IMA-Daily Update Page 1

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Covid Effect, Domestic Coal Absorption Only 55.5% Efek Covid, Penyerapan Batu Bara Domestik Baru 55,5% Ready to Increase Margin, Nickel Issuers Maintain Expenses Amid Surging Metal Prices Siap Pertebal Margin, Emiten Nikel Jaga Beban di Tengah Lonjakan Harga Logam Intense Diversification, Bukit Asam Shares Enter the Investment Radar Gencar Diversifikasi, Saham Bukit Asam Masuk Radar Investasi United Tractors (UNTR) increases share ownership in the subsidiary United Tractors (UNTR) menambah kepemilikan saham di anak usaha Injecting USD 15 Million to Masmindo, Indika Explores Gold Commodities Suntik USD15 Juta Ke Masmindo, Indika Jajaki Komoditas Emas Until August, Coal Exports Record Only 50.9% Hingga Agustus, Ekspor Batu Bara Tercatat Baru 50,9% Domestic Coal Needs Decreased, Export Market Becomes Hope Kebutuhan Batu Bara Domestik Berkurang, Pasar Ekspor Jadi Harapan The Ministry of EMR admits that mineral and coal mining exploration is still small Kementerian ESDM akui eksplorasi tambang mineral dan batubara masih mini Obstructed by Economic Issues, This is a Continuation of the Coal DME Project Terganjal Isu Keekonomian, Ini Kelanjutan Proyek DME Batu Bara Coal Touches the Highest Level 3 Months, This is the Strong Medicine

CNBC Indonesia Bisnis Investor Daily Kontan Dunia Tambang CNBC Indonesia Bisnis Kontan Bisnis CNBC Indonesia

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Batu Bara Sentuh Level Tertinggi 3 Bulan, Ini Obat Kuatnya RESEARCH: Iron ore price spike ends; coking coal price recovery begins China Hongqiao kicks off aluminium production in Yunnan AngloGold starts commercial production at Boston Shaker FQM’s Zambian copper mine exceeds production targets Weekly US coal production falls to seven-week low, all basins dip: EIA

Fastmarkets Reuters Mining.com Mining Weekly S&P Global Platts

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IMA-Daily Update Page 3

Covid Effect, Domestic Coal Absorption Only 55.5% Anisatul Umah, CNBC Indonesia

THE REALIZATION of coal absorption for

domestic interests (Domestic Market Obligation/DMO) until August 2020 was recorded at only 86.09 million tons or around 55.5% of this year's domestic coal absorption target of 155 million tons.

This is based on the publication of Minerba One Data Indonesia (MODI) published on the website of the Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources, which was quoted by CNBC Indonesia on Thursday (17/09/ 2020).

From the MODI data, it can be seen that domestic coal absorption in July and August increased compared to June. In fact, the absorption of coal domestically in August seems to have exceeded the absorption as before the Covid-19 pandemic at the beginning of the year.

Domestic coal absorption in August was recorded at 10.83 million tons, an increase compared to absorption in July which was 10.22 million tons. Absorption in August was even higher than January and February, which were recorded at 10.68 million tons and 10.39 million tons, respectively.

Based on MODI data, it can be seen that when the beginning of the Covid -19 pandemic in Indonesia in March and April it had not had an impact on reducing coal consumption. In fact, consumption in these two months increased compared to before the pandemic, namely 11.64 million tons in March and 12.29 million tons in April 2020.

Efek Covid, Penyerapan Batu Bara Domestik Baru 55,5%

Anisatul Umah, CNBC Indonesia

REALISASI penyerapan batu bara untuk

kepentingan domestik (Domestic Market Obligation/DMO) hingga Agustus 2020 ter-catat baru mencapai 86,09 juta ton atau sekitar 55,5% dari target penyerapan batu bara domestik tahun ini yang sebesar 155 juta ton.

Hal tersebut berdasarkan data publikasi Minerba One Data Indonesia (MODI) yang dipublikasikan di situs Direktorat Jenderal Mineral dan Batu Bara Kementerian Energi dan Sumber Daya Mineral, yang dikutip CNBC Indonesia pada Kamis (17/09/2020).

Dari data MODI tersebut terlihat penye-rapan batu bara domestik pada Juli dan Agustus meningkat dibandingkan Juni. Bahkan, penyerapan batu bara di dalam negeri pada Agustus ini terlihat melampaui penyerapan seperti sebelum terjadinya pandemi Covid-19 pada awal tahun.

Penyerapan batu bara domestik pada Agustus tercatat mencapai 10,83 juta ton, naik dibandingkan penyerapan pada Juli yang sebesar 10,22 juta ton. Penyerapan pada Agustus ini bahkan lebih tinggi di-bandingkan Januari dan Februari yang masing-masing tercatat sebesar 10,68 juta ton dan 10,39 juta ton.

Berdasarkan data MODI ini terlihat saat awal pandemi Covid-19 di tanah air pada Maret dan April belum berdampak pada penurunan konsumsi batu bara. Bahkan konsumsi pada dua bulan tersebut me-ningkat dibandingkan sebelum terjadinya pandemi, yakni 11,64 juta ton pada Maret dan 12,29 juta ton pada April 2020.

IMA-Daily Update Page 4

However, domestic coal consumption appears to have plummeted as it entered May and further decreased in June, absorbing only 10.38 million tons and 9.66 million tons, respectively, when Large-Scale Social Restrictions (PSBB) were still underway.

As is known, the government is targeting the absorption of coal for domestic purposes this year to reach 155 million tons, of which 70 percent is allocated for power plants, which reach 109 million tons. Then 10.6% or about 16.52 million tonnes for processing and refining needs, 9.4% or around 14.54 million tonnes for cement, then for textile and paper factories each allocated 6.54 million tonnes, and for fertilizer factories of 1.73 million tons.

PT PLN (Persero) as the largest coal absorber in the country revealed that the existence of PSBB in several regions in Indonesia in the last few months resulted in a decrease in electricity load, thereby reducing coal consumption.

The Indonesian Coal Mining Association (APBI) also estimates that domestic coal absorption by the end of 2020 will only be around 120-125 million tonnes or only 77.42% of the 155 million ton target.

APBI Executive Director Hendra Sinadia said that the Covid-19 pandemic had sharply corrected domestic coal absorp-tion. Apart from domestic absorption, he added, Covid-19 also had an impact on coal exports.

"Our estimate is around 120-125 million tonnes (domestic consumption). Economic recovery will certainly also affect domestic consumption demand," he said when contacted via short message to CNBC Indonesia, Friday (28/08/2020).

The following is the latest breakdown of the realization of the monthly coal DMO until August 2020:

Namun, konsumsi batu bara domestik terlihat anjlok saat memasuki Mei dan semakin anjlok pada Juni yang masing-masing hanya menyerap 10,38 juta ton dan 9,66 juta ton ketika Pembatasan Sosial Berskala Besar (PSBB) masih berlangsung.

Seperti diketahui, pemerintah menarget-kan penyerapan batu bara untuk kepen-tingan domestik pada tahun ini mencapai 155 juta ton, di mana 70% dialokasikan untuk pembangkit listrik yang mencapai 109 juta ton. Lalu 10,6% atau sekitar 16,52 juta ton untuk kebutuhan pengolahan dan pemurnian, 9,4% atau sekitar 14,54 juta ton untuk semen, lalu untuk pabrik tekstil dan kertas masing-masing dialokasikan sebesar 6,54 juta ton, dan untuk pabrik pupuk sebesar 1,73 juta ton.

PT PLN (Persero) selaku penyerap batu bara terbesar di dalam negeri mengung-kapkan adanya PSBB di beberapa wilayah di Indonesia pada beberapa bulan lalu mengakibatkan menurunnya beban listrik, sehingga mengurangi konsumsi batu bara.

Asosiasi Pertambangan Batubara Indonesia (APBI) pun memperkirakan serapan batu bara domestik hingga akhir 2020 ini hanya sekitar 120-125 juta ton atau hanya 77,42% dari target 155 juta ton.

Direktur Eksekutif APBI Hendra Sinadia mengatakan pandemi Covid-19 membuat serapan batu bara domestik terkoreksi tajam. Selain serapan domestik, imbuhnya, Covid-19 juga berdampak pada ekspor batu bara.

"Estimasi kami sekitar 120-125 juta ton (konsumsi domestik). Recovery ekonomi tentu juga berpengaruh terhadap permin-taan konsumsi dalam negeri," ungkapnya saat dihubungi melalui pesan singkat kepada CNBC Indonesia, Jumat, (28/08/2020).

Berikut rincian terbaru dari realisasi DMO batu bara bulanan hingga Agustus 2020:

IMA-Daily Update Page 5

1. January: 10.68 million tons

2. February: 10.39 million tons

3. March: 11.64 million tons

4. April: 12.29 million tons

5. May: 10.38 million tons

6. June: 9.66 million tons

7. July: 10.22 million tons

8. August: 10.83 million tons

Total January-August 2020: 86.09 million tons. (wia)

1. Januari : 10,68 juta ton

2. Februari : 10,39 juta ton

3. Maret : 11,64 juta ton

4. April : 12,29 juta ton

5. Mei : 10,38 juta ton

6. Juni : 9,66 juta ton

7. Juli : 10,22 juta ton

8. Agustus : 10,83 juta ton

Total Januari-Agustus 2020: 86,09 juta ton. (wia)

Ready to Increase Margin, Nickel Issuers Maintain Expenses Amid

Surging Metal Prices Finna U. Ulfah

NICKEL mining companies will maintain

production cost efficiency so that they can

widen their margins amid the global nickel price hike.

Based on Bloomberg data, at the close of

trading Wednesday (9/16/2020) nickel prices on the London stock exchange rose

0.18 percent to the level of US$ 15,226 per ton.

