Daily News Update Page 1

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Prices skyrocket, here are the prospects for the coal industry in 2021 Harga meroket, begini prospek industri batubara pada 2021 Antam (ANTM) Ready to Boost Gold Sales in 2021 Antam (ANTM) Siap Pacu Penjualan Emas pada 2021 DPR asks the government to consistently ban the export of raw nickel ore DPR Minta Pemerintah Konsisten Larang Ekspor Bijih Nikel Mentah Check out the realization of United Tractors (UNTR) performance for the November 2020 period Simak realisasi kinerja United Tractors (UNTR) periode November 2020 End of Year, Highest Coal at US$ 85/ton, 2021 Could Increase! Akhir Tahun Batu Bara Mentok di US$ 85/ton, 2021 Bisa Naik! Legislators: Ban on Nickel Ore Exports Helps Overcome State Finances Legislator : Larangan Ekspor Bijih Nikel Bantu Atasi Keuangan Negara Rising nickel prices to support project development – report Thiess equity transaction on target for end of 2020, CIMIC Group says Covid impact: Coal India to diversify into non-coal mining areas in 2021 China’s ban on Australian coking coal to benefit India’s steel producers: Ind-Ra Us Coal Is on the up – for Now

Kontan Bisnis Dunia Energi Kontan CNBC Indonesia Bisnis Mining.com Int'l Mining Business Standard The Statesman The Good Men Project

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Daily News Update Page 2

Prices skyrocket, here are the prospects for the coal industry

in 2021 Reporter: Ridwan Nanda Mulyana | Editor:

Wahyu T. Rahmawati

COAL prices are burning again at the end

of 2020. After the reference coal price (HBA) has continued to climb in the last

three months and closed at US$ 59.65 per ton, recently the price of Newcastle

thermal coal futures contract has been above US$ 80 per ton.

Coal entrepreneurs are also happy with

this condition. Executive Director of the Indonesian Coal Mining Association (APBI)

Hendra Sinadia estimates that the upward trend in the black gold commodity price

will continue next year. "This trend is very good for coal entrepreneurs who are more

sustainable and this trend will continue for some time to come," Hendra said when

contacted by Kontan.co.id, Sunday (27/12).

According to Hendra, the increase in coal

prices was caused by several factors. First, the improving economic recovery in a

number of countries, especially economic growth in China as the main market.

Second, the coal market is also boosted by natural factors such as colder winters in

the northern hemisphere, rain and waves in Indonesia, and cyclones in Australia.

Third, the existence of tensions in China's

trade relations with Australia also contributed to heating up the coal price

and market. Hendra predicts that the current price trend will last, at least until

the middle of next year.

Harga meroket, begini prospek industri batubara pada 2021

Reporter: Ridwan Nanda Mulyana | Editor: Wahyu T. Rahmawati

HARGA batubara kembali membara pada

pengujung tahun 2020. Setelah harga batubara acuan (HBA) terus menanjak naik dalam tiga bulan terakhir dan ditutup di level US$ 59,65 per ton, belakangan ini harga kontrak future batubara termal Newcastle sudah berada di atas US$ 80 per ton.

Pengusaha batubara pun semringah atas kondisi ini. Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia memperkirakan, tren kenaikan harga komoditas emas hitam ini akan terus berlanjut pada tahun depan. "Tren ini baik sekali untuk pengusaha batubara yang lebih sustainable dan tren ini akan berlanjut untuk beberapa waktu ke depan," kata Hendra saat dihubungi Kontan.co.id, Minggu (27/12).

Menurut Hendra, kenaikan harga batubara disebabkan oleh beberapa faktor. Pertama, membaiknya pemulihan ekonomi di sejumlah negara, terutama pertumbuhan ekonomi di China sebagai pasar utama. Kedua, pasar batubara juga terdongkrak oleh faktor alam seperti musim dingin yang lebih dingin di belahan bumi utara, hujan dan ombak di Indonesia, serta cyclone di Australia.

Ketiga, adanya ketegangan hubungan perdagangan China dengan Australia juga ikut memanaskan harga dan pasar batu-bara. Hendra memprediksi, tren harga saat ini akan bertahan, paling tidak hingga pertengahan tahun depan.

Daily News Update Page 3

"Furthermore, it is strongly influenced by the discipline of coal entrepreneurs and suppliers, the availability of production equipment, and especially the interference of regulators in many countries in order to drive the economy, meet domestic needs and increase industrial competitiveness," explained Hendra.

Coal price and market movements in 2021 will also depend on how the covid-19 pandemic is handled. With the pandemic still not over, Hendra estimates that the company will still wait and see or be careful in carrying out corporate actions, especially expansion. "Investments for future business development will also be greatly influenced by access to loans which is currently difficult," said Hendra.

Meanwhile, from the production side, the volume in the Work Plan and Budget (RKAB) that has been approved by the Ministry of Energy and Mineral Resources will remain the benchmark. In responding to market movements, the company will later see opportunities to revise the RKAB.

"The company certainly respects the establishment of a national coal production plan and sees future developments because in the middle it is also possible for business actors to be able to submit a revised RKAB," explained Hendra.

In terms of business actors, producers hope that the market and price recovery in the next year will help boost company performance. Demand is expected to be higher, so that production levels can be spurred more than this year.

PT Bumi Resources Tbk (BUMI) also wants to optimize the production capacity of its two subsidiaries, namely PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia. As the largest coal producer, BUMI has a production rate of 90 million tons, with a production ratio of KPC to Arutmin of 2: 1.

"Seterusnya sangat dipengaruhi disiplin pengusaha dan pemasok batubara, keter-sediaan alat produksi, dan terutama campur tangan regulator di banyak negara guna menggerakkan ekonomi, memenuhi kebutuhan dalam negeri dan meningkatkan daya saing industri," terang Hendra.

Pergerakan harga dan pasar batubara pada 2021 juga akan tergantung bagaimana penanganan pandemi covid-19. Dengan pandemi yang masih belum berakhir, Hendra memperkirakan bahwa perusahaan masih akan wait and see atau berhati-hati dalam melakukan aksi korporasi terutama ekspansi. "Investasi untuk pengembangan usaha ke depan akan sangat dipengaruhi juga akses mendapatkan pinjaman yang saat ini sulit," sebut Hendra.

Sedangkan dari sisi produksi, volume dalam Rencana Kerja dan Anggaran Biaya (RKAB) yang telah disetujui oleh Kementerian ESDM tetap akan menjadi patokan. Dalam merespons pergerakan pasar, perusahaan pun nantinya akan melihat peluang untuk melakukan revisi RKAB.

"Bagi pihak perusahaan tentu menghormati penetapan rencana produksi batubara nasional dan melihat perkembangan ke depan karena di pertengahan juga dimungkinkan bagi pelaku usaha untuk dapat mengajukan revisi RKAB," terang Hendra.

Dari sisi pelaku usaha, para produsen ber-harap pemulihan pasar dan harga pada tahun depan bisa ikut mendongkrak kinerja per-usahaan. Permintaan (demand) diharapkan bisa lebih tinggi, sehingga tingkat produksi bisa lebih dipacu dibandingkan tahun ini.

PT Bumi Resources Tbk (BUMI) juga ingin mengoptimalkan kapasitas produksi dari kedua anak usahanya, yakni PT Kaltim Prima Coal (KPC) dan PT Arutmin Indonesia. Sebagai produsen batubara terbesar, BUMI memiliki tingkat produksi sebesar 90 juta ton, dengan rasio produksi KPC berbanding Arutmin sebesar 2:1.

