Daily News Update Page 1

TABLE OF CONTENTS

No. Title Media Source Page

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Mining companies maintain the level of corporate funding Perusahaan tambang menjaga tingkatan pendanaan korporasi

Adaro targets 2 million cooking coal production next year Adaro Targetkan 2 Juta Produksi Cooking Coal Tahun Depan

During the third quarter of 2020, Aneka Tambang (ANTM) sold 6,967 kg of gold Sepanjang kuartal III-2020, Aneka Tambang (ANTM) jual 6.967 kg emas Luhut Said Indonesian Coal Exports Will Drop, What Happened? Luhut Ungkap Ekspor Batu Bara RI Bakal Turun, Ada Apa Nih? Morowali Industrial (IMIP) dominates the production of refined nickel in Indonesia Morowali Industrial (IMIP) merajai produksi nikel olahan di Indonesia

Adaro (ADRO) Opens Opportunities for Expansion of the Coal Downstream Business Adaro (ADRO) Buka Peluang Ekspansi Bisnis Hilirisasi Batu Bara

This is the reason the downstreaming of copper is mandatory Ini Alasan Hilirisasi Tembaga Wajib Dilakukan

Adaro (ADRO) subsidiary's PKP2B contract expires in 2022, Boy Thohir is still waiting for PP Minerba Kontrak PKP2B anak usaha Adaro (ADRO) habis 2022, Boy Thohir masih tunggu PP Minerba

Already Ratcheting 11 Percent, This Is The Prospect Of Nickel Price In The Rest Of 2020 Sudah Melesat 11 Persen, Ini Prospek Harga Nikel di Sisa Tahun 2020 News of China Boycott Australia, Coal Prices Reverse Direction Kabar China Boikot Australia, Harga Batu Bara Balik Arah

Kontan

Republika

Kontan CNBC Indonesia Kontan

Bisnis

DetikFinance

Kontan

Bisnis CNBC Indonesia

3

4

7

9

10

14

15

17

19

23

Daily News Update Page 2

11.

12.

13.

14.

15.

16.

17.

18.

5th joint working group meeting on coal between India, Indonesia on Nov 5 Nickel export squeeze could lead to some more upside Copper price surges to 28-month high Global nickel production to decline by 7.4 percent in 2020 Freeport exec elected International Copper Association chair New Century drives up zinc production as prices rise Kinross Gold sees annual 10-year gold production at 2.5 million gold equivalent ounces RANKED: Top 10 lowest cost copper mines

ANI News Kitco News Mining.com Mining Global Mining Weekly Australian Mining Kitco News Mining.com

25

26

26

28

29

29

30

31

Daily News Update Page 3

Mining companies maintain the level of corporate funding Reporter: Filemon Agung | Editor:

Handoyo

A NUMBER of coal mining companies have

ensured that funding for operations during

the year is at a maintained level.

Previously, a Bank Indonesia (BI) survey

concluded that corporate financing needs

in September 2020 increased compared to

the previous month (August 2020).

Corporate Secretary of PT Bukit Asam Tbk

(PTBA) Apollonius Andwie revealed that

PTBA's net cash as of June 30, 2020 was

recorded at Rp 7.7 trillion.

Meanwhile, PTBA has no intention of

increasing the remaining funding this year.

"So far our funding has come from internal

cash, funding is still very safe," said Andwie

to Kontan.co.id, Monday (19/10).

Likewise, PT Adaro Energy Tbk (ADRO)

also focuses on maximizing core business

operations. Adaro Energy Head of

Corporate Communication Febriati Nadira

said that as of Semester I 2020, ADRO's

cash position was recorded at US$ 1,075

million with free cash flow of US$ 312

million.

"(Allocation of funding) is to increase

operating efficiency and productivity,

maintain cash and maintain a solid

financial position amidst difficult

situations that impact most of the business

world," Febriati told Kontan.co.id, Monday

(19/10).

Perusahaan tambang menjaga tingkatan pendanaan korporasi

Reporter: Filemon Agung | Editor: Handoyo

SEJUMLAH perusahaan pertambangan

batubara memastikan pendanaan untuk operasional selama tahun ini berada pada tingkatan yang masih terjaga.

Sebelumnya, survei Bank Indonesia (BI) menyimpulkan bahwa kebutuhan pem-biayaan korporasi pada September 2020 meningkat dibandingkan bulan sebelum-nya (Agustus 2020).

Sekretaris Perusahaan PT Bukit Asam Tbk (PTBA) Apollonius Andwie mengungkap-kan net cash PTBA per 30 Juni 2020 tercatat sebesar Rp 7,7 triliun.

Adapun, belum ada niatan untuk menambah pendanaan disisa tahun ini oleh PTBA. "Sejauh ini pendanaan kami bersumber dari kas internal, pendanaan masih sangat aman," ujar Andwie kepaa Kontan.co.id, Senin (19/10).

Senada, PT Adaro Energy Tbk (ADRO) juga berfokus memaksimalkan operasional bisnis inti. Head of Corporate Communi-cation Adaro Energy Febriati Nadira menuturkan per Semester I 2020 posisi kas ADRO tercatat sebesar US$ 1.075 juta dengan arus kas bebas sebesar US$ 312 juta.

"(Peruntukan pendanaan) untuk mening-katkan efisiensi dan produktifitas operasi, menjaga kas dan mempertahankan posisi keuangan yang solid di tengah situasi sulit yang berdampak terhadap sebagian besar dunia usaha," kata Febriati kepada Kontan.co.id, Senin (19/10).

Daily News Update Page 4

Meanwhile, Director of PT ABM Investama Tbk (ABMM) Adrian Erlangga said that this year, no significant investment has been made. "There is no significant investment this year due to Covid. We are postponing the unnecessary capex," said Adrian, Monday (19/10).

This is reflected in the realization of this year's capex which has reached US$ 18 million where the allocation is for maintenance of mining equipment.

Sementara itu, Direktur PT ABM Investama Tbk (ABMM) Adrian Erlangga bilang pada tahun ini memang tidak ada investasi signifikan yang dilakukan. "Tidak ada investasi yang signifikan di tahun ini akibat Covid. Kami menunda unnecessary capex," kata Adrian, Senin (19/10).

Hal tersebut tercermin dari realisasi capex tahun ini yang telah mencapai US$ 18 juta dimana peruntukannya yakni untuk perawatan alat-alat tambang.

Adaro targets 2 million cooking coal production next year

Reporter: Intan Pratiwi/Editor: Gita Amanda, Nidia Zuraya

PT ADARO Energy is increasingly

optimistic in developing coking coal or cooking coal. The main raw material for

downstream steel will be taken seriously by Adaro next year. Next year, the

company targets coking coal production to double.

Adaro Energy's Chief Financial Officer, Lie Luckman, explained that this year, Adaro's

cooking coal production ranges from 1 to 1.1 million tons. This is produced from

Adaro's cooking coal mine in Central Kalimantan. The target is that next year the

production of cooking coal can reach 2 million tons.

"We are optimistic that this year AMC will reach 1-1.1 million. Next year with the

smoother production process, we will also know more about mining sequels and

clearer maintenance, production can be at least double this year," Lie said in a virtual

press conference, Tuesday (20/10).

Adaro Targetkan 2 Juta Produksi Cooking Coal Tahun Depan

Reporter: Intan Pratiwi/Redaksi: Gita Amanda, Nidia Zuraya

PT ADARO Energy semakin optimistis

dalam pengembangan batubara kokas atau cooking coal. Bahan baku utama hilirisasi

baja ini akan diseriusi oleh Adaro pada tahun depan. Tahun depan perusahaan

mentargetkan produksi batubara kokas bisa naik dua kali lipat.

Chief Financial Officer Adaro Energy, Lie

Luckman, menjelaskan pada tahun ini produksi cooking coal Adaro berkisar

antara 1 sampai 1,1 juta ton. Ini diproduksi dari tambang cooking coal milik Adaro di

Kalimantan Tengah. Targetnya, pada tahun depan produksi cooking coal bisa men-

capai 2 juta ton.

"Kita optimistis tahun ini AMC bisa sampai

1-1,1 juta. Tahun depan dengan semakin lancar proses produksi kita juga lebih

mengenal mining sequel dan maintaince lebih jelas, produksi bisa minimal double

dari tahun ini," ujar Lie dalam konferensi pers virtual, Selasa (20/10).

Daily News Update Page 5

Lie also explained that in parallel the company will also improve mining

infrastructure in Central Kalimantan. This is done so that the smooth logistics system

at Adaro Indonesia (thermal coal mine) can also be applied at the cooking coal mine.

"We hope this year, because this is a new

terrain, in Central Kalimantan. The conditions are also upstream compared to

AI. So we are studying our logistics lines. Both the entry of fuel and the transpor-

tation system," said Lie.

Adaro Energy's President Director,

Garibaldi Thohir or familiarly called Boy Thohir also explained that the cooking coal

market itself is very large. Both domestic and global markets. This is because the

spirit of downstream steel, which is currently being carried out, requires a

sufficient supply of cooking coal.

"I also see that the prospect of cooking coal

will be very good and this is our vision for the future as well. Our cooking coal can be

a big contributor as well. There are domestic and export products. And there

are also downstream products. This is a future prospect," said Garibaldi on the

occasion. same.

However, in line with Lie, Garibaldi also admitted that the company had to improve

the logistics system for cooking coal. The hope is that the more orderly logistics

system can increase transportation and production of cooking coal in the future.

"The challenge is the logistical problem. Our business model is where we go.

Transportation from Central Kalimantan to the export and domestic markets will be

carried out in such a way that the business model we have hoped for in AI, we will

apply again in cooking coal," said Garibaldi.

Lie juga menjelaskan secara paralel perusahaan juga akan meningkatkan infrastruktur tambang di Kalimantan Tengah. Hal ini dilakukan agar sistem logistik yang sudah lancar di Adaro Indonesia (Tambang batubara thermal) juga bisa diterapkan di tambang cooking coal.

"Kita harapkan tahun ini, karena ini medannya juga baru, di Kalteng. Kondisi-nya juga ini kan lebih hulu dibandingkan AI. Jadi kami sedang pelajari jalur logistik kita. Baik masuknya fuel dan sistem pengangkutan," ujar Lie.

Presiden Direktur Adaro Energy, Garibaldi Thohir atau akrab disapa Boy Thohir juga menjelaskan untuk pasar cooking coal sendiri memang sangat besar. Baik dalam negeri maupun pasar global. Sebab, semangat hilirisasi baja yang juga sedang dilakukan sekarang ini membutuhkan pasokan cooking coal yang cukup banyak.

