Daily News Update Page 1

TABLE OF CONTENTS

No. Title Media Source Page

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

IMA: The bankruptcy of Koba Tin can be a lesson for the mining industry IMA: Kepailitan Koba Tin dapat jadi pelajaran bagi industri tambang Freeport Mine Fully Operates, RI Copper Production Raised 4 Times Tambang Freeport Beroperasi Full, Produksi Tembaga RI Naik 4x Bukit Asam's Efforts to Maintain Profits Upaya Bukit Asam Pertahankan Laba Bumi Resources (BUMI) won the best company for sustainable reporting Bumi Resources (BUMI) raih penghargaan perusahaan terbaik pelaporan berkelanjutan Today Freeport and Mitsubishi Sign MoU for Smelting Expansion Hari Ini Freeport dan Mitsubishi Teken MoU Ekspansi Smelting 30 Smelters Running, RI Nickel Ore Production Jumps 3 Times in 2024 30 Smelter Jalan, Produksi Bijih Nikel RI Melonjak 3x di 2024 IMEF: There needs to be a comprehensive mapping of coal downstream IMEF : Perlu Ada Pemetaan Komprehensif Penghiliran Batu Bara Metso Outotec tackles long-term tailings management task with Larox FFP3716 filter Codelco to keep “Chuqui” open pit going for an extra year Mining output down 2.8% y/y in September Chuquicamata open pit copper mine productivity buys it another year of operations

Kontan CNBC Indonesia Investor Daily Kontan Ruang Energi CNBC Indonesia Bisnis Int'l Mining Mining.com Mining Weekly Int'l Mining

3

5

7

12

13

15

18

19

20

21

22

Daily News Update Page 2

12.

13.

Aurelia snaps up $200m Dargues gold mine FOB Australia premium mid-vol coal flips to premium for first time since November 2019

Australian Mining S&P Global Platts

22

23

Daily News Update Page 3

IMA: The bankruptcy of Koba Tin can be a lesson for the

mining industry Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

THE INDONESIAN Mining Association

(IMA) also responded to reports of the bankruptcy case involving tin mining company PT Koba Tin. This is because these problems can affect the continuity of mineral and coal mining governance in Indonesia.

Just so you know, Koba Tin has a Contract of Work (KK) that has expired since 2013. After that, the company was reported as bankrupt, even though there were still a number of obligations that had not been fulfilled, such as post-mining activities and creditors' payments.

IMA Acting Executive Director, Djoko Widajatno, said that the bankruptcy case experienced by Koba Tin is currently being processed legally. As a result of this problem, Koba Tin is also reportedly undergoing a Postponement of Debt Payment Obligations (PKPU).

"PKPU's decision from Koba Tin will later be a lesson for companies and the mining industry in general," he said, Thursday (12/11).

According to him, the guarantee funds that must be deposited by mining companies, including Koba Tin, will be part of the bailout funds to carry out reclamation and post-mining activities. This process should also be supervised by the government, in this case the Directorate General of Mineral and Coal, Ministry of EMR.

IMA: Kepailitan Koba Tin dapat jadi pelajaran bagi industri

tambang Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

INDONESIAN Mining Association (IMA)

turut menanggapi kabar kasus pailit yang membelit perusahaan tambang timah PT Koba Tin. Ini mengingat masalah tersebut dapat mempengaruhi kelangsungan tata kelola pertambangan minerba di Indonesia.

Asal tahu saja, Koba Tin memiliki Kontrak Karya (KK) yang sudah berakhir sejak 2013 lalu. Setelah itu, perusahaan tersebut dikabarkan pailit, padahal masih ada sejumlah kewajiban yang belum dipenuhi seperti kegiatan pascatambang dan pem-bayaran kreditur.

Pelaksana Harian Direktur Eksekutif IMA Djoko Widajatno mengatakan, kasus pailit yang dialami Koba Tin saat ini sedang diproses secara hukum. Akibat masalah tersebut, Koba Tin juga dikabarkan tengah menjalani Penundaan Kewajiban Pem-bayaran Utang (PKPU).

“Keputusan PKPU dari Koba Tin nantinya akan menjadi pembelajaran bagi per-usahaan dan industri tambang secara umum,” kata dia, Kamis (12/11).

Menurutnya, dana jaminan yang wajib disetor oleh perusahaan tambang, ter-masuk Koba Tin, akan menjadi bagian dari dana talangan untuk melakukan kegiatan reklamasi maupun pascatambang. Proses ini pun semestinya diawasi oleh pemerintah dalam hal ini Ditjen Minerba Kementerian ESDM.

Daily News Update Page 4

In the consensus, if the guarantee fund is insufficient, it will be funded by mutual assistance fees between related stake-holders.

"The reclamation of abandoned ex-mining land has been discussed by the Ministry of EMR, Ministry of Environment and Forestry (KLHK) and the Ministry of Finance about how the bailout funds were obtained," said Djoko.

Reflecting on the case that happened to Koba Tin, Djoko assessed that every mining company should seriously carry out the principles of good corporate governance and environmental social governance (ESG). This is to prevent the company from postponing various obligations, including post -mining obligations.

The government and related stakeholders must also be able to impose strict sanctions and not allow any company to violate their obligations.

In Kontan daily news, 20 June 2020, the Director of Minerba Program Development of the Ministry of EMR Muhammad Wafid said that the realization of Koba Tin's reclamation and post-mining obligations has not yet reached 50%. This company still has to fulfill its obligations even though it is undergoing a legal process and its work contract status has been terminated.

In addition, the problems experienced by Koba Tin also dragged PT Timah Tbk (TINS) to a standstill. This is because TINS owns 25% shares in Koba Tin. Meanwhile 75% of the company's shares are owned by the Malaysia Smelting Group. The fate of the share ownership of TINS, a member of the Kompas100 index, is now unclear following the bankruptcy of Koba Tin.

Dalam konsensusnya, apabila dana jaminan tersebut tidak mencukupi maka

akan didanai oleh iuran gotong royong antar stakeholder terkait.

“Reklamasi lahan bekas tambang yang

terlantar sudah dibicarakan oleh Kemen-terian ESDM, KLHK, dan Kemenkeu

tentang bagaimana dana talangan itu diperoleh,” ungkap Djoko.

Berkaca dari kasus yang menimpa Koba Tin, Djoko menilai, sudah seharusnya tiap

perusahaan tambang menjalankan dengan serius prinsip tata kelola perusahaan dan

environmental social governance (ESG) yang baik. Hal ini untuk menghindarkan

perusahaan tersebut dari penundaan berbagai kewajiban, tak terkecuali

kewajiban pascatambang.

Pemerintah dan stakeholder terkait juga

mesti bisa memberi sanksi yang tegas dan tidak melakukan pembiaran kepada

perusahaan manapun yang melanggar kewajibannya.

Dalam pemberitaan harian Kontan, 20 Juni

2020 lalu, Direktur Bina Program Minerba Kementerian ESDM Muhammad Wafid

bilang, realisasi pemenuhan kewajiban reklamasi dan pascatambang Koba Tin

belum mencapai 50%. Perusahaan ini pun tetap mesti menjalani kewajibannya meski

sedang menjalani proses hukum dan status kontrak karyanya sudah terminasi.

Di samping itu, masalah yang dialami oleh Koba Tin turut menyeret PT Timah Tbk

(TINS). Hal ini mengingat TINS memiliki 25% saham di Koba Tin. Sedangkan 75%

saham perusahaan tersebut dimiliki oleh Malaysia Smelting Group. Nasib kepe-

milikan saham TINS, anggota indeks Kompas100 ini, kini menjadi kurang jelas

seiring kepailitan Koba Tin.

Daily News Update Page 5

TINS Corporate Secretary Muhammad Zulkarnaen said that his party has the attitude to hand over the problems faced by Koba Tin to the authorities, including the commercial court. Basically, TINS always strives to respect the applicable legal process.

