1,29 triliun. Nilai itu melemah 35,85 persen yoy dari sebelumnya Rp2 triliun.

Penurunan laba bersih tersebut disebabkan koreksi pendapatan. Hal ini memengaruhi laba bruto yang turun menjadi Rp2,55 triliun dari sebelumnya Rp3,66 triliun.

Laba usaha pun terkoreksi menuju Rp1,38 triliun per Juni 2020, dari sebelumnya Rp2,59 triliun per Juni 2019. Laba per saham pun turun menuju Rp115 dari sebelumnya Rp187.

Pada semester I/2020, PTBA menghemat arus kas bersih untuk pendanaan hingga Rp205,92 miliar. Nilai tersebut turun jauh dari Rp2,1 triliun per Juni 2019.

IMA-Daily Update Page 8

Cash equivalent cash at the end of the period also soared to Rp 8.64 trillion as of June 2020, compared to Rp 5.28 trillion as of June 2019.

Meanwhile, PTBA's total liabilities as of June 2020 reached Rp 10.92 trillion, up from the end of 2019 of Rp7.67 trillion. Short-term liabilities of Rp7.61 trillion, an increase from Rp4.69 trillion previously.

Total PTBA equity was reduced to Rp 15.97 trillion per semester I/2020 from the end of 2019 amounting to Rp 18.42 trillion. PTBA's total assets also tended to be stable to Rp26.89 trillion from the previous Rp26.09 trillion. Editor: Hafiyyan

Kas setara kas pada akhir periode pun membumbung menjadi Rp8,64 triliun per Juni 2020, dibandingkan Rp5,28 triliun per Juni 2019.

Sementara itu, total liabilitas PTBA per Juni 2020 mencapai Rp10,92 triliun, naik dari akhir 2019 sebesar Rp7,67 tril iun. Liabilitas jangka pendek Rp7,61 triliun, meningkat dari sebelumnya Rp4,69 triliun.

Total ekuitas PTBA berkurang menjadi Rp15,97 triliun per semester I/2020 dari akhir 2019 sebesar Rp18,42 triliun. Total aset PTBA pun cenderung stabil menjadi Rp26,89 triliun dari sebelumnya Rp26,09 triliun. Editor : Hafiyyan

Electricity for Antam (ANTM)'s

ferronickel smelter project will be available in early 2021

Reporter: Dimas Andi | Editor: Khomarul Hidayat

ONE of the projects belonging to Mining

Industry Indonesia (MIND ID) that is being hampered is the ferronickel smelter in East Halmahera (Haltim). This project is managed directly by MIND ID's subsidiary, PT Aneka Tambang Tbk (ANTM).

This project actually started in 2017 and took 30 months of construction work. As of July 2019, the progress of the project had reached 97%. However, afterwards the project experienced delays due to delays in electricity supply.

Managing Director of Aneka Tambang Dana Amin said that currently his party is still cooperating with PT Perusahaan Listrik Negara (PLN) to ensure the availability of electricity at the Haltim ferronickel smelter.

Listrik untuk proyek smelter

feronikel Antam (ANTM) tersedia awal 2021

Reporter: Dimas Andi | Editor: Khomarul Hidayat

SALAH satu proyek milik Mining Industry

Indonesia (MIND ID) yang terhambat adalah smelter feronikel di Halmahera Timur (Haltim). Proyek ini dikelola langsung oleh anak usaha MIND ID, PT Aneka Tambang Tbk (ANTM).

Proyek ini sebenarnya sudah dimulai sejak 2017 dan memakan waktu pengerjaan konstruksi selama 30 bulan. Per Juli 2019, kemajuan proyek tersebut sudah mencapai 97%. Namun, setelahnya proyek mengalami penundaan lantaran keterlambatan suplai listrik.

Direktur Utama Aneka Tambang Dana Amin menyampaikan, saat ini pihaknya masih men-jalin kerja sama dengan PT Perusahaan Listrik Negara (PLN) untuk memastikan ketersediaan listrik di smelter feronikel Haltim.

IMA-Daily Update Page 9

"The hope is that a power purchase contract will be agreed upon, while the power plant will take one year to work," he said in the DPR RI hearing (RDP), Tuesday (29/9).

Based on MIND ID's exposure material, the target of providing electricity at the ferro-nickel smelter will be achieved in February 2021. In that same year, the smelter project was completed and operated commercially.

Apart from the electricity problem, currently ANTM is still completing the EPC construction in addition to installing bricks or bricks in the project.

The ferronickel smelter project costs an investment of Rp 4.03 trillion, of which Rp 3.36 trillion is the government's portion, while Rp 0.68 trillion is the result of a public rights issue conducted by ANTM.

When it is operational, the ferronickel smelter will have a capacity of 13,500 tonnes of Ni, so it is believed that it will play an important role in the government's downstream mineral mining program.

"The prospect of the ferronickel smelter in East Halmahera is very large, especially since there is also the Weda Bay industrial area. In the future, the smelter will also play a role in economic development in North Maluku," said Dana Amin.

“Harapannya bisa segera disepakati kontrak jual-beli listrik, sedangkan pembangkitnya butuh waktu pengerjaan satu tahun,” ujar dia dalam rapat dengar pendapat (RDP) DPR RI, Selasa (29/9).

Berdasarkan materi paparan MIND ID, penye-diaan listrik di smelter feronikel tersebut targetnya akan tercapai di bulan Februari 2021 mendatang. Di tahun itu pula proyek smelter tersebut rampung dan beroperasi secara komersial.

Di luar kendala listrik, saat ini pihak ANTM juga masih menyelesaikan konstruksi EPC selain pemasangan brick atau batu bata pada proyek tersebut.

Proyek smelter feronikel ini memakan biaya investasi sebesar Rp 4,03 triliun yang mana Rp 3,36 triliun di antaranya merupakan porsi pemerintah sedangkan Rp 0,68 triliun hasil dari rights issue publik yang dilakukan ANTM.

Ketika sudah beroperasi, smelter feronikel ini akan memiliki kapasitas sebesar 13.500 ton Ni, sehingga diyakini akan berperan penting dalam program hilirisasi tambang mineral yang diusung pemerintah.

“Prospek smelter feronikel di Haltim ini sangat besar, apalagi di sana juga ada kawasan industri Wed a Bay. Nantinya keberadaan smelter ini juga bisa berperan dalam pengem-bangan ekonomi di Maluku Utara,” kata Dana

Amin.

Roaring Growth Engine, United Tractors Starts to Race

Parluhutan Situmorang

PT UNITED Tractors Tbk (UNTR) succeeded

in spurring operational performance in almost all of its business units in August 2020, although the realization during January-August still fell significantly compared to the same period last year. However,...

Mesin Pertumbuhan Menderu, United Tractors Mulai Berpacu

Parluhutan Situmorang

PT UNITED Tractors Tbk (UNTR) berhasil

memacu kinerja operasional pada hampir seluruh unit bisnisnya pada Agustus 2020, meskipun realisasi sepanjang Januari-Agustus masih turun signifikan dibandingkan periode sama tahun lalu. Namun,...

IMA-Daily Update Page 10

However, this realization illustrates that the company's achievements have met the expectations of a number of analysts.

The performance of all business units is expected to improve in 2021, especially gold mining and the operation of the Tanjung Jati power plant, which will have a positive impact on the financial performance of the subsidiary of PT Astra International Tbk (ASII) next year.

Danareksa Sekuritas analyst Stefanus Darmagiri revealed that in August, United Tractors' sales volume of heavy equipment for the Komatsu brand increased. Likewise with the company's coal production volume.

The company's heavy equipment sales volume reached 105 units in August 2020, an increase of 23.5% compared to July 2020. The increase came from an increase in sales of heavy equipment from the Komatsu brand in the mining sector by 62.5% and the forestry sector with an increase of 145.5%.

The increase has made the company's total heavy equipment sales in January-August 2020 reach 70 percent of this year's target of 1,500 units. However, the realization was down 55.8% compared to the acquisition in January-August 2019.

"The decrease in the company's heavy equipment sales volume to 1,043 units during January-August 2020 was due to the Covid-19 pandemic. However , the realization is in line with expectations," wrote Stefanus in his latest research.

Regarding coal production, United Tractors through PT Pamapersada Nusantara recorded an increase of 10.6% to 10.4 million tons in August 2020.

The company's coal production volume fell 9.8% to 75.8 million tons, in line with the decline in global coal demand due to the Covid-19 pandemic which forced a number of mining companies to cut production volumes.