"Saya liat juga prospek cooking coal akan sangat baik dan ini visi kita kedepan juga. Cooking coal kita bisa menjadi kontributor besar juga. Ada ekspor dan dalam negeri. Dan juga ada produk hilirisasi. Ini yang menjadi prospek kedepan," ujar Garibaldi dalam kesempatan yang sama.

Namun senada dengan Lie, Garibaldi juga mengakui bahwa perusahaan harus me-ningkatkan sistem logistik untuk cooking coal ini. Harapannya dengan semakin tertatanya sistem logistik maka bisa meningkatkan pengangkutan dan produksi cooking coal kedepan.

"Tantangannya ya masalah logistik kan. Bisnins model kita kan tapi kesana arahnya. Pengangkutan dari Kalteng ke pasar ekspor dan dalam negeri kita akan lakukan sedemiakn rupa sehingga bisnis model yang sudah kita tarapkan di AI, kita akan terapkan lagi di cooking coal," ujar Garibaldi.

Daily News Update Page 6

Adaro Expects Coal Demand from China to Increase

PT Adaro Energy, Tbk hopes that one way to boost sales from domestic coal production is through increasing demand for coal from China. This hope is also in line with the meeting of the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan with the Chinese government last week.

Adaro Energy's President Director, Garibaldi Thohir explained that Adaro appreciated the government's move to coordinate with the Chinese government to increase coal imports from Indonesia. This hopefully can also boost domestic coal sales.

"Considering that the political relations between China and Indonesia are better than other countries. I also appreciate Pak Jokowi and Pak Luhut. We pick up the ball, how later in this condition our exports to China can be increased. By increasing exports to China, we can adding foreign exchange as well. So that the country's economy will also be moved," said Garibaldi in a virtual press conference, Tuesday (20/10).

Adaro Energy's Chief Financial Officer, Lie Luckman, explained that in 2019 Adaro's exports to China reached 10 percent of total production. The calculation, in 2020 this figure is not much different. With the government lobbying the Chinese govern-ment, he hopes that in the fourth quarter of this year, exports can also increase, especially to China.

"2020, the composition does not move much. Finally, with the presence of a band from China over Australia, we hope that in Q4 there will be an increase in demand for Indonesia. This is what we are trying and we hope for an increase," said Lukman.

Adaro Berharap Permintaan Batubara dari China Meningkat

PT Adaro Energy, Tbk berharap salah satu cara untuk mendongkrak penjualan dari produksi batubara dalam negeri bisa melalui peningkatan permintaan batubara dari China. Harapan ini juga sejalan dengan pertemuan Menko Maritim dan Investasi Luhut Binsar Panjaitan dengan pemerintah China pekan lalu.

Presiden Direktur Adaro Energy, Garibaldi Thohir menjelaskan Adaro mengapresiasi langkah pemerintah untuk bisa ber-kordinasi dengan pemerintah China untuk bisa meningkatkan impor batubara dari Indonesia. Hal ini harapannya juga bisa mengatrol penjualan batubara dalam negeri.

"Mengingat hubungan politik antara China ke indonesia kan lebih bagus ya dibanding-kan negara lain. Saya juga apresiasi sama pak Jokowi dan pak Luhut. Kita menjemput bola bagaimana nanti dalam kondisi ini bisa ditingkatkan ekspor kita ke China. Dengan kita bisa meningkatkan ekspor ke China kita bisa nambah devisa juga. Supaya ekonomi di tanah air juga tergerak," ujar Garibaldi dalam konferensi pers virtual, Selasa (20/10).

Chief Financial Officer Adaro Energy, Lie Luckman menjelaskan pada tahun 2019 ekspor Adaro ke China mencapai 10 persen dari total produksi. Perhitungannya, pada 2020 ini juga angka ini tidak berbeda jauh. Dengan adanya lobi pemerintah ke pemerintah China harapannya di kuartal empat tahun ini ekspor juga bisa mening-kat, khususnya ke China.

"2020, komposisi gak banyak bergerak. Terakhir dengan adanya band dari china atas Australi, kita harapkan di Q4 adanya peningkatan permintaan terhadap Indonesia. Ini yang kita coba dan kita harapkan ada peningkatan," ujar Lukman.

Daily News Update Page 7

The Indonesian government lobbied the Chinese government to increase trade in the coal sector. Luhut Binsar Pandjaitan, Coordinating Minister for the Economy and Investment, directly chaired a meeting with Chinese Foreign Minister Wang Yi in Yunnan, China, Friday (9/10) last week.

Luhut asked China to increase imports from Indonesia, especially palm oil, coal, tropical fruit and swallow's nest, and encouraged Chinese Customs to facilitate protocols for pineapples and bark and swallow nest export permits for Indonesian exporters.

During the meeting, Minister Wang Yi gave the green light to matters conveyed by Minister Luhut, and would ask related Ministries in China to technically resolve issues regarding trade (import), dumping, and investment.

China has been the main destination for Indonesia's coal exports so far. Based on the records of the Indonesian Coal Mining Association (APBI), almost 25 percent of the portion of coal exports goes to the Bamboo Curtain country every year.

Pemerintah Indonesia melobi pemerintah China agar meningkatkan perdangaan sektor batu bara. Luhut Binsar Pandjaitan, Menteri Koordinator Bidang Perekonomian dan Investasi, memimpin langsung pertemuan dengan Menteri Luar Negeri China Wang Yi di Yunnan, China, Jumat (9/10) pekan lalu.

Luhut meminta China meningkatkan impor dari Indonesia khususnya kelapa sawit, batu bara, buah-buahan tropis dan sarang burung walet serta mendorong Bea Cukai China memfasilitasi protokol untuk nanas dan salak serta izin ekspor sarang burung walet untuk eksportir Indonesia.

Dalam pertemuan tersebut menteri Wang Yi memberikan lampu hijau terhadap hal-hal yang disampaikan oleh Menteri Luhut, serta akan meminta Kementerian terkait di China untuk menyelesaikan secara teknis isu-isu mengenai perdagangan (impor), dumping, dan investasi.

China memang menjadi tujuan utama ekspor batu bara Indonesia selama ini. Berdasarkan catatan Asosiasi Pertambangan Batu Bara Indonesia (APBI) hampir 25 persen porsi ekspor batu bara ditujukan ke negeri Tirai Bambu setiap tahun.

During the third quarter of 2020, Aneka Tambang (ANTM)

sold 6,967 kg of gold Reporter: Akhmad Suryahadi | Editor:

Herlina Kartika Dewi

PT ANEKA Tambang Tbk (ANTM)'s commodity sales continue to grow. During the July-September 2020 period, ANTM sold 6,967 kilograms (kg) of gold or the equivalent of 223,994 oz (unaudited).

Sepanjang kuartal III-2020, Aneka Tambang (ANTM) jual

6.967 kg emas Reporter: Akhmad Suryahadi | Editor:

Herlina Kartika Dewi

PENJUALAN komoditas PT Aneka Tambang Tbk (ANTM) terus tumbuh. Sepanjang periode Juli-September 2020, ANTM menjual 6.967 kilogram (kg) emas atau setara 223.994 oz (unaudited).

Daily News Update Page 8

This realization grew 147% compared to the second quarter of 2020 which was only

2,818 kg or 90,600 oz.

Quoting the disclosure of information on the Indonesia Stock Exchange website,

Wednesday (21/10), Corporate Secretary Aneka Tambang Kunto Hendrapawoko

said, during the first nine months of 2020, ANTM gold sales reached 14,882 kg or

478,467 oz.

Kunto continued, in order to maintain

service quality in the midst of new normal conditions, ANTM has innovated product

sales and Precious Metals (LM) buybacks using an online mechanism.

Currently, ANTM through a network of gold boutiques spread across 11 cities in

Indonesia runs operations by imple-menting health protocols.

From the production side, ANTM recorded

unaudited gold production from the Pongkor and Cibaliung mines of 430 kg or

13,825 oz or a growth of 6% from production in the second quarter of 2020

which was only 404 kg (12,988 oz).

With this achievement, it was recorded

that ANTM's unaudited gold production during the first nine months of 2020

reached 1,280 kg (41,153 oz).

Previously, Kunto said that the high public

interest in investing in precious metals and in line with the positive growth in

domestic demand for gold prompted ATAM to focus on domestic retail gold sales by

utilizing production from the Pongkor and Cibaliung gold mines.

The range of gold production from the

Pongkor and Cibaliung mines is projected to reach 2 tons per year. This year, the gold

sales target is in the range of 18 tons.

Realisasi ini tumbuh 147% dibandingkan periode triwulan II-2020 yang hanya 2.818 kg atau 90.600 oz.

Mengutip keterbukaan informasi di laman Bursa Efek Indonesia, Rabu (21/10), Sekretaris Perusahaan Aneka Tambang Kunto Hendrapawoko menyebut, sepan-jang sembilan bulan pertama 2020, penjualan emas ANTM mencapai 14.882 kg arau 478.467 oz.

Kunto melanjutkan, guna menjaga kualitas layanan di tengah kondisi new normal, ANTM melakukan inovasi penjualan produk dan buyback Logam Mulia (LM) dengan mekanisme online.

Saat ini, ANTM melalui jaringan butik emas yang tersebar di 11 kota di Indonesia menjalankan operasional dengan mene-rapkan protokol kesehatan.

Dari sisi produksi, ANTM mencatatkan produksi unaudited emas dari tambang Pongkor dan Cibaliung sebesar 430 kg atau 13.825 oz atau tumbuh 6% dari capaian produksi di kuartal kedua 2020 yang hanya 404 kg (12.988 oz).

Dengan capaian tersebut, tercatat produksi emas unaudited ANTM sepanjang Sembilan bulan pertama 2020 mencapai 1.280 kg (41.153 oz).

Sebelumnya, Kunto mengatakan tingginya minat masyarakat untuk berinvestasi logam mulia dan seiring dengan pertum-buhan tingkat permintaan emas di dalam negeri yang positif mendorong ATAM untuk memfokuskan penjualan emas ritel domestik dengan memanfaatkan produksi dari tambang emas Pongkor dan Cibaliung.

Adapun kisaran produksi emas dari tambang Pongkor dan Cibaliung di-proyeksikan mencapai 2 ton per tahun. Pada tahun ini, untuk target penjualan emas ada di kisaran 18 ton.

Daily News Update Page 9

Kunto is optimistic that with the improving global economic conditions and the growing level of gold demand, especially in the domestic market, ANTM can increase the profit margin of the gold business this year.