Nickel prices have slowly recovered since

falling at the end of March to a level of US$ 10,880 per ton. Prices have risen 39.94

percent from that low. Meanwhile, during the current year 2020 prices have

strengthened 8.56 percent.

Finance Director of PT Vale Indonesia Tbk.,

Bernardus Irmanto, said that the company will carefully respond to the development

of global nickel prices which are currently soaring.

Siap Pertebal Margin, Emiten Nikel Jaga Beban di Tengah

Lonjakan Harga Logam Finna U. Ulfah

EMITEN pertambangan nikel akan mem-

pertahankan efisiensi biaya produksi

sehingga dapat mempertebal margin di

tengah lonjakan harga nikel global.

Berdasarkan data Bloomberg, pada penu-

tupan perdagangan Rabu (16/9/2020)

harga nikel di bursa London menguat 0,18

persen ke level US$15.226 per ton.

Harga nikel secara perlahan pulih sejak

anjlok pada akhir Maret hingga ke level

US$10.880 per ton. Harga telah menguat

39,94 persen dari level terendah itu.

Sementara itu, sepanjang tahun berjalan

2020 harga telah menguat 8,56 persen.

Direktur Keuangan PT Vale Indonesia Tbk.,

Bernardus Irmanto mengatakan bahwa

perseroan akan menyikapi perkembangan

harga nikel global yang tengah melonjak

saat ini dengan hati-hati.

IMA-Daily Update Page 6

This is because, according to him, the current increase in nickel prices is driven more by positive market sentiment expectations rather than fundamental factors, such as the declining supply of nickel on the London stock exchange. In fact, the current nickel supply on the London stock exchange is still likely to be stable, even rising.

Thus, it is not impossible that prices will decline again in the rest of this year or until next year.

"The company's strategy remains the same, trying to optimize production by the end of the year while controlling costs," said Bernardus to Bisnis, Thursday (17/9/2020).

The company will maintain production costs in a lower position amid the projected production volume which is higher than expected at the beginning of the year.

Thus, INCO has the potential to score even better performance in the remainder of this year if the increase in global nickel prices persists until the end of the year.

To note, the production volume of the issuer coded as the INCO effect by the end of the year rose to 73,000 tons in line with the furnace 4 renovation project which was forced to delay until next year due to the Covid-19 pandemic.

Meanwhile, the company's production cost per unit until August 2020 is in the range of US$ 6,700 per ton, lower than the production cost per unit until June 2020 of around US$ 7,000 per ton.

In addition, this realization is also much lower than the production cost per unit of INCO throughout 2019 of US$ 7,500 per ton.

Pasalnya, menurut dia kenaikan harga

nikel saat ini lebih didorong sentimen

ekspektasi positif pasar ketimbang faktor

fundamental, seperti persedian nikel di

bursa London yang turun. Nyatanya, saat

ini persedian nikel di bursa London masih

cenderung stabil, bahkan naik.

Dengan demikian, bukan tidak mungkin

harga kembali melemah di sisa tahun ini

atau hingga tahun depan.

“Strategi perusahaan masih tetap sama,

berusaha mengoptimalkan produksi

sampai dengan akhir tahun sembari

mengontrol biaya,” ujar Bernardus kepada

Bisnis, Kamis (17/9/2020).

Perseroan akan mempertahankan beban produksi di posisi yang lebih rendah di

tengah volume produksi yang diproyeksi lebih tinggi daripada perkiraan pada awal

tahun.

Dengan demikian, INCO berpotensi men-cetak kinerja yang lebih moncer di sisa

tahun ini jika kenaikan harga nikel global berhasil bertahan hingga akhir tahun.

Untuk diketahui, volume produksi emiten berkode efek INCO itu hingga akhir tahun

naik menjadi 73.000 ton seiring dengan proyek peremajaan furnace 4 yang

terpaksa mundur hingga tahun depan akibat pandemi Covid-19.

Adapun, biaya produksi per unit perseroan

hingga Agustus 2020 berada di kisaran US$6.700 per ton, lebih rendah daripada

biaya produksi per unit hingga Juni 2020 di kisaran US$7.000 per ton.

Selain itu, realisasi itu juga jauh lebih

rendah dibandingkan dengan biaya produksi per unit INCO sepanjang 2019

sebesar US$7.500 per ton.

IMA-Daily Update Page 7

Meanwhile, SVP Corporate Secretary of PT Aneka Tambang Tbk. Kunto Hendra-

pawoko said that in the midst of the rising price trend, the company will also continue

to further reduce the cash cost of production to increase cost competitive-

ness so as to accelerate the company's revenue until the end of the year.

The issuer coded as ANTM shares also

admits that it will continue to strive to increase production and sales of main

commodities.

"We are optimistic that the company's

nickel business performance will remain optimal in 2020, through selective

evaluation by prioritizing the priority scale in the preparation of capital expenditure

plans, in addition to supporting major development projects and exploration

activities," said Kunto to Bisnis, Wednes-day (16/9/2020).

Meanwhile, this year the company targets ferronickel production and sales in the

range of 27,000 tonnes, while domestic nickel ore sales are around 1 million wmt.

As of June 2020, ANTM managed to have a

cash cost of ferronickel production of US$ 3.33 per pound.

On the other hand, MNC Sekuritas Research Associate Catherina Vincentia

said that the increase in metal prices, both precious and basic metals, is a sign of a

revival for the mineral mining sector.

The price of gold to nickel is believed to be

on track to increase until the end of the year.

However, his party still maintains a neutral

position against stocks in the mineral mining sector with the main options being

ANTM, MDKA, and INCO.

Sementara itu, SVP Corporate Secretary PT Aneka Tambang Tbk. Kunto Hendra-pawoko mengatakan bahwa di tengah tren kenaikan harga, perseroan juga akan tetap menurunkan lebih lanjut biaya tunai produksi untuk meningkatkan daya saing biaya sehingga dapat mengakselerasi pendapatan perseroan hingga akhir tahun.

Emiten berkode saham ANTM itu juga mengaku akan terus berupaya meningkat-kan capaian produksi dan penjualan komoditas utama.

“Kami optimis, kinerja bisnis nikel per-seroan akan tetap optimal pada 2020, melalui evaluasi yang selektif dengan mengedepankan skala prioritas dalam penyusunan rencana belanja modal, selain mendukung proyek pengembangan utama dan aktivitas eksplorasi,” ujar Kunto kepada Bisnis, Rabu (16/9/2020).

Adapun, pada tahun ini per seroan menargetkan produksi dan penjualan feronikel di kisaran 27.000 TNi, sedangkan untuk penjualan bijih nikel dalam negeri di kisaran 1 juta wmt.

Hingga Juni 2020, ANTM berhasil memiliki biaya tunai produksi feronikel sebesar US$3,33 per pon.

Di sisi lain, Research Associate MNC Sekuritas Catherina Vincentia mengatakan bahwa kenaikan harga logam, baik logam mulia maupun logam dasar, menjadi sinyal kebangkitan untuk sektor pertambangan mineral.

Harga emas hingga nikel diyakini masih akan berada di jalur kenaikannya hingga akhir tahun.

Kendati demikian, pihaknya masih mem-pertahankan posisi neutral terhadap saham sektor pertambangan mineral dengan pilihan saham utama adalah ANTM, MDKA, dan INCO.

IMA-Daily Update Page 8

"We recommend buying for ANTM with a TP of Rp920 and INCO with a TP of Rp3,590 in line with the increase in gold and nickel prices which will stil l strengthen while year to date stock prices are still correcting," wrote Catherina as quoted in her research publication, Thursday (17/9/2020).

Meanwhile, for MDKA, Catherine recommended sell trading due to potential profit taking from investors. Editor: Aprianto Cahyo Nugroho

“Kami rekomendasi buy untuk ANTM dengan TP Rp920 dan INCO dengan TP Rp3.590 seiring dengan kenaikan harga emas dan nikel yang masih akan menguat sedangkan secara year to date harga saham masih terkoreksi,” tulis Catherina seperti dikutip dari publikasi risetnya, Kamis (17/9/2020).

Sementara itu, untuk MDKA, Catherine merekomendasikan trading sell karena potensi profit taking dari investor. Editor : Aprianto Cahyo Nugroho

Intense Diversification, Bukit Asam Shares Enter the

Investment Radar Parluhutan Situmorang

THE GLOBAL economic recovery and the

winter season have the potential to restore demand and the selling price of coal in the fourth quarter of 2020. This will have a positive impact on the financial performance of PT Bukit Asam Tbk (PTBA) this year.

Danareksa Sekuritas analyst Stefanus Darmagiri revealed that these two factors are expected to increase coal demand, and the selling price may rise again from the current level of US$ 50 per ton.

The increase in selling prices will also be triggered by decisions by coal exporting countries to cut production volume targets, such as Indonesia, Australia and Russia.

"Demand for coal is projected to enter a recovery period in the third quarter of 2020 after the PSBB easing, which will certainly increase demand for coal from the electricity industry. However,...

Gencar Diversifikasi, Saham Bukit Asam Masuk Radar

Investasi Parluhutan Situmorang

PERBAIKAN ekonomi global dan musim

dingin berpotensi memulihkan permintaan serta harga jual batu bara pada kuartal IV-2020. Hal tersebut akan berdampak positif terhadap kinerja keuangan PT Bukit Asam Tbk (PTBA) tahun ini.

Analis Danareksa Sekuritas Stefanus Darmagiri mengungkapkan, dua faktor tersebut diharapkan menaikkan permin-taan batu bara, dan harga jual kemung-kinan bisa kembali naik dari level saat ini US$ 50 per ton.