Namun, realisasi tersebut menggambarkan bahwa pencapaian perseroan sudah sesuai harapan sejumlah analis.

Adapun kinerja seluruh unit bisnis yang diperkirakan membaik pada 2021, terutama penambangan emas dan pengoperasian pembangkit listrik Tanjung Jati, bakal ber-dampak positif terhadap kinerja keuangan anak usaha PT Astra International Tbk (ASII) tersebut pada tahun depan.

Analis Danareksa Sekuritas Stefanus Darmagiri mengungkapkan, pada Agustus lalu, volume penjualan alat berat merek Komatsu oleh United Tractors meningkat. Begitu juga dengan volume produksi batu bara perseroan.

Volume penjualan alat berat perseroan mencapai 105 unit pada Agustus 2020 atau meningkat 23,5% dibandingkan Juli 2020. Peningkatan berasal dari kenaikan penjualan alat berat merek Komatsu di sektor pertam-bangan sebesar 62,5% dan sektor kehutanan dengan peningkatan 145,5%.

Kenaikan tersebut membuat total penjualan alat berat perseroan pada Januari-Agustus 2020 telah mencapai 70% dari target tahun ini yang mencapai 1.500 unit. Namun, realisasinya turun 55,8% dibandingkan perolehan pada Januari-Agustus 2019.

“Penurunan volume penjualan alat berat perseroan menjadi 1.043 unit selama Januari-Agustus 2020 akibat pandemic Covid-19. Meski demikian, realisasi tersebut sudah sesuai dengan harapan,” tulis Stefanus dalam riset terbaru.

Terkait produksi batu bara, United Tractors melalui PT Pamapersada Nusantara men-cetak peningkatan sebesar 10,6% menjadi 10,4 juta ton pada Agustus 2020.

Adapun volume produksi batu bara perseroan turun 9,8% menjadi 75,8 juta ton, seiring dengan penurunan permintaan batu bara global akibat pandemi Covid-19 yang memaksa sejumlah perusahaan pertam-bangan memangkas volume produksi.

IMA-Daily Update Page 11

"The achievement of 75.8 million tonnes of coal is in line with our target and the company estimates. This year , coal production by the company is estimated to drop 16 percent to 110 million tons. Meanwhile, coal sales volume still shows an increase of 9.1%, with the largest increase coming from sales of coking coal," he explained.

Meanwhile, regarding gold mining, Stefanus explained that the business showed a decline of 15.4% in August 2020, which was triggered by a decrease in the company's mining utilization, so that the company's total gold sales fell by 12.8% during January-August 2020.

This is likely to reduce the company's gold sales volume in the third quarter of 2020.

The company's gold sales volume is expected to improve again in the last quarter of this year. This increase will also be supported by the improvement in the company's mining utilization in the October to November period this year.

Although the company's gold production tends to decline, this business is expected to be a cushion for the decline in the coal segment this year.

A number of monthly operational perfor-mance improvements have prompted Danareksa Sekuritas to maintain its recommendation to buy UNTR shares with a target price of Rp 29,000.

The price target considers the expectation for a recovery in the company's entire business next year, particularly the gold sales business. The target also considers the operation of the Tanjung Jati power plant by the end of 2021 which is expected to have an impact on financial performance.

Meanwhile, the Rp 29,000 target price implies the estimated P / E ratio for next year will be around 10.6 times. This year,...

“Pencapaian sebanyak 75,8 juta ton batu bara sudah sesuai dengan target kami dan perkiraan perseroan. Tahun ini, produksi batu bara oleh perseroan diperkirakan turun 16% menjadi 110 juta ton. Sedangkan volume penjualan batu bara masih menunjukkan peningkatan sebesar 9,1%, dengan pening-katan terbesar berasal dari penjualan batu bara kokas,” jelas dia.

Sementara itu, mengenai pertambangan emas, Stefanus menjelaskan bahwa bisnis tersebut menunjukkan penurunan 15,4% pada Agustus 2020, yang dipicu oleh penurunan utilisasi pertambangan perseroan, sehingga total pen-jualan emas perseroan turun 12,8% sepanjang Januari-Agustus 2020.

Hal ini kemungkinan membuat volume penjualan emas perseroan akan terpangkas pada kuartal III-2020.

Volume penjualan emas perseroan di-harapkan kembali membaik pada kuartal akhir tahun ini. Peningkatan tersebut juga bakal didukung oleh kembali membaiknya utilisasi tambang perseroan pada periode Oktober hingga November tahun ini.

Meskipun produksi emas perseroan cen-derung turun, bisnis ini diperkirakan menjadi bantalan atas penurunan segmen batu bara tahun ini.

Sejumlah perbaikan kinerja operasional secara bulanan itu mendorong Danareksa Sekuritas mempertahankan rekomendasi beli saham UNTR dengan target harga Rp 29.000.

Target harga tersebut mempertimbangkan ekspektasi pulihnya seluruh bisnis perseroan tahun depan, khususnya bisnis penjualan emas. Target itu juga mempertimbangkan pengoperasian pembangkit listrik Tanjung Jati pada akhir 2021 yang diharapkan ber-dampak terhadap kinerja keuangan.

Adapun target harga Rp 29.000 mengimpli-kasikan perkiraan rasio P/E tahun depan sekitar 10,6 kali. Tahun ini,...

IMA-Daily Update Page 12

This year, Danareksa Sekuritas estimates that United Tractors' net profit will decrease to Rp 2.03 trillion compared to the realization in 2019 of Rp 3.03 trillion. The company's revenue is also predicted to fall to Rpp 65.61 trillion in 2020 compared to 2019's revenue of Rp 84.43 trillion. EBITDA is estimated to weaken to Rp 15.92 trillion from Rp 22.53 trillion.

Previously, Mirae Asset Sekuritas Indonesia analyst Hariyanto Wijaya in his research revealed that gold mining would be an engine for United Tractors' financial performance growth in 2021. This is supported by the company's gold production in 2021 which is estimated to recover up to 350 thousand oz compared to this year's target of 255-300 thousand. oz.

The selling price of gold is also predicted to remain good next year. Mirae maintains the target price for UNTR's share of Rp 26,000. However, the share recommen-dation was revised down to buy trading.

The price target considers the decline in United Tractors' net profit to Rp 8.12 trillion this year compared to last year's achievement of Rp 11.31 trillion. Revenue is also estimated to fall to Rp 66.95 trillion from Rp 84.43 trillion. Editor: Gora Kunjana

(gora_kunjana@investor.co.id)

Tahun ini, Danareksa Sekuritas mem-perkirakan penurunan laba bersih United Tractors menjadi Rp 2,03 triliun di-bandingkan realisasi tahun 2019 senilai Rp 3,03 triliun. Pendapatan perseroan juga diprediksi turun menjadi Rp 65,61 triliun pada 2020 dibandingkan perolehan tahun 2019 senilai Rp 84,43 triliun. EBITDA diperkirakan melemah menjadi Rp 15,92 triliun dari Rp 22,53 triliun.

Sebelumnya, analis Mirae Asset Sekuritas Indonesia Hariyanto Wijaya dalam risetnya mengungkapkan, tambang emas akan men-jadi mesin pertumbuhan kinerja keuangan United Tractors pada 2021. Hal itu di-dukung oleh produksi emas perseroan tahun 2021 yang diperkirakan pulih men-capai 350 ribu oz dibandingkan target tahun ini 255-300 ribu oz.

Harga jual emas juga diprediksi tetap baik tahun depan. Mirae mempertahankan target harga saham UNTR sebesar Rp 26.000. Namun, rekomendasi sahamnya direvisi turun menjadi trading buy.

Target harga tersebut mempertimbangkan penurunan laba bersih United Tractors menjadi Rp 8,12 triliun tahun ini diban-dingkan pencapaian tahun lalu senilai Rp 11,31 triliun. Pendapatan juga diper-kirakan turun menjadi Rp 66,95 triliun dari Rp 84,43 triliun. Editor : Gora Kunjana (gora_kunjana@investor.co.id)

PT Timah (TINS) Will Do Mining Again in Singkep

Denis Riantiza Meilanova

PT TIMAH Tbk. (TINS) plans to resume

mining in the Dabo Singkep area, Lingga, Riau Islands.

PT Timah (TINS) Bakal Menambang Lagi di Singkep

Denis Riantiza Meilanova

PT TIMAH Tbk. (TINS) berencana kembali

melakukan penambangan di wilayah Dabo Singkep, Lingga, Kepulauan Riau.