Daily News Update Page 4

BUMI's Director and Corporate Secretary Dileep Srivastava has not yet conveyed the projections for coal production until the close of 2020 or production figures for next year. However, the Bakrie Group coal company is optimistic that it can produce coal at the level of 83 million to 85 million tons.

By looking at the trend of price and market recovery, Dileep is optimistic that he can optimize the production capacity of KPC and Arutmin, compared to this year's production level. Dileep also believes that the increase in coal prices can last in the first quarter of 2021, even more.

"That's our plan. In our opinion, coal can continue to rise in Q1-2021 and maybe longer. We expect coal demand growth in 2021 after weakening in 2020," he told Kontan.co.id, Sunday (27/12).

PT Indika Energy Tbk (INDY) also sees the increasing trend of coal prices as a positive sentiment for next year. INDY Deputy President Director and CEO Azis Armand said that the trend of rising prices was inseparable from the recovery in coal demand, both globally and domestically.

Moreover, as primary energy, coal is still needed because the mix is still dominant. "The dominance of (coal) will decrease later, but it will still have a big contribution as an energy mix," said Azis during INDY's public expose, Thursday (17/12).

INDY also maintains production levels at the level of 30 million tons. Next year, INDY is targeting coal production of up to 31.4 million tons. Production comes from two of its subsidiaries, namely PT Kideco Jaya Agung and Multi Tambangjaya Utama (MUTU).

INDY Director & Group Chief Financial Officer Retina Rosabai revealed, based on the approval given by the Ministry of ESDM, Kideco's coal production plan next year is around 30 million tons. Meanwhile,...

Direktur dan Sekretaris Perusahaan BUMI Dileep Srivastava memang belum menyam-paikan secara pasti proyeksi produksi batubara hingga tutup tahun 2020 maupun angka produksi untuk tahun depan. Namun, perusahaan batubara Bakrie Group ini optimistis bisa memproduksi batubara di level 83 juta ton-85 juta ton.

Dengan melihat tren pemulihan harga dan pasar, Dileep pun optimistis bisa meng-optimalkan kapasitas produksi dari KPC dan Arutmin, dibandingkan dari tingkat produksi tahun ini. Dileep pun yakin peningkatan harga batubara bisa bertahan pada Kuartal I-2021, bahkan lebih.

"Itu rencana kami. Menurut kami, batubara dapat tetap naik pada Q1-2021 dan mungkin lebih lama. Kami mengharapkan pertumbuhan permintaan batubara di 2021 setelah melemah di 2020," ungkapnya ke Kontan.co.id, Minggu (27/12).

PT Indika Energy Tbk (INDY) juga melihat tren kenaikan harga batubara sebagai sentimen positif untuk tahun depan. Wakil Direktur Utama dan CEO INDY Azis Armand mengata-kan bahwa tren kenaikan harga tak lepas dari pemulihan demand batubara baik secara global maupun domestik.

Apalagi sebagai energi primer, batubara pun masih dibutuhkan karena bauran yang masih dominan. "Dominasi (batubara) nanti akan ada penurunan, tapi tetap memiliki kontribusi yang besar sebagai energi mix," kata Azis saat paparan publik INDY, Kamis (17/12) lalu.

INDY pun menjaga tingkat produksi di level 30 juta ton. Pada tahun depan, INDY mem-bidik produksi batubara hingga 31,4 juta ton. Produksi itu berasal dari dua anak usahanya, yakni PT Kideco Jaya Agung dan Multi Tambangjaya Utama (MUTU).

Direktur & Group Chief Financial Officer INDY Retina Rosabai membeberkan, berdasarkan persetujuan yang diberikan oleh Kementerian ESDM, rencana produksi batubara Kideco pada tahun depan sekitar 30 juta ton. Sedangkan...

Daily News Update Page 5

Meanwhile, MUTU is at 1.4 million tons. "For Kideco, the volume may be smaller

than this year, according to the approval obtained from ESDM, which can be

reviewed next year," said Retina.

Meanwhile, for this year, Kideco's coal production by the end of 2020 is estimated

to reach 33 million tons. Higher than the original plan which was around 29 million

tons. Meanwhile, MUTU, the projected production until the end of the year is 1.2

million tons -1.3 million tons.

Quoting Kontan.co.id news, PT Adaro

Energy Tbk (ADRO) is still waiting and seeing while continuing its business

strategy. ADRO Head of Corporate Communication Febriati Nadira said that

the price of coal is difficult to predict, so that the company continues to prioritize

operational excellence to maintain a solid performance.

"Regarding the unpredictable coal price. What Adaro can do is continue to exercise

operational excellence throughout the business chain so that it can produce a

solid operational performance," explained Nadira.

Meanwhile, the Corporate Secretary of PT

Bukit Asam Tbk (PTBA) Apollonius Andwie assessed that the increase in prices was a

positive signal for coal producers. He said, the increase in the price index was

something business players had been waiting for since the downward trend that

occurred starting April 2020.

"Of course, our hope is that this will be a

positive sentiment for a market rebound, in line with the current economic recovery.

For 2021 we are still optimistic that the price index will continue to improve," said

Andwie to Kontan.co.id, Thursday (3/12).

Sedangkan untuk MUTU berada di angka 1,4 juta ton. "Untuk Kideco volumenya mungkin akan lebih kecil dibandingkan tahun ini, sesuai dengan approval yang didapatkan dari ESDM, yang mana itu bisa ditinjau kembali pada tahun depan," kata Retina.

Sementara untuk tahun ini, produksi batu-bara Kideco hingga akhir 2020 diestimasi-kan bisa menyentuh 33 juta ton. Lebih tinggi dari rencana awal yang sekitar 29 juta ton. Sedangkan MUTU, proyeksi produksi hingga tutup tahun sebesar 1,2 juta ton -1,3 juta ton.

Mengutip pemberitaan Kontan.co.id, PT Adaro Energy Tbk (ADRO) masih wait and see sambil tetap meneruskan strategi bisnisnya. Head of Corporate Communi-cation ADRO Febriati Nadira menyampai-kan, harga batubara sulit untuk diprediksi, sehingga pihaknya tetap mengedepankan keunggulan operasional untuk menjaga kinerja yang solid.

"Mengenai harga batu bara tidak bisa diprediksi. Yang dapat Adaro lakukan adalah terus menjalankan keunggulan operasional di seluruh mata rantai bisnis sehingga bisa menghasilkan kinerja operasional yang solid," terang Nadira.

Sedangkan Sekretaris Perusahaan PT Bukit Asam Tbk (PTBA) Apollonius Andwie menilai, kenaikan harga menjadi sinyal positif bagi produsen batubara. Kata dia, kenaikan indeks harga merupakan hal yang dinantikan pelaku usaha sejak tren penurunan yang terjadi mulai April 2020.

"Tentu harapan kami ini menjadi sentimen positif untuk rebound pasar, seiring dengan pemulihan ekonomi yg terjadi saat ini. Untuk tahun 2021 kami masih optimis indeks harga akan terus membaik," kata Andwie ke Kontan.co.id, Kamis (3/12).

Daily News Update Page 6

In terms of production levels, in 2021, the Government through the Ministry of ESDM has set a national coal production plan of 550 million tons, still the same as this year's plan.