Kenaikan harga jual juga bakal dipicu oleh keputusan negara eksportir batu bara yang memangkas target volume produksi, seperti Indonesia, Australia, dan Rusia.

“Permintaan batu bara diproyeksi mulai memasuki masa pemulihan pada kuartal III-2020 setelah pelonggaran PSBB yang tentunya akan menaikkan permintaan batu bara dari industri listrik. Namun,...

IMA-Daily Update Page 9

However, the recovery may not be significant as seen from Bukit Asam's decision to cut its sales volume target from 29.9 million tons to 24.9 million tons," wrote Stefanus in his recent research.

Meanwhile, Bukit Asam's management decision to lower its coal sales volume target from 30 million tons to 25 million tons is in accordance with the weakening market conditions. Trimming the target prompted Danareksa Sekuritas to revise Bukit Asam's financial performance target for 2020-2022. The net profit target has been lowered from Rp 3.95 trillion to Rp 2.45 trillion this year compared to the 2019 realization of Rp 4.05 trillion.

Likewise, the revenue projection for 2020 is revised down from Rp 22.53 trillion to Rp 17.35 trillion compared to last year's realization of Rp 21.78 trillion.

Therefore, Danareksa Sekuritas lowered its target for PTBA's shares from Rp 3,200 to Rp 2,900, with a recommendation to maintain the purchase.

Meanwhile, in the long term, according to Stefanus, Bukit Asam's decision to continue to increase the carrying capacity of railroads and coal ports will support growth. The company targets the total rail and coal port transport capacity to increase to 40 million tons in 2024-2025 compared to this year's target carrying capacity of 32 million tons.

Currently, the company is increasing the carrying capacity of Danareksa Sekuritas' analysts, Stefanus Darmagiri, said the two factors are expected to increase demand for coal, and the selling price may rise again from the current level of US$ 50 per ton. The increase in selling prices will also be triggered by decisions by coal exporting countries to cut production volume targets, such as Indonesia, Australia and Russia.

Namun, pemulihan kemungkinan belum signifikan yang terlihat dari keputusan Bukit Asam untuk memangkas target volume penjualan dari 29,9 juta ton menjadi 24,9 juta ton,” tulis Stefanus dalam risetnya, baru-baru ini.

Adapun keputusan manajemen Bukit Asam yang menurunkan target volume penjualan batu bara dari 30 juta ton menjadi 25 juta ton sudah sesuai dengan kondisi pasar yang masih melemah. Pemangkasan target tersebut men-dorong Danareksa Sekuritas untuk merevisi turun target kinerja keuangan Bukit Asam tahun 2020-2022. Target laba bersih diturun-kan dari Rp 3,95 triliun menjadi Rp 2,45 triliun tahun ini dibandingkan realisasi 2019 yang senilai Rp 4,05 triliun.

Begitu juga dengan proyeksi pendapatan tahun 2020 direvisi turun dari Rp 22,53 triliun menjadi Rp 17,35 triliun dibandingkan reali-sasi tahun lalu sebesar Rp 21,78 triliun.

Sebab itu, Danareksa Sekuritas menurunkan target saham PTBA dari Rp 3.200 menjadi Rp 2.900, dengan rekomendasi dipertahan-kan beli.

Sedangkan dalam jangka panjang, menurut Stefanus, keputusan Bukit Asam untuk terus meningkatkan kapasitas daya angkut kereta api dan pelabuhan batu bara akan menjadi penopang pertumbuhan. Perseroan menar-getkan total kapasitas angkut kereta dan pelabuhan batu bara meningkat menjadi 40 juta ton pada 2024-2025 dibandingkan target daya angkut tahun ini sebanyak 32 juta ton.

Saat ini, perseroan sedang meningkatkan daya angkut nalis Danareksa Sekuritas Stefanus Darmagiri mengungkapkan, dua faktor tersebut diharapkan menaikkan permintaan batu bara, dan harga jual kemungkinan bisa kembali naik dari level saat ini US$ 50 per ton. Kenaikan harga jual juga bakal dipicu oleh keputusan negara eksportir batu bara yang memangkas target volume produksi, seperti Indonesia, Australia, dan Rusia.

IMA-Daily Update Page 10

"Demand for coal is projected to enter a recovery period in the third quarter of 2020 after the PSBB easing, which will certainly increase demand for coal from the electricity industry. However, the recovery may not be significant as seen from Bukit Asam's decision to cut its sales volume target from 29.9 million tons to 24.9 million tons," wrote Stefanus in his recent research.

Meanwhile, Bukit Asam's management decision to lower its coal sales volume target from 30 million tons to 25 million tons is in accordance with the weakening market conditions. Trimming the target prompted Danareksa Sekuritas to revise Bukit Asam's financial performance target for 2020-2022. The net profit target has been lowered from Rp 3.95 trillion to Rp 2.45 trillion this year compared to the 2019 realization of Rp 4.05 trillion.

Likewise, the revenue projection for 2020 is revised down from Rp 22.53 trillion to Rp 17.35 trillion compared to last year's realization of Rp 21.78 trillion.

Therefore, Danareksa Sekuritas lowered its target for PTBA's shares from Rp 3,200 to Rp 2,900, with a recommendation to maintain the purchase. Meanwhile, in the long term, according to Stefanus, Bukit Asam's decision to continue to increase the carrying capacity of railroads and coal ports will support growth.

The company targets the total rail and coal port transport capacity to increase to 40 million tons in 2024-2025 compared to this year's target carrying capacity of 32 million tons.

Currently, the company is increasing its carrying capacity in anticipation of a decline in sales to the main destination countries affected by Covid-19.

“Permintaan batu bara diproyeksi mulai memasuki masa pemulihan pada kuartal III-2020 setelah pelonggaran PSBB yang tentunya akan menaikkan permintaan batu bara dari industri listrik. Namun, pemulihan kemungkinan belum signifikan yang terlihat dari keputusan Bukit Asam untuk me-mangkas target volume penjualan dari 29,9 juta ton menjadi 24,9 juta ton,” tulis Stefanus dalam risetnya, baru-baru ini.

Adapun keputusan manajemen Bukit Asam yang menurunkan target volume penjualan batu bara dari 30 juta ton menjadi 25 juta ton sudah sesuai dengan kondisi pasar yang masih melemah. Pemangkasan target ter-sebut mendorong Danareksa Sekuritas untuk merevisi turun target kinerja keuangan Bukit Asam tahun 2020-2022. Target laba bersih diturunkan dari Rp 3,95 triliun menjadi Rp 2,45 triliun tahun ini dibandingkan realisasi 2019 yang senilai Rp 4,05 triliun.

Begitu juga dengan proyeksi pendapatan tahun 2020 direvisi turun dari Rp 22,53 triliun menjadi Rp 17,35 triliun dibanding-kan realisasi tahun lalu sebesar Rp 21,78 triliun.

Sebab itu, Danareksa Sekuritas menurunkan target saham PTBA dari Rp 3.200 menjadi Rp 2.900, dengan rekomendasi dipertahan-kan beli. Sedangkan dalam jangka panjang, menurut Stefanus, keputusan Bukit Asam untuk terus meningkatkan kapasitas daya angkut kereta api dan pelabuhan batu bara akan menjadi penopang pertumbuhan.

Perseroan menargetkan total kapasitas angkut kereta dan pelabuhan batu bara meningkat menjadi 40 juta ton pada 2024-2025 dibandingkan target daya angkut tahun ini sebanyak 32 juta ton.

Saat ini, perseroan sedang meningkatkan daya angkut mengantisipasi penurunan penjualan ke negara tujuan utama yang terkena dampak Covid-19.

IMA-Daily Update Page 11

In the first semester of 2020, Bukit Asam's export sales reached 5.2 million tons. This

sales volume is equivalent to 41.4% of the company's total sales which reached 12.5

million tons as of June 2020.

Meanwhile, domestic coal sales are still the company's priority with a share of 58.6%

or around 7.3 million tons.

The company's coal production this year is projected to reach 25 million tons. Until

June 2020, the production reached 11.9 million tons. Then, the coal transportation

capacity reached 11.7 million tons in the same period. The company has also

partnered with PT Pelabuhan Indonesia (Pelindo) II to develop the capacity of

transporting coal and other commodities through rivers and ports in South Sumatra.

This cooperation is expected to increase the coal transport capacity to 20 million

tons per year. Edi tor: Gora Kunj ana

(gora_kunjana@investor.co.id)

Pada semester I-2020, penjualan ekspor Bukit Asam mencapai 5,2 juta ton. Volume penjualan tersebut setara dengan 41,4% dari total penjualan perseroan yang men-capai 12,5 juta ton hingga Juni 2020.

Sementara, penjualan batu bara domestik masih menjadi prioritas perusahaan dengan porsi sebanyak 58,6% atau sekitar 7,3 juta ton.

Adapun produksi batu bara perseroan tahun ini diproyeksikan sebanyak 25 juta ton. Hingga Juni 2020, produksinya mencapai 11,9 juta ton. Kemudian, kapasitas angkutan batu bara mencapai 11,7 juta ton pada periode yang sama. Perseroan juga telah menggandeng PT Pelabuhan Indonesia (Pelindo) II untuk pengembangan kapasitas angkutan batu bara dan komoditas lainnya melalui sungai dan pelabuhan di Sumatera Selatan. Kerja sama ini diharapkan men-dongkrak kapasitas angkut batu bara men-jadi 20 juta ton per tahun. Editor : Gora

Kunjana (gora_kunjana@investor.co.id)

United Tractors (UNTR) increases

share ownership in the subsidiary

Reporter: Akhmad Suryahadi | Editor: Wahyu T. Rahmawati

PT UNITED Tractors Tbk (UNTR)

increases share ownership in its subsidiary, namely PT Bina Pertiwi.

