IMA-Daily Update Page 1

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Gold Price Increase Becomes the Main Pillar of Various Mining Performance (ANTM) Kenaikan harga emas menjadi penopang utama kinerja Aneka Tambang (ANTM) Bumi Resources (BUMI) Submits Contract Extension, Shares of Mining Issuers Burning Bumi Resources (BUMI) Ajukan Perpanjangan Kontrak, Saham Emiten Tambang Membara The Fate of the North Bahodopi and Matarape Nickel Block is Still Hampered by Legal Process Nasib blok tambang nikel Bahodopi Utara dan Matarape masih terganjal proses hukum Expand the Nickel Market, Antam (ANTM) Eyeing the European Union Perluas Pasar Nikel, Antam (ANTM) Incar Uni Eropa J Resources Sells Rp 650 Billion Bond, This is Coupon Leaks J Resources Jual Obligasi Rp 650 M, Ini Bocoran Kuponnya Royalty Ration Cut by the Central Government, Bangka Belitung Provincial Government Asks for PT Timah's Shares Jatah Royalti Dipotong Pemerintah Pusat, Pemprov Bangka Belitung Minta Saham PT Timah Investor Arranges FS Construction of Giant Underground Mining in Dompu Investor Susun FS Konstruksi Tambang Bawah Tanah Raksasa di Dompu PTBA, the First Mining SOE with an Anti-Bribery Certificate PTBA, BUMN Tambang Pertama yang Kantongi Sertifikat Anti Suap European Commitment to Use EBT Makes National Coal Export Market More Depressed Komitmen Eropa Gunakan EBT Bikin Pasar Ekspor Batubara Nasional Makin Tertekan

Kontan Bisnis Kontan Bisnis CNBC Indonesia Dunia Energi Suara NTB CNBC Indonesia Dunia Tambang

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Sssstt... There's Good News from China, Coal Prices Rise 1% Sssstt... Ada Kabar Baik dari China, Harga Batu Bara Naik 1% Labor tensions add to copper’s steady drumbeat of supply threats China's June coal imports fall 6.7% y/y on port curbs Vale, Kobe Steel and Mitsui & Co to combine ‘green’ iron-making solutions China urges coal miners to boost output ahead of summer power use Two coal producers merge to form China’s 2nd-largest coal miner Whitehaven optimises NSW operations amid global slowdown Vietnam first-half coal imports surge to record high as power demand grows

CNBC Indonesia Mining.com Reuters Int'l Mining Reuters Global Times Australian Mining Reuters

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Gold Price Increase Becomes the Main Pillar of Various Mining

Performance (ANTM) Reporter: Intan Nirmala Sari | Editor:

Wahyu T. Rahmawati

THE GOLD price trend of PT Aneka

Tambang (ANTM), which continues to climb, and is often predicted to touch a record high of Rp 1 million per gram this year will be the main pillar of the gold mining company's business. Even so, the company's performance which is often called Antam is predicted to be not too smooth with many challenges.

Mirae Asset Sekuritas analyst Andy

Wibowo Gunawan said in the first three months of this year alone, ANTM's gold revenue contributed 76.4% of total revenue. Whereas the contribution of ferronickel was only 18.6% and alumina 3.1% of total revenue in the first quarter of 2020.

"Considering the impact of slowing global economic activity after being hit by the Covid-19 pandemic, we believe ANTM's gold segment will be the best performance

buffer this year," Andy told Kontan.co.id, Monday (13/7).

Moreover, Andy considers that ANTM has advantages and is quite competitive as the most diverse mining company. In addition, much of ANTM's revenue comes from gold and nickel related products.

In addition, Antam also has abundant nickel ore reserves and provides room for long-term growth. During 2019,...

Kenaikan harga emas menjadi penopang utama kinerja Aneka

Tambang (ANTM) Reporter: Intan Nirmala Sari | Editor:

Wahyu T. Rahmawati

TREN harga emas PT Aneka Tambang

(ANTM) yang terus menanjak, bahkan kerap digadang-gadang menyentuh rekor tertinggi Rp 1 juta per gram tahun ini bakal jadi penopang utama bisnis emiten tambang emas tersebut. Meskipun begitu, kinerja perusahaan yang kerap disebut Antam ini diprediksi tidak terlalu mulus dengan masih banyaknya tantangan.

Analis Mirae Asset Sekuritas Andy Wibowo Gunawan mengatakan dalam tiga bulan pertama tahun ini saja, pendapatan emas ANTM telah berkontribusi sebanyak 76,4% terhadap total pendapatan. Sedangkan untuk kontribusi feronikel hanya 18,6% dan alumina 3,1% terhadap total pen-dapatan kuartal I-2020.

"Mengingat dampak pelambatan kegiatan ekonomi global setelah dilanda pandemi Covid-19, kami percaya segmen emas ANTM akan menjadi penyangga kinerja terbaik tahun ini," kata Andy kepada Kontan.co.id, Senin (13/7).

Apalagi, Andy menilai bahwa ANTM memiliki keunggulan dan cukup kompetitif sebagai perusahaan tambang yang paling beragam. Ditambah lagi, banyak dari pendapatan ANTM berasal dari produk-produk terkait emas dan nikel.

Selain itu, Antam juga memiliki cadangan bijih nikel yang berlimpah dan mem-berikan ruang untuk pertumbuhan di jangka panjang. Sepanjang 2019,...

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During 2019, ANTM's nickel ore resources and reserves reached 1.3 billion wet metric tons (wmt) and 438 million wmt, respectively.

But, the risk of falling gold prices and lower nickel prices is believed to be a challenge for ANTM going forward. Especially if this risk is accompanied by changes in regulation.

Andy revised Antam's projected performance this year and next year. ANTM revenue this year is estimated to increase 6.6% from the initial assumption to Rp 25.4 trillion and next year grow 3.8% to Rp 28.7 trillion from the previous assumption.

"For net income, we reduced the assumption by 15.9% this year to Rp 208 billion and decreased by 14.4% to Rp 310 billion for next year, from the previous assumption," Andy said.

Andy cut his target and recommendations for ANTM shares from Rp 750 per share with a recommendation to buy, hold or hold with a target price of Rp 655 per share. In trading on Monday (7/13) ANTM's stock price closed up 4.65% at Rp 675 per share.

Sepanjang 2019, sumber daya dan cadangan bijih nikel ANTM masing-masing mencapai 1,3 miliar wet metric tons (wmt) dan 438 juta wmt.

Tapi, risiko untuk penurunan harga emas dan harga nikel yang lebih rendah diyakini masih jadi tantangan ANTM ke depan. Apalagi jika risiko ini disertai dengan perubahan regulasi.

Andy merevisi proyeksi kinerja Antam tahun ini dan tahun depan. Pendapatan ANTM tahun ini diperkirakan naik 6,6% dari asumsi awal menjadi Rp 25,4 triliun dan tahun depan tumbuh 3,8% menjadi Rp 28,7 triliun dari asumsi sebelumnya.

"Untuk laba bersih kami menurunkan asumsi sebanyak 15,9% tahun ini menjadi Rp 208 miliar dan turun 14,4% ke Rp 310 miliar untuk tahun depan, dari asumsi sebelumnya," kata Andy.

Andy memangkas target dan rekomen-dasinya untuk saham ANTM dari sebelum-nya Rp 750 per saham dengan reko-mendasi beli, menjadi hold atau tahan dengan target harga Rp 655 per saham. Pada perdagangan Senin (13/7) harga saham ANTM ditutup menguat 4,65% di level Rp 675 per saham.

Bumi Resources (BUMI) Submits Contract Extension, Shares of

Mining Issuers Burning Finna U. Ulfah

THE COAL issuers' shares managed to heat up supported by the sentiment of certainty in the contract extension of one of the largest mines in Indonesia owned by PT Bumi Resources Tbk. (BUMI).

Bumi Resources (BUMI) Ajukan Perpanjangan Kontrak, Saham

Emiten Tambang Membara Finna U. Ulfah

SAHAM-saham emiten batu bara berhasil memanas didukung oleh sentimen kepastian perpanjangan kontrak salah satu tambang terbesar di Indonesia yang dimiliki oleh PT Bumi Resources Tbk. (BUMI).

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At the close of trading on Monday (7/13/2020), shares of mining compact issuers were parked in the green zone and filled the row of top gainers of the composite stock price index (CSPI) in today's trading, Monday (7/13/2020).

Strengthening was led by PT Delta Dunia Makmur Tbk. (DOID), which managed to increase by 33.76 percent, followed by PT Indika Energy Tbk. (INDY) rose 24.83 percent, and the third position was filled by metal mining company PT Vale Indonesia Tbk. (INCO) which gained 7.44 percent.

Not to forget, another big snap coal issuer, PT Adaro Energy Tbk. (ADRO) and PT Bukit Asam Tbk. (PTBA) also strengthened with an increase of 6.45 percent and 4.83 percent respectively.

Mirae Asset Sekuritas Indonesia analyst Andy Wibowo Gunawan said that the strengthening of mining stocks was caused by a statement from the Ministry of Energy and Mineral Resources (ESDM) related to the certainty of the extension of the Coal Mining Concession Work Agreement (PKP2B) and a change in status to a Special Mining Business License for Production Operations (IUPK-OP).

"On one occasion, the Ministry of ESDM gave a statement that there were already companies that had applied for permits and were in the process of doing so. Investors are optimistic that the permit will be extended and become a fresh breeze in the coal mining sector," Andy said when contacted by Bisnis on Monday (7/13/2020).

Andy expressed optimism from the investors that it has also fostered positive sentiment towards other mining issuers, not only for those who submitted renewal permits.

Pada penutupan perdagangan Senin (13/7/2020), saham-saham emiten tambang kompak parkir di zona hijau dan memenuhi deretan top gainers indeks harga saham gabungan (IHSG) pada perdagangan hari ini, Senin (13/7/2020).