Director of Coal Development and Business of the Ministry of ESDM, Sujatmiko, said that the target setting considers the coal production capacity of the company, as well as the recovery from the impact of the Covid-19 pandemic in the country and in the export market.

"This plan is the same as 2020 because of what? We are still considering recovery due to the conditions of the Covid-19 pandemic. This is our basis for determining the 2021 plan," said Sujatmiko.

Dari sisi tingkat produksi, pada tahun 2021, Pemerintah melalui Kementerian ESDM telah menetapkan rencana produksi batubara nasional sebesar 550 juta ton, masih sama seperti rencana di tahun ini.

Direktur Pembinaan dan Pengusahaan Batubara Kementerian ESDM Sujatmiko menyampaikan, penetapan target tersebut mempertimbangkan kapasitas produksi batubara dari perusahaan, serta pemulihan dari dampak pandemi covid-19 di dalam negeri maupun pasar ekspor.

"Rencana ini sama dengan tahun 2020 karena apa? Kami masih mempertim-bangkan recovery akibat kondisi pandemi covid-19. Ini yang menjadi dasar kami untuk menetapkan rencana 2021," kata Sujatmiko.

Antam (ANTM) Ready to Boost Gold Sales in 2021

Finna U. Ulfah

THE STATE-owned mineral mining

company, PT Aneka Tambang Tbk., Will

boost the gold business from upstream to downstream next year in line with the

increasing interest in investing in precious metals.

Based on company data as of September 2020, the issuer coded ANTM shares

recorded unaudited gold sales of 6,967 kilograms or the equivalent of 223,994

troy ounces.

This realization managed to grow significantly by

147 percent compared to gold sales in the second quarter of 2020 which only reached

2,818 kilograms, or the equivalent of 90,600 troy ounces.

Antam (ANTM) Siap Pacu Penjualan Emas pada 2021

Finna U. Ulfah

EMITEN BUMN pertambangan mineral, PT

Aneka Tambang Tbk., akan menggenjot

bisnis emas dari hulu ke hilir pada tahun

depan seiring dengan meningkatnya minat

investasi terhadap logam mulia.

Berdasarkan data perseroan per

September 2020, emiten berkode saham

ANTM itu mencatatkan penjualan emas

unaudited sebesar 6.967 kilogram atau

setara dengan 223.994 troy ounce.

Realisasi itu berhasil tumbuh signifikan

hingga 147 persen dibandingkan dengan

penjualan emas pada kuartal II/2020 yang

hanya mencapai 2.818 kilogram atau

setara dengan 90.600 troy ounce.

Daily News Update Page 7

Thus, cumulatively during the first nine months of this year, ANTM has booked unaudited gold sales of 14,882 kilograms or the equivalent of 478,467 troy ounces.

On the other hand, from the production side, the company also posted positive growth in the third quarter of 2020. ANTM's unaudited gold production from the Pongkor and Cibaliun mines was 430 kilograms or equivalent to 13,825 troy ounces in the third quarter of 2020.

This achievement is up 6 percent compared to gold production in the second quarter of 2020 of 404 kilograms or the equivalent of 12,988 troy ounces. During the first nine months of this year, ANTM has produced 1,280 kilo grams of gold or the equivalent of 41,153 troy ounces.

SVP Corporate Secretary Aneka Tambang Kunto Hendrapawoko said that gold is still one of the company's main commodities which has a significant contribution to the company's revenue.

He considered that the prospect of the gold business is also very good in the future because consumers still value gold as an investment instrument as well as a safe haven.

"Particularly for the domestic market, the company sees a high opportunity for growth in gold sales in the future along with the very high market interest in gold investment ," said Kunto to Bisnis, Thursday (24/12/2020).

He also admitted that the company is preparing a strategy to focus on strengthening Logam Mulia's gold retail business in the domestic market, both in terms of strengthening in terms of supply, infrastructure, technology, organization, funding and product distribution systems.

Dengan demikian, secara kumulatif sepanjang sembilan bulan pertama tahun ini ANTM telah membukukan penjualan emas unaudited sebesar 14.882 kilogram atau setara 478.467 troy ounce.

Di sisi lain, dari sisi produksi, perseroan juga membukukan pertumbuhan positif pada kuartal III/2020. Produksi emas unaudited ANTM dari tambang Pongkor dan Cibaliun sebesar 430 kilogram atau setara dengan 13.825 troy ounce pada kuartal III/2020.

Pecapaian itu naik 6 persen dibandingkan dengan produksi emas periode kuartal II/2020 sebesar 404 kilogram atau setara dengan 12.988 troy ounce. Sepanjang sembilan bulan pertama tahun ini, ANTM telah memproduksi emas 1.280 kilo gram atau setara denagn 41.153 troy ounce.

SVP Corporate Secretary Aneka Tambang Kunto Hendrapawoko mengatakan bahwa emas masih menjadi salah satu komoditas utama perseroan yang memiliki kontribusi signifikan terhadap pendapatan perseroan.

Dia menilai prospek bisnis emas pun sangat baik di masa yang akan datang karena konsumen masih menilai emas sebagai instrumen investasi sekaligus alat lindung nilai atau safe haven.

“Khusus untuk pasar domestik, perseroan melihat tingginya kesempatan pertum-buhan penjualan emas di masa mendatang seiring dengan animo pasar itu terhadap investasi emas sangat tinggi,” ujar Kunto kepada Bisnis, Kamis (24/12/2020).

Dia pun mengaku perseroan tengah menyusun strategi untuk fokus pada penguatan bisnis retail emas Logam Mulia di pasar domestik baik penguatan dari sisi pasokan, infrastruktur, teknologi, organi-sasi, pendanaan serta sistem distribusi produk.

Daily News Update Page 8

To support this market in the midst of the Covid-19 pandemic, the issuer coded ANTM shares is implementing an online precious metal transaction system, a website and chat application, while still carrying out limited boutique operations and sales canvassing in several locations.

In addition, the issuer with the red plate will also maximize the production of gold from the company's mines which will be processed at UBPP Logam Mulia so that it can meet market needs and eventually accelerate the company's performance growth.

On the other hand, Kunto explained that the company is exploring several gold business opportunities from upstream to downstream as an effort to strengthen the company's business portfolio.

In the upstream area, ANTM is currently active in exploration activities in the Company's IUP areas such as in Pongkor, and reviews in several prospect areas such as the Bintang Mountains, Papua and Papandayan in West Java.

"With the current composition of MIND ID members, it also opens opportunities for ANTAM to synergize in the management of national mining assets to support the development of an integrated downstream mineral business," said Kunto.

Meanwhile, in the downstream sector, ANTM continues to strengthen its precious metals business through product innovation and market expansion.

Kunto explained that the company will always be open to opportunities that support the strengthening of the gold commodity business from upstream to downstream which is expected to strengthen the company's profit growth and EBITDA. Editor: Hafiyyan

Untuk menunjang pasar itu di tengah pandemi Covid-19, emiten berkode saham ANTM itu menerapkan sistem transaksi logam mulia secara online website dan aplikasi chat sembari tetap melakukan operasional butik secara terbatas dan sales canvassing di beberapa lokasi.

Selain itu, emiten berpelat merah itu juga akan memaksimalkan produksi emas dari tambang milik perusahaan yang akan diolah di UBPP Logam Mulia sehingga dapat memenuhi kebutuhan pasar hingga akhirnya dapat mengakselerasi pertum-buhan kinerja perseroan.