IMA-Daily Update Page 13

President Director of PT Timah Tbk. (TINS) Mochtar Riza Pahlevi Tabrani said that currently the company is submitting an application to the Ministry of Energy and Mineral Resources to obtain a mining business permit (IUP) for exploration in the area.

"The process is still at the Directorate General of Mineral and Coal. We are waiting for approval to carry out an exploration program at Dabo Singkep," said Riza in a hearing at Commission VII DPR RI, Tuesday (29/9/2020).

Unfortunately, Riza did not provide further information regarding the exploration plan.

During the colonial period, PT Timah had operated in the Singkep area, previously known as NV Singkep Tin Exploitatie Maatschappij (NV SITEM) and then its operation ended in 1992. Formerly the Singkep area was known as one of the largest tin producing areas.

Quoting the official website of the Lingga Regency Government, in November last year, PT Timah started discussing the exploration plan in Singkep Island with the Lingga Regency Government. There are three points that have been proposed as IUP exploration with a total area of approximately 9,812.42 hectares. Editor: Miftahul Ulum

Direktur Utama PT Timah Tbk. (TINS) Mochtar Riza Pahlevi Tabrani mengatakan bahwa saat ini perusahaan tengah meng-ajukan permohonan kepada Kementerian Energi dan Sumber Daya Mineral untuk memperoleh izin usaha pertambangan (IUP) eksplorasi di wilayah tersebut.

"Prosesnya masih di Ditjen Minerba. Kami sedang menunggu persetujuan untuk melakukan program eksplorasi di Dabo Singkep," ujar Riza dalam rapat dengar pendapat di Komisi VII DPR RI, Selasa (29/9/2020).

Sayangnya, Riza tidak memberikan kete-rangan lebih lanjut mengenai rencana eksplorasinya tersebut.

Pada masa kolonial, PT Timah pernah ber-operasi di wilayah Singkep, sebelumnya ber-nama NV Singkep Tin Exploitatie Maatschappij (NV SITEM) dan kemudian pengoperasiannya berakhir pada 1992. Dulunya wilayah Singkep terkenal sebagai salah satu wilayah penghasil timah terbesar.

Mengutip laman resmi Pemkab Lingga, pada November tahun lalu, pihak PT Timah telah memulai pembahasan rencana eksplorasi di Pulau Singkep dengan Pemerintah Kabupaten Lingga. Terdapat tiga titik yang diajukan sebagai IUP eksplorasi dengan total luas wilayah sekitar 9.812,42 hektare. Editor : Miftahul Ulum

Merdeka Copper Continues the

Tujuh Bukit Mining Project By: Amrozi Amenan/FER

PT MERDEKA Copper Gold Tbk (MDKA)

ensures that it will continue to invest and AIM's feasibility study in the Tujuh Bukit Mine project, Banyuwangi, East Java, because it has sufficient funding.

Merdeka Copper Lanjutkan

Proyek Tambang Tujuh Bukit Oleh : Amrozi Amenan/FER

PT MERDEKA Copper Gold Tbk (MDKA)

memastikan akan tetap melanjutkan investasi dan studi kelayakan AIM di proyek Tambang Tujuh Bukit, Banyuwangi, Jawa Timur, karena memiliki pendanaan yang cukup.

IMA-Daily Update Page 14

PT Merdeka Copper Gold Tbk's Corporate Communication, Tom Malik, explained that

on September 30, 2020, the company will have cash reserves of around US$ 80

million after the scheduled debt amortization payment of US$ 10 million.

"The company anticipates that it will have

sufficient funding to continue investing in the Tujuh Bukit Copper Project and the

AIM feasibility study," he explained, Tuesday (29/9/2020).

Tom emphasized that it is estimated that no gold is lost from the reserves, after a fracture incident on the surface of the leach pad at the mine on Saturday (12/9/2020). However, the production process will be suspended due to this incident.

The Company is also working to increase the potential for gold ore reserves on the site through exploration and re-optimization of the mine pit design to take advantage of the current higher gold price.

"Further announcements will be made as soon as the remediation design work is completed and detailed production estimates have been prepared," he said.

Furthermore, Tom explained, on Saturday (12/09/2020), a fracture was found on the surface of the heap leach pad. Upon that incident, employees and equipment were immediately secured from the location. In the afternoon of the same day, there was a shift from a portion of the slope of the ore bed. This shifting of material causes damage to piping lines and pumping equipment.

"However, this incident did not cause injuries among employees or have a negative impact on the environment," he said.

Corporate Communication PT Merdeka Copper Gold Tbk, Tom Malik, menjelaskan pada 30 September 2020, perseroan akan memiliki cadangan kas sekitar US$ 80 juta setelah pembayaran amortisasi utang terjadwal sebesar US$ 10 juta.

"Perseroan mengantisipasi akan memiliki pendanaan yang cukup untuk melanjutkan investasi di Proyek Tembaga Tujuh Bukit dan studi kelayakan AIM," terangnya, Selasa (29/9/2020).

Tom menegaskan, diperkirakan tidak ada emas hilang dari cadangan, setelah insiden rekahan di permukaan pelataran pelindian di tambang tersebut pada Sabtu (12/9/ 2020). Namun, proses produksi akan ditangguhkan karena insiden ini.

Perseroan juga sedang mengupayakan untuk meningkatkan potensi cadangan bijih emas di situs melalui eksplorasi dan pengoptimalan ulang desain lubang tambang untuk menarik keuntungan dari harga emas yang lebih tinggi saat ini.

"Pengumuman lebih lanjut akan dilakukan segera setelah pekerjaan desain remediasi selesai dan perkiraan produksi rinci telah disiapkan,” tegasnya.

Lebih lanjut Tom memaparkan, pada Sabtu (12/9/2020) lalu, telah ditemukan rekahan di permukaan pelataran pelindian atau heap leach pad. Atas kejadian itu, karyawan dan peralatan pun segera diamankan dari lokasi tersebut. Pada sore harinya di hari yang sama, terjadi per-geseran dari sebagian dari lereng hamparan bijih. Pergeseran materi ter-sebut menyebabkan kerusakan pada jalur perpipaan dan peralatan pompa.

"Namun, kejadian ini tidak menimbulkan korban cedera di kalangan karyawan ataupun memberikan dampak buruk bagi lingkungan," tandasnya.

IMA-Daily Update Page 15

Currently for open pit mining operations, ore preparation and irrigation plants at the leach pad are temporarily suspended until incident investigations and remediation works are completed. It is estimated that the draft remediation works will be ready by mid-October. The ground displacement is continuously monitored with a prism that measures movement.

"The measurements show that the displacement of the ground has begun to stabilize, allowing remediation work," he explained.

At this time, the drained fluid from the heap leach pad is collected in the process water pool. The liquid is then processed through an ADR plant and a detoxification circuit resulting in a lower gold production rate.

"This is expected to continue during the fourth quarter. The company does not anticipate any adverse environmental impacts from this incident. Pumps and other infrastructure have been rescued and can be used to resume operations," he said.

Tom said that the company is working with many experts in the design of the heap leach design to determine the cause of the incident so that it will not happen again in the future.

Currently, the leach pad irrigation will not be carried out in the fourth quarter. Production will come from processing the solution extracted from the leach pad. Sales of about 10,000 ounces are expected for the fourth quarter. "Total production for this year is estimated at 154,000 to 160,000 ounces," he explained.

According to Tom, the company plans improvements aimed at restarting production in a sustainable manner. Moreover,...

Saat ini untuk operasi penambangan terbuka, pabrik persiapan bijih dan irigasi pada pelataran pelindian untuk sementara ditangguhkan sampai investigasi insiden dan pekerjaan remediasi selesai. Diper-kirakan rancangan pekerjaan remediasi akan siap pertengahan Oktober. Perge-seran muka tanah terus dipantau dengan prisma yang mengukur pergerakan.

"Pengukuran menunjukkan, pergeseran muka tanah mulai stabil sehingga me-mungkinkan pekerjaan remediasi," terang-nya.

Saat ini, pengurasan cairan dari heap leach pad dikumpulkan di kolam air proses. Cairan kemudian diproses melalui pabrik ADR dan sirkuit detoksifikasi yang meng-hasilkan tingkat produksi emas yang lebih rendah.