Penguatan dipimpin oleh PT Delta Dunia Makmur Tbk. (DOID) yang berhasil naik hingga 33,76 persen, diikuti oleh PT Indika Energy Tbk. (INDY) naik 24,83 persen, dan posisi ketiga diisi oleh emiten tambang logam PT Vale Indonesia Tbk. (INCO) yang menguat 7,44 persen.

Tidak ketinggalan, emiten batu bara kakap lainnya yaitu PT Adaro Energy Tbk. (ADRO) dan PT Bukit Asam Tbk. (PTBA) juga menguat dengan kenaikan masing-masing sebesar 6,45 persen dan 4,83 persen.

Analis Mirae Asset Sekuritas Indonesia Andy Wibowo Gunawan mengatakan bahwa penguatan saham-saham tambang tersebut disebabkan oleh pernyataan Kementerian Energi dan Sumber Daya Mineral (ESDM) terkait kepastian perpanjangan Perjanjian Kerjasama Pengusahaan Pertambangan Batu bara (PKP2B) dan perubahan status menjadi Izin Usaha Pertambangan Khusus Operasi Produksi (IUPK-OP).

“Dalam satu kesempatan, Kementerian ESDM memberikan pernyataan bahwa sudah terdapat perusahaan yang meng-ajukan izin dan sedang dalam proses. Investor optimistis izin akan diperpanjang dan menjadi angin segar sektor tambang batu bara,” ujar Andy saat dihubungi Bisnis, Senin (13/7/2020).

Andy mengungkapkan optimisme dari para investor itu juga telah menumbuhkan sentimen positif terhadap emiten-emiten tambang lain, tidak hanya untuk yang mengajukan izin perpanjangan saja.

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To note, recently the House of Representatives (DPR) of the Republic of Indonesia officially passed the Mineral and Coal Law on the Revision of the Amendment to Law No.4/2009 concerning Mineral and Coal Mining into law. The law regulates the change of PKP2B status towards IUPK-OP.

Meanwhile, based on data from the Ministry of ESDM, there are seven first-generation giant mines that will extend the PKP2B contract to IUPK-OP.

Two of the seven mines are subsidiaries of BUMI namely PT Arutmin Indonesia, whose contract period expires on November 1, 2020 and PT Kaltim Prima Coal (KPC), which expires on December 31, 2021.

Then, a mine owned by PT Adaro Indonesia, a subsidiary of PT Adaro Energy Tbk. (ADRO), which expired on October 1, 2022. Furthermore, the PT Kideco Jaya Agung mine, a subsidiary of PT Indika Energy Tbk. (INDY), whose contract period will expire on March 13, 2023.

Then there is the PT Multi Harapan Utama (MHU) mine which will expire on April 1, 2022, the PT Berau Coal mine will expire on April 26, 2025, and PT Kendilo Coal Indonesia (KCI) will expire on September 13, 2021.

Bumi Resources Director and Corporate Secretary Dileep Srivastava claimed that the company had applied for an extension of PT Arutmin and expected the contract to be extended in August or in the third quarter of 2020.

"Arutmin hopefully in August or in this quarter [quarter III/2020], while for KPC hopefully it has been extended in December 2020 or January 2021," said Dileep after the annual general meeting of shareholders (AGM), Thursday (07/09/ 2020).

Untuk diketahui, belum lama ini Dewan Perwakilan Rakyat (DPR) Republik Indonesia resmi mengesahkan Undang-Undang Mineral dan Batu Bara atas Revisi Perubahan UU No.4/2009 tentang Pertambangan Mineral dan Batu Bara menjadi undang-undang. Dalam undang-undang tersebut mengatur perubahan status PKP2B terhadap IUPK-OP.

Adapun, berdasarkan data Kementerian Energi dan Sumber Daya Mineral, ada tujuh tambang raksasa generasi pertama yang akan memperpanjang kontrak PKP2B ke IUPK-OP.

Dua dari ke tujuh tambang merupakan anak usaha dari BUMI yaitu,PT Arutmin Indonesia yang habis masa kontrak pada 1 November 2020 dan PT Kaltim Prima Coal (KPC) yang habis masa kontraknya pada 31 Desember 2021.

Kemudian, tambang milik PT Adaro Indonesia, entitas anak usaha PT Adaro Energy Tbk. (ADRO), yang habis masa kontrak pada 1 Oktober 2022. Selanjutnya tambang PT Kideco Jaya Agung, entitas anak usaha PT Indika Energy Tbk. (INDY) yang masa kontraknya bakal habis pada 13 Maret 2023.

Lalu ada tambang PT Multi Harapan Utama (MHU) yang bakal habis kontraknya pada 1 April 2022, tambang PT Berau Coal habis kontrak pada 26 April 2025, dan PT Kendilo Coal Indonesia (KCI) yang habis kontrak pada 13 September 2021.

Direktur dan Corporate Secretary Bumi Resources Dileep Srivastava mengaku bahwa perseroan telah mengajukan izin perpanjangan PT Arutmin dan mengharap-kan kontrak diperpanjang pada Agustus atau pada kuartal III/2020.

“Arutmin mudah-mudahan Agustus atau pada kuartal ini [kuartal III/2020], sedang-kan untuk KPC semoga sudah diperpanjang Desember 2020 atau Januari 2021,” ujar Dileep usai rapat umum pemegang saham tahunan (RUPST), Kamis (9/7/2020).

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He said that getting the contract extension would have a positive impact on the company, namely providing certainty to investors of BUMI's business prospects.

According to him, the certainty will also help BUMI to find alternative funding sources to expand the coal business. Editor:

Rivki Maulana

Dia mengatakan bahwa dengan mendapatkan perpanjangan kontrak itu akan berdampak positif bagi perseroan, yaitu memberikan kepastian kepada investor terhadap prospek usaha BUMI.

Menurut dia, kepastian itu nantinya juga akan membantu BUMI untuk mencari alternatif sumber pendanaan lainnya untuk melakukan ekspansi usaha batu bara. Editor : Rivki Maulana

The Fate of the North Bahodopi and Matarape Nickel Block is

Still Hampered by Legal Process Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

THE FATE of the North Bahodopi and Matarape Special Mining Business Permit (WIUPK) is still uncertain. Although PT Aneka Tambang Tbk (Antam) has won it, the two nickel mining blocks cannot be processed yet.

ESDM Ministry's Mineral and Coal Program Development Director Muhammad Wafid Agung said that until now his party had not yet issued Exploration Special Mining Business Permits (IUPK) for the two blocks to Antam.

In fact, Antam has won the North Bahodopi and Matarape WIUPK since August 2018. The SOE mining issuer has also deposited hundreds of billions of funds as Infor-mation Data Compensation (KDI) for the two nickel mines.

Wafid said that the exploration IUPK had not been given to Antam because the WIUPK's second priority bidding process was questioned, so it was hampered by the legal process that is still ongoing.

Nasib blok tambang nikel Bahodopi Utara dan Matarape masih terganjal proses hukum Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

NASIB Wilayah Izin Usaha Pertambangan Khusus (WIUPK) Bahodopi Utara dan Matarape masih terkatung-katung. Meski sudah dimenangkan PT Aneka Tambang Tbk (Antam), tapi kedua blok tambang nikel itu masih belum bisa diolah.

Direktur Bina Program Mineral dan Batubara (Minerba) Kementerian ESDM Muhammad Wafid Agung menyampaikan, hingga sekarang pihaknya masih belum menerbitkan Izin Usaha Pertambangan Khusus (IUPK) Eksplorasi atas kedua blok tersebut kepada Antam.

Padahal, Antam sudah dinyatakan memenang-kan WIUPK Bahodopi Utara dan Matarape sejak Agustus 2018 lalu. Emiten tambang BUMN itu juga sudah menyetorkan dana ratusan miliar sebagai Kompensasi Data Informasi (KDI) bagi kedua tambang nikel tersebut.

Wafid mengatakan, IUPK eksplorasi belum diberikan kepada Antam lantaran proses penawaran prioritas kedua WIUPK itu dipersoalkan, sehingga terganjal proses hukum yang hingga kini masih berjalan.

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"Exploration IUPK has not been granted because of legal constraints, and is currently in the process of being resolved," Wafid told Kontan.co.id, Monday (7/13).

Unfortunately, Wafid was reluctant to disclose the extent of the legal process, and where he was in a dispute. What is clear, referring to Kontan.co.id's notes, the Ombudsman of the Republic of Indonesia

in January 2019 issued the Final Examination Report (LAHP) for the two WIUPKs.

The Ombudsman alleged that there was maladministration, from the establishment of North Bahodopi and Matarape to WIUPK to the priority offering process to SOEs. As a result, the Ombudsman concluded that the North Bahodopi and Matarape WIUPK won by Antam had problems.

As a reminder, in 2018 the Ministry of ESDM made priority offers to six WIUPKs. However, there are only two that sell, namely Matarape WIUPK and North Bahodopi WIUPK. Both are former nickel mining blocks of PT Vale Indonesia Tbk. (INCO).

Antam's certainty in winning the two blocks occurred on 1 August 2018 for the North Bahodopi Block, and 21 August 2018

for the Matarape Block. Just so you know, Matarape WIUPK has an area of 1,681 hectares (ha). The nickel mine, located in North Konawe, Southeast Sulawesi, has a KDI value of Rp. 184.05 billion.

While the North Bahodopi WIUPK has an area of 1,896 ha and is located in Morowali, Central Sulawesi. KDI value of Rp. 184.8 billion. That is, to make up for the KDI of the two WIUPKs, Antam had to spend Rp. 368.85 billion.

"IUPK eksplorasi belum diberikan karena ada kendala hukum, dan saat ini sedang dalam proses penyelesaian," kata Wafid kepada Kontan.co.id, Senin (13/7).

Sayangnya, Wafid enggan membeberkan sudah sejauh mana proses hukum itu berjalan, dan sedang berperkara dimana. Yang terang, merujuk pada catatan Kontan.co.id, Ombudsman Republik Indonesia pada Januari 2019 lalu telah mengeluarkan Laporan Akhir Hasil Pemeriksaan (LAHP) atas kedua WIUPK tersebut.