Kunto optimistis, dengan membaiknya kondisi perekonomian global serta tumbuhnya tingkat permintaan emas khususnya di pasar dalam negeri, ANTM dapat meningkatkan marjin keuntungan dari bisnis emas tahun ini.

Luhut Said Indonesian Coal Exports Will Drop, What

Happened? Wilda Asmarini, CNBC Indonesia

NOT only minerals, the government also

plans to downstream coal commodities. As a result, coal, which has been dominated for export abroad, will be mostly used domestically.

The Coordinating Minister for Maritime Affairs and Investment, Luhut Pandjaitan, said that the government will develop coal downstreaming so that coal also has added value.

He said coal would be converted into a number of products such as methanol which could be used as a mixture for biodiesel (Fatty Acid Methyl Esters/FAME), then Dimethyl Ether (DME) which could be used as a substitute for LPG.

"Indonesian coal is currently mostly exported. We also want to change it, convert it too so that we have added value into DME, methanol, etc . Derivative products have added value of 2-3 times," he said at the INDY FEST event. 2020 in commemoration of PT Indika Energy Tbk's 20th anniversary which was broadcast on the Netmediatama YouTube channel yesterday, Monday (19/10/2020).

Luhut Ungkap Ekspor Batu Bara RI Bakal Turun, Ada Apa Nih?

Wilda Asmarini, CNBC Indonesia

TIDAK hanya mineral, pemerintah juga

berencana melakukan hilirisasi pada komoditas batu bara. Akibatnya, batu bara yang selama ini didominasi untuk ekspor ke luar negeri, akan lebih banyak di-manfaatkan di dalam negeri.

Menteri Koordinator Bidang Kemaritiman dan Investasi, Luhut Pandjaitan, mengata-kan pemerintah akan mengembangkan hilirisasi batu bara sehingga batu bara juga bernilai tambah.

Dia mengatakan, batu bara akan diubah menjadi sejumlah produk seperti methanol yang dapat dijadikan campuran untuk biodiesel (Fatty Acid Methyl Esters/ FAME), lalu Dimethyl Ether (DME) yang bisa digunakan sebagai substitusi LPG.

"Batu bara Indonesia saat ini lebih banyak diekspor. Kita juga ingin mengubahnya, meng-convertnya juga agar kita punya nilai tambah jadi DME, methanol, dan lain-lain. Produk turunan bernilai tambah 2-3 kali," tuturnya, dalam acara INDY FEST 2020 dalam rangka memperingati hari ulang tahun ke-20 PT Indika Energy Tbk yang ditayangkan dalam kanal YouTube Netmediatama kemarin, Senin (19/10/ 2020).

Daily News Update Page 10

According to him, one of the national coal companies belonging to the Bakrie group, plans to carry out this coal downstreaming in collaboration with a company from the United States, namely Air Products.

Luhut also said that this coal downstream could also be developed into a DME to replace LPG, thereby reducing LPG imports. According to him, the down-streaming of coal into DME could reduce LPG imports by Rp 40 trillion.

He said, LPG imports in the last five years continued to increase. In 2019, LPG imports even reached 5.7 million tons or US$ 2.5 billion.

"We, Indonesia, in the future will talk about savings, efficiency," he said.

Based on data from the Ministry of Energy and Mineral Resources (ESDM), from the planned coal production in 2020 of 550 million tons, the export plan will reach 395 million tons and domestic only about 155 million tons. In 2019, from production reaching 610 million tons, domestic absorption is only around 138 million tons, meaning the rest is exported.

The coal reserves in 2019 reached 37.6 billion tons and resources 149 billion tons. (wia)

Menurutnya, salah satu perusahaan batu bara nasional milik Bakrie group, beren-cana melakukan hilirisasi batu bara ini dengan bekerja sama dengan perusahaan asal Amerika Serikat yakni Air Product.

Luhut juga mengatakan, hilirisasi batu bara ini juga bisa dikembangkan menjadi DME untuk menggantikan LPG, sehingga bisa mengurangi impor LPG. Menurutnya, hiliri-sasi batu bara menjadi DME ini bisa mengu-rangi impor LPG sebesar Rp 40 triliun.

Dia menyebut, impor LPG dalam lima tahun terakhir terus meningkat. Pada 2019 impor LPG bahkan mencapai 5,7 juta ton atau senilai US$ 2,5 miliar.

"Kita, Indonesia, ke depan akan bicara tentang penghematan, efisiensi," ujarnya.

Berdasarkan data Kementerian Energi dan Sumber Daya Mineral (ESDM), dari rencana produksi batu bara pada 2020 sebesar 550 juta ton, rencana ekspor mencapai 395 juta ton dan domestik hanya sekitar 155 juta ton. Pada 2019, dari produksi mencapai 610 juta ton, penyerapan domestik hanya sekitar 138 juta ton, dan berarti sisanya diekspor.

Adapun cadangan batu bara pada 2019 mencapai 37,6 miliar ton dan sumber daya 149 miliar ton. (wia)

Morowali Industrial (IMIP)

dominates the production of refined nickel in Indonesia

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

IN a relatively short time, Indonesia

Morowali Industrial Park (IMIP) was able to change the map of processed nickel producers in Indonesia.

Morowali Industrial (IMIP)

merajai produksi nikel olahan di Indonesia

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

DALAM tempo yang relat if singkat ,

Indonesia Morowali Industrial Park (IMIP) mampu mengubah peta produsen nikel olahan di Indonesia.

Daily News Update Page 11

Shifting PT Vale Indonesia Tbk (INCO), since 2018 IMIP has controlled half of processed nickel production in Indonesia.

In a webinar on nickel downstreaming last week, CEO of PT Indonesia Morowali Industrial Park (IMIP) Alexander Barus revealed that the rampant production of refined nickel in Morowali has not been completed once. By cooperating with investors from China, the nickel processing industry was built in 2013.

He said, development started from zero, without supporting infrastructure such as power plants. In fact, to support construction work, IMIP must build its own 6 x 3 megawatt (MW) diesel power plant.

"Oxygen is also not enough, so we build an oxygen plant. Clean water is the same, housing must also be built. We also build ports. If everything is there in Java, here is not, that's a big challenge," explained Alex.

In early 2014, the first nickel smelter was built with a current capacity of 300,000 tons of Nickel Pig Iron (NPI). It doesn't stop there, Morowali's nickel refined industry has grown rapidly in the 2015-2019 period.

"Our investors are thinking of developing the next one. Between 2015-2019 it will be built. In total today we have 32 lines (production facilities)," said Alex.

By the end of the year, the production facilities are targeted to continue to grow to reach 40 lines. With that capacity, the need for nickel ore which can be absorbed as raw material reaches 25 million metric tons (MT).

With this nickel processing capacity, the processed nickel products produced by IMIP are not only in the form of NPI, but also stainless steel and carbon steel. IMIP's capacity is capable of producing 3 million MT of stainless steel and also 3.5 million MT of carbon steel.

Menggeser PT Vale Indonesia Tbk (INCO), sejak 2018 IMIP sudah menguasai separuh produksi nikel olahan di Indonesia.

Dalam webinar mengenai hilirisasi nikel pekan lalu, CEO PT Indonesia Morowali Industrial Park (IMIP) Alexander Barus membeberkan bahwa maraknya produksi nikel olahan di Morowali tidak lah sekali jadi. Dengan menggandeng investor dari China, industri olahan nikel dibangun mulai tahun 2013.

Dia bercerita, pembangunan dimulai dari nol, tanpa infrastruktur penunjang seperti pem-bangkit listrik. Bahkan untuk menunjang pengerjaan konstruksi, IMIP harus mem-bangun sendiri pembangkit listrik diesel seebsar 6 x 3 megawatt (MW).

"Oksigen juga tidak cukup, jadi kami bangun oksigen plant. Air bersih juga sama, perumah-an juga harus dibangun. Pelabuhan juga kami bangun. Kalau di Jawa semua sudah ada, di sini tidak, itu lah tantangan yang besar," jelas Alex.

Awal tahun 2014, fasilitas pengolahan nikel (smelter) pertama pun dibangun dengan kapasitas saat itu sebesar 300.000 ton Nikel Pig Iron (NPI). Tak berhenti sampai di situ, industri nikel olahan Morowali berkembang pesat dalam rentang 2015-2019.

"Investor kita ini berpikir untuk mengem-bangkan berikutnya. Antara 2015-2019 dibangun lah. Totalnya hari ini kita punya 32 line (fasilitas produksi)," ungkap Alex.

Hingga akhir tahun, fasilitas produksi ditarget terus bertambah hingga mencapai 40 line. Dengan kapasitas itu, kebutuhan bijih nikel (ore) yang mampu diserap sebagai bahan baku mencapai 25 juta metrik ton (MT).

Dengan kapasitas pengolahan nikel itu, produk nikel olahan yang dihasilkan IMIP tak hanya berupa NPI, melainkan sampi ke stainless steel dan carbon steel. Kapasitas yang dimiliki IMIP mampu memproduksi 3 juta MT stainless steel dan juga 3,5 juta MT carbon steel.

Daily News Update Page 12

Not only to the stainless steel industry, Alex said that IMIP is also engaged in nickel products as raw material for electric car batteries, through processing High Pressure Acid Leaching (HPAL). At least four companies are planning to invest in producing nickel sulfate and cobalt sulfate cathodes through HPAL.

If it goes well, nickel processing with this type of product will be the largest in the world. "There is a total of 240,000 pure nickel capacity. This is the largest in the world, if so. In Morowali there is a mini plant for the extraction of HPAL, we will continue to try. We think the investment is US$ 3 billion," said Alex.

Referring to the data presented by the Special Staff of the Minister of EMR for Mineral and Coal Management Irwandy Arif, in 2014, Vale still controlled nickel production with a share of 77%. Followed by Antam with 19% and other companies with 3%.

However, the map of the downstream nickel industry to the intermediate product has changed drastically. In 2018, IMIP already controlled 50% of downstream nickel production in Indonesia.

Vale's portion also decreased to 22% and Antam's only 5%. The state-owned nickel company has even been overtaken by Virtue Dragon which holds a nickel production portion of 11%, Harita Group 6% and other companies 6%.

"What will happen in 2023, surely the composition will change drastically again. This is an extraordinary development," said Irwandy in a webinar on the use of nickel which was held on Tuesday (13/10).

According to Irwandy, the downstream nickel industry is increasingly competitive and is stil l promising, both for the development of the stainless steel-based industry and for the battery industry.

