Daily News Update Page 1

TABLE OF CONTENTS

No. Title Media Source Page

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

Luhut said that Freeport & Tsingshan would sign a contract of Rp39.2 trillion Luhut Sebut Freeport & Tsingshan Bakal Teken Kontrak Rp39,2 Triliun Coal mine affected by flood, Arutmin: Currently recovering, not yet full capacity Tambang batubara terdampak banjir, Arutmin: Sedang recovery belum full capacity Tesla's Proposal Arrives & NDA Signed, ANTM Cs Rides Proposal Tesla Tiba & NDA Ditandatangani, ANTM Dkk Melesat Nickel Vale (INCO) Production Increased Slightly in 2020 Produksi Nikel Vale (INCO) Naik Tipis pada 2020 Bahlil Calls Freeport's Gold Reserves Will Soon Run Out Bahlil Sebut Cadangan Emas Freeport Sebentar Lagi Akan Habis Profit taking has made coal prices weaken to below US$ 90 per ton again Aksi profit taking bikin harga batubara keok ke bawah US$ 90 per ton lagi The Nickel Industry Was Built Learning Outcomes from the Freeport Story Industri Nikel Dibangun Hasil Belajar dari Kisah Freeport Copper price climbs as Citi analyst predicts market deficit in H2 Metso Outotec wins order for iron ore pelletising plant Baru Gold gets license to start mining Coking coal price rally to continue while China curbs Australian coal import - Mitsubishi CFO Vale 4Q20 iron ore output lower than estimated

Bisnis Kontan CNBC Indonesia Bisnis Sindonews Kontan CNN Indonesia Mining.com Global Mining Review Kitco News Mining Weekly Mining.com

3

4

6

9

11

12

13

15

16

17

17

18

Daily News Update Page 2

13.

14.

Metso Outotec starts portfolio review actions following bedding in of merger Largest gold mining companies ranked by reserves - report

Int'l Mining Kitco News

19

20

Daily News Update Page 3

Luhut said that Freeport & Tsingshan would sign a contract

of Rp39.2 trillion Denis Riantiza Meilanova

COORDINATING Minister for Maritime

Affairs and Investment Luhut B. Pandjaitan said that PT Freeport Indonesia is finalizing a cooperation agreement with Tsingshan Steel to build a copper smelter in Weda Bay, Central Halmahera, North Maluku.

Luhut said that Freeport and the Chinese company would sign a contract worth US $ 2.8 billion or equivalent to Rp.39.2 trillion.

"Tsingshan and Freeport will sign a contract of US$ 2.8 billion for the smelter," he said in a special dialogue on the IDX Channel, Wednesday (3/2/2021).

Luhut said that the copper smelter that Tsingshan and Freeport will build will also produce a by-product in the form of sulfuric acid which can be used as a material for making lithium batteries.

"They will make a copper smelter which will partially produce sulfuric acid. This sulfuric acid will become part of the lithium battery," he said.

He said that in Weda Bay there is also a plan to build a nickel ore smelter for battery raw materials. If it goes according to plan, the nickel smelter will start operating and producing lithium batteries in 2023.

Meanwhile, Vice President for Corporate Communication of PT Freeport Indonesia (PTFI) Riza Pratama said that negotiations on the cooperation plan with Tsingshan were still ongoing.

Luhut Sebut Freeport & Tsingshan Bakal Teken Kontrak

Rp39,2 Triliun Denis Riantiza Meilanova

MENTERI Koordinator Bidang Kemaritiman

dan Investasi Luhut B. Pandjaitan mengata-kan bahwa PT Freeport Indonesia tengah melakukan finalisasi perjanjian kerja sama dengan Tsingshan Steel untuk membangun smelter tembaga di Weda Bay, Halmahera Tengah, Maluku Utara.

Luhut menyebut bahwa Freeport dan perusahaan asal China tersebut akan menandatangani kontrak senilai US$2,8 miliar atau setara dengan Rp39,2 triliun.

"Tsingshan dan Freeport akan sign kontrak US$2,8 miliar untuk smelter," ujarnya dalam acara dialog khusus di IDX Channel, Rabu (3/2/2021).

Luhut menuturkan bahwa smelter tembaga yang akan dibangun Tsingshan dan Freeport nantinya juga menghasilkan produk sampingan berupa asam sulfat yang bisa menjadi bagian material pembuatan baterai litium.

"Mereka akan membuat smelter tembaga yang sebagian akan menghasilkan asam sulfat. Ini asam sulfat akan menjadi bagian litium baterai," katanya.

Dia menuturkan bahwa di Weda Bay rencananya juga dibangun smelter bijih nikel untuk bahan baku baterai. Jika berjalan sesuai dengan rencana, smelter nikel sudah akan beroperasi dan memproduksi litium baterai pada 2023.

Sementara itu, Vice President Corporate Communication PT Freeport Indonesia (PTFI) Riza Pratama mengatakan bahwa negosiasi rencana kerja sama dengan Tsingshan masih berjalan.

Daily News Update Page 4

"In accordance with government directives, PTFI is still in the discussion process to

explore cooperation with Tsingshan," he said, when contacted by Bisnis, Wednesday

(3/2/2021).

He added that PTFI also remains committed to building a second smelter in Manyar,

Gresik, East Java, as part of the agreement in the divestment process in 2018.

Previously, Freeport Indonesia President

Director Tony Wenas admitted that Tsingshan Steel was approaching him to

build a copper smelter in Weda Bay, Halmahera.

He said that the cooperation plan was still

in the discussion stage and there had not been any agreement between the two

parties.

"We want to know what the method is, how much capacity, when the construction schedule will be completed. Still in talks, there is no agreement yet," Tony said in a hearing with Commission VII of the DPR, Monday (7/12/2020). Editor: Zufrizal

"Sesuai dengan arahan pemerintah, PTFI masih dalam proses diskusi untuk menjajaki kerja sama dengan Tsingshan," katanya, ketika dihubungi Bisnis, Rabu (3/2/2021).