Di sisi lain, Kunto menjelaskan bahwa perseroan tengah menjajaki beberapa peluang bisnis emas dari hulu ke hilir sebagai upaya memperkuat portofolio bisnis perseroan.

Di hulu, saat ini ANTM aktif melakukan kegiatan eksplorasi di wilayah IUP Perusahaan seperti di Pongkor, dan tinjauan di beberapa daerah prospek seperti di wilayah Pegunungan Bintang, Papua, dan Papandayan di Jawa Barat.

“Dengan komposisi anggota MIND ID saat ini juga membuka kesempatan bagi ANTAM untuk bersinergi dalam penge-lolaan aset pertambangan nasional untuk mendukung pengembangan hilirisasi bisnis mineral yang terintegrasi,” papar Kunto.

Sementara itu di hilir, ANTM senantiasa memperkuat bisnis logam mulia melalui inovasi produk dan perluasan pasar.

Kunto menjelaskan bahwa perseroan akan selalu terbuka terhadap peluang yang mendukung penguatan bisnis komoditas emas dari hulu ke hilir yang diharapkan akan memperkuat pertumbuhan laba dan EBITDA perusahaan. Editor : Hafiyyan

Daily News Update Page 9

DPR asks the government to consistently ban the export of

raw nickel ore Rio Indrawan

THE GOVERNMENT is asked to

consistently implement the provisions on the ban on nickel ore exports that have been running and are obeyed by mining entrepreneurs. For this reason, various supporting provisions so that the export ban policy can be implemented according to the set target date must also be applicable.

Mulyanto, Member of Commission VII DPR, said that oversight of the existing policies must be improved. "I hope the government has coordinated all institutions related to the export ban on raw nickel ore. Don't let this policy be just good on paper but messy at the level of implementation. For this reason, the government needs to strengthen the aspect of supervision so that this policy can be implemented effectively," said Mulyanto , Saturday (26/12).

Mulyanto assessed that the policy to ban the export of raw nickel ore should be monitored so that no party tries to commit violations. "This prohibition is very appropriate as an effort to increase the added value of export commodities to increase state income," he said.

The government, said Mulyanto, must have the courage to make breakthroughs to overcome the growing state financial deficit. One of them is by increasing the selling value of oil and gas commodities and minerals that will be exported. If the government consistently implements this policy, the problem of the financial deficit is considered to be overcome.

DPR Minta Pemerintah Konsisten Larang Ekspor Bijih

Nikel Mentah Rio Indrawan

PEMERINTAH diminta konsisten men-

jalankan ketentuan larangan ekspor bijih nikel yang telah berjalan dan dipatuhi pengusaha tambang. Untuk itu beragam ketentuan pendukung agar kebijakan larangan ekspor itu dapat dilaksanakan sesuai target waktu yang ditetapkan juga harus bisa diterapkan.

Mulyanto, Anggota Komisi VII DPR, meng-ungkapkan pengawasan terhadap kebijak-an yang sudah ada harus ditingkatkan. “Saya berharap pemerintah sudah meng-kordinasikan semua lembaga terkait pelarangan ekspor bijih nikel mentah. Jangan sampai kebijakan ini hanya baik di atas kertas tapi berantakan di tataran pelaksanaan. Untuk itu pemerintah perlu memperkuat aspek pengawasan agar kebijakan ini dapat dilaksanakan secara efektif,” kata Mulyanto, Sabtu (26/12).

Mulyanto menilai kebijakan pelarangan ekspor bijih nikel mentah ini patut diawasi agar tidak ada pihak yang mencoba melakukan pelanggaran. “Pelarangan ini sangat tepat sebagai upaya meningkatkan nilai tambah komoditas ekspor untuk meningkatkan pendapatan negara,” kata dia.

Pemerintah, kata Mulyanto, harus berani membuat terobosan untuk mengatasi defisit keuangan negara yang semakin besar. Salah satunya dengan meningkatkan nilai jual komoditas migas dan minerba yang akan di ekspor. Jika pemerintah konsisten melaksanakan kebijakan ini masalah defisit keuangan dinilai bisa diatasi.

Daily News Update Page 10

"The government should not rely too much

on debt to overcome state finances. After

all, the debt must be paid along with the

interest. If the government survives in this

way, i t will certainly endanger the

country's existence in the future. Indonesia

will be considered weak by creditors,” said

Mulyanto.

For this reason, Mulyanto asked the

government not to lose out to the interests

of foreign businessmen in determining the

mining material export policy. It is

appropriate for the government to build an

equal bargaining position in terms of

cooperation in the use of natural resources.

"This crisis should make us aware of the

need to add value to the wealth we have.

Do not want this wealth to continue to be

exploited. This is because the availability of

resources is very limited. If it is not

managed properly, it will just disappear

without being able to benefit the people,"

said Mulyanto.

As is well known, the Ministry of Energy

and Mineral Resources (ESDM) has

imposed a ban on the export of nickel ore

since January 1, 2020. One of the reasons is

because it is to maintain reserves and also

considers the number of nickel smelters

that have started operating in Indonesia.

(RI)

“Pemerintah jangan terlalu mengandalkan utang untuk mengatasi keuangan negara.

Biar bagaimanapun utang itu harus di-bayar berikut bunganya. Jika pemerintah

bertahan dengan cara seperti ini tentu akan membahayakan eksistensi negara di

masa datang. Indonesia akan dianggap lemah oleh para pemberi utang,” kata

Mulyanto.

Untuk itu Mulyanto minta pemerintah jangan kalah dengan kepentingan peng-

usaha asing dalam menetapkan kebijakan ekspor bahan tambang. Sudah selayaknya

Pemerintah membangun posisi tawar yang setara dalam hal kerjasama pemanfaatan

sumber daya alam.

“Krisis ini harus menyadarkan kita tentang perlunya memberi nilai tambah atas

kekayaan yang kita miliki. Jangan mau kekayaan ini terus dieksploitasi. Sebab

ketersediaan sumberdaya itu sangat terbatas. Jika tidak dikelola dengan baik

maka akan habis begitu saja tanpa bisa memberi manfaat kepada rakyat,” ujar

Mulyanto.

Seperti yang diketahui Kementerian Energi

dan Sumber Daya Mineral (ESDM) sudah berlakukan larangan ekspor komoditas

bijih nikel, sejak berlaku 1 Januari 2020. Salah satu alasannya adalah karena untuk

menjaga cadangan dan juga memper-timbangkan banyaknya smelter nikel yang

mulai beroperasi di Indonesia. (RI)

Daily News Update Page 11

Check out the realization of United Tractors (UNTR)

performance for the November 2020 period

Reporter: Akhmad Suryahadi | Editor: Yudho Winarto

PT UNITED Tractors Tbk (UNTR) has reported performance realization for the period November 2020. As a result, there are a number of business lines that have decreased, some have improved perfor-mance.

Quoting the monthly report uploaded by the Company, Thursday (24/12), the Kompas100 Index constituent issuer recorded a volume of coal sales through its subsidiary, PT Tuah Turangga Agung (TTA), amounting to 587,000 tons in November 2020. This realization was up 15.5% from realization in October 2020 amounting to 508,000 tons.

In detail , sales in November 2020 consisted of 444,000 thermal coal and 143,000 coking coal . If accumulated, UNTR's coal sales during the first 11 months of 2020 amounted to 8.24 million tons, or an increase of 9.83% from the realization of the same period the previous year which was only 7.5 million tons.