Tak hanya sampai industri stainless steel saja, Alex mengatakan bahwa IMIP juga sedang bergerak di produk nikel untuk bahan baku baterai mobil listrik, melalui pengolahan High Pressure Acid Leaching (HPAL). Paling tidak sudah ada empat perusahaan yang berencana melakukan investasi untuk memproduksi katoda nikel sulfat dan cobalt sulfat melalui HPAL.

Jika berjalan lancar, olahan nikel dengan jenis produk seperti ini akan menjadi yang terbesar di dunia. "Total ada 240.000 nikel murni kapasitasnya. Ini terbesar di dunia, kalau jadi. Di Morowali ada mini plant untuk proses ekstraksi HPAL, kita coba terus. Kira kira investasi US$ 3 miliar," ungkap Alex.

Merujuk pada data yang dipaparkan Staf Khusus Menteri ESDM Bidang Tata Kelola Mineral dan Batubara Irwandy Arif, pada tahun 2014, produksi nikel masih dikuasai oleh Vale dengan porsi 77%. Disusul Antam dengan 19% dan perusahaan lainnya sebanyak 3%.

Namun, peta industri hilir nikel hingga produk setengah jadi (intermediate product) itu telah berubah dengan drastis. Pada 2018, IMIP sudah menguasai 50% dari produksi hilir nikel di Indonesia.

Porsi Vale pun susut jadi 22% dan Antam hanya 5% saja. Perusahaan nikel BUMN itu bahkan sudah tersalip oleh Virtue Dragon yang memegang porsi produksi nikel sebesar 11%, Harita Group 6% dan per-usahaan lainnya sebanyak 6%.

"Apa yang terjadi pada 2023, pasti kompo-sisinya akan berubah drastis lagi. Luar biasa perkembangannya," ungkap Irwandy dalam webinar tentang pemanfaatan nikel yang digelar Selasa (13/10).

Menurut Irwandy, industri hilir nikel semakin kompetitif dan masih menjanjikan, baik untuk pengembangan industri berbasis stainless steel maupun untuk industri baterai.

Daily News Update Page 13

Unfortunately, until now all products produced by smelters in Indonesia are still

in intermediate products or semi-finished products.

Overall, more than 90% of Indonesian

smelter products are stil l NPI-based products. "The development of smelter

production is quite significant, but 99%, or all of them 100% are still intermediate

products. 90% more are NPI products," said Irwandy.

Based on data from the Ministry of Industry, in the last 5 years, Tsingshan

Group and Jiangsu Delong Group have been very aggressive in developing the nickel

processing industry in Sulawesi and Maluku. This is reflected in the rampant

construction of nickel processing facilities there.

In Morowali, there are at least 6 nickel processing facilities built by the Tsingshan

Group in 2015-2018, by processing nickel into various products such as NPI, Fero

Nickel, Stainless Steel, SS Slabs, SS HRC, Carbon fans. In addition, Tsingshan Group

is also developing a nickel processing facility in Weda Bay to produce FeNi Ore

and nickel (NPC).

Meanwhile in Konawe, the aggressive investor is Jiangsu Delong through Virtue

Dragon which processes nickel into NPI and Stainless Steel and Obsidian Stainless

Steel which produces SS Billets.

Meanwhile, currently there are 19 nickel

smelters operating. 11 nickel smelters have operating business permits from the

Ministry of EMR. From the miners' side, referring to data from the Ministry of

Energy and Mineral Resources, there are 292 companies holding Mining Business

Permits (IUP) and 4 Contracts of Work.

Sayangnya, hingga sekarang seluruh produk yang dihasilkan smelter di

Indonesia masih dalam intermediate product atau produk setengah jadi.

Secara keseluruhan, lebih dari 90% produk

smelter Indonesia masih berupa produk berbasis NPI. "Perkembangan produksi

smelter cukup signifikan, tetapi 99%, atau semuanya 100% masih intermediate

produk. 90% lebih adalah produk NPI," ujar Irwandy.

Berdasar data dari Kementerian Perindus-trian, dalam 5 tahun terakhir, Tsingshan

Group dan Jiangsu Delong Group sangat agresif dalam mengembangkan industri

olahan nikel di Sulawesi dan Maluku. Hal itu tergambar dari maraknya pem-

bangunan fasilitas pengolahan nikel di sana.

Di Morowali, paling tidak ada 6 fasilitas pengolahan nikel yang dibangun Tsingshan

Group pada 2015-2018, dengan mengolah nikel menjadi aneka produk seperti NPI,

Fero Nikel, Stainless Steel, SS Slabs, SS HRC, fan Carbon. Selain itu, Tsingshan

Group juga mengembangkan fasilitas olahan nikel di Weda Bay untuk mem-

produksi FeNi Ore dan nikel (NPC).

Sedangkan di Konawe, investor yang agresif adalah Jiangsu Delong melalui

Virtue Dragon yang mengolah nikel menjadi NPI dan Stainless Steel serta

Obsidian Stainless Steel yang mem-produksi SS Billets.

Adapun, saat ini ada 19 smelter nikel yang beroperasi. 11 smelter nikel mengantongi

izin usaha operasi dari Kementerian ESDM. Dari sisi penambang, merujuk pada data

Kementerian ESDM, ada 292 perusahaan pemegang Izin Usaha Pertambangan (IUP)

dan 4 Kontrak Karya.

Daily News Update Page 14

However, of this number, only 11 IUP OP and 1 KK are suppliers of 11 smelters holding IUP OPK from the Ministry of EMR. Overall, in 2019, nickel matte production was 72,000 tonnes. FerroNickel production was 1.1 million tons and NPI production was 781,000 tons.

Namun dari jumlah tersebut, hanya ada 11 IUP OP dan 1 KK yang menjadi pemasok 11 smelter pemegang IUP OPK dari Kemen-terian ESDM. Secara keseluruhan, pada tahun 2019, produksi nikel matte sebesar 72.000 ton. Produksi FeroNikel 1,1 juta ton dan produksi NPI sebanyak 781.000 ton.

Adaro (ADRO) Opens Opportunities for Expansion of the Coal Downstream Business

Finna U. Ulfah

THE COAL mining company, PT Adaro

Energy Tbk., opens opportunities for expansion in the coal downstream business.

President Director and Chief Executive Officer of Adaro Energy Garibaldi Thohir said that in the future his party will be more proactive in taking initiatives related to expansion in the downstream coal.

"The technology has been proven, whether coal to methanol, coal to DME, or coal to gas, we will sort it again, which one suits our business model, and which one can synergize with Adaro, we will do it later," said Garibaldi during a media gathering Adaro Energy's 28th Anniversary virtually, Tuesday (20/10/2020).

The man who is often called Boy Thohir also admitted to having conducted studies and explorations with several companies, including foreign parties, which had technology in the downstream coal sector.

The issuer coded ADRO shares claims to have several advantages and readiness to create a joint venture in the downstream business, such as sufficient reserves, infra-structure, and adequate workforce.

Adaro (ADRO) Buka Peluang Ekspansi Bisnis Hilirisasi Batu

Bara Finna U. Ulfah

EMITEN pertambangan batu bara, PT Adaro

Energy Tbk., membuka peluang untuk ekspansi di bisnis hilirisasi batu bara.

Presiden Direktur dan Chief Executive Officer Adaro Energy Garibaldi Thohir mengatakan bahwa ke depan pihaknya akan lebih proaktif untuk melakukan inisiatif terkait ekspansi di hilirisasi batu bara.

“Teknologinya sudah proven, apakah coal to methanol, coal to DME, atau coal to gas, nanti kami pilah lagi, mana yang sesuai dengan bisnis model kami, dan yang bisa sinergi dengan Adaro, nanti kami akan lakukan,” ujar Garibaldi saat media gathering HUT ke 28 Adaro Energy secara virtual, Selasa (20/10/2020).

Pria yang kerap disapa Boy Thohir ini juga mengaku telah melakukan studi dan pen-jajakan dengan beberapa perusahaan, ter-masuk pihak asing, yang memiliki teknologi di bidang hilirisasi batu bara tersebut.

Emiten berkode saham ADRO itu mengklaim memiliki beberapa keunggulan dan kesiapan untuk membuat kongsi di bisnis hilirisasi seperti cadangan yang mencukupi, infra-struktur, hingga tenaga kerja yang sudah memadai.

Daily News Update Page 15

Meanwhile, the plan is in line with the red carpet to boost the government's domestic downstream business through the Omnibus Law, which was recently passed.

In the regulation, there is a regulation on the imposition of a royalty of 0 percent for business actors who increase the added value of coal.

"We definitely support it because this is a good program, the government must think about how the national interest takes precedence," said Boy. Editor: Annisa Sulistyo Rini

Adapun, rencana itu sejalan dengan karpet merah untuk menggenjot bisnis hilirisasi dalam negeri dari pemerintah melalui Omnibus Law Undang-Undang Cipta Kerja yang belum lama ini disahkan.

Dalam beleid tersebut, terdapat aturan pengenaan royalti sebesar 0 persen bagi pelaku usaha yang melakukan peningkatan nilai tambah batu bara.

“Kami pasti dukung karena ini program baik, pasti pemerintah memikirkan bagai-mana kepentingan nasional didahulukan,” papar Boy. Editor : Annisa Sulistyo Rini

This is the reason the downstreaming of copper is

mandatory Inkana Putri - detikFinance

THE DIRECTOR General of Mineral and Coal (Minerba) of the Ministry of EMR, Ridwan Djamaluddin, emphasized that increasing the added value of copper through the downstream process should provide great benefits for the state and the people of Indonesia.

According to him, this can be achieved through a balanced financial mindset between the government and corporations.

"We want the long process of added value to have as much impact on the country as possible, to increase state revenue, create jobs, and build independence (energy)," Ridwan said in a written statement, Monday (19/10/2020).

He conveyed this in a webinar with the theme 'The Future of Indonesia's Copper Downstreaming' on Wednesday (14/10). In this discussion,...

Ini Alasan Hilirisasi Tembaga Wajib Dilakukan

Inkana Putri - detikFinance

DIREKTUR Jenderal Mineral dan Batubara

(Minerba) Kementerian ESDM Ridwan Djamaluddin menegaskan peningkatan nilai tambah tembaga melalui proses hilirisasi harus memberikan manfaat yang besar bagi negara dan masyarakat Indonesia.

Menurutnya, hal ini bisa dicapai melalui kesimbangan pola pikir finansial antara pemerintah dengan korporasi.

