IMA-Daily Update Page 1

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There is Corona Pandemic, Revision of RKAB of Mining Companies will be More Varied Ada pandemi corona, revisi RKAB perusahaan tambang bakal lebih bervariasi Coal Domestic Needs are Claimed As Targeted Kebutuhan Domestik Batu Bara Diklaim Sesuai target Darma Henwa's Revenue Reaches US$ 344 Million Pendapatan Darma Henwa Capai US$ 344 Juta Not Interested in RKAB Revision, ADRO Still Focuses on Pursuing Targets According to Guidelines in 2020 Belum tertarik revisi RKAB, ADRO masih fokus kejar target sesuai panduan di 2020 The Impact of Covid-19, Antam's Rating Prospects Become Negative Dampak Covid-19, Prospek Peringkat Antam Jadi Negatif Facing new normal, Adaro Energy (ADRO) still maintains operational guidelines Hadapi new normal, Adaro Energy (ADRO) masih pertahankan panduan operasional Government Prepares Scheme to Boost Nickel Downstream Pemerintah Siapkan Skema Menggenjot Hilirisasi Nikel Toba Bara Sejahtera's Revenue Grew 53.21% Pendapatan Toba Bara Sejahtera Tumbuh 53,21% This is Indonesia's Challenge in Boosting Minerba Down-streaming Ini Tantangan RI Genjot Hilirisasi Minerba Markets and Prices are Uncertain, Coal Producers Remodel Work Plans Pasar dan harga kian tak menentu, produsen batubara rombak rencana kerja Coal Fails to Rise to US$ 60, This is the Sentiment That Triggers

Kontan Bisnis Investor Daily Kontan Dunia Energi Kontan Bisnis Neraca DetikFinance Kontan CNBC Indonesia

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Batu Bara Gagal Naik ke US$ 60, Ini Sentimen yang Jadi Pemicu Indonesia nickel ore export ban to remain -mining ministry director China's Shazhou Electric cancels up to 225,000 mt low-CV Indonesian coal Iron ore surges past $100 mark Coal India output falls 11% to 41 MT in May, coal offtake up at 39.95 MT Mali’s industrial gold production expected to slump in 2020 Glencore's Rolleston stops coal production in Australia for two weeks: sources Seven things you should know about coal mining in 2020

Reuters S&P Global Platts Aus Mining Review Business Standard Mining.com S&P Global Platts Mining Technology

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There is Corona Pandemic, Revision of RKAB of Mining

Companies will be More Varied Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

IN THE MIDST of the corona pandemic (covid-19) which affected the market and mining commodity prices, this year's revised Work Plan and Budget (RKAB) is predicted to be more varied. Unlike previous years, it seems that not only have mining companies proposed additions, but there will also be those who ask for a reduction in production quotas.

ESDM Ministry's Mineral and Coal Program Development Director, Muhammad Wafid Agung, said that currently there are several companies that have proposed a revised RKAB. However, he still could not disclose details of the number of companies that submitted, or requested revisions.

What is clear, said Wafid, the submission will be processed in the Directorate of Development and Business, both in coal and minerals. "We can only copy, there are some who have submitted. Submission and approval from (Directorate) of coal and minerals," Wafid told Kontan.co.id, Wed-nesday (3/6).

The proposed revision of the RKAB seems to come from a coal company. Because, according to the Director of Mineral Development and Business Yunus Saefulhak, until now his party has still not received the proposed revision of the RKAB.

Yunus stressed that until now the production target in mineral commodities had not changed. He also claimed that...

Ada pandemi corona, revisi RKAB perusahaan tambang

bakal lebih bervariasi Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

DI TENGAH pandemi corona (covid-19) yang berimbas pada pasar dan harga komo-ditas tambang, revisi Rencana Kerja dan Anggaran Biaya (RKAB) tahun ini diprediksi bakal lebih bervariasi. Tak seperti tahun-tahun sebelumnya, tampaknya tak hanya ada perusahaan tambang yang mengajukan penambahan, tapi juga akan ada yang meminta pengurangan kuota produksi.

Direktur Bina Program Mineral dan Batubara (Minerba) Kementerian ESDM Muhammad Wafid Agung mengatakan, saat ini sudah ada beberapa perusahaan yang mengajukan revisi RKAB. Namun, dirinya masih belum bisa membeberkan detail jumlah perusahaan yang mengajukan, maupun revisi yang dimintakan.

Yang jelas, kata Wafid, pengajuan tersebut akan diproses di Direktorat Pembinaan dan Pengusahaan, baik di batubara maupun mineral. "Kami hanya dapat tembusannya, ada beberapa yang sudah mengajukan. Pengajuan dan persetujuan dari (Direktorat) batubara dan mineral," kata Wafid kepada Kontan.co.id, Rabu (3/6).

Pengajuan revisi RKAB itu tampaknya datang dari perusahaan batubara. Sebab, menurut Direktur Pembinaan dan Peng-usahaan Mineral Yunus Saefulhak, hingga saat ini pihaknya masih belum menerima pengajuan revisi RKAB.

Yunus menekankan bahwa hingga saat ini target produksi di komoditas mineral masih belum ada perubahan. Dia pun mengklaim...

IMA-Daily Update Page 4

He also claimed that although there was a co-19 pandemic, operational activities such as mineral production have continued to go according to plan and nothing has stopped.

"In fact no one has submitted an application. Production is still okay, the target has not changed. Production is running, because there has been no official report from the company (which stopped production)," Yunus said.

According to him, mineral commodities are still quite promising, because the domestic and global markets can still absorb the products produced. Even so, Yunus did not dismiss that from the operational side of the project, a number of companies encountered obstacles.

The most obvious, two of them are PT Freeport Indonesia and PT Amman Mineral Nusa Tenggara, which proposed a project extension deadline of around one year from the initial target. According to Yunus, the request is still being evaluated.

Overall, an evaluation of the smelter project can only be seen after July, after the six-month progress verification period. "So there has been no decision. The cons-truction of the smelter is hampered, but we will see the results of the verification, we will update it after July," Yunus said.

Contacted separately, Chairman of the Indonesia Mining Institute (IMI) Irwandy Arief said that the revised RKAB this time would likely vary. With the market and commodity prices still affected by the pandemic, there will be companies that propose increases or decreases in production quotas.

It depends on the strength of the business, production capacity, as well as market considerations of each company. However, Irwandy predicts changes in the number of production volumes will not be much different from the current target.

Dia pun mengklaim meski ada pandemi covid-19, namun sampai sekarang kegiatan operasional seperti produksi mineral, masih tetap berjalan sesuai rencana dan tidak ada yang terhenti.

"Secara faktual belum ada yang mengajukan permohonan. Produksi masih oke, target belum berubah. Produksi berjalan, karena belum ada laporan secara resmi dari per-usahaan (yang menghentikan produksi)," sebut Yunus.

Menurutnya, komoditas mineral pun masih cukup menjanjikan, lantaran pasar domestik maupun global masih bisa menyerap produk yang dihasilkan. Kendati begitu, Yunus tak menampik bahwa dari sisi operasional proyek, sejumlah perusahaan menemui kendala.

Yang paling jelas, dua diantaranya adalah PT Freeport Indonesia dan PT Amman Mineral Nusa Tenggara, yang mengajukan tenggat perpanjangan proyek hingga sekitar satu tahun dari target awal. Menurut Yunus, permintaan tersebut masih dievaluasi.

Secara keseluruhan, evaluasi terkait proyek smelter baru dapat dilihat setelah bulan Juli, yakni selepas periode verifikasi progres enam bulanan. "Jadi belum ada keputusan. Pembangunan smelter terhambat, tapi kita lihat hasil verifikasinya, nanti kita update setelah Juli," ungkap Yunus.

Dihubungi terpisah, Ketua Indonesia Mining Institute (IMI) Irwandy Arief mengatakan bahwa revisi RKAB kali ini tampaknya akan bervariasi. Dengan pasar dan harga komo-ditas yang masih terimbas pandemi, bakal ada perusahaan yang mengajukan penam-bahan, maupun pengurangan kuota produksi.

Hal itu tergantung dari kekuatan bisnis, kapasitas produksi, juga pertimbangan pasar masing-masing perusahaan. Namun, Irwandy memprediksi perubahan jumlah volume produksi tidak akan jauh berbeda dari target saat ini.

IMA-Daily Update Page 5

"There should be more companies that will propose RKAB. There are those who propose a reduction and there are those who ask for additional production," said Irwandy.

For information, the revised RKAB is regulated in Ministerial Regulation (Permen) of Energy and Mineral Resources (ESDM) No. 7 of 2020. In the regulation signed by Minister of ESDM Arifin Tasrif on March 3, 2020, the permit holder company can submit a revised RKAB by submitting a report first quarter period or no later than 31 July in the current year.

The ESDM Ministerial Regulation 7/2020 still stipulates that the revised RKAB is conducted once in the current year. It's just that, in a force majeure, a circumstance that is obstructing or the carrying capacity of the environment, annual RKAB changes can be submitted more than once.

"Seharusnya lebih banyak pedusahaan yang akan mengajukan RKAB. Ada yg meng-ajukan pengurangan dan ada yg minta penambahan produksi," kata Irwandy.

Sebagai informasi, revisi RKAB diatur dalam Peraturan Menteri (Permen) Energi dan Sumber Daya Mineral (ESDM) Nomor 7 Tahun 2020. Dalam beleid yang ditanda-tangani Menteri ESDM Arifin Tasrif pada 3 Maret 2020 itu, perusahaan pemegang izin sudah bisa mengajukan revisi RKAB dengan menyampaikan laporan periode triwulan pertama atau paling lambat 31 Juli di tahun berjalan.

Permen ESDM 7/2020 ini memang masih mengatur bahwa revisi RKAB dilakukan sekali dalam tahun berjalan. Hanya saja, dalam keadaan kahar, keadaan yang meng-halangi atau kondisi daya dukung ling-kungan, perubahan RKAB tahunan dapat diajukan lebih dari sekali.

Coal Domestic Needs are Claimed As Targeted

Yanita Petriella

DOMESTIC demand for coal or domestic market obligaton (DMO) this year is believed to be safe and fulfilled.

Chairman of the Indonesian Mining and Energy Forum (IMEF) Singgih Widagdo said that the electricity consumption that declined has not necessarily been due to the Covid-19 outbreak. According to him, electricity consumption has actually experienced a downward trend since 2018.

"In 2018, PMI, (Purchasing Manager Index) - Manufacturing Index is already below 50 percent. Coincidentally with the impact of Covid-19,...

Kebutuhan Domestik Batu Bara Diklaim Sesuai target

Yanita Petriella

KEBUTUHAN domestik batu bara atau domestic market obligaton (DMO) sepanjang tahun ini diyakini aman dan terpenuhi.

Ketua Umum Indonesian Mining and Energy Forum (IMEF) Singgih Widagdo mengatakan konsumsi listrik yang meng-alami penurunan tidak serta merta karena adanya wabah Covid-19. Menurut-nya, konsumsi listrik sejatinya telah mengalami tren penurunan sejak 2018.