Quoting the disclosure of information on the Indonesia Stock Exchange (IDX)

website, Bina Pertiwi increased its paid-in capital and issued 1.2 million new shares,

and UNTR took all of these new shares.

United Tractors (UNTR)

menambah kepemilikan saham di anak usaha

Reporter: Akhmad Suryahadi | Editor: Wahyu T. Rahmawati

PT UNITED Tractors Tbk (UNTR) me-

nambah kepemilikan saham di entitas anak usaha, yakni PT Bina Pertiwi. Mengutip keterbukaan informasi di laman Bursa Efek Indonesia (BEI), Bina Pertiwi mening-katkan modal disetor dan ditempatkan sebanyak 1,2 juta saham baru, dan UNTR mengambil seluruh bagian dari saham baru ini.

IMA-Daily Update Page 12

"After increasing share ownership in BP, UNTR has as many as 2 million shares or Rp. 500 billion in Bina Pertiwi," wrote United Tractors Corporate Secretary Sara K. Loebis in a release on Thursday (17/9).

The purpose of UNTR to increase share ownership in Bina Pertiwi is to increase business capital for Bina Pertiwi's operational needs.

Bina Pertiwi is a subsidiary of UNTR with 99.99% ownership. The rest is owned by PT United Tractors Pandu Engineering which is also a subsidiary of UNTR.

Quoting the official website of Bina Pertiwi, the UNTR subsidiary focuses on agriculture, material handling, power and energy, and construction. Bina Pertiwi services include the availability of spare parts, repair and maintenance services which are handled by certified mechanics and equipped with operator training.

“Setelah melakukan peningkatan kepemilikan saham pada BP, UNTR memiliki sebanyak 2 juta saham atau senilai Rp 500 miliar pada Bina Pertiwi,” tulis Sekretaris Perusahaan United Tractors Sara K. Loebis dalam rilis, Kamis (17/9).

Adapun tujuan UNTR melakukan peningkatan kepemilikan saham di Bina Pertiwi adalah untuk tambahan modal usaha bagi kebutuhan operasional Bina Pertiwi.

Bina Pertiwi merupakan anak usaha UNTR dengan kepemilikan 99,99%. Sisanya dimiliki oleh PT United Tractors Pandu Engineering yang juga merupakan anak usaha UNTR.

Mengutip laman resmi Bina Pertiwi, anak usaha UNTR tersebut berfokus di bidang agriculture, material handling, power and energy, dan construction. Layanan Bina Pertiwi meliputi ketersediaan suku cadang, jasa perbaikan dan jasa perawatan yang ditangani oleh mekanik yang bersertifikat serta dilengkapi dengan pelatihan operator.

Injecting USD 15 Million to Masmindo, Indika Explores

Gold Commodities Author: Edo Fernando, Editor: Ocky PR.

PT INDIKA Energy Tbk reportedly signed

an agreement with PT Masmindo Dwi Area (Masmindo). Furthermore, the signing was carried out for the share participation agreement carried out by its subsidiary, namely PT Indika Mineral Investindo (IMI). This signing is in accordance with the company's disclosure of information based on letter No. 009/IE/CSL/LET/II/2020 dated February 25, 2020.

Suntik USD15 Juta Ke Masmindo, Indika Jajaki

Komoditas Emas Penulis : Edo Fernando, Editor : Ocky PR.

PT INDIKA Energy Tbk dikabarkan

melakukan penandatanganan perjanjian dengan PT Masmindo Dwi Area (Masmindo). Lebih lanjut, penandatangan itu dilakukan untuk perjanjian penyertaan saham yang dilaksanakan oleh anak usahanya, yakni PT Indika Mineral Investindo (IMI). Penanda-tanganan ini sudah sesuai dengan keter-bukaan informasi perseroan yang berdasar pada surat No.009/IE/CSL/LET/II/2020 tertanggal 25 Februari 2020.

IMA-Daily Update Page 13

It is known that the amount of funds stated in the agreement is known to be USD15

million or 25 percent of the shares in Masmindo. The capital participation

agreement is carried out after the company fulfills a number of requirements proposed

based on the Share Participation Agree-ment.

The requirements referred to are approval

from the General Meeting of Shareholders of the Archipelago which was successfully

held on April 29 and also approval from the Ministry of Energy and Mineral

Resources (MEMR).

Later, when the first phase of equity

participation has been carried out or completed, the two companies will each

own 25 percent of shares for IMI and 75 percent for Masmindo. The total capital

will also be placed in Masmindo in accordance with Deed No. 15 dated 4

September 2020. The deed itself was drawn up before Notary Darmawan Tjoa,

SH, SE in Central Jakarta.

The Minister of Law and Human Rights

(Menkum HAM) has received the notification in the agenda itself as stated in

Letter No. AHU-AH.01.03-0383065 dated 7 September 2020. The letter further

discusses the issue of Receiving Notification of Amendment to Articles of

Association of PT Masmindo Dwi Area (Masmindo).

Indika Energy explained that this equity

participation strategy is part of the company's strategy to diversi fy the

company. As additional information, Masmindo is known to be a gold mining

company located in Latimojong District, Luwu Regency, South Sulawesi.

Diketahui jumlah dana yang tercantum dalam perjanjian itu diketahui sebanyak USD15 juta atau sebesar 25 persen saham yang ada di Masmindo. Adapun perjanjian penyertaan modal ini dilakukan setelah perusahaan memenuhi sejumlah per-syaratan yang diajukan berdasarkan Perjanjian Penyertaan Saham.

Persyaratan yang dimaksud yakni per-setujuan dari Rapat Umum Pemegang Saham Nusantara yang sukses digelar pada 29 April silam dan juga persetujuan dari Kementerian Energi dan Sumber Daya Mineral (ESDM).

Nantinya ketika tahap pertama penyertaan saham sudah dilakukan atau selesai, maka kedua perusahaan masing-masing akan memiliki saham sebanyak 25 persen untuk IMI dan 75 persen untuk Masmindo. Total modal juga akan ditempatkan di Masmindo sesuai dengan Akta Nomor 15 tertanggal 4 September 2020. Akta itu sendiri dibuat di hadapan Notaris Darmawan Tjoa, SH, SE di Jakarta Pusat.

Pemberitahuan dalam agenda itu sendiri juga sudah diterima oleh Menteri Hukum dan Hak Asasi Manusia (Menkum HAM) yang tertuang dalam Surat No. AHU-AH.01.03-0383065 tertanggal 7 September 2020. Surat itu lebih lanjut membahas masalah Penerimaan Pemberitahuan Perubahan Anggaran Dasar PT Masmindo Dwi Area (Masmindo).

Indika Energy memberikan penjelasan bahwa strategi penyertaan modal ini merupakan bagian dari strategi per-usahaan dalam melakukan diversifikasi perseroan. Sebagai informasi tambahan, Masmindo diketahui merupakan sebuah perusahaan tambang emas yang berlokasi di Kecamatan Latimojong, Kabupaten Luwu, Sulawesi Selatan.

IMA-Daily Update Page 14

Until August, Coal Exports Record Only 50.9%

Anisatul Umah, CNBC Indonesia

INDONESIA's coal exports until August

2020 were recorded at 201.3 million tons or only 50.9 percent of this year's export target of 395 million tons.

This is based on the publication of Minerba One Data Indonesia (MODI) published on the website of the Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources which CNBC Indonesia quoted on Thursday (17/09/2020).

From the monthly export data, it can be seen that coal exports have decreased since April, when the Covid-19 pandemic began to spread in various parts of the world which had an impact on limiting mobility and decreasing economic activity in various countries.

Coal exports in April 2020 were seen dropping to 24.70 million tons compared to March which still reached 30.75 million tons. This data also shows that the decline in exports continued into July and August. However, in this data, coal exports in August were recorded to be still low, namely 15.56 million tons, compared to 22.90 million tons in July. The low export data for August is probably because not all companies have recorded their export numbers.

Meanwhile, the average coal export during May-July is around 20 million tons per month. This figure is lower than exports in the period before the Covid-19 pandemic, such as in January, which reached 32.14 million tons.

Hingga Agustus, Ekspor Batu Bara Tercatat Baru 50,9%

Anisatul Umah, CNBC Indonesia

EKSPOR batu bara Indonesia hingga

Agustus 2020 tercatat sebesar 201,3 juta ton atau baru mencapai 50,9% dari target ekspor tahun ini sebesar 395 juta ton.

Hal tersebut berdasarkan data publikasi Minerba One Data Indonesia (MODI) yang dipublikasikan di situs Direktorat Jenderal Mineral dan Batu Bara Kementerian Energi dan Sumber Daya Mineral yang CNBC Indonesia kutip pada Kamis (17/09/2020).

Dari data bulanan ekspor tersebut terlihat bahwa ekspor batu bara mengalami penurunan sejak April, saat pandemi Covid-19 mulai menyebar di berbagai penjuru dunia yang berdampak pada pembatasan mobilitas dan menurunnya aktivitas perekonomian berbagai negara.

Ekspor batu bara pada April 2020 terlihat anjlok menjadi 24,70 juta ton dibanding-kan Maret yang masih mencapai 30,75 juta ton. Data ini juga memperlihatkan penu-runan ekspor masih berlanjut hingga Juli dan Agustus. Namun, di data ini ekspor batu bara pada Agustus tercatat masih rendah yakni 15,56 juta ton, dibandingkan 22,90 juta ton pada Juli. Rendahnya data ekspor pada Agustus ini kemungkinan karena disebabkan belum semua per-usahaan mencatatkan jumlah ekspornya.