"We remain consistent with following the legal process because this has been handled by the

curator," he said, Wednesday (11/11).

Sekretaris Perusahaan TINS Muhammad Zulkarnaen bilang, pihaknya memiliki sikap untuk menyerahkan masalah yang dihadapi Koba Tin kepada pihak berwajib, termasuk pengadilan niaga. Pada dasarnya, TINS selalu berupaya menghormati proses hukum yang berlaku.

“Kami tetap konsisten dengan mengikuti proses hukum karena ini sudah ditangani oleh kurator,” kata dia, Rabu (11/11).

Freeport Mine Fully Operates, RI Copper Production Raised 4

Times Wilda Asmarini, CNBC Indonesia

THE MINISTRY of Energy and Mineral

Resources (MEMR) estimates that copper ore production will triple in 2024 to 9.81 million tons from this year's forecast of only 2.09 million tons.

The estimated copper ore production is stated in the Regulation of the Minister of Energy and Mineral Resources No. 16 of 2020 concerning the Strategic Plan of the Ministry of EMR for 2020-2024 which was stipulated by the Minister of EMR Arifin Tasrif on 18 September 2020 and has been in effect since promulgated on 25 September 2020.

It is estimated that copper ore production will begin to show an increase in 2022 to 5.01 million tons from 2021 of 2.10 million tons. Then it will increase again to 6.52 million tons in 2023 and in 2024 it is even estimated that it will reach 9.81 million tons.

Tambang Freeport Beroperasi Full, Produksi Tembaga RI Naik

4x Wilda Asmarini, CNBC Indonesia

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) memperkirakan produksi bijih tembaga naik hingga tiga kali lipat pada 2024 menjadi 9,81 juta ton dari tahun ini yang diperkirakan hanya sebesar 2,09 juta ton.

Perkiraan produksi bijih tembaga tersebut tercantum dalam Peraturan Menteri Energi dan Sumber Daya Mineral No.16 tahun 2020 tentang Rencana Strategis Kemen-terian ESDM tahun 2020-2024 yang ditetapkan Menteri ESDM Arifin Tasrif pada 18 September 2020 dan berlaku sejak diundangkan pada 25 September 2020.

Produksi bijih tembaga ini diperkirakan mulai menunjukkan adanya peningkatan pada 2022 menjadi 5,01 juta ton dari 2021 sebesar 2,10 juta ton. Lalu naik lagi men-jadi 6,52 juta ton pada 2023 dan pada 2024 bahkan diperkirakan mencapai 9,81 juta ton.

Daily News Update Page 6

The increase in ore production has also increased the amount of ore processed

domestically. In 2024, it is estimated that it will jump to 8.30 million tons from this

year's 1.67 million tons. 2021 is also relatively the same as this year, namely

1.67 million tons. Then in 2022 there will be an increase to 4.20 million tons, then it

will increase again to 5.40 million tons in 2023, and 8.30 million tons in 2023.

Although there has been a surge in the amount of copper ore being produced, the

same thing is not seen in the production of copper concentrate. Although there is an

increase in copper concentrate production in 2024, it is not too significant.

In 2024, concentrate production is estimated to increase to 3.52 million tons

from this year's estimated 2.26 million tons. In 2021, it only edged up to 2.72

million tons, then in 2022, there was a significant increase to 3.58 million tons,

and in 2023 to 3.63 million tons. However, in 2024 it is estimated that it will decrease

again to 3.52 million tons.

Although the production of copper

concentrate in the country continues to increase, concentrate processed

domestically shows no signs of increasing, namely stagnating at only 1 million tonnes

per year. This means that the processing of concentrate in the country is still around

30-40% of the concentrate produced per year.

The increase in copper ore and concentrate production is in line with plans for an

underground mine run by PT Freeport Indonesia. The Freeport Indonesia

underground mine is planned to be fully operational in 2022, producing 1.6 billion

pounds of copper. This year, Freeport's copper production is estimated at...

Meningkatnya produksi bijih tersebut juga meningkatkan jumlah bijih yang diolah di

dalam negeri. Pada 2024 diperkirakan melonjak menjadi 8,30 juta ton dari tahun

ini sekitar 1,67 juta ton. Tahun 2021 juga relatif sama dengan tahun ini yakni 1,67

juta ton. Lalu pada 2022 ada peningkatan menjadi 4,20 juta ton, lalu naik lagi

menjadi 5,40 juta ton pada 2023, dan 8,30 juta ton pada 2023.

Meski ada lonjakan jumlah bijih tembaga yang diproduksi, namun hal serupa tidak

tampak pada produksi konsentrat tembaga. Meski ada kenaikan produksi

konsentrat tembaga pada 2024, namun tidak terlalu signifikan.

Pada 2024 produksi konsentrat diper-kirakan naik menjadi 3,52 juta ton dari

tahun ini yang diperkirakan sebesar 2,26 juta ton. Pada 2021 hanya naik tipis

menjadi 2,72 juta ton, lalu pada 2022 mulai terlihat ada kenaikan cukup besar menjadi

3,58 juta ton, dan pada 2023 menjadi 3,63 juta ton. Namun pada 2024 diperkirakan

turun lagi menjadi 3,52 juta ton.

Walaupun produksi konsentrat tembaga di

dalam negeri terus meningkat, namun konsentrat yang diolah di dalam negeri

terlihat tidak ada tanda-tanda peningkatan, yakni hanya stagnan sebesar 1 juta ton per

tahun. Artinya, pengolahan konsentrat di dalam negeri masih sekitar 30%-40% dari

konsentrat yang diproduksi per tahun.

Peningkatan produksi bijih dan konsentrat

tembaga tersebut sejalan dengan rencana tambang bawah tanah yang dikelola PT

Freeport Indonesia. Tambang bawah tanah Freeport Indonesia itu direncanakan bakal

beroperasi penuh pada 2022 dengan memproduksi 1,6 miliar pon tembaga.

Tahun ini produksi tembaga Freeport diperkirakan...

Daily News Update Page 7

This year, Freeport's copper production is estimated at only 800 million pounds,

because the underground mine is only operating 50-60 percent of capacity, then

in 2021 it will increase to 75 percent of capacity or produce around 1.4 billion

pounds of copper. (wia)

Tahun ini produksi tembaga Freeport diperkirakan hanya 800 juta pon karena

tambang bawah tanah baru beroperasi 50%-60% dari kapasitas, lalu pada 2021

akan naik menjadi 75% dari kapasitas atau memproduksi sekitar 1,4 miliar pon

tembaga. (wia)

Bukit Asam's Efforts to Maintain

Profits Parluhutan Situmorang

PT BUKIT Asam Tbk (PTBA) is believed to

be able to maintain its profit until the end

of this year, even though the volume and

average selling price of coal has decreased.

These gains are underpinned by lower

mining costs and a gradual recovery in

global coal prices.

BRI Danareksa Sekuritas analyst Stefanus

Darmagiri in his research revealed that the

expectation of an improvement in the

company's coal sales volume in the fourth

quarter of this year and the efficiency of

mining costs is expected to support profit

in the last quarter of this year.

Bukit Asam's coal sales volume increase in

the quarter is in line with the demand

growth target from the Chinese market and

other countries that are the company's

new markets.

Meanwhile, the reduction in mining costs is

in line with the reduction in the cost of

transporting coal trains, which has been

discussed with PT Kereta Api Indonesia. As

of the third quarter of 2020, mining costs

contributed around 31% of total costs.

Upaya Bukit Asam Pertahankan

Laba Parluhutan Situmorang

PT BUKIT Asam Tbk (PTBA) diyakini

mampu untuk mempertahankan keun-tungan hingga akhir tahun ini, meskipun

volume dan rata-rata harga jual batu bara turun. Keuntungan tersebut ditopang oleh

penurunan biaya penambangan dan harga batu bara global yang berangsur pulih.