"Hal ini diperkirakan akan berlanjut selama kuartal keempat. Perseroan tidak mengantisipasi dampak lingkungan buruk dari kejadian ini. Pompa dan infrastruktur lainnya telah diselamatkan dan dapat digunakan untuk kembali beroperasi," ucapnya.

Tom mengungkapkan, perseroan bekerja sama dengan banyak ahli dalam peran-cangan pelataran pelindian (heap leach design) untuk menentukan penyebab insiden agar tidak terulang kembali di masa mendatang.

Saat ini, irigasi pelataran pelindian tidak akan dilakukan pada kuartal ke empat. Produksi akan berasal dari pemrosesan larutan yang diambil dari pelataran pelindian. Penjualan sekitar 10.000 ounce diharapkan untuk kuartal ke empat. "Total produksi tahun ini diperkirakan 154.000 sampai 160.000 ounce," terangnya.

Menurut Tom, perseroan merencanakan perbaikan yang bertujuan untuk memulai kembali produksi secara berkelanjutan. Apalagi,...

IMA-Daily Update Page 16

Moreover, it is estimated that about a third of the heap leach pad is unaffected by ground shifting. The Company also ensures that additional pumping and piping has been reinstalled (using recovered pumps). "The company estimates that the yard irrigation can resume in January 2021," he said.

The Company has a comprehensive insurance policy including for material damage and business interruption. The insurer has been notified of the incident and a loss assessor has been appointed by the insurance company. A loss assessor visit has been conducted and the company provides information so that claims can be assessed. "This process is estimated to take up to two months," concluded Tom.

Apalagi, diperkirakan sekitar sepertiga dari heap leach pad tidak terpengaruh oleh per-geseran permukaan tanah. Perseroan juga memastikan pemompaan dan pemipaan tambahan telah terpasang kembali (meng-gunakan pompa yang dipulihkan). "Perseroan memerkirakan, irigasi pelataran dapat dimulai kembali pada Januari 2021," tandasnya.

Perseroan memiliki polis asuransi yang komprehensif termasuk untuk kerusakan material dan gangguan usaha. Penanggung asuransi telah diberitahu tentang kejadian tersebut dan penilai kerugian telah ditunjuk oleh perusahaan asuransi. Kunjungan penilai kerugian telah dilaksanakan dan perseroan menyediakan informasi agar klaim dapat dinilai. "Proses ini diperkirakan akan membutuhkan waktu hingga dua bulan," tutup Tom.

Freeport's dividend payments

will not decrease even though the business is exposed to the

corona outbreak Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

NEXT year, PT Freeport Indonesia (PTFI) will again distribute dividends. Holding the state-owned mining industry or Mining and Industry (MIND ID) is optimistic that the dividend payment from Freeport Indonesia is still in line with the plan. The 51.2% shareholder of PTFI is confident that the Covid-19 pandemic will not reduce PTFI's dividend payment from the target.

President Director of MIND ID Orias Petrus Moedak said, according to the calculations agreed upon during the 2018 PTFI share divestment process, dividends from PTFI will flow again starting in 2021.

Setoran dividen Freeport tak

akan berkurang walau bisnis terpapar wabah corona

Reporter: Ridwan Nanda Mulyana | Editor: Khomarul Hidayat

TAHUN depan, PT Freeport Indonesia

(PTFI) akan kembali membagikan dividen. Holding industri pertambangan BUMN atau Mining and Industry (MIND ID) optimistis setoran dividen dari Freeport Indonesia masih sesuai dengan rencana. Pemegang 51,2% saham PTFI tersebut yakin, pandemi covid-19 tidak akan membuat setoran dividen PTFI berkurang dari target.

Direktur Utama MIND ID Orias Petrus Moedak menyampaikan, sesuai dengan perhitungan yang disepakati saat proses divestasi saham PTFI 2018 lalu, dividen dari PTFI akan mengalir lagi mulai 2021.

IMA-Daily Update Page 17

"In accordance with 2019 and 2020 calculations, Freeport will not distribute dividends, that's our agreement. Next year, 2021 onwards (dividend distribution again)," said Orias when he was met after attending a joint hearing with Commission VI of the DPR RI, Tuesday (29/9).

PTFI is fasting to pay dividends in the past two years due to its focus on investing in the mining transition from open pit mining to underground mining. As a result, PTFI's production and sales have decreased compared to normal conditions.

Even though the mining industry is currently under pressure from the Covid-19 pandemic, Orias is confident that PTFI dividends will be distributed according to the agreed schedule. Moreover, the price of copper as PTFI's main commodity has improved in the middle of this year.

"It shouldn't be (not affected by covid-19). Because the price of copper has improved in the middle of this year. The price of copper is above US$ 3, which is very good," he said.

However, Orias did not disclose in detail the amount of dividends that PTFI would distribute considering the current conditions. "Later, when it arrives that year, then an estimate," he continued.

Referring to the hearing between MIND ID and Commission VII which took place on June 30, 2020, Orias explained, with the estimated level of copper prices being at the same level as in 2018, the projection of dividends to be paid by PTFI to MIND ID is around US$ 350 million.

Then it will increase gradually and is projected to receive a US$ 1 billion dividend from 2023 onwards. However, the amount of the dividend will be influenced by the level of production and sales, as well as the price of copper.

"Sesuai dengan perhitungan 2019 dan 2020, Freeport tidak bagi dividen, itu kesepakatan kami. Tahun depan, 2021 dan seterusnya (kembali membagi dividen)," kata Orias saat ditemui selepas mengikuti rapat dengar pendapat bersama Komisi VI DPR RI, Selasa (29/9).

PTFI berpuasa memberi dividen dalam dua tahun ini lantaran fokus untuk berinvestasi pada transisi pertambangan dari tambang terbuka ke tambang bawah tanah. Akibatnya, produksi dan penjualan PTFI merosot dibanding kondisi normal.

Meski industri pertambangan sedang tertekan pandemi Covid-19, Orias yakin, pemberian dividen PTFI akan sesuai jadwal yang telah disepakati. Apalagi, harga tembaga sebagai komoditas utama PTFI sudah membaik pada pertengahan tahun ini.

"Harusnya nggak (tidak terdampak covid-19). Karena harga tembaga membaik yah di pertengahan tahun ini. Kan harga tembaga di atas US$ 3, itu sangat bagus," sebutnya.

Namun, Orias tidak membeberkan dengan detail berapa besaran dividen yang akan dibagi oleh PTFI dengan mempertimbang-kan kondisi saat ini. "Nanti lah kalau sudah sampai tahun itu, baru estimasi," sambung-nya.

Merujuk pada rapat dengar pendapat antara MIND ID dan Komisi VII yang berlangsung pada 30 Juni 2020 lalu, Orias menjelaskan, dengan estimasi tingkat harga tembaga berada di level yang sama seperti tahun 2018, proyeksi dividen yang akan disetorkan PTFI kepada MIND ID sekitar US$ 350 juta.

Kemudian akan meningkat secara bertahap dan diproyeksikan bisa menerima divdien US$ 1 miliar mulai 2023 dan seterusnya. Namun, besaran dividen tersebut akan dipengaruhi oleh tingkat produksi dan penjualan, serta harga tembaga.

IMA-Daily Update Page 18

With current conditions, Orias has yet to reconfirm the dividend amount. What is certain, he said, the amount of dividends to be received in 2021 is still larger than the dividends in 2018 which amounted to US$ 180 million.

"It could be (according to projections, US$ 350 million). In 2018 we can get approximately US$ 180 million, we hope it will be better," added Orias.

Dengan kondisi saat ini, Orias memang belum mengkonfirmasi kembali besaran dividen tersebut. Yang pasti, dia mengata-kan, besaran dividen yang akan diterima pada 2021 tetap lebih besar dibanding dividen pada 2018 sebesar US$ 180 juta.

"Bisa jadi (sesuai proyeksi, US$ 350 juta). Di 2018 kan kita dapat kurang lebih US$ 180 juta, kita harapkan lebih baik," imbuh Orias.

Mining Holding Reveals Reasons for Freeport's Smelter

Target to Delay to 2024 Herdi Alif Al Hikam - detikFinance

DIRECTOR of Holding SOE Mining MIND

ID Orias Petrus Moedak revealed that the target for completion of the Freeport smelter in Gresik will be delayed from the 2023 target.

The reason is, the conditions for the spread of the Corona virus have made Gresik close its area for workers to build a smelter. Orias said that now Freeport's position is just waiting.