Adapun rata-rata ekspor batu bara selama Mei-Juli sekitar 20-an juta ton per bulan. Angka ini lebih rendah dibandingkan ekspor pada masa sebelum terjadinya pandemi Covid-19 seperti pada Januari yang mencapai 32,14 juta ton.

IMA-Daily Update Page 15

In the remaining four months until the end of this year, meaning that it is still pursuing exports of up to another 195 million tons to reach the target, is this possible?

Previously, APBI Executive Director Hendra Sinadia said that the Covid-19 pandemic had sharply corrected domestic coal absorption. Apart from domestic absorption, he added, Covid-19 also had an impact on coal exports.

In terms of price, Reference Coal Prices (HBA) as a benchmark for calculating government royalties also continued to decline. The HBA in August 2020 fell to US$ 50.34 per tonne from US$ 52.16 per tonne in July 2020.

Since the Covid-19 pandemic was declared a global pandemic throughout 2020, the HBA had strengthened by 0.28% to US$ 67.08 per ton in March compared to February which was US$ 66.89 per ton.

However, the HBA continued to weaken to US$ 65.77 per ton in April and US$ 61.11 per ton in May. Furthermore, in June it fell significantly to US $ 52.98 per ton, then in July it fell again to US$ 52.16 per ton. In September, the HBA edged down to US$ 49.42 per ton.

Following are details of the realization of coal exports from January to August 2020, from MODI data quoted on Thursday (17/09/2020):

1. January: 32.14 million tons

2. February: 28.46 million tons

3. March: 30.75 million tons

4. April: 24.70 million tons

5. May: 22.33 million tons

6. June: 24.46 million tons

7. July: 22.90 million tons

8. August: 15.56 million tons

Total Exports January-August 2020: 201.3 million tons. (wia)

Dalam kurun sisa waktu sekitar empat bulan hingga akhir tahun ini, artinya masih mengejar ekspor hingga sekitar 195 juta ton lagi untuk mencapai target, apakah ini memungkinkan?

Sebelumnya, Direktur Eksekutif APBI Hendra Sinadia mengatakan pandemi Covid-19 membuat serapan batu bara domestik terkoreksi tajam. Selain serapan domestik, imbuhnya, Covid-19 juga ber-dampak pada ekspor batu bara.

Dari sisi harga, Harga Batu Bara Acuan (HBA) sebagai patokan penghitungan royalti pemerintah juga terus mengalami penurunan. HBA pada Agustus 2020 turun menjadi US$ 50,34 per ton dari US$ 52,16 per ton pada Juli 2020.

Sejak pandemi Covid-19 ditetapkan sebagai pandemi global sepanjang 2020, HBA sempat menguat sebesar 0,28% pada angka US$ 67,08 per ton pada Maret dibanding Februari yang sebesar US$ 66,89 per ton.

Namun kemudian, HBA terus mengalami pelemahan ke angka US$ 65,77 per ton pada April dan US$ 61,11 per ton pada Mei. Selanjutnya, pada Juni turun signifikan menjadi US$ 52,98 per ton, lalu Juli turun lagi di US$ 52,16 per ton. Pada September, HBA turun tipis menjadi US$ 49,42 per ton.

Berikut Rincian Realisasi Ekspor Batu Bara Januari-Agustus 2020, dari data MODI yang dikutip pada Kamis (17/09/2020):

1. Januari : 32,14 juta ton

2. Februari : 28,46 juta ton

3. Maret : 30,75 juta ton

4. April : 24,70 juta ton

5. Mei : 22,33 juta ton 6. Juni : 24,46 juta ton

7. Juli : 22,90 juta ton

8. Agustus : 15,56 juta ton

Total Ekspor Januari-Agustus 2020: 201,3 juta ton. (wia)

IMA-Daily Update Page 16

Domestic Coal Needs Decreased, Export Market Becomes Hope

Denis Riantiza Meilanova

COAL entrepreneurs place their hopes on

a recovery in coal demand in the export market.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that coal entrepreneurs can no longer expect too much from the domestic market.

This is because coal demand in the domestic market is also projected to experience a significant decline due to the impact of the Covid-19 pandemic, especially for steam power plants which dominate up to 70 percent of the total domestic coal demand.

"Business actors themselves hope that with conditions of weakening export demand, we certainly hope domestically. However, with a reduced domestic projection, this will be a challenge," Hendra said when contacted by Bisnis, Wednesday (16/9/2020).

With these conditions, according to him, companies like it or not, will maximize the potential of the export market amid weak demand.

Hendra said that along with the economic recovery in several countries, this has given hope to coal exporters that there will be an increase in export demand in the future.

Coal entrepreneurs are also trying to find potential non-traditional markets. In general, the coal market in developing countries is still potential to be targeted.

Kebutuhan Batu Bara Domestik Berkurang, Pasar Ekspor Jadi

Harapan Denis Riantiza Meilanova

PENGUSAHA batu bara menumpukan

harapan pada pulihnya permintaan batu bara di pasar ekspor.

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan bahwa pengusaha batu bara tak lagi bisa berharap terlalu banyak pada pasar domestik.

Pasalnya kebutuhan batu bara di pasar domestik juga diproyeksikan mengalami penurunan signifikan akibat dampak pandemi Covid-19, terutama untuk pem-bangkit listrik tenaga uap yang men-dominasi hingga 70 persen dari total kebutuhan batu bara domestik.

"Pelaku usaha sendiri harapannya dengan kondisi demand ekspor melemah, kami tentu berharap di domestik. Namun, dengan proyeksi domestik berkurang, ini jadi tantangan," ujar Hendra ketika dihubungi Bisnis, Rabu (16/9/2020).

Dengan kondisi seperti ini, menurutnya, perusahaan mau tidak mau maksimalkan potensi pasar ekspor di tengah permintaan yang melemah.

Hendra menuturkan bahwa seiring dengan pulihnya ekonomi di beberapa negara, hal itu telah memberi harapan kepada eksportir batu bara akan adanya pening-katan permintaan ekspor ke depan.

Pengusaha batu bara juga berusaha men-cari pasar-pasar nontradisional yang cukup potensial. Secara umum, pasar batu bara di negara-negara berkembang masih cukup potensial untuk disasar.

IMA-Daily Update Page 17

"Developing countries, such as Sri Lanka, Pakistan, Bangladesh also need coal in the

future. Vietnam has also issued a statement that the role of coal will be bigger," he said.

On the other hand, the decreasing demand for coal in the domestic market is also

considered to be a challenge for the government to set production targets and

the obligation to provide domestic coal (domestic market obligation/DMO).

Hendra assessed that the government needs to consider reducing the amount of

the DMO obligation, which is currently set at 25 percent of the production level in line

with the reduced demand for domestic coal. Editor: Zufrizal

"Negara berkembang, seperti Sri Lanka, Pakistan, Bangladesh butuh batu bara juga ke depan. Vietnam juga sudah keluarkan pernyataan bahwa peran batu bara akan lebih besar," katanya.

Di sisi lain, menurunnya kebutuhan batu bara di pasar domestik juga dinilai menjadi tantangan pemerintah untuk menetapkan target produksi dan kewajiban menyedia-kan batu bara domestik (domestic market obligation/DMO).

Hendra menilai pemerintah perlu mem-pertimbangkan untuk mengurangi besaran kewajiban DMO yang saat ini dipatok sebesar 25 persen dari tingkat produksi seiring berkurangnya kebutuhan batu bara dalam negeri. Editor : Zufrizal

The Ministry of EMR admits that mineral and coal mining

exploration is still small Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

THE MINISTRY of Energy and Mineral

Resources (MEMR) admits that mineral

and coal mining (minerba) exploration is still small. In fact, exploration is a key

activity for discovering new mining resources and reserves.

Director of Mineral Development and Business of the Ministry of EMR Yunus Saefulhak revealed, based on data on the Work Plan and Budget (RKAB) of mining companies under the authority of the central government, investment in mineral and coal exploration in Indonesia has actually increased from the 2014-2019 period. However,...

Kementerian ESDM akui eksplorasi tambang mineral

dan batubara masih mini Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) mengakui eksplorasi tambang mineral dan batubara (minerba) masih mini. Padahal, eksplorasi merupa-kan kegiatan kunci bagi penemuan sumber daya dan cadangan tambang yang baru.

Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengungkapkan, berdasarkan data Rencana Kerja dan Anggaran Biaya (RKAB) perusahaan tambang wewenang pemerintah pusat, investasi eksplorasi minerba di Indonesia sejatinya mengalami peningkatan dari kurun 2014 -2019. Namun,...

IMA-Daily Update Page 18

However, this increase only occurred in further exploration (development exploration), not accompanied by new exploration activities in the greenfield area.

Even if we refer to data from S&P Global Market Intelligence in March 2020, it is known that over the past 20 years the total exploration cost in Indonesia is only 1% compared to the exploration costs incurred by mining companies in the world. "This is the government's concern to try to increase the interest of investors to explore Indonesia," said Yunus to Kontan.co.id, Thursday (17/9).

Referring to the data from the Directorate General of Mineral and Coal at the Ministry of EMR, in the last five years, the allocation of exploration spending has never exceeded 3.5% of the total mineral and coal investment in the same year. Data in 2015 shows that investment for mineral and coal exploration activit ies was recorded at US$ 174.24 million or 3.31% of the total mineral and coal investment at that time.

A year later, the amount dropped dramatically to only US$ 77.22 million (1.06%). Furthermore, exploration spending continues to climb, although not significantly. In 2017, investment for exploration was recorded at US$ 130.76 million (2.13%).

In 2018, it edged up to US$ 159.85 million (2.14%) and last year investment for exploration reached US$ 204.38 million (3.14%). Meanwhile in 2020, investment for exploration is targeted to reach US$ 271.09 million or 3.50% of the total mineral and coal investment which is pegged at US$ 7.74 billion.

