IMA-Daily Update Page 1

TABLE OF CONTENTS

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Measuring the Impact of Declining Global Coal Demand Mengukur Dampak Penurunan Permintaan Batu Bara Global Darma Henwa (DEWA) Reformed the Board of Directors and Commissioners Darma Henwa (DEWA) Rombak Susunan Direksi dan Komisaris

The difficult period has passed, Indo Tambangraya (ITMG)'s performance is predicted to begin to improve Periode sulit sudah lewat, kinerja Indo Tambangraya (ITMG) diramal mulai membaik

Nickel Price Task Force Team Formed, Have Any Findings? Tim Satgas Harga Nikel Terbentuk, Sudah Ada Temuan?

Freeport Becomes Petrosea (PTRO) Biggest Revenue Contributor Freeport Jadi Penyumbang Pendapatan Terbesar Petrosea (PTRO)

Delta Dunia Makmur (DOID) coal production fell in July 2020, this is the reason Produksi batubara Delta Dunia Makmur (DOID) turun di Juli 2020, ini penyebabnya Legitimate! Wexler Capital Owns 21% of Bakrie Group's Gold Mining Shares Sah! Wexler Capital Kuasai 21% Saham Tambang Emas Grup Bakrie Until June, Darma Henwa (DEWA) OB Volume Grows 33.8 Percent Hingga Juni, Volume OB Darma Henwa (DEWA) Tumbuh 33,8 Persen

Faisal Basri Accuses Nickel Downstreaming Benefits Chinese Investors Faisal Basri Tuding Hilirisasi Nikel Untungkan Investor China Oops! Add More Negative Sentiment, Coal Prices Drop Duh! Tambah Lagi Sentimen Negatif, Harga Batubara Ambles

Investor Daily Bisnis

Kontan

CNBC Indonesia

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Kontan CNBC Indonesia Bisnis

CNN Indonesia CNBC Indonesia

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Copper heads for historic squeeze with China’s demand red hot Mining operations set for revamp Glencore considers future of Mount Isa copper assets Govt revises list, 38 coal blocks to be auctioned for commercial mining: Coal Ministry Global Mining Symposium: Elim Mining’s John Antwi on copper fundamentals

Mining.com Livemint Australian Mining The Economic Times The Northern Miner

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Measuring the Impact of Declining Global Coal Demand

Parluhutan Situmorang

THE DECLINE in global coal demand which has an impact on the average selling price can affect the financial performance of PT Adaro Energy Tbk (ADRO). However, cutting coal production targets and demand in the fourth quarter of this year, which are expected to increase again, could be a positive sentiment for domestic coal issuers.

Danareksa Sekuritas analyst Stefanus Darmagiri revealed that the decline in world coal demand due to the Covid-19 pandemic had an impact on the decline in coal production targets by a number of domestic miners. The amount of cut the target ranges from 4-18% of the original target.

The decline in global coal demand, according to him, can be seen from data on India's coal imports which fell by 35.8% to 57 million tons during April-July 2020, in line with the abundant stock in the country. Japan also recorded a decline in coal imports by 3.6 percent to 62 million tons during the seven months of this year due to weakening demand for electricity along with low gas prices.

Meanwhile, China's coal imports increased 6.8% to 200 million tons during January-July this year. Demand is estimated to be lower in the second semester of this year, despite differences in the selling price of domestic and imported coal.

This condition has made national mining companies cut their production volume target this year . Adaro Energy has announced a downward revision of this year's coal production volume target from 54-58 million tonnes to around 52-54 million tonnes.

Mengukur Dampak Penurunan Permintaan Batu Bara Global

Parluhutan Situmorang

PENURUNAN permintaan batu bara global yang berdampak pada rata-rata harga jual dapat mempengaruhi kinerja keuangan PT Adaro Energy Tbk (ADRO). Namun, pemang-kasan target produksi batu bara dan permin-taan pada kuartal IV tahun ini yang diper-kirakan kembali meningkat bisa menjadi sentimen positif terhadap emiten batu bara dalam negeri.

Analis Danareksa Sekuritas Stefanus Darma-giri mengungkapkan, penurunan permintaan batu bara dunia akibat pandemic Covid-19 telah berimbas terhadap penurunan target produksi batu bara oleh sejumlah penam-bang domestik. Besaran pemangkasan target berkisar 4-18% dari target semula.

Penurunan permintaan batu bara global, menurut dia, terlihat dari data impor batu bara India yang turun hingga 35,8% menjadi 57 juta ton selama April-Juli 2020, seiring stok yang masih berlimpah di negara ter-sebut. Jepang juga mencatat penurunan impor batu bara hingga 3,6% menjadi 62 juta ton sepanjang tujuh bulan tahun ini karena dipicu oleh pelemahan permintaan listrik bersamaan dengan rendahnya harga gas.

Sedangkan impor batu bara Tiongkok me-ningkat 6,8% menjadi 200 juta ton sepanjang Januari-Juli tahun ini. Permintaan tersebut diperkirakan lebih rendah pada semester II tahun ini, meskipun ada perbedaan harga jual batu bara dalam negeri dan impor.

Kondisi tersebut membuat perusahaan pertambangan nasional memangkas target volume produksi tahun ini. Adaro Energy telah mengumumkan revisi turun target volume produksi batu bara tahun ini dari 54-58 juta ton menjadi sekitar 52-54 juta ton.

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PT Bumi Resources Tbk (BUMI) also made cuts to as much as 83-88 million tons from the original target of 85-90 million tons. Meanwhile, PT Bukit Asam Tbk (PTBA) has lowered its coal production target from 30.3 million tons to 25 million tons this year.

"Global coal producers also cut the coal production volume target this year, ranging from 13.3-14% from the original target. The cuts are none other than the result of falling demand after the Covid-19 pandemic swept the world. The target cut was revealed from data from the company Coal India Limited and the Russian coal miners association,” wrote Stefanus in his latest research.

Even though global demand has fallen, according to him, the selling price of coal still has a chance to recover this year, at least in the fourth quarter of 2020. The existence of winter and expectations of global economic recovery next year are expected to have an impact on the increase in the selling price of coal from its current low of US$ 50 per ton.

These various factors prompted Danareksa Sekuritas to maintain its recommendation for overweight mining sector stocks. Buying recommendations are given for ADRO, PTBA, and ITMG shares. Especially for ADRO, the target price is Rp 1,300. The target price reflects this year's PE forecast of 10.9 times and that of 2021 it will reach 8.9 times.

Exceeding Expectations

Adaro Energy posted a 23.2% decrease in revenue to US$ 1.36 billion in the first half of 2020 compared to the same period last year of US$ 1.77 bill ion. The decline resulted in the company's net profit weakening by 47.8 percent from US$ 297 million to US$ 155 million. The decline in net profit is also in line with the weakening of the company's net profit margin from 16.7% to 11.4%.

Pemangkasan juga dilakukan PT Bumi Resources Tbk (BUMI) menjadi sebanyak 83-88 juta ton dari target semula 85-90 juta ton. Sedangkan PT Bukit Asam Tbk (PTBA) menurunkan target produksi batu bara dari 30,3 juta ton menjadi 25 juta ton tahun ini.

“Produsen batu bara global juga ikut memangkas target volume produksi batu bara tahun ini berkisar 13,3-14% dari target semula. Pemangkas an tid ak lain akibat penurunan permintaan setelah pandemic Covid-19 melanda dunia. Pemangkasan target terungkap dari data perusahaan Coal India Limited dan asosiasi penambang batu bara Rusia,” tulis Stefanus dalam riset terbaru.

Meski permintaan global turun, menurut dia, harga jual batu bara masih memiliki peluang untuk kembali pulih tahun ini, setidaknya pada kuartal IV-2020. Adanya musim dingin dan ekspektasi perbaikan ekonomi global tahun depan diharapkan berimbas terhadap kenaikan harga jual batu bara dari posisi terendahnya saat ini yang mencapai US$ 50 per ton.

Berbagai faktor tersebut mendorong Danareksa Sekuritas untuk mempertahan-kan rekomendasi overweight saham sektor pertambangan. Rekomendasi beli diberikan untuk saham ADRO, PTBA, dan ITMG. Khusus ADRO, target harganya Rp 1.300. Target harga tersebut merefleksikan per-kiraan PE tahun ini 10,9 kali dan tahun 2021 mencapai 8,9 kali.

Di Atas Ekspektasi

Adaro Energy membukukan penurunan pendapatan sebesar 23,2% menjadi US$ 1,36 miliar pada semester I-2020 di--bandingkan periode sama tahun lalu sebanyak US$ 1,77 miliar. Penurunan ter-sebut berimbas terhadap pelemahan laba bersih perseroan hingga 47,8% dari US$ 297 juta menjadi US$ 155 juta. Penurunan laba bersih juga sejalan dengan pelemahan margin keuntungan bersih perseroan dari 16,7% menjadi 11,4%.

IMA-Daily Update Page 5

“The company's revenue realization has exceeded our estimate, equivalent to 54.5 percent and according to analyst consensus of 48.2 percent. Meanwhile, the company's net profit until the first half of 2020 is equivalent to 49% of our target and 53.2% of the consensus of analysts this year,” wrote Mirae Asset Sekuritas Indonesia analyst Andy Wibowo Gunawan in his research.

According to him, the decline in Adaro's financial performance was also in line with the weakening of the company's operational performance, namely Adaro's coal production volume which fell 4.1% to 27.3 million tons. However, the realization has met expectations, or the equivalent of 50.5% of the production target this year.

The decline in the company's financial performance was also triggered by the decline in the company's average selling price of coal by 18.3% to US$ 46 per ton in the first half of 2020. Likewise, sales volume was corrected by 5.7% to 27.1 million tons, so that the company's revenue fell in the first half of this year.

"Even though the selling price of coal is still falling due to the Covid-19 pandemic, Adaro Energy is projected to still reap a profit this year of US$ 317 million compared to last year's achievement of US $404 million," explained Andy.

Mirae Asset Sekuritas maintains a recommendation to hold ADRO shares with a target price of Rp 1,260. The target price is based on the PE assumption this year of around 8.5 times. The target also considers the company to continue to make profits amid falling prices and global coal demand.

Extend Loan

Adaro Energy through its subsidiary, PT Saptaindra Sejati, extended the loan maturity of US$ 350 million from August 2020 to August 2022.