Ombudsman menengarai adanya mal-administrasi, mulai dari penetapan Bahodopi Utara dan Matarape menjadi WIUPK hingga proses penawaran prioritas kepada BUMN. Alhasil, Ombudsman menyimpulkan bahwa WIUPK Bahodopi Utara dan Matarape yang dimenangkan Antam itu bermasalah.

Sebagai pengingat, pada 2018 lalu Kemen-terian ESDM melakukan penawaran prioritas terhadap enam WIUPK. Namun, hanya ada dua yang laku, yakni WIUPK Matarape dan WIUPK Bahodopi Utara. Keduanya merupakan blok tambang nikel eks PT Vale Indonesia Tbk. (INCO).

Kepastian Antam memenangkan kedua blok itu terjadi pada tanggal 1 Agustus 2018 untuk Blok Bahodopi Utara, dan 21 Agustus 2018 untuk Blok Matarape. Asal tahu saja, WIUPK Matarape memiliki wilayah seluas 1.681 hektare (ha). Tambang nikel yang berlokasi di Konawe Utara, Sulawesi Tenggara itu memiliki nilai KDI seharga Rp. 184,05 miliar.

Sedangkan WIUPK Bahodopi Utara me-miliki luas 1.896 ha dan berlokasi di Morowali, Sulawesi Tengah. Nilai KDI sebesar Rp. 184,8 miliar. Artinya, untuk menebus KDI kedua WIUPK itu, Antam harus merogoh kocek sebesar Rp 368,85 miliar.

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There are KDI Adjustments

On the other hand, Muhammad Wafid Agung acknowledged that the high cost of KDI was one of the gloomy causes of investor interest in mining auctions. Therefore, the government changed the formulation of the KDI calculation last April.

The Ministry of ESDM changed the Minister of ESDM Decree No. 1801 K/30/MEM/ 2018 with the Ministry of ESDM No. 80 K/32/MEM 2020 concerning the formula for calculating KDI WIUP/WIUPK prices.

With this regulation, the KDI deter-mination refers to Government Regulation (PP) No 81/2019 regarding PNBP rates at the Ministry of ESDM. The current formulation is claimed to make KDI cheaper so that it can be more attractive to investors.

Wafid said there was a KDI recalculation that was adjusted to the regulation. He has not yet explained the KDI adjustment details in question. But certainly, Wafid stated that the KDI adjustment only applies to WIUP/WIUPK that have not been sold and will later be offered in auctions or priority offers.

"There has been a recalculation, KDI adjustments. But the blocks that have been won are no recalculation processes," he said.

In Kontan.co.id's records, currently there are still 4 WIUPK and 9 WIUP for the determination of 2018 and 10 WIUPK and 3 WIUPK for the determination of 2019 that will be offered priority to BUMN/ BUMD or publicly auctioned.

However, Wafid stated that the process would not take place this year. Because, it still has to wait for the issuance of the implementing regulations of Law No. 3 of 2020 aka the new Minerba Law.

Ada Penyesuaian KDI

Di sisi yang lain, Muhammad Wafid Agung mengakui bahwa mahalnya KDI menjadi salah satu penyebab suramnya minat investor terhadap lelang tambang. Oleh sebab itu, pemerintah telah mengubah formulasi perhitungan KDI pada April lalu.

Kementerian ESDM mengubah Keputusan Menteri (Kepmen) ESDM Nomor 1801 K/30/MEM/2018 dengan Kepmen ESDM Nomor 80 K/32/MEM 2020 tentang formula perhitungan harga KDI WIUP/ WIUPK.

Dengan beleid tersebut, penentuan KDI mengacu pada Peraturan Pemerintah (PP) No 81/2019 mengenai tarif PNBP di Kementerian ESDM. Formulasi saat ini diklaim bakal membuat KDI lebih murah sehingga bisa lebih menarik bagi investor.

Wafid bilang, sudah ada perhitungan ulang KDI yang disesuaikan dengan regulasi tersebut. Dia memang belum memaparkan dengan detail penyesuaian KDI yang dimaksud. Tapi yang pasti, Wafid menyata-kan bahwa penyesuaian KDI itu hanya berlaku untuk WIUP/WIUPK yang belum laku dan nantinya bakal ditawarkan dalam lelang atau pun penawaran prioritas.

"Sudah ada perhitungan ulang, penyesuaian KDI. Namun blok yang sudah dimenangkan tidak ada proses penghitungan ulang," sebutnya.

Dalam catatan Kontan.co.id, saat ini masih ada 4 WIUPK dan 9 WIUP penetapan 2018 serta 10 WIUP dan 3 WIUPK penetapan 2019 yang bakal ditawarkan prioritas kepada BUMN/BUMD maupun dilelang secara terbuka.

Namun, Wafid menyatakan bahwa proses tersebut tidak akan berlangsung di tahun ini. Sebab, pihaknya masih harus menunggu terbitnya aturan pelaksanaan dari UU No. 3 tahun 2020 alias UU Minerba yang baru.

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Expand the Nickel Market, Antam (ANTM) Eyeing the European Union

Finna U. Ulfah

METAL mining company PT Aneka Tambang Tbk. (ANTM) is targeting a potential nickel export market to the European Union.

SVP Corporate Secretary of PT Aneka Tambang Tbk. Kunto Hendrapawoko said that the current increase in base metal prices would be a good provision for the company to meet the targets that had been set at the beginning of the year.

"Along with the improving global economic conditions and the growing level of nickel demand, the company is optimistic that it can increase the profit margin from the nickel business in 2020," Kunto told Bisnis, Monday (07/13/2020).

This will also be supported by the company's cash production costs which have succeeded in being one of the lowest among other global ferronickel producers. The issuer coded ANTM shares succeeded in having a cash production cost of US$ 3.35 per pound during the cumulative operations of the first five months of 2020.

This achievement was down 15 percent compared to the average cash cost of production in the same period last year of US$ 3.95 per pound. In fact, according to a study by Wood Mackenzie consultants, the achievement of ANTM's cash production costs is below the average global ferronickel producer in the range of US$ 4.85 per pound.

The company will also focus on maintaining the nickel export market, especially in the East Asian region such as China and South Korea, along with the Indian market which is still implementing a lockdown. For new markets,...

Perluas Pasar Nikel, Antam (ANTM) Incar Uni Eropa

Finna U. Ulfah

EMITEN pertambangan logam PT Aneka Tambang Tbk. (ANTM) menargetkan pasar ekspor nikel potensial ke Uni Eropa.

SVP Corporate Secretary PT Aneka Tambang Tbk. Kunto Hendrapawoko mengatakan bahwa kenaikan harga logam dasar saat ini akan menjadi bekal baik bagi perseroan untuk memenuhi target yang telah dicanangkan pada awal tahun.

“Seiring dengan membaiknya kondisi ekonomi global dan bertumbuhnya tingkat permintaan nikel, perseroan optimistis dapat meningkatkan marjin keuntungan dari bisnis nikel pada 2020,” ujar Kunto kepada Bisnis, dikutip Senin (13/7/2020).

Hal itu pun akan didukung oleh biaya tunai produksi perseroan yang berhasil menjadi salah satu yang terendah di antara produsen feronikel global lainnya. Emiten berkode saham ANTM itu berhasil me-miliki biaya tunai produksi sebesar US$ 3,35 per pon sepanjang operasi kumulatif lima bulan pertama 2020.

Capaian itu turun 15 persen dibandingkan dengan rata-rata biaya tunai produksi periode yang sama tahun lalu sebesar US$3,95 per pon. Bahkan, berdasarkan studi konsultan Wood Mackenzie, capaian biaya tunai produksi ANTM berada di bawah rata-rata produsen feronikel global di kisaran US$4,85 per pon.

Perseroan juga akan fokus memper-tahankan pasar ekspor nikel, terutama wilayah Asia Timur seperti China dan Korea Selatan, seiring dengan pasar India yang masih menerapkan lockdown. Untuk pasar baru,...

IMA-Daily Update Page 11

For new markets, ANTM is exploring several potential markets, with the main target being the European Union market.

In addition, in the second half of this year ANTM will also focus more on the domestic market, especially for gold commodities along with the increasing demand from the market segmentation.

Meanwhile, Antam's production target for gold is around 2 tons per year from the Pongkor and Cibaliung mines, while ferronickel production is around 27,000 TNi.

Meanwhile, Aneka Tambang recorded a net loss for the period attributable to the parent entity amounting to Rp281.83 billion in the first quarter of 2020.

Based on the company's financial statements, the realization was inversely proportional to the company's acquisition in the same period last year which recorded a net profit attributable to the parent entity amounting to Rp176.10 billion.

In addition, the issuer coded ANTM shares also posted a decline in sales in the first quarter of 2020 to Rp5.2 trillion, 16.35 percent lower compared to the first quarter of 2019 of Rp6.21 trillion.

The biggest contributor to revenue in the first three months of this year came from gold commodity sales, which amounted to Rp3.97 trillion or around 76 percent of total sales.

Then followed by ferronickel commodities which contributed Rp965.95 billion or around 19 percent of the company's total sales.

Kunto Hendrapawoko said that the limitation of international export trade activities affected by the Covid-19 pandemic also affected the decline in ferronickel commodity export sales in the first quarter of 2020.

Untuk pasar baru, ANTM tengah menjajaki beberapa pasar potensial, dengan bidikan utama adalah pasar Uni Eropa.

Selain itu, pada pada paruh kedua tahun ini ANTM juga akan lebih fokus pada pasar domestik, terutama untuk komoditas emas seiring dengan meningkatnya permintaan dari segmentasi pasar tersebut.

Adapun, target produksi Antam tahun ini untuk komoditas emas di kisaran 2 ton per tahun yang berasal dari tambang Pongkor dan Cibaliung, sedangkan untuk produksi feronikel di kisaran 27.000 TNi.