Dia menambahkan bahwa PTFI juga tetap berkomitmen untuk membangun smelter kedua di Manyar, Gresik, Jawa Timur, sebagai bagian dari kesepakatan dalam proses divestasi pada 2018.

Sebelumnya, Presiden Direktur Freeport Indonesia Tony Wenas mengaku bahwa pihaknya memang tengah didekati oleh Tsingshan Steel untuk membangun smelter tembaga di Weda Bay, Halmahera.

Dia mengatakan bahwa rencana kerja sama tersebut masih dalam tahap pembicaraan dan belum ada kesepakatan apapun antara kedua belah pihak.

"Kami mau tahu metodenya seperti apa, kapasitasnya berapa, jadwal pembangunan kapan selesainya. Masih pembicaraan, belum ada kesepakatan apapun," ujar Tony dalam rapat dengar pendapat dengan Komisi VII DPR, Senin (7/12/2020). Editor : Zufrizal

Coal mine affected by flood, Arutmin: Currently recovering,

not yet full capacity Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

THE FLOODS that inundated South

Kalimantan (South Kalimantan) in early 2021 had an impact on coal mining

activities. One of them is in the mining operations of PT Arutmin Indonesia.

Tambang batubara terdampak banjir, Arutmin: Sedang

recovery belum full capacity Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

BANJIR yang merendam Kalimantan

Selatan (Kalsel) pada awal 2021 ber-dampak terhadap aktivitas pertambangan

batubara. Salah satunya pada operasional tambang PT Arutmin Indonesia.

Daily News Update Page 5

General Manager of Legal and External Affairs of PT Arutmin Indonesia Ezra Sibarani revealed that the coal production and distribution activities of a subsidiary of PT Bumi Resources Tbk (BUMI) are plagued by floods and weather factors. Thus, Arutmin made a number of adjustments so that the supply of coal to consumers continued.

Technically, continued Ezra, the Arutmin operational team was handling it by bringing in additional pumps and repairing the affected hauling road. Currently, Arutmin's mining operations are stil l recovering.

"We are currently recovering mining and distribution activities, as well as coal supply," Ezra told Kontan.co.id, Wednesday (3/2).

He continued, the weather factor stil l determines the recovery of production and distribution operations. Regarding supply to consumers, Ezra claims that Arutmin continues to deliver coal even though it is still not at optimal capacity, both for delivery to the domestic market including PLN's PLTU, as well as for the export market.

"Supply to PLN has improved but not full capacity. Also exports (not full capacity) to all our customers," Ezra continued.

Previously, the Director General of Mineral and Coal at the Ministry of ESDM Ridwan Djamaluddin revealed that four mining companies were affected by the floods in South Kalimantan. They are PT Prolindo, PT Binuang Mitra Bersama, PT Bhumi Rantau Energi and PT Arutmin Indonesia.

According to Ridwan, flood obstacles and weather factors do not only occur in mining operations. But also logistics infrastructure such as roads, rivers and ship loading and unloading.

General Manager Legal and External Affairs PT Arutmin Indonesia Ezra Sibarani meng-ungkapkan bahwa kegiatan produksi maupun distribusi batubara dari anak usaha PT Bumi Resources Tbk (BUMI) ini ter-kendala banjir dan faktor cuaca. Sehingga, Arutmin melakukan sejumlah penyesuaian agar pasokan (supply) batubara kepada konsumen tetap berjalan.

Secara teknis, sambung Ezra, tim operasi-onal Arutmin sedang melakukan penangan-an dengan mendatangkan pompa-pompa tambahan dan perbaikan jalan hauling yang terdampak. Saat ini, operasional tambang Arutmin masih dalam pemulihan.

"Kami sedang recovery tambang dan kegiatan distribusi, serta supply batubara," kata Ezra kepada Kontan.co.id, Rabu (3/2).

Dia melanjutkan, faktor cuaca masih menjadi penentu pemulihan operasional produksi dan distribusi . Mengenai supply ke konsumen, Ezra mengklaim bahwa Arutmin tetap melakukan pengiriman batubara meski masih belum pada kapasitas optimal, baik untuk pengiriman ke pasar domestik termasuk PLTU milik PLN, maupun untuk pasar ekspor.

"Supply ke PLN sudah membaik akan tetapi belum full capacity. Juga ekspor (belum full capacity) ke semua custumer kami," sambung Ezra.

Sebelumnya, Direktur Jenderal Mineral dan Batubara Kementerian ESDM Ridwan Djamaluddin mengungkapkan, empat per-usahaan tambang yang terdampak oleh banjir di Kalimantan Selatan. Mereka adalah PT Prolindo, PT Binuang Mitra Bersama, PT Bhumi Rantau Energi dan PT Arutmin Indonesia.

Menurut Ridwan, hambatan banjir dan faktor cuaca tak hanya berlangsung pada operasi penambangan. Namun juga infra-struktur logistik seperti jalan, sungai serta bongkar muat kapal.

Daily News Update Page 6

"What is constrained is not all direct mining operations, but road and river infrastructure. So that the supply of fuel, for example for mining operations, is hampered. On the other hand, trucks or transporters are also constrained," Ridwan concluded.

"Yang terkendala tidak semuanya langsung operasi penambangan, tapi infrastruktur jalan dan sungai. Sehingga pasokan bahan bakar misalnya untuk operasi tambangnya terkendala. Sebaliknya juga truk peng-angkutan atau kapal pengangkutnya juga terkendala," pungkas Ridwan.

Tesla's Proposal Arrives & NDA

Signed, ANTM Cs Rides Tri Putra, CNBC Indonesia

TESLA is getting serious about investing in

Indonesia. Most recently, the company from the United States (US) will officially send a proposal to the Government of Indonesia and even say that a confidentiality agreement has been signed.

The Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan finally opened his voice. He admitted that he could not talk much because he was bound by a Non Disclosure Agreement (NDA) or a confidentiality agreement.

However, the progress is still ongoing regarding the investment plan. Tesla was reportedly interested in building an electric car battery factory.

"Yes, we don't know how big it is, but what we do know is that we can't disclose too much detail to the public but we have already made video calls for six times and the NDA has been signed and I think today or tomorrow we will receive their proposals," Luhut said on Youtube IDX Channel, quoted on Thursday (4/2/2021).

Proposal Tesla Tiba & NDA

Ditandatangani, ANTM Dkk Melesat

Tri Putra, CNBC Indonesia

TESLA kian serius untuk menggarap inves-

tasinya di Indonesia. Teranyar, perusahaan asal Amerika Serikat (AS) itu bakal mengirim proposal secara resmi ke Pemerintah Indonesia bahkan kabarnya perjanjian kerahasiaan sudah ditanda-tangani.

Menteri Koordinator Bidang Maritim dan Investasi Luhut Binsar Pandjaitan pun akhirnya buka suara. Ia mengaku tidak bisa berbicara banyak karena terikat Non Disclosure Agreement (NDA) atau per-janjian kerahasiaan.

Namun progresnya hingga kini masih terus berjalan terkait rencana investasi itu. Tesla sempat dikabarkan tertarik membangun pabrik baterai mobil listrik.

"Ya kita belum tahu berapa besarnya tapi yang kami tahu dan kami belum bisa men-disclose terlalu detail ke publik tapi kami sudah enam kali ber-video call dan NDA sudah selesai ditandatangani dan saya pikir hari ini atau besok kami akan menerima proposal dari mereka," kata Luhut dalam Youtube IDX Channel, dikutip Kamis (4/2/2021).

Daily News Update Page 7

In response to this, nickel stocks, which are components of electric car batteries, shot up in today's trading, where all of the 6 nickel listed companies managed to turn green.

The increase itself was led by the state-owned mining company PT Aneka Tambang Tbk (ANTM) which shot 5.15% to the level of Rp 2,450/unit, while the second position was filled by PT Pelat Timah Nusantara Tbk (NIKL) which jumped 4.37% to the level of Rp 1,315/unit.

Furthermore, another MIND ID subsidiary, PT Timah Tbk (TINS), also shot 3.71% to the level of Rp.1,955/unit, while PT Vale Indonesia Tbk (INCO) rose 1.28% to the level of Rp. 5,925/unit.

Other nickel stocks, namely PT Trinitan Metals and Minerals Tbk (PURE) and PT Central Omega Resources Tbk (DKFT), also managed to appreciate 3.55% and 3.25%, respectively.

Reportedly, the proposal sent by Tesla will contain various offers given by Tesla to Indonesia, ranging from investment value, future plans to other technical matters. Before making a formal proposal, there was indeed discussion about technical details.

However, that conversation seemed to be happening virtually new. Because the Tesla team, which was originally due to come to Indonesia in early January, has not yet arrived.

The Covid-19 pandemic is an excuse. The February 2021 plan was also postponed due to Indonesia's international flight ban.

Meanwhile, Deputy of Investment & Mining of the Coordinating Ministry for Invest-ment, Septian Hario Seto, said that Tesla plans to enter into two parts of the investment. Namely in the manufacture of batteries and energy storage systems.

Merespons hal tersebut saham-saham nikel yang menjadi komponen batu baterai mobil listrik melesat pada perdagangan hari ini dimana dari 6 emiten nikel semua-nya berhasil menghijau.

Kenaikan sendiri dipimpin oleh saham pertambangan pelat merah PT Aneka Tambang Tbk (ANTM) yang melesat 5,15% ke level Rp 2.450/unit, sedangkan posisi kedua diisi oleh PT Pelat Timah Nusantara Tbk (NIKL) yang loncat 4,37% ke level Rp 1.315/unit.

Selanjutnya anak usaha MIND ID lain yakni PT Timah Tbk (TINS) juga melesat 3,71% ke level Rp 1.955/unit, sedangkan PT Vale Indonesia Tbk (INCO) naik 1,28% ke level Rp 5.925/unit.

Saham nikel lain yakni PT Trinitan Metals and Minerals Tbk (PURE) dan PT Central Omega Resources Tbk (DKFT) juga ber-hasill terapresiasi masing-masing 3,55% dan 3,25%.

Kabarnya, proposal yang dikirimkan Tesla tersebut bakal berisi beragam penawaran yang diberikan Tesla kepada Indonesia, mulai dari nilai investasi, rencana ke depan hingga hal teknis lainnya. Sebelum mem-berikan proposal resmi, memangsudah ada pembicaraan mengenai detil teknis.

Namun, pembicaraan itu nampaknya terjadi baru secara virtual. Karena tim Tesla yang semula bakal datang ke Indonesia pada awal Januari ini belum juga tiba.

Pandemi Covid-19 menjadi alasan. Rencana Februari 2021 juga diundur terkait larangan terbang internasional oleh Indonesia.

Sementara itu, Deputi Investasi & Pertambangan Kemenko Marves Septian Hario Seto menyebut Tesla berencana memasuki dua bagian investasi. Yakni di pembuatan baterai dan energy storage system.

Daily News Update Page 8

"You could say that for battery technology,

Tesla is one of the best personally

compared to LG, CATL. Tesla's battery

technology is one step ahead in coverage

distance, around 650 km once a full

charge," he said.

Meanwhile, the energy storage system is a

kind of large-scale gigantic battery that can

store up to megawatts of electric power as

a stabilizer or as a replacement as a peaker

generator.

"This is what they are also talking about.

They are very advanced technology in

Australia, several projects have been

carried out and are very successful," he

said.

Until now, the government is still waiting

for a detailed proposal from Tesla.

Although there have been discussions,

proposals are also important in terms of

cooperation offers.