"Di 2018, PMI, (Purchasing Manager Index) - Manufacturing Index sudah dibawah 50 persen. Bersamaan hantaman Covid-19,...

IMA-Daily Update Page 6

Coincidentally with the impact of Covid-19, the industry is becoming more depressed and electricity growth is increasingly depressed," he told Bisnis on Wednesday (06/03/2020).

Despite the decline in electricity consumption, the fulfillment of coal DMOs is believed to be safe and certainly fulfilled as targeted by 155 million tons.

That is because the DMO needs are far below the total national production. In addition, companies must give priority to domestic needs first.

Singgih said that the Ministry of ESDM also imposed fines to meet the domestic needs of coal. For DMO penalties, the Ministry of ESDM fixes on a basis of quality below 4,200 kcal/kg, between 4,200 kcal/kg - 5,000 kcal/kg and above 5,000 kcal/kg.

"We recommend that the fine is not fixed with quality restrictions such as tabs, but a fine tiering model," he said.

According to him, the current application of fines is divided into categories of low

rank, medium rank, and high rank. Whereas in the coal market and given the role of technology that is able to absorb any quality of coal, then there is only a difference in quality without mentioning

the rank of coal.

He assessed that for calorie coal, 3,200 kcal/kg (ar), which should even be rewarded for being able to sell non-saleable coal, then the distribution should be as calculated as market conditions entering the range of 200 kcal/kg (ar).

Singgih added the accumulation of compensation should be returned for the benefit of the DMO again.

Bersamaan hantaman Covid-19, menjadi lebih tertekan industrinya dan pertum-buhan listrik semakin tertekan," ujarnya kepada Bisnis, Rabu (3/6/2020).

Meski terjadi penurunan konsumsi listrik, namun pemenuhan DMO batu bara di-yakini aman dan pasti terpenuhi seperti yang ditargetkan 155 juta ton.

Hal itu dikarenakan kebutuhan DMO jauh di bawah total produksi nasional. Selain itu juga perusahaan harus memberikan prioritas pada kebutuhan domestik ter-lebih dahulu.

Singgih menuturkan Kementerian ESDM pun mengenakan denda untuk pemenuhan kebutuhan domestik batu bara. Untuk denda DMO, Kementerian ESDM manganut fix atas dasar kualiatas di bawah 4.200 kcal/kg, diantara 4.200 kcal/kg - 5.000 kcal/kg dan di atas 5.000 kcal/kg.

"Sebaiknya denda bukan fix dengan batasan kualitas seperti tab, tetapi model denda tiering," katanya.

Menurutnya, saat ini penerapan denda terbagi dalam kategori low rank, medium rank, dan high rank. Padahal di dalam pasar batubara dan mengingat peran teknologi yang mampu mengabsorsi apapun kualitas batubara, maka yang ada hanya perbedaan kualitas tanpa meny-ebutkan ranking batubara.

Dia menilai untuk batubara kalori 3.200 kcal/kg (ar), yang bahkan semestinya mendapatkan reward karena mampu men-jual non-saleable coal, maka sebaiknya pembagian seperti perhitungan kondisi pasar yang masuk di wilayah range 200 kcal/kg (ar).

Singgih menambahkan akumulasi dari kompensasi semestinya dikembalikan untuk kepentingan DMO kembali.

IMA-Daily Update Page 7

He suggested that the accumulation of compensation such as to make a blueprint of the Indonesia Coal Infrastructure Plan (ICIP), temporary coal stockpile so that the context of the DMO on the logistics chain side could be resolved.

"Even for coal with 3000 calories or loading capacity that does not fit into the unloading port, it can be solved, even later

royalties can be paid in the form of inkind or on cash," he said. Editor: Yustinus Andri DP

Dia mengusulkan agar akumulasi kompen-sasi aeperti untuk membuat blueprint Indonesia Coal Infrastructure Plan (ICIP), temporary coal stockpile sehingga konteks DMO pada sisi rantai logistik dapat ter-pecahkan.

"Bahkan untuk batubara kalori 3000an atau yang kapasitas loading-nya tidak pas dengan unloading port dapat dipecahkan bahkan nantinya royalti dapat dibayarkan dalam bentuk inkind maupun on cash," tuturnya. Editor : Yustinus Andri DP

Darma Henwa's Revenue Reaches US$ 344 Million

Muhammad Ghafur Fadillah

PT DARMA Henwa Tbk (DEWA) posted a

revenue increase of 24.64% to US$ 344 million in the first quarter of 2020, compared to the same period last year of US$ 276 million.

The increase affected the current year's profit growth which was attributable to the owners of the parent entity by 47.45% to US$ 3.76 million, compared to the same period the previous year of US$ 2.55 million.

The company management said that the revenue from related parties became the biggest pillar of the company's revenue equivalent to US$ 327, which was sourced from PT Kaltim Prima Coal contributed US$ 236.62 million to PT Arutmin Indonesia amounting to US$ 88.69 million, then PT Dairi Prima Mineral US$ 1.84 million, and PT Citra Palu Minerals worth US$ 174 thousand.

Pendapatan Darma Henwa Capai US$ 344 Juta

Muhammad Ghafur Fadillah

PT DARMA Henwa Tbk (DEWA) mem-

bukukan kenaikan pendapatan sebesar 24,64% menjadi US$ 344 juta hingga kuartal I-2020, dibandingkan periode sama tahun lalu US$ 276 juta.

Peningkatan tersebut berimbas terhadap

pertumbuhan laba tahun berjalan yang dapat diatribusikan kepada pemilik entitas induk sebanyak 47,45% menjadi US$ 3,76 juta, dibandingkan periode sama tahun sebelumnya US$ 2,55 juta.

Manajemen perseroan menyebutkan pendapatan dari pihak berelasi menjadi penopang terbesar pemasukan perseroan setara dengan US$ 327, yaitu bersumber dari PT Kaltim Prima Coal berkontribusi senilai US$ 236,62 juta PT Arutmin Indonesia sebesar US$ 88,69 juta, lalu PT Dairi Prima Mineral sejumlah US$ 1,84 juta, dan PT Citra Palu Minerals senilai US$ 174 ribu.

IMA-Daily Update Page 8

"In addition, the company's pockets were thickened by third party revenues from PT Cakrawala Langit Sejahtera and PT Aneka Tambang (Persero) Tbk (ANTM), which reached US$ 17.30 million," said manage-ment, Tuesday (2/6).

While the cost of goods strengthened reached US$ 344.64 million until the first quarter of 2020, compared to the same period the previous year of US$ 276.09, so the company's gross profit was corrected 13.21% to US$ 20.71 million, compared to the first quarter of last year US$ 23.81 million. That also caused a decrease in the operating profit segment by 0.89% to Rp 11.16 billion.

"Nevertheless the profit for the year attributable to owners of the parent company increased by 47.45% to US$ 3.76 million, compared to the same period last year of US$ 2.55 million," said manage-ment.

Last year, the company recorded assets of US$ 549.51 million, with details of current assets of US$ 204.83 million while non-current assets of US$ 344.68 million.

Corporate Secretary Darma Henwa Mukson Arif Rosyidi said earlier that the increase in assets was driven by increased production from the company's business activities and payment of advances to suppliers in preparation for the upcoming production increase. "Including advances from loans from PT Bank Rakyat Indonesia (Persero) Tbk," he said.

While the total liabilities of the company rose 32.29% to US $ 549 million, Mukson continued the liability was due to third party business debt, which mostly came from the purchase of spare parts, tires, as well as maintenance and other equipment. "The increase in liabilities has no negative impact on the company's financial performance," he concluded.

“Selain itu kantong perseroan dipertebal oleh pendapatan pihak ketiga dari PT Cakrawala Langit Sejahtera dan PT Aneka Tambang (Persero) Tbk (ANTM) yang men-capai US$ 17,30 juta,” ungkap manajemen, Selasa (2/6).

Sedangkan beban pokok menguat mencapai US$ 344,64 juta sampai kuartal I-2020, dibandingkan periode sama tahun sebelum-nya US$ 276,09, sehingga laba bruto per-seroan terkoreksi 13,21% menjadi US$ 20,71 juta, dibandingkan kuartal I tahun lalu US$ 23.81 juta. Hal itu pun menyebabkan penurunan pada segmen laba usaha sebanyak 0,89% menjadi Rp 11,16 miliar.

“Kendati demikian laba tahun berjalan yang dapat diatribusikan kepada pemilik entitas induk meningkat hingga 47,45% menjadi US$ 3,76 juta, dibandingkan periode sama tahun lalu US$ 2,55 juta,” papar manajemen.

Tahun lalu, aset perseroan tercatat sebanyak US$ 549,51 juta., dengan rincian aset lancar sejumlah US$ 204,83 juta sedangkan aset tidak lancar sebesar US$ 344,68 juta.

Corporate Secretary Darma Henwa Mukson Arif Rosyidi sebelumnya mengatakan, kenaikan aset tersebut didorong pening-katan produksi dari kegiatan usaha perseroan dan adanya pembayaran uang muka kepada pemasok dalam rangka persiapan kenaikan produksi mendatang. “Termasuk uang muka yang berasal dari pinjaman PT Bank Rakyat Indonesia (Persero) Tbk,” ungkapnya.

Sedangkan total liabilitas perseroan menanjak naik 32,29% menjadi US$ 549 juta, Mukson melanjutkan liabilitas itu disebabkan oleh utang usaha pihak ketiga yang sebagian besar berasal dari pembelian suku cadang, ban, serta pemeliharaan dan peralatan lainnya. “Kenaikan liabilitas tersebut tidak memiliki dampak negatif terhadap kinerja keuangan perseroan,” pungkas dia.

IMA-Daily Update Page 9

Regarding the Covid-19 pandemic, Mukson said, the issuer coded by DEWA stock was careful to take action. The company is also reviewing future work plans. There are three factors that are considered by the company in taking action. First is the restriction of access in and out of the mine area for employees.

"With this, we have a little difficulty in recruiting new workers as an effort to increase production and limited vendor mobility in supporting the company's operations," he said.

The second factor, according to Mukson, is the closure of manufacturing components of big tires. The action was feared to hamper the company's operations. "We also observe the condition of Large-Scale Social Restrictions (PSBB) that can affect the delivery of goods and logistics needed by the company during operation," he said.

Terkait pandemi Covid-19, Mukson menga-takan, emiten yang berkode saham DEWA tersebut berhati-hati mengambil tindakan. Perseroan juga sedang mengkaji ulang (review) rencana kerja ke depan. Terdapat tiga faktor yang menjadi pertimbangan perseroan dalam mengambil tindakan. Pertama adalah pembatasan akses keluar masuk area tambang bagi para karyawan.

"Dengan adanya hal itu, kami s edikit kesulitan melakukan rekrutmen pekerja baru sebagai upaya meningkatkan produksi serta terbatasnya mobilitas vendor dalam mendukung operasi perseroan," katanya.