In the mining contractor segment through its subsidiary, PT Pamapersada Nusantara, UNTR produces 9.9 million tons of coal, an increase of 4.2% on a monthly basis.

On the other hand, the volume of overburden removal was recorded at 64.2 million bank cubic meters (bcm), down from the stripping volume in October of 66 million bcm.

Simak realisasi kinerja United Tractors (UNTR) periode

November 2020 Reporter: Akhmad Suryahadi | Editor:

Yudho Winarto

PT UNITED Tractors Tbk (UNTR) telah

melaporkan realisasi kinerja untuk periode November 2020. Hasilnya, ada sejumlah

lini bisnis yang mengalami penurunan, ada pula yang kinerjanya membaik.

Mengutip laporan bulanan yang diunggah Perseoran, Kamis (24/12), emiten

konstituen Indeks Kompas100 ini mem-bukukan volume penjualan batubara lewat

anak usahanya, PT Tuah Turangga Agung (TTA), sebesar 587.000 ton pada

November 2020. Realisasi ini naik 15,5% dari realisasi Oktober 2020 yang sebesar

508.000 ton.

Secara rinci, penjualan di November 2020

terdiri atas 444.000 batubara thermal dan 143.000 batubara kokas (coking coal). Jika

diakumulasikan, penjualan batubara UNTR sepanjang 11 bulan pertama 2020 sebesar

8,24 juta ton, atau naik 9,83% dari realisasi periode yang sama tahun sebelumnya yang

hanya 7,5 juta ton.

Di segmen kontraktor tambang lewat anak

usahanya yakni PT Pamapersada Nusantara, UNTR memproduksi 9,9 juta

ton batubara atau naik 4,2% secara bulanan.

Di sisi lain, volume pengupasan lapisan (overburden removal) tercatat sebesar 64,2

juta bank cubic meter (bcm) atau turun dari volume pengupasan bulan Oktober

yakni 66 juta bcm.

Daily News Update Page 12

In accumulation, in 11 months 2020, UNTR

has produced 104.7 million coal with a

volume of overburden of 762.7 million

bcm. These realizations each decreased

12.75% (vs 120 million tonnes of coal in 11

months 2019) and decreased by 16.78%

(vs 916.5 million bcm in 11 months 2019).

In the gold sales segment, UNTR recorded

a gold sales volume through the Martabe

Gold Mine of 21,000 ounces in November

2020. This figure decreased slightly by

4.54% from the sales figure in October

2020 which was 22,000 ounces.

Meanwhile, if accumulated, UNTR's 11-

month gold sales amounted to 299,000

Gold Equivalent Ounces (GEOs), or

decreased by 22.7% from sales figures in

the same period the previous year, namely

386,900 GEOs.

Meanwhile, sales of Komatsu heavy

equipment in the period of November

2020 were 136 units, down 11.6% from

sales in October 2020 which reached 154

units.

In accumulation, Komatsu sales realization

during the 11 months of 2020 was

recorded at 1,481 units, still a 47.9%

decline from the same realization the

previous year, where UNTR sold 2,843

units.

However, sales of Komatsu heavy

equipment until November 2020 have

exceeded the initial sales target set by

UNTR for this year, which is 1400 units.

Secara akumulasi, dalam 11 bulan 2020,

UNTR telah memproduksi 104,7 juta batu-

bara dengan volume pengupasan lapisan

sebesar 762,7 juta bcm. Realisasi ini

masing-masing menurun 12,75% (vs 120

juta ton batubara pada 11 bulan 2019) dan

menurun 16,78% (vs 916,5 juta bcm pada

11 bulan 2019).

Di segmen penjualan emas, UNTR men-

catatkan volume penjualan emas lewat

Tambang emas Martabe sebesar 21.000

ounces pada November 2020. Angka ini

menurun tipis 4,54% dari angka penjualan

di Oktober 2020 yang sebesar 22.000

ounces.

Sementara jika diakumulasikan, penjualan

emas UNTR sepanjang 11 bulan sebesar

299.000 Gold Equivalent Ounces (GEOs),

atau menurun 22,7% dari angka penjualan

di periode yang sama tahun sebelumnya

yakni 386.900 GEOs.

Sementara itu, penjualan alat berat

Komatsu di periode November 2020

sebanyak 136 unit, menurun 11,6% dari

realisasi penjualan pada Oktober 2020

yang mencapai 154 unit.

Secara akumulasi, realisasi penjualan

Komatsu sepanjang 11 bulan 2020

tercatat sebanyak 1.481 unit, masih

menurun 47,9% dari realisasi yang sama

tahun sebelumnya, di mana UNTR menjual

2.843 unit.

Meski demikian, penjualan alat berat

Komatsu hingga November 2020 sudah

melampaui target penjualan awal yang

dipasang UNTR untuk tahun ini, yakni

1400 unit.

Daily News Update Page 13

End of Year, Highest Coal at US$ 85/ton, 2021 Could

Increase! Tirta Citradi, CNBC Indonesia

THE PRICE of the Newcastle coal futures

contract is still in the range of its highest level in the last one and a half years despite experiencing a correction in trading last weekend.

The contract price which is actively traded has decreased by 0.41% compared to the previous trading period to US$ 84.5/ton and is near the highest level since May 2019. Despite slightly strengthening, coal is now able to book 10 consecutive weeks of strengthening, with the total is almost 47%.

Thanks to this impressive performance, year-to-date coal prices have now recorded a strengthening of more than 22% after being in the red zone from the end of March to 24 November.

The ongoing winter in China has made the demand for the jet rock to increase. At the same time, China's local coal supply is running low, causing the price to soar.

The price of Chinese thermal coal for the Qinhuangdao type is 5,500 Kcal/ kg translucent to RMB 728/ton. Whereas the informal target set by the government is only RMB 500 - RMB 570/ton. The tight local coal supply made China relax its import quota policy, but not Australia.

The conflict between China and Australia has heated up because the Covid-19 pandemic has also been one of the triggers for the increase in coal prices. As is known,...

Akhir Tahun Batu Bara Mentok di US$ 85/ton, 2021 Bisa Naik!

Tirta Citradi, CNBC Indonesia

HARGA kontrak futures batu bara Newcastle masih berada di rentang level tertingginya dalam satu setengah tahun terakhir meski mengalami koreksi pada perdagangan akhir pekan lalu.

Harga kontrak yang aktif diperdagangkan tersebut mengalami penurunan sebesar 0,41% dibanding periode perdagangan sebelumnya ke US$ 84,5/ton dan berada di dekat level tertinggi sejak Mei 2019. Meski menguat tipis, batu bara kini mampu mem-bukukan penguatan 10 pekan beruntun, dengan total nyaris 47%.

Berkat kinerja impresif tersebut, harga batu bara secara year-to-date kini men-cetak penguatan lebih dari 22% setelah berada di zon merah sejak akhir Maret hingga 24 November lalu.

Musim dingin yang tengah berlangsung di China membuat permintaan si batu legam mengalami kenaikan. Di saat yang sama pasokan batu bara lokal China justru menipis sehingga membuat harganya melambung tinggi.

Harga batu bara termal China untuk tipe Qinhuangdao 5.500 Kcal/kg tembus RMB 728/ton. Padahal target informal yang dipatok pemerintah hanya di RMB 500 - RMB 570/ton. Ketatnya pasokan batu bara lokal membuat China melonggarkan kebijakan kuota impornya, tetapi tidak untuk Australia.