"If we, from the government, want to

downstream from the battery industry in

Indonesia. The supply chain of lithium

batteries is quite long, nickel ore is

extracted from nickel and cobalt is made a

precursor to the cathode and then mixed

with anodes into cell batteries, cell

batteries will be built into battery packs.

We tell LG, CATL and Tesla that at least

70% of the nickel they obtain in Indonesia

must be produced in the form of a battery

pack, so it is not just a precursor or

cathode form then they export," he

explained technically. (trp/hps)

"Bisa dibilang untuk teknologi baterai,

Tesla salah satu yang terbaik secara

pribadi dibanding LG, CATL. Tesla tekno-

logi baterainya selangkah lebih maju dalam

coverage distance, sekitar 650 Km sekali

cas full," sebutnya.

Sedangkan energy storage system adalah

semacam giga baterai skala besar yang bisa

menyimpan tenaga listrik besar hingga

megawatt untuk stabilisator atau untuk

pengganti sebagai pembangkit peaker.

"Ini yang juga mereka bicarakan. Mereka

teknologi sangat advance di Australia,

beberapa proyek sudah dilakukan dan

sangat berhasil," sebutnya.

Hingga kini, pemerintah masih menunggu

proposal detil dari Tesla seperti apa. Meski

sudah ada pembicaraan namun proposal

juga penting dalam hal penawaran kerja-

sama.

"Kalau kami dari Pemerintah ingin hiliri-

sasi dari industri baterai ada di Indonesia.

Supply chain dari lithium baterai cukup

panjang, nikel ore diekstrak nikel dan

cobalt-nya dibuat prekursor ke katoda

nanti dicampur anoda jadi baterai sel,

baterai sel nanti dibangun jadi battery

pack. Yang kita sampaikan ke LG, CATL dan

ke Tesla bahwa paling tidak 70% dari nikel

yang mereka peroleh di Indonesia itu

harus diproduksi dalam bentuk battery

pack, jadi bukan hanya bentuk prekursor

atau katoda kemudian mereka ekspor,"

katanya menjelaskan teknis. (trp/hps)

Daily News Update Page 9

Nickel Vale (INCO) Production Increased Slightly in 2020

Finna U. Ulfah

METAL mining company PT Vale

Indonesia Tbk. announced that production performance in 2020 has increased compared to the previous year.

CEO and President Director of Vale Indonesia Nico Kanter said that the company had produced 72,237 metric tons of nickel in matte by 2020. This volume increased 2 percent compared to 71,025 tons in 2019.

"We are proud and grateful to employees for this achievement," he said in an official statement, Wednesday (3/2/2021).

In the fourth quarter of 2020, Vale produced 16,445 tonnes of nickel in matte. This volume decreased 16 percent compared to quarter III/2020 of 19,477 tons, and decreased 20 percent from quarter IV/2019 of 20,494 tons.

According to Nico, the decline in nickel production in the last quarter was due to planned maintenance activities.

Previously, Vale Indonesia would continue to pursue the realization of a final invest-ment decision (FID) for a downstream project in Sulawesi.

Vale Indonesia Director Bernardus Irmanto said that his party was completing the third phase of the Front End Loading (FEL3) process and was still in the process of obtaining the key permits needed for FID.

"There is a possibility that the project's FID should be pushed to a later date, depend-ing on the progress of the work," said Irmanto to Bisnis, Thursday (7/1/2021).

Produksi Nikel Vale (INCO) Naik Tipis pada 2020

Finna U. Ulfah

EMITEN pertambangan logam PT Vale

Indonesia Tbk. mengumumkan kinerja produksi pada 2020 mengalami pening-katan dibandingkan tahun sebelumnya.

CEO dan Presiden Direktur Vale Indonesia Nico Kanter menyampaikan perseroan telah memproduksi 72.237 metrik ton nikel dalam matte pada 2020. Volume itu me-ningkat 2 persen dibandingkan 71.025 ton pada 2019.

"Kami bangga sekaligus berterima kasih kepada karyawan atas pencapaian ini," paparnya dalam keterangan resmi, Rabu (3/2/2021).

Pada kuartal IV/2020, Vale memproduksi nikel dalam matte sejumlah 16.445 ton. Volume itu turun 16 persen dibandingkan kuartal III/2020 sebesar 19.477 ton, dan turun 20 persen dari kuartal IV/2019 sejumlah 20.494 ton.

Menurut Nico, penurunan produksi nikel pada kuartal terakhir disebabkan oleh aktivitas pemeliharaan yang sudah terencana.

Sebelumnya, Vale Indonesia bakal terus mengejar realisasi pengambilan keputusan investasi final atau final investment decision (FID) untuk proyek pengihiliran di Sulawesi.

Direktur Vale Indonesia Bernardus Irmanto mengatakan bahwa pihaknya tengah menye-lesaikan proses Front End Loading tahap ketiga (FEL3) dan masih dalam proses men-dapatkan perizinan kunci yang dibutuhkan untuk FID.

“Ada kemungkinan FID proyek harus di dorong ke later date, tergantung dari progres pekerjaan itu,” ujar Irmanto kepada Bisnis, Kamis (7/1/2021).

Daily News Update Page 10

For information, the issuer coded as INCO is planning to build a nickel smelter in Pomalaa, Central Sulawesi and a ferronickel smelter in Bahodopi, Southeast Sulawesi. The FID of the two projects was previously targeted for completion in the first quarter of 2021.

Meanwhile, the Pomala project is estimated to require an investment of around US$ 2.5 billion, while the Bahodopi project requires US$ 1.5 billion. However, Irmanto explained that the value of the project could change and was confirmed during the FID.

In addition, Irmanto also explained that the FID adjustment is likely to have an impact on the completion target of each project. INCO originally targeted the Pomalaa project to be completed in 2025, while the Bahodopi project was completed in 2024.

"It all depends on the construction start time. We will review the impact again on the project completion time," said Irmanto.