Faktor kedua, menurut Mukson, yaitu penu-tupan manufaktur komponen big tyres. Tindakan itu dikhawatirkan menghambat operasional perseroan. “Kami juga meng-amati kondisi Pembatasan Sosial Berskala Besar (PSBB) yang dapat memengaruhi pengiriman barang maupun logistik yang diperlukan perseroan selama beroperasi,” tutur dia.

Not Interested in RKAB Revision, ADRO Still Focuses on Pursuing

Targets According to Guidelines in 2020

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

PT ADARO Energy Tbk (ADRO) does not intend to revise the Work Plan and Budget (RKAB) in 2020. Although in the midst of the corona pandemic (covid-19) ADRO is still optimistic that it will pursue the targets set out in this year's operational guidelines.

ADRO Head of Corporate Communication Febriati Nadira said that the company had not changed the guidelines in 2020. That is...

Belum tertarik revisi RKAB, ADRO masih fokus kejar target

sesuai panduan di 2020 Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

PT ADARO Energy Tbk (ADRO) belum ber-niat untuk melakukan revisi Rencana Kerja dan Anggaran Biaya (RKAB) tahun 2020. Meski di tengah pandemi corona (covid-19) ADRO masih optimistis mengejar target yang tertuang di panduan operasional tahun ini.

Head of Corporate Communication ADRO Febriati Nadira menyampaikan, pihaknya belum mengubah panduan di tahun 2020. Yakni....

IMA-Daily Update Page 10

That is coal production targeted at levek

54 million tons - 58 million tons.

Operational EBITDA of US$ 900 million -

US$ 1.2 billion, and capital expenditure of

US$ 300 million - US$ 400 million.

"According to the current guidelines, it

hasn't changed," Nadira told Kontan.co.id,

Wednesday (3/6).

Nadira added, it would continue to carry

out operations as planned in the ADRO

mines. He said the operation was carried

out while maintaining solid performance

through an integrated business model.

In this pandemic era, Nadira also ensured

that ADRO prioritized employee health and

safety. "Adaro continues to focus on

operational excellence and efficiency. Our

business strategy for the coal business is

maintaining an optimal mining strategy

and efficient operations," he said.

In Kontan.co.id's notes, ADRO's coal

production volume could still grow 5%

(yoy) to 14.41 million tons in the first

quarter. ADRO also recorded an increase in

coal sales volume of 8% (yoy) to 14.39

million tons. However, from the financial

side, ADRO revenue shrank 11.34% (yoy)

to US$ 750.46 million. The company's net

profit also fell 17.35% (yoy) to US$ 98.17

million.

Throughout the First Quarter, Southeast

Asia remained ADRO's main market in

selling coal commodities, accounting for

47% of the total sales volume. Indonesia

and Malaysia are the two biggest ADRO

markets in the region.

Yakni produksi batubara yang ditarget di levek 54 juta ton - 58 juta ton. EBITDA operasional sebesar US$ 900 juta - US$ 1,2 miliar, serta belanja modal senilai US$ 300 juta - US$ 400 juta. "Sesuai panduan saat ini, belum berubah," kata Nadira kepada Kontan.co.id, Rabu (3/6).

Nadira menambahkan, pihaknya akan tetap melakukan kegiatan operasi sesuai rencana di tambang-tambang milik ADRO. Dia bilang, kegiatan operasi tersebut dilakukan sembari mempertahankan kinerja yang solid melalui model bisnis terintegrasi.

Di era pandemi ini, Nadira pun memasti-kan bahwa ADRO memprioritaskan kesehatan dan keselamatan karyawan. "Adaro terus fokus terhadap keunggulan operasional dan efisiensi. Strategi bisnis kami untuk bisnis batubara yaitu mem-pertahankan strategi penambangan yang optimal dan operasi efisien," sebutnya.

Dalam catatan Kontan.co.id, volume produksi batubara ADRO masih bisa tumbuh 5% (yoy) menjadi 14,41 juta ton di kuartal pertama lalu. ADRO juga men-catatkan peningkatan volume penjualan batubara sebanyak 8% (yoy) menjadi 14,39 juta ton. Namun, dari sisi keuangan, pendapatan ADRO menyusut 11,34% (yoy) menjadi US$ 750,46 juta. Laba bersih perusahaan ini juga turun 17,35% (yoy) menjadi US$ 98,17 juta.

Sepanjang Kuartal I, Asia Tenggara masih menjadi pasar utama ADRO dalam menjual komoditas batubara dengan porsi 47% dari total volume penjualan. Indonesia dan Malaysia menjadi dua pasar terbesar ADRO di wilayah ini.

IMA-Daily Update Page 11

The Impact of Covid-19, Antam's Rating Prospects Become Negative

Editor

PEFINDO revised the prospect of PT

Aneka Tambang Tbk (ANTM) to be negative from stable in anticipation of a

decrease in EBITDA due to nickel prices and lower gold sales volumes than expected. Pefindo also affirmed idA's rating to Antam and its continuous bonds I/2011.

An unprecedented situation caused by the Corona disease pandemic (Covid-19) prompted Pefindo to revise Antam's sales volume and commodity price expectations to be less volatile than previously projected. Since Covid -19 was first

identified in late December 2019, global nickel prices have fallen 12% from US$ 13,723 per ton to US$ 12/128 per ton on May 27, 2020. Pandemics have caused lockdowns in several countries to also affect Antam's gold export sales, which is estimated will decrease.

Niken Indriarsih, Analyst of Pefindo, said that although management will focus on increasing local gold sales, which have higher margins than export sales, domestic

gold retail market demand may be some-what weakened due to high gold prices amid the current weakening purchasing power.

"Although Antam has taken a number of initiatives to maintain a low cost position and mitigate EBITDA reduction by cost efficiency, a prolonged Covid-19 pandemic can affect Antam's credit profile in the near to medium term," Niken said in his report on Tuesday (2/6).

Dampak Covid-19, Prospek Peringkat Antam Jadi Negatif

Redaktur

PEFINDO merevisi prospek peringkat PT Aneka Tambang Tbk (ANTM) menjadi negatif dari stabil untuk mengantisipasi penurunan EBITDA yang diakibatkan harga jual nikel dan volume penjualan emas yang lebih rendah dari ekspektasi. Pefindo juga me-negaskan peringkat idA kepada Antam dan obligasi berkelanjutan I/2011.

Situasi yang tidak pernah terjadi sebelumnya akibat pandemi Corona disease (Covid-19) mendorong Pefindo merevisi ekspektasi volume penjualan dan harga komoditas Antam menjadi lebih rnedah dari proyeksi sebelumnya. Sejak Covid-19 pertama kali diidentifikasi pada akhir Desember 2019, harga nikel global turun 12% dari US$13.723 per ton menjadi US$12/128 per ton pada 27 Mei 2020. Pandemi mengakibatkan lockdown di beberapa negara juga mempengaruhi penjualan ekspor emas Antam, yang diper-kirakan akan menurun.

Niken Indriarsih, Analis Pefindo, mengatakan meskipun manajemen akan fokus untuk meningkatkan penjualan emas lokal, yang memiliki margin yang lebih tinggi dibanding penjualan ekspor, permintaan pasar retail emas domestik mungkin agak melemah karena tingginya harga emas di tengah daya beli masyarakat yang melemah saat ini.

“Meskipun Antam mengambil beberapa inisiatif untuk mempertahankan posisi biaya yang rendah dan memitigasi penurunan EBITDA dengan melakukan efisiensi biaya, pandemi Covid-19 yang berkepanjangan dapat mempengaruhi profil kredit Antam dalam jangka waktu dekat hingga menengah,” kata Niken dalam laporannya, Selasa (2/6).

IMA-Daily Update Page 12

Bonds rated idA like Antam have a

stronger ability than other Indonesian

obligors to meet long-term financial

commitments. However, the ability of

obligors may be more easily affected by

adverse changes in economic conditions

and conditions compared to higher ranking

obligors.

The ratings reflect Antam's large resources

and reserves, strong position in the

industry supported by diversified mining

products and vertically integrated

operational activities. However, the ratings

are constrained by high financial leverage

and exposure to fluctuations in commodity

prices.

In 2019, Antam posted revenue of Rp32.81

trillion in 2019, up 30% compared to 2018

of Rp25.24 trillion. Antam's revenue

growth was mainly driven by an increase

in gold sales volume which last year

reached 1.09 million troy ounces, up 22%

compared to 2018.

Besides gold, ferronickel sales volume also

increased 3% to 26,349 tons of nickel in

ferronickel (TNi), up 9% compared to 2018

of 24,135 TNi. The increased sales volume

of ferronickel is supported by the stability

of the ferronickel mill production

operation in Pomalaa which currently has

an installed production capacity of 27

thousand tonnes per year.

Antam's revenue last year also came from

nickel ore and bauxite sales. And alumina

sales through its subsidiary PT ICA. (AT)

Obligor dengan peringkat idA seperti Antam memiliki kemampuan yang kuat dibanding obligor Indonesia lainnya untuk memenuhi komitmen keuangan jangka panjang. Namun, kemampuan obligor mungkin akan lebih mudah terpengaruh oleh perubahan buruk keadaan dan kondisi ekonomi dibanding obligor dengan peringkat lebih tinggi.

Peringkat mencerminkan sumber daya dan cadangan Antam yang besar, posisi yang kuat di industri yang didukung oleh produk pertambangan yang terdiver-sifikasi dan kegiatan operasional yang terintegrasi secara vertikal. Namun, peringkat dibatasi oleh leverage keuangan yang tinggi dan paparan terhadap fluktuasi atas harga komoditas.

Pada 2019, Antam membukukan pen-dapatan Rp32,81 triliun pada 2019, naik

30% dibanding 2018 sebesar Rp25,24 triliun. Kenaikan pendapatan Antam terutama didorong peningkatan volume penjualan emas yang pada tahun lalu mencapai 1,09 juta troy ounces, naik 22% dibanding 2018.

Selain emas, volume penjualan feronikel juga meningkat 3% menjadi 26.349 ton nikel dalam feronikel (TNi), naik 9% dibanding 2018 sebesar 24.135 TNi.

Peningkatan volume penjualan feronikel ditopang tercapainya stabilitas operasi produksi pabrik feronikel di Pomalaa yang saat ini memiliki kapasitas produksi terpasang 27 ribu TNi per tahun.

Pendapatan Antam pada tahun lalu juga berasal dari penjualan bijih nikel dan bauksit. Serta penjualan alumina melalui anak usahanya PT ICA. (AT)

IMA-Daily Update Page 13

Facing new normal, Adaro Energy (ADRO) still maintains operational

guidelines Reporter: Akhmad Suryahadi | Editor: Tendi

Mahadi

TOWARDS the new normal implementation,

PT Adaro Energy Tbk (ADRO) has prepared management guidelines/protocols during the Corona pandemic (Covid-19). Febriati Nadira, Head of Corporate Communication of Adaro Energy, said that ADRO will continue to carry out operations as planned in ADRO's mines.

ADRO will also continue to focus on efforts to improve operational excellence, control costs and efficiency, and execute strategies for business continuity. For this reason, the Kompas100 Index constituents have not changed the operational guidelines for 2020.