Yunus admitted that one of the challenges in mineral and coal exploration is related to investment certainty. Therefore,...

Namun, peningkatan tersebut hanya terjadi pada eksplorasi lanjutan (develop-ment exploration), tidak diiringi oleh aktivitas eksplorasi baru pada greenfield area.

Bahkan jika merujuk data dari S&P Global Market Intellegence pada Maret 2020, diketahui bahwa selama 20 tahun terakhir total biaya eksplorasi di Indonesia hanya 1% dibandingkan biaya eksplorasi yang dikeluarkan oleh perusahaan tambang di dunia. "Hal tersebut menjadi perhatian pemerintah untuk berupaya meningkatkan minat para investor melakukan eksplorasi di Indonesia," sebut Yunus kepada Kontan.co.id, Kamis (17/9).

Merujuk pada data Dit jen Minerba Kementerian ESDM, dalam lima tahun terakhir, alokasi belanja eksplorasi tidak pernah melebihi 3,5% dari total investasi minerba di tahun yang sama. Data pada tahun 2015 menunjukkan investasi untuk kegiatan eksplorasi minerba tercatat sebesar US$ 174,24 juta atau 3,31% dari total investasi minerba saat itu.

Setahun kemudian, jumlahnya turun drastis menjadi hanya US$ 77,22 juta (1,06%). Selanjutnya, belanja eksplorasi terus menanjak meski tidak signifikan. Pada tahun 2017, investasi untuk eksplo-rasi tercatat di angka US$ 130,76 juta (2,13%).

Tahun 2018 naik tipis menjadi US$ 159,85 juta (2,14%) dan pada tahun lalu investasi untuk eksplorasi mencapai US$ 204,38 juta (3,14%). Sementara pada tahun 2020 ini, investasi untuk eksplorasi ditarget bisa mencapai US$ 271,09 juta atau 3,50% dari total investasi minerba yang dipatok di angka US$ 7,74 miliar.

Yunus mengakui, salah satu tantangan dalam eksplorasi minerba adalah terkait kepastian investasi. Oleh sebab itu,...

IMA-Daily Update Page 19

Therefore, Law Number 3 of 2020 aka the Minerba Law and its derivative regulations are claimed to be part of the government's strategy in attracting investment and encouraging the mining exploration ecosystem.

In this way, firstly , providing legal certainty and undertaking business for Mining Business Permit (IUP) or Special Mining Business Permit (IUPK) holders who have completed Exploration activities. Namely by providing guarantees to be able to carry out Production Operation activities as a continuation of its mining business activities after meeting the requirements.

Second, obliging companies to provide Mineral and Coal Resilience Resilience Funds (DKC). DKC is used by IUP/IUPK holders to carry out Advanced Exploration at the Production Operation stage of activities, the amount of which is determined annually in the RKAB. Third, assignment to state research institutions, SOEs, ROEs, or Business Entities to conduct Investigation and Research in the context of preparing WIUP.

The assignment of Mining Investigation and Research is carried out through the following mechanisms: (a) assignment to state research institutions, SOEs, region-owned enterprises for areas prepared by the Government and (b) Application for assignments by Business Entities having expertise in the field of Exploration and mining in the region - areas that do not have potential data.

"The government shall supervise the investigation and research activities carried out by the assigned party, so that the activity process can be carried out according to the approved plan. And will be subject to sanctions in the form of revoking the assignment letter if there is no activity within 1 year," said Yunus.

Oleh sebab itu, Undang-Undang Nomor 3 Tahun 2020 alias UU Minerba dan aturan turunannya diklaim sebagai bagian dari strategi pemerintah dalam menarik inves-tasi dan mendorong ekosistem eksplorasi tambang.

Dengan cara, pertama, memberikan kepas-tian hukum dan berusaha bagi pemegang Izin Usaha Pertambangan (IUP) atau Izin Usaha Pertambangan Khusus (IUPK) yang telah menyelesaikan kegiatan Eksplorasi. Yakni dengan memberikan jaminan untuk dapat melakukan kegiatan Operasi Produksi sebagai kelanjutan kegiatan usaha pertambangannya setelah meme-nuhi persyaratan.

Kedua, mewajibkan perusahaan untuk menyediakan Dana Ketahanan Cadangan (DKC) minerba. DKC digunakan oleh pemegang IUP/IUPK untuk melakukan Eksplorasi Lanjutan pada tahap kegiatan Operasi Produksi yang besarannya ditetapkan setiap tahun dalam RKAB. Ketiga, penugasan kepada lembaga riset negara, BUMN, BUMD, atau Badan Usaha untuk melakukan Penyelidikan dan Penelitian dalam rangka penyiapan WIUP.

Adapun penugasan Penyelidikan dan Penelitian Pertambangan dilakukan melalui mekanisme: (a) penugasan kepada lembaga riset negara, BUMN, badan usaha milik daerah untuk wilayah yang disiapkan oleh Pemerintah dan (b) Permohonan penugasan oleh Badan Usaha yang mempunyai keahlian di bidang Eksplorasi dan pertambangan di wilayah–wilayah yang belum mempunyai data potensi.

"Pemerintah melakukan pengawasan ter-hadap kegiatan penyelidikan dan penelitian yang dilakukan oleh pihak yang diberi penugasan, sehingga proses kegiatan dapat terlaksana sesuai rencana yang disetujui. Dan akan dikenakan sanksi berupa penca-butan surat penugasan apabila dalam 1 tahun tidak terd apat kegiatan," terang Yunus.

IMA-Daily Update Page 20

Fourth, the government will encourage a specialist exploration company (Junior

Mining Company/JMC) to apply for an area of investigation and research assignment

and participate in the WIUP auction.

If the JMC has finished carrying out exploration activities and obtaining

resources and reserves, it may transfer the IUP to other parties who specialize in

mining, processing and refining with the approval of the Minister.

"Why should JMC be encouraged? Because in countries with advanced mining sectors,

JMC plays a very large role in the mining discovery process," said Yunus.

As an illustration, referring to the MinEx Consulting study in October 2019, the role

of JMC in discovery in the world is at> 60%. "The government observes this and

tries to provide opportunities for JMC to play a role in reviving mineral and coal

exploration in Indonesia," said Yunus.

Meanwhile, in the draft Government Regulation Draft (RPP) as a derivative rule

of Law no. 3 of 2020, a number of company obligations are regulated to encourage

exploration activities. The regulation is contained in the draft RPP regarding the

implementation of mineral and coal mining business activities.

Referring to the draft RPP obtained by Kontan.co.id, Article 49 stipulates that in

the context of mineral and coal conservation, IUP holders in the

production operation stage are required to carry out further exploration every year. In

carrying out these obligations, IUP holders are also required to allocate a budget every

year as mineral and coal reserve resilience funds, the amount of which is proposed in

the annual RKAB.

Keempat, pemerintah bakal mendorong perusahaan spesialis eksplorasi (Junior Mining Company/JMC) untuk mengajukan permohonan wilayah penugasan penye-lidikan dan penilitian serta mengikuti lelang WIUP.

Apabila JMC tersebut telah selesai melak-sanakan kegiatan eksplorasi dan men-dapatkan sumberdaya dan cadangan dapat memindahtangankan IUP kepada pihak lain yang spesialis di bidang penambangan, pengolahan dan pemurnian dengan perse-tujuan Menteri.

"Mengapa JMC harus didorong?, karena di negara–negara yang telah maju sektor pertambangannya, peranan JMC sangat besar dalam proses penemuan bahan tambang/discovery," sebut Yunus.

Sebagai gambaran, merujuk pada kajian MinEx Consulting pada Oktober 2019, peran JMC dalam discovery di dunia berada di angka >60%. "Pemerintah mengamati hal tersebut dan berusaha memberikan peluang kepada JMC untuk dapat berperan dalam menghidupkan eksplorasi minerba di Indonesia," pungkas Yunus.

Adapun, dalam draft Rancangan Peraturan Pemerintah (RPP) sebagai aturan turunan UU No. 3 Tahun 2020, diatur sejumlah kewajiban perusahaan untuk mendorong aktivitas eksplorasi. Aturan tersebut tertuang dalam draft RPP tentang pelaksanaan kegiatan usaha pertambangan minerba.

Merujuk pada draft RPP yang didapat Kontan.co.id, Pasal 49 mengatur bahwa dalam rangka konservasi minerba, peme-gang IUP tahap operasi produksi wajib melakukan eksplorasi lanjutan setiap tahun. Dalam melaksanakan kewajiban tersebut, pemegang IUP juga wajib mengalokasikan anggaran setiap tahun sebagai dana ketahanan cadangan minerba, yang besarannya diusulkan dalam RKAB tahunan.

IMA-Daily Update Page 21

However, the continued exploration

obligation is exempted for IUP holders in

the production operation stage who

already have backup data in all WIUP

Production Operation activities.

Not only IUP, IUPK holders in the

production operation stage are also

required to provide mineral and coal

reserve resilience funds. The funds are

used to carry out further exploration

activities. This is stated in Article 98, which

also regulates that the amount of mineral

and coal reserve resilience funds is

proposed in the annual RKAB.

The draft RPP does not yet regulate in

detail the further exploration obligations

and also the obligation to allocate mineral

and coal reserve resilience funds. Because,

it will be further regulated in the EMR

Ministerial Regulation (Permen).

Namun, kewajiban eksplorasi lanjutan

tersebut dikecualikan bagi pemegang IUP

tahap operasi produksi yang telah memiliki

data cadangan di seluruh WIUP kegiatan

Operasi Produksi.