“Realisasi pendapatan perseroan sudah melampaui perkiraan kami atau setara dengan 54,5% dan sesuai dengan konsensus analis sebesar 48,2%. Sedangkan perolehan laba bersih perseroan hingga semester I-2020 setara dengan 49% target kami dan 53,2% dari konsensus analis tahun ini,” tulis analis Mirae Asset Sekuritas Indonesia Andy Wibowo Gunawan dalam risetnya.

Menurut dia, penurunan kinerja keuangan Adaro juga sejalan dengan pelemahan kinerja operasional perseroan, yaitu volume produksi batu bara Adaro yang turun 4,1% menjadi 27,3 juta ton. Meski demikian, realisasi tersebut sudah sesuai ekspektasi atau setara dengan 50,5% dari target produksi sepanjang tahun ini.

Penurunan kinerja keuangan perseroan juga dipicu oleh pelemahan rata-rata harga jual batu bara perseroan sebesar 18,3% menjadi US$ 46 per ton pada semester I-2020. Begitu juga dengan volume penjualan terkoreksi sebanyak 5,7% menjadi 27,1 juta ton, sehingga pendapatan perseroan turun pada paruh pertama tahun ini.

“Meskipun harga jual batu bara masih turun akibat pandemic Covid-19, Adaro Energy diproyeksikan tetap meraup keuntungan tahun ini menjadi US$ 317 juta dibandingkan pencapaian tahun lalu senilai US$ 404 juta,” jelas Andy.

Mirae Asset Sekuritas mempertahankan rekomendasi hold saham ADRO dengan target harga Rp 1.260. Target harga tersebut menggunakan asumsi PE tahun ini sekitar 8,5 kali. Target tersebut juga mempertimbang-kan perseroan tetap mencetak keuntungan di tengah penurunan harga dan permintaan batu bara global.

Perpanjang Pinjaman

Adaro Energy melalui anak usahanya, PT Saptaindra Sejati, memperpanjang jatuh tempo pinjaman senilai US$ 350 juta dari semula Agustus 2020 menjadi Agustus 2022.

IMA-Daily Update Page 6

The company plans to always strengthen its capital structure going forward. As of semester I-2020, Adaro Energy's total liabilities decreased 1% to US$ 2.69 billion compared to the same period last year.

Current liabilities decreased 18% to US$ 859 million mainly due to lower trade and bank loans . Non-current l iabilities increased 10% to US$ 1.83 billion. Adaro Energy's current share of long-term debt in the first half of 2019 decreased 19% on an annual basis to US$ 329 million. Editor: Gora

Kunjana (gora_kunjana@investor.co.id)

Perseroan berencana selalu memperkuat struktur permodalan ke depannya. Hingga semester I-2020, total kewajiban Adaro Energy turun 1% menjadi US$ 2,69 miliar dibandingkan periode sama tahun lalu.

Kewajiban lancer turun 18% menjadi US$ 859 juta terutama akibat penurunan utang usaha dan utang bank. Kewajiban non-lancar naik 10% menjadi US$ 1,83 miliar. Bagian lancar atas utang jangka panjang Adaro Energy pada semester I-2019 turun 19% secara tahunan menjadi US$ 329 juta. Editor : Gora Kunjana (gora_kunjana@investor. co.id)

Darma Henwa (DEWA) Reformed

the Board of Directors and Commissioners

Finna U. Ulfah

THE MINING contractor issuer, PT Darma

Henwa Tbk., Has overhauled its board of directors and commissioners.

This was decided in the second annual general meeting of shareholders or AGMS for the 2019 financial year and the Second Extraordinary General Meeting of Share-holders (EGMS) which was held on Thursday (3/9/2020).

Vice President Commissioner and Independent Commissioner Darma Henwa Suadi Atma said that the change in composition is expected to have a positive impact on the company.

"This change in the composition of the management is expected to strengthen the Company's business structure and make Darma Henwa more productive and competitive in improving its performance in the future," said Suadi as quoted from his official statement, Thursday (3/9/2020).

Darma Henwa (DEWA) Rombak

Susunan Direksi dan Komisaris Finna U. Ulfah

EMITEN kontraktor pertambangan, PT

Darma Henwa Tbk., merombak susunan direksi dan komisarisnya.

Hal itu diputuskan dalam rapat umum pemegang saham tahunan atau RUPST kedua untuk tahun buku 2019 dan Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) Kedua yang diselenggarakan Kamis (3/9/2020).

Wakil Presiden Komisaris sekaligus Komisaris Indipenden Darma Henwa Suadi Atma mengatakan bahwa perubahan susunan tersebut diharapkan dapat mem-bawa dampak positif kepada perseroan.

“Perubahan susunan pengurus ini diharapkan dapat memperkuat struktur bisnis Perseroan serta membuat Darma Henwa semakin produktif dan kompetitif dalam meningkatkan kinerjanya di masa yang akan datang,” ujar Suadi seperti dikutip dari keterangan resminya, Kamis (3/9/2020).

IMA-Daily Update Page 7

To note, in 2019, the issuer coded as DEWA shares managed to book revenue of US$

344.64 million throughout 2019. This acquisition managed to grow 24.83

percent compared to 2018 of US$ 276.09 million.

In addition, DEWA also managed to book a

47.3 percent increase in profit for the year attributable to owners of the parent entity

to US$ 3.76 million. In 2018, the company only posted a profit for the year of US$ 2.5

million.

The following is the latest composition of the directors of commissioners and

directors of Darma Henwa:

BOARD OF COMMISSIONERS:

President Commissioner: Nalinkant Amratlal Rathod

Vice President Commissioner (Independent): Suadi Atma

Independent Commissioner: Muhammad Lutfi

Independent Commissioner: Gories Mere

Independent Commissioner: Kanaka Puradiredja

Commissioner: Djajeng P. Andalaswanto

Commissioner: Ashok Mitra

DIRECTORS:

President Director: Saptari Hoedaja

Vice President Director: Prabhakaran Balasubramanian

Director: Ivi Sumarna Suryana

Director: Agus Efendi

Director: Rio Supin. Editor: Hafiyyan

Untuk diketahui, pada 2019, emiten berkode saham DEWA itu berhasil mem-

bukukan pendapatan sebesar US$344,64 juta sepanjang 2019. Perolehan tersebut

berhasil tumbuh 24,83 persen daripada 2018 sebesar US$276,09 juta.

Selain itu, DEWA juga berhasil mem-

bukukan kenaikan 47,3 persen pada laba tahun berjalan yang dapat diatribusikan

kepada pemilik entitas induk menjadi US$3,76 juta. Pada 2018, perseroan hanya

membukukan laba tahun berjalan US$2,5 juta.

Berikut susunan direksi komisaris dan

direksi Darma Henwa terbaru:

DEWAN KOMISARIS:

Presiden Komisaris : Nalinkant Amratlal Rathod

Wakil Presiden Komisaris (Independen) : Suadi Atma

Komisaris Independen : Muhammad Lutfi

Komisaris Independen : Gories Mere

Komisaris Independen : Kanaka Puradiredja

Komisaris : Djajeng P. Andalaswanto

Komisaris : Ashok Mitra

DIREKSI:

Presiden Direktur : Saptari Hoedaja

Wakil Presiden Direktur : Prabhakaran Balasubramanian

Direktur : Ivi Sumarna Suryana

Direktur : Agus Efendi

Direktur : Rio Supin. Editor : Hafiyyan

IMA-Daily Update Page 8

The difficult period has passed, Indo Tambangraya (ITMG)'s performance is predicted to

begin to improve Reporter: Hikma Dirgantara | Editor: Wahyu

T. Rahmawati

AFTER undergoing a poor performance in

the first half, PT Indo Tambangraya Megah Tbk (ITMG) is predicted to rise soon.

Kresna Sekuritas analyst Robertus Hardy said ITMG's poor performance, especially in terms of the bottom line in the second quarter of 2020, was the impact of the postponement of the tax burden. After going through this moment, Robertus assessed that investors should anticipate the potential for higher profitability in the future.

"With the hope that the weighted performance burden will not appear again. In addition, the price of coal, which has been in freefall recently and is approaching its lowest level in the last five years, will increase the chance for the price to rebound again," Robertus told Kontan.co.id, Thursday (3/9).

Robertus estimates that as long as the average selling price (ASP) of coal at the end of the year is not below US$ 57 per ton-US$ 58 per ton, it will not be a weight to ITMG's performance.

Meanwhile, Sinarmas Sekuritas analyst Richard Suherman in his research on August 12, 2020, has cut his projection for coal prices. Initially he predicted it would be at the level of US$ 60 per ton and this was revised to US$ 58 per ton by the end of this year. This is due to the recovery in coal prices which is likely to take longer than expected the impact of China's import restriction policies.

Periode sulit sudah lewat, kinerja Indo Tambangraya

(ITMG) diramal mulai membaik Reporter: Hikma Dirgantara | Editor: Wahyu

T. Rahmawati

SETELAH menjalani paruh pertama dengan kinerja yang kurang apik, PT Indo Tambangraya Megah Tbk (ITMG) diramal akan segera bangkit.

Analis Kresna Sekuritas Robertus Hardy mengatakan, kinerja buruk ITMG, khusus-nya dari segi bottom line pada kuartal II-2020 imbas dari penangguhan beban pajak. Setelah melalui momen tersebut, Robertus menilai investor harus mengantisipasi potensi profitabilitas yang lebih tinggi di masa yang akan datang.

“Dengan harapan beban pemberat kinerja tersebut tidak muncul lagi. Ditambah lagi harga batubara yang ter jun bebas belakangan ini dan mendekati level terendahnya dalam lima tahun terakhir, akan meningkatkan peluang untuk harganya kembali rebound,” ujar Robertus kepada Kontan.co.id, Kamis (3/9).

Robertus memperkirakan, selama average selling price (ASP) batubara pada akhir tahun nanti tidak berada di bawah US$ 57 per ton-US$ 58 per ton maka tidak akan menjadi pemberat kinerja ITMG.

Sementara analis Sinarmas Sekuritas Richard Suherman dalam risetnya pada 12 Agustus 2020 telah memangkas proyeksi-nya untuk harga batubara. Semula dia memperkirakan akan ada di level US$ 60 per ton dan direvisi menjadi US$ 58 per ton pada akhir akhir tahun ini. Ini disebabkan oleh pemulihan harga batubara yang berpeluang lebih lama dari perkiraan imbas dari kebijakan pembatasan impor China.