"For the PTFI smelter, the current position is still held. Because we are still waiting to open the status in Gresik so that workers can enter, because this is related to COVID-19," said Orias in a joint working meeting with Commission VI of the Indonesian Parliament, Tuesday (29/9/2020).

Workers cannot enter, as a result their physical work has to be postponed. Even so, Orias explained that his company has prepared land and funds of US$ 250 million for the construction of a smelter in Gresik.

Holding Tambang Ungkap Alasan Target Smelter Freeport

Molor ke 2024 Herdi Alif Al Hikam - detikFinance

DIRUT Holding BUMN Tambang MIND ID

Orias Petrus Moedak mengungkapkan target penyelesaian smelter Freeport di

Gresik akan mundur dari target tahun 2023.

Pasalnya, kondisi penyebaran virus Corona membuat Gresik menutup daerahnya

untuk bisa dimasuki pekerja untuk mem-bangun smelter. Orias mengatakan kini

Freeport posisinya hanya menunggu.

"Untuk smelter PTFI, posisi sekarang masih hold. Karena kita masih nunggu

dibuka statusnya di Gresik agar pekerja bisa masuk, karena ini terkait COVID-19,"

ujar Orias dalam rapat kerja bersama Komisi VI DPR RI, Selasa (29/9/2020).

Pekerja tidak bisa masuk, alhasil pekerjaan

fisiknya pun terpaksa ditunda. Meski begitu, Orias menjelaskan pihaknya sudah

menyiapkan lahan dan dana US$ 250 juta untuk pembangunan smelter di Gresik.

IMA-Daily Update Page 19

"So the physical work is still temporarily suspended. We have already spent US$ 250 million for the smelter, we are doing land preparation there," said Orias.

"This delay will certainly result in a shift in the completion time," he said.

Previously, PT Freeport Indonesia's Deputy President Director Jenpino Ngabdi also said that COVID-19 was disrupting the construction of a smelter. According to him, the pandemic condition, the contractor has not been able to finalize the cost and time for the smelter construction.

This made the realization of the construction still below the target, he said the contractors would not be able to complete the project if the smelter was targeted to be completed in 2023. Therefore, his party asked for a concession in completing the smelter construction.

"We would like to request that the settlement of this smelter be granted until 2024," he said at a meeting at Commission VII DPR Jakarta, Thursday (27/8/2020). (ara/ara)

"Jadi masih sementara ditunda pekerjaan fisiknya. Kita sudah spend US$ 250 juta untuk smelter, di sana kita melakukan penyiapan lahan," ungkap Orias.

"Penundaan ini tentu akan mengakibatkan bergesernya waktu penyelesaian," ujarnya.

Sebelumnya, Wakil Presiden Direktur PT Freeport Indonesia Jenpino Ngabdi juga menuturkan, COVID-19 mengganggu pembangunan smelter. Kondisi pandemi menurutnya kontraktor belum bisa melakukan finalisasi terhadap biaya dan waktu untuk pembangunan smelter.

Hal ini membuat realisasi pembangunan masih di bawah target, dia menyebut para kontraktor tidak sanggup menyelesaikan proyek jika smelter ditargetkan rampung tahun 2023. Maka itu, pihaknya meminta kelonggaran penyelesaian pembangunan smelter.

"Kami ingin memohon agar diberikan kelonggaran penyelesaian smelter ini hingga 2024," ungkapnya dalam rapat di Komisi VII DPR Jakarta, Kamis (27/8/ 2020). (ara/ara)

Antam Ready to Work on the Wabu Gold Mine in Papua

Farid Firdaus (farid.firdaus@beritasatumedia.com)

HOLDING SOE Mining, Mining Industry

Indonesia (MIND ID) is preparing to delegate the management of the Wabu Block gold mine in Papua to PT Aneka Tambang Tbk (ANTM) or Antam. The initial stage of cooperation with the local government will be executed in the near future.

Antam Siap Garap Tambang Emas Wabu di Papua

Farid Firdaus (farid.firdaus@beritasatumedia.com)

HOLDING BUMN Pertambangan, Mining

Industry Indonesia (MIND ID) bersiap mendelegasikan pengelolaan tambang emas Blok Wabu, di Papua kepada PT Aneka Tambang Tbk (ANTM) atau Antam. Kerja sama tahap awal dengan pemerintah setempat akan dieksekusi dalam waktu dekat.

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MIND ID Main Director Orias Petrus Moedak said the local government had handed over the management of the Wabu Block to MIND ID. As a follow-up, his party handed over this task to Antam, a subsidiary of MIND ID. Then, MIND ID together with the local government will formalize the initial stage of cooperation.

"There is a letter from the Governor to hand over the gold mine to MIND ID. Because the expert in the gold sector is Antam, we will submit it to Antam to be followed up,” he explained in a hearing at Commission VI DPR RI, Tuesday (29/9).

As is known, the Wabu Block was the result of PT Freeport Indonesia's return to the government in 2015. At that time, Freeport agreed to reduce its working area to 90,360 hectares (ha) from the original 212,950 ha. The reduction of the working area aims to reach an agreement for Freeport to continue operations in the form of a special mining business permit (IUPK).

During the repayment process, Freeport once stated that the Wabu Block had the potential of up to 4.3 million ore with a fairly good gold quality of 2.47 grams per ton.

Separately, the Special Staff of the Minister of SOE Arya Sinulingga said that the Wabu Block is estimated to have an area of around 40,000 ha and has large gold reserves with a potential value of up to US$ 14 billion. Antam's entry into the gold mining project is considered to be beneficial to the government because there is tax revenue to the state.

Previously, at a joint meeting of the House of Representatives Commission VI on September 22, SOE Minister Erick Tohir said that his party had sent a letter to Minister of Energy and Mineral Resources (MEMR) Arifin Tasrif regarding the management of the former Freeport gold mine.

Direktur Utama MIND ID Orias Petrus Moedak mengatakan, pemerintah daerah setempat telah menyerahkan pengelolaan Blok Wabu kepada MIND ID. Sebagai bentuk tindak lanjut, pihaknya menyerahkan tugas ini kepada Antam, anak usaha MIND ID. Kemudian, MIND ID bersama pemerintah daerah akan me-resmikan kerjas ama tahap awal.

“Ada surat dari Gubernur untuk menye-rahkan tambang emas kepada MIND ID. Karena yang ahli di bidang emas itu adalah Antam, maka kami serahkan ke Antam untuk ditindaklanjuti,” jelas dia dalam rapat dengar pendapat di Komisi VI DPR RI, Selasa (29/9).

Seperti diketahui, Blok Wabu merupakan hasil pengembalian PT Freeport Indonesia kepada pemerintah yang dilakukan pada 2015. Ketika itu, Freeport sepakat mengu-rangi wilayah kerjanya menjadi 90.360 hektare (ha) dari semula 212.950 ha. Pengecilan wilayah kerja bertujuan untuk mencapai kesepakatan bagi Freeport meraih kelanjutan operasi berupa izin usaha per-tambangan khusus (IUPK).

Saat proses pengembalian, pihak Freeport pernah menyatakan, Blok Wabu memiliki potensi hingga sekitar 4,3 juta ore dengan kualitas emas yang cukup bagus yakni 2,47 gram per ton.

Secara terpisah, Staf Khusus Menteri BUMN Arya Sinulingga mengatakan, Blok Wabu diperkirakan memiliki luas sekitar 40.000 ha dan memiliki cadangan emas besar dengan potensi nilai hingga US$ 14 miliar. Masuknya Antam pada proyek tambang emas tersebut dinilai dapat menguntungkan pemerintah karena ada penerimaan pajak ke negara.

Sebelumnya, pada rapat bersama komisi VI DPR-RI 22 September, Menteri BUMN Erick Tohir mengatakan, pihaknya telah mengirim surat kepada Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif perihal pengelolaan tambang emas bekas Freeport.

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"We send a letter to MEMR, if SOE expects that the allocation that has been given by Freeport to the state will be prioritized to be given to SOE, so that Antam is not a trading company but a gold mining company in concrete terms," said Erick.

According to Erick, currently Antam has many employees, but does not own a gold mine. Moreover, the supply of gold in Indonesia is still quite large, and during this pandemic, the price of gold is very high.

Project In progress

Meanwhile, Antam has a number of projects that are still in the process of being completed. For example, the national strategic project of the East Halmahera Ferronickel factory, North Maluku. This Rp 4.03 tril l ion project was originally estimated to have a construction period of 30 months. Antam has started work on the factory construction since January 2017.