Sementara itu, Aneka Tambang membukukan rugi bersih periode berjalan yang dapat di-atribusikan kepada entitas induk sebesar Rp281,83 miliar pada kuartal I/2020.

Berdasarkan laporan keuangan perseroan, realisasi itu berbanding terbalik dengan perolehan perseroan pada periode yang sama tahun lalu yang mencatatkan laba bersih yang dapat diatribusikan kepada entitas induk sebesar Rp176,10 miliar.

Selain itu, emiten berkode saham ANTM itu juga membukukan penurunan penjualan pada kuartal I/2020 menjadi sebesar Rp5,2 triliun, lebih rendah 16,35 persen dibandingkan dengan kuartal I/2019 sebesar Rp6,21 triliun.

Kontributor terbesar pendapatan pada tiga bulan pertama tahun ini berasal dari penjualan komoditas emas yaitu sebesar Rp3,97 triliun atau sekitar 76 persen dari total penjualan secara keseluruhan.

Kemudian diikuti oleh komoditas feronikel yang berkontribusi sebesar Rp965,95 miliar atau sekitar 19 persen dari total penjualan keseluruhan perseroan.

Kunto Hendrapawoko mengatakan bahwa pembtasan aktivitas perdagangan ekspor internasional yang diperngaruhi oleh pandemi Covid-19 turut mempengaruhi penurunan penjualan ekspor komoditas feronikel pada kuartal I/2020.

IMA-Daily Update Page 12

In addition, amidst the volatility of the downward trend in global nickel commodity prices and fluctuations in the strengthening of the US dollar's significant exchange rate against the rupiah during the first three months of this year, the company's foreign exchange losses swelled to Rp362 billion.

"It also affected Antam's profitability achieve-ments in the first quarter of 2020, which

posted a loss for the current period of Rp281 billion," Kunto said as quoted from his official statement on Monday (6/29/2020). Editor:

Hafiyyan

Selain itu, di tengah volatilitas tren penurunan harga komoditas nikel global dan fluktuasi penguatan nilai tukar dolar AS yang signifikan terhadap rupiah sepanjang tiga bulan pertama tahun ini membuat pos rugi selisih kurs perseroan membengkak menjadi Rp362 miliar.

“Hal itu juga turut mempengaruhi capaian profitabilitas Antam pada kuartal I/2020

yang membukukan rugi periode berjalan sebesar Rp281 miliar,” ujar Kunto seperti dikutip dari keterangan resminya, Senin (29/6/2020). Editor : Hafiyyan

J Resources Sells Rp 650 Billion Bond, This is Coupon Leaks

Tahir Saleh, CNBC Indonesia

GOLD mine issuer PT J Resources Asia

Pasifik Tbk (PSAB) issued bonds of up to

Rp 650 billion. The bonds are named

Sustainable Bonds I J Resources Asia

Pacific Phase V of 2020.

The funds from the bond issuance will be

used to pay off debt and working capital. In

detail, based on the company's prospectus

published on the Indonesia Stock Exchange

(IDX), Tuesday (07/14/2020), all funds

obtained from bonds, after deducting

issuance costs, will be used for distribution

in loans by the company to PT J Resources

Nusantara (JRN), a subsidiary company.

The funds are used to repay Medium Term

Notes II (MTN) issued by JRN, amounting

to Rp 500 billion.

J Resources Jual Obligasi Rp 650 M, Ini Bocoran Kuponnya

Tahir Saleh, CNBC Indonesia

EMITEN tambang emas PT J Resources Asia

Pasifik Tbk (PSAB) menerbitkan obligasi sebanyak-banyaknya Rp 650 miliar. Obligasi itu bernama Obligasi Berkelanjutan I J Resources Asia Pasifik Tahap V Tahun 2020.

Dana penerbitan obligasi ini akan digunakan untuk membayar utang dan modal kerja. Secara rinci, berdasarkan prospektus perusahaan yang dipublikasikan di Bursa Efek Indonesia (BEI), Selasa (14/7/2020), seluruh dana yang diperoleh dari obligasi, setelah dikurangi biaya-biaya emisi, akan digunakan untuk disalurkan dalam bentuk pinjaman oleh perseroan kepada PT J Resources Nusantara (JRN), perusahaan anak perseroan.

Dana itu dipakai untuk pelunasan Medium Term Notes II (MTN) yang diterbitkan oleh JRN, yaitu sebesar Rp 500 miliar.

IMA-Daily Update Page 13

"The remaining proceeds from the bonds will be used for working capital and/or for general corporate purposes of the company and/or its subsidiary companies," PSAB management wrote in the prospectus.

The Phase I Bond Issuance is part of the Sustainable Bonds I J Resources with a total issuance value of Rp 3 trillion. Last year, the company released Phase I Sustainable Bonds in Phase I of 2019 amounting to Rp 256 billion, then Phase II in 2019 amounting to Rp 500 billion, Phase III of Rp 569.65 billion, and Phase IV of Rp 225 billion.

Specifically for Sustainable Bonds I Phase V, despite the value of Rp 650 billion, the principal amount of bonds guaranteed with full commitment is Rp 535 billion consisting of 2 series.

Series A Rp 220 billion with an interest rate of 9.25% per annum, with a term of 370 days.

Series B Rp 315 billion with an interest rate of 10.25% per annum, with a term of 3 years.

The company has received a rating from Pefindo which is Single A (idA) and is valid from the period March 10, 2020 to March 1, 2021. The public offering period is conducted on July 23-24, 2020 and the listing date on the IDX is on July 30, 2020.

PSAB appointed PT BNI Sekuritas and PT Trimegah Sekuritas Indonesia Tbk (TRIM) as underwriters, while the trustees were PT Bank Rakyat Indonesia (Persero) Tbk (BBRI).

PSAB shares in the morning trade rose 1.10% at the level of Rp 184/share with a market capitalization of Rp 4.87 trillion. Last week PSAB shares rose 3.37% and the last 3 months minus 7.07%. (tas/tas)

"Sisa dana hasil obligasi akan digunakan untuk modal kerja dan/atau untuk keperluan korporasi umum perseroan dan/atau perusahaan anak perseroan," tulis manajemen PSAB, dalam prospektus.

Penerbitan Obligasi I Tahap V ini adalah bagian dari Obligasi Berkelanjutan J Resources I dengan nilai total penerbitan mencapai Rp 3 triliun. Tahun lalu, perseroan sudah merilis Obligasi Berkelanjutan I Tahap I Tahun 2019 sebesar Rp 256 miliar, kemudian Tahap II 2019 sebesar Rp 500 miliar, Tahap III Rp 569,65 miliar, dan Tahap IV Rp 225 miliar.

Khusus untuk Obligasi Berkelanjutan I Tahap V ini, kendati nilainya Rp 650 miliar, tapi jumlah Pokok Obligasi yang dijamin dengan kesanggupan penuh (full commit-ment) adalah sebesar Rp 535 miliar yang terdiri dari 2 seri.

Seri A Rp 220 miliar dengan bunga obligasi sebesar 9,25% per tahun, berjangka waktu 370 hari.

Seri B Rp 315 miliar dengan bunga obligasi sebesar 10,25% per tahun, berjangka waktu 3 tahun.

Perseroan sudah mendapatkan rating dari Pefindo yakni Single A (idA) dan berlaku dalam periode 10 Maret 2020 sampai dengan 1 Maret 2021. Masa penawaran umum dilakukan pada 23-24 Juli 2020 dan tanggal pencatatan di BEI pada 30 Juli 2020.

PSAB menunjuk PT BNI Sekuritas dan PT Trimegah Sekuritas Indonesia Tbk (TRIM) sebagai penjamin emisi efek atau under-writer, sementara wali amanat yakni PT Bank Rakyat Indonesia (Persero) Tbk (BBRI).

Saham PSAB pada perdagangan pagi ini naik 1,10% di level Rp 184/saham dengan kapitalisasi pasar Rp 4,87 triliun. Sepekan terakhir saham PSAB naik 3,37% dan 3 bulan terakhir minus 7,07%. (tas/tas)

IMA-Daily Update Page 14

Royalty Ration Cut by the Central Government, Bangka

Belitung Provincial Government Asks for PT Timah's Shares

Rio Indrawan

THE PROVINCIAL Government of Bangka

Belitung requested the local government quota from PT Timah Tbk (TINS). The reason is that it turns out that the regional government share is only obtained from the distribution of royalties.

Erzaldi Rosman Djohan, Governor of Bangka Belitung, said that so far the royalties received by the regional government were cut again by the central government.

"In terms of income only from royalties. The royalty is the lowest mineral commodity royalty at only 3%. That's not all to the local government, first cut 25% for the central government. It means that only 75% of 3%," said Erzaldi in Jakarta, last weekend.

He also requested that the local govern-ment of Bangka Belitung also get a share of shares in PT Timah. "We beg the President some time ago to be given shares like other areas of PT Timah," said Erzaldi.

According to Erzaldi, the potential for tin in Bangka Belitung is very large, but the benefits to the local community are not the same as the environmental damage caused by mining activities.

Moreover, the authority of local govern-ments is also castrated by the new rules in the Minerba Act.

"If we have changed the transformation from mining to tourism. For our area,...

Jatah Royalti Dipotong Pemerintah Pusat, Pemprov

Bangka Belitung Minta Saham PT Timah

Rio Indrawan

PEMERINTAH Provinsi Bangka Belitung meminta jatah pemerintah daerah pada PT Timah Tbk (TINS). Pasalnya selama ini ternyata bagian pemerintah daerah hanya didapatkan dari pembagian royalti.

Erzaldi Rosman Djohan, Gubernur Bangka Belitung, mengatakan selama ini royalti yang diterima pemerintah daerah dipotong lagi oleh pemerintah pusat.

“Dari segi pendapatan hanya dari royalti saja. Royaltinya adalah royalti terendah komoditi mineral hanya 3%. Itu tidak semua ke pemerintah daerah, dipotong dulu 25% untuk pemerintah pusat. Berarti hanya 75% dari 3%,” kata Erzaldi di Jakarta, akhir pekan lalu.