IMA-Daily Update Page 9

"Nevertheless, we see that coal prices should slowly start to improve in the third

quarter of 2020. Mainly because of the widening price gap between domestic

Chinese coal and Newcastle coal, which is around US$ 24 per tonne gap,” said

Richard.

Richard added that in terms of supply and demand, it will also start to improve

because almost half of the coal miners do not profit from the current price. The

consideration that China will relax import restrictions also has the potential to be a

positive catalyst for ITMG.

"Towards winter, demand will increase. In addition, China's domestic coal prices are currently at the highest point targeted by the government in the range of CNY 500-CNY 570," continued Richard.

Robert has also calculated that ITMG has the opportunity to distribute interim dividends this year.

"Based on last year's performance and the first half of this year, and having a pile of cash worth US$ 207.69 million, with only US$ 49.9 million allocated for capex, we estimate that ITMG will be able to distribute interim dividends of Rp 800 per share. Rp 815 per share which is likely to be announced in October," added Robertus.

Meanwhile, for ITMG's performance, Robertus projects that this year ITMG will be able to pocket US$ 1.37 billion in revenue with a net profit of US$ 82 million.

Robertus also recommended buying ITMG with a target price of Rp 9,600 per share. The consideration is a good balance sheet because it tends to have no debt as well as premium quality ITMG coal, a product that has become a favorite among domestic base metal smelting operators.

“Kendati demikian, kami melihat seharusnya harga batubara secara perlahan akan mulai membaik pada kuartal III-2020. Utamanya karena semakin lebarnya gap harga antara batubara domestik China dan batubara Newcastle, yang berkisar US$ 24 per ton gap,” ujar Richard.

Richard menambahkan, dari segi pasokan dan permintaan juga akan mulai membaik karena hampir setengah dari penambang batubara tidak mendapat untung dari harga saat ini. Pertimbangan, China akan melaku-kan relaksasi pembatasan impor juga ber-potensi menjadi katalis positif untuk ITMG.

“Menjelang masuk musim dingin, permin-taan akan meningkat. Selain itu, harga batu-bara domestik China saat ini sudah berada di titik tertinggi yang sudah di-targetkan oleh pemerintah di kisaran CNY 500-CNY 570,” sambung Richard.

Robert juga telah melakukan hitungan bahwa ITMG berpeluang akan membagikan dividen interim pada tahun ini.

“Berdasarkan kinerja tahun lalu dan paruh pertama tahun ini, serta mempunyai tumpuk-an uang senilai US$ 207,69 juta, dengan hanya US$ 49,9 juta yang dialokasikan untuk capex, kami memperkirakan ITMG akan mampu membagikan dividen interim senilai Rp 800 per saham - Rp 815 per saham yang kemung-kinan akan diumumkan pada Oktober,” tambah Robertus.

Sementara untuk kinerja ITMG, Robertus memproyeksikan pada tahun ini ITMG akan mampu mengantongi pendapatan sebesar US$ 1,37 miliar dengan laba bersih US$ 82 juta.

Robertus pun merekomendasikan untuk beli ITMG dengan target harga Rp 9.600 per saham. Pertimbangannya adalah neraca keuangan yang baik karena cenderung tidak memiliki utang serta batubara ITMG yang kualitasnya premium, produk yang telah jadi favorit di kalangan operator peleburan logam dasar domestik.

IMA-Daily Update Page 10

Meanwhile, Richard admits that he is quite alert with the industrial recovery process, even though he sees the current coal price and ITMG valuation as quite attractive. Richard also suggested buying ITMG with a target price of Rp 10,150 per share. Thursday (3/9), ITMG's share price fell 0.57% to Rp 8,650 per share.

Sedangkan Richard mengaku cukup waspada dengan proses pemulihan industri, kendati demikian ia melihat harga batubara dan valuasi ITMG saat ini cukup menarik. Richard pun menyarankan untuk beli ITMG dengan target harga Rp 10.150 per saham. Kamis (3/9), harga saham ITMG turun 0,57% ke Rp 8.650 per saham.

Nickel Price Task Force Team Formed, Have Any Findings?

Anisatul Umah, CNBC Indonesia

THE SUPERVISORY team for the domestic nickel trade system was formed by the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan in mid-August.

This was stated in the Decree of the Coordinating Minister for Marves RI Number 108 of 2020 concerning the Work Team to Supervise the Implementation of the Mineral Reference Price (HPM) for Nickel, which was set on August 13, 2020 yesterday.

Then during this team's work, have there been any findings of violations?

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, said that after the formation of this supervisory team, until today there have been no findings of any violations.

"The monitoring team has been working. Findings? There are no (findings)," he briefly told reporters when he was met after a hearing (RDP) at Commission VII DPR RI, Thursday (3/09/2020).

Tim Satgas Harga Nikel Terbentuk, Sudah Ada Temuan?

Anisatul Umah, CNBC Indonesia

TIM pengawas tata niaga nikel domestik

telah dibentuk oleh Menteri Koordinator

Bidang Kemaritiman dan Investasi (Menko

Marves) Luhut Binsar Pandjaitan pada

pertengahan Agustus lalu.

Hal ini tertuang dalam Keputusan Menko

Marves RI Nomor 108 Tahun 2020 tentang Tim Kerja Pengawasan Pelaksanaan Harga

Patokan Mineral (HPM) Nikel, yang telah ditetapkan pada 13 Agustus 2020 kemarin.

Lalu selama tim ini bekerja, apakah sudah adakah temuan pelanggaran?

Direktur Jenderal Mineral dan Batu Bara

Kementerian Energi dan Sumber Daya Mineral Ridwan Djamaluddin mengatakan

setelah terbentuknya tim pengawas ini sampai hari ini belum ada temuan

pelanggaran.

"Tim pengawas sudah bekerja. Temuan? Tidak ada (temuan)," ujarnya singkat

kepada wartawan saat ditemui selepas Rapat Dengar Pendapat (RDP) di Komisi

VII DPR RI, Kamis, (3/09/2020).

IMA-Daily Update Page 11

The supervision carried out by the supervisory team is like ensuring the price used in the ore buying and selling transaction is in accordance with the Mineral Reference Price (HPM). In addition, ensuring the ore that is traded is ore mined from the IUP area that has Clean and Clear (C&C) status and is in accordance with the agreed contract.

Then, the team also monitors the compliance report on Regulation of the Minister of EMR Number 11 of 2020 which is submitted quarterly by mining business actors and processing and refining business actors. The supervisory team is chaired by the Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs.

As is known, the Minister of EMR has issued Regulation of the Minister of EMR No.11 of 2020 concerning the Third Amendment to the Minister of EMR Regulation No. 07 of 2017 concerning Procedures for Setting Benchmark Prices for Metal Mineral and Coal Sales which was promulgated on April 14, 2020.

This regulation states that HPM for metal is the lower limit price in calculating the obligation to pay production fees by the holders of Production Operation IUP and Production Operation IUPK. This metal HPM is also a reference for selling prices for IUP and IUPK holders for the sale of nickel ore.

However, if the transaction price is lower than the HPM for the metal, then the sale can be made under the HPM with a maximum difference of 3% from the HPM. However, if the transaction price is higher than the HPM, then the sales must follow the transaction price above the HPM for the metal.

This regulation is valid for 30 days from its enactment. That is, it will be effective since May 14, 2020.

Pengawasan yang dilakukan oleh tim pengawas ini seperti memastikan harga yang digunakan dalam transaksi jual beli bijih sesuai dengan Harga Patokan Mineral (HPM). Selain itu, memastikan bijih yang diperjualbelikan merupakan bijih yang ditambang dari wilayah IUP yang telah berstatus Clean and Clear (C&C) serta sesuai dengan kontrak yang disepakati.

Lalu, tim juga memantau laporan kepatuhan atas Peraturan Menteri ESDM Nomor 11 Tahun 2020 yang disampaikan secara triwulanan oleh pelaku usaha pertambangan dan pelaku usaha peng-olahan dan pemurnian. Tim pengawas ini diketuai oleh Deputi Bidang Koordinasi Investasi dan Pertambangan Kemenko Maritim.

Seperti diketahui, Menteri ESDM telah menerbitkan Peraturan Menteri ESDM No. 11 tahun 2020 tentang Perubahan Ketiga atas Peraturan Menteri ESDM No.07 tahun 2017 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batu bara yang diundangkan pada 14 April 2020.

Regulasi ini menyebutkan bahwa HPM logam merupakan harga batas bawah dalam penghitungan kewajiban pemba-yaran iuran produksi oleh pemegang IUP Operasi Produksi dan IUPK Operasi Produksi. HPM logam ini juga menjadi acuan harga penjualan bagi pemegang IUP dan IUPK untuk penjualan bijih nikel.

Namun apabila harga transaksi lebih rendah dari HPM logam tersebut, maka penjualan dapat dilakukan di bawah HPM dengan selisih paling tinggi 3% dari HPM tersebut. Namun apabila harga transaksi lebih tinggi dari HPM, maka penjualan wajib megikuti harga transaksi di atas HPM logam tersebut.

Peraturan ini berlaku 30 hari sejak di-undangkannya. Artinya, mulai berlaku efektif sejak 14 Mei 2020.

IMA-Daily Update Page 12

Previously, the Director of Mineral Development and Business of the Ministry

of EMR, Yunus Saefulhak, said that the HPM that was set was below the inter-

national market price with the aim of developing investment in the smelter

sector in the country. However, it does not mean that the price is too low because it is

to protect the business continuity and profitability of the miners.

"Yes, US$ 30-32 per tonne is fair enough

because we pay attention to the management of good mining practice," he

said at the EMR Ministry Office, Friday (07/08/2020).

This means, he continued, all aspects are

considered starting from the environment, conservation and technical aspects.

"Good conservation, good work safety requires costs, good mining methods

require money, therefore HPM is prepared on the basis of cost plus margin require-

ments," he said. (wia)

Sebelumnya, Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengatakan HPM yang ditetapkan berada di bawah harga pasar internasional dengan tujuan untuk mengembangkan investasi di bidang smelter di dalam negeri. Namun tidak juga berarti harga terlalu rendah karena untuk melindungi keberlanjutan usaha dan profitabilitas penambang.

"Ya US$ 30-32 per ton itu sudah cukup adil karena sudah memperhatikan yang nama-nya pengelolaan good mining practice," tuturnya di Kantor Kementerian ESDM, Jumat, (07/08/2020).