Analis BRI Danareksa Sekuritas Stefanus

Darmagiri dalam risetnya mengungkapkan, ekspektasi mulai membaiknya volume

penjualan batu bara perseroan pada kuartal IV tahun ini dan efisiensi biaya

penambangan diharapkan mendukung laba pada kuartal terakhir tahun ini.

Peningkatan volume penjualan batu bara Bukit Asam pada kuartal tersebut sejalan

dengan target pertumbuhan permintaan dari pasar Tiongkok dan negara lain yang

menjadi pasar baru perseroan.

Sedangkan penurunan biaya penambangan seiring pengurangan biaya pengangkutan

kereta batu bara, dimana hal itu telah dibicarakan bersama PT Kereta Api

Indonesia. Hingga kuartal III-2020, biaya penambangan berkontribusi sekitar 31%

terhadap total biaya.

Daily News Update Page 8

Meanwhile, regarding the implementation of the Omnibus Law on the Job Creation Law, Stefanus said that the law would have an impact on the imposition of a value added tax (VAT) of 10% on coal sales. This tax imposition is actually positive for the company, because it can cut output VAT from input VAT.

Meanwhile, the 0% royalty policy for the downstream coal industry is still under study. However, this policy could have a positive impact on the Bukit Asam mine-mouth power plant. The new regulation can also have a positive impact on the company's coal gasification project.

These various factors prompted BRI Danareksa Sekurit as to maintain its recommendation to buy PTBA shares with a target price of Rp 2,900. The price target reflects the company's business diversifi-cation, such as mine-mouth power plants and coal gasification which will boost the company's production volume. The target price also reflects the PE forecast for 2021 of 10.8 times. Also, it reflects the estimated increase in Bukit Asam's net profit to Rp 3.04 trillion in 2021 compared to this year's estimate of Rp 2.45 trillion and the 2019 realization of Rp 4.05 trillion.

Revenue is also expected to increase to Rp 20.13 trillion in 2021 compared to this year's projection of Rp 17.35 trillion and realization of 2019 worth Rp 21.78 trillion.

On the other hand, Sinarmas Sekuritas analyst Richard Suherman actually revised down Bukit Asam's operational and financial performance targets this year. The cut is based on the company's financial perfor-mance until the third quarter of 2020.

Meanwhile, Bukit Asam's revenue and net profit targets for this year have been lowered from Rp 18.51 trillion and Rp 2.79 trillion to Rp 16.85 trillion and Rp 2.26 trillion respectively. Likewise,...

Sementara itu, mengenai pemberlakuan Omnibus Law UU Cipta Kerja, Stefanus menyebutkan bahwa UU tersebut akan ber-dampak pada pengenaan pajak pertambahan nilai (PPN) sebesar 10% terhadap penjualan batu bara. Pengenaan pajak tersebut justru positif bagi perseroan, karena dapat memotong PPN keluaran dari PPN masukan.

Sedangkan kebijakan royalty 0% untuk industri hilir batu bara memang masih dalam kajian. Namun, kebijakan tersebut bisa berdampak positif bagi pembangkit listrik mulut tambang Bukit Asam. Aturan baru tersebut juga bisa berdampak positif bagi proyek gasifikasi batu bara perseroan.

Berbagai faktor tersebut mendorong BRI Danareksa Sekuritas untuk tetap memper-tahankan rekomendasi beli saham PTBA dengan target harga Rp 2.900. Target harga tersebut merefleksikan diversifikasi bisnis perseroan, seperti pembangkit listrik mulut tambang dan gasifikasi batu bara yang akan mendorong lonjakan volume produksi perseroan. Target harga tersebut juga me-refleksikan perkiraan PE tahun 2021 sebesar 10,8 kali. Pun, mencerminkan perkiraan peningkatan laba bersih Bukit Asam menjadi Rp 3,04 triliun pada 2021 dibandingkan perkiraan tahun ini Rp 2,45 triliun dan realisasi 2019 senilai Rp 4,05 triliun.

Pendapatan juga diharapkan naik menjadi Rp 20,13 tril iun pada 2021 dibandingkan proyeksi tahun ini Rp 17,35 triliun dan realisasi 2019 senilai Rp 21,78 triliun.

Di lain pihak, analis Sinarmas Sekuritas Richard Suherman justru merevisi turun target kinerja operasional dan keuangan Bukit Asam tahun ini. Pemangkasan tersebut berdasarkan performa keuangan perseroan hingga kuartal III-2020.

Adapun target pendapatan dan laba bersih Bukit Asam tahun ini masing-masing di-turunkan dari Rp 18,51 triliun dan Rp 2,79 triliun menjadi Rp 16,85 triliun dan Rp 2,26 triliun. Begitu juga,...

Daily News Update Page 9

Likewise, the estimated revenue and net

profit in 2021, respectively, will be cut

from Rp 20.83 trillion and Rp 3.54 trillion

to Rp 19.71 trillion and Rp 3.24 trillion.

"Seeing the achievement of Bukit Asam's

operational and financial performance

until September, we chose to cut the

company's revenue and net profit target

for 2020-2022. However, we see that the

recovery of the company's coal production

and sales will continue in the next few

quarters, in line with the expectation that

the global coal market will improve after

the Covid-19 pandemic is under control,”

wrote Stefanus in his research.

Therefore, Sinarmas Sekuritas recommen-

ded adding PTBA shares with a target price of Rp 2,300. The target price reflects the

forecast for PE in 2021 to be around 8.1 times and that of 2022 to reach 6.9 times.

The target also reflects the catalyst for a

recovery in the selling price of coal which is supported by increased demand from

China ahead of winter, relaxation of the PSBB, a decrease in the number of Covid-

19 patients, and vaccinations.

Below Expectation

Bukit Asam posted a 44.3 percent decrease

in net profit to Rp 1.72 trillion in the third quarter of 2020 compared to the same

period last year of Rp 3.10 trillion. The decline is in line with the weakening of the

company's revenue from Rp 16.25 trillion to Rp 12.84 trillion. This was influenced by

the decline in the company's coal sales price and volume. The decline in the

company's financial performance is in line with the weakening of coal production

volume from 21.6 million tons to 19.4 million tons.

Begitu juga dengan perkiraan pendapatan dan laba bersih tahun 2021 yang masing-masing dipangkas dari Rp 20,83 triliun dan Rp 3,54 triliun menjadi Rp 19,71 triliun dan Rp 3,24 triliun.

“Melihat pencapaian kinerja operasional dan keuangan Bukit Asam hingga Septem-ber, kami memilih untuk memangkas target pendapatan dan laba bersih per-seroan pada 2020-2022. Namun, kami melihat bahwa pemulihan produksi dan penjualan batu bara perseroan akan berlanjut hingga beberapa kuartal ke depan, seiring dengan ekspektasi mem-baiknya pasar batu bara global setelah pandemic Covid-19 terkendali ,” tulis Stefanus dalam risetnya.

Sebab itu, Sinarmas Sekuritas merekomen-dasikan add saham PTBA dengan target harga Rp 2.300. Target harga tersebut merefleksikan perkiraan PE tahun 2021 sekitar 8,1 kali dan tahun 2022 mencapai 6,9 kali.

Target tersebut juga mencerminkan katalis pulihnya harga jual batu bara yang didukung oleh kenaikan permintaan dari Tiongkok menjelang musim dingin, relaksasi PSBB, penurunan jumlah pasien Covid-19, dan vaksinasi.

Di Bawah Ekspektasi

Bukit Asam membukukan penurunan laba bersih sebesar 44,3% menjadi Rp 1,72 triliun hingga kuartal III-2020 dibanding-kan periode sama tahun lalu Rp 3,10 triliun. Penurunan tersebut sejalan dengan pelemahan pendapatan perseroan dari Rp 16,25 triliun menjadi Rp 12,84 triliun. Hal itu dipengaruhi oleh penurunan harga dan volume penjualan batu bara perseroan. Penurunan kinerja keuangan perseroan sejalan dengan pelemahan volume produksi batu bara dari 21,6 juta ton menjadi 19,4 juta ton.