ADRO targets coal production to be around 54 million metric tons (MT) - 58 MT. Mean-while, operating income before interest, taxes, depreciation and amortization (EBITDA) was set at around US$ 900 million - US$ 1.2 billion. "As for capital expenditure (capex) in the range of US$ 300 million - US$ 400 million," Febriati told Kontan.co.id, Wednesday (3/6).

This mining issuer has prepared three main things related to prevention of Covid-19 transmission in the scope of the mining (site) and ADRO office. First, conduct a risk assessment for employees before returning to the office or site (site).

Second, ADRO arranges trips to the workplace, including setting limits on the maximum number of vehicle passengers at 50% of capacity and applying distance between passengers and conducting independent quarantine and/or health checks with PCR tests if any.

Hadapi new normal, Adaro Energy (ADRO) masih pertahankan

panduan operasional Reporter: Akhmad Suryahadi | Editor: Tendi

Mahadi

MENJELANG pemberlakuan new normal, PT

Adaro Energy Tbk (ADRO) telah menyiapkan panduan/protokol pengelolaan dalam masa pandemi Corona (Covid-19). Febriati Nadira, Head of Corporate Communication Adaro Energy mengatakan ADRO akan tetap melakukan kegiatan operasi sesuai rencana di tambang-tambang milik ADRO.

ADRO juga akan terus fokus terhadap upaya peningkatan keunggulan operasional, pengen-dalian biaya dan efisiensi, serta eksekusi strategi demi kelangsungan bisnis. Untuk itu, konstituen Indeks Kompas100 ini belum mengubah panduan operasional untuk tahun 2020.

ADRO menargetkan produksi batubara berada di kisaran 54 juta metric ton (MT) – 58 MT. Sementara itu, pendapatan sebelum bunga, pajak, depresiasi, dan amortisasi (EBITDA) operasional dipatok di kisaran US $900 juta - US$ 1,2 miliar. “Sementara untuk belanja modal (capex) di kisaran US$ 300 juta - US$ 400 juta,” ujar Febriati kepada Kontan.co.id, Rabu (3/6).

Emiten pertambangan ini telah menyiapkan tiga hal utama terkait pencegahan penularan Covid-19 di lingkup pertambangan (site) maupun kantor ADRO. Pertama, melakukan risk assessment kepada karyawan sebelum kembali ke kantor atau situs (site).

Kedua, ADRO mengatur perjalanan ke tempat kerja, antara lain pengaturan batasan jumlah maksimal penumpang kendaraan adalah 50% dari kapasitas dan menerapkan jarak antar penumpang dan pelaksanaan karantina mandiri dan/atau pemeriksaan kesehatan dengan PCR tes jika ada.

IMA-Daily Update Page 14

Finally, the rules when working in an office or site include measuring air quality in an indoor air quality and examining the Heating Ventilation Air Conditioning (HVAC) system related to the potential exposure to biological hazards that can reduce endurance. ADRO also checks body temperature to regulate the distance between employees at least 1 meter.

Recommendation to buy ADRO shares

As of the first quarter of 2020, ADRO recorded revenues of US$ 750 million, down 11% (yiy) compared to the first quarter of the previous year. In terms of the bottom line, Adaro Energy posted a net profit of US$ 98.18 million, down 17.36% on an annual basis.

Launching the official release of ADRO on the Indonesia Stock Exchange (IDX) page, the decline in revenue was caused by a 17% decline in the average selling price of coal. Weak coal prices are further pressured by falling demand due to the weakening global economy due to lock-downs due to the Corona outbreak.

However, ADRO managed to record growth in operational performance. ADRO coal production volume increased 5% yoy to 14.41 million tons. While coal sales volume rose 8% (yoy) to 14.39 million tons in the first quarter of 2020.

Stefanus Darmagiri, Danareksa Sekuritas analyst, said that the Covid-19 pandemic will make the prospect of coal commodities more challenging and will have an impact on ADRO's performance in the coming quarter. Even so, he believes the low price of crude oil can help ADRO from the risk of declining performance this year.

Stefanus recommended buying ADRO shares with a target price of Rp1,300 per share. One consideration is the diver-sification of the business run by the Kompas100 Index constituent issuers.

Terakhir, aturan saat bekerja di kantor atau situs, antara lain melakukan pengukuran kua-litas udara di ruangan kerja (indoor air quality) dan pemeriksaan sistem Heating Ventilation Air Conditioning (HVAC) terkait potensi adanya paparan bahaya biologi yang dapat menurun-kan daya tahan tubuh. ADRO juga melakukan pemeriksaan suhu tubuh hingga mengatur jarak antar karyawan minimal 1 meter.

Rekomendasi beli saham ADRO

Per kuartal pertama 2020, ADRO mencatat-kan pendapatan sebesar US$ 750 juta atau turun 11% (yiy) dibandingkan kuartal pertama tahun sebelumnya. Dari segi bottom line, Adaro Energy membukukan laba bersih US$ 98,18 juta, atau turun 17,36% secara tahunan.

Melansir rilis resmi ADRO di laman Bursa Efek Indonesia (BEI), penurunan pendapatan disebabkan oleh penurunan harga jual rata-rata batubara sebanyak 17%. Harga batubara yang lemah semakin tertekan oleh penurunan permintaan akibat melemahnya ekonomi global karena penerapan lockdown sehu-bungan merebaknya wabah Corona.

Meski demikian, ADRO berhasil mencatat pertumbuhan kinerja operasional. Volume produksi batubara ADRO meningkat 5% secara yoy menjadi 14,41 juta ton. Sementara volume penjualan batubara naik 8% (yoy) menjadi 14,39 juta ton di kuartal I-2020.

Stefanus Darmagiri, Analis Danareksa Sekuritas menilai, pandemi Covid-19 akan membuat prospek komoditas batubara semakin menantang dan akan berdampak pada kinerja ADRO di kuartal mendatang. Meski demikan, dia percaya rendahnya harga minyak mentah dapat membantu ADRO dari risiko penurunan kinerja di tahun ini.

Stefanus merekomendasikan beli (buy) saham ADRO dengan target harga Rp1.300 per saham. Salah satu pertimbangannya adalah diversifikasi bisnis yang dijalankan emiten konstituen Indeks Kompas100 ini.

IMA-Daily Update Page 15

"Our expectation is that business diversification with a higher contribution from the non-coal mining business, from investment in the electricity business, can help companies maintain long -term revenue," Stefanus wrote in his research, Friday (5/15).

Danareksa Sekuritas estimates that Adaro Energy's EBITDA will be in the range of US$ 1.1 billion this year which is still in line with ADRO's management estimates.

“Ekpektasi kami, diversifikasi bi snis dengan kontribusi yang lebih tinggi dari bisnis non- pertambangan batubara, yakni dari investasi dalam bisnis listrik dapat membantu perusahaan mempertahankan pendapatan jangka panjang,” tulis Stefanus dalam riset, Jumat (15/5).

Danareksa Sekuritas memperkirakan EBITDA Adaro Energy akan ada di kisaran US$ 1,1 miliar untuk tahun ini yang mana masih sesuai dengan perkiraan manajemen ADRO.

Government Prepares Scheme to Boost Nickel Downstream

Yanita Petriella

THE COORDINATING Ministry for

Maritime Affairs and Investment (Kemenko Marves) is preparing a scenario of economic recovery in Indonesia after the Covid-19 epidemic by developing integrated upstream to down-stream

industries to attract investment to Indonesia.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that one of the industries that the

government focuses on is the development of lithium batteries using Indonesian raw minerals that are rich in nickel and cobalt as two main materials for EV batteries.

According to him, the Philippines has a nickel deposit number two after Indonesia and it is predicted that the nickel deposit will run out in the next two years. Therefore, Indonesia will be the first choice for countries investing in the

lithium battery development sector.

Pemerintah Siapkan Skema Menggenjot Hilirisasi Nikel

Yanita Petriella

KEMENTERIAN Koordinator Bidang

Kemaritiman dan Investasi (Kemenko Marves) tengah menyiapkan skenario pemulihan ekonomi di Indonesia pasca-pandemi Covid-19 dengan membangun industri dari hulu ke hilir yang terintegrasi untuk menarik investasi ke Indonesia.

Menteri Koordinator Bidang Kemaritiman dan Investasi Luhut Binsar Pandjaitan mengatakan salah satu industri yang menjadi fokus pemerintah adalah pengem-

bangan baterai lithium menggunakan raw mineral Indonesia yang kaya akan nikel dan kobalt sebagai dua bahan utama baterai EV.

Menurutnya, Filipina memiliki deposit nikel nomor dua setelah Indonesia dan diprediksi deposit nikel itu akan habis dalam dua tahun ke depan. Oleh karena itu, Indonesia akan menjadi pilihan utama bagi negara-negara yang berinvestasi di sektor

pengembangan baterai lithium.

IMA-Daily Update Page 16

"Other countries will depend on us. At the moment we play the 'drum'. Therefore we will immediately encourage the transfer of technology," he said in a press release on Wednesday (06/03/2020).

He considered that Indonesia has mineral reserves as industrial raw material which is quite a lot when compared to Asian countries such as Malaysia, the Philippines, and Vietnam.

Based on BPS data, the value of Indonesia's steel exports has been constantly increasing in the last three years. In 2017 the value of steel exports was US$ 3.3 billion, increasing to US$ 5.3 billion in 2018, and US$ 7.4 billion in 2019. Even the value of steel exports exceeded vehicle exports in the first quarter of 2020.

Industrial development from upstream to downstream will add value to Indonesia. He gave an example, nickel ore exports in 2018 amounted to 19.28 million tons valued at US$ 612 million. When nickel ore is processed into stainless steel slabs, the export volume becomes 3.85 million tons with a value of US$ 6.24 billion.

"There is an increase in export value of 10.2 times here. So far, we only export raw materials, this is what Jokowi's administration is trying to change for the past five years. We want nickel downstreaming. We have started this in Sulawesi and Maluku," Luhut said.

To build an integrated upstream to down-stream industry certainly requires coopera-tion from other parties. Coordinating Minister Luhut said the government would open investment for other countries that could provide returns for Indonesia.

"In investment, of course there is take and give. Indonesia will prioritize investors who want to help provide added value to Indonesia in managing mineral resources. There must be a transfer of technology, to educate the local workforce," explained Luhut. Editor: Yustinus Andri DP

“Negara lain akan tergantung dengan kita. Saat ini kita memainkan ‘gendangnya’. Karena itu kita akan segera mendorong transfer teknologinya,” ujarnya dalam siaran pers, Rabu (3/6/2020).

Dia menilai Indonesia memiliki cadangan mineral sebagai bahan baku inustri yang cukup banyak jika dibanding negara-negara Asia seperti Malaysia, Filipina, dan Vietnam.

Berdasarkan data BPS, nilai ekspor besi baja Indonesia secara konstan meningkat dalam tiga tahun terakhir. Pada 2017 nilai ekspor besi baja senilai US$3,3 miliar, meningkat menjadi US$ 5,3 miliar pada 2018, dan US$7,4 miliar pada 2019. Bahkan nilai ekspor besi baja melebihi ekspor kendaraan di kuartal pertama tahun 2020.