On the other hand, INCO allocated a capital expenditure (capex) of US$ 135 million in 2021, larger than the 2020 capex target of US$ 120 million. The capex allocation will come from the company's internal cash.

Irmanto explained that most of the capex was used for the furnace 4 rebuild project, then for mine development and equipment replacement.

The rebuild furnace 4 project will start from May to early November 2021.

On the other hand, with the progress of the project next year INCO projects that the company's production volume will be at a lower level than in 2020 and 2019.

"The clear production target for 2021 will be below 70.00 tons because furnace 4 will be rebuilt from May to early November," said Irmanto. Editor: Hafiyyan

Untuk diketahui, emiten berkode efek INCO itu berencana untuk membangun smelter nikel di Pomalaa, Sulawesi Tengah dan smelter feronikel di Bahodopi, Sulawesi Tenggara. FID kedua proyek itu sebelumnya ditargetkan rampung pada kuartal I/2021.

Adapun, proyek Pomala diperkirakan mem-butuhkan investasi sekitar US$2,5 miliar sedangkan proyek Bahodopi membutuhkan US$1,5 miliar. Namun, Irmanto menjelaskan bahwa nilai proyek tersebut dapat berubah dan dipastikan saat FID.

Selain itu, Irmanto juga menjelaskan bahwa penyesuaian FID kemungkinan akan ber-dampak pada target penyelesaian setiap proyek. INCO semula menargetka proyek Pomalaa rampung pada 2025, sedangkan proyek Bahodopi rampung pada 2024.

“Semua tergantung dari waktu mulai kons-truksinya. Kami akan kaji lagi dampaknya ke waktu penyelesaian proyek,” papar Irmanto.

Di sisi lain, INCO mengalokasikan belanja modal atau capital expenditure sebesar US$135 juta pada 2021, lebih besar daripada target capex 2020 sebesar US$120 juta. Alokasi capex itu akan berasal dari kas internal perseroan.

Irmanto menjelaskan bahwa sebagian besar capex tersebut digunakan untuk proyek rebuild furnace 4, kemudian untuk pengem-bangan tambang dan juga penggantian alat.

Proyek rebuild furnace 4 itu akan mulai berlangsung pada Mei hingga awal Novem-ber 2021.

Di sisi lain, dengan berjalannya proyek tersebut pada tahun depan INCO mem-proyeksi volume produksi perseroan akan berada di tingkat yang lebih rendah daripada 2020 maupun 2019.

“Target produksi 2021 yang jelas akan di bawah 70.00 ton karena furnace 4 akan di rebuild mulai mei sampai awal november,” papar Irmanto. Editor : Hafiyyan

Daily News Update Page 11

Bahlil Calls Freeport's Gold Reserves Will Soon Run Out

Rina Anggraeni, Journalist

THE INVESTMENT Coordinating Board

(BKPM) continues to invite foreign investors to invest in Indonesia. This is to pursue an investment target of Rp 900 trillion in 2021.

BKPM Head Bahlil Lahadia said Indonesia is a rich country but Indonesia's natural wealth could be depleted if not managed properly. One of them is that the gold reserves in Freeport can run out.

"We have so much gold, Freeport will soon run out of gold," said Bahlil in a virtual video, Wednesday (3/2/2021).

Bahlil also emphasized that he would increase the industry downstream so as not to deplete the natural reserves which are the source of Indonesia's wealth. One of them is building a fishing industry in order to attract investment.

"But is there any downstream industry capable of competing at the global level. Our fisheries will not run out of fish, but we are too late to build the industry. Because Vietnam and Thailand are very efficient," he explained.

Bahlil explained that BKPM was already open with the company. One of them is to provide tax incentives for companies that have large profits and get investors.

"Previously, businessmen complained to the government that the government gave difficult permits. Now the government has issued permits with fiscal incentives with a tax holiday of Rp10 trillion," he said. (dni)

Bahlil Sebut Cadangan Emas Freeport Sebentar Lagi Akan

Habis Rina Anggraeni, Jurnalis

BADAN Koordinasi Penanaman Modal (BKPM) terus mengundang para investor asing untuk berinvestasi ke Indonesia. Hal ini untuk mengejar target investasi Rp900 triliun di 2021.

Kepala BKPM Bahlil Lahadia mengatakan Indonesia merupakan negara kaya namun kekayaan alam di Indonesia bisa saja habis jika tidak dikelola dengan baik. Salah satu-nya cadangan emas di Freeport bisa habis

"Emas kita luar sekali banyaknya, Freeport sebentar lagi akan habis emasnya," kata Bahlil dalam video virtual, Rabu (3/2/2021).

Bahlil pun menekankan akan meningkatkan industri hingga ke hilir agar tidak meng-habiskan cadangan alam yang menjadi sumber kekayaan negara Indonesia. Salah satunya adalah membangun industri per-ikanan agar menarik investasi.

"Tapi apakah ada industri yang sampai hilir mampu bersaing di tingkat global. Perikanan kita nggak akan mungkin ikannya habis tapi kita terlambat bangun industri. Karena Vietnam dan Thailand sudah sangat efisien," jelasnya.

Bahlil menjelaskan, BKPM sudah terbuka dengan perusahaan. Salah satunya mem-berikan insentif pajak bagi perusahaan yang memiliki keuntungan besar dan mendapat-kan investor.

"Dulu pengusaha ngeluh kepemerintah bahwa pemerintah memberikan izin susah. Sekarang pemerintah sudah mengeluarkan izin dengan insentif fiskal dengan adanya tax holiday Rp10 triliun," tandasnya. (dni)

Daily News Update Page 12

Profit taking has made coal prices weaken to below US$90

per ton again Reporter: Intan Nirmala Sari | Editor: Anna

Suci Perwitasari

PROFIT taking or taking profits on coal

prices is predicted to be temporary. Had touched its highest level at US$ 91 per tonne last week, coal prices began to weaken since this week.