Daily News Update Page 10

The company's sales also fell from 20.6 million tons to 18.6 million tons by September 2020. Likewise, the stripping ratio has been cut from 4.6 times to 4.4 times.

Meanwhile, the average selling price of coal fell from Rp 775.7 thousand per ton to Rp 680.1 thousand per ton. The realization of this financial performance was below expectations. The new revenue achieve-ment reflects 74% of this year's target and net profit of around 71% of the target.

Meanwhile, Bukit Asam will soon sign a coal gasification project with Air Products and Chemical Inc. and PT Pertamina this November. Therefore, the company will be more expansive next year compared to this year, with an estimated capital expenditure (capex) of more than Rp 2 trillion.

President Director of Bukit Asam Arviyan Arifin said that currently his party is finalizing the legal draft of the coal downstream project cooperation into dimethyl ether (DME). The project, which is located in Tanjung Enim, South Sumatra, is confirmed to be a priority project that the company is working on next year.

"We will sign with Air Products and Pertamina this November. The investment value of around US$ 2.1 billion will go to the country. This is not only important for Bukit Asam, but also for Indonesia in the midst of a pandemic,” he said.

As planned, this factory will process as much as 6 million tons of coal per year and process it into 1.4 million tons of DME. As a result, DME can be used as an alternative fuel to replace liquefied petroleum gas (LPG).

The investment will be fully borne by Air Product as the investor and Pertamina as the off taker or buyer of DME products. As a result,...

Penjualan perseroan juga turun dari 20,6 juta ton menjadi 18,6 juta ton hingga September 2020. Begitu juga dengan rasio pengupasan tanah (stripping ratio) yang terpangkas dari 4,6 kali menjadi 4,4 kali.

Sedangkan rata-rata harga jual batu bara turun dari Rp 775,7 ribu per ton menjadi Rp 680,1 ribu per ton. Realisasi kinerja keuangan tersebut di bawah ekspektasi. Pencapaian pendapatan baru merefleksi-kan 74% dari target tahun ini dan laba bersih sekitar 71% dari target.

Sementara itu, Bukit Asam segera me-nandatangani proyek gasifikasi batu bara dengan Air Product and Chemical Inc beserta PT Pertamina pada November ini. Sebab itu, perseroan akan lebih ekspansif tahun depan dibandingkan tahun ini, dengan perkiraan belanja modal (capital expenditure/capex) lebih dari Rp 2 triliun.

Direktur Utama Bukit Asam Arviyan Arifin mengatakan, saat ini pihaknya melakukan finalisasi draf legal kerja sama proyek hilirisasi batu bara menjadi dimethyl ether (DME). Proyek yang berlokasi di Tanjung Enim, Sumatera Selatan itu dipastikan menjadi proyek prioritas yang digarap perseroan tahun depan.

“Kami akan tanda tangan dengan Air Product dan Pertamina pada November ini. Nilai investasi sekitar US$ 2,1 miliar akan masuk ke negara. Ini bukan hanya penting bagi Bukit Asam, tapi juga Indonesia di tengah pandemi,” kata dia.

Sesuai rencana, pabrik ini akan mengolah sebanyak 6 juta ton batu bara per tahun dan diproses menjadi 1,4 juta ton DME. Hasilnya, DME bisa dimanfaatkan sebagai bahan bakar alternatif pengganti liquefied petroleum gas (LPG).

Investasi sepenuhnya akan ditanggung Air Product selaku investor dan Pertamina bertindak sebagai off taker atau pembeli produk DME. Alhasil,...

Daily News Update Page 11

As a result, Bukit Asam has no significant investment costs because the company is

in charge of supplying coal.

On the other hand, said Arviyan, the company has the option to take part of the

partner's stake in the gasification project. This option can be executed after the

factory is up and running. For information, preparation for the construction of this

project is planned to start in mid-2021 with an operational target of 2025.

"Indeed, in the long term this project will

be in the form of build operation transfer (BOT). After 20 years, this factory will be

owned by a consortium of Bukit Asam and Pertamina,” he explained.

Furthermore, another diversification project that is currently being prepared by

Bukit Asam is the construction of a solar power plant (PLTS). The PLTS project will

be developed at the airport, which is a form of collaboration with PT Angkasa

Pura II. In addition, PLTS will be built on the company's former mining area, namely

Ombilin, West Sumatra.

Bukit Asam Business Development Director Fuad I. Z. Fachroeddin said,

currently, the company is capable of developing small-scale PLTS at Soekarno-

Hatta Airport and will be continued with the development of PLTS at other AP II

airports.

As for PLTS in Ombilin, it is planned to have a capacity of 200 megawatts (MW).

The construction process will be carried out in two stages with the first stage of 100

MW. The company targets PTLS construc-tion to be completed in 2023 or 2024.

Editor: Gora Kunjana

Alhasil, tak ada biaya investasi signifikan yang dibebankan ke Bukit Asam karena

perseroan bertugas memasok batu bara.

Di sisi lain, kata Arviyan, perseroan punya opsi mengambil sebagian saham mitra

dalam proyek gasifikasi tersebut. Opsi ini bisa dieksekusi setelah pabrik beroperasi

dan menghasilkan. Sebagai informasi, persiapan konstruksi proyek ini

direncanakan dimulai pada pertengahan 2021 dengan target operasional tahun

2025.

“Memang jangka panjangnya proyek ini

bentuknya buildoperate- transfer (BOT). Setelah 20 tahun, pabrik ini akan dimiliki

konsorsium Bukit Asam dan Pertamina,” terang dia.

Lebih lanjut, proyek diversifikasi lain yang tengah disiapkan Bukit Asam adalah

pembangunan pembangkit listrik tenaga surya (PLTS). Proyek PLTS akan di-

kembangkan di bandara, yang merupakan bentuk kolaborasi dengan PT Angkasa

Pura II. Selain itu, PLTS akan dibangun di lahan bekas tambang perseroan, yakni

Ombilin, Sumatera Barat.

Direktur Pengembangan Usaha Bukit Asam Fuad I. Z. Fachroeddin mengatakan, saat

ini, perseroan mampu mengembangkan PLTS skala kecil di Bandara Soekarno-

Hatta dan akan dilanjutkan dengan pengembangan PLTS di bandara milik AP II

lainnya.

Adapun untuk PLTS di Ombilin diren-

canakan berkapasitas 200 megawatt (MW). Proses konstruksi bakal dilakukan

dua tahap dengan tahap pertama sebanyak 100 MW. Perseroan menargetkan pem-

bangunan PTLS bisa rampung pada 2023 atau 2024. Editor : Gora Kunjana

Daily News Update Page 12

Bumi Resources (BUMI) won the best company for sustainable

reporting Reporter: Khomarul Hidayat | Editor:

Khomarul Hidayat

PT BUMI Resources Tbk (BUMI) received

an award as the best company with an A+

score in sustainability report which

includes governance, environmental and

social (ESG) reporting.

The award was given by the Foundation

for International Human Rights Reporting

Standard (FIHRRST) on Tuesday (10/11),

through the Zoom webinar platform for a

study conducted for all public companies

in Indonesia that have published their

sustainability reports in 2019.

The study conducted included conformity

assessment of Financial Services Authority Regulation (POJK) No. 51 of 2017

concerning the Implementation of Sustainable Finance for Financial Service

Institutions, Issuers, and Public Companies. In this regulation, OJK provides guidelines

for public companies to disclose their sustainability performance, whereby in

2021, public companies in Indonesia are required to report this performance.

The study conducted also assesses the

suitability of sustainability reports with international standards, namely the Global

Reporting Initiative (GRI). The study was supported by the National Development

Planning Agency (Bappenas), the Indonesia Stock Exchange, and the United Nations

Development Program (UNDP).