Pembangunan industri dari hulu ke hilir akan memberi nilai tambah bagi Indonesia. Dia mencontohkan, ekspor biji nikel pada 2018 sebesar 19,28 juta ton senilai US$612 juta. Saat biji nikel diolah menjadi stainless steel slab, volume ekspor menjadi sebesar 3,85 juta ton dengan nilai US$6,24 miliar.

“Ada peningkatan nilai ekspor sebesar 10,2 kali lipat di sini. Selama ini kita hanya ekspor raw material, ini yang coba diubah peme-rintahan Jokowi sejak lima tahun ke belakang. Kita ingin hilirisasi nikel. Ini sudah kita mulai di Sulawesi dan Maluku,” tutur Luhut.

Untuk membangun industri dari hulu ke hilir yang terintegrasi tentu membutuhkan kerja sama dari pihak lain. Menko Luhut mengatakan pemerintah akan membuka investasi bagi negara-negara lain yang bisa memberikan imbal balik bagi Indonesia.

“Dalam investasi tentu ada take and give. Indonesia akan memprioritaskan investor yang mau turut membantu memberikan nilai tambah bagi Indonesia dalam mengelola sumber daya mineral. Harus ada transfer teknologi, hingga mendidik tenaga kerja lokal,” terang Luhut. Editor : Yustinus Andri DP

IMA-Daily Update Page 17

Toba Bara Sejahtera's Revenue Grew 53.21%

By: Ahmad Nabhani

ALTHOUGH the coal market conditions are

sluggish in the market, PT Toba Bara Sejahtra Tbk (TOBA) still posted a slick performance. Where the company managed to record a 53.21% increase in revenue to US$ 167 million until the first quarter of 2020, compared to the same period in the previous year of US$ 109 million.

The company in its press release in Jakarta yesterday explained that the increase in revenue had an impact on the company's jump in net profit by 218.06% to US$ 19.37 million. In a financial report published by the company, the revenue was supported by coal sales to third parties abroad rose 3.61% to US$ 86 million. But overall, sales to third parties decreased by 1.14% to US$ 87 million.

Then the most significant increase occurred in the construction revenue segment reaching 286.86% to US$ 78.34 million. The company's cost of revenue grew 54.55% to US$ 136 million, compared to the same period the previous year of US$ 88 million. The company also managed to reduce the general and administrative expenses segment from US$ 6.50 million to US$ 6.12 million. Then the selling expense also dropped to US$ 184 thousand, from the previous US$ 245 thousand, followed by an increase in foreign exchange earnings to US$ 2.83 million, compared to the same period last year with a foreign exchange loss of US$ 420 thousand, so Toba's operating profit Bara increased 125.74% to US$ 36.84 million from the previous period of US$ 16.32 million.

Pendapatan Toba Bara Sejahtera Tumbuh 53,21%

Oleh: Ahmad Nabhani

MESKIPUN kondisi pasar batu bara tengah lesu di pasar, namun PT Toba Bara Sejahtra Tbk (TOBA) masih membukukan kinerja yang apik. Dimana perseroan berhasil men-catatkan peningkatan pendapatan sebanyak 53,21% menjadi US$ 167 juta hingga kuartal I-2020, dibandingkan periode sama pada sebelumnya sebesar US$ 109 juta.

Perseroan dalam siaran persnya di Jakarta, kemarin menjelaskan, kenaikan pendapatan berimbas terhadap lonjakan laba bersih perseroan sebanyak 218,06% menjadi US$ 19,37 juta. Dalam laporan keuangan yang dipublikasikan perseroan menyebutkan pendapatan tersebut ditopang oleh pen-jualan batu bara pada pihak ketiga luar negeri naik 3,61% menjadi US$ 86 juta. Namun secara keseluruhan, penjualan kepada pihak ketiga mengalami penurunan sebanyak 1,14% menjadi US$ 87 juta.

Kemudian peningkatan paling signifikan terjadi pada segmen pendapatan konstruksi mencapai 286,86% menjadi US$ 78,34 juta. Beban pokok pendapatan perseroan ber-tumbuh 54,55% menjadi US$ 136 juta, di-bandingkan periode sama tahun sebelumnya senilai US$ 88 juta. Perseroan juga berhasil menekan segmen beban umum dan adminis-trasi menjadi dari US$ 6.50 juta menjadi US$ 6,12 juta. Kemudian beban penjualan juga turun menjadi US$ 184 ribu, dari sebelum-nya US$ 245 ribu, diikuti oleh peningkatan laba selisih kurs menjadi US$ 2,83 juta, dibandingkan periode sama tahun lalu dengan rugi kurs mencapai US$ 420 ribu, sehingga laba operasi Toba Bara meningkat sebanyak 125.74% menjadi US$ 36,84 juta dari periode sebelumnya US$ 16,32 juta.

IMA-Daily Update Page 18

The company explained, the increase made Toba Bara's current period profit increase 183.54% to US$ 28.07, compared to the same period the previous year of US$ 9.90 million. As of March 31, 2020, the company's total assets were recorded at US$ 728 million with details of current assets of US$ 84 million and non-current assets of US$ 634 million. While liabilities increased by 19.46% to US$ 442 from the previous year at US$ 370 million.

This year, the company has allocated capital expenditure (capex) of US$ 160 million, the majority of which is used for project construction. Finance Director of PT Toba Bara Sejahtra Tbk, Pandu Sjahrir once said, the company has locked most of the sales contracts this year. Therefore, the spread of covid-19 virus is not expected to have a significant impact on the company's performance. "Of the total sales target this year, most TOBAs already have contracts on fixed prices. However, this does not rule out the possibility that the Covid-19 event will have an impact on the remaining sales plans that do not yet have a contract," he said.

Nevertheless, Pandu is more aware of the coal market conditions that are declining lately. Because the price of black gold commodity is now at the level of US$ 34.05 per ton, while the price of domestic reference coal (HBA) in the range of US$ 67.08. Erratic prices, he continued, will have an impact on TOBA earnings in 2020.

This year the company does not plan to spur production while maintaining a range of 5 million tons. Because the company has a high-calorie coal composition between 5,600 kcal - 5,900 kcal is reasonable to save. "TOBA always strives to maintain performance, among others by continuing to carry out efficiency activities in order to maintain the company's bottom-line," he said.

Perseroan menjelaskan, peningkatan ter-sebut membuat laba periode berjalan Toba Bara meningkat 183,54% menjadi US$ 28,07, dibandingkan periode sama tahun sebelum-nya US$ 9,90 juta. Hingga 31 Maret 2020, total aset perseroan tercatat US$ 728 juta dengan rincian aset lancar sebanyak US$ 84 juta dan aset tidak lancar sejumlah US$ 634 juta. Sedangkan liabilitas naik sebesar 19,46% menjadi US$ 442 dari tahun sebe-lumnya yaitu US$ 370 juta.

Tahun ini, perseroan mengalokasikan belanja modal atau capital expenditure (capex) sebesar US$ 160 juta yang mayoritasnya digunakan untuk konstruksi proyek. Direktur Keuangan PT Toba Bara Sejahtra Tbk, Pandu Sjahrir pernah bilang, perseroan telah mengunci sebagian besar kontrak penjualan pada tahun ini. Oleh sebab itu, penyebaran virus covid-19 diperkirakan tidak akan berdampak signifikan pada kinerja perseroan. “Dari total target penjualan di tahun ini, TOBA sebagian besar sudah memiliki kontrak pada fixed price. Meski demikian tidak menutup kemungkinan peris-tiwa Covid-19 ini akan memberikan dampak terhadap sisa rencana penjualan yang belum memiliki kontrak,” katanya.

Kendati demikian, Pandu lebih mewaspadai kondisi pasar batu bara yang sedang menurun belakangan ini. Pasalnya harga komoditas emas hitam itu kini berada di level US$ 34,05 per ton, sedangkan harga batu bara acuan (HBA) domestik pada kisaran US$ 67,08. Harga yang tidak menentu, lanjutnya, akan memiliki dampak terhadap penghasilan TOBA di tahun 2020.

Adapun pada tahun ini perseroan tidak berencana memacu produksi dengan tetap menjaga pada kisaran 5 juta ton. Pasalnya, perseroan memiliki komposisi batubara berkalori tinggi antara 5.600 kkal – 5.900 kkal wajar untuk dihemat. “TOBA senantiasa berupaya untuk mempertahankan kinerja, antara lain dengan tetap melakukan kegiatan efisiensi dalam rangka menjaga bottom-line perusahaan,” katanya.

IMA-Daily Update Page 19

This is Indonesia's Challenge in Boosting Minerba Downstreaming

Achmad Dwi Afriyadi - detikFinance

ONE sector that is the focus of the govern-ment in the economic recovery scenario in Indonesia after the COVID-19 pandemic is mineral and coal downstreaming. However, there are challenges in developing the downstream industry, namely the lack of employment of graduates of Bachelor and Engineering Diploma faced by Indonesia.

In 2025, Indonesia is projected to require 276,298 S1 Engineering and 458,876 D3 Engineering. While the availability for S1 is projected to only amount to 27,721 and D3 5,634 people. This means that there will be a shortage of S1 Engineering personnel totaling 248,577 and D3 Engineering 453,243 in 2025. This was discussed in the Coordination Meeting on Downstreaming of the Metal Industry and Human Resource Development, Tuesday, 2 June 2020.

Dean of the Faculty of Engineering, Univer-sity of Indonesia. Hendri Dwi Saptioratri Budiono M.Eng in his presentation said that based on BPS data in 2019, the majority of workers in Indonesia had elementary school education and below with a total of 52.4 million people. Next is a high school education graduate with 23.1 million people, 22.9 million junior high school students, then 14.6 million vocational school people, then only a bachelor with 12.61 million and Diploma I/II/III with 3.6 million people.

Data on the needs, availability, and short-comings of S1 Engineering and D3 Engineer-ing from Kemenristek Dikti, shows that Indonesia always experiences a deficit of S1 and D3 Engineering requirements. In 2016,...

Ini Tantangan RI Genjot Hilirisasi Minerba

Achmad Dwi Afriyadi - detikFinance

SALAH satu sektor yang menjadi fokus pemerintah dalam skenario pemulihan ekonomi di Indonesia pasca pandemi COVID-19 adalah hilirisasi minerba. Namun, ada tantangan dalam mengem-bangkan industri hilirisasi tersebut, yakni kurangnya tenaga kerja lulusan Sarjana dan Diploma Teknik yang dihadapi Indonesia.

Pada tahun 2025, Indonesia diproyeksi akan membutuhkan 276.298 S1 Teknik dan 458.876 D3 Teknik. Sedangkan keter-sediaan untuk S1 diproyeksi hanya ber-jumlah 27.721 dan D3 5.634 orang. Artinya akan ada kekurangan tenaga S1 Teknik sebesar 248.577 dan D3 Teknik 453.243 pada tahun 2025. Hal tersebut dibahas dalam Rakor mengenai Hilirisasi Industri Logam dan Pengembangan Sumber Daya Manusia, Selasa, 2 Juni 2020.