"Kita ingin proses nilai tambah yang panjang itu sebanyak mungkin memberi dampak bagi negara, untuk meningkatkan pendapatan negara, membuka lapangan kerja, dan membangun kemandirian (energi)," ujar Ridwan dalam keterangan tertulis, Senin (19/10/2020).

Hal ini ia sampaikan dalam webinar bertema 'Masa Depan Hilirisasi Tembaga Indonesia' pada Rabu (14/10). Dalam diskusi ini,...

Daily News Update Page 16

In this discussion, Ridwan also said that encouraging the construction of a copper smelter is not an easy step for business entities. The reason is, this requires a large enough investment capital.

"Every cent that goes out (from the corporation) must be counted. The government also counts every penny that is not earned. It is the right of the Indonesian people. This balance is what we will seek," he said.

Ridwan explained that the existence of Law Number 3 of 2020 concerning Mineral and Coal Mining (Minerba Law) further strengthens and emphasizes the down-streaming of added value of copper to be something that must be done.

"(It must be) done both for the government who ordered mandatory and industrial players to be implemented properly," he explained.

Currently, Indonesia has two copper smelters, one of which is operated by PT Smelting, a joint venture between PT Freeport Indonesia and Mitsubishi in Gresik, East Java. The company has a copper concentrate supply capacity of 1 million tons of copper per year and produces 300 thousand tons of copper cathodes per year.

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

Head of the Geological Agency, Eko Budi Lelono, said that based on the identification of the Geological Agency, Indonesia is currently included in the 7th largest copper reserve country in the world, which accounts for around 3% of total reserves in the world.

Dalam diskusi ini, Ridwan juga menyam-paikan mendorong pembangunan smelter tembaga bukanlah langkah mudah bagi badan usaha. Pasalnya, hal tersebut memerlukan modal investasi yang cukup besar.

"Setiap sen yang keluar (dari korporasi) harus dihitung, Pemerintah pun setiap sen yang tidak didapatkan harus juga dihitung. Itu adalah hak rakyat Indonesia. Keseim-bangan ini yang akan kita cari," tegasnya.

Ridwan menjelaskan adanya Undang-Undang Nomor 3 Tahun 2020 tentang Pertambangan Mineral dan Batubara (UU Minerba) semakin memperkuat dan me-negaskan hilirisasi nilai tambah tembaga menjadi sesuatu yang wajib dikerjakan.

"(Harus) dilakukan baik bagi pemerintah yang menyuruh wajib dan pelaku industri agar terimplementasi dengan baik," jelasnya.

Saat ini, Indonesia memiliki dua smelter tembaga yang salah satunya dioperasikan oleh PT Smelting, perusahaan patungan antara PT Freeport Indonesia dan Mitsubishi ya di Gresik, Jawa Timur. Perusahaan ini memiliki kapasitas pasokan konsentrat tembaga sebesar 1 juta ton tembaga per tahun dan menghasilkan 300 ribu ton katoda tembaga per tahun.

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

Kepala Badan Geologi Eko Budi Lelono mengatakan berdasarkan identifikasi Badan Geologi, saat ini Indonesia masuk kategori 7 negara cadangan tembaga ter-besar di dunia yang menyumbang sekitar 3% dari total cadangan di dunia.

Daily News Update Page 17

Indonesian copper ore has a total resource of 15,083 million and reserves of 2,632 million tons. Meanwhile, copper metal has total resources and reserves of 48.98 million tons and 23.79 million tons, respectively.

"Provinces with the largest copper resources are in West Nusa Tenggara, Central Kalimantan, East Java, Aceh and Papua," he concluded. (mul/mpr)

Adapun bijih tembaga Indonesia memiliki total sumber daya 15.083 juta dan cadangan 2.632 juta ton. Sementara itu logam tembaga punya masing-masing total sumber daya dan cadangan sebesar 48,98 juta ton dan 23,79 juta ton.

"Provinsi dengan sumber daya tembaga terbesar ada di Nusa Tenggara Barat, Kalimantan Tengah, Jawa Timur, Aceh, dan Papua," pungkasnya. (mul/mpr)

Adaro (ADRO) subsidiary's PKP2B contract expires in 2022, Boy Thohir is still waiting for PP

Minerba Reporter: Ridwan Nanda Mulyana | Editor:

Herlina Kartika Dewi

IN THE next few years, several jumbo-scale Coal Mining Concession Work Agreements (PKP2B) will expire. One of them is owned by PT Adaro Indonesia. The contract period for the subsidiary of PT Adaro Energy Tbk (ADRO) will expire on October 1, 2022.

In response to this, the President Director of PT Adaro Energy Tbk, Garibaldi Thohir, said that his party had not yet proposed a contract extension as well as the transfer of the license from PKP2B to a Special Mining Business License (IUPK). According to the man who is familiarly called Boy Thohir, Adaro is stil l waiting for regulations derived from Law Number 3 of 2020 (Minerba Law).

As is known, currently there are three Government Regulations (PP) that are being drafted as implementing regulations for the Minerba Law.

Kontrak PKP2B anak usaha Adaro (ADRO) habis 2022, Boy

Thohir masih tunggu PP Minerba

Reporter: Ridwan Nanda Mulyana | Editor: Herlina Kartika Dewi

DALAM beberapa tahun ke depan, beberapa

Perjanjian Karya Pengusahaan Pertam-bangan Batubara (PKP2B) berskala jumbo akan habis kontraknya. Satu di antaranya adalah milik PT Adaro Indonesia. Masa kontrak anak usaha PT Adaro Energy Tbk (ADRO) tersebut akan habis pada 1 Oktober 2022.

Menanggapi hal itu, Presiden Direktur PT Adaro Energy Tbk Garibaldi Thohir mengatakan bahwa pihaknya belum akan mengajukan perpanjangan kontrak sekaligus peralihan izin dari PKP2B menjadi Izin Usaha Pertambangan Khusus (IUPK). Menurut pria yang akrab disapa Boy Thohir itu, Adaro masih menunggu aturan turunan dari Undang-Undang Nomor 3 Tahun 2020 (UU Minerba).

Seperti diketahui, saat ini ada tiga Peraturan Pemerintah (PP) yang sedang disusun sebagai aturan pelaksanaan UU Minerba.

Daily News Update Page 18

"We still have time until 2022, and indeed we are still waiting for the PP, after the PP there will be a Permen (Ministerial Regulation)," Boy said in an online media gathering, Tuesday (20/10) afternoon.

To be sure, Boy sees that the new Minerba Law provides legal certainty for PKP2B holders who are about to run out of contracts, as well as for the mining business as a whole. He said Adaro would follow the conditions required to get a license extension and become an IUPK.

"With the new Minerba Law, the answer is that legal certainty in Indonesia is respected by the government and the DPR," Boy continued.

According to him, legal certainty is very important, both to maintain a conducive investment climate and to attract foreign investors. This is because in the last 10 to 15 years, the interest of foreign investors to invest in Indonesian mines has been minimal.

"But with the passage of the Minerba Law, I think this will have a positive effect on both foreign and domestic investors in trying and developing the natural resource business in Indonesia," explained Boy.

To obtain a license extension from PKP2B to IUPK, one of the conditions that must be met is the downstreaming of coal. In addition to the use of coal for Steam Power Plants (PLTU), ADRO is also conducting exploration and looking for the right technology for downstreaming coal in other forms, which are in accordance with its business model.

"Of course, we sorted which one fits our business model. We have started to carry out the initiative, conducted studies with several companies that have downstream technology," said Boy.

"Kami masih ada waktu sampai 2022, dan memang kami masih menunggu PP, setelah PP nanti ada Permen (Peraturan Menteri)-nya," kata Boy dalam media gathering yang digelar secara daring, Selasa (20/10) sore.

Yang pasti, Boy melihat bahwa UU Minerba baru itu memberikan kepastian hukum bagi para pemegang PKP2B yang akan habis kontrak, maupun bagi usaha tambang secara keseluruhan. Kata dia, Adaro bakal meng-ikuti ketentuan yang disyaratkan untuk bisa mendapatkan perpanjangan izin dan men-jadi IUPK.

"Dengan UU Minerba yang baru itu men-jawab, bahwa kepastian hukum di Indonesia dihargai oleh pemerintah dan DPR," sambung Boy.

Menurut dia, kepastian hukum tersebut sangat penting, baik untuk menjaga iklim investasi tetap kondusif maupun menarik investor asing. Pasalnya, dalam 10 tahun-15 tahun terakhir, minat investor asing untuk menanamkan modalnya di tambang Indonesia terhitung semakin minim.

"Tapi dengan disahkannya UU Minerba, saya rasa ini akan memberikan efek positif baik investor asing dan dalam negeri dalam berusaha dan mengembangkan bisnis sumber daya alam di Indonesia," terang Boy.

Untuk memperoleh perpanjangan izin dari PKP2B menjadi IUPK, salah satu syarat yang mesti dipenuhi adalah hilirisasi batubara. Selain pemanfaatan batubara untuk Pembangkit Listrik Tenaga Uap (PLTU), ADRO pun tengah melakukan penjajakan dan mencari teknologi yang tepat untuk hilirisasi batubara dalam bentuk lain, yang sesuai dengan model bisnisnya.

"Tentu kami pilah-pilah, mana yang sesuai dengan model bisnis kami. Kami sudah mulai melakukan inisiatif itu, melakukan studi dengan beberapa perusahaan yang mempunyai teknologi dalam hilirisasi," ungkap Boy.

Daily News Update Page 19

Just so you know, PT Adaro Indonesia is the largest mining company in the Adaro Group. One of the first generation PKP2B holders runs coal mining operations in South and Central Kalimantan, with a concession area of 31,380 hectares.

Meanwhile, applications for the continua-tion of contract/agreement operations can be submitted to the Minister of EMR no later than 5 years and no later than one year before the KK and PKP2B ends.

For information, the company whose contract expires in the near future is PT Arutmin Indonesia. Arutmin has a mining area of 57,107 ha, and the contract will expire on November 1, 2020.

Apart from Arutmin and Adaro, there are five other first generation PKP2Bs that are about to expire. Namely PT Kendilo Coal Indonesia (1,869 ha/13 September 2021), PT Kaltim Prima Coal (84,938 ha/31 December 2021), PT Multi Harapan Utama (39,972 ha/1 April 2022), PT Kideco Jaya Agung (47,500 ha/13 March 2023), and PT Berau Coal (108,009/26 April 2025).

Until the end of August 2020, there were only 3 PKP2Bs that had applied for license extensions. Namely PT Arutmin Indonesia, PT Kaltim Prima Coal and PT Multi Harapan Utama.