Tak hanya IUP, para pemegang IUPK tahap

operasi produksi juga diwajibkan

menyediakan dana ketahanan cadangan

minerba. Dana tersebut digunakan untuk

melakukan kegiatan eksplorasi lanjutan.

Hal itu tertuang dalam Pasal 98, yang juga

mengatur bahwa besaran dana ketahanan

cadangan minerba diusulkan dalam RKAB

tahunan.

Draft RPP tersebut memang belum

mengatur secara rinci tentang kewajiban

eksplorasi lanjutan dan juga kewajiban

alokasi dana ketahanan cadangan minerba.

Sebab, hal itu akan diatur lebih lanjut pada

Peraturan Menteri (Permen) ESDM.

Obstructed by Economic Issues, This is a Continuation of the

Coal DME Project Denis Riantiza Meilanova

THE PLAN to develop a coal gasification

project into Dimethyl Ether (DME) in

Sumatra is expected to be realized in the near future.

President Director of PT Air Products

Indonesia Triwidio Pramono said that the plan to build a joint project with PT Bukit

Asam Tbk. (PTBA) and PT Pertamina (Persero) have entered the final stage of

discussion.

Terganjal Isu Keekonomian, Ini Kelanjutan Proyek DME Batu

Bara Denis Riantiza Meilanova

RENCANA pengembangan proyek gasifi-

kasi batu bara menjadi Dimethyl Ether

(DME) di Sumatra diharapkan dapat segera

direalisasikan dalam waktu dekat.

Direktur Utama PT Air Products Indonesia

Triwidio Pramono menyebutkan bahwa

rencana pembangunan proyek kerja sama

dengan PT Bukit Asam Tbk. (PTBA) dan PT

Pertamina (Persero) tersebut telah me-

masuki pembahasan tahap akhir.

IMA-Daily Update Page 22

"We are discussing it in the final stages with our potential partners PTBA and Pertamina," said Triwidio in a series of 30 years of Perhapi's event 'The 5th Save Indonesian Coal 2020', Thursday (17/9/ 2020).

Triwidio admitted that the project had been delayed due to the economic factors of the project related to the amount of subsidies to be borne by the government.

The development of the DME project aims to produce alternative energy to replace Liquified Petroleum Gas (LPG) and is expected to reduce LPG imports in the future.

Therefore, added Triwidio, the calculation of the comparison of DME and LPG subsidies was a major consideration in developing this project.

"At the beginning of the study, it seemed as if the burden of government subsidies would increase with this initiative to replace LPG with DME. Recent developments have resulted in different conclusions. Therefore, the discussion continues," he said.

He hopes that this project can be decided and its implementation can be realized soon.

Last year, Air Products, an industrial gas company based in the United States, together with PTBA and Pertamina signed an agreement to establish a joint venture company engaged in the processing of coal and its derivative products.

Later, PTBA will supply coal from its mining area to joint ventures to be processed into final products by Pertamina. Meanwhile, the technology design optimization will be carried out by Air Products.

This coal gasification project is planned to have a production capacity of 1.4 million tons of DME per year with a coal demand of 9.2 million tons per year.

"Sedang kami diskusikan dalam tahap akhir dengan calon partner kami PTBA dan Pertamina," ujar Triwidio dalam rangkaian acara 30 tahun Perhapi 'The 5th Save Indonesian Coal 2020', Kamis (17/9/2020).

Triwidio mengakui bahwa proyek tersebut sempat tertunda karena faktor keeko-nomian proyek yang terkait dengan besaran subsidi yang akan ditanggung pemerintah.

Pengembangan proyek DME bertujuan untuk menghasilkan energi alternatif peng-ganti Liquified Petroleum Gas (LPG) dan diharapkan ke depan dapat mengurangi impor LPG.

Oleh karena itu, imbuh Triwidio, per-hitungan perbandingan subsidi DME dan LPG menjadi pertimbangan utama dalam pengembangan proyek ini.

"Di awal kajian seolah-olah beban subsidi pemerintah akan makin bengkak dengan inisiatif penggantian LPG dengan DME ini. Perkembangan belakangan kajian meng-hasilkan kesimpulan yang berbeda. Oleh karena itu, pembicaraan berlanjut," katanya.

Dia berharap proyek ini dapat segera diputuskan dan direalisasikan pelaksanaan-nya.

Adapun tahun lalu, Air Product, perusahaan gas industri berbasis di Amerika Serikat, bersama PTBA dan Pertamina telah menan-datangani kesepakatan untuk mendirikan perusahaan patungan yang bergerak di bidang bisnis pengolahan batu bara dan produk turunannya.

Nantinya, PTBA akan menyuplai batu bara dari area tambangnya ke perusahaan patungan untuk diolah menjadi produk akhir oleh Pertamina. Sementara itu, optimasi desain teknologi akan dilakukan oleh Air Products.

Proyek gasifikasi batu bara ini direncanakan memiliki kapasitas produksi 1,4 juta ton DME per tahun dengan kebutuhan batu bara sebesar 9,2 juta ton per tahunnya.

IMA-Daily Update Page 23

According to Bisnis records, the gasification development will be carried out in the Bukit Asam Coal Based Special Economic Zone (BACBSEZ) area of Tanjung Enim, South Sumatra. Editor: Amanda Kusumawardhani

Menurut catatan Bisnis, pembangunan gasifikasi ini akan dilakukan di kawasan Bukit Asam Coal Based Special Economic Zone (BACBSEZ) Tanjung Enim, Sumatra Selatan. Editor : Amanda Kusumawardhani

Coal Touches the Highest Level 3 Months, This is Strong Medicine

Tirta Citradi, CNBC Indonesia

THE COAL price rally has not stopped.

Until the close of trading last Thursday

(17/9/2020), the price of the gemstone is still racing and is now at the highest level

for more than 3 months.

The price of Newcastle thermal coal for

contracts that are actively traded on the market closed up 0.89% to US$ 56.5/ton

and marked its highest level since June 4, 2020.

Government data shows India's thermal

coal imports fell 41.5% to 32.9 million tonnes during the second quarter. This

decrease was caused by the lockdown policy to suppress the spread of the corona

virus outbreak which reduced the demand for electricity.

Reuters reports India's electricity demand

is expected to fall for the first time in four decades in the current fiscal year, which

ends in March 2021.

Although demand for coal has been

weakening over the past eight months, the recent increase in jet rock prices has been

triggered by positive sentiment coming from Japan.

Batu Bara Sentuh Level Tertinggi 3 Bulan, Ini Obat

Kuatnya Tirta Citradi, CNBC Indonesia

RELI harga batu bara belum berhenti.

Sampai dengan penutupan perdagangan Kamis kemarin (17/9/2020), harga batu legam itu masih melesat dan kini berada di level tertinggi lebih dari 3 bulan terakhir.

Harga batu bara termal Newcastle untuk kontrak yang aktif ditransaksikan di pasar ditutup menguat 0,89% ke US$ 56,5/ton dan menandai level tertingginya sejak 4 Juni 2020.

Data pemerintah menunjukkan impor batu bara termal India turun 41,5% menjadi 32,9 juta ton sepanjang kuartal kedua. Penurunan ini diakibatkan oleh kebijakan lockdown untuk menekan penyebaran wabah virus corona yang menurunkan permintaan terhadap listrik.

Reuters melaporkan permintaan listrik India diperkirakan turun untuk pertama kalinya dalam empat dekade dalam tahun fiskal yang sedang berjalan, yang berakhir pada Maret 2021.

Kendati permintaan terhadap batu bara mengalami pelemahan sepanjang delapan bulan terakhir, kenaikan harga batu legam belakangan ini dipicu oleh sentimen positif yang datang dari Negeri Sakura.

IMA-Daily Update Page 24

Japanese crude steel production in August is estimated to increase compared to previous months. If you look at the July data, Japan's crude steel production has started to rebound.

Argus Media reported crude steel production in the seventh month of this year reached 6 million tons, an increase of 8% compared to June. Japanese steel mills are projecting a slight recovery in July-September steel production, driven by a revival of the country's domestic auto industry.

Nippon Steel plans to increase crude steel production in July-September by 7% compared to April -June to 7.7 million tonnes. The company's output for October 2020-March 2021 is projected to increase by 13% from April-September to 17 million tons.

JFE Steel also expects an 8% increase in steel production July-September to 5.2 million tonnes compared to the previous quarter. The company is examining the possibility of resuming the blast furnaces that were discontinued after October in response to recovering demand.

The increase in Japanese steel production is a positive sentiment for coal prices because the increase in output has a positive correlation with imports of coking coal.

If the Japanese automotive industry continues to rise and steel production continues to recover, the demand for coking coal will also gradually improve. This will be a positive sentiment which is expected to be able to raise coal prices, which have been depressed so far. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Produksi baja mentah (crude steel) Jepang Agustus diperkirakan bakal naik dibanding dengan bulan-bulan sebelumnya. Jika melihat data Juli, produksi baja kasar Jepang sudah mulai rebound.

Argus Media melaporkan produksi baja kasar bulan ketujuh tahun ini mencapai 6 juta ton atau naik 8% dibanding bulan Juni. Pabrik baja Jepang memproyeksikan sedikit pemulihan pada produksi baja Juli-September, didorong oleh kebangkitan industri otomotif domestik negara ter-sebut.

Nippon Steel berencana untuk mening-katkan produksi baja mentah pada Juli-September sebesar 7% dibandingkan April - Juni menjadi 7,7 juta ton. Output perusahaan Oktober 2020-Maret 2021 diproyeksikan naik 13% dari April-September menjadi 17 juta ton.