Artinya, lanjutnya, semua aspek diper-hatikan mulai dari lingkungan, konservasi, dan aspek teknis.

"Konservasi yang baik keselamatan kerja yang baik kan membutuhkan cost, cara menambang yang baik itu butuh biaya, oleh karena itu HPM disusun atas dasar kebutuhan biaya plus margin," tuturnya. (wia)

Freeport Becomes Petrosea (PTRO) Biggest Revenue

Contributor Finna U. Ulfah

PT FREEPORT Indonesia (PTFI) is a

contributor to PT Petrosea Tbk's revenue. in the last few years.

Based on the financial reports per March 2020, PTFI contributed to PTRO's revenue

of US$ 35.69 million, an increase from the previous US$ 24.15 million in the first

quarter of 2019.

Freeport Jadi Penyumbang Pendapatan Terbesar Petrosea

(PTRO) Finna U. Ulfah

PT FREEPORT Indonesia (PTFI) menjadi

penyumbang pendapatan PT Petrosea Tbk. dalam beberapa tahun terakhir.

Berdasarkan laporan keuangan per Maret 2020, PTFI menyumbang pendapatan

PTRO sebesar US$35,69 juta, meningkat dari sebelumnya US$24,15 juta pada

kuartal I/2019.

IMA-Daily Update Page 13

In the first quarter of 2020, the Indika Group entity's revenue decreased by 10.06 percent to only US$ 103.57 million compared to the acquisition in the same period last year of US$ 115.15 million.

However, PTRO managed to generate a profit attributable to the owners of the parent entity of US$ 4.21 million, higher than the net profit in the first quarter of 2019 of US$ 3.09 million.

Previously, in 2019 PTFI contributed PTRO revenue of US$ 105.19 million, up from US$ 101.15 million in 2018. Revenue from PTFI also increased from 2017 of US$ 109.04 million.

Hanifa Indradjaya, President Director of Petrosea, said in detail, the mining contract business line was the company's main contributor, or contributed around 58.16 percent of the company's total revenue in the first quarter of 2020.

The line contribution reached US$ 60.24 million which was driven by overburden stripping and coal production activities carried out for several clients.

Meanwhile, the mining contract revenue decreased by 4.85 percent compared to the acquisition in the first quarter of 2019.

Then, another contribution was obtained from the engineering and construction business line of US$ 23.25 million or 22.45 percent of the company's total revenue, which was driven by several projects for PT Freeport Indonesia.

"All of the achievements in the first quarter were the result of the implementation of the Company's strategic initiatives to transform its operational activities through digitalization and operational excellence which continue to be improved in all business lines and support functions," said Hanifa.

Pada kuartal I/2020, pendapatan entitas Grup Indika itu menurun 10,06 persen menjadi hanya sebesar US$103,57 juta dibandingkan dengan perolehan periode yang sama tahun lalu sebesar US$115,15 juta.

Namun, PTRO berhasil mencetak laba yang dapat diatribusikan kepada pemilik entitas induk sebesar US$4,21 juta, lebih tinggi daripada perolehan laba bersih kuartal I/2019 sebesar US$3,09 juta.

Sebelumnya, pada 2019 PTFI menyumbang pendapatan PTRO sebesar US$105,19 juta, naik dari US$101,15 juta pada 2018. Pendapatan dari PTFI itu juga meningkat dari 2017 sebesar US$109,04 juta.

Hanifa Indradjaya, Presiden Direktur Petrosea, mengatakan secara detail, lini bisnis kontrak pertambangan menjadi kontributor utama perseroan atau menyumbang sekitar 58,16 persen terhadap total pendapatan perusahaan pada kuartal I/2020.

Kontribusi lini itu mencapai US$60,24 juta yang didorong oleh aktivitas pengupasan lapisan tanah penutup dan produksi batu-bara yang dilakukan untuk beberapa klien.

Adapun, pendapatan kontrak pertambangan itu turun sebesar 4,85 persen dibandingkan dengan perolehan kuartal I/2019.

Kemudian, kontribusi lainnya didapatkan dari lini bisnis rekayasa dan konstruksi sebesar US$23,25 juta atau 22,45 persen terhadap total pendapatan perusahaan, yang didorong oleh beberapa proyek untuk PT Freeport Indonesia.

“Seluruh pencapaian pada kuartal pertama ini merupakan hasil dari implementasi inisiatif strategis Perusahaan untuk melaku-kan transformasi kegiatan operasionalnya melalui digitalisasi serta operational excellence yang terus ditingkatkan di dalam seluruh lini bisnis dan fungsi pendukung,” ujar Hanifa.

IMA-Daily Update Page 14

Meanwhile, the performance of PTRO shares still increased by 15.58 percent throughout 2020 to the level of Rp1,855 on Thursday (3/9/2020). The market capitalization is Rp1.87 trillion with a price to earnings ratio (PER) of 6.79 times.

The shareholder of PTRO is PT Indika Energy Tbk. (INDY) 69.8 percent, Lo Kheng Hong 14.97 percent, and the public 15.23 percent.

Petrosea's collaboration with PTFI has also earned praise from one of its shareholders, namely Lo Kheng Hong, a regional investor who is often referred to as Warren Buffett Indonesia.

"It's great, yes, Petrosea received a fee of US$ 200 million from Freeport, and US$ 200 million from PT Indonesia Pratama, a subsidiary of Bayan Resources, in 2 years," he said in one of the stock investor groups, referring to the 2019 financial report.

Meanwhile, PT Bayan Resources Tbk. (BYAN) is a coal mining company owned by conglomerate Dato Low Tuck Kwong. Its market capitalization reached Rp 42.17 trillion, the largest among other mining issuers. Editor: Hafiyyan

Sementara itu, kinerja saham PTRO masih meningkat 15,58 persen sepanjang 2020 ke level Rp1.855 pada Kamis (3/9/2020). Kapitalisasi pasarnya Rp1,87 triliun dengan price to earning ratio (PER) 6,79 kali.

Pemegang saham PTRO adalah PT Indika Energy Tbk. (INDY) sebesar 69,8 persen, Lo Kheng Hong 14,97 persen, dan masya-rakat 15,23 persen.

Kerja sama Petrosea dengan PTFI pun menuai pujian dari salah satu pemegang sahamnya, yakni Lo Kheng Hong, investor kawasan yang kerap disebut sebagai Warren Buffett Indonesia.

"Hebat juga ya Petrosea dapat fee US$200 juta dari Freeport, dan US$200 juta dari PT Indonesia Pratama, anak usaha Bayan Resources, dalam 2 tahun," ujarnya di salah satu grup investor saham, mengacu ke laporan keuangan 2019.

Adapun, PT Bayan Resources Tbk. (BYAN) merupakan perusahaan tambang batu bara milik konglomerat Dato Low Tuck Kwong. Kapitalisasi pasarnya mencapai Rp42,17 triliun, terbesar di antara emiten pertam-bangan lainnya. Editor : Hafiyyan

Delta Dunia Makmur (DOID) coal

production fell in July 2020, this is the reason

Reporter: Akhmad Suryahadi | Editor: Noverius Laoli

PT DELTA Dunia Makmur Tbk (DOID) through its subsidiary PT Bukit Makmur Mandiri Utama (BUMA) recorded a volume of overburden (OB) removal of 22.6 million bank cubic meters (bcm) in the July 2020 period.

Produksi batubara Delta Dunia

Makmur (DOID) turun di Juli 2020, ini penyebabnya

Reporter: Akhmad Suryahadi | Editor: Noverius Laoli

PT DELTA Dunia Makmur Tbk (DOID) melalui anak usahanya PT Bukit Makmur Mandiri Utama (BUMA) mencatatkan volume pemindahan lapisan tanah atau overburden (OB) removal sebesar 22,6 juta bank cubic meter (bcm) pada periode Juli 2020.

IMA-Daily Update Page 15

Delta Dunia Makmur's Head of Investor Relations, Regina Korompis, said this

realization was down 45% from the realization in July 2019.

Meanwhile, DOID's coal production in July

2020 amounted to 4.3 million tons, or decreased by 11% year-on-year (YoY).

This is due to the prolonged weakening of the coal market which encourages DOID

customers to produce at a slower rate.

"Rainfall has begun to increase and is twice

as high as the July 2019 period," said Regina, Thursday (3/9).

Currently, this coal mining contractor issuer continues to pursue a new contract

for the OB seam removal project. However, until now no contract has been finalized.

However, Regina said that recently DOID had an infrastructure project with the

Bayan group.

As of semester I-2020, DOID pocketed revenues of US$ 352.09 million, down

19.58% on an annual basis. A total of US$ 173.67 million or 49% of total DOID

revenue came from PT Berau Coal, followed by revenues from PT Adaro

Indonesia amounting to US$ 41.44 million (12%), and PT Kideco Jaya Agung worth

US$ 28.75 million. or 8% of DOID's total revenue.

Meanwhile, DOID posted a loss of US$ 7.86 million, which is inversely proportional to

the achievement in the first half of 2020 where the coal contractor issuer is still

getting a net profit of US$ 4.06 million.

Going forward, DOID will still focus on

efficiency, which is the key to improving performance amid the slump in coal prices.

At the close of trading today, DOID closed at Rp 282 per share after losing 2.76%.

Head of Investor Relations Delta Dunia Makmur, Regina Korompis, mengatakan, realisasi ini turun 45% dari realisasi Juli 2019.

Sementara itu, produksi batubara DOID pada Juli 2020 sebesar 4,3 juta ton, atau meng-alami penurunan 11% secara year-on-year (YoY). Hal ini dikarenakan pasar batubara yang melemah berkepanjangan sehingga mendorong pelanggan DOID untuk ber-produksi di level yang lebih lambat.

“Curah hujan mulai meningkat dan dua kali lebih tinggi dari periode Juli 2019,” ujar Regina, Kamis (3/9).

Saat ini, emiten kontraktor pertambangan batubara ini terus mengejar kontrak anyar untuk proyek pemindahan lapisan OB. Tetapi, hingga saat ini belum ada kontrak yang difinalisasikan. Namun, Regina menga-takan baru-baru ini DOID mendapatkan proyek infrastruktur dengan Bayan group.