Dia pun meminta agar pemerintah daerah Bangka Belitung juga mendapatkan jatah saham di PT Timah. “Kami mohon ke Presiden beberapa waktu lalu untuk diberikan saham seperti daerah lainnya dari PT Timah,” kata Erzaldi.

Menurut Erzaldi, potensi timah di Bangka Belitung sangatlah besar, tapi manfaat yang didapatkan masyarakat daerah tidak seberapa dengan kerusakan lingkungan yang ditimbulkan akibat adanya aktivitas penambangan.

Apalagi kewenangan pemerintah daerah juga dikebiri dengan adanya aturan baru di Undang-Undang Minerba.

“Kalau kami sudah melakukan perubahan transformasi dari mining ke turism. Untuk daerah kami...

IMA-Daily Update Page 15

For our area, of course spatial planning must also change, but when in this new mining law article 35 the regional govern-ment must ensure that there are no spatial changes," said Erzaldi.

In article 35 of Law No. 3 of 2020 written mining business carried out based on business licensing from the central government. But actually in paragraph 4 it

is written that the central government can delegate the authority to grant business licenses to the provincial government in accordance with statutory provisions.

Moreover, tin minerals have quite a variety of associated minerals, one of which is rare earth minerals which are now increasingly in demand by the world as raw material for weapons.

"We have met with Pak Prabowo in this case the Minister of Defense. Because these 13 associated minerals are minerals that have the greatest potential for the defense of our country," said Erzaldi.

The government is getting serious about developing rare earth metal resources (LTJ) with the establishment of a body that has a special task to conduct studies and use of rare earths.

Yunus Saefulhak, Director of Mineral Exploitation of the Directorate General of Minerals and Coal (Minerba) of the Ministry of Energy and Mineral Resources (ESDM), said that rare earth processing has received serious attention because the discussion has now reached cross ministries and agencies.

The government will form a special body that focuses on collecting various types of rare earth which are co-production from other mineral mining activities and are carried out by various mining companies.

Untuk daerah kami tentunya tata ruang juga harus berubah, tapi ketika dalam UU pertambangan yang baru ini pasal 35 itu pemerintah daerah harus menjamin tidak ada perubahan tata ruang,” ungkap Erzaldi.

Dalam pasal 35 di UU No. 3 tahun 2020 tertulis usaha pertambangan dilaksanakan berdasarkan perizinan berusaha dari pemerintah pusat. Tapi sebenarnya di ayat 4 tertulis bahwa pemerintah pusat dapat mendelegasikan kewenangan pemberian perizinan berusaha kepada pemerintah daerah provinsi sesuai dengan ketentuan peraturan perundang-undangan.

Terlebih mineral timah memiliki mineral ikutan yang cukup beragam salah satunya adalah mineral tanah jarang atau rare earth yang kini keberadaannya makin diminati dunia sebagai bahan baku senjata.

“Kami sudah ketemu dengan pak Prabowo dalam hal ini menteri pertahanan. Karena 13 mineral ikutan ini adalah mineral-mineral yang sangat memiliki potensi untuk ketahanan negara kita,” kata Erzaldi.

Pemerintah mulai serius untuk mengem-bangkan sumber daya logam tanah jarang (LTJ/ rare earth) dengan akan dibentuknya suatu badan yang memiliki tugas khusus untuk melakukan kajian serta pemanfatan rare earth.

Yunus Saefulhak, Direktur Pembinaan Pengusahaan Mineral Ditjen Mineral dan Batu Bara (Minerba) Kementerian Energi dan Sumber Daya Mineral (ESDM), meng-ungkapkan pengolahan rare earth men-dapatkan perhatian serius karena pem-bahasannya kini sudah sampai lintas kementerian dan lembaga.

Pemerintah akan membentuk badan khusus yang fokus untuk mengumpulkan berbagai jenis rare earth yang merupakan produksi ikutan dari kegiatan tambang mineral lainnya dan dilakukan oleh ber-bagai perusahaan tambang.

IMA-Daily Update Page 16

"Actually, there should be a gathering body, maybe a State-Owned Enterprise (BUMN) will be appointed. Collectors of monazites (rare earth) rather than going anywhere are being coordinated by the Coordinating Minister for Maritime and Investment," said Yunus. (RI)

“Sebetulnya harus ada badan pengumpul

mungkin akan ditunjuk Badan Usaha Milik

Negara (BUMN). Pengumpul monazit (rare

earth) dari pada pada pergi kemana-mana

sedang dikoordinasikan Menko Kema-

ritiman dan Investasi,” kata Yunus. (RI)

Investor Arranges FS Construction of Giant

Underground Mining in Dompu

PT. SUMBAWA Timur Mining (STM)

began working on a feasibility study (FS) on the construction of an underground giant mine in Dompu. The plan is that on

August 15, STM will resume exploration because it has proposed an extension of exploration permits to the Ministry of ESDM.

"He has asked for an extension of the exploration permit to the Ministry of ESDM. God willing, August 15 is running. They are very serious. He has already spent tens of billions of rupiah there," said the Head of the NTB's One Stop Integrated Investment and Licensing (DPMPTSP)

Office, Ir. H. Mohammad Rum, MT Monday, July 13, 2020.

The potential gold and copper reserves in the area are estimated to be greater than the Batu Hijau mine in West Sumbawa Regency, which is now managed by PT. Amman Mineral Nusa Tenggara (AMNT).

Rum emphasized that DPMPTSP had obtained a lot of information related to gold and copper exploration activities in the Hu'u region, Dompu.

Investor Susun FS Konstruksi Tambang Bawah Tanah Raksasa

di Dompu

PT. SUMBAWA Timur Mining (STM) mulai

mengerjakan feasibility study (FS) atau studi kelayakan konstruksi tambang raksasa bawah tanah di Dompu. Rencana-

nya, 15 Agustus mendatang, STM akan kembali melanjutkan eksplorasi karena sudah mengajukan perpanjangan izin eksplorasi ke Kementerian ESDM.

"Dia sudah minta perpanjangan izin eksplorasi ke Kementerian ESDM. Insya Allah 15 Agustus sudah jalan. Mereka sangat serius. Dia sudah mengeluarkan biaya puluhan miliar rupiah di sana,” kata Kepala Dinas Penanaman Modal dan Perizinan Terpadu Satu Pintu (DPMPTSP)

NTB, Ir. H. Mohammad Rum, MT Senin, 13 Juli 2020.

Potensi cadangan emas dan tembaga di kawasan itu diperkirakan lebih besar dari tambang Batu Hijau di Kabupaten Sumbawa Barat yang kini dikelola PT. Amman Mineral Nusa Tenggara (AMNT).

Rum menegaskan, DPMPTSP telah men-dapatkan banyak informasi terkait kegiatan eksplorasi emas dan tembaga di wilayah Hu’u, Dompu tersebut.

IMA-Daily Update Page 17

According to him, the exploration stage

while preparing a feasibility study for this

giant underground mining project will take

around five years. At the latest, this giant

gold mine has begun operations in 2028.

"This is underground mining. So, do not

disturb the surface. So what is being done,

exploration and feasibility studies are

currently. "The feasibility study for the

construction of an underground mine that

is being done," he explained.

The former Head of Bakesbangpoldagri

admitted he would continue to oversee the

acceleration of the realization of this gold

mine in Dompu. Because, the presence of

this mine will bring tremendous impact for

NTB. Especially if later operate.

Based on estimates, this underground

mining giant can absorb up to five

thousand workers. In the construction

phase, this mine will require around 4,000

workers. Meanwhile, when it is

operational, it is estimated that it will need

1,000 workers.

"So we have to use it for the best sons and

daughters of NTB, especially in the Bima

and Dompu circles. Local government must

prepare from now on,'' he warned.

To note, PT. STM is the 7th generation KK

holder for the Hu'u Project in Hu'u District,

Dompu District. PT. STM is a joint venture

between Eastern Star Resources Pty Ltd

which has an 80 percent stake. Eastern

Star Resources Pty Ltd is a subsidiary

whose shares are 100% owned by Vale SA.

In addition, 20 percent of PT. STM is

owned by PT. Antam Tbk. (nas)

Menurutnya, tahapan eksplorasi sembari mempersiapkan studi kelayakan untuk proyek tambang raksasa di bawah tanah ini akan memakan waktu sekitar lima tahun. Paling lambat, tambang emas raksasa ini sudah memulai operasinya pada 2028.

‘’Ini penambangan bawah tanah. Jadi, nggak menganggu permukaan. Makanya yang sedang dikerjakan, eksplorasi dan studi kelayakan yang sekarang ini. Studi kelayakan untuk konstruksi tambang bawah tanah yang sedang dikerjakan,” terangnya.

Mantan Kepala Bakesbangpoldagri ini mengaku akan terus mengawal percepatan realisasi tambang emas di Dompu ini. Sebab, kehadiran tambang ini akan membawa dampak yang luar biasa bagi NTB. Terlebih jika kelak beroperasi.

Berdasarkan perkiraan, tambang raksasa bawah tanah ini dapat menyerap hingga lima ribu tenaga kerja. Di fase konstruksi, tambang ini akan membutuhkan sekitar 4.000 tenaga kerja. Sementara ketika telah beroperasi, ia diperkirakan akan mem-butuhkan 1.000 tenaga kerja.

‘’Makanya kita harus manfaatkan untuk putra putri terbaik NTB khususnya di lingkar Bima dan Dompu. Pemda setempat harus menyiapkan dari sekarang,’’ katanya mengingatkan.