Asal tahu saja, PT Adaro Indonesia merupa-kan perusahaan pertambangan terbesar dalam Adaro Group. Salah satu pemegang PKP2B generasi pertama itu menjalankan operasi pertambangan batubara di Kalimantan Selatan dan Kalimantan Tengah, dengan luas konsesi mencapai 31.380 ha.

Adapun, permohonan kelanjutan operasi kontrak/perjanjian bisa diajukan kepada Menteri ESDM paling cepat 5 tahun dan paling lambat satu tahun sebelum KK dan PKP2B berakhir.

Sebagai informasi, perusahaan yang kontrak-nya berakhir dalam waktu dekat adalah PT Arutmin Indonesia. Arutmin memiliki wilayah tambang dengan luas 57.107 ha, dan kontrak-nya akan berakhir pada 1 November 2020.

Selain Arutmin dan Adaro, ada lima PKP2B generasi pertama lain yang akan habis kontrak. Yakni PT Kendilo Coal Indonesia (1.869 ha/13 September 2021), PT Kaltim Prima Coal (84.938 ha/31 Desember 2021), PT Multi Harapan Utama (39.972 ha/ 1 April 2022), PT Kideco Jaya Agung (47.500 ha/13 Maret 2023), dan PT Berau Coal (108.009/ 26 April 2025).

Hingga akhir Agustus 2020, baru ada 3 PKP2B yang mengajukan perpanjangan izin. Yakni PT Arutmin Indonesia, PT Kaltim Prima Coal dan PT Multi Harapan Utama.

Already Ratcheting 11 Percent, This Is The Prospect of Nickel

Price In The Rest of 2020 Lorenzo Anugrah Mahardhika

THE ECONOMIC recovery in China and the

prospect of rising demand will be positive catalysts driving up nickel prices in the remainder of 2020.

Sudah Melesat 11 Persen, Ini Prospek Harga Nikel di Sisa

Tahun 2020 Lorenzo Anugrah Mahardhika

PEMULIHAN ekonomi di China dan

prospek kenaikan permintaan akan men-jadi katalis positif yang mengerek naik harga nikel di sisa tahun 2020.

Daily News Update Page 20

Based on data from Bloomberg on Tuesday (20/10/2020), nickel prices were observed to have increased 0.2 percent to US$ 15,684 per ton on the London Metal Exchange. Meanwhile, on a year to date (ytd) basis, nickel prices have shot up 11.83 percent.

Director of TRFX Garuda Berjangka Ibrahim said nickel prices still have the opportunity to strengthen in the remainder of 2020. This is supported by the ongoing economic recovery in China. The release of economic data on Monday showed the Chinese government's efforts to suppress positive cases of the corona virus had proven effective.

"China's positive economic performance in the third quarter of 2020 indicates a sustainable recovery," he said when contacted on Tuesday (20/10/2020).

China's recovery from the negative effects of the pandemic also means the continuation of construction of infra-structure projects that had been delayed. The project work will have an impact on increasing demand for nickel.

The work on the project is also coupled with the plan of Chinese President Xi Jinping, who wants to make Shenzhen the world's technology center. With a massive development plan, the demand for nickel will skyrocket going forward.

"This infrastructure development will also be accelerated, especially for projects in 2020 which are delayed," he added.

In addition, fiscal stimulus sentiment from the United States will also play a role in this commodity price movement. He explained that if the stimulus package was successfully passed, this would have an impact on increasing the circulation of money.

Berdasarkan data dari Bloomberg pada Selasa (20/10/2020), harga nikel ter-

pantau naik 0,2 persen ke US$15.684 per ton pada London Metal Exchange. Sedang-

kan, secara year to date (ytd), harga nikel telah melesat 11,83 persen.

Direktur TRFX Garuda Berjangka Ibrahim mengatakan, harga nikel masih berpeluang

menguat di sisa tahun 2020. Hal tersebut didukung oleh pemulihan ekonomi di

China yang terus berjalan. Rilis data per-ekonomian pada Senin kemarin menunjuk-

kan upaya pemerintah China menekan kasus positif virus corona terbukti ampuh.

“Kinerja ekonomi China yang positif pada kuartal III/2020 mengindikasikan pemu-

lihan yang berkelanjutan,” katanya saat dihubungi pada Selasa (20/10/2020).

Pulihnya China dari dampak negatif pandemi juga berarti kelanjutan pem-

bangunan proyek-proyek infrastruktur yang sempat tertunda. Pengerjaan proyek

tersebut akan berdampak pada kenaikan permintaan terhadap nikel.

Pengerjaan proyek tersebut juga ditambah dengan rencana Presiden China, Xi Jinping

yang hendak menjadikan Shenzhen sebagai pusat teknologi dunia. Dengan rencana

pembagunan yang masif , permintaan terhadap nikel pun akan meroket ke

depannya.

“Pembangunan infrastruktur ini juga akan

dikebut, terutama untuk proyek-proyek di tahun 2020 yang tertunda,” imbuhnya.

Selain itu, sentimen stimulus fiskal dari Amerika Serikat juga akan berperan

terhadap pergerakan harga komoditas ini. Ia menjelaskan, apabila paket stimulus

berhasil disahkan, hal tersebut akan ber-dampak pada bertambahnya peredaran

uang.

Daily News Update Page 21

This, he continued, would have an impact on the weakening of the dollar index and strengthen commodity values such as nickel as opposed to the US dollar.

Ibrahim continued, the prospect of increasing nickel prices is also being strengthened by the increasing popularity of electric cars. As a raw material for batteries, which are a source of power for electric cars, this will raise nickel demand in the global market.

"Moreover, in the midst of this pandemic, many parties are echoing the plan to develop electric cars. This will make nickel even more sought after," he said.

He added that the negotiations between the UK and the European Union regarding the unfinished separation agreement between the two parties will greatly determine the nickel price movement in the future.

Likewise, Capital Futures analyst Wahyu Laksono said the opportunity to increase nickel prices is still open. He said, in the first quarter of 2020 nickel prices experienced a correction of nearly 20 percent in line with a number of risk off sentiments.

However, in the last two quarters, nickel prices continued to experience double digit increases. This increase was also experienced by other basic metal commodities such as copper.

One of the factors supporting the nickel price rally is the increasing demand for nickel-based batteries and stainless steel. The demand for batteries is also expected to increase along with the development of electric cars.

In addition, the policies to be taken by the US central bank, The Federal Reserve (The Fed) will also determine nickel price movements.

Hal tersebut, lanjutnya, akan berimbas pada pelemahan indeks dolar dan menguatkan nilai-nilai komoditas seperti nikel sebagai lawan dari dolar AS.

Ibrahim melanjutkan, prospek kenaikan harga nikel juga kian diperkuat dengan popularitas mobil listrik yang semakin baik. Sebagai bahan baku baterai yang merupakan sumber tenaga mobil listrik, hal ini akan mengerek permintaan nikel di pasar global.

“Apalagi, di tengah pandemi ini banyak pihak yang menggaungkan rencana pengembangan mobil listrik. Ini akan membuat nikel semakin dicari,” katanya.

Ia menambahkan, negosiasi antara Inggris dengan Uni Eropa terkait perjanjian perpisahan kedua pihak yang belum rampung akan sangat menentukan per-gerakan harga nikel dalam beberapa waktu ke depan.

Senada, Analis Capital Futures Wahyu Laksono mengatakan peluang kenaikan harga nikel masih terbuka. Ia mengatakan, pada kuartal I/2020 harga nikel meng-alami koreksi mendekati 20 persen seiring dengan sejumlah sentimen risk off.

Meski demikian, dalam dua kuartal terakhir, harga nikel terus mengalami kenaikan double digit. Kenaikan ini pun juga dialami oleh komoditas logam dasar lainnya seperti tembaga.

Salah satu faktor pendukung reli harga nikel adalah kenaikan permintaan baterai dan baja tahan karat yang berbahan dasar nikel. Permintaan baterai juga diper-kirakan akan semakin tinggi seiring dengan pengembangan mobil listrik yang dilakukan.

Selain itu, kebijakan-kebijakan yang akan diambil oleh bank sentral AS, The Federal Reserve (The Fed) juga akan menentukan pergerakan harga nikel.

Daily News Update Page 22

Wahyu explained that currently the policies taken by the Fed are still supporting the increase in commodity prices. The Fed uses an average inflation target that is obtained to exceed 2 percent without having to change its policy.

This policy, said Wahyu, was very accommodating and could trigger a weakening of the US dollar and strengthen its counterparties to the US dollar such as other currencies and commodities such as nickel. These conditions lead to a scenario that supports the reflationary trade.

"In the short term, nickel prices can still be corrected or fluctuated. However, in the medium and long term, nickel is still one of the leading and promising commodities," he said.

Wahyu added that the issue of the corona virus pandemic is still a threat to metal commodity prices. However, according to him, certainty in the market is currently improving in line with the trend of prices for other metal commodities such as copper.

"A good copper price trend will be the main locomotive for basic metal commodities, particularly nickel," he explained.

Meanwhile, Mirae Asset Sekuritas Indonesia analyst Andy Wibowo Gunawan said in his research that nickel price is likely to increase in the future. This happened in line with the decrease in the supply of these commodities.

In his report, he estimates that the amount of nickel inventories in LME inventories will be lower this week. The total nickel inventory last week increased from 236,070 tonnes to 237,390 tonnes.

Sentiment on the increase in nickel prices was also bolstered by the decline in LME's copper stocks. This, he continued,...

Wahyu menjelaskan, saat ini kebijakan yang diambil oleh The Fed masih men-dukung kenaikan harga komoditas. The Fed menggunakan target rata-rata inflasi yang diperoleh dapat melewati 2 persen tanpa harus mengubah kebijakannya.

Kebijakan tersebut, ujar Wahyu, sangat akomodatif dan dapat memicu pelemahan dolar AS serta menguatkan lawan dolar AS seperti mata uang lain dan komoditas seperti nikel. Kondisi-kondisi tersebut mengarah kepada skenario yang men-dukung terjadinya reflationary trade.

“Dalam jangka pendek, harga nikel masih bisa koreksi atau fluktuasi. Namun dalam jangka menengah dan panjang, nikel masih menjadi salah satu komdoitas yang ter-depan dan menjanjikan,” ujarnya.

Wahyu menambahkan, isu pandemi virus corona masih menjadi ancaman untuk harga komoditas logam. Namun, menurut-nya saat ini kepastian di pasar kian mem-baik seiring dengan tren harga komoditas logam lain seperti tembaga.