Per semester I-2020, DOID mengantongi pendapatan sebesar US$ 352,09 juta, turun 19,58% secara tahunan. Sebanyak US$ 173,67 juta atau 49% dari total pendapatan DOID berasal dari PT Berau Coal, disusul pendapatan dari PT Adaro Indonesia sebesar US$ 41,44 juta (12%), dan PT Kideco Jaya Agung senilai US$ 28,75 juta atau 8% dari total pendapatan DOID.

Sementara itu, DOID membukukan kerugian senilai US$ 7,86 juta, berbanding terbalik dari capaian pada semester I-2020 dimana emiten kontraktor batubara ini masih mendulang laba bersih senilai US$ 4,06 juta.

Ke depan, DOID masih akan berfokus pada efisiensi, yang merupakan kunci untuk meningkatkan kinerja di tengah keme-rosotan harga batubara. Pada penutupan perdagangan hari ini, DOID ditutup pada level Rp 282 per saham setelah melemah 2,76%.

IMA-Daily Update Page 16

Legitimate! Wexler Capital Owns 21% of Bakrie Group's

Gold Mining Shares Tahir Saleh, CNBC Indonesia

IT IS officially an investment company

based in Singapore, Wexler Capital Pte.

Ltd., controls 14.79 billion (20.82%) shares of PT Bumi Resources Minerals Tbk

(BRMS). The total share of Wexler's shares in BRMS increased by 8.79 billion from the

previous 6.10 billion (9.79%).

Based on data from Ficomindo Buana

Registrar, as a securities administration bureau, in the information disclosure

report to the Indonesia Stock Exchange (IDX), quoted on Friday (4/9/2020), the

change in Wexler's ownership occurred as of July 10, 2020 when the issuance of new

shares without the right to subscribe pre-emptive securities (Non -HMETD) or

private placement of BRMS and debt conversion.

As a comparison, in early July 2020, BRMS

shareholders were PT Bumi Resources Tbk (BUMI) at 10.83%, PT Biofuel Indo

Sumatra 10.71%, Wexler at 9.79%, CS AGSING-FFCL (Longhaul) -Client Account-

2023334080 22.87%, and Fountain City Investment Ltd with 8.02%. Meanwhile,

the remaining 37.78% shares are held by other investors, including the public.

As for the first quarter of 2020, BUMI,

which entered the Bakrie Group company, still controlled BRMS shares of 35.73% for

series A shares, and public investors also 5.30% for Series A shares.

Sah! Wexler Capital Kuasai 21% Saham Tambang Emas

Grup Bakrie Tahir Saleh, CNBC Indonesia

RESMI sudah perusahaan investasi yang

berbasis di Singapura, Wexler Capital Pte. Ltd., menguasai 14,79 miliar (20,82%) saham PT Bumi Resources Minerals Tbk (BRMS). Jumlah porsi saham Wexler di BRMS bertambah sebanyak 8,79 miliar dari sebelumnya hanya sebesar 6,10 miliar (9,79%).

Berdasarkan data Ficomindo Buana Registrar, sebagai biro administrasi efek, dalam laporan keterbukaan informasi ke Bursa Efek Indonesia (BEI), dikutip Jumat (4/9/2020), perubahan kepemilikan Wexler itu terjadi per 10 Juli 2020 saat selesainya penerbitan saham baru tanpa hak memesan efek terlebih dahulu (Non-HMETD) atau private placement BRMS dan konversi utang.

Sebagai perbandingan, pada awal Juli 2020, pemegang saham BRMS adalah PT Bumi Resources Tbk (BUMI) sebesar 10,83%, PT Biofuel Indo Sumatra 10,71%, Wexler sebesar 9,79%, CS AGSING-FFCL (Longhaul)-Client Account-2023334080 22,87%, dan Fountain City Investment Ltd sebesar 8,02%. Sementara sisa saham 37,78% dipegang investor lainnya ter-masuk publik.

Adapun di kuartal I-2020, BUMI yang masuk perusahaan Grup Bakrie masih menguasai saham BRMS sebesar 35,73% untuk saham seri A, dan investor publik 5,30% juga untuk saham Seri A.

IMA-Daily Update Page 17

Meanwhile, the BRMS Series B shares are held by Fountain City Investment Ltd with 8.02 percent, Wexler 9.79 percent, Biofuel Indo 11.27 percent, 1st Financial Company Limited with 22.86 percent, and the public with 7.03 percent.

The addition of Wexler's shares was actually carried out through a corporate action to increase capital without pre-emptive rights (Non-HMETD) or private placement, including compensation for Wexler's debt to BRMS shares.

This action was approved by the share-holders at the Extraordinary General Meeting of Shareholders (EGMS) of BRSM on June 24, 2020. The EGMS approved the increase in Non-Preemptive Rights capital, including the conversion of the company's debt to Wexler of US$ 52,482,947 into company shares. with an exercise price of Rp 84/share.

The debt value is equivalent to Rp 761 billion (assuming an exchange rate of Rp 14,500/ US$).

In connection with this conversion plan, the EGMS approved the issuance of 8,685,302,932 new series B shares with a nominal value of Rp 50 which will be subscribed by Wexler. The schedule for implementing a private placement and listing of additional shares on the Indonesia Stock Exchange (IDX) has been carried out on July 10, 2020.

"With the amount of new shares of 8,685,302,932 and an exercise price of Rp 84/share, the nominal order is Rp. 729.57 billion," said Muhammad Sulthon, Director and Corporate Secretary, in an information disclosure on the IDX.

The origin of Wexler's debt conversion stems from an agreement between Credit Suisse AG, BRMS, and Wexler, where on 28 October 2016, Credit Suisse AG, BRMS, and Wexler agreed to transfer BRMS 'loan from Credit Suisse AG to Wexler amounting to US$ 100,961,331.

Sementara saham Seri B BRMS dipegang Fountain City Investment Ltd 8,02%, Wexler

9,79%, Biofuel Indo 11,27%, 1st Financial Company Limited 22,86%, dan publik 7,03%.

Penambahan saham Wexler ini sebetulnya

dilakukan lewat aksi korporasi penambahan modal tanpa hak memesan efek terlebih

dahulu (Non-HMETD) atau private placement, termasuk kompensasi utang

Wexler menjadi saham BRMS.

Aksi ini sudah disetujui oleh para pemegang saham dalam Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) BRSM pada 24 Juni 2020. RUPSLB menyetujui, jumlah penam-bahan modal Non-HMETD, termasuk pelak-sanaan konversi utang perseroan terhadap Wexler sebesar US$ 52.482.947 menjadi saham perseroan dengan harga pelaksanaan Rp 84/saham.

Nilai utang tersebut setara dengan Rp 761 miliar (asumsi kurs Rp 14.500/US$).

Dalam kaitannya dengan rencana konversi ini, maka RUPSLB menyetujui penerbitan sebanyak 8.685.302.932 saham baru seri B dengan nilai nominal Rp 50 yang akan di-ambil bagian oleh Wexler. Jadwal pelak-sanaan private placement dan pencatatan saham tambahan di Bursa Efek Indonesia (BEI) sudah dilakukan pada 10 Juli 2020.

"Dengan besaran saham baru 8.685.302.932 dan harga pelaksanaan Rp 84/saham, nominal pemesanan mencapai Rp 729,57 miliar," kata Muhammad Sulthon, Direktur dan Sekretaris Perusahaan, dalam keter-bukaan informasi di BEI.

Awal mula konversi utang Wexler berawal dari perjanjian antara Credit Suisse AG, BRMS, dan Wexler, di mana pada 28 Oktober 2016, Credit Suisse AG, BRMS, dan Wexler sepakat untuk mengalihkan pinjaman BRMS dari Credit Suisse AG kepada Wexler sebesar US$ 100.961.331.

IMA-Daily Update Page 18

The transfer is effective December 2, 2016 with a period of 2 years from the effective date, and the agreed interest rate is 10% per annum.

However, because BRMS was deemed not to fulfill one of the conditions in the agreement, Wexler filed a lawsuit at the South Jakarta District Court, as stated in the March 2020 financial report.

On March 29, 2017, the South Jakarta District Court decided that the parties should make a peace agreement which, among other things, stated that the amount of BRMS 'loan to Wexler as of the signing of the peace agreement was US$ 154,956,698 and this loan would be partially completed by BRMS by converting the loan into stock.

As a follow-up to the agreement, BRMS booked a financial cost of US$ 53,995,367 and announced plans to issue Series B shares which will be used by BRMS to complete the loan to Wexler on April 21, 2017.

This plan was then approved by shareholders through the GMS which was held on May 30, 2017.

In order to realize the peace agreement that was approved by the GMS, BRMS and Wexler agreed to first convert a portion of the loan amounting to US$ 100,961,331 to 15,985,544,075 Series B shares. This agreement was stated in notarial deed No. 85 dated 15 June 2017.

Therefore, the balance of Wexler's loan facility as of March 31, 2020 and December 31, 2019 amounted to US$ 53,995,367, respectively.

In the first quarter of 2020, BRMS managed to record a net profit of US$ 165,057 or equivalent to Rp 2.43 billion (assuming an exchange rate of Rp 14,700/US$) in the first quarter of 2020, up 90% from the same period last year of US$ 86,650.

Pengalihan itu berlaku efektif tanggal 2 Desember 2016 dengan jangka waktu 2 tahun dari tanggal efektifnya, dan tingkat bunga yang disepakati adalah 10% per tahun.

Namun lantaran BRMS dianggap tidak meme-nuhi salah satu persyaratan dalam perjanjian, Wexler mengajukan gugatan ke Pengadilan Negeri Jakarta Selatan, sebagaimana disebutkan dalam laporan keuangan Maret 2020.

Pada 29 Maret 2017, PN Jakarta Selatan memutuskan agar para pihak membuat suatu perjanjian perdamaian yang antara lain berisi bahwa jumlah pinjaman BRMS kepada Wexler terhitung sejak ditandatanganinya perjanjian perdamaian adalah menjadi sebesar US$ 154.956.698 dan pinjaman tersebut sebagian akan diselesaikan BRMS dengan mengonversi pinjaman menjadi saham.

Sebagai tindak lanjut dari kesepakatan itu, maka BRMS membukukan biaya keuangan sejumlah US$ 53.995.367 dan mengumumkan rencana untuk melakukan penerbitan saham Seri B yang akan digunakan oleh BRMS untuk menyelesaikan pinjaman kepada Wexler pada 21 April 2017.