Dekan Fakultas Teknik Universitas Indonesia . Hendri Dwi Saptioratri Budiono M.Eng dalam paparannya menyampaikan bahwa berdasarkan data BPS pada 2019, mayoritas tenaga kerja di Indonesia berpendidikan SD ke bawah dengan jumlah sebesar 52,4 juta orang. Berikutnya adalah lulusan pendidikan SMA dengan 23,1 juta orang, SMP 22,9 juta orang, lalu SMK 14,6 juta orang, kemudian baru Sarjana dengan 12,61 juta dan Diploma I/II/III dengan 3,6 juta orang.

Data kebutuhan, ketersediaan, dan ke-kurangan S1 Teknik dan D3 Teknik dari Kemenristek Dikti, menunjukkan Indo-nesia selalu mengalami defisit kebutuhan S1 dan D3 Teknik. Pada 2016,...

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In 2016, Indonesia needed 34,981 S1 workers, while the availability was only 17,092, meaning there was a shortage of 17,889. The D3 requirement of 55,855 is also only available at 5,046, a deficit of 50,809. This number continues to grow in 2019, where the deficit for S1 becomes 97,347 and D3 is 188,941.

The needs and availability of S1 and D3

Engineering graduates are calculated from 15 study programs, namely Architecture, Aerospace, Electrical Engineering, Physics/ Electronics, Geodesy, Geology, Industry, Informatics, Marine Engineering,

Chemistry, Environment, Machinery, Petroleum, Civil, and Planology.

"The average need for engineering graduates in Indonesia has increased to 57,000 per year. In the 2015-2020 period it is estimated to have jumped to an average of 90,500 per year. Whereas in that period the estimated number of human resources that could be provided was only 75,000," Hendri said in his presentation.

Spokesperson for the Coordinating

Minister of Maritime Affairs and Invest-ment, Jodi Mahardi, said that this fact was a serious challenge for the government which was intensively conducting down-

streaming the mineral and coal industry. In fact, the downstream industry requires a very large number of technicians.

"The Coordinating Minister said that all parties focus on preparing an integrated program related to human resource education and industry needs. So that later we will also coordinate with the Ministry

of Education and Culture, the Ministry of Industry, and the Ministry of Labor. studies and facilities," explained Jodi.

Pada 2016, Indonesia membutuhkan 34.981 tenaga kerja S1, sedangkan keter-sediaannya hanya 17.092, artinya ada kekurangan 17.889. Kebutuhan D3 sebesar 55.855 juga hanya tersedia 5.046, defisit 50.809. Angka ini terus membesar pada tahun 2019, di mana defisit untuk S1 menjadi 97.347 dan D3 sebesar 188.941.

Kebutuhan dan ketersediaan lulusan S1

Teknik dan D3 Teknik tersebut dikalkulasi dari 15 program studi, yakni Teknik Arsitektur, Dirgantara, Elektro, Fisika/ Elektronika, Geodesi, Geologi, Industri, Informatika, Teknik Kelautan, Kimia,

Linkungan, Mesin, Perminyakan, Sipil, dan Planologi.

"Rata-rata kebutuhan sarjana teknik di Indonesia meningkat menjadi 57.000 per tahun. Pada periode 2015-2020 diper-

kirakan melonjak menjadi rata-rata 90.500 per tahun. Padahal pada periode tersebut perkiraan jumlah sumber daya manusia yang dapat disediakan hanya 75.000," ujar Hendri dalam paparannya.

Juru Bicara Menko Kemaritiman dan Investasi Jodi Mahardi, menyampaikan bahwa fakta ini menjadi tantangan serius bagi pemerintah yang tengah gencar melakukan hilirisasi industri minerba. Padahal, industri hilirisasi memerlukan

teknisi dalam jumlah yang sangat besar.

"Pak Menko tadi menyampaikan agar semua pihak fokus untuk menyiapkan program yang terintegerasi terkait pen-didikan SDM dan kebutuhan industri. Sehingga nanti kami juga akan ber-koordinasi dengan Kemendikbud, Kemen-perin, dan Kemenaker. Pak Menko juga ingin agar pendidikan vokasi harus lebih diperhatikan, baik dari segi bidang studi maupun fasilitasnya," terang Jodi.

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Present at the meeting includ ed the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Industry Agus Gumiwang Karta-sasmita, Minister of Manpower Ida Fauziah, Director General of Education for the Ministry of Education and Culture, Wikan Sakarinto, Director of the Morowali Metal Industry Sector Prof. Isa S.Toha, Director of Padamara North Maluku Polytechnic Selvianus Simange, ITB Hydrometallurgical Expert Prof. Dr. Mohammad Zaki Mubarok. (DNA/DNA)

Hadir dalam rapat tersebut di antaranya Menteri Koordinator Bidang Kemaritiman dan Investasi Luhut Binsar Pandjaitan, Menteri Perindustrian Agus Gumiwang Kartasasmita, Menteri Ketenagakerjaan Ida Fauziah, Dirjen Pendidikan Sekolah Vokasi Kemendikbud Wikan Sakarinto, Direktur Poltek Industri Logam Morowali Prof. Isa S.Toha, Direktur Poltek Padamara Maluku

Utara Selvianus Simange, Pakar Hidro-metalurgi ITB Prof. Dr. Mohammad Zaki Mubarok. (dna/dna)

Markets and Prices are Uncertain, Coal Producers

Remodel Work Plans Reporter: Ridwan Nanda Mulyana | Editor:

Pratama Guitarra

THE MINISTRY of Energy and Mineral Resources (ESDM) noted that there are several coal mining companies that submitted revisions to the 2020 Work Plan and Budget (RKAB).

The revision is actually the impact of the market and mining commodity prices that are increasingly erratic in the middle of the corona virus (Covid-19).

ESDM Ministry's Mineral and Coal Program Development Director Muhammad Wafid Agung confirmed that there were already several companies that had proposed revisions to the RKAB. However, he did not want to disclose details of the number of companies that submitted, or the revision requested.

What is clear, said Wafid, the submission will be processed in the Directorate of Development and Business, both in Coal and Minerals.

Pasar dan harga kian tak menentu, produsen batubara

rombak rencana kerja Reporter: Ridwan Nanda Mulyana | Editor:

Pratama Guitarra

KEMENTERIAN Energi dan Sumber Daya Mineral (ESDM) mencatat terdapat beberapa perusahaan pertambangan batubara yang mengajukan revisi Rencana Kerja dan Anggaran Biaya (RKAB) tahun 2020 ini.

Revisi itu sejatinya imbas dari pasar dan harga komoditas tambang yang kian tak menentu di tengah pagebluk virus corona (Covid-19) ini.

Direktur Bina Program Mineral dan Batubara (Minerba) Kementerian ESDM Muhammad Wafid Agung membenarkan, bahwa sudah ada beberapa perusahaan yang mengajukan revisi RKAB. Hanya saja, ia belum mau membeberkan detail jumlah perusahaan yang mengajukan, maupun revisi yang dimintakan.

Yang jelas, kata Wafid, pengajuan tersebut akan diproses di Direktorat Pembinaan dan Pengusahaan, baik di Batubara maupun Mineral.

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"We can only copy, there are some who have already submitted. Submission and approval from (Directorate) of coal and minerals," Wafid told KONTAN, Wednes-day (3/6).

Just so you know, the revised RKAB is regulated in Ministerial Regulation (Permen) of Energy and Mineral Resources (ESDM) No. 7 of 2020. In the regulation signed by the Minister of ESDM Arifin Tasrif on March 3, 2020, the permit holder company can submit a revised RKAB by submitting first quarterly report period or no later than July 31 in the current year.

One that plans to revise the RKAB is PT Indika Energy (INDY). INDY's Head of Corporate Communication, Ricky Fernando said, the revised RKAB was done as a form of adjustment to the condition of the coal market, which until now has not been perched at a stable level.

"We continue to consider the right steps to be taken by the Company, including the possibility to submit a revised RKAB. Currently we are conducting a review for the revised RKAB to the Ministry of ESDM to adjust to market conditions," he told Kontan.co.id, Wednesday (3/6).

Unfortunately, Ricky has not explained clearly whether the revision of this RKAB INDY will reduce the volume of production, or vice versa. What is clear, operational performance continues to run amid the Covid-19 pandemic.

Another mining company, PT ABM Investama (ABMM). Director of ABM Investama, Adrian Erlangga, revealed that his party is currently still reviewing the revised RKAB option. If according to plan, the revised RKAB will be submitted to the Directorate General of Mineral and Coal of the Ministry of ESDM this month. "Maybe we ask to increase (production volume) a little. Possibly (submission) this June," he said, Wednesday (3/6).

"Kami hanya dapat tembusannya, ada bebe-rapa yang sudah mengajukan. Pengajuan dan persetujuan dari (Direktorat) batubara dan mineral," kata Wafid kepada KONTAN, Rabu (3/6).

Asal tahu saja, revisi RKAB diatur dalam Peraturan Menteri (Permen) Energi dan Sumber Daya Mineral (ESDM) Nomor 7 Tahun 2020. Dalam beleid yang ditandatangani Menteri ESDM Arifin Tasrif pada 3 Maret 2020 itu, perusahaan pemegang izin sudah bisa mengajukan revisi RKAB dengan menyam-paikan laporan periode triwulan pertama atau paling lambat 31 Juli di tahun berjalan.

Salah satu yang berencana merevisi RKAB yakni PT Indika Energy (INDY). Head of Corporate Communication INDY, Ricky Fernando bilang, revisi RKAB dilakukan sebagai bentuk penyesuaian atas kondisi pasar batubara yang hingga saat ini belum juga bertengger di level yang stabil.

"Kami terus mempertimbangkan langkah tepat yang akan dilakukan Perusahaan, termasuk kemungkinan mengajukan revisi RKAB. Saat ini kami sedang melakukan review untuk revisi RKAB ke Kementerian ESDM menyesuaikan dengan kondisi pasar," katanya ke Kontan.co.id, Rabu (3/6).

Sayangnya, Ricky belum membeberkan dengan jelas, apakah dengan revisi RKAB ini INDY akan menurunkan volume produksi, atau sebaliknya. Yang terang, kinerja operasional tetap berjalan di tengah pandemi Covid-19.

Perusahaan tambang lainnya yakni, PT ABM Investama (ABMM). Direktur ABM Inves-tama, Adrian Erlangga mengungkapkan, saat ini pihaknya masih mengkaji opsi revisi RKAB tersebut. Jika sesuai rencana, maka revisi RKAB itu akan diajukan ke Ditjen Minerba Kementerian ESDM pada bulan ini. "Mungkin kita minta naik (volume produksi) sedikit. Kemungkinan (pengajuan) di Juni ini," katanya, Rabu (3/6).