“Tren harga tembaga yang bagus akan jadi lokomotif utama bagi komoditas logam dasar, khususnya nikel,” paparnya.

Sementara itu, Analis Mirae Asset Sekuritas Indonesia Andy Wibowo Gunawan dalam risetnya menyebutkan, harga nikel kemungkinan akan mengalami kenaikan dalam beberapa waktu ke depan. Hal ini terjadi seiring dengan penurunan jumlah persediaan komoditas tersebut.

Dalam laporannya, ia memperkirakan jumlah persediaan nikel pada inventori LME akan lebih renddah pada pekan ini. Adapun total persediaan nikel pada minggu lalu naik dari 236.070 ton menjadi 237.390 ton.

Sentimen kenaikan harga nikel juga di-topang oleh turunnya jumlah persediaan tembaga milik LME. Hal tersebut, lanjut-nya...

Daily News Update Page 23

This, he continued, would create an upside risk for global nickel prices because they are closely related to the prices of other metal commodities such as copper.

Andy continued, another catalyst that will have a positive impact on nickel prices is imports made by China. Data on China's copper imports showed an increase of 8.1 percent month-to-month to 722,450 tons. This increase is considered to have a positive impact on nickel price movements.

"With a number of positive catalysts, nickel prices in the global market are expected to attract market players," he said. Editor:

Aprianto Cahyo Nugroho

Hal tersebut, lanjutnya akan memunculkan upside risk bagi harga nikel global karena berkaitan erat dengan harga komoditas logam lain seperti tembaga.

Andy melanjutkan, katalis lain yang akan memberikan dampak positif bagi harga nikel adalah impor yang dilakukan China. Data impor tembaga China menunjukkan adanya kenaikan 8,1 persen secara month-to-month menjadi 722.450 ton. Kenaikan ini dinilai akan berdampak positif bagi pergerakan harga nikel.

“Dengan sejumlah katalis positif, harga nikel di pasar global diperkirakan akan menarik pelaku pasar,” ujarnya. Editor : Aprianto Cahyo Nugroho

News of China Boycott Australia, Coal Prices Reverse

Direction Tirta Citradi, CNBC Indonesia

NEWCASTLE coal futures prices were

finally cut after 4 days in a row closed with gains.

However, the price difference between Australian Newcastle thermal coal and Chinese domestic coal is still very wide.

In yesterday's trade, Tuesday (20/10/ 2020), the price of coal for active contracts closed down 0.77% to US$ 57.7/ton. The day before, coal prices closed at US$ 58.15/ton.

China's domestic coal prices continued their upward momentum last week. The bench-mark price for Qinhuangdao 5500kcal FOB NAR was up 1.3% and was pegged at RMB 620/ton on Friday last week.

Kabar China Boikot Australia, Harga Batu Bara Balik Arah

Tirta Citradi, CNBC Indonesia

HARGA batu bara berjangka Newcastle

akhirnya terpangkas juga setelah selama 4 hari beruntun ditutup dengan penguatan.

Namun selisih antara harga batu bara

termal Australia Newcastle dengan batu bara domestik China masih sangat lebar.

Pada perdagangan kemarin, Selasa (20/ 10/2020) harga batu bara untuk kontrak

yang aktif ditransaksikan ditutup melemah 0,77% ke US$ 57,7/ton. Sehari sebelumnya

harga batu bara ditutup di US$ 58,15/ton.

Harga batubara domestik China melanjut-kan momentum kenaikannya minggu lalu.

Harga patokan Qinhuangdao 5500kcal FOB NAR naik 1,3% dan dipatok di RMB 620/

ton pada hari Jumat pekan lalu.

Daily News Update Page 24

Current prices have far exceeded the upper limit of the 'green zone' in the range of RMB 500 - RMB 570 per tonne. The green zone is an informal price target set by the authorities which aims to ensure the profitability of domestic coal producers as well as maintain the margins of the electricity producer.

Chinese authorities are likely to push for an increase in domestic supply to reduce high prices, although easing import controls is possible if prices remain high. This has the potential to raise the price of imported seaborne coal.

However, the news of China boycotting coal imports from Australia is still looming. Coal producer BHP reported that their coal cargoes had to be diverted to alternative markets.

At the same time, based on Refinitiv data, China's coal flow imports in September fell 38% from 30.3 million tonnes last year to 18.7 million tonnes as reported by the General Administration of China Customs on October 13.

Coal imports in September were 9.62% or 1.99 million tons lower than in August. This decline in imports is a direct reflection of China's coal import restric-tions which refer to the quota system.

According to Reuters, for many regions/ ports, quotas have approached their annual limit with a fraction of the calendar year remaining, impeding the flow of imported coal.

However, at the same time, China is actually also experiencing problems due to tight domestic supply which has caused its coal prices to soar. Based on data from China's National Bureau of Statistics, China's crude coal production fell 0.9% (yoy) to 331.07 million tonnes in September.

Harga sekarang sudah jauh melampaui batas atas 'zona hijau' di rentang RMB 500 - RMB 570 per ton. Zona hijau merupakan sasaran harga informal yang ditetapkan oleh pihak berwenang yang bertujuan untuk memastikan profitabilitas produsen batu bara domestik serta menjaga margin produsen listrik.

Otoritas China kemungkinan akan men-dorong peningkatan pasokan domestik untuk mengurangi harga tinggi, meskipun pelonggaran kontrol impor mungkin terjadi jika harga tetap tinggi. Hal ini berpotensi untuk mengerek naik harga batu bara impor lintas laut (seaborne).

Namun kabar China yang memboikot impor batu bara dari Australia masih membayangi. Produsen batu bara BHP melaporkan bahwa kargo batu bara mereka harus dialihkan ke pasar alternatif.

Di saat yang sama, berdasarkan data Refinitiv coal flow impor batu bara China pada September merosot 38% dari 30,3 juta ton tahun lalu menjadi 18,7 juta ton sebagai-mana dilaporkan oleh Administrasi Umum Kepabeanan China pada 13 Oktober.

Impor batu bara bulan September 9,62% atau 1,99 juta ton lebih rendah dibanding-kan bulan Agustus. Penurunan impor ini merupakan cerminan langsung dari pem-batasan impor batu bara China yang mengacu pada sistem kuota.

Melansir Reuters, untuk banyak daerah/ pelabuhan, kuota telah mendekati batas tahunan mereka dengan sebagian kecil dari tahun kalender tersisa, yang berdampak pada terhambatnya arus masuk batu bara impor.

Namun di saat yang sama sebenarnya China juga mengalami permasalahan karena ketat-nya pasokan domestik yang membuat harga batubaranya melambung. Berdasarkan data Biro Statistik Nasional China, produksi batu bara mentah China turun 0,9% (yoy) menjadi 331,07 juta ton pada September.

Daily News Update Page 25

However, production increased 2% from 325.8 million tonnes in August. This

increase occurred as several production bases began taking steps to increase

production and ensure winter supplies amid the cold weather in northern China.

In the first nine months of the calendar

year, China produced a total of 2.79 billion tonnes of raw coal, down 0.1% from last

year but stable from January-August.

The lack of growth in coal production compared to the moderate growth in

Chinese economic activity in recent months helps explain why China's

domestic coal prices have shot above the green zone. CNBC INDONESIA RESEARCH TEAM

(twg/twg)

Namun, produksi meningkat 2% dari 325,8 juta ton pada Agustus. Peningkatan ini terjadi karena beberapa basis produksi mulai mengambil langkah-langkah untuk meningkatkan produksi dan memastikan pasokan musim dingin di tengah cuaca dingin di China Utara.

Dalam sembilan bulan pertama tahun kalender, China memproduksi total 2,79 miliar ton batu bara mentah, turun 0,1% dari tahun

lalu tetapi stabil dari Januari-Agustus.

Kurangnya pertumbuhan dalam produksi batu bara dibandingkan dengan pertum-buhan moderat dalam aktivitas ekonomi China dalam beberapa bulan terakhir membantu menjelaskan mengapa harga batu bara domestik China melesat di atas zona hijau. TIM RISET CNBC INDONESIA (twg/twg)

5th joint working group meeting on coal between India, Indonesia on Nov 5

NEW Delhi [India], October 20 (ANI): India will host 5th Joint Working Group (JWG) on coal

with Indonesia and the meeting will be on November 5 through video conference.

The meeting will be co-chaired from the Indian side by Vinov Kumar Tiwari, Additional

Secretary, Ministry of Coal and by Dr. Ir. Ridwan Djamaluddin, Director General of Mineral

and Coal, Ministry of Energy and Mineral Resources from the Indonesian side.

According to an official release, the meeting will deliberate on recent updates related to

Indian coal policy reforms, coking coal exploration and commercial coal mining in India and

potential of business cooperation on coal post COVID-19.

The release said that a B2B session will bring together industries from both the sides to

discuss the issues impacting business opportunities in the backdrop of the regulatory

framework. This will also explore more areas of business opportunities in the coal sector. The

deliberations will guide the coal business between the two countries. (ANI)

Daily News Update Page 26

Nickel export squeeze could lead to some more upside By Rajan Dhall

ISSUES due to the COVID-19 pandemic are set to hit nickel exports from Indonesia. It has

been said exports are expected to decline by 7.4% to 2,195 thousand tonnes (kt) in 2020. According to GlobalData, Indonesia’s mine production is expected to fall to 680kt in 2020, some 15%. This is compared with 800kt in 2019, owing to the advancement of the exports ban from 2022 to 2020.

A Senior Mining Analyst at GlobalData, Vinneth Bajaj commented “Indonesian nickel mining companies without integrated nickel pig iron (NPI) operations have been facing difficulties in selling output to domestic smelters at low prices alongside inadequate capacity. Therefore, domestic miners have been either halting or curbing their output in the first three quarters of the year and this is expected to continue over the rest of 2020.”.

Mine production in the Philippines is expected to fall by around 9.3%, down to 293.4kt in 2020, as companies struggle to keep operating while combating the dual challenges of COVID-19 and weather disruptions. We have already seen the likes of Global Ferronickel Holdings Inc. suspend operations in the Surigao del Norte province, where most of the country’s mines are located.

This could present an opportunity for miners who mine outside the area. For example firms like Vale, BHP, Glencore and Norilsk Nickel. Some of which do mine in Indonesia and the Philippines but we could see a change of tactics if issues become worse in the region.

Looking at the daily nickel futures chart we can see this squeeze in exports is having a big effect on the price. The nickel price is about to take out the previous wave high of $1158.4 and could extend to the upside.