Bumi Resources (BUMI) raih penghargaan perusahaan terbaik

pelaporan berkelanjutan Reporter: Khomarul Hidayat | Editor:

Khomarul Hidayat

PT BUMI Resources Tbk (BUMI) mene-

rima penghargaan sebagai perusahaan terbaik dengan skor A+ dalam pelaporan keberlanjutan (sustainability report) yang meliputi pelaporan tata kelola, lingkungan dan sosial (ESG).

Penghargaan diberikan Foundation for International Human Rights Reporting Standard (FIHRRST) pada Selasa (10/11), melalui platform Zoom webinar atas studi yang dilakukan bagi seluruh perusahaan terbuka di Indonesia yang telah mener-bitkan laporan keberlanjutannya pada tahun 2019.

Studi yang dilakukan meliputi penilaian kesesuaian atas Peraturan Otoritas Jasa Keuangan (POJK) No. 51 Tahun 2017 Tentang Penerapan Keuangan Berkelan-jutan Bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik. Dalam peraturan tersebut, OJK memberikan panduan bagi perusahaan terbuka untuk mengungkap-kan kinerja keberlanjutannya, dimana pada tahun 2021, perusahaan terbuka di Indonesia wajib melaporkan kinerja tersebut.

Studi yang dilakukan juga menilai kesesuaian laporan keberlanjutan dengan standar internasional, yakni Global Reporting Initiative (GRI). Studi didukung oleh Badan Perencanaan Pembangunan Nasional (Bappenas), Bursa Efek Indonesia, dan United Nations Develop-ment Programme (UNDP).

Daily News Update Page 13

The results of this study also reveal

interesting findings on the sustainability

aspect, namely, only 55% of sustainability

reports have met more than 80% of the

POJK 51/2017 criteria, only 10% of public

companies have published sustainability

reports in 2019. Only 30% of sustainability

reports have verified by an independent

party, and only 9% of the sustainability

reports disclose human rights policies

(HAM).

In a written statement, Thursday (12/11),

Bumi Resources President Director Saptari

Hoedaja stated, BUMI has started pre-

paring sustainability reports since 2016

based on management awareness of the

importance of transparency and balanced

disclosure of information by adopting

world standards. Namely, ISO 26000

covers 7 core sustainability subjects,

namely good governance, human rights,

labor practices, fair operating practices,

environment , consumer issues and

community involvement and development.

"BUMI and all business units will continue

to realize sustainable CSR programs, good

and transparent GCG implementation,

excel in improving the quality of the

environment and provide positive benefits

for the community, local government and

the state while contributing to meeting

sustainable development targets," said

Saptari in a written statement.

Hasil studi ini juga mengemukakan temuan-temuan menarik pada aspek

keberlanjutan, yakni, hanya 55% laporan keberlanjutan telah memenuhi lebih dari

80% kriteria POJK 51/2017, baru 10% perusahaan publik yang menerbitkan

laporan keberlanjutan tahun 2019. Hanya 30% laporan keberlanjutan yang

diverifikasi oleh pihak independen, serta hanya 9% laporan keberlanjutan yang

mengungkapkan kebi jakan hak asasi manusia (HAM).

Dalam keterangan tertulis, Kamis (12/11),

Presiden Direktur Bumi Resources Saptari Hoedaja menyatakan, BUMI sudah me-

mulai penyusunan laporan keberlanjutan sejak tahun 2016 dengan didasari oleh

kesadaran manajemen akan pentingnya arti transparansi dan pengungkapan infor-

masi yang seimbang dengan mengadopsi standar dunia. Yakni, ISO 26000 meliputi 7

subyek inti sustainability yaitu good governance, human rights, labor practice,

fair operating practices, environment, consumer issues and community involve-

ment and development.

“BUMI dan seluruh unit usaha akan terus mewujudkan program-program CSR yang

berkelanjutan, implementasi GCG yang baik dan transparan, unggul dalam

peningkatan kualitas lingkungan hidup dan memberikan manfaat posit if bagi

masyarakat , pemerintah daerah dan negara sekaligus berkontribusi dalam

pemenuhan target-target pembangunan berkelanjutan," ujar Saptari dalam kete-

rangan tertulis.

Daily News Update Page 14

Today Freeport and Mitsubishi Sign MoU for Smelting

Expansion Godang

THE SIGNING of PT Freeport Indonesia and Mitsubishi Material Corporation regarding the MoU for PT Smelting's Expansion will be carried out Friday (11/13/2020).

Through the MoU for PT Smelting's Expansion to ensure the continuation of the collaboration between PT Freeport Indonesia and Mitsubishi Material Corporation to process ore from the gold mine owned by Freeport in Papua.

"The plan is to hold the signing of PT Freeport Indonesia and Mitsubishi Material Corporation regarding the MoU for PT Smelting's Expansion via Video Conference on Friday afternoon (11/13/2020)," said officials at Minerba to ruangenergi.com, Friday morning (13/11/2020).

Freeport Indonesia spokesman Riza Pratama told ruangenergi.com a brief comment on this matter. "I'll check first," said Riza briefly.

According to ruangenergi.com's records, PT Smelting is a refinery in which Mitsubishi Materials owns 60.5 percent of its shares. The remaining 25 percent is owned by PT Freeport Indonesia, a business unit of the mining company from the United States, Freeport-McMoRan Inc, then 9.5 percent by Mitsubishi Corporation Unimetal Ltd, and 5 percent by Nippon Mining and Metals Co., Ltd. As much as 40 percent of Freeport Indonesia's copper concentrate is supplied to PT Smelting.

Hari Ini Freeport dan Mitsubishi Teken MoU Ekspansi Smelting

Godang

PENANDATANGANAN PT Freeport

Indonesia dan Mitsubishi Material Corporation mengenai MoU Ekspansi PT Smelting akan dilaksanakan Jumat (13/11/2020).

Melalui MoU Ekspansi PT Smelting ini guna memastikan kelanjutan kerjasama antara PT Freeport Indonesia dan Mitsubishi Material Corporation untuk mengolah ore dari tambang emas milik Freeport yang ada di Papua.

“Rencananya akan digelar Penanda-tanganan PT Freeport Indonesia dan Mitsubishi Material Corporation mengenai MoU Ekspansi PT Smelting via Video Conference pada Jumat siang ini (13/11/2020),” kata petinggi di minerba kepada ruangenergi.com, Jumat pagi (13/11/2020).

Juru bicara Freeport Indonesia Riza Pratama kepada ruangenergi.com memberi komentar singkat atas hal ini.

“Saya cek dulu ya,” kata Riza singkat.

Dalam catatan ruangenergi .com, PT Smelting adalah pabrik pemurnian di mana 60,5 persen sahamnya dimiliki oleh Mitsubishi Materials. Sisanya sebesar 25 persen dimiliki oleh PT Freeport Indonesia, unit usaha perusahaan tambang asal Amerika Serikat, Freeport-McMoRan Inc, kemudian 9,5 persen oleh Mitsubishi Corporation Unimetal Ltd, serta 5 persen oleh Nippon Mining and Metals Co, Ltd. Sebanyak 40 persen konsentrat tembaga Freeport Indonesia dipasok kepada PT Smelting tersebut.

Daily News Update Page 15

PT Freeport Indonesia (PTFI) is building a new copper smelter in Gresik, East Java as a condition for extending mining operations from a Contract of Work (KK) to a Special Mining Business License (IUPK).

This new smelter was originally targeted to be completed in 2023, but unfortunately until July 2020 the achievement was only 5.86%. After briefly asking for a postponement of the operating period of this new smelter, Freeport McMoran President and CEO Richard Adkerson in October 2020, suggested that PTFI need not build a new smelter, but only expand the existing smelter in Gresik which is operated by PT Smelting.