Untuk diketahui, PT. STM adalah pemegang KK generasi ke-7 untuk Proyek Hu’u di Kecamatan Hu’u, Kabupaten Dompu. PT. STM merupakan perusahaan patungan antara Eastern Star Resources Pty Ltd yang memiliki saham 80 persen. Eastern Star Resources Pty Ltd merupakan anak per-usahaan yang 100 persen sahamnya milik Vale SA. Selain itu, 20 persen saham PT. STM dimiliki PT. Antam Tbk. (nas)

IMA-Daily Update Page 18

PTBA, the First Mining SOE with an Anti-Bribery Certificate

PT BUKIT Asam Tbk (PTBA) officially became the first state-owned mining company to obtain ISO 370001: 2016 Anti-Bribery Management System that was audited by PT British Standards Institution Group Indonesia (BSI Group Indonesia).

BSI Group Indonesia is one of 10 SMAP certification bodies that have been accredited by the National Accreditation Committee (KAN).

Based on a press release on Monday (07/13/2020), this certification is a form of PTBA's commitment as a national coal mining company listed on the trading floor, to implement management that is not only good in management but also open and clean from gratuities and bribery.

PTBA obtained the certification results starting from the preparation stage with the formation of a team of assistants, awareness training for employees and assessment of gap analysis by an independent party.

Followed by the stages of document preparation, compilation and integration of documents and disseminating to all Business Units. Then enter the Implemen-tation stage, where the application of SMAP is in accordance with ISO 37001: 2016; conduct SMAP Internal Audit along with Corrective & Correction Action and conduct management monitoring and review.

Finally, the audit certification stage is carried out in 2 stages. The audit was carried out in two stages namely Phase I on 3-5 June 2020 and Phase II Audit on 15-18 June 2020.

PTBA, BUMN Tambang Pertama yang Kantongi Sertifikat Anti Suap

PT BUKIT Asam Tbk (PTBA) resmi menjadi perusahaan tambang pelat merah pertama yang memperoleh ISO 370001:2016 Sistem Manajemen Anti Penyuapan yang diaudit oleh PT British Standards Institution Group Indonesia (BSI Group Indonesia).

BSI Group Indonesia merupakan salah satu dari 10 lembaga sertifikasi SMAP yang telah terakreditasi Komite Akreditasi Nasional (KAN).

Berdasarkan siaran pers, Senin (13/7/ 2020), sertifikasi ini merupakan wujud komitmen PTBA sebagai perusahaan tambang batu bara nasional yang terdaftar di lantai bursa, untuk menerapkan mana-jemen yang tak hanya baik dalam pengelolaan namun juga terbuka dan bersih dari aksi gratifikasi dan penyuapan.

Hasil sertifikasi diperoleh PTBA mulai dari tahapan persiapan dengan pembentukan tim pendamping, awareness training untuk Pegawai dan penilaian gap analysis oleh pihak independen.

Dilanjutkan oleh tahapan penyusunan dokumen, menyusun dan Integrasi doku-men dan mensosialisasikan ke seluruh Unit Bisnis. Lalu masuk tahapan Implementasi, di mana penerapan SMAP sesuai dengan ISO 37001:2016; melakukan Audit Internal SMAP beserta Corrective & Correction Action dan melakukan monitoring dan tinjauan manajemen.

Terakhir adalah tahapan sertifikasi audit yang dilangsungkan dalam 2 tahap. Audit dilaksanakan dua tahap yakni Tahap I pada tanggal 3-5 Juni 2020 dan Audit Tahap II pada tanggal 15-18 Juni 2020.

IMA-Daily Update Page 19

The final results of the Audit stated that

PTBA was recommended to obtain an ISO

37001: 2016 Anti-Bribery Management

System Certificate.

Some positive notes in the audit process

say PTBA has consistently implemented

Good Corporate Governance (GCG) for

more than 10 years and has had an

Enterprise Risk Management System and

All Business Units mitigate opportunities

for Bribery or Gratuity.

PTBA President Director Arviyan Arifin

said that the directors and all levels of the

company's management fully support the

implementation of the development of an

anti-bribery management system and top

management must be an example.

It takes courage to be able to open data and

information access to external auditors

who are indeed trained to find system

defects in all business processes in the

company.

"However, for the sake of improving the

system this needs to be done so that PTBA

can Beyond Compliance and even Beyond

GCG," he said.

PT Bukit Asam Tbk is now the first

National Mining Company to obtain ISO

37001: 2016. PTBA hopes to maintain the

trust of Stakeholders and can become

National and International Benchmark

Leaders for the implementation of the ISO

37001: 2016 Anti-Bribery Management

System within the framework of

Environmental Social Governance (ESG).

(dob/dob)

Hasil final dari Audit menyatakan bahwa PTBA direkomendasikan memperoleh Sertifikat ISO 37001:2016 Sistem Mana-jemen Anti Penyuapan.

Beberapa catatan positif pada proses audit menyebutkan PTBA konsisten mengimple-mentasikan Tata Kelola Perusahaan yang baik (GCG) lebih dari 10 tahun dan telah memiliki Enterprise Risk Management

System dan Seluruh Unit Bisnis melakukan mitigasi peluang terjadinya Penyuapan atau Gratifikasi.

Direktur Utama PTBA Arviyan Arifin menyampaikan bahwa direksi dan segenap jajaran manajemen perusahaan men-dukung penuh pelaksanaan pembangunan sistem manajemen anti penyuapan dan top management harus menjadi teladan.

Perlu keberanian untuk dapat membuka

akses data dan informasi ke auditor eksternal yang memang dilatih untuk menemukan kecacatan sistem pada seluruh proses bisnis di perusahaan.

"Namun, demi perbaikan sistem hal ini perlu dilakukan sehingga PTBA bisa Beyond Compliance bahkan Beyond GCG," ujarnya.

PT Bukit Asam Tbk kini menjadi Perusahaan Tambang Nasional pertama

yang memperoleh ISO 37001:2016. PTBA berharap dapat menjaga kepercayaan Stakeholders dan dapat menjadi Benchmark Leader Nasional dan Inter-nasional untuk penerapan Sistem Mana-jemen Anti Penyuapan ISO 37001:2016 dalam kerangka Environmental Social Governance (ESG). (dob/dob)

IMA-Daily Update Page 20

European Commitment to Use EBT Makes National Coal Export

Market More Depressed Author: Edo Fernando, Editor: Ocky PR.

COAL commodity export markets to European countries are predicted to be increasingly depressed in the next few months. Because, Europe is discussing policies to shift the use of energy sources to commodities that are more environ-mentally friendly. Added pressure on the national coal industry, even though the impact of the Covid-19 pandemic outbreak has not yet ended.

The plan of European countries in order to find environmentally friendly energy sources seems increasingly serious. One of them is the policy of the German state, where in the session of the Parliamentary Assembly decided to agree to stop the use of coal as a source of electricity generation.

The German Parliament's policy is one of a series of broad European plans to reduce or even eliminate dependence on coal as a fuel for electricity generation and then switch to the use of renewable energy.

Furthermore, the agreement that was signed on July 3, 2020, will be realized by closing all power generation units that use coal fuel. For information, Germany currently has 84 steam power plants and all of them will be closed with the target until 2038 in stages.

The closure does not only occur in power plants that use coal alone. But also for power plants that use nuclear energy and are targeted to be completely closed by 2022.

Komitmen Eropa Gunakan EBT Bikin Pasar Ekspor Batubara

Nasional Makin Tertekan Penulis: Edo Fernando, Editor : Ocky PR.

PASAR ekspor komoditas batubara ke negara-negara Eropa diprediksi akan semakin tertekan dalam beberapa bulan ke depan. Pasalnya, Eropa tengah membahas kebijakan untuk meng-alihkan penggunaan sumber energi ke komo-ditas yang lebih ramah lingkungan. Bertambah lagi faktor penekan industri batubara nasional, padahal dampak dari wabah pandemi Covid-19 belum juga usai.

Rencana negara-negara Eropa dalam rangka mencari sumber energi yang ramah lingkungan tampaknya semakin serius. Salah satunya adalah kebijakan negara Jerman, di mana dalam sidang Majelis Parlemennya memutuskan untuk sepakat menghentikan penggunaan batubara sebagai sumber pembangkit listrik.

Kebijakan Parlemen Jerman itu merupakan salah satu dari rangkaian rencana secara luas negara Eropa untuk mengurangi bahkan meng-hilangkan ketergantungan akan batubara sebagai bahan bakar pembangkit listrik untuk kemudian beralih pada penggunaan energi yang terbarukan.

Lebih lanjut, kesepakatan yang sudah ditanda-tangani pada 3 Juli 2020, akan diwujudkan dengan penutupan semua unit pembangkit listrik yang menggunakan bahan bakar batu-bara. Sebagai informasi, Jerman saat ini memiliki 84 pembangkit listrik tenaga uap dan semuanya bakal ditutup dengan target hingga tahun 2038 secara bertahap.

Penutupan itu tidak hanya terjadi pada pem-bangkit listrik yang menggunakan bahan bakar batubara saja. Tetapi juga terhadap pembangkit listrik yang menggunakan energi nuklir dan ditargetkan tutup seluruhnya pada tahun 2022.

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Not only Germany, Poland is also incessant to stop the use of coal fuel and switch to renewable energy. This can be seen from the many interests of renewable energy companies that target the Polish market specifically.

Currently the Polish government chose to focus on the use of wind turbines as an energy source. He said he was preparing a lot of open fields to be used as a wind turbine. In fact they are also targeting the construction of offshore wind turbines in the Baltic Sea to be able to start operating in 2025.

German and Polish policy is a step towards the Paris agreement which was the result of a 2015 UN climate change meeting. The purpose of the agreement was to reduce carbon dioxide emissions and put the brakes on rising global temperatures below 2 degrees Celsius from the figures recorded before the Industrial Revolution took place.

Tak hanya Jerman, Polandia juga sedang gencarnya untuk menghentikan penggunaan bahan bakar batubara dan beralih ke energi yang terbarukan. Hal tersebut bisa dilihat dari banyaknya minat perusahaan-perusahaan energi terbarukan yang membidik pasar Polandia secara khusus.