Copper price surges to 28-month high Frik Els

THE COPPER price was trading at its highest since June 2018 on Tuesday on hopes of a US

stimulus package, worries about supply from top producer Chile and robust Chinese economic growth.

On the Comex market, copper for delivery in December jumped 2.7% to $3.1705 a pound ($6,990 a tonne) in brisk trade, with more than 1.8 billion pounds of the most active contract traded by 1pm in New York.

Tuesday’s trading brings the bellwether metal’s recovery since the height of the covid-19 induced sell-off, which sent the copper price crashing to below $2.00 a pound, to 63%.

Daily News Update Page 27

US House Speaker Nancy Pelosi said she believed stimulus legislation could be pushed through before the US Presidential election in two weeks’ time.

“It’s Pelosi’s deadline today, so no (trading) position is the best position. I doubt there’ll be deal and the market will correct lower. There’s still a risk of U.S. and European (virus) cases spreading,” a Singapore-based metals trader told Reuters.

“Copper can still hold somewhat, with fundamental support from the Candelaria …and Codelco issues,” the trader added.

Workers at Chile’s state-run Codelco, the world’s largest copper producer, took to the streets on Monday to reject layoffs announced by the company during the pandemic.

Lundin Mining suspended operations at its Candelaria copper mine Tuesday after two of its unions called on their workers to begin strikes.

Industrious China

China consumes more industrial metals than the rest of the world combined and data released Tuesday showed the country’s refined copper output rose 10.3% year-on-year in September.

Daily average output of copper during the month was 30,300 tonnes per day, matching the November 2019 record set before the pandemic took hold.

Smelters’ average daily production zinc and lead has also recovered to the record level attained at the end of 2019.

China’s economy continued its rapid rebound in the third quarter, with activity across a range of sectors. GDP expansion accelerated to 4.9% during Q3, up from 0.7% in the quarter to end-June.

Metal intensive industries showed the strongest growth, with a further pick-up in industry and construction last quarter, from 4.7% year on year to 6%.

In a note, Capital Economics said monthly data show momentum is building going into the final quarter of 2020.

Industrial production came in way above expectations, rising from 5.6% in August to 6.9% in September compared to the same months last year. Fixed investment expanded 0.8% year-to-date, implying that capital spending grew 7.6% in September.

Julian Evans-Pritchard, Capital Economics Senior China Economist, said the economy is becoming less reliant on investment-led stimulus and that growth will continue to pick-up in the near-term:

“Fiscal policy is set to remain supportive until at least the start of next year, which should keep activity in industry and construction strong. Meanwhile, tightening labour market conditions and improving consumer confidence mean that the recovery in consumption and services activity probably has further to run.”

Daily News Update Page 28

Global nickel production to decline by 7.4 percent in 2020 GlobalData report says temporary suspension of mining activities and advancement of

Indonesia’s export ban are significant contributors towards decline Scott Birch

GLOBAL nickel production is expected to decline by 7.4 percent to 2,195 thousand tonnes

(kt) in 2020, according to a GlobalData report.

The temporary suspensions of mines and mining activities due to the COVID-19 pandemic, along with the advancement of Indonesia’s export ban, are expected to be significant contributors towards this decline, the report adds.

Indonesia’s mine production is expected to fall to 680kt in 2020 – down by 15 percent compared to the 800kt registered in 2019. This is due to the advancement of the exports ban from 2022 to 2020, it says. The largest nickel ore producing country in the world, Indonesia has banned exports of the commodity since January 2020, in order to push miners to develop smelters and refine the metal ore domestically, so that they can export higher-value products.

“Indonesian nickel mining companies without integrated nickel pig iron (NPI) operations have been facing difficulties in selling output to domestic smelters at low prices alongside inadequate capacity. Therefore, domestic miners have been either halting or curbing their output in the first three quarters of the year and this is expected to continue over the rest of 2020," explains Vinneth Bajaj, senior mining analyst at GlobalData.

Mine production in the Philippines is forecasted to fall by 9.3 percent, down to 293kt in 2020, the report says, pointing out that companies are struggling to keep operating while combating the dual challenges of COVID-19 and weather disruptions.

On April 1, 2020, Nickel Asia Corp, and Global Ferronickel Holdings suspended operations in the Surigao del Norte province, where most of the mines in the Philippines are located. This was due to the COVID-19 pandemic. However, by mid-May, operations were resumed, albeit with stringent safety protocols in place.

“In contrast, despite the challenges caused by the COVID-19 pandemic, production in New Caledonia and Brazil is expected to collectively increase by 6.9 percent in 2020,” says Bajaj.

“The increase in production will be supported by the resumption of commercial production at the Santa Rita mine in Brazil, which was previously halted in 2015 due to low nickel prices. This will be supported by higher production from Vale’s Goro nickel project in New Caledonia,” he adds.

Looking ahead, global nickel mine production over the forecast period (2021–2024) is expected to recover at a compound annual growth rate (CAGR) of 4.2 percent, to reach 2,638kt in 2024, the report adds.

Indonesia, Australia, the Philippines and Canada will be the key contributors to this growth. Combined production in these countries is expected to increase from an estimated 1,415.7kt in 2021 to 1,638.9kt in 2024.

Daily News Update Page 29

Projects which most likely to commence operations during the forecast period include Indonesia’s East Halmahera (2021) and Aquila Nickel projects (2023) and the Kingash project

in Russia (2024), the report concludes.

Freeport exec elected International Copper Association chair By: Creamer Media Reporter

STEVE Higgins, senior VP and chief administrative officer of US-based Freeport-McMoRan,

has been elected chairperson of the International Copper Association (ICA) and chairperson of the LME’s copper committee.

ICA is a nonprofit organisation with 35 members, including Freeport-McMoRan, that brings

together the copper industry and its partners to support markets for copper and to make a positive contribution to the United Nations Sustainable Development Goals.

The LME copper committee is an advisory committee to The London Metal Exchange with the primary purpose to maintain oversight of the copper product specifications and to ensure

that the contract represents the industry’s needs.

“We recognise Steve for his expanded roles in these important organisations supporting the global copper industry. He is a valued member of our Freeport leadership team. With his

wealth of experience, Steve is highly respected within our company, by our customers and broadly in the global copper industry,” said Freeport McMoRan president and CEO Richard

Adkerson.

New Century drives up zinc production as prices rise Salomae Haselgrove

NEW Century Resources plans to boost zinc production performance at the Century mine in

Queensland by 40 per cent.

The company is aiming to achieve consistent production performances of up to 12 million

tonnes a year at 50–54 per cent recovery, which is up to a 40 per cent increase from the September quarterly average of around 10 million tonnes a year at 45 per cent recovery.

New Century managing director Patrick Walta said New Century would continue its focus on

increasing metal production while lowering unit costs to drive growth in the December quarter and beyond.

Daily News Update Page 30

“Macro-economic conditions for the industry continue to improve, providing strong tailwinds for New Century, with the zinc price rising above $US1.13 ($1.60) per pound for the first time since the onset of COVID-19,” Walta said.

“In addition, spot treatment charges have plummeted to $US110 per tonne, their lowest level since Century (zinc mine) operations restarted.”

The Century mine, which was shut three years ago for closure and has since been re-established as a top 10 global zinc producer, has experienced strong post-COVID-19 demand from China.

Walta said there was still further opportunity to come yet from improved zinc market conditions.

“The company sees opportunity for further improvement in the zinc price, with demand/ consumption set to return in countries other than China as a result of infrastructure-focussed stimulus packages in response to the COVID-19 economic downturn,” he said.

New Century’s technical services team continued optimisation studies over its South Block, Silver King and East Fault Block deposits, with strong in-situ mine plans, metal production profiles and projected operation costs.

Once these studies are complete, the company will make a decision to mine in 2021, integrating the mineral resources of these deposits into its current life-of-mine production profile, providing the opportunity for an extended Century mine life.

During the September quarter, New Century also prepared for the upcoming wet season in north Queensland, introducing various new water pumping initiatives to ensure minimal downtime.

Kinross Gold sees annual 10-year gold production at 2.5 million gold equivalent ounces

By Neils Christensen

KINROSS Gold’s organic growth potential will help it maintain healthy gold production for

the next decade, the company said in a press release Tuesday.

In an update for its long-term production guideline, Kinross said that it expects to produce an average of approximately 2.5 million gold equivalent ounces per year from 2020 to 2029.

The company also reiterated that it expects production to increase 20% from 2021 – 2023, with an estimated output of 2.4 million gold equivalent ounces in 2021, 2.7 gold equivalent ounces in 2022, and 2.9 million gold equivalent ounces in 2023.

Kinross also said that it expects costs of sales per ounce sold to drop during the next three years.

Daily News Update Page 31

“Our growing production profile and declining cost trend over the next three years are

expected to drive strong free cash flow performance, placing Kinross in an excellent position

to generate substantial value for our shareholders,” said Paul Rollinson, president and CEO of

Kinross in the press release. “Furthermore, our positive long-term production outlook, with

estimated average annual production of 2.5 million Au eq. oz. to 2029, provides a solid

foundation to continue building value into the future.”

The comments and 10-year outlook comes three days after Canadian newspaper the Globe

and Mail reported that Kinross was looking to sell its North and South American mines to

focus on its production in Russia and South Africa.

The company is also looking at moving its primary stock listing to the London Stock

Exchange.

Quoting three unnamed sources, the article said that the management team expects that the

sale and relisting would make the company more valuable.

RANKED: Top 10 lowest cost copper mines MINING.com Editor

THE ALL-in sustaining cost (AISC) metric has been widely used in the mining industry since

2013 for its comprehensive and transparent look at an operation’s costs.

According to data from Miningintelligence, Lundin Mining’s Chapada mine was the clear

winner among global copper operations in AISC at $1,411 per tonne during the second

quarter of this year.

In second and third place are two mines owned by First Quantum Minerals – Guelb Moghrein

in Mauritania and Las Cruces in Spain – with AISC of $1,918/t and $2,050/t respectively,

while the Vancouver company’s Zambian operation also cracks the top 10.

The fourth place is shared by the Antas mine in Brazil owned by Oz Minerals and Atico

Mining’s El Roble mine in Colombia, both operating at all in costs below $3,000/t during Q2

2020.

A majority of copper operations in the top 10 use truck & shovel technology, with the

exception of El Roble (drift & fill, cut & fill), Carrapateena (sublevel caving), Jabal Sayid (long

hold stoping) and Cozamin (long hole stoping, cut & fill).

Daily News Update Page 32