PT Freeport Indonesia (PTFI) tengah membangun smelter tembaga baru di Gresik, Jawa Timur sebagai syarat perpanjangan operasional tambang dari Kontrak Karya (KK) menjadi Izin Usaha Pertambangan Khusus (IUPK).

Smelter baru ini awalnya ditargetkan bakal rampung pada 2023 mendatang, namun sayangnya sampai Juli 2020 pencapaian-nya baru 5,86%. Setelah sempat meminta penundaan masa beroperasi smelter baru ini, President dan CEO Freeport McMoran Richard Adkerson di bulan Oktober 2020, mengusulkan agar PTFI tidak perlu membangun smelter baru, melainkan hanya ekspansi smelter yang telah ada di Gresik yang dioperasikan PT Smelting.

30 Smelters Running, RI Nickel Ore Production Jumps 3 Times

in 2024 Wilda Asmarini, CNBC Indonesia

THE INDONESIAN government continues to intensify the downstreaming of minerals and coal in order to get more profit than just digging and selling raw mines. One of the mineral commodities whose down-stream industry is rapidly progressing is nickel.

A total of 30 new nickel smelters are currently being built. In fact, not only nickel ore smelters, but also other derivative factories such as stainless steel to battery components are also being built.

This of course requires more nickel ore to be produced. This has also been included in the government's strategic plan.

30 Smelter Jalan, Produksi Bijih Nikel RI Melonjak 3x di 2024

Wilda Asmarini, CNBC Indonesia

PEMERINTAH Indonesia terus meng-

gencarkan hilirisasi mineral dan batu bara agar memperoleh keuntungan lebih banyak dibandingkan hanya menggali dan menjual tambang mentah. Salah satu komoditas mineral yang pesat kemajuan industri hilirnya yaitu nikel.

Sebanyak 30 fasilitas pengolahan dan pemurnian (smelter) nikel baru kini sedang dibangun. Bahkan, tak hanya smelter bijih nikel, namun pabrik turunan lainnya seperti stainless steel hingga komponen baterai juga tengah dibangun.

Hal tersebut tentunya membutuhkan lebih banyak bijih nikel yang harus diproduksi. Ini pun telah masuk dalam rencana strategis pemerintah.

Daily News Update Page 16

Based on the Regulation of the Minister of Energy and Mineral Resources No. 16 of 2020 concerning the Strategic Plan of the Ministry of EMR for 2020-2024, nickel ore production is estimated to nearly triple to 71.40 million tonnes in 2024 from this year of around 19.31 million tonnes.

This Minister of EMR stipulated Minister of EMR Arifin Tasrif on 18 September 2020 and is in effect since it was promulgated on 25 September 2020.

The increase in nickel ore production began to be seen in 2021 to 30.10 million tons, then increased again to 59.94 million tons in 2020, and 71.74 million tons in 2023.

In line with the increase in nickel ore production, ore processed in the country has also increased. Domestically processed ore is targeted to increase to 52.14 million tons in 2024 from 12.77 million tons in 2020.

This means that even though the nickel ore produced is not fully processed in domestic smelters, there is an increase in the ratio of nickel ore processed in domestic smelters to 73% in 2024 from 2020 to around 66%.

Based on the data from the Minister of EMR, ore processed domestically is targeted to increase to 21.32 million tons in 2021, then 43.58 million tons in 2022, and 52.61 million tons in 2023.

These numbers are indicators in order to measure the optimal availability of minerals to meet the needs of the processing industry and other derivative industries.

"The ratio of the amount of minerals to be processed domestically to production is to measure how much minerals can be processed domestically in the context of increasing added value compared to the total production of these mineral types," said the EMR Ministerial Regulation.

Berdasarkan Peraturan Menteri Energi dan Sumber Daya Mineral No.16 tahun 2020 tentang Rencana Strategis Kementerian ESDM tahun 2020-2024, produksi bijih nikel diperkirakan naik hampir tiga kali lipat menjadi 71,40 juta ton pada 2024 dari tahun ini sekitar 19,31 juta ton.

Permen ESDM ini ditetapkan Menteri ESDM Arifin Tasrif pada 18 September 2020 dan berlaku sejak diundangkan pada 25 September 2020.

Peningkatan produksi bijih nikel mulai terlihat pada 2021 menjadi 30,10 juta ton, lalu naik lagi menjadi 59,94 juta ton pada 2020, dan 71,74 juta ton pada 2023.

Sejalan dengan peningkatan produksi bijih nikel, bijih yang diolah di dalam negeri pun mengalami peningkatan. Bijih yang diolah di dalam negeri ditargetkan naik menjadi 52,14 juta ton pada 2024 dari 12,77 juta ton pada 2020 ini.

Ini artinya, meski pun belum sepenuhnya bijih nikel yang diproduksi itu diolah di smelter dal am negeri , namun terjadi peningkatan rasio bijih nikel yang diolah di smelter di dalam negeri menjadi 73% pada 2024 dari 2020 sekitar 66%.

Berdasarkan data dari Permen ESDM ter-sebut, bijih yang diolah di dalam negeri ditargetkan naik menjadi 21,32 juta ton pada 2021, lalu 43,58 juta ton pada 2022, dan 52,61 juta ton pada 2023.

Angka-angka tersebut merupakan indikator dalam rangka mengukur optimalnya ketersediaan mineral untuk memenuhi kebutuhan industri pengolahan dan industri turunan lainnya.

"Rasio jumlah mineral untuk diproses dalam negeri terhadap produksi untuk mengukur seberapa besar mineral yang dapat diolah di dalam negeri dalam rangka peningkatan nilai tambah dibandingkan dengan total produksi dari jenis mineral tersebut," kata Peraturan Menteri ESDM tersebut.

Daily News Update Page 17

The utilization of refined nickel smelters such as ferronickel and Nickel Pig Iron (NPI) in 2024 is targeted to increase to 75 percent from 70 percent this year, and nickel matte to 95 percent from 90 percent this year.

Previously, the Special Staff of the Minister of EMR for Mineral and Coal Management Irwandy Arif said that of the 48 smelters currently being built and targeted to operate in 2024, as many as 30 are nickel smelters.

Of the 30 nickel smelters that are being built, 13 have progressed more than 90%, then nine smelters have achieved 30-90% progress, and eight smelters have progressed less than 30%.

Apart from nickel, there are eight bauxite smelters, where two smelters have a performance of more than 90%, two smelters 30% -90%, and four smelters less than 30%. Then, there are four copper smelters under construction, of which two smelters have progressed more than 90% and two less than 30%.

Finally, iron, manganese, lead and zinc smelters, of the six smelters currently being built, there are three smelters with more than 90% achievement and three others between 30%-90%.

According to him, the construction of the smelter was delayed due to the Covid-19 pandemic which limited the mobility of workers.

However, not only nickel smelters, but five smelters with high pressure acid leaching (HPAL) technology which is the raw material for battery components are also targeted to operate in 2023. This was conveyed by the Director of Mineral Development and Business of the Ministry of EMR Yunus Saefulhak to CNBC Indonesia at the end of last October.

Adapun utilisasi smelter nikel olahan seperti feronikel dan Nickel Pig Iron (NPI) pada 2024 ditargetkan naik menjadi 75% dari tahun ini 70%, dan nickel matte men-jadi 95% dari tahun ini 90%.

Sebelumnya, Staf Khusus Menteri ESDM Bidang Tata Kelola Mineral dan Batubara Irwandy Arif mengatakan dari 48 smelter yang tengah dibangun saat ini dan di-targetkan beroperasi pada 2024 men-datang, sebanyak 30 smelter merupakan smelter nikel.

Dari 30 smelter nikel yang tengah di-bangun, 13 smelter kemajuannya lebih dari 90%, lalu sembilan smelter capaiannya 30%-90%, dan delapan smelter kemajuan-nya kurang dari 30%.