Quoting Bloomberg, Wednesday (3/2) at 22.00 WIB, coal prices fell 1.76% to the level of US$ 83.5 per ton.

Research and Education Coordinator of Valbury Asia Futures, Nanang Wahyudin, said that coal prices that remained in the area of US$ 80 per ton after profit taking were a normal phenomenon.

He said that the correction in coal prices in the two days had also occurred due to lower coal prices in China.

"Even though China's coal price has dropped, the prospects for the future are still strong in line with the high demand," he told Kontan.co.id, Wednesday (3/2).

Nanang also did not deny that in the future coal prices could still be corrected amid the efforts of the United States (US) and Europe to look for new energy alternatives that are environmentally friendly. In addition, US President Joe Biden also encouraged policies for the use of environmentally friendly energy.

In the short term, coal prices will still move in the support range of US$ 72 per ton to US$ 76 per ton. As for the resistance range, it is at the level of US$ 88 per ton to US$ 90 per ton.

Aksi profit taking bikin harga batubara keok ke bawah US$90

per ton lagi Reporter: Intan Nirmala Sari | Editor: Anna

Suci Perwitasari

AKSI profit taking atau ambil untung pada

harga batubara diprediksi hanya sementara. Sempat menyentuh level tertingginya di level US$ 91 per ton di pekan lalu, harga batubara mulai melemah sejak pekan ini.

Mengutip Bloomberg, Rabu (3/2) pukul 22.00 WIB, harga batubara melemah 1,76% ke level US$ 83,5 per ton.

Research and Education Coordinator Valbury Asia Futures Nanang Wahyudin mengatakan, harga batubara yang bertahan di area US$ 80 per ton pasca aksi profit taking merupa-kan fenomena wajar.

Dia bilang, koreksi harga batubara dalam dua hari juga terjadi lantaran melorotnya harga batubara di China.

"Walaupun harga batubara China anjlok, prospek ke depan masih menguat seiring dengan meningkatnya permintaan yang masih tinggi," kata dia kepada Kontan.co.id, Rabu (3/2).

Nanang juga tidak menampik, ke depan harga batubara masih bisa koreksi di tengah upaya Amerika Serikat (AS) dan Eropa untuk mencari alternatif energi baru yang ramah lingkungan. Ditambah lagi, Presiden AS Joe Biden juga mendorong kebijakan untuk penggunaan energi ramah lingkungan.

Jangka pendek, harga batubara masih akan bergerak di rentang suport US$ 72 per ton hingga US$ 76 per ton. Adapun untuk rentang resisten berada di level US$ 88 per ton hingga US$ 90 per ton.

Daily News Update Page 13

"In the future, the potential price to move above US$ 100 per tonne is still possible, as it was broken in 2009 and 2016," he said.

The hope is that China as the world's largest coal consumer will still sustain demand this year. Moreover, Nanang views that the prospect of economic recovery in the Bamboo Curtain Country will take place faster than other countries.

In addition, market players also tend to be skeptical of the Covid-19 pandemic vaccination program, where clinical trials have not shown certainty. As a result, the future attitude of the global market will still fluctuate.

Although the movement of coal does not always correlate with other commodities such as oil and gold, Nanang views that the trend of coal prices will still climb slowly but surely. Moreover, the winter that is currently hitting several countries also supports the prospect of rising coal prices going forward.

"The potential price of existing coal will catch up to a high level of US$ 100 per ton. If it continues, the highest level in the last five years can be penetrated," he said.

"Ke depan, potensi harga untuk bergerak di atas US$ 100 per ton masih bisa terjadi, seperti pernah ditembus di 2009 dan 2016 lalu," ungkapnya.

Harapannya, China sebagai konsumen ter-besar batubara dunia masih akan menopang permintaan tahun ini. Apalagi, Nanang memandang prospek pemulihan ekonomi Negeri Tirai Bambu bakal berlangsung lebih cepat dibandingkan negara lain.

Selain itu, pelaku pasar juga cenderung masih skeptis terhadap program vaksinasi pandemi Covid-19, dimana uji klinis belum menunjukkan kepastian. Alhasil sikap pasar global ke depan masih akan berfluktuasi.

Meskipun pergerakan batubara tidak melulu berkorelasi dengan komoditas lainnya seperti minyak dan emas, Nanang meman-dang tren harga batubara masih akan menanjak perlahan tapi pasti . Apalagi, musim dingin yang tengah melanda bebe-rapa negara saat ini juga ikut menopang prospek kenaikan harga batubara ke depan.

"Potensi harga batubara yang ada akan mengejar level high di US$ 100 per ton. Kalau berlanjut, maka level tertinggi dalam lima tahun terakhir bisa ditembus," tandas-nya.

The Nickel Industry Was Built

Learning Outcomes from the Freeport Story

BKPM Head Bahlil Lahadalia said the govern-

ment would build the nickel industry from upstream to downstream into electric car batteries that have global competitiveness. This was done after the government learned from the problems of PT Freeport Indonesia.

Industri Nikel Dibangun Hasil

Belajar dari Kisah Freeport

KEPALA BKPM Bahlil Lahadalia mengata-

kan pemerintah akan membangun industri nikel dari hulu hingga hilir menjadi baterai mobil listrik yang memiliki daya saing di tingkat global . Ini dilakukan setelah pemerintah belajar dari permasalahan PT Freeport Indonesia.

Daily News Update Page 14

He said that Indonesia is rich in natural resources (SDA). One of them is gold mined

by Freeport Indonesia. Unfortunately, for decades, the gold reserves in Papua have

been dredged. However, the government does not yet have a gold industry from

upstream to downstream.

"We have a lot of gold, Freeport will soon run out of gold. Are there any downstream

industries capable of competing at the global level? Nor is there any," he said in a

virtual Mandiri Investment Forum 2021, Wednesday (3/2).