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He predicted, in the second quarter of 2020 the realization of ABMM production would be smaller than planned. "We still observe. It's not because of Covid, but rather the weather," he said.

APBI Executive Director Hendra Sinadia said that the revised RKAB was due to weak demand from the main coal markets, such as China and India, which implemented a lockdown policy some time ago.

So that in a reasonable calculation, coal demand this year could be reduced by more than 70 million tons compared to projected at the beginning of the year, prior to the Covid-19 pandemic.

Even Hendra said, domestic coal consump-tion is estimated to only be around 100 million tons. "According to our estimations from several sources, domestic coal demand has declined dramatically. Much lower than the plan set by the Government which is 155 million tons," he said.

He also considered, in the oversupply market conditions, the interest to control the production of coal commodities became increasingly urgent. Even so, Hendra realized that this was not an easy problem, especially for controlling the production of mining permits in the regions (IUP) under the

control of the regional government.

Ia memprediksi, pada Kuartal II-2020 ini realisasi produksi ABMM bakal lebih kecil dari rencana. "Masih kita amati. Itu bukan karena Covid, tapi lebih ke cuaca," ungkapnya.

Direktur Eksekutif APBI Hendra Sinadia menyampaikan, revisi RKAB terjadi akibat dari melemahnya permintaan dari pasar utama batubara, seperti China dan India yang menerapkan kebijakan lockdown sejak bebe-rapa waktu lalu.

Sehingga dalam perhitungan wajar, demand batubara di tahun ini bisa berkurang lebih dari 70 juta ton dibanding proyeksi awal tahun, sebelum adanya pandemi Covid-19.

Bahkan Hendra bilang, konsumsi batubara dalam negeri ditaksir hanya berkisar di angka 100 juta ton. "Menurut estimasi kami dari beberapa sumber, permintaan batubara domestik menurun drastis. Jauh lebih rendah dibandingkan dengan rencana yang ditetap-kan Pemerintah yaitu sebesar 155 juta ton," ungkapnya.

Dia pun menilai, dalam kondisi pasar yang oversupply tersebut, kepentingan untuk mengendalikan produksi komoditas batubara menjadi semakin urgent. Kendati begitu, Hendra menyadari bahwa hal tersebut bukan lah persoalan yang mudah, khususnya untuk pengendalian produksi izin-izin pertam-bangan di daerah (IUP) di bawah kendali

pemerintah daerah.

Coal Fails to Rise to US$ 60, This is the Sentiment That

Triggers Tirta Citradi, CNBC Indonesia

AFTER a significant bolt in early June, further strengthening of Newcstle's thermal coal prices was slightly restrained.

Batu Bara Gagal Naik ke US$60, Ini Sentimen yang Jadi

Pemicu Tirta Citradi, CNBC Indonesia

SETELAH melesat signifikan di awal Juni, penguatan lebih lanjut harga batu bara termal Newcstle sedikit tertahan.

IMA-Daily Update Page 24

Yesterday the price of coal for a heavily traded contract closed flat at US$ 56.5/ ton. Strengthening towards the level of US$ 60/ton is still hampered.

The increase in coal prices that occurred since May was triggered by several factors such as the rise of the Chinese economy after the outbreak, easing lockdowns in various countries and soaring crude oil prices.

China as the world's biggest coal consumer and bears the title as the first epicenter of the corona outbreak is an economy that has recovered first.

China's economy is struggling in need of fuel in the form of coal in order to meet electricity needs for industry. This makes China's coal imports soaring in April.

But the high demand for imported coal from China will not continue given the possibility of China limiting its imports and switching to domestic supply and Beijing-Canberra tensions.

On the other hand, the slowing Chinese manufacturing purchasing manager's index (PMI) in May also became a sentiment that weighed on coal prices. China's May manufacturing PMI was reported at 50.6, slowing from the previous month 50.8.

In March, China's manufacturing PMI was at 52, up sharply compared to February's 35.7, which is the deepest contraction in history.

Coal imports in thermal coal consuming countries such as South Korea and Japan are also still low. Based on Refinitiv Coal Flow data, South Korea and Japan imported 7.7 and 12.3 million tons of coal in May. This volume is still far lower compared to 9.1 and 12.6 million tons imported in May last year.

Kemarin harga batu bara untuk kontrak yang ramai ditransaksikan ditutup flat di US$ 56,5/ton. Penguatan menuju level US$ 60/ton masih terganjal.

Kenaikan harga batu bara yang terjadi sejak Mei dipicu oleh beberapa faktor seperti bangkitnya ekonomi China pasca wabah, pelonggaran lockdown di berbagai negara hingga melesatnya harga minyak mentah.

China sebagai konsumen batu bara terbesar di dunia dan menyandang predikat sebagai episentrum pertama wabah corona merupa-kan negara yang ekonominyan pulih lebih dahulu.

Ekonomi China yang bergeliat membutuh-kan bahan bakar berupa batu bara agar bisa memenuhi kebutuhan listrik untuk industri. Hal ini membuat impor batu bara China melonjak tinggi pada April lalu.

Namun permintaan batu bara impor dari China yang tinggi tidak akan berlangsung terus-terusan mengingat adanya kemung-kinan China membatasi impornya dan ber-alih ke pasokan domestik serta ketegangan Beijing-Canberra.

Di sisi lain angka purchasing manager's index (PMI) manufaktur China bulan Mei yang melambat juga menjadi sentimen yang mem-beratkan harga batu bara. PMI manufaktur China bulan Mei dilaporkan sebesar 50,6, melambat dari bulan sebelumnya 50,8.

Di bulan Maret, PMI manufaktur China ber-ada di level 52, naik tajam ketimbang bulan Februari sebesar 35,7, yang merupakan kontraksi terdalam sepanjang sejarah.

Impor batu bara di negara-negara konsumen batu bara termal seperti Korea Selatan dan Jepang juga masih rendah. Berdasarkan data Refinitiv Coal Flow, Korea Selatan & Jepang mengimpor batu bara sebesar 7,7 dan 12,3 juta ton pada bulan Mei. Volume ini masih jauh lebih rendah dibandingkan dengan 9,1 dan 12,6 juta ton yang diimpor Mei tahun lalu.

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Coal imports to India in May reached 10.1 million tons or less than half of May's imports last year of 21.8 million tons. Inventories of coal in power plants in all regions in India fell to 49.5 million tons in the June 1-2020, or equivalent to an average use of 29 days.

High stock records and low loading and unloading activity ahead of the Monsoon season are likely to make demand for Indian sea crossing still weak. But regional logistical problems can still encourage imports.

Coal prices are also still overshadowed by uncertainty about future prospects. Currently the market is still focused on the speed of recovery in demand, import policies of coal consuming countries, especially China and the availability and affordability of primary energy substitutes. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Impor batubara ke India pada bulan Mei ini mencapai 10,1 juta ton atau lebih kurang dari setengah dari impor bulan Mei tahun lalu sebesar 21,8 juta ton. Persediaan batu bara di pembangkit listrik di seluruh wilayah di India turun menjadi 49,5 juta ton pada 01-Juni-2020, atau setara dengan rata-rata peng-gunaan 29 hari.

Rekor stok yang tinggi dan aktivitas bongkar muat yang rendah jelang musim Monsoon kemungkinan akan membuat permintaan lintas laut India masih lemah. Namun masalah logistik regional masih bisa mendorong impor.

Harga batubara juga masih dibayangi dengan ketidakpastian akan prospek ke depan. Saat ini pasar masih fokus pada kecepatan pemulihan permintaan, kebijakan impor negara-negara konsumen batu bara terutama China serta ketersediaan dan keterjangkauan sumber energi primer substitusi. TIM RISET CNBC INDONESIA (twg/twg)

Indonesia nickel ore export ban to remain -mining ministry director

INDONESIA will keep in place a ban on the export of nickel ore even as it relaxes exports of some other minerals under revisions to its mining law, the director of minerals at the country’s energy and minerals ministry said on Thursday.

Indonesia’s parliament passed revisions to its mining law last month, allowing miners building smelters to export ore for the next three years. But the revisions stipulated that the government can rule against the export of specific ores under a separate regulation.

“This will not be applicable to nickel, nickel ore exports will continue to be banned,” director Yunus Saefulhak told Reuters by text message.

The new mining law will also allow miners to extend permits and seek expansion of mining areas beyond current legal limits, stoking concern and protests among environmentalists and transparency watchdogs.

Indonesia, once one of the world’s biggest exporters of nickel, banned exports this year while it seeks to develop a full nickel supply chain, starting from extraction, processing into metals and chemicals used in batteries, all the way to building electric vehicles.

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The Indonesian nickel miners’ association (APNI) proposed in April that the country allow exports of nickel ore to cushion the impact on processed nickel exports by global measures to control the coronavirus outbreak, but this was rejected by the Ministry for Maritime Affairs and Investment. (Reporting by Wilda Asmarini; Writing by Fathin Ungku; editing by Ed Davies)

China's Shazhou Electric cancels up to 225,000 mt low-CV Indonesian coal

Author: Jenny Ma, Editor: Daniel Lalor

CHINA's Shazhou Electric Power Limited Company has canceled up to five 45,000 mt Supramax cargoes of 3,400-3,800 kcal/kg NAR Indonesian coal that was due to arrive in June, sources close to the matter said June 3.

That followed the utility getting a notice from Zhangjiagang custom that it had no import quota left, and came on the heels of various measures across China since March 3 to tighten imports, the sources said.

Shazhou Electric gave verbal notice to affected parties late on June 2, a source close to the subject said June 3.

The utility sought three 45,000 mt Supramaxes of 3,400 kcal/kg NAR Indonesian coal and 3,800 kcal/kg NAR Indonesian coal in a tender released in May, sources said.

"Due to the short notice for cargoes loading in June, some of the previously booked vessels were heading towards loading ports," one source said.

Shazhou Electric was not available for comment.

Iron ore surges past $100 mark By Ray Chan

GLOBAL iron ore prices topped the US$100/t level for the first time in 10 months last week on concerns over supplies from Brazil, as the COVID-19 pandemic grows in the iron ore producing regions in the north and south of the country.

The price of 62pc Fe fines delivered to northern China rose 5.4pc to US$102.39, the highest price since last August.

Reuters reports that Brazilian giant Vale managed to reverse a court decision closing mines in the south (where the January 2019 mine wall tragedy happened) because of rising numbers of COVID-19 infections, and in the north where infections are also rising.

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Sources also claim there were hundreds of COVID-19 infections at Vale’s mines in Itabira, in the southern state of Minas Gerais.

Separately an outbreak in the north in Para state, where three Vale mines – S11D, Serra Norte, and Serra Leste – are located, has claimed 64 lives in the nearby town of Parauapebas alone, Reuters reported.

These mines produce much of Vale’s high quality 65pc fines bound for the Chinese and European markets.

In a filing with corporate regulators, Vale SA said that its Itabira iron ore mining site was ordered shut under an order from labor authorities, but that it was able to immediately reverse that order after obtaining a favourable court injunction.

Vale said the injunction determined maintenance of all activities on the site, adding since the start of the COVID-19 outbreak, its priority was to guarantee the safety of its workers.