Selain nikel, ada delapan smelter bauksit, di mana dua smelter capaiannya lebih dari 90%, dua smelter 30%-90%, dan empat smelter kurang dari 30%. Lalu, ada empat smelter tembaga yang tengah dibangun, di mana dua smelter progress-nya lebih dari 90% dan dua lagi kurang dari 30%.

Terakhir, smelter besi, mangan, timbal dan seng, dari enam smelter yang tengah dibangun, ada tiga smelter yang capaian-nya lebih dari 90% dan tiga lainnya antara 30%-90%.

Menurutnya, pembangunan smelter ter-sebut tertunda karena adanya pandemi Covid-19 yang membatasi mobilitas pekerja.

Namun, tak hanya smelter nikel, lima smelter dengan teknologi high pressure acid leaching (HPAL) yang merupakan bahan baku komponen baterai juga di-targetkan bisa beroperasi pada 2023. Hal tersebut disampaikan Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak kepada CNBC Indonesia pada akhir Oktober lalu.

Daily News Update Page 18

If the raw materials for these battery components are available in the country, then Indonesia's plan to build a lithium battery factory is not impossible. (wia)

Bila bahan baku komponen baterai ini telah tersedia di Tanah Air, maka rencana Indonesia untuk membangun pabrik baterai lithium bukanlah hal mustahil. (wia)

IMEF: There needs to be a comprehensive mapping of coal

downstream Denis Riantiza Meilanova

CHAIRMAN of the Indonesian Mining and

Energy Forum (IMEF) Singgih Widagdo assessed that a comprehensive mapping is needed for the development of coal downstream.

In order to encourage coal removal, the government has prepared a number of incentives, both fiscal and non-fiscal. One of the fiscal incentives provided is the imposition of royalties of up to zero percent for coal commodities used for the develop-ment or utilization of domestic coal.

According to Singgih, giving these incentives will not necessarily accelerate downstream development because until now there is no clear roadmap regarding the direction of coal downstream develop-ment.

"This downstreaming is a chemical industry. Its business character is different from the core business of the mining industry, so it should not be [given] zero percent royalties, but there is data first, mapping demand from the government," he told Bisnis, Thursday (12/11/2020).

Market mapping for downstream products must be ascertained and regulated by the government before it can be used as a basis for business calculations for mining business actors. Regardless of this,...

IMEF : Perlu Ada Pemetaan Komprehensif Penghiliran Batu

Bara Denis Riantiza Meilanova

KETUA Indonesian Mining and Energy

Forum (IMEF) Singgih Widagdo menilai perlu adanya pemetaan yang komprehensif untuk pengembangan penghiliran batu bara.

Guna mendorong penghiliran batu bara, pemerintah menyiapkan sejumlah insentif, baik fiskal maupun nonfiskal. Salah satu insentif fiskal yang diberikan yakni berupa pengenaan royalti hingga nol persen untuk komoditas batu bara yang digunakan untuk pengembangan atau pemanfaatan batu bara di dalam negeri.

Menurut Singgih, pemberian insentif ter-sebut tidak serta merta akan mengakselerasi pengembangan penghiliran sebab hingga saat ini belum ada roadmap yang jelas mengenai arah pengembangan penghiliran batu bara.

"Penghiliran ini merupakan chemical industry. Karakter bisnisnya beda dengan core business industri tambang, maka semestinya bukan sebatas [diberi] royalti nol persen, tetapi ada data dulu, pemetaan demand dari pemerintah," katanya kepada Bisnis, Kamis (12/11/2020).

Pemetaan pasar untuk produk penghiliran harus dipastikan dan diatur oleh pemerintah sebelum dapat dijadikan dasar perhitungan bisnis pelaku usaha pertambangan. Tanpa memperhatikan hal tersebut,...

Daily News Update Page 19

Regardless of this, the implementation of downsizing cannot be successful.

Apart from that, the trading system for the transportation of downstream products and the mapping of the types of coal downstream development also need to be considered.

"What kind of development is it? I think the zero percent royalty is not for briquette [removal], but for a larger level of investment, such as coal to liquefaction, coal gasification," he said.

He also considered that the development of coal extraction should not be developed by mining business actors, but also by the chemical industry.

"If the aim is to increase domestic demand, in my opinion, this will be opened not only for the coal industry, but for the chemical industry that wants to do that. For coal, there is only a matter of buying and selling transactions," he said. Editor: Zufrizal

Tanpa memperhatikan hal tersebut, imple-mentasi penghiliran tidak bisa berhasil.

Selain itu, tata niaga transportasi produk penghiliran dan pemetaan jenis pengem-bangan penghiliran batu bara juga perlu menjadi perhatian.

"Jenis pengembangannya seperti apa. Saya kira royalti nol persen bukan untuk [penghiliran] briket, melainkan untuk level investasi yang lebih besar, seperti coal to liquefaction, coal gasification," katanya.

Dia juga menilai bahwa pengembangan penghiliran batu bara tak harus dikem-bangkan oleh pelaku usaha tambang, tetapi juga bisa dikembangkan oleh industri kimia.

"Kalau memang tujuannya untuk memper-besar kebutuhan dalam negeri, menurut saya, ini dibuka bukan hanya untuk industri batu bara, melainkan untuk indusri kimia yang mau melakukan itu. Untuk batu baranya kan tinggal masalah transaksi jual beli," katanya. Editor : Zufrizal

Metso Outotec tackles long-term tailings management task with Larox FFP3716 filter

Posted by Daniel Gleeson

METSO Outotec says its newest addition to the FFP filter range, the Larox® FFP3716 filter,

comes with compact plate pack design and smart automation, redefining the overall standard in reliability, capacity and safety in tailings filtration.

Combined with Metso Outotec’s optimised filtration plant design, the FFP3716 filter offers a reliable and cost-efficient long-term solution for tailings management, even in challenging environments, the company claims.

Geoff Foster, Head of Tailings Filtration at Metso Outotec, said: “Responsible usage of water in the mining industry is the primary driver for increasing interest in tailings dewatering. At Metso Outotec, our goal is to provide holistic tailings management solutions by bringing a step change in the way we view, handle, and manage tailings.

Daily News Update Page 20

“Backed by proven technology and industrial knowledge, our efficient dewatering solutions help in maximising water recovery and reuse. The Larox FFP3716 filter represents the most

advanced technology currently available for safe and efficient dewatering.”

The Larox FFP3716 comes with a substantial increase in total filtration volume, using an optimised plate pack design to reduce wear on the plate pack and cloth components, along

with ease operation and spares holding.

The new design of the closing and sealing mechanism, with individual controlled sealing

cylinders, ensures a squared plate pack at any time, resulting in long lifetime of the pack, the company says. The filter, which comes with a 2,000 sq.m filtration area, 44 cu.m of chamber

volume and up to 16 bars of operating pressure, has been designed from bottom to top with optimal safety in mind, Metso Outotec added.

Codelco to keep “Chuqui” open pit going for an extra year Cecilia Jamasmie

CHILE’s Codelco, the world’s largest copper producer, has extended mining at its century-old

open pit Chuquicamata mine for an extra year as the operation has yielded more than 30,000 tonnes of additional fine copper so far this year.

The state-owned miner shut the open pit section of Chuquicamata in 2018, and transitioned operations to underground block cave mining last year.

New technologies, however, made Codelco rethink the decision. The copper giant decided

then to continue exploiting the pit until December this year.

The Santiago-based company has changed its mind again. It now expects the more than 1,100 metres-deep section of “Chuqui” — as locals call it — to keep running into 2021.

“We have promoted and achieved new ways of operating that have resulted, in the case of Chuquicamata, in a team that adapted to changes and sought continuous improvement,”

executive president Octavio Araneda said in the media statement.

Underground to take over

Araneda said ramp-up of the underground section continued to move forward according to schedule. The company had previously noted that a $5.6 billion-switch to underground cave

mining from open pit was part of its 10-year, $39 billion overhaul of its core assets.