Apart from the industrial side, he said the government will also regulate the share

ownership of the nickel company. He ensured that nickel company shares would

later involve entrepreneurs at the national level, entrepreneurs in the regions, even

MSMEs, apart from of course the portion for foreign investors.

To note, this is different from Freeport Indonesia's share ownership. At Freeport,

during the decades since the gold mining company was founded, the state only

controlled 9.63 percent. The country only owned 51.2 percent in 2018 after a fairly

tough divestment process with Freeport McMoran.

"The problem of Freeport is enough to be a

valuable lesson for us. Now, its shares are properly regulated, it must involve

national entrepreneurs, entrepreneurs in the regions, and must involve MSMEs in

every supply chain," he said.

Later, the government will build an electric

vehicle battery industry (EV battery). This is because 23.7 percent of the world's

nickel ore reserves which are the main raw material for electric vehicle batteries are in

Indonesia.

Ia menuturkan Indonesia kaya akan sumber daya alam (SDA). Salah satunya emas yang ditambang oleh Freeport Indonesia. Sayangnya, hingga puluhan tahun cadangan emas di Papua itu dikeruk. Namun pemerintah belum memiliki industri emas dari hulu hingga hilir.

"Emas kita luar biasa sekali banyak, Freeport sebentar lagi akan habis emas-nya. Apakah ada industri yang sampai dengan hilir yang mampu bersaing di tingkat global? Juga tidak ada," ujarnya dalam acara Mandiri Investment Forum 2021 secara virtual, Rabu (3/2).

Selain dari sisi industri, ia menuturkan pemerintah juga akan mengatur kepe-milikan saham perusahaan nikel tersebut. Ia memastikan saham perusahaan nikel nantinya akan melibatkan pengusaha di tingkat nasional, pengusaha di daerah, bahkan UMKM, selain tentunya porsi untuk investor asing.

Untuk diketahui, ini berbeda dengan kepe-milikan saham Freeport Indonesia. Di Freeport, selama puluhan tahun sejak perusahaan tambang emas itu didirikan, negara hanya menggenggam 9,63 persen. Negara baru memiliki 51,2 persen pada 2018 lalu setelah proses divestasi yang cukup alot dengan pihak Freeport McMoran.

"Masalah Freeport sudah cukup menjadi pelajaran berharga bagi kita. Sekarang, sahamnya diatur dengan baik harus melibatkan pengusaha nasional, pengusaha yang ada di daerah, dan harus libatkan UMKM dalam setiap rantai pasok," ucapnya.

Nantinya, pemerintah akan membangun industri baterai kendaraan listrik (EV battery). Pasalnya, sebesar 23,7 persen cadangan bijih nikel dunia yang merupa-kan bahan baku utama baterai kendaraan listrik berada di Indonesia.

Daily News Update Page 15

In addition, around 80 percent of the total raw material for electric vehicles is in Indonesia, ranging from nickel ore, cobalt, aluminum, manganese, and so on.

"This is the right momentum for Indonesia to become a respected player in the world in the context of preparing electric car batteries," he said.

He revealed that at least 4 global electric vehicle players are already interested in investing in Indonesia. Including, LG with an investment value of US$ 9.8 billion and CATL worth US$ 5.2 billion.

Meanwhile, the other two BASF and Tesla are still in the exploratory stage.

"If these 4 companies enter, then this will be the right collaboration, they control technology and the market, we control natural resources," he said. (ulf/age)

Selain itu, sekitar 80 persen dari total bahan baku kendaraan listrik ada di Indonesia, mulai dari bijih nikel, kobalt, aluminium, mangan, dan sebagainya.

"Ini momentum tepat bagi Indonesia keluar menjadi pemain yang disegani di dunia dalam konteks untuk persiapan baterai mobil listrik," ucapnya.

Ia mengungkapkan setidaknya 4 pemain global kendaraan listrik sudah berminat untuk menanamkan investasi di Indonesia. Meliputi, LG dengan nilai investasi men-capai US$ 9,8 miliar dan CATL senilai US$ 5,2 miliar.

Sedangkan, dua lainnya BASF dan Tesla masih dalam tahap penjajakan.

"Kalau 4 perusahaan ini masuk, maka ini menjadi kolaborasi yang tepat, mereka kuasai teknologi dan pasar, kita kuasai sumber daya alam," katanya. (ulf/age)

Copper price climbs as Citi analyst predicts market deficit in H2 MINING.COM Staff Writer

COPPER prices bounced back on Wednesday despite concerns of weaker demand ahead of a

major holiday in China, the world’s top consumer.

Copper futures climbed 1.1% to $3.5635 a pound (or $7,856.21 a tonne) on the Comex by noon EST, rebounding from a one-month low.

China will celebrate its Lunar New Year holiday February 11-17, when metals demand usually dips as business activities slow.

Meanwhile, a recent coronavirus outbreak in China has dampened the country’s economic activities in January, dragging factory output and service activities growth to multi-month lows.

Consumption growth

However, outlook for copper remains positive for the later months of 2021. Analysts believe soaring sales of consumer goods such as home appliances and cars outside China are expected to invigorate copper consumption and create shortages later this year.

Daily News Update Page 16

Coronavirus lockdowns have meant many consumers who in previous times would have spent money on holidays, restaurants and other leisure activities are now choosing to buy electrical appliances and durable goods. This trend is expected to hold for some months.

“We are seeing some outright growth in developed market metals consumption in the construction, consumer appliances, and automotive sectors, as covid-19 drives home renovations and new home demand,” Citi analyst Oliver Nugent told Reuters.

Market deficit

Nugent expects the copper market to shift into a deficit in the second half of the year, resulting in a small surplus overall for 2021 followed by deficits in 2022 and 2023.

“In 2021, the market will pay more attention to the world ex-China demand than it has arguably done for the past decade,” Nugent said. “A data point people are talking about more and more is housing starts in the United States.”