Rencana ini kemudian disetujui oleh peme-gang saham melalui RUPS yang dilaksanakan pada 30 Mei 2017.

Untuk merealisasikan perjanjian perdamaian yang telah mendapatkan persetujuan dari RUPS, BRMS dan Wexler sepakat untuk terlebih dahulu mengonversi sebagian jumlah pinjaman sebesar US$ 100.961.331 jadi 15.985.544.075 saham Seri B. Kesepakatan ini dituangkan dalam akta notaris No. 85 tanggal 15 Juni 2017.

Dengan demikian, saldo fasilitas pinjaman Wexler pada 31 Maret 2020 dan 31 Desember 2019 masing-masing sebesar US$ 53.995.367.

Di kuartal I-2020, BRMS berhasil mencatat-kan laba bersih US$ 165.057 atau setara dengan Rp 2,43 miliar (asumsi kurs Rp 14.700/US$) pada kuartal I-2020, melesat 90% dari periode yang sama tahun lalu US$ 86.650.

IMA-Daily Update Page 19

Based on the financial statements of BRMS, this net profit was booked amid a decline in the company's revenue to US$ 991,860 or Rp 14.58 billion, down 21 percent from the same period last year of US$ 1.26 million or Rp 18.53 billion.

This income represents mining advisory services provided by BRSM to Bellridge Holdings Limited (Bellridge) for the 3 month period ended March 31, 2020 and 2019 amounting to US$ 892,000 and US$ 1,260,530, respectively.

Revenue was also contributed by the sale of ore inventories in stockpiles owned by PT Citra Palu Minerals (CPM), a Subsidiary, for the 3 months period ended March 31, 2020 amounting to US$ 99,860.

In IDX trading last Thursday (3/9/2020), BRMS shares were minus 5.45% at the level of Rp 52/share with a market capitalization of Rp 3.69 trillion. (tas/tas)

Berdasarkan laporan keuangan BRMS, laba bersih ini dibukukan di tengah penurunan pendapatan perusahaan menjadi US$ 991.860 atau Rp 14,58 miliar turun 21% dari periode yang sama tahun lalu US$ 1,26 juta atau Rp 18,53 miliar.

Pendapatan ini merupakan jasa penasehat pertambangan yang diberikan oleh BRSM terhadap Bellridge Holdings Limited (Bellridge) untuk periode 3 bulan yang berakhir pada 31 Maret 2020 dan 2019 masing-masing sebesar US$ 892.000 dan US$1.260.530.

Pendapatan juga disumbang hasil dari penjualan persediaan bijih di stockpiles milik PT Citra Palu Minerals (CPM), entitas Anak, untuk periode 3 bulan yang berakhir pada 31 Maret 2020 sebesar US$ 99.860.

Pada perdagangan BEI Kamis kemarin (3/9/2020), saham BRMS minus 5,45% di level Rp 52/saham dengan kapitalisasi pasar Rp 3,69 triliun. (tas/tas)

Until June, Darma Henwa (DEWA) OB Volume Grows 33.8

Percent Finna U. Ulfah

THE OPERATIONAL performance of the

mining contractor issuer, PT Darma Henwa Tbk., Until June 2020 managed to record growth even though it was still over-shadowed by the sentiment of the Covid-19 pandemic.

Based on company data, the volume of overburden removal (OB) of the issuer coded as DEWA shares during the first semester of 2020 reached 61.35 million bcm, growing 33.86 percent compared to the same period last year.

Hingga Juni, Volume OB Darma Henwa (DEWA) Tumbuh 33,8

Persen Finna U. Ulfah

KINERJA operasional emiten kontraktor

pertambangan, PT Darma Henwa Tbk., hingga Juni 2020 berhasil mencatatkan pertumbuhan meskipun masih dibayangi sentimen pandemi Covid-19.

Berdasarkan data perseroan, volume pengupasan lapisan tanah (Overburden Removal/OB) emiten berkode saham DEWA itu sepanjang semester I/2020 mencapai 61,35 juta bcm, tumbuh 33,86 persen dibandingkan dengan periode yang sama tahun lalu.

IMA-Daily Update Page 20

Meanwhile, DEWA also recorded a performance growth of coal shipments of 9.11 million tons, 27.96 percent higher than the realization in the same period last year.

Director of Darma Henwa Agus Efendi said that his party is confident that the company's performance will continue to grow. He also explained that the company is ready to face challenges as well as opportunities in line with the challenging development of the coal and mineral industry.

"The company implements a mix of strategies including operational excellence, cash cost reduction, HR competence and teamwork, and continuous improvement initiatives," said Agus, as quoted from his official statement, Thursday (3/9/2020). Editor: Hafiyyan

Sementara itu, DEWA juga mencatatkan pertumbuhan kinerja pengiriman batu bara menjadi sebesar 9,11 juta ton, lebih tinggi 27,96 persen dibandingkan dengan realisasi periode yang sama tahun lalu.

Direktur Darma Henwa Agus Efendi mengatakan bahwa pihaknya yakin kinerja perseroan akan semakin bertumbuh. Dia pun menjelaskan bahwa perseroan siap menghadapi tantangan sekaligus peluang seiring perkembangan industri batubara dan mineral yang cukup menantang.

“Perseroan menerapkan bauran strategi meliputi keunggulan operasional (operational excellence), penghematan biaya (cash cost reduction), kompetensi SDM dan kerjasama tim, dan prakarsa per-baikan berkelanjutan (continous improve-ment),” ujar Agus seperti dikutip dari keterangan resminya, Kamis (3/9/2020). Editor : Hafiyyan

Faisal Basri Accuses Nickel Downstreaming Benefits Chinese

Investors

SENIOR economist Faisal Basri assessed

that the downstream mining policy for nickel is beneficial for Chinese smelter companies investing in Indonesia. The profit occurred because the policy caused the domestic nickel ore price to drop.

However, after being processed by the smelter and exported the value has

doubled. This is what makes Chinese companies flock to build smelters in

Indonesia rather than in their home countries.

Faisal Basri Tuding Hilirisasi Nikel Untungkan Investor China

EKONOM senior Faisal Basri menilai

kebijakan hilirisasi pertambangan untuk

komoditas nikel menguntungkan per-usahaan smelter asal China yang ber-

investasi di Indonesia. Keuntungan terjadi karena kebijakan itu membuat harga ore

nikel di dalam negeri anjlok.

Tetapi, setelah diolah oleh smelter dan

diekspor nilainya menjadi dua kali lipat. Hal ini lah yang membuat perusahaan asal

China berbondong-bondong membangun smelter di Indonesia ketimbang di negara-

nya.

IMA-Daily Update Page 21

"In the international market, US$ 40 (per ton) in Indonesia is only US$ 20. Due to

export bans, the smelter companies from China moved to Indonesia for 3 years when

they built smelters in Indonesia, they have already broken event points (BEP) and

have made tens of trillions of profits," he said. he said in a virtual discussion held by

Indef, Thursday (3/9).

Unfortunately, in the midst of the huge profits obtained by investors, the added

value of the smelter to the domestic economy is not great. This happens

because the monitoring of compliance and tax regulations in the country is not very

strict.

As a result, the revenues and revenues to the state from the mining industry and

others are still small. He gave an example, in Indonesia local mining companies are

required to pay export duties and royalties, but not for smelter entrepreneurs.

In addition, the jumbo profits that smelter companies get also occur because they are

not subject to various taxes such as VAT (Value Added Tax) and import duties on

capital goods such as machinery.

He accused of using a tourist visa instead of a worker's visa, so he was exempt from

individual PPh (Income Tax).

"BKF already knows this but there are other coordinating ministers. We know

this is under the Coordinating Minister for Maritime Affairs and Investment. This is

what we have to guarantee so that our tax reform can get tens of trillions of fresh

funds only from nickel," he said. (hrf/agt)

"Di pasar internasional US$40 (per ton) di Indonesia cuma US$20. Karena dilarang

ekspor maka perusahaan-perusahaan smelter dari China itu pindah ke Indonesia

3 tahun mereka bangun smelter di Indonesia sudah break event point (BEP)

dan untung puluhan triliun," ujarnya dalam diskusi virtual yang digelar Indef, Kamis

(3/9).

Sayangnya di tengah keuntungan besar yang didapat investor itu, nilai tambah

smelter bagi ekonomi dalam negeri belum besar. Hal itu terjadi karena pengawasan

kepatuhan dan aturan pajak di dalam negeri belum begitu ketat.

Alhasil pemasukan dan penerimaan ke

negara dari industri tambang dan lainnya masih kecil. Ia mencontohkan, di Indonesia

perusahaan tambang lokal diwajibkan membayar bea ekspor dan royalti, tetapi

tidak untuk pengusaha smelter.

Di samping itu laba jumbo yang didapat

perusahaan smelter juga terjadi karena mereka tak dikenakan berbagai pajak

seperti PPN (Pajak Pertambahan Nilai) serta bea masuk barang modal seperti

mesin.

Pekerja yang didatangkan dari China pun ia tuding memakai visa turis bukan visa

pekerja, sehingga terbebaskan dari PPh (Pajak Penghasilan) perseorangan.

"BKF sudah tahu ini tapi ada menko yang

lain. Kita tahu ini ada di bawah Menko Maritim dan Investasi. Inilah yang harus

kita jamin hingga reformasi perpajakan kita bisa dapat puluhan triliun dana segar

hanya dari nikel," tuturnya. (hrf/agt)

IMA-Daily Update Page 22

Oops! Add More Negative Sentiment, Coal Prices Drop

Tirta Citradi, CNBC Indonesia

UNSTABLE market fundamentals have

depressed coal prices. The price of this jet stone is indeed volatile. After having shot

up significantly due to technical factors, prices immediately reversed direction due

to weak demand.

In trading on Thursday (3/9/2020), the

price of Newcastle thermal coal for contracts that are actively traded closed

down 1.06% to US$ 51.15/ton. Coal prices have been corrected in the last three days

after touching their highest level since August 11.

Argus Media reports that the Covid-19 pandemic has triggered a drop in the

output of Japan's coal-fired power plant to its lowest level in more than four years in

May.

According to energy ministry data released

this week, Japan's coal-fired power plant output fell 11% this year to 16.8TWh in

May, with coal consumption dropping nearly 10% to 6.5 million tonnes.

Weaker demand brought coal stocks to 9.9 million tonnes at the end of May, up from

9.4 million tonnes in the previous 12 months and the highest since before April

2016.