Saat ini pihak pemerintah Polandia memilih untuk fokus pada penggunaan turbin angin sebagai sumber energi. Pihaknya tengah menyiapkan banyak sekali ladang terbuka untuk dijadikan tempat turbin angin. Bahkan mereka juga menargetkan pembangunan turbin angin lepas pantai di Laut Baltik untuk bisa mulai beroperasi pada tahun 2025.

Kebijakan Jerman dan Polandia merupakan langkah perwujudan dari perjanjian Paris yang merupakan hasil rapat perubahan iklim PBB yang berlangsung pada tahun 2015 lalu. Tujuan dari perjanjian itu untuk menekan emisi karbon dioksida dan mengerem peningkatan temperatur global di bawah 2 derajat celcius dari angka yang sudah tercatat

sebelum Revolusi Industri terjadi.

Sssstt... There's Good News from China, Coal Prices Rise 1%

Tirta Citradi, CNBC Indonesia

NEWCASTLE's benchmark coal price for

busy contracts traded yesterday. The good news coming from China also supports the rise in prices of Australia and Indonesia's flagship commodities.

On Monday (07/13/2020), Newcastle thermal coal prices closed up by almost 1% or precisely 0.93% to US$ 54.5/ton. This increase occurred after being corrected on three consecutive trading days last week.

Sssstt...Ada Kabar Baik dari China, Harga Batu Bara Naik 1%

Tirta Citradi, CNBC Indonesia

HARGA batu bara acuan Newcastle untuk

kontrak yang ramai diperdagangkan menguat kemarin. Kabar baik yang datang dari China turut mendukung kenaikan harga komoditas unggulan Australia dan Indonesia itu.

Pada Senin (13/7/2020), harga batu bara termal Newcastle ditutup naik nyaris 1% atau tepatnya 0,93% ke US$ 54,5/ton. Kenaikan ini terjadi setelah terkoreksi pada tiga hari perdagangan beruntun pada pekan lalu.

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Quoting Argus Media, the Chinese National Development and Reform Commission (NDRC) is reported to have t he opportunity to relax the coal import quota in the Bamboo Curtain country in line with the high price of domestic coal which has also eroded the profits of utility companies.

Argus said, China's domestic coal prices in the spot market have now reached their

highest level in 11 months on July 10. China's domestic coal prices for a calorie value of 5,500 kcal/kg on July 10 reached US$ 85.15/ton.

The domestic coal price of Panda Country has been hoisted up by increased demand during the summer, import quota which has begun to expire and cut domestic output.

The import quota in several Chinese ports

has expired for 2020, thus forcing utility companies to rely on domestic supply for restocking.

Together with weak demand due to the Covid-19 pandemic, this has triggered a decline in imported coal prices. The price of Newcastle coal collapsed and the price of Indonesia's benchmark coal (HBA) in July was pegged to the lowest in four years.

Meanwhile, the price of Indonesian coal

with a calorie of 3,800 kcal/kg was also recorded at a record low of US$ 23.41/ton free on board (FOB) last July 9.

China's national coal imports have reached 148.71 million tons in the first five months of this year. This volume increased by 17% compared to the same period before. But imports began to slow in May when China limited its import quota to 22.06 million tons and made it fall 20% from the year-ago period.

Mengutip Argus Media, Komisi Reformasi dan Pembangunan Nasional China (NDRC) dikabarkan berpeluang untuk melonggar-kan kuota impor batu bara Negeri Tirai Bambu seiring dengan tingginya harga batu bara domestik yang turut menggerus laba perusahaan utilitas.

Argus menyebutkan, harga batu bara domestik China di pasar spot kini sudah menyentuh level tertingginya dalam 11 bulan pada 10 Juli lalu. Harga batu bara domestik China untuk nilai kalori 5.500 kcal/kg pada 10 Juli mencapai US$ 85,15/ton.

Harga batu bara domestik Negeri Panda telah terkerek naik oleh peningkatan permintaan saat musim panas, kuota impor yang mulai kadaluwarsa dan pe-mangkasan output domestik.

Kuota impor pada beberapa pelabuhan China sudah kadaluwarsa untuk tahun 2020 ini, sehingga memaksa perusahaan utilitas untuk bertumpu pada pasokan domestik untuk restocking.

Bersama dengan lemahnya permintaan akibat pandemi Covid-19, hal ini memicu penurunan harga batu bara impor. Harga batu bara Newcastle ambles dan harga batu bara acuan (HBA) Indonesia bulan Juli dipatok terendah dalam empat tahun.

Sementara untuk harga batu bara RI berkalori 3.800 kcal/kg juga tercatat di rekor terendahnya di US$ 23,41/ton free on board (fob) pada 9 Juli lalu.

Impor batu bara nasional China telah mencapai 148,71 juta ton pada lima bulan pertama tahun ini. Volume ini naik 17% dibanding periode yang sama sebelumnya. Namun impor mulai melambat pada Mei ketika China membatasi kuota impor sebesar 22,06 juta ton dan membuatnya turun 20% dari periode tahun lalu.

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This condition is a challenge for the NDRC because it must consider domestic coal mining companies as well as local utility companies. The NDRC is now encouraging producers to increase their production to meet high demand.

But reportedly, the NDRC is now more likely to loosen import quotas because high domestic coal prices have eroded profits from utility companies.

The NDRC has landed in a conundrum as it seeks to create conditions conducive to both Chinese coal producers and Chinese utilities. It has pushed domestic coal producers recently to raise production to help with high domestic prices and meet strong demand.

This follows a reduction in domestic supply from late April when the authorities cut back on sale permits in major coal-producing regions, such as Inner Mongolia and Shaanxi province, forcing local mines to lower output.

But the NDRC has had many appeals in recent weeks from large generators, which have been concerned about the high price of domestic coal and the negative impact on utility profits.

The NDRC allows easing of import restrictions because coal consumption in coastal areas is stronger than expected.

The south and east coast regions are facing power shortages, perhaps because some ultra-high voltage power transmission lines are expected to be damaged by flooding in areas along the Yangtze River. The south and east coast regions usually rely on this transmission line to receive power.

Any interruptions seen in hydropower transmission can increase the demand for coal, thereby increasing the demand for coal imports. CNBC INDONESIA RESEARCH TEAM (twg twg)

Kondisi ini menjadi tantangan bagi NDRC karena harus mempertimbangkan perusahaan tambang batubara domestik sekaligus per-usahaan utilitas lokal. NDRC kini mendorong para produsen untuk meningkatkan produksi-nya guna memenuhi permintaan yang tinggi.

Namun kabarnya,NDRC kini lebih berpeluang untuk melonggarkan kuota impor lantaran tingginya harga batu bara domestik telah menggerus laba dari perusahaan utilitas.

The NDRC has landed in a conundrum as it seeks to create conditions conducive to both Chinese coal producers and Chinese utilities. It has pushed domestic coal producers recently to raise production to help dampen high domestic prices and meet strong demand.

This follows a reduction in domestic supply from late April when the authorities cut back on sale permits in major coal-producing regions, such as Inner Mongolia and Shaanxi province, forcing local mines to lower output.

But the NDRC has had many appeals in recent weeks from large generators, which have been concerned about the high price of domestic coal and the negative impact on utility profits.

NDRC memungkinkan pelonggaran pemba-tasan impor karena konsumsi batu bara di wilayah pesisir lebih kuat dari yang diper-kirakan.

Daerah pantai selatan dan timur menghadapi kekurangan daya, mungkin karena beberapa saluran transmisi listrik tegangan ultra-tinggi diperkirakan rusak akibat banjir di daerah di sepanjang Sungai Yangtze. Wilayah pantai selatan dan timur biasanya meng-andalkan jalur transmisi ini untuk mene-rima daya.

Gangguan apa pun yang terlihat pada transmisi tenaga air dapat meningkatkan permintaan untuk tenaga batu bara sehingga meningkatkan permintaan untuk impor batu bara. TIM RISET CNBC INDONESIA (twg/twg)

IMA-Daily Update Page 24

Labor tensions add to copper’s steady drumbeat of supply threats Bloomberg News

THE STEADY stream of supply news fueling copper’s rally continued on Monday, with one

Chilean mine reportedly cutting its workforce and another facing a strike.

Lundin Mining Corp.’s Candelaria is reducing its headcount by 7% as the coronavirus pandemic spreads in the top copper-producing nation, according to unions. In the same region of northern Chile, supervisors at Antofagasta Plc’s Centinela mine rejected a final wage offer and voted to strike.

The cutback and potential labor disruption add to concerns over Chile’s ability to maintain output as more workers fall ill, with copper prices surging to the highest in two years. Major mines in the country have shelved non-essential activities and demobilized workers to focus on output.

Candelaria notified the mine’s five unions on Monday, citing a restructuring as a result of the pandemic’s impact. Lundin didn’t respond to requests for comment.

“The saddest part about this is that they are active workers,” said Evelyn Walter, president of one of Candelaria’s unions. “With collective-bargaining negotiations starting in August, we feel it’s a form of oppression at a time when workers have already been hit by the pandemic.”

Lundin acquired its 80% stake in Candelaria from Freeport-McMoRan Inc. in 2014. The complex, comprised of open-pit and underground operations in the Atacama region, produced 146,330 tons last year, according to Lundin.

At Centinela, supervisors who make up 396 of a staff of about 2,000 at the mine voted 94% against the company’s final offer as part of their collective-bargaining process, Celso Pardo, president of their union, said by telephone.

The outcome mirrors the result of a vote by workers at Antofagasta’s Zaldivar mine on Friday. Still, the company has the option to undergo government mediation at both mines, meaning there is still time to prevent strikes.

“Mining hasn’t stopped, operations haven’t been paralyzed even in the midst of the pandemic, which is why we feel more empowered to ask for what we deserve,” Pardo said.

Price momentum

Copper extended an eight-week winning streak in London as risks to South American supplies grow just as the demand outlook improves in China, the top consumer of the metal.

The metal widely regarded as an economic bellwether has benefited over the past two months from a confluence of positive factors, with supplies at risk as lockdowns ease. The latest lift has come as bullish sentiment has enveloped Chinese financial markets, marked by local stocks outpacing gains in every other market worldwide.