Fears about the security of Brazilian exports has been rising for the past three weeks, helping push global prices higher and adding to fears of a shortfall in global supplies after heavy rain and floods in January and February slowed shipments.

Chinese steel mills have also been forced to run down their stocks which are down more than 20pc from a year ago, to around 110mt, the lowest since 2016.

The iron oxide content of Chinese iron ore has fallen sharply in the past decade, forcing steel mills to import more and more higher quality ores from Australian and Brazilian mines operated by the big four – Rio Tinto, BHP and Fortescue metals in Australia, and Vale in Brazil.

Coal India output falls 11% to 41 MT in May, coal offtake up at 39.95 MT BS Web Team & PTI | New Delhi

STATE-owned Coal India Ltd (CIL) reported 11.2 per cent decline in production at 41.43 million tonne in May. The company had produced 46.69 million tonne of coal in May 2019.

In a statement the PSU said "CIL as whole produced 41.43 million tonne (MT) of coal in May 2020."

It further said amid a crimped demand for coal, in what would be an encouraging sign for CIL, coal offtake was up at 39.95 MT in May compared to 39.06 MT in April.

Coal sales have expanded by 0.9 MT in May, it said.

Overburden removal (OBR) growth for May 2020 "was 21 per cent at 124.59 M.Cu.M OB removal, compared to year-ago month, as CIL laid aside an additional quantity of 21.52 M.Cu.M extraneous matter during the referred period," it said.

This bodes well for the state-owned coal mining behemoth as OBR is an important performance parameter that removes top soil and lays bare the coal seams for future mining in opencast mines, it said.

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"This is a positive sign and secures options for our future coal output at short notice, once demands picks up," said an official of the company adding "all our coal producing subsidiaries have posted growth in OB removal during May'20 compared to the same month last year."

Coal India accounts for over 80 per cent of domestic fuel output.

Mali’s industrial gold production expected to slump in 2020 Reuters

INDUSTRIAL gold production in Mali is expected to fall by 8.3% year-on-year to 59.77 tonnes

this year compared with 2019 due to falling output at several mines, Mali’s mines and petroleum ministry said on Wednesday.

It said total gold production is expected at 65.7 tonnes in 2020, including 6 tonnes from the artisanal, or small-scale mining sector, compared with 71.1 tonnes a year ago.

Companies operating in Mali’s mining sector includes Barrick Gold, Resolute Mining, Anglogold Ashanti and B2Gold.

Reserves at Anglogold Ashanti’s Sadiola mine is reaching depletion phase, and will produce 832 kg compared with 4.6 tonnes last year, mines ministry official Mamadou Sidibé told Reuters.

He added that output at Barrick’s Morila mine is expected at 1.9 tonnes, compared with 3.5 tonnes the previous year, while Resolute’s Finkolo mine will produce 440 kg compared 6.6 tonnes in 2019.

Other mines, such as Resolute’s Somisy, and B2Gold’s Fekola mines, are expected to boost production, the ministry said. (Reporting by Tiemoko Diallo Writing by Bate Felix; Editing by Aurora

Ellis)

Glencore's Rolleston stops coal production in Australia for two weeks: sources

Author: Jenny Ma, Editor: Pritish Raj

GLENCORE's Rolleston coal mine in Queensland, Australia, has stopped production for two weeks starting June 2, sources told S&P Global Platts June 3. The coal mine was heard to be making losses at the prevailing market price.

IMA-Daily Update Page 29

The move comes weeks before the upcoming 59-day closure of Peabody's Wambo underground thermal and semi-soft coking coal mine in New South Wales, Australia, starting June 19 amid weaker demand, sources said.

The Wambo underground mine sold 2.2 million mt of coal in 2019, according to its company website. Sources said of the total coal sold in 2019, about 1.8 million mt was thermal coal.

After TerraCom cut its production guidance at Blair Athol mine for 2020 and 2021, and Peabody's Wambo mine's upcoming closure, Glencore's Rolleston is the third mine with downward adjustment on production, sources said.

Rolleston mainly produces 5,500 kcal/kg NAR Australian coal targeted for China's market, according to sources. The mine has an annual production capacity of 13.94 million mt of run-of-mine thermal coal, its company website showed.

Glencore declined to comment while Peabody was not available for comments.

Elsewhere, New Hope's Bengalla mine in New South Wales, Australia, has planned for an upcoming maintenance which has been factored into the production numbers of the year, New Hope's spokesperson said June 2. "It is a planned shutdown and has been staged to ensure no impact on the mine's annual production," he added.

The mine has suffered from lower margins and higher run-of-mine stock ever since the five major state-owned utilities were reportedly warned by China's National Development and Reform Commission (NDRC) for fresh Australian coal purchase on May 15, sources said.

"They probably have no space for their run-of-mine stocks," a Singapore-based trader said.

Demand condition

Buyers in China complained about the increasing difficulties to import Australian coal and muted trading activities while sellers noted a dip in enquiries ever since May 15, sources said.

Platts assessed FOB Newcastle 5,500 kcal/kg NAR at $41.50/mt FOB on June 2, down $3/mt as compared to May 15.

In Japan, despite the recent recovery from COVID-19, buyers have no additional demand for coal due to lower power demand amid slow recovery of heavy industries in Japan, several sources said.

"Some reduction in supply has no major impact on coal prices," a trader said.

Seven things you should know about coal mining in 2020 By Yoana Cholteeva

DYNAMICS in the coal energy sector have recently undergone some unusual changes. From declining coal industry jobs under the Trump’s administration in the US to investments in clean coal technologies, we break down everything you need to know about the commodity in 2020.

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Around 1000 US coal mining jobs have been lost during Trump’s administration

While US President Donald Trump has actively led a pro-coal administration since his inauguration in January 2017, US Bureau of Labour statistics shows that while there was a small increase of coal mine jobs straight after his election, there are currently about 1000 fewer positions in the industry compared to three years earlier.

The report demonstrates that seasonally adjusted coal jobs stood at 50,400 in November 2016, before they saw an increase to 50,900 in 2017. Since then, the number of positions has dropped by 300, to 50,600 in 2020. When it comes to non-seasonally adjusted coal positions, they have dropped by 900 this February from 50,700 in November 2016.

Market intelligence company S&P Global also highlighted in an article that, despite the administration’s good intentions for the coal sector, US domestic coal faced big losses from the “persistently low natural gas prices brought on by developments in shale gas drilling.”

China continues to invest in new coal plants

Despite global efforts to ditch fossil fuels and gradually switch to renewable energy sources, China is still heavily investing in the industry. As the country with the highest installed capacity of coal power plants, amounting to over 973,000MW according to Statista, China is still the world’s biggest coal producer.

According to the Global Coal Plant Tracker published by Global Energy Monitor, from January 2018 to June 2019, China has added 43GW of net new coal power capacity to its existing 1,000GW coal fleet while the rest of the world has reduced coal capacity by 8GW.

When it comes to investment, despite the fact that global banks like Goldman Sachs and BNP Paribas are suspending support for coal mines, Asian banks like The Export-Import Bank of China and the Japan Bank for International Cooperation are still providing huge amounts of funding. With credit agencies and private-equity organisations also allocating funding to the Chinese coal industry, the country is far from giving up on its prime electricity source.

Australia is building a new coal mine despite opposition

Coal is Australia’s largest energy resource, with around 60% of the country’s electricity currently produced in coal-fired stations. A total of 25.2GWe of the country’s electricity generating capacity was coal-fired in 2017.

In June 2019, despite protests demanding that the government stop opening new stations and invest in renewables instead, Australia approved the construction of a controversial coal mine to be built by Indian operator Adani.

The Carmichael mine in Queensland’s Galilee Basin was held up for years over environmental approvals, with opponents concerned about the impact of the mine on the nearby Great Barrier Reef and its local ecosystems.

Environmental campaigners also fear that the opening of the Carmichael mine will lead to the opening of six more mines awaiting approval in the area, located 248 miles inland from the east coast.

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Companies are working on the development of clean coal technologies

As burning coal produces about 15 billion tonnes of carbon dioxide each year, according to the World Nuclear Association, using coal in a way that doesn’t add to the atmospheric carbon dioxide levels is one of the industry’s biggest technological challenges. For this reason, a number of companies have tapped into the potential of creating clean coal technologies that rely on technologies like coal washing, nitrogen-oxide burning or gasification, all of which are aimed at making coal-burning less harmful to the environment.

One example, from a company called Clean Coal Technologies, is Pristine-M – a gasification process promising to balance the environmental footprint of coal while boosting the efficiency of coal-burning plants by 33%.

The technology relies on decreasing coal moisture, usually from 30% down to 5%, depending on the need, which increases the coal BTU (energy output produced from combustion) by about 33%.

Coal mining disasters are still a reality

A minimum of 37 people lost their lives in five separate mining accidents in China between October and December 2019, in Guizhou, Sichuan, Shanxi, and Shandong provinces, with the accidents mainly attributed to floods and explosions. This was on the back of 333 deaths recorded in Chinese mine accidents in 2018, according to the Chinese National Coal Mine Safety Administration.

After local officials concluded that the accidents are mostly a result of insufficient safety regulations, the Chinese Government undertook official action in November, promising sweeping new safety measures.

Such disasters are not limited to China either; in 2018, 13 people died in an explosion in a coal mine in the Czech Republic when methane gas ignited, devastating a hard-coal mine near Karvina.

2019 was a good year for mining safety in the US. However, of the 24 miners who died, 11 were in coal mines. South Africa too achieved a record safety year; nevertheless, of the 51 lives tragically lost, 7 were in coal mines.

EU countries are decommissioning the most coal power plants

With Sweden recently unveiling plans to decommission coal two years earlier than its previous deadline in 2022, the country has become the third European nation to give up on coal generation after Belgium and Finland, which waved goodbye to their last coal powered plants in 2016 and 2019, respectively.

Most European countries already have a plan to exit coal in the following years, with France planning to close its last coal-fired facility by 2022, Slovakia and Portugal in 2023, the UK in 2024, Ireland and Italy in 2025. Greece, Hungary, the Netherlands, Finland, and Denmark have also expressed a desire to ditch coal generation this decade.

Coal miners have been found to be especially vulnerable to Covid-19

New data from the US National Institute for Occupational Safety and Health (NIOSH) shows that coal mine workers might be living with more compromised lungs as a result of years of dust inhalation, which makes them especially vulnerable to Covid-19 as the disease mainly targets the respiratory system.

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The NIOSH released information confirming that at least one in 10 US coal miners who worked in mines for at least 25 years or more will get diagnosed with black lung, a type of pneumoconiosis that leaves people with little chance to recover from Covid-19.

Recent statistics also confirmed an unusually high rate of black lung cases in mines located in the Appalachia region in the US, with disease rates climbing to as many as one out of every five coal workers.

These results, coming during the global Covid-19 pandemic, outline the importance of raising awareness of the vulnerability of coal mine workers, as well as recognition of the harmful conditions mine workers around the world are exposed to during their daily work.