JFE Steel juga mengharapkan kenaikan 8% pada produksi baja Juli-September menjadi 5,2 juta ton dibandingkan dengan kuartal sebelumnya. Perusahaan sedang me-meriksa kemungkinan melanjutkan blast furnace yang dihentikan setelah Oktober sebagai tanggapan atas pulihnya per-mintaan.

Kenaikan produksi baja Jepang ini menjadi sentimen positif bagi harga batu bara lantaran kenaikan output memiliki korelasi positif dengan impor batu bara kokas.

Jika industri otomotif Jepang terus bangkit serta produksi baja terus mengalami pemulihan, maka kebutuhan batu bara kokas juga akan berangsur membaik. Ini akan menjadi sentimen positif yang diharapkan mampu mengerek harga batu bara yang selama ini tertekan. TIM RISET CNBC INDONESIA (twg/twg)

IMA-Daily Update Page 25

RESEARCH: Iron ore price spike ends; coking coal price recovery begins The takeaways from the latest edition of the Steel Raw Materials Market Tracker are

ready to view.

By Alona Yunda Miriam Falk Amy Bennett Alexander Kershaw

IRON ore prices remained relatively stable last week, signalling an end to the price spike. And

for the first time since March, at the time of the Covid-19 lock-down in Hubei, we have seen a consistent downturn in utilization rates in China. Blast furnace utilization rates dropped for a fifth consecutive week. We think this could signal that actual pig iron output may slow, lowering demand for iron ore and suggesting the upward price pressure is easing. This year, iron ore prices have been supported by stronger underlying demand from China and even less supply from Brazil. Still, we expect prices eventually to correct lower - the currently elevated prices are vulnerable to rising seaborne supplies.

Should iron ore prices come down from their elevated levels as we expect, and should scrap imports start to flow into China again, the price attractiveness of iron metallics and semi-finished steel would drop, cooling down China's appetite for the products. The price attractiveness, coupled with strong downstream demand - fueled by stimulus measures in China, and, as a result, booming steel production, along with the virtually absent imports of scrap - encouraged imports of metallics and semis. This pulled international prices higher and squeezed steel spreads in the rest of the world. Unsurprisingly, many exporters prioritized China-bound sales.

In the coking coal market, the anticipated price recovery has begun after prices had plunged to 2016 levels. While there are concerns over China's demand for import met coal amid increased tensions with Australia and the expected slow-down in demand growth, we anticipate the price recovery to continue. Just as strong Chinese buying had a limited impact on international coking coal prices, given the fact that China is one of the major buyers, not the single major import market for coking coal, the obstacles in importing Australia-origin coals into China should not be the key factor driving prices either. As activity recovers post-pandemic in other key consuming markets including Europe and Japan, revived demand will support prices.

China Hongqiao kicks off aluminium production in Yunnan By Reuters Staff

THE WORLD's top private-sector aluminium producer China Hongqiao Group Ltd 1378.HK

has started first phase production at a greener aluminium plant in the southwestern province of Yunnan, cutting its reliance on coal-fired power, a Hongqiao affiliate said on Thursday.

IMA-Daily Update Page 26

Hongqiao’s smelting capacity is currently located in the city of Binzhou in Shandong and relies on coal-fired power for the electricity-intensive smelting process. The move to Yunnan allows it to swap coal for cleaner hydropower.

The project, led by Shandong Weiqiao Pioneering Group, is located at Wenshan prefecture and has an annual capacity of 2.03 million tonnes, the company said in a statement.

Hongqiao aims to move about one-third of its aluminium capacity out of Shandong province to the hydropower-rich Yunnan province amid China’s environmental curbs.

The first phase of the project put into production on Thursday has capacity of one million tonnes per year, according to Hongqiao.

“Currently, the company does not have an exact timeline for the launch of phase two, but will complete by 2025”, it told Reuters.

The whole project involves total investment at 40 billion yuan ($5.91 billion) and is expected to eventually bring in sales of 100 billion yuan per year, according to China’s official Xinhua news agency.

Ge Honglin, head of the China Nonferrous Metals Industry Association, said the project would help enhance China’s clean production level in the aluminium industry as it strives to make “world-class” high-end aluminium products.

China, the world’s top aluminium producer, set a record monthly high production of 3.17 million tonnes in August.

($1 = 6.7664 Chinese yuan renminbi) Reporting by Min Zhang in Beijing and Emily Chow in Shanghai ; Editing by Elaine Hardcastle

AngloGold starts commercial production at Boston Shaker Bruno Venditti

ANGLOGOLD Ashanti (NYSE: AU) and its JV partner IGO Ltd have kicked off commercial production at the Boston Shaker underground mine at Tropicana gold project in Western Australia.

The development of the Boston Shaker mine was approved in March 2019, and the mine transitioned into commercial production on schedule, below the A$105.7 million ($77 million) budget and with no recordable safety incidents, AngloGold said in a press release.

According to the miner, Boston Shaker will deliver approximately 1.1 million tonnes of ore per year at an estimated grade of 3.5 grams/tonne, contributing approximately 100,000 ounces per annum to gold production over a seven-year mine life.

“Underground mining at Boston Shaker will leverage further value from this high performing operation, achieving payback in just over three years with upside potential as the deposit remains open at depth,” AngloGold Ashanti SVP Australia Michael Erickson said in a media release.

IMA-Daily Update Page 27

“The underground mine will contribute higher grade mill feed from the current quarter onwards, improving the gold production profile and enhancing cash flow during 2021-2023 when the mine plan includes periods of higher waste stripping in the Havana open pit.”

Underground ore production has now reached an annualized production rate of 0.7 Mtpa with the design production rate expected to be achieved in March 2021, the company said.

The commercial production milestone at Boston Shaker comes after Tropicana produced its 3 millionth ounce in March this year, seven years after pouring first gold in September 2013.

According to AngloGold, Tropicana will be able to maintain gold production at between 450,000-500,000 ounces annually over the next four years.

The mine is managed by AngloGold Ashanti Australia, with a 70% interest. IGO holds a 30% interest.

FQM’s Zambian copper mine exceeds production targets By: Simone Liedtke, Writer

CANADIAN metals and mining company First Quantum Minerals’ (FQM’s) Sentinel openpit

copper mine, in Zambia, has exceeded its production targets for July and August.

This strong performance was attributed to consistent milling rates and better-than-expected grades in August, the company said in a statement on September 17, adding that this put the mine on track to meet investor projections for the full quarter.

The performance was despite the tax regime, which was ranked as the least competitive in the world by consulting firm EY, and challenges resulting from the Covid-19 pandemic.

“We have seen numerous changes to the country’s mining tax regime over the last ten years. However, despite the policy inconsistency, First Quantum managed to pay more than $533-million in taxes to the Zambian government in 2018, with an additional $10-million spent on community and infrastructure projects,” said FQM government affairs specialist Dr Godwin Beene.

He noted that the mining firm’s approach to tax and royalty payments reflected its underlying core values that focus on building open and transparent relationships with the tax authorities in the countries where it operates.

The company also provided an operations update to shareholders earlier this week, which revealed that its Kansanshi mine had continued to operate as expected, delivering consistent production despite declines in oxide grades and recovery.

The company’s recently updated mineral reserves and resources report for Kansanshi showed a 70% and 40% increase, respectively, over the last update in May 2015. This has extended the mine life to 24 years.

IMA-Daily Update Page 28

However, Beene cautioned that, for the company to continue being a major contributor to the Zambian economy, the government needed to put in place an effective and efficient mineral tax regime to attract foreign direct investment, which should seek to adequately compensate the country while remaining internationally attractive and competitive.

Weekly US coal production falls to seven-week low, all basins dip: EIA Author: Tyler Godwin, Editor: Jennifer Pedrick

WEEKLY US coal production fell to a seven-week low 10.34 million st in the week ended

Sept. 12, down 3.3% from a week earlier and 26.4% lower than the year-ago week, according to a Sept. 17 US Energy Information Administration report.

It was the third straight week and only the fourth time in the last 22 weeks that all four major basins saw weekly declines.

The total for Week 37 was the lowest total for the corresponding week in the last 10 years, and was also 31.5% lower than the five-year average.

Despite the lower production, utility stockpiles remained higher on an aggregate basis as of Sept. 10, totaling an estimated 116.87 million st, up roughly 5.5% from a year earlier, according to S&P Global Platts Analytics.

For the latest week, estimated coal production in Wyoming and Montana, which is primarily made up of production from the Powder River Basin, fell to 4.86 million st, down 3.1% from the prior week and 25.8% lower than the year-ago week.

IMA-Daily Update Page 29

Since Jan. 1, the states have produced 170.02 million st, down 22.1% from the same period in 2019. Annualized production in the two states would total 229.29 million st, down 26.2% from a year ago.

In Central Appalachia, estimated weekly coal production fell to 1.2 million st, down 4.4% from a week earlier and 29.9% lower than the year-ago week.

Year-to-date production in Central Appalachia declined 30.6% year on year at 44.57 million st, while on an annualized basis, CAPP production would total 64.27 million st, down 25.5% from a year ago.

Coal production in Northern Appalachia declined to 1.46 million st, down 1.9% from the prior week and 21.9% below the year-ago week.

Year-to-date production was 30.4% lower than a year ago at 51.8 million st, while annualized NAPP production would total 76.07 million st, down 26.5% from last year.

In the Illinois Basin, estimated weekly coal production was at 1.28 million st, down 3.3% from the previous week and 33% from the year-ago week. Cumulative production was at 47.82 million st, down 35.2% on year, while annualized production in the IB basin would total 69.77 million st, down 30% from 2019 totals.

Through the first 37 weeks of the year, US coal production totaled an estimated 372.86 million st, down 26.3% year on year, while production on an annualized basis is expected around 528.3 million st, which would be down 24.9% from 2019.

Source: EIA, Units: thousand st