Konflik antara China dan Australia semakin memanas gegara pandemi Covid-19 juga menjadi salah satu pemicu kenaikan harga batu bara. Seperti diketahui,...

Daily News Update Page 14

As is known, Australia called for an international investigation into the corona virus which originated in China, which eventually became a pandemic.

The relationship between the two countries is fractured, even though both of them are strategic partners. China is Australia's largest export market. In 2018-2019 alone, Australian exports to China reached US$ 116.79 billion, equivalent to 32.6% of the country's total exports.

Launching CNBC International, there are at least eight Australian products targeted by China, namely, barley, wine, red meat, cotton, wood, coal, lobster and iron ore. The entry of Australian coal into a commodity boycotted by China has made Kangaroo Country think about lowering its production target.

Australian coal producers may have to start cutting production if China limits imports from them and this is expected to cause coal export revenues to fall sharply this year.

China is the second largest buyer of Australian thermal coal burned at power plants and metallurgical coal used to make steel . Even though the relatio nship between Australia and China is heating up, the increasing demand for coal in the State of Panda and decreasing output has also helped lift the price of thermal coal globally.

In the future, the International Energy Agency (IEA) projects that demand for coal will increase in 2021. The increase in demand is expected to reach 2.6% compared to this year after being attacked by the Covid-19 pandemic which triggered a massive lockdown and made electricity consumption fall and the wheel s of industry choked up.

Seperti diketahui, Australia menyerukan untuk melakukan penyelidikan inter-nasional terhadap virus corona yang berasal dari China, hingga akhirnya men-jadi pandemi.

Hubungan kedua negara pun retak, padahal keduanya merupakan mitra strategis. China merupakan pasar ekspor terbesar Australia. Pada 2018-2019 saja, ekspor Australia ke China mencapai US$ 116,79 miliar atau setara dengan 32,6% dari total ekspor negara tersebut.

Melansir CNBC International, setidaknya ada delapan produk Australia yang ditarget China, yakni, jelai, wine, daging merah, kapas, kayu, batu bara, lobster, dan bijih besi. Masuknya batu bara Australia ke dalam komoditas yang diboikot China membuat Negeri Kanguru mulai berpikir untuk menurunkan target produksinya.

Produsen batu bara Australia mungkin harus mulai memangkas produksinya jika China membatasi impor dari mereka dan hal ini diperkir memakan menyebabkan pendapatan ekspor batu bara turun tajam tahun ini.

China adalah pembeli terbesar kedua batu bara termal Australia dibakar di pem-bangkit listrik dan batu bara metalurgi digunakan untuk membuat baja. Meskipun hubungan Australia dan China memanas tetapi kebutuhan batu bara Negeri Panda yang naik dan output yang turun turut mengangkat harga batu bara termal secara global.

Ke depan Badan Energi Internasional (IEA) memproyeksikan permintaan batu bara akan naik di 2021. Kenaikan permintaan diperkirakan bakal mencapai 2,6% di-banding tahun ini pasca diserang pandemi Covid-19 yang memicu lockdown secara masif dan membuat konsumsi listrik turun dan roda industri tersendat.

Daily News Update Page 15

Demand for thermal and metallurgical coal is expected to increase to 7.43 billion tonnes in 2021 from 7.24 billion tonnes this year. Obviously this is a positive catalyst for the price of coal.

However, the emergence of a new variant of the Corona B.1.1.7 virus also needs to be watched out because it is not only in the UK that this variant has been reported but has also begun to be found in other countries such as Italy, the Netherlands and even Australia.

This variant is claimed to be 70% more contagious than the variant found at the beginning of the pandemic. When cases of a sharp increase in cases also occur outside the UK and trigger tighter lockdowns in various countries then demand that should improve can be suppressed and prices reverse. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Permintaan batu bara termal dan metalurgi diperkirakan meningkat menjadi 7.43 miliar ton pada tahun 2021 dari 7.24 miliar ton tahun ini. Jelas ini menjadi katalis positif bagi harga batu bara.

Namun munculnya varian baru virus

Corona B.1.1.7 juga perlu diwaspadai karena tidak hanya di Inggris saja varian

tersebut dilaporkan tetapi juga sudah mulai ditemukan di negara lain seperti

Italia, Belanda bahkan Australia.

Varian tersebut diklaim 70% lebih menular ketimbang varian yang ditemukan saat awal pandemi. Ketika kasus kenaikan kasus yang tajam juga terjadi di luar Inggris serta memicu lockdown yang lebih ketat di berbagai negara maka permintaan yang harusnya membaik bisa tertekan dan harga berbalik arah. TIM RISET CNBC

INDONESIA (twg/twg)

Legislators: Ban on Nickel Ore

Exports Helps Overcome State Finances

Desyinta Nuraini

IT IS believed that increasing the selling

value of oil and gas and mineral and coal

commodities to overcome the growing state financial deficit. One of them is by

consistently banning the export of raw nickel ore that the government has set

since the beginning of this year.

Member of Commission VII DPR RI

Mulyanto said the government should not rely too much on debt to handle state

finances. Because after all the debt must be paid along with the interest.

Legislator : Larangan Ekspor

Bijih Nikel Bantu Atasi Keuangan Negara

Desyinta Nuraini

MENINGKATKAN nilai jual komoditas

migas dan minerba yang akan diekspor diyakini bisa mengatasi defisit keuangan negara yang semakin besar. Salah satunya dengan konsisten melarang ekspor bijih nikel mentah yang ditetapkan pemerintah sejak awal tahun ini.

Anggota Komisi VII DPR RI Mulyanto menyebut pemerintah jangan terlalu mengandalkan utang untuk mengatasi keuangan negara. Sebab biar bagaimana-pun utang itu harus dibayar berikut bunganya.

Daily News Update Page 16

"If the government survives in this way (debt) will certainly endanger the

country's existence in the future. Indonesia will be considered weak by its creditors,"

he said in a written statement, Saturday (26/12/2020).

Therefore, adding value to the exported

mineral and coal, according to him, could be a solution to help state finances.

Mulyanto said that the government should build an equal bargaining position in terms

of cooperation in exploiting natural resources.

"This crisis should make us aware of the

need to add value to our wealth. This ban (nickel ore exports) is very appropriate as

an effort to increase the added value of export commodities to increase state

income," he said.

This PKS politician also hopes that the

government will consistently implement the provisions on the ban on nickel ore

exports that have been running and are obeyed by mining entrepreneurs.

According to him, the government must have prepared various supporting

provisions so that the export ban policy can be implemented according to the set

time target.

"I hope the government has coordinated all institutions related to the export ban on

raw nickel ore. Do not let this policy be only good on paper but messy at the

implementation level. For this reason, the government needs to strengthen the aspect

of supervision so that this policy can be implemented effectively," said Mulyanto.

Editor: Miftahul Ulum

"Jika pemerintah bertahan dengan cara seperti ini (utang) tentu akan mem-

bahayakan eksistensi negara di masa datang. Indonesia akan dianggap lemah

oleh para pemberi utang," ujarnya dalam keterangan tertulis, Sabtu (26/12/2020).

Oleh karena itu, memberi nilai tambah

pada minerba yang diekspor menurutnya bisa menjadi solusi untuk membantu

keuangan negara. Mulyanto mengatakan sudah selayaknya pemerintah membangun

posisi tawar yang setara dalam hal kerja-sama pemanfaatan sumber daya alam.