The impact of Covid-19 on overall

electricity demand weighed heavily on coal consumption, with national output from all

sources falling 10% this year to 56.3TWh in May.

Duh! Tambah Lagi Sentimen Negatif, Harga Batu Bara

Ambles Tirta Citradi, CNBC Indonesia

FUNDAMENTAL pasar yang tak kokoh,

membuat harga batu bara tertekan. Harga batu legam ini memang bergerak volatil. Setelah sempat melesat signifikan akibat faktor teknikal, harga langsung berbalik arah akibat lemahnya permintaan.

Pada perdagangan Kamis (3/9/2020), harga batu bara termal Newcastle untuk kontrak yang aktif ditransaksikan ditutup melemah 1,06% ke US$ 51,15/ton. Harga batu bara telah terkoreksi dalam tiga hari terakhir pasca menyentuh level tertinggi sejak 11 Agustus.

Argus Media melaporkan, pandemi Covid-19 telah memicu anjloknya output pembangkit listrik tenaga batu bara Jepang ke level terendah lebih dari empat tahun pada bulan Mei.

Mengacu pada data kementerian energi yang dirilis minggu ini, output pembangkit listrik tenaga batu bara Jepang turun 11% pada tahun ini menjadi 16,8TWh pada bulan Mei, dengan konsumsi batu bara yang turun hampir 10% menjadi 6,5 juta ton.

Permintaan yang lebih lemah membuat stok batu bara menjadi 9,9 juta ton pada akhir Mei, atau naik dari 9,4 juta ton pada 12 bulan sebelumnya dan tert inggi sejak sebelum April 2016.

Dampak Covid-19 pada permintaan listrik secara keseluruhan sangat membebani konsumsi batu bara, dengan output nasional dari semua sumber turun 10% pada tahun ini menjadi 56,3TWh pada bulan Mei.

IMA-Daily Update Page 23

Japanese coal imports, including

bituminous, sub-bituminous and lignite

coal, decreased by 17.7% or 2.4 million

tonnes for the year in July.

Weaker imports from Japan's biggest

supplier, Australia, drove the decline in

July and this year as a whole, down by 1.4

million tonnes this year in July and by 3.2

million tonnes in January-July.

Imports from Indonesia and Russia

increased by 1 million tonnes and 750,000

tonnes, respectively, in January-July as

buyers attempted to diversify their supply

mix, but revenues from both countries fell

during the year in July, citing Argus Media.

Impor batu bara Jepang, termasuk batu bara bituminus, sub-bituminus dan lignit, turun sebesar 17,7% atau 2,4 juta ton pada tahun tersebut di bulan Juli.

Impor yang lebih lemah dari pemasok terbesar Jepang, yakni Australia, telah men-dorong penurunan pada bulan Juli dan tahun ini secara keseluruhan, turun sebesar 1,4 juta ton pada tahun ini di bulan Juli dan sebesar 3,2 juta ton pada bulan Januari-Juli.

Impor dari Indonesia dan Rusia naik masing-masing sebesar 1 juta ton dan 750.000 ton, pada tahun Januari-Juli karena pembeli telah berupaya untuk mendiversifikasi bauran pasokan mereka, tetapi penerimaan dari kedua negara turun pada tahun tersebut di bulan Juli, mengutip Argus Media.

Still from Asia, the steps of the second

largest coal consumer in the world after China, namely India, have also begun to

take steps to tighten imports of seaborne coal.

Argus Media reported that India is

considering setting up a coal import monitoring system as it intensifies efforts

to prevent consumers from buying cargo by sea.

Masih dari Asia, langkah konsumen batu bara terbesar kedua di dunia setelah China yakni India juga mulai melakukan langkah pengetatan impor batu bara lintas lautnya (seaborne).

Argus Media melaporkan, India sedang mempertimbangkan untuk menyiapkan sistem pemantauan impor batu bara karena mengintensifkan upaya untuk mencegah konsumen membeli kargo lewat laut.

IMA-Daily Update Page 24

Of course, the weak demand for coal, especially from the biggest consuming countries, has made prices even more depressed. Seeing this reality, it is possible that the futures contract price will return to US$ 50/ton. RESEARCH TEAM CNBC INDONESIA (twg/twg)

Tentu saja lemahnya permintaan batu bara terutama dari negara-negara konsumen terbesarnya ini membuat harga semakin tertekan. Melihat realita ini, tak menutup kemungkinan harga kontrak futures-nya akan kembali ke US$ 50/ton. TIM RISET CNBC INDONESIA (twg/twg)

Copper heads for historic squeeze with China’s demand red hot Bloomberg News

THE GLOBAL copper market could be on the cusp of a historic supply squeeze as Chinese

demand runs red hot and exchange inventories plunge to their lowest levels in more than a decade.

A growing chorus of traders and analysts say those dwindling spot reserves could trigger a further surge in prices, building on a rally that lifted copper this week to two-year highs above $6,800 a ton. Red Kite Capital Management LLP fund manager George Daniel said the market is starting to resemble that of the early 2000s, when a similar Chinese buying spree emptied the world’s warehouses of copper and sent prices vaulting to record highs.

The 24 million ton-per-year copper market has experienced bouts of tightness ever since the early days of China’s industrial expansion, but that country’s rampant appetite after emerging from coronavirus lockdown could usher in a period of chronic undersupply. China’s Caixin manufacturing purchasing managers’ index for August reached its highest reading since January 2011, with copper usage surging as factories pump out cars, household appliances, smartphones and electrical cables.

“This time it’s been different because China has been sucking everything up,” Daniel said in London. “It feels like we’re getting into a period where there’s just no copper around.”

Current conditions could push prices to $7,500 a ton, he said. Citigroup analysts are even more bullish, advising clients this week that a price of $8,000 is plausible if global stockpiles

drop to near the levels seen in 2011, when copper reached a record $10,190 a ton. Copper declined 0.8% to $6,643 a ton on Thursday.

IMA-Daily Update Page 25

Evidence of a looming supply squeeze is mounting on the London Metal Exchange, where inventories are at their lowest levels in almost 15 years — only enough to last users a little more than a day. A year ago, they would have lasted five.

In the past, copper stored elsewhere in the global supply chain was diverted to the exchange’s storage depots. But now there are signs the metal may not flow back to the bourse so freely, given the strength of Chinese demand.

LME data shows there were about 120,000 tons of copper stored privately in Europe at the end of June, but none has materialized on the exchange, even with the region’s lackluster economic recovery. At the same time, the LME’s Asian depots are virtually empty. There are about 80,000 tons in Comex depots in the U.S., but manufacturing in the world’s top economy also is starting to snap back strongly.

Consumers and traders may be more reluctant to offload excess inventories out of fear that a fresh wave of coronavirus infections could reimpose havoc on supply chains. The desire to bolster reserves of raw materials was one factor driving the rapid rebound in orders as China emerged from lockdown, Trafigura, the world’s top copper trader, said in June.

With investment in copper-intensive sectors such as renewable energy and electric vehicles set to swell as countries start rebuilding their economies, manufacturers in previously weak markets like Europe also may look to boost their inventories, thus creating an additional pull on spot supplies.

Some traders and investors are still skeptical that plunging inventories on the LME reflect broader supply-and-demand conditions. But that may change as evidence points to consumers stocking up.

“We have lost some of the absolute perma-bears during this rally,” Luke Sadrian, chief investment officer at Commodities World Capital, said by phone. “You have to at least move to the center point.”

Still, rising production may relieve some of the strain. There are signs scrap dealers are offloading inventories to cash in on higher prices, and smelters in China are producing at an elevated rate, even as constrained supplies wilt processing margins. Mine production in South America also is starting to recover.

Copper and other exchange-traded commodities also have a built-in relief valve whenever inventories run low. Increased demand quickly drives up the value of spot contracts relative to futures, encouraging stockholders to sell excess inventories. That incentive to deliver has risen fast, with spot contracts last week trading at the biggest premium to benchmark futures in almost 18 months — a phenomenon known as backwardation.

While specialist commodities funds are turning bullish on copper’s tight fundamentals, long-term macro investors are starting to take a more favorable view of the metal as an asset that should hold up against a falling dollar and rising inflation, providing a further tailwind for prices, Daniel said.

“Everything is working for the copper price at the moment,” he said. (By Mark Burton and Libby Cherry)

IMA-Daily Update Page 26

Mining operations set for revamp NITI Aayog

THE GOVERNMENT wants to overhaul the working of private mine developers and

operators (MDOs) ahead of the first coal mining auctions with private company participation next month and wider plans for a massive increase in coal production.

The Prime Minister’s Office (PMO) has written to NITI Aayog, asking it to consult with industry to create a new legal framework and policy regime for private mine operators.

MDOs play a vital role in the operation of coal mines, but there are two challenges: they are illegal, and they are mostly selected for their ability to do the job at a low cost rather than for bringing in the technical expertise needed to scale up coal mining.

The government’s move comes amid plans by Coal India, the world’s largest coal miner, to produce 1 billion tonnes a year by 2024.

In a letter to the NITI Aayog, the PMO said, “There are differing legal positions, practices and approaches and a lack of consistency and transparency" in how MDOs are currently engaged in mining coal and major minerals.

“The appointment of MDOs before allotment of the mineral block appears inappropriate and this may not be allowed in future," the PMO said. It asked NITI Aayog to frame guidelines for the selection and appointment of MDOs in consultation with secretaries from the Union ministries of mines, coal, steel and finance. Mint has seen a copy of the letter.

In the mining industry, a mine owner often contracts the work of mine development to a third-party MDO, especially in coal. The MDO oversees the whole range of activity, from mine design, planning and construction and rehabilitation of local populations to overburden removal, mining and processing and delivery of the mineral.

The MDO contract is awarded mostly on the basis of quoted mining cost per tonne, to the lowest bidder.

So far, coal mine ownership has been restricted to PSUs like Coal India and NTPC or state, who have been the largest employers of MDOs. But with commercial coal mining slated to begin in October, the MDO industry is expected to expand.

However, outsourcing mining activity is illegal under the Contract Labour Act and Mines and Minerals Act. PSUs and state governments have so far escaped a legal tangle with approval from the ministry of coal.

Pankaj Satija, chief - regulatory affairs, Tata Steel, said. “A mine owner uses an MDO in India primarily to cut costs and improve efficiency. This, however, is in contrast to the global practice of appointing MDOs to bring in expertise and drive adoption of technical best practices."