Currently, Antam is still completing the EPC factory construction, in addition to installing bricks or bricks for the project. When it is operational, the ferronickel smelter will have a capacity of 13,500 tonnes of Ni, so it is believed that it will play an important role in the government's downstream mineral mining program.

Antam's President Director, Dana Amin, said that currently his party is finalizing an agreement with PT Perusahaan Listrik Negara (PLN) to supply electricity at the East Halmahera smelter. The company estimates that the power plant will take around one year to build.

The East Halmahera factory, whose expansion funds are sourced from the State Equity Participation (PMN), said Dana, currently the remaining budget is around Rp 200 bill ion which has not been absorbed.

“Kami kirim surat ke ESDM, jika BUMN mengharapkan agar alokasi yang sudah diberikan Freeport ke negara, diprioritas-kan untuk diberikan ke BUMN, sehingga secara konkret Antam ini bukan trading company tapi perusahaan tambang emas,” jelas Erick.

Menurut Erick, saat ini Antam memiliki pegawai yang banyak, tapi tidak memiliki tambang emas. Terlebih pasokan emas di Indonesia masih cukup besar, dan pada masa pandemi ini, harga emas menjadi sangat tinggi.

Proyek Berjalan

Adapun Antam memiliki sejumlah proyek yang masih dalam proses penyelesaian. Semisal, proyek strategis nasional pabrik Feronikel Halmahera Timur, Maluku Utara. Proyek senilai Rp 4,03 triliun ini semula diperkirakan memiliki masa konstruksi selama 30 bulan. Antam telah memulai pekerjaan pembangunan pabrik sejak Januari 2017.

Saat ini, Antam masih menyelesaikan konstruksi EPC pabrik, selain pemasangan brick atau batu bata pada proyek tersebut. Ketika sudah beroperasi, smelter feronikel ini akan memiliki kapasitas sebesar 13.500 ton Ni, sehingga diyakini akan berperan penting dalam program hilirisasi tambang mineral yang diusung pemerintah.

Direktur Utama Antam, Dana Amin mengatakan, saat ini pihaknya melakukan finalisasi kesepakatan dengan PT Perusahaan Listrik Negara (PLN) untuk penyediaan listrik di smelter Halmahera Timur. Perseroan memperkirakaan pem-bangkit listrik itu membutuhkan waktu pembangunan sekitar satu tahun.

Pabrik Halmahera Timur yang dana ekspansinya bersumber dari Penyertaan Modal Negara (PMN), kata Dana, saat ini anggaran tersisa sekitar Rp 200 miliar yang belum terserap.

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"Now the smelter budget absorption progress has reached 97 percent. The nickel potential in Haltim is also very good, especially in Weda Bay. Antam is also developing the area around Tanjung Buli so that we can play a role in developing the economy in the Haltim region,” he explained to Commission VI of the Indonesian Parliament, Tuesday (29/9).

Regarding profit gains, Dana said that his party noted that there had been improve-ments at the beginning of semester II-2020. For information, the company experienced a decrease in net profit of up to 80.18% to Rp 84.82 billion in the first half of 2020 compared to the same period last year. This decline was triggered by the company's revenue which also fell 36.04% on an annual basis to Rp 9.22 trillion as of June 2020.

"Alhamdullillah, as of August the situation has improved, so we think the performance could be much better than the prognosis for this year's changes in the Company's Work Plan and Budget (RKAP)," he explained. Editor: Jauhari Mahardhika (Jauhari@investor.co.id)

“Sekarang progres penyerapan anggaran smelter telah mencapai 97%. Potensi nikel di Haltim juga sangat baik khususnya di Weda Bay. Antam juga sedang mengem-bangkan kawasan di sekitar Tanjung Buli supaya kami dapat berperan mengem-bangkan ekonomi di kawasan Haltim ini,” jelas dia kepada komisi VI DPR RI, Selasa (29/9).

Terkait perolehan laba, Dana mengatakan, pihaknya mencatat sudah ada perbaikan pada awal semester II-2020. Sebagai infor-masi, perseroan mengalami penurunan laba bersih hingga 80,18% menjadi Rp 84,82 miliar pada semester I-2020 di-bandingkan periode sama tahun lalu. Penurunan ini dipicu oleh pendapatan perseroan juga turun 36,04% secara tahunan menjadi Rp 9,22 triliun per Juni 2020.

“Alhamdullilah per Agustus situasi telah lebih baik, sehingga kami kira kinerja bisa jauh lebih baik dari prognosa Rencana Kerja dan Anggaran Perusahaan (RKAP) perubahan tahun ini,” jelas dia. Editor :

Jauhari Mahardhika (jauhari@investor.co.id)

Here is the List of Big Miners Who Received Government

Awards Wilda Asmarini, CNBC Indonesia

THE MINISTRY of Energy and Mineral

Resources (MEMR) has given awards to a number of mineral and coal mining companies that are considered to be implementing good mineral and coal mining engineering principles.

Ini Deretan Penambang Kelas Kakap yang Dapat Award

Pemerintah Wilda Asmarini, CNBC Indonesia

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) memberikan penghargaan kepada sejumlah perusahaan pertam-bangan mineral dan batu bara yang dinilai menjalankan kaidah teknik pertambangan minerba yang baik.

IMA-Daily Update Page 23

EMR Minister Arifin Tasrif said this is expected to be a benchmark for other mining business entities to manage mines in accordance with mining engineering principles.

"I hope that mining business entities and mining service business entities that receive awards can become role models, storefronts, and 'a place to see and be seen' for the application of mining engineering principles," said Arifin during his speech at the event 'Awarding Achievement for the Application of Good Mineral and Coal Mining Techniques for 2020', Tuesday (29/09/2020).

The awarding of this award is a routine activity held by the Ministry of EMR, speci fically an assessment from the Directorate General of Mineral and Coal.

This activity is a means of giving appreciation from the government to mining business entities and mining service business entities that have made efforts to comply with technical principles, carry out conservation of resources and reserves, create safe working conditions, and protect the environment, in order to realize good mining practices.

The following is a list of companies that received the award:

- Best Award for Successful Application of Good Mining Engineering Principles: 1. PT J Resources Bolaang Mangondow 2. PT Adaro Indonesia

- Mineral and Coal Mining Technical Management Award: a. Trophy Recipient: 1. PT Nusa Halmahera Minerals 2. PT Adaro Indonesia b. Award recipient: 1. PT Nusa Halmahera Minerals 2. PT Vale Indonesia Tbk, the Sorowako mine

Menteri ESDM Arifin Tasrif mengatakan hal ini diharapkan bisa menjadi patokan (bench-mark) bagi badan usaha pertambangan lain-nya untuk mengelola tambang sesuai dengan kaidah teknik pertambangan.

"Saya berharap agar badan usaha pertam-bangan dan badan usaha jasa pertambangan yang mendapatkan penghargaan dapat menjadi role-model, etalase, serta 'a place to see and be seen' untuk penerapan kaidah teknik pertambangan," tutur Arifin saat sambutan dalam acara 'Pemberian Peng-hargaan Prestasi Penerapan Kaidah Teknik Pertambangan Mineral dan Batu Bara yang Baik Tahun 2020' ini, Selasa (29/09/2020).

Pemberian penghargaan ini merupakan kegiatan rutin yang diselenggarakan Kemen-terian ESDM, khususnya dilakukan penilaian dari Direktorat Jenderal Mineral dan Batubara.

Kegiatan ini merupakan ajang pemberian apresiasi dari pemerintah kepada badan usaha pertambangan dan badan usaha jasa pertam-bangan yang telah melakukan upaya untuk mematuhi kaidah teknis, melaksanakan konservasi sumberdaya dan cadangan, men-ciptakan kondisi kerja yang aman, dan per-lindungan terhadap lingkungan hidup, dalam rangka mewujudkan praktek pertambangan yang baik atau Good Mining Practices.