"Krisis ini harus menyadarkan kita tentang

perlunya memberi nilai tambah atas kekayaan yang kita miliki. Pelarangan ini

(ekspor bijih nikel) sangat tepat sebagai upaya meningkatkan nilai tambah

komoditas ekspor untuk meningkatkan pendapatan negara," tegasnya.

Politikus PKS ini pun berharap pemerintah konsisten melaksanakan ketentuan

larangan ekspor bijih nikel yang telah berjalan dan dipatuhi pengusaha tambang.

Menurutnya pemerintah harus sudah menyiapkan beragam ketentuan pen-

dukung agar kebijakan larangan ekspor itu dapat dilaksanakan sesuai target waktu

yang ditetapkan.

"Saya berharap pemerintah sudah meng-koordinasikan semua lembaga terkait

pelarangan ekspor bijih nikel mentah ini. Jangan sampai kebijakan ini hanya baik di

atas kertas tapi berantakan di tataran pelaksanaan. Untuk itu pemerintah perlu

memperkuat aspek pengawasan agar kebijakan ini dapat dilaksanakan secara

efektif," kata Mulyanto. Editor : Miftahul

Ulum

Daily News Update Page 17

Rising nickel prices to support project development – report MINING.com Editor

IN ITS latest industry report, Fitch Solutions forecasts nickel mine production to grow by

8.3% y-o-y in 2021, above the average growth of 5.9% y-o-y experienced over 2010-2019 but not fully replacing the 23.3% expected contraction in 2020’s nickel output.

Growth in the near term will be driven by a recovery in output in the Philippines and Indonesia, Fitch says. In the Philippines, lockdowns and supply chain constraints over the first half of 2020 had reduced output by 27.7%.

Fitch expects this low base effect to thus support growth. In Indonesia, the maintaining of nickel ore export ban had significantly hampered domestic opportunities for miners to sell their product, leading to a decline in production. Fitch expects mineral production to pick up in Indonesia as the country ramps up its nickel smelting and refining capacity. Fitch notes upside risk to its nickel mining growth forecasts depending on how quickly Indonesia will be able to ramp up its downstream capacity.

In the longer term, Fitch forecasts global nickel mine production to grow by an annual average rate of 3.7% y-o-y over 2021-2029, a significant slowdown from the 5.9% y-o-y average achieved over 2010-2019, which was boosted by higher nickel prices at the time and strong Indonesian output before another export ban in 2014.

Daily News Update Page 18

By 2029, Fitch expects global annual nickel production to reach 2.7mnt, up from 2.0mnt in 2020. Indonesia surpassed the Philippines as the largest global producer in 2017 following the introduction of stringent environmental regulations in the latter.

Philippines to regain its spot as the largest global producer

But Fitch believes the tables will turn in 2020 onwards as the Philippines is set to regain its spot as the largest global producer due to a restriction on nickel ore exports in Indonesia leading to a halt to mining operations. The other best-performing major producer will be Australia, which maintains a stable regulatory environment and solid project pipeline. Finally, Russian nickel production will grow at the slowest rate of the top five major producing countries in the coming years as few new projects come online.

Australian nickel production growth will also remain positive over the coming years, due to a healthy project pipeline. Its nickel sector will increasingly gain investor attention as the rising battery trend prompts miners to develop projects in stable operating environments. A more positive price outlook for nickel, underpinned by solid demand growth, will support this view. In the long run, Fitch forecasts, rising nickel prices will support project development as the economics of nickel mine projects becomes increasingly attractive.

Thiess equity transaction on target for end of 2020, CIMIC Group says Posted by Daniel Gleeson

CIMIC Group says it has signed all relevant material documentation including financing

agreements for the sale of 50% of Thiess, one of the world’s largest mining services providers, to funds advised by Elliott Advisors (UK) Ltd.

This encompasses the satisfaction of a number of conditions precedent, including the required regulatory approvals, CIMIC noted.

Back in October, CIMIC announced the deal with Elliott, one of the oldest fund managers of its kind under continuous operation, saying the transaction would strengthen CIMIC’s balance sheet by generating cash proceeds on completion of A$1.7-A$1.9 billion as well as reducing CIMIC’s factoring balance by around A$700 million and CIMIC’s lease liability balance by some A$500 million.

Thiess delivers open pit and underground mining in Australia, Asia, Africa and the Americas, providing services to 25 projects across a range of commodities, CIMIC says. It has a diverse fleet of plant and equipment of more than 2,200 assets, a team of around 14,000 employees and generates annual revenues in excess of A$4.1 billion.

CIMIC noted that transaction completion, including receipt of cash proceeds, is expected to occur prior to the end of 2020.

As previously advised, the price for 50% of the equity interest in Thiess implies an enterprise valuation of approximately A$4.3 billion ($3.3 billion).

Daily News Update Page 19

Covid impact: Coal India to diversify into non-coal mining areas in 2021

STATE-owned Coal India Ltd (CIL) is set to diversify into non-coal mining areas as well as

make major investments in clean technology in 2021 after demand for the dry fuel remained muted for most of this year amid the coronavirus pandemic impacting economic activities.

Against all odds, including the slump in coal demand, the government opened up the country's mining sector for private players by auctioning 19 blocks.

Coal demand across the world is projected to fall by around five per cent this year compared to 2019 while various sectoral challenges are expected to persist in 2021, analysts said.

"In 2021, we will try to get Coal India Ltd (CIL) to diversify into non-coal mining-related areas. It (CIL) will make major investments in sectors other than coal mining so that it is well prepared to make the transition away from fossil fuel.

"So, it (CIL) will make investments in renewable energy, get into aluminium and clean coal technology and will do a lot," Coal Secretary Anil Kumar Jain told PTI.

In the coming year, Jain said CIL is also likely to go ahead with its agenda of achieving one billion tonnes of production target by 2023-24.

CIL may also "go ahead with one billion tonnes agenda. It is getting approvals. It is gearing up to keep enhancing its production which was 603 million tonnes last year. It is taking upon itself bigger and bigger target. It will be able to achieve one billion tonnes (production target) in 2023-24," he said.

Noting that CIL has taken upon itself an investment plan of Rs 2.5 lakh crore, Jain said that out of the proposed outlay, a significant chunk would be spend on clean coal technologies and diversification.

"The rest of it (the investment will be) to increase coal production," he noted.

About 2020, Jain said that auction of "commercial coal blocks was number one achievement (in the coal sector). We amended the Act to ease several things".

The auction of coal blocks for commercial mining witnessed "fierce competition" and the 19 blocks that went under the hammer will generate total revenues of around Rs 7,000 crore per annum and create more than 69,000 jobs once they are operationalised.

As many as 38 mines were put on auction, which also marked opening up of the country's coal sector to private players. The bidding also saw participation of players from sectors like pharma, real estate and infrastructure.

A total of 42 companies participated in the auction and 40 of them were private players. As many as 76 bids were received for 23 mines. Some of the large corporate groups that have bagged blocks include Adani Enterprises, Vedanta, Hindalco Industries and Jindal Power.

According to the secretary, the government facilitated the mining plan and made it eco-friendly to promote ease of business.

Daily News Update Page 20

The coal ministry took initiatives to re-visit old laws with an aim to improve efficiency, ease of doing business, and to open up coal sector to improve domestic coal production and reduce imports.

Prior to amendments in the mining law, there was dominance of public sector companies both in exploration and mining of coal.

The Mineral Concession Rule, 1960 was governing many aspects of coal mining and required amendment in furthering the coal sector reforms.