The underground operation will add at least 40 years to Chuquicamata’s life. It will also allow

the copper giant to keep up production rates, despite falling ore grades and increasing costs at its operations.

Daily News Update Page 21

Codelco, which hands over all of its profits to the state, holds vast copper deposits, accounting for 10% of the world’s known proven and probable reserves and about 11% of the global

annual copper output with 1.6 million tonnes of production in 2019.

The mining company’s sprawling deposits, scattered across central and northern Chile, have continued to operate through the disruptions of covid-19 with reduced staff.

Mining output down 2.8% y/y in September By: Creamer Media Reporter

SOUTH Africa's mining production decreased by 2.8% year-on-year in September, with the

iron-ore sector having made the largest negative contribution and diamonds the largest positive contribution.

Seasonally adjusted mining production decreased by 0.3% month-on-month in September.

Seasonally adjusted mining production increased by 40.6% in the third quarter, compared with the second quarter. The platinum group metals (PGMs), iron-ore, gold, manganese ore

and diamond sectors made the biggest positive contributions to the quarter's production.

The Nedbank Group Economic Unit comments that the figures released by Statistics South Africa on November 12 suggest that aggregate mining volumes have rebounded to the same

levels recorded in the final quarter of 2019.

"However, lockdown-related disruptions, as well as the persistent power supply disruptions

have probably kept volumes slightly lower," it adds.

It also warns that platinum production will come under pressure in the months ahead due Anglo American Platinum having halted operations at its Anglo Converter Plant Phase B unit

for a rebuild, while the Phase A unit is also undergoing a rebuild.

"This will contribute to the overall weakness in mining.

"Overall, mining production is expected to be slightly lower in 2020 compared with 2019,"

Nedbank notes.

Meanwhile, mineral sales increased by 25.9% year-on-year in September, with the PGMs, iron-ore and coal sectors having made the biggest positive contributions.

Seasonally adjusted mineral sales at current prices increased by 3.9% month-on-month in

September.

The seasonally adjusted value of mineral sales at current prices was 47.3% higher quarter-

on-quarter for the quarter ended September 30.

Daily News Update Page 22

Chuquicamata open pit copper mine productivity buys it another year of operations

Posted by Paul Moore

AFTER a technical-economic analysis, adjustments in the designs and the performance of the

equipment and good results from the Chuquicamata open pit copper mine, owner and operator Codelco has defined that it will extend the exploitation phase of the deposit for another year. The original program considered finalising the exploitation of the pit in December of this year and focusing efforts only on the movement of stock material during 2021 and 2022.

The plan now contemplates the extraction of copper ore from phase 49, a process that during 2021 may see the open pit coexist with the operation of Chuqui Underground, which will bring positive returns as it ramps up. The surface ore loading and extraction equipment will therefore continue to operate in the pit, as well as the maintenance and production support services. Codelco says the positive numbers obtained in the pit this year are based on the improvement of work practices, an increase in productivity and the implementation of a 7 x 7 workday, which provides better conditions to guard against the spread of COVID-19, operational continuity and general quality of working life.

The open pit mine during 2020 will contribute more than 30,000 additional tonnes of fine copper to the budget plan. Executive President, Octavio Araneda, explains that “during this year, and despite the complications of the pandemic, the transformation roadmap remains intact. We have promoted and reached new ways of operating, which has resulted in the Chuquicamata case, in a pit team that adapted, aspired to more and sought continuous improvement. The commitment of the workers in this area shows that putting operational excellence among the priority objectives has concrete positive consequences.”

Araneda emphasised that continuity has come about by the mine maintaining continuous improvement both in the excellence of its operations, which involves reducing costs and increasing productivity, and in promoting enablers, which implies guaranteeing safety and occupational health, plus a deep cultural transformation, better talent management and a commitment to be sustainable.

Aurelia snaps up $200m Dargues gold mine Vanessa Zhou

AURELIA Metals is set to acquire the recently commissioned Dargues underground gold

mine in New South Wales from Diversified Minerals for up to $205 million.

Daily News Update Page 23

The Dargues mine only delivered its first shipment of gold concentrate in June and is anticipated to produce an average of 45,000 to 55,000 ounces of gold a year over five years.

The operation consists of an underground mine and newly constructed processing plant, which is anticipated to ramp up to around 355,000 tonnes a year by mid-2021.

It reached 30,000 tonnes a month capacity in September following a $90 million investment by Diversified Minerals in the Dargues processing, underground and surface infrastructure.

Aurelia stated that the acquisition was consistent with its goal to become a mid-cap gold-focussed producer and add a third asset to its New South Wales portfolio.

Dargues’ all-in sustaining cost (AISC) of $1150 to $1350 an ounce is also anticipated to lift Aurelia’s cost profile.

“The acquisition of Dargues is a landmark transaction for Aurelia,” company managing director and chief executive Dan Clifford said.

“… Critically, we believe the existing Dargues resource offers substantial potential upside with further extensional target drilling.

“Aurelia’s demonstrated ability in exploration, driven by its strong geological IP (induced polarisation), is expected to be a key value driver in this regard. Accelerated drilling is a priority post acquisition completion.”

The Dargues operation has an ore reserve of more than 1.1 million tonnes at 5.7 grams per tonne of gold for 202,800 ounces of contained gold as at June.

The proposed transaction is expected to close by early next year, subject to New South Wales ministerial consent and other conditions.

Aurelia also owns the Hera gold-lead-zinc-silver and Peak gold mines in New South Wales.

FOB Australia premium mid-vol coal flips to premium for first time since November 2019

Author: Jessie Li, Jun Kai Heng Editor: James Leech

RELATIVITIES of Australia premium medium volatile matter hard coking coal flipped to a

premium to Platts FOB PLV for a historic first since the launch of the FOB Australian brand assessment on Nov. 1, 2019, as significant downward pressure was observed for PLV cargoes with current Chinese import restrictions on Australian coals.

S&P Global Platts assessed Premium Low Vol down $4/mt to $100.75/mt FOB Australia November 12, while premium mid vol coals such as Goonyella was assessed at $103/mt FOB Australia, at a $2.25/mt premium to PLV FOB.

Daily News Update Page 24

The current relativities of premium mid vol coals has now climbed to 102% against premium low vol coals in the FOB Australia market, a highly unusual trend given that typical relativities largely around 96%-97% according to Platts data.

Premium low vol coal is typically sold into the Chinese market, given Chinese end-user specific requirements for high CSR coal to blend with their domestic coking coal blends. In contrast, PMV coals are typically favored by non-Chinese buyers like Indian end-users given their need for high fluidity for their coke blending specifications.

In light of the current import restrictions on Australian coals, sellers have largely managed to offload their Australian PMV cargoes, buoyed by the resurgence of Indian steel production levels after the lifting of COVID-19 lockdown measures. In contrast, limited buying interest outside of China was observed for Australian PLV cargoes.

Market sources pointed to the logistical constraints and blending limits for ex-Chinese end users as major hurdles in securing Australian PLV cargoes even at increasing discount levels.

The selling pressure has increased for December loading PLV cargoes, especially with other end-users already having secured other coal brands for the same time period, an end-user said. To change existing coke blends at such a last minute will depend on end-user coking flexibilities as well as if the cost savings are significant enough for such a disruption.

In terms of the wider picture, Australian coal prices continued to plunge with Chinese buyers off the market leading to a prolonged bout of oversupply. Platts data demonstrated a plunge for both premium low and mid vol coals prices at 27.3% and 23.7% respectively, from Oct. 5 to date.

Market participants indicated that large coal producers have yet to make significant adjustments to their ongoing production volume for premium coking coal in light of the current circumstances. With the high possibility of a La Nina weather phenomenon, a potential supply tightening stemming from disruptive weather in East coast Australia could perhaps be the latest twist on the current market dynamics for coking coal.