Berikut daftar perusahaan yang mem-peroleh penghargaan tersebut:

- Penghargaan Terbaik Atas Keberhasilan Penerapan Kaidah Teknik Pertambangan Yang Baik: 1. PT J Resources Bolaang Mangondow 2. PT Adaro Indonesia

- Penghargaan Pengelolaan Teknis Pertambangan Mineral dan Batubara: a. Penerima Trophi: 1. PT Nusa Halmahera Minerals 2. PT Adaro Indonesia b. Penerima penghargaan: 1. PT Nusa Halmahera Minerals 2. PT Vale Indonesia Tbk, tambang Sorowako

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3. PT Aneka Tambang Tbk, Southeast Sulawesi nickel mining business unit

4. PT Adaro Indonesia 5. PT Kaltim Prima Coal 6. PT Berau Coal

- Mineral and Coal Mining Safety Management Award: 1. PT Adaro Indonesia 2. PT Nusa Halmahera Minerals 3. PT J Resources Bolaang Mangondow 4. PT Tambang Tondano Nusajaya 5. PT Meares Soputan Mining 6. PT Agincourt Resources 7. PT Tambang Damai 8. PT Kalimantan Energi Lestari 9. PT Borneo Indobara 10. PT Arutmin Indonesia, Batulicin Mine 11. PT Gunungbayan Pratamacoal Blok II 12. PT Arutmin Indonesia, Kintap Mine 13. PT Singlurus Pratama 14. PT Santan Batubara 15. PT Asmin Bara Bronang 16. PT Mahakam Sumber Jaya 17. PT Multi Harapan Utama 18. PT Antang Gunung Meratus 19. PT Timah Tbk, Bangka Land Production

Unit 20. PT Aneka Tambang Tbk, North Maluku

Nickel Mining Business Unit 21. PT Laskar Semesta Alam 22. PT Bukit Asam Tbk, Tarahan Port Unit.

- Mineral and Coal Mining Environ-mental Management Award: 1. PT Amman Mineral Nusa Tenggara 2. PT Adaro Indonesia 3. PT Aneka Tambang Tbk, Pongkor Gold

Mining Unit 4. PT Vale Indonesia Tbk, the Sorowako

Mine 5. PT Meares Soputan Mining 6. PT J Resources Bolaang Mangondow 7. PT Tambang Tondano Nusajaya 8. PT Agincourt Resources 9. PT Nusa Halmahera Minerals 10. PT Arutmin Indonesia, Batulicin Mine 11. PT Berau Coal

3. PT Aneka Tambang Tbk, unit bisnis pertambangan nikel Sulawesi Tenggara

4. PT Adaro Indonesia 5. PT Kaltim Prima Coal 6. PT Berau Coal

- Penghargaan Pengelolaan Keselamatan Pertambangan Mineral dan Batubara: 1. PT Adaro Indonesia 2. PT Nusa Halmahera Minerals 3. PT J Resources Bolaang Mangondow 4. PT Tambang Tondano Nusajaya 5. PT Meares Soputan Mining 6. PT Agincourt Resources 7. PT Tambang Damai 8. PT Kalimantan Energi Lestari 9. PT Borneo Indobara 10. PT Arutmin Indonesia, Tambang Batulicin 11. PT Gunungbayan Pratamacoal Blok II 12. PT Arutmin Indonesia, Tambang Kintap 13. PT Singlurus Pratama 14. PT Santan Batubara 15. PT Asmin Bara Bronang 16. PT Mahakam Sumber Jaya 17. PT Multi Harapan Utama 18. PT Antang Gunung Meratus 19. PT Timah Tbk, Unit Produksi Darat Bangka 20. PT Aneka Tambang Tbk, Unit Bisnis

Pertambangan Nikel Maluku Utara 21. PT Laskar Semesta Alam 22. PT Bukit Asam Tbk, Unit Pelabuhan

Tarahan.

- Penghargaan Pengelolaan Lingkungan Hidup Pertamb. Mineral dan Batubara: 1. PT Amman Mineral Nusa Tenggara 2. PT Adaro Indonesia 3. PT Aneka Tambang Tbk, Unit Pertam-

bangan Emas Pongkor 4. PT Vale Indonesia Tbk, Tambang

Sorowako 5. PT Meares Soputan Mining 6. PT J Resources Bolaang Mangondow 7. PT Tambang Tondano Nusajaya 8. PT Agincourt Resources 9. PT Nusa Halmahera Minerals 10. PT Arutmin Indonesia, Tambang Batulicin 11. PT Berau Coal

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12. PT Borneo Indobara 13. PT Kideco Jaya Agung 14. PT Kaltim Prima Coal 15. PT Multi Harapan Utama 16. PT Arutmin Indonesia, Senakin Mine 17. PT Arutmin Indonesia, Tambang Asam

Asam 18. PT Mandiri Inti Perkasa 19. PT Insani Baraperkasa 20. PT Teguh Sinar Abadi 21. PT Firman Ketaun Perkasa 22. PT Arutmin Indonesia, Tambang Santui 23. PT Arutmin Indonesia, Kintap Mine 24. PT Bukit Asam Tbk, Tanjung Enim

Mining Unit 25. PT Timah Tbk, Bangka Land Production

Unit.

- Mineral and Coal Conservation Manage-ment Award: 1. PT Timah Tbk, Bangka Land Production

Unit 2. PT Trubaindo Coal Mining 3. PT Vale Indonesia Tbk, Sorowako Mine 4. PT Timah Tbk, Belitung Production Unit 5. PT Timah Tbk, Bangka Marine

Production Unit 6. PT Amman Mineral Nusa Tenggara 7. PT Aneka Tambang Tbk, Southeast

Sulawesi Nickel Mining Business Unit 8. PT Aneka Tambang Tbk. Pongkor Gold

Mining Business Unit 9. PT Timah Tbk, Riau and Riau Islands

Production Unit 10. PT Freeport Indonesia 11. PT Meares Soputan Mining 12. PT J Resources Bolaang Mangondow 13. PT Indexim Coalindo 14. PT Kaltim Prima Coal 15. PT Multi Harapan Utama 16. PT Berau Coal 17. PT Adaro Indonesia 18. PT Indominco Mandiri 19. PT Multi Tambangjaya Utama 20. PT Suprabari Mapanindo Mineral 21. PT Firman Ketaun Perkasa 22. PT Lanna Harita Indonesia

12. PT Borneo Indobara 13. PT Kideco Jaya Agung 14. PT Kaltim Prima Coal 15. PT Multi Harapan Utama 16. PT Arutmin Indonesia, Tambang Senakin 17. PT Arutmin Indonesia, Tambang Asam

Asam 18. PT Mandiri Inti Perkasa 19. PT Insani Baraperkasa 20. PT Teguh Sinar Abadi 21. PT Firman Ketaun Perkasa 22. PT Arutmin Indonesia, Tambang Santui 23. PT Arutmin Indonesia, Tambang Kintap 24. PT Bukit Asam Tbk, Unit Pertambangan

Tanjung Enim 25. PT Timah Tbk, Unit Produksi Darat

Bangka.

- Penghargaan Pengelolaan Konservasi Mineral dan Batubara: 1. PT Timah Tbk, Unit Produksi Darat

Bangka 2. PT Trubaindo Coal Mining 3. PT Vale Indonesia Tbk, Tambang Sorowako 4. PT Timah Tbk, Unit Produksi Belitung 5. PT Timah Tbk, Unit Produksi Laut

Bangka 6. PT Amman Mineral Nusa Tenggara 7. PT Aneka Tambang Tbk, Unit Bisnis

Pertambangan Nikel Sulawesi Tenggara 8. PT Aneka Tambang Tbk Unit Bisnis

Penambangan Emas Pongkor 9. PT Timah Tbk, Unit Produksi Kepulauan

Riau dan Riau 10. PT Freeport Indonesia 11. PT Meares Soputan Mining 12. PT J Resources Bolaang Mangondow 13. PT Indexim Coalindo 14. PT Kaltim Prima Coal 15. PT Multi Harapan Utama 16. PT Berau Coal 17. PT Adaro Indonesia 18. PT Indominco Mandiri 19. PT Multi Tambangjaya Utama 20. PT Suprabari Mapanindo Mineral 21. PT Firman Ketaun Perkasa 22. PT Lanna Harita Indonesia

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23. PT Insani Baraperkasa 24. PT Kideco Jaya Agung 25. PT Wahana Baratama Mining 26. PT Arutmin Indonesia, Tambang

Senakin 27. PT Bharinto Ekatama 28. PT Teguh Sinar Abadi 29. PT Arutmin Indonesia, Tambang Satui.

- Award for Standardization Manage-ment and Mineral and Coal Mining Services Business: 1. PT Adaro Indonesia 2. PT Pamapersada Nusantara 3. PT Thiess Contractors Indonesia 4. PT Pontil Indonesia. (wia)

23. PT Insani Baraperkasa 24. PT Kideco Jaya Agung 25. PT Wahana Baratama Mining 26. PT Arutmin Indonesia, Tambang

Senakin 27. PT Bharinto Ekatama 28. PT Teguh Sinar Abadi 29. PT Arutmin Indonesia, Tambang Satui.