Noting that the creation of a sustainable development cell was another achievement of the coal ministry, Jain said it will ensure CIL and other companies maintain environmental standards as well as that star rating of mines are done.

"Since coal mining is a core activity we do not want there should be any slackening in our endeavour to maintain the highest environment standards," the secretary said.

Sustainable Development Cell aims to promote environmentally sustainable coal mining and address environmental concerns during the decommissioning or closure of mines. The cell also formulates policy framework for the environmental mitigation measures, including the mine closure fund.

The coal sector also faced rough weather in 2020 as fuel demand slumped due to sluggish economic activities in the wake of the coronavirus pandemic.

A coal ministry official who did not wish to be named said that almost all sectors of the country were hit due to the pandemic and the coal industry was no different. Sale of coal fell as the power sector, a major consumer of the dry fuel, saw a decline amid the lockdown, the official added.

CIL Chairman Pramod Agarwal said the company is planning to produce 650-660 million tonnes of coal this financial year while production of 334 million tonnes was achieved till November.

Regarding coal demand in 2021, Jain said it will depend on many things, including movement of the economy.

Global coal consumption is estimated to have fallen 7 per cent, or over 500 million tonnes, between 2018 and 2020. In 2019, global coal demand decreased 1.8 per cent after two years of growth as power generation from coal weakened globally, including in India.

Analysts opined that there will be a modest rise in demand in 2021 and prices are also expected to firm up.

Coal demand is set to revive by 2021 in India and other Asian nations, including China, which are the major consumers of the fuel, Moody's Investors Service said in a report in October.

Coal use is anticipated to increase 3.8 per cent in 2021. In the medium term (to 2025), India has one of the highest potentials to increase coal consumption as electricity demand rises and more steel and cement are required for infrastructure projects, as per the International Energy Agency said.

Daily News Update Page 21

China’s ban on Australian coking coal to benefit India’s steel producers: Ind-Ra

It expects Australia premium hard coking coal (HCC) CNF prices would be around $120 per

tonne over remaining FY21, except for any weather-related supply disruptions in Australia.

IANS | New Delhi

THE PRODUCTION cost of India’s steel producers using the blast furnace route would

remain contained in the near term due to China’s ban on Australian coking coal, India Ratings and Research (Ind-Ra) said.

Accordingly, the Chinese move will lead to softer coking coal prices which shall directly support EBITDA per tonne accretion of around Rs 2,600 over FY21 for companies using the blast furnace route.

“Such companies are likely to have reduced cost of steel production by around Rs 1,800 per tonne YoY in 2HFY21, supported by the reduced cost of coking coal per tonne of around Rs 7,300,” Ind-Ra said in a report.

As per Ind-Ra, China’s ban has led to negative bias on coking coal prices.

It expects Australia premium hard coking coal (HCC) CNF prices would be around $120 per tonne over remaining FY21, except for any weather-related supply disruptions in Australia.

“Despite China’s healthy steel production growth of 7 per cent YoY in the first 7MFY21, its coking coal imports have significantly reduced by 12 per cent as against an increase of 14 per cent YoY in FY20, reflecting the country’s increased reliance on domestic coking coal.

“Considering the low coking coal imports by China in 7MFY21 and a possible further reduction amid China’s ban on Australian coking coal, an excess supply would build-up unless Australian miners reduce their output considerably.

“Hence, Ind-Ra understands coking coal prices would remained soft although other major coking coal importers such as India, Japan and South Korea’s production levels have recovered them to pre-covid levels,” Ind-Ra added.

Lately, China and Australia were the largest coking coal trade partners in the world.

China’s imports and Australia’s exports, respectively, form 40 per cent and 65 per cent of the world’s overall coking coal trade.

“As Chinese end-users are likely to increase their domestic coal production or import coking coal from countries such as Indonesia, Russia, Canada and the US, Indian buyers would gain more bargaining power with Australian coking coal.

“India and China have been the largest consumers of Australian coking coal, competing with each other and composing 25 per cent and 24 per cent respectively, of Australia’s total metallurgical coal exports.”

Daily News Update Page 22

Us Coal Is on the up – for Now Before his election President Trump promised a new age of US coal. But so far the

industry’s gains look temporary, and its future remains bleak. By Kieran Cooke

DONALD Trump is not afraid of a touch of hyperbole, certainly when he talks about US coal.

“We’ve ended the war on beautiful, clean coal,” he said recently.

As most of the world knows, the idea of clean coal is a contradiction in terms; no matter how you dress it up, coal is dirty.

It is also the fossil fuel that poses the greatest danger to the future of the planet, its burning responsible for vast amounts of climate-changing greenhouse gases.

The idea of clean coal is based on capturing and storing emissions from power plants and other coal-burning facilities. The technology is still at an early stage of development and is at present installed at only a very few sites around the world.

Restoration vow

Trump, who has told his fellow Americans he regards climate change as a hoax and has announced that he intends to withdraw the US from the 2015 Paris Agreement aimed at limiting the rise in global temperatures, came to office vowing to resuscitate his country’s ailing coal industry.

Latest statistics show that a limited revival in the fortunes of US coal is taking place, though energy analysts say this has little to do with the new administration in Washington.

What’s cheering US mining concerns – many of whom have declared bankruptcy or have teetered on the edge of financial collapse in recent years – is a big jump in exports over the past 12 months.

Exports in 2017 are likely to have risen by more than 50% compared to the previous year, bringing in additional revenues of more than $1 billion. India, China, Brazil, Mexico, the Netherlands and Germany have been among the main export markets.

Marginal increase

Overall production from US mines increased by nearly 10% over the year. Trump pledged at election campaign rallies to “bring back coal” and revive thousands of mining jobs; according to the US Bureau of Labor Statistics the number employed in the sector has increased, but only marginally – from 50,000 at the end of 2016 to 51,000 at present.

Energy analysts point out that any revival in US coal is likely to be temporary and has to be set against a long-term decline in the industry. US coal production is down by a third from five years ago; in 2016 coal burning accounted for 30% of US power generation – the lowest percentage on record.

Daily News Update Page 23

Exports form only a small proportion of the market for US coal. The industry is still overwhelmingly dependent on the domestic sector; in 2016 sales within the US were 730 million tons, while exports were 60 million tons.

Over the last ten years the industry has lost nearly half its workforce. As renewable energy projects focused on wind and solar have grown, investors – whether government-led or private – have shown little appetite for sinking more money into coal projects.

The growth of the shale sector and the expansion of gas supplies, often considerably cheaper than coal and demanding less investment in plant infrastructure, have also deterred investors away from coal.

At present there is little sign of any new coal power plants being built in the US, while many older facilities are facing closure.

The market for coal overseas is likely to shrink in the years ahead as more countries seek to tackle problems of air pollution – and meet the challenge of climate change – through limiting the use of coal.

European nosedive

In Europe, the Netherlands, Finland, France, Portugal, Italy and the UK have all said they plan to phase out coal burning by 2030.

China and India, two of the biggest coal users, are investing heavily in renewables, particularly in solar power. In both countries there is growing concern about the serious impact on health of air pollution caused by burning coal.

Before his election to the White House, Trump boasted that by sweeping away various environmental regulations, he would ensure a new age of coal would be born.“We’re going to bring the coal industry back 100%”, he said.

Regulations have been done away with in many areas – to the detriment of the environment. Exports have given the industry a temporary lifeline. But the future for Old King Coal is still bleak. – Climate News Network