IMA-Daily Update Page 25

“Supply threats can be a forceful temporary driver and on that basis momentum can take it higher,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said by email.

(By Jackie Davalos and James Attwood, with assistance from Winnie Zhu and Yvonne Yue Li)

China's June coal imports fall 6.7% y/y on port curbs

CHINA’s coal imports in June dropped 6.7% from the same period last year, as stringent import restrictions at ports impeded purchases by traders and power plants, despite solid fuel demand.

China, the world’s top coal importer, brought in 25.29 million tonnes of the fuel last month, data from the General Administration of Customs showed on Tuesday.

That compares with 27.1 million tonnes in June last year but is still higher than 22.06 million in May, driven by stockpiling demand ahead of the peak summer season.

For the first half of 2020, China brought in a total of 173.99 million tonnes of coal, up 12.7% over the corresponding period last year.

(Reporting by Muyu Xu and Tom Daly; Editing by Clarence Fernandez)

Vale, Kobe Steel and Mitsui & Co to combine ‘green’ iron-making solutions

Posted by Daniel Gleeson

VALE says it has reached a non-binding heads of agreement with Kobe Steel and Mitsui & Co to establish a new venture to supply low CO2 iron metallics and iron-making solutions to the steel industry.

The heads of agreement establishes the preliminary terms and conditions for the creation of a new venture with the objective of delivering low CO2 metallics to the global market, providing new technological solutions to its clients, Vale said.

“An evaluation period has already begun to deepen the cooperation and to gauge market demand for several existing and new steel-making solutions prior to a final agreement for the creation of the NewVen,” it added.

Vale has previously declared 2030 targets for Scope 1 and 2 emissions in line with a commitment to the Paris Agreement.

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Steel production, part of Vale’s Scope 3 emissions, while essential for people’s daily lives, generates considerable CO2 emissions. “Vale is committed to contribute with its steel-making clients in this challenge of reducing their carbon footprint,” it said.

The new venture will use existing and new low-CO2 iron making technology such as Tecnored®️ technology and the MIDREX®️ Process.

Tecnored is a 100%-owned Vale subsidiary focused on developing a low carbon pig iron process through the use of energy sources, such as biomass, syn-gas and hydrogen, that emits less CO2 than the traditional coal and coke iron-making process. Using biomass, the path to economic carbon neutrality may be achieved in the medium term, according to Vale.

MIDREX Technologies, a 100%-owned Kobe Steel subsidiary, is a world leading direct reduction ironmaking (DRI) technology. Each year, MIDREX plants produce more than 60% of the entire world’s DRI (example above) and more than 80% of the DRI produced by all shaft furnace technologies. Since it uses both natural gas and hydrogen as a reductant in the process, its CO2 emission level is much less than compared with a blast furnace.

China urges coal miners to boost output ahead of summer power use

CHINA’s central state planner urged miners to boost domestic coal output and storage to ensure sufficient energy supplies during the peak summer season, while asking local authorities to maintain coal import restrictions.

The moves came on Thursday in a meeting called by the state planner, the National Development and Reform Commission (NDRC). The meeting, held partly online, involved 18 regional governments, the State Grid Corporation, coal miners, power generators and oil companies, according to a WeChat posting from a State Grid think tank on Monday.

China’s peak power use comes during summer, when air-conditioning use rises to cool homes and offices.

“Top coal mining regions, especially Shanxi, Shaanxi and Inner Mongolia, should ramp up production and increase market supplies,” said the NDRC, according to the State Grid.

While shutting down small mines, some regions - including the western areas of Inner Mongolia where many big coal mines are located - have been reining in illegal production since May, helping to drive benchmark coal prices up by 25%.

The NDRC ordered coal buyers to fix at least 80% of both their domestic and overseas purchases in long-term contracts, up from 75%.

“Imported coal is cheaper than domestic, and some countries have cut coal consumption to near zero, which led to drastic increase on coal imports,” said the NDRC.

“We will continue to orderly control coal imports, trying to bring in less during the slack season and more during the peak season, to be in line with market needs.”

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China had stepped up customs checks for coal imports through lengthy processing delays and import quotas, following record imports for the first five months of the year.

The NDRC did not respond to a faxed request for comment.

The NDRC also asked local authorities to build up coal stocks to 600 million tonnes to ensure sufficient supplies and stabilise coal prices.

Reporting by Muyu Xu and Tom Daly; Editing by Tom Hogue

Two coal producers merge to form China’s 2nd-largest coal miner By Wang Sheng

CHINA's coal mining giant Yankuang Group will merge with Shandong Energy Group, a

statement by the Shandong Energy Group said on Monday. The merger is likely to be completed within a year, and the new company is expected to become China's second-largest coal miner.

After the reorganization of the two groups in East China's Shandong Province, the newly

incorporated company will continue to operate under the name Shandong Energy Group, a source close to Yankuang told the Global Times Monday. It is expected to become China's second-largest coal producer, just behind the state-owned China Energy Investment Corporation (CEIC).

Both Yankuang and Shandong Energy are owned by the Shandong Provincial Stated-owned Assets Supervision and Administration Commission.

Li Xiyong, chairman of Yankuang, will be chairman of the new Shandong Energy Group, and

Man Shengang, a member of the Standing Committee of the Party Committee of Shandong Energy Group, will serve as president of the new company, the source said.

Yankuang produced 166 million tons of coal in 2019, ranking fifth in China, and Shandong

Energy produced 125 million tons, ranking sixth, according to media reports.

The new company's assets are expected to top 637.9 billion yuan ($91.2 billion), with operating revenues of 637.1 billion yuan, said the statement. The two companies' combined operating revenues in 2019 surpassed those of Carrefour, which ranked 81th on the Fortune Global 500 list last year.

The new company will further consolidate traditional coal industries including coal mining,

coal-fired power generation and coal chemicals, and will extend to other emerging industries such as high-end equipment and new energy materials, according to the statement.

"Consolidating the assets of the two companies will take time, estimated at one year, by which

time the restructuring will have been completed," the source said.

IMA-Daily Update Page 28

The merger of Yankuang and Shandong Energy comes as China forges ahead with the reform of its stated-owned enterprises. The newly merged company will further increase its competitiveness on the market as it will have a whole industrial chain integrating coal production, coal-fired power plants and coal chemicals, analysts said.

Whitehaven optimises NSW operations amid global slowdown Vanessa Zhou

WHITEHAVEN Coal expects to receive a government approval for its Vickery extension project in New South Wales in the next few weeks.

The company hopes to jack up Vickery’s capacity to 10 million tonnes a year with on-site processing and rail infrastructure – a boost from the current 4.5 million tonnes capacity of run-of-mine (ROM) coal a year.

Whitehaven acquired the mine from Rio Tinto back in 2010, with extension plans to construct an open-cut coal mine and associated on-site infrastructure about 25 kilometres north of Gunnedah.

In May this year, Whitehaven received the all-clear from the NSW Government Department of Planning and Environment, with the final call for green lighting the project awaiting the result of the second public hearings held by the Independent Planning Commission (IPC).

Prior to the acquisition, Rio had undertaken small-scale underground and larger-scale open cut mining on-site from 1991 to 1998.

Whitehaven continued its progress on design work for the coal handling and preparation plant, rail spur and other infrastructure during the June quarter.

“Against an uncertain global economic backdrop, Whitehaven is focussed on optimising existing operations and observing disciplined capital management,” Whitehaven chief executive Paul Flynn said.

The company achieved a record ROM coal production of 8.2 million tonnes in the June quarter, up 17 per cent on the previous corresponding period.

It also met its production guidance with 20.6 million tonnes for the 2020 financial year on the back of record quarterly output at the Maules Creek open cut mine in New South Wales (4.17 million tonnes of managed production).

Whitehaven’s output at Maules Creek, however, was 1 million tonnes below the previous financial year due to labour shortages, drought conditions and regional bushfires.

“Despite drought, bushfires and COVID-19 it was great to finish the year so strongly and achieve our ROM and managed sales guidance,” Flynn said.

“We recorded our best ever safety result – 4.13 TRIFR (total recordable injury frequency rate) – which is a credit to the team and the strong safety culture we are building across sites.”

IMA-Daily Update Page 29

Whitehaven also met its production guidance at the Narrabri underground longwall mine in New South Wales with 6.1 million attributable tonnes.

However, the company couldn’t replicate the same result at the Gunnedah open cut mines in New South Wales, producing 200,000 tonnes below its 2020 financial year guidance of 4–4.5 million tonnes a year.

Vietnam first-half coal imports surge to record high as power demand grows

VIETNAM’s coal imports in the first half of this year surged by more than 50% to a record high, government data showed on Monday, mostly to feed the country’s growing number of coal-fired power plants.

Coal imports in the January-June period rose 53.8% from a year earlier to 31.57 million tonnes, the Customs Department said in a statement.

Vietnam turned from a net coal exporter to a net importer about five years ago and has become more reliant on imported coal for its electricity production, though the government is seeking to reduce its coal reliance and boost renewables.

Coal-fired plants now account for around 35% of Vietnam’s installed power generation capacity, a ratio that will stay unchanged for the next five years, according to the Ministry of Industry and Trade’s institute of energy.

Its coal imports in the first half of this year, mostly from Indonesia, Australia and Russia, exceeded the domestic coal production of 25.27 million tonnes during the same period, according to government data.

Last year’s coal imports nearly doubled from a earlier to 43.77 million tonnes.

The ministry last year said Vietnam would face severe power shortages from 2021 as construction of new plants lags demand. Electricity consumption is expected to exceed supply by 6.6 billion kWh in 2021, and 15 billion kWh in 2023.

Last week, Vietnam’s state oil firm PetroVietnam said it will stop developing new coal fired power plants and wants to venture into renewable energy sources, as domestic crude oil production has peaked at most of its offshore oil fields. Reporting by Khanh Vu; Editing by Martin Petty