- Penghargaan Pengelolaan Standar-disasi dan Usaha Jasa Pertambangan Mineral dan Batubara: 1. PT Adaro Indonesia 2. PT Pamapersada Nusantara 3. PT Thiess Contractors Indonesia 4. PT Pontil Indonesia. (wia)

Indonesia's Weda Bay expects 4 new nickel plants to be ready in 2021

NICKEL smelting park PT Indonesia Weda Bay Industrial Park (IWIP) expects to complete

the building of four nickel processing plants next year, which would double its capacity, an official said on Tuesday.

"The current capacity is 110,000 tonnes of nickel content per year and it will double next year," an IWIP official, who declined to be named, told Reuters.

IWIP did not immediately respond to a request for comment on the timeframe for the plants and the projected output.

The official declined to name the investors in the new plants. Three smelting plants have already started operation at Weda Bay park this year.

A smelter controlled by China's Tsingshan Holding Group and France's Eramet was the first to start producing at IWIP in April with an initial annual capacity of 30,000 tonnes. The IWIP project on Halmahera island is among those that the Indonesian government have made a "national priority" to boost processing of nickel at home after it stopped exporting unprocessed ore.

Indonesia, which was the world's biggest nickel ore exporter before its ban, seeks to create a full nickel supply chain at home from extracting laterite to produce electric vehicles (EVs) batteries from nickel chemicals, to eventually build EVs.

(Reporting by Fransiska Nangoy, Angie Teo; Editing by Martin Petty)

IMA-Daily Update Page 27

Metso Outotec signs contract with Zijin Mining Published by Jessica Casey, Editorial Assistant

METSO Outotec has signed a contract with Zijin Mining Co. Ltd for the delivery of key

minerals processing equipment to the company’s Qulong Copper Mine project in Tibet, China.

Metso Outotec’s scope of delivery covers a 58 MW grinding circuit equipped with horizontal and vertical grinding mills, process automation and various types of installation and

commissioning services. The order value is around €25 million and it has been booked in Metso Outotec’s 3Q20 orders received.

“We are honoured to be selected as the supplier for the key grinding circuit equipment for

this major project. Our solutions will help Zijin Mining in their quest to create a sustainable world-class operation with high productivity and cost effectiveness,” said Stephan Kirsch,

President of the Minerals business area at Metso Outotec. “The merger of Metso and Outotec has strengthened our local business presence, which will be of great benefit to the

implementation of the project.”

Qulong Copper Mine is owned and operated by Zijin Mining Co. Ltd with proven available

copper reserves exceeding 10 million t. The mine’s concentrator is built on the Qinghai Tibet Plateau. After the completion of the project, the ore handling capacity of the concentrator will

reach 150 000 tpd, making Qulong Copper the largest copper mine in China.

Vale suspends iron-ore production at Viga By: Reuters

BRAZILIAN miner Vale said in a filing on Monday it is temporarily suspending operations at

its Viga concentration plant in Minas Gerais state, which will result in 11 000 t/d fewer of iron-ore fine production.

Iron ore fines are high-quality fine ore powders.

This follows a court ruling which Vale said it will appeal. The world's second largest producer of the key steelmaking ingredient has been under scrutiny from authorities after two deadly

dam breaks in 2015 and 2019, and is the subject of several ongoing legal cases that often affect production.

On Monday, Vale said that last week it suspended tailings disposal and works at the B7 dam at

Jeceaba, in Minas Gerais state. The company also said it suspended Viga waste disposal plant in Congonhas, in Minas Gerais state.

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Both suspensions affect output, since mining sludge from iron ore mining needs to be properly disposed. They came after a court ruling on a public civil action suit filed by the municipality of Jeceaba, the company said.

This is the second time Vale has suspended operations at the waste disposal plant, with impact to production, since acquiring it in August last year.

Vale bought miner Ferrous Resources Limited for $550-million in 2019, including units for mining tailings disposal, after shutting down some of its dams in Minas Gerais state for security risk.

Vale said in the Monday filing the Viga operational unit fulfills the necessary requirements for the issuance of the B7 dam operating permit, and will try to revert the decision in court.

Two weeks after the acquisition in 2019, Vale said it had identified an inconsistency in the documents related to the operation permit from the municipality of Jeceaba. Operations were suspended for about three months, with a similar impact to production - approximately 330 000 t/m - the company said then.

Australia’s Queensland state approves giant coal mine Cecilia Jamasmie

AUSTRALIA’s Queensland authorities have granted Pembroke Resources a mining lease for

its A$1-billion (about $710m) Olive Downs mine, poised to become the state’s third-largest coal operation.

The mine, 40 km south of Moranbah in the Bowen Basin, will have a productive life of 80 years and will create 1,000 jobs, Queensland Premier and trade minister Annastacia Palaszczuk said.

Core construction activities at the mine site are expected to begin in 2021 with mining starting as soon as construction is complete, State Mines Minister Anthony Lynham said in the statement, without providing details on when that would be.

Pembroke chief executive officer Barry Tudor said the approval of the mining leases was the final hurdle to beginning stage one of the project.

“We are extremely pleased to have been granted the mining leases, having consulted extensively with the local community over the past four years,” he said in a separate statement.

In its first phase, the mine is slated to churn out six million tonnes of metallurgical coal a year, doubling to 12 million tonnes a year in the second stage.

Once at full tilt, Olive Downs should produce up to 15 million tonnes of hard coking coal a year, with quality just below that of premium hard coals. Demand for the latter is expected to concentrate in the coming year as steelmakers move to reduce pollution and cut carbon emissions.

IMA-Daily Update Page 29

Output will be transported by rail to Dalrymple Bay Coal Terminal for export to Asian markets, particularly Japan, China, India and South Korea.

Olive Downs, which holds 838 million tonnes of coal resources and 514 million tonnes of coal reserves, is expected to generate some A$5.5-billion in royalties over its mine life.

Adani, JSPL, Vedanta, 43 others bid for commercial coal mines By Sarita C Singh, ET Bureau

FORTY six companies including Vedanta Group, Hindalco Adani Group, Jindal Steel & Power,

Bharat Aluminium Company and JSW Energy have put in bids in the country's first

commercial coal mine auctions. Of the 38 mines on auction, 10 mines have received very good

response with 5-6 bidders each, while about 10 more have received more than two bids,

required to carry the auctions, sources said.

There has been no or tepid response for the balance mines on auctions, they said.

“A total number of 82 bids from 46 companies have been received off-line/physically in the

office of the Nominated Authority for 23 coal mines/blocks. 2 or more bids have been

received for 20 coal mines / blocks,” an official statement said. The online bids will be opened

on Wednesday, an official said. Each bidder had to submit bids both physically and online, a

ministry spokesperson said.

“The interest is likely to be good for big blocks like Radhikapur East and Radhikapur West,

Gare Palma IV/1, Gare Palma IV/7 with participation from atleast 5-6 big companies,” the

official said.

The technical bids were opened on Tuesday after the Supreme Court on Monday refused a

plea made by the Jharkhand government to stay the auction process. Tuesday was the last day

for bid submission as the process was started in June 18. The Supreme Court will hear the

matter again on Wednesday.

The Jharkhand government had in July approached the Supreme Court against the Centre's

decision to auction coal blocks situated in the state for commercial mining saying the auction

will not benefit the state and will rather result in loss in the prevailing Covid-19 pandemic. It

also alleged that the announcement was made unilaterally without consultations with the

state.

Earlier, the coal ministry had revised the list of mines to 38 blocks from 41 mines announced

earlier following opposition from the Chhattisgarh government. It added three blocks –

Dolesara, Jarekela and Jharpalam-Tangarghat – and withdrew five blocks in the eco-sensitive

Hasdeo Arand zone.

IMA-Daily Update Page 30

The Cabinet Committee on Economic Affairs had on May 20 approved the methodology for

auction of coal and lignite mines for sale on revenue sharing basis and increasing the tenure

of coking coal linkage. Developers of the blocks will have easy entry and exit options. Any

company registered in India will be eligible to participate in coal auctions and there will be no

restrictions on sale or utilisation of coal.

Companies that start early production from the blocks will be offered 50% rebate on revenue

share payable to the government.