“Many public sector companies like NTPC, Coal India and, of late, NMDC as well as state government PSUs have gone ahead and engaged MDOs in the mines allotted to them without prior approval from the Central Contract Labour Advisory Board," R.K. Sharma, secretary general, Federation of Indian Mineral Industries, told Mint.

IMA-Daily Update Page 27

“One can understand engaging MDOs in the case of NTPC and such PSUs because the lease period for coal mining was for captive use, but in the case of Coal India and NMDC and other standalone mining companies, it is puzzling since they are mining companies. With a view to have synergy in the regulatory framework, it is imperative that there is compatibility in different laws for the engagement of MDOs in the case of coal and major minerals."

Satija recommends clearing the legal inconsistencies and creating a framework that insists on ethical practices and improves safety, while employing the best talent and technology.

With power generation heavily dependent on coal, the need to keep production numbers growing means that MDOs will become significant players in the mineral industry, a senior executive at an MDO said on condition of anonymity.

“Coal India wants to produce 1 billion tonnes every year by 2024. With their own capacities stretched, they need MDOs to produce at least 150-200 million tonnes yearly, that’s why even they are coming out with tenders now to engage MDOs. But these contracts are skewed heavily in favour of state agencies and differ from state to state with MDOs made to absorb many of the risks and penalties and deal with payment delays, making it difficult and expensive for us to get bank financing.

“I think what the PMO also wants to do is create standard contracts on engaging MDOs where it is clear who bears which risk, who is responsible for land acquisition, relief and rehabilitation, etc."

Large MDOs today include BGR Mining and Infra Ltd, Adani Enterprises, Thriveni Earthmovers, Dilip Buildcon, Sainik Mining and Allied Services, Sical Logistics, Monte Carlo and Ambey Mining.

The NDA government is keen to step up India’s coal production. Despite having the world’s fourth largest coal reserves, India imports around 235 million tonnes (mt) of coal a year. The government estimates that of this, at least 135 mt can be substituted by mining more locally. The Centre had set a mining target of 1.5 billion tonnes of coal by 2020, which was missed.

In May, along with opening up commercial coal mining, promoting coal gassification and auctioning 50 new coal and 500 mineral blocks as part of the covid-19 reforms package, the government also promised an investment of Rs50,000 crore to create transportation infrastructure for evacuating 1 billion tonnes of coal from Coal India Ltd’s mines.

Glencore considers future of Mount Isa copper assets Vanessa Zhou

GLENCORE is reviewing the future of its Mount Isa copper smelter and Townsville refinery in

Queensland.

A Glencore spokesperson said that the viability of the copper processing assets were being challenged by significant global competition and high fixed costs in Australia.

IMA-Daily Update Page 28

The company processes and smelts ore from Mount Isa on site before transporting it via rail to the copper refinery in Townsville.

It also transports copper ore from Ernest Henry to Mount Isa for smelting into copper anode.

Glencore is capable of producing 300,000 tonnes of 99.995 per cent pure copper cathode a year at the Townsville refinery, and 99.7 per cent pure copper plates at the Mount Isa smelter.

The spokesperson stated that the bricks lining the smelter were due for replacement in 2022, urging a decision to be made soon.

“We have been transparent about the challenges and discussions are ongoing with both the Queensland and federal governments,” he said.

“We expect to communicate a final decision on the metallurgical assets in the next four weeks.”

The assets are Glencore’s only copper smelter and refinery in Queensland.

Govt revises list, 38 coal blocks to be auctioned for commercial mining: Coal Ministry

THE COAL Ministry on Thursday said it has revised the list of mines to be auctioned for

commercial mining and now 38 blocks would go under the hammer instead of 41 mines announced earlier.

The revision in the list includes addition of three blocks Dolesara, Jarekela and Jharpalam-Tangarghat (in Chhattisgarh) and withdrawal of five blocks -- Morga South, Fatehpur, Madanpur (North), Morga-II and Sayang (in Chhattisgarh).

The coal ministry had earlier withdrawn Bander mine in Chandrapur district of Maharashtra from the list of 41 coal blocks put up for auction for commercial mining as the mine lies in the eco sensitive zone of Tadoba Andhari Tiger Reserve.

"Revisions have been made in the list of coal mines offered for auction... Accordingly, 38 coal mines are offered for auction for commercial mining under 11th tranche of auction under CM(SP) Act, 2015 and 1st Tranche of Auction under MMDR Act, 1957," the coal ministry said in a statement.

However, no reason was provided by the ministry for the revision of the list.

The ministry said that there has been "addition of Dolesara, Jarekela and Jharpalam-Tangarghat Coal Mines to the 1st tranche of auction under the MMDR Act, 1957."

The ministry also said that there has been "withdrawal of Morga South Coal Mine from the 1st Tranche of Auction under the MMDR Act, 1957...(and) Fatehpur East, Madanpur (North), Morga-II, and Sayang Coal Mines from the 11th Tranche of Auction under the CM(SP) Act, 2015."

According to the revised list seven mines in Chhattisgarh will be auctioned.

IMA-Daily Update Page 29

As part of the initiative of opening up of the coal sector and introduction of commercial coal mining in the country, the government launched the auction process for 41 coal mines on June 18, 2020, for commercial mining under 11th tranche of auction under CM(SP) Act, 2015 and first tranche of Auction under Mines and Minerals (Development and Regulation) Act, 1957.

Global Mining Symposium: Elim Mining’s John Antwi on copper fundamentals By: Trish Saywell

MINING executive John Antwi, president and director of privately held Elim Mining, spoke

about the copper market on the final day of The Northern Miner’s Global Mining Symposium. Antwi and his team at Elim Mining are advancing the company’s flagship Cactus copper project in Arizona and plan to make a construction decision in 2022.

The project, which hosts the past-producing Cactus mine – was brought to Antwi’s attention due to his 26-year track record of identifying interesting geological opportunities.

In a wide-ranging interview with The Northern Miner Group’s publisher, Anthony Vaccaro, Antwi talked about his career. After getting a bachelor’s degree in geological engineering in Ghana, Antwi provided geological services to a gold mining company for about thirteen years in West Africa. He then moved to the United States, where he completed a master’s degree in mineral economics at the Colorado School of Mines, before joining Newmont (TSX: NGT; NYSE: NEM).

At Newmont one of his roles was to help the company identify new opportunities, and Antwi was instrumental in its 2011 US$2.3 billion acquisition of Nevada-focused Fronteer Gold and its Long Canyon development project. “I made the case for Long Canyon,” Antwi tells Vaccaro, “and I believe Newmont won’t regret making that acquisition.”

After Newmont, Antwi joined Klondex Mines as senior vice president for corporate development and planning, until its acquisition by Hecla Mining, which was completed in July 2018.

Now his focus is on Elim Mining’s copper projects and he believes the company’s timing will be just right – with copper prices sustainably high due to resilient demand for the metal, the global pandemic, aging copper assets, and looming supply gaps.

The Cactus mine, formerly known as the Sacaton mine, was discovered in the 1960s by American Smelting and Refining Co. (ASARCO), from a mineral outcrop immediately to the northeast of its future open pit operation, which today spans 3,000 feet in diameter and runs 980 metres deep. The mine was in production from 1972 until 1984, but eventually shut down due to poor economic conditions.

Antwi and his team at Elim are confident that they can put the mine back into production and find more resources along the Santa Cruz trend, where it also owns the adjacent Parks/Salyer property.

IMA-Daily Update Page 30

According to Elim, ASARCO conducted exploration that revealed a copper-porphyry system running north-east and southwest from the Cactus mine and over the company’s Parks/Salyer ground.

Antwi told Vaccaro that he expects the copper price will remain strong at current levels of about US$3 per lb. due to a number of factors, which of course include the global pandemic, which has suspended copper mining operations in South America — most notably in Chile and Peru.

“South America contributes about 50% of the global supply of copper and that is very critical because any impact there can have a significant impact on price,” Antwi says. Other factors driving the copper price include a strong economic rebound in China during the second quarter of the year.

Beyond demand in China, Antwi says, is the trend across the global economy towards greener industries and increasing demand for electric vehicles and a move away from traditional sources of energy — all of which will require more copper. “You will see in the short term a lot of economies will be focused on trying to transition from these fossil fuel generated energy sources to other sources,” he says.

Antwi also said he agrees with those like company builder Robert Friedland who believe that copper’s anti-microbial properties will become increasingly important and that surfaces coated in copper in places like hospital settings will eventually replace stainless steel, although he cautioned the industry needs to “get creative” in order to find new and cheaper processing methods to reduce costs.

When asked if he believes higher copper prices are sustainable, he replied with an emphatic “yes”.

While countries like Indonesia are looking to increase their copper production over the next five years, he noted, and there are also potential additional sources of the metal in Africa, there are also many copper mines in South America that are aging out. “It’s a function that they’ve been in operation for so long, and at a certain point it becomes a challenge keeping grades at the level where they started,” he said.

Elim Mining completed its acquisition of the Cactus project in July and started resource development drilling in August. The drill program will evaluate the open pit layback opportunity at Cactus West and the potential for underground or open pit mining at Cactus East. It expects to complete a resource estimate and preliminary economic assessment by the second quarter of 2021.

ASARCO operated a 9,000 tonne per day open pit and sulphide flotation mill on the west deposit over 12 years, processing 38 million tonnes and producing 398 million lb. copper, 1.4 million oz. silver and 30,000 oz. gold. Copper recoveries from the mill came in at about 87%. In addition, ASARCO completed a feasibility study, constructed a vent raise and production shaft and began underground development to access the Cactus East orebody prior to low copper prices forcing the operation to shut down.

Antwi believes that modern heap leaching with solvent extraction-electrowinning metallurgical processing may offer economic advantages by processing oxide and supergene enriched sulphide ore at Cactus compared to ASARCO’s sulphide-only flotation mill-based operations.

IMA-Daily Update Page 31

“They mined copper, moly, gold and silver and they had a flotation processing, and one of the things they missed … is they didn’t consider oxide and leaching so that’s the benefit we get here,” he says.

“I had the right team to come in and do the due diligence, and we had the right support from the board that we put together and started talking to investors and the timing was just right. So it was combination of having the right assets and seeing an opportunity that if you can manage your costs well … these are long-term production profiles … and Arizona as you know, is copper country, so it was all strategic and it all fit together.”