According to BoA Securities analyst Michael Widmer, global copper consumption is forecast to rise 6% to 24.76 million tonnes this year after a 1.3% drop last year. He also sees Europe’s share of this at 3.1 million tonnes, a 10% jump from 2020. (With files from Reuters)

Metso Outotec wins order for iron ore pelletising plant Published by Jessica Casey, Editorial Assistant

METSO Outotec has signed a contract with Beijing Shougang International Engineering

Technology Co. Ltd (BSIET) on the delivery of environmentally sound technology for an iron ore pelletising plant to be built in Southwest China. The order value is not disclosed. The contract has been booked into Metals segment 4Q20 orders received.

Metso Outotec’s scope of delivery covers the engineering and design of the indurating system, engineering of the process gas fan system, supply of proprietary and key process equipment, instrumentation and control systems, as well as supervisory services and technical training. The core of the plant is Metso Outotec’s travelling grate pellet indurating furnace with a grate area of 432 m2.

“We are very pleased about this new order, and we are looking forward to working with the customer operating the steel plant and our long-term partner BSIET. This is the second pelletising plant contract we’ve received in China within 6 months, underlining the strong presence of our travelling grate technology on the Chinese market,” said Tobias Stefan, Vice President, Ferrous and Heat Transfer business line at Metso Outotec.

Pellet production at the plant is estimated to start by mid 2022. Metso Outotec’s travelling grate technology produces uniform pellets and ensures high performance and quality with low investment and operating costs, as well as low energy consumption and emissions.

Daily News Update Page 17

Baru Gold gets license to start mining By Michael McCrae

INDONESIA-focused Baru Gold (CVE:BARU) said today that the country's Ministry of Energy

and Mineral Resources has upgraded its Sangihe Gold Project Contract of Work to Operation Production status after a three month delay due to the Covid-19 pandemic in Indonesia.

Baru jumped nearly 14% today to 17 cents a share.

CEO Terry Filbert said the company has waited a long time for clearance.

“Since 2017, I have been focused on bringing the Sangihe gold project into profitable cash-flow production. After four long years we are now clear of obstacles to accomplish this goal,” said Filbert.

While it waited for the issuance of the licence upgrade, the company fast tracked the heap leach construction target. The company also mobilized its mining team to the site, started hiring local residents for the construction and production positions, identified land acquisition targets required for the project, and undertook steps to mitigate any environmental impact we may have on the island.

Filbert esimates that the construction phase at the mine will require 140 workers.

The existing CoW license for the Sangihe gold project is a 30-year license and under the recently issued 2020 mining regulations can be extended for 20 years. This CoW production status upgrade also gives the Company rights for refinery and export licences.

Coking coal price rally to continue while China curbs Australian coal import - Mitsubishi CFO

By: Reuters

JAPANESE trading house Mitsubishi expects the recent rally in coking coal prices to continue

as long as China keeps an unusual suspension of customs clearance of coal cargoes from Australia, its chief financial officer said on Wednesday.

The company, which is involved in food production and distribution business and development of an industrial park in Myanmar, expects any immediate impact from the recent coup to be limited, CFO Kazuyuki Masu told a news conference.

Myanmar's military seized power on Monday in a coup against the democratically elected government of Nobel laureate Aung San Suu Kyi, who was detained along with other leaders of her party in early morning raids.

Daily News Update Page 18

Vale 4Q20 iron ore output lower than estimated Bruno Venditti

VALE reported 4Q20 output of 84.5 million tonnes, lower than estimated by analysts, mainly

due to higher rainfall levels and tailings disposal restrictions in the Southeastern System in Brazil.

The number is a 5% decline from the third quarter (88.6 Mt) but well ahead of the same period a year earlier (78.3Mt).

Vale’s iron ore fines production totaled 300.4 Mt in 2020, in line with 2019 as a result of the resumption of halted operations such as Vargem Grande and Timbopeba, but offset by constraints in tailings disposal in Itabira and Brucutu; and delays in opening new mining fronts in Serra Norte and due to covid-19 restrictions.

In 4Q20, Vale restarted the Serra Leste operation, after receiving the required Installation License. The site is expected to produce 4-5 Mt in 2021, reaching 6 Mtpy of run-rate until the end of the year.

Vale ended 2020 with 322 Mt of production capacity and expects to achieve 350 Mt capacity by the end of 2021.

“Vale remains confident to achieve 400 Mtpy capacity by the end of 2022,” the company said in a press release.

Vale’s pellet production totalled 29.7 Mt in 2020, 29.0% lower than in 2019.

Sales volumes of iron ore fines and pellets totaled 286.1 Mt in 2020, 5% below iron ore fines production.

Iron ore prices bounced on Wednesday after analysts at Credit Suisse and Morgan Stanley offered bullish forecasts for the steelmaking raw material.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $152.65 a tonne, up nearly 2% from Tuesday’s trade.

Nickel

Vale nickel sales volumes were 66.1 kt in 4Q20, 13.6% higher than 3Q20, mostly as a result of higher production allowed the company to take advantage of a better price environment.

Sudbury-source ore production in Canada reached 11.2 kt in 4Q20, 72.3% higher than 3Q20. Voisey’s Bay-source ore production reached 8.9 kt in 4Q20, 11.9% lower than 3Q20 as a result of productivity challenges during ramp up after scheduled maintenance start at Long Harbour.

Production of finished nickel from Vale New Caledonia (VNC) source, reached 5.1 kt in 4Q20, 40.0% lower than 3Q20, mainly due to 50 days of blocked access to mine and plant roads in 2020 caused by independence activist protests in New Caledonia.

Vale copper production reached 360.1 kt in 2020, 5.5% lower than 2019.

Daily News Update Page 19

Brumadinho

Vale has reached an agreement on a settlement for damages from the deadly Brumadinho dam disaster in January 2019, which killed 270 people.

The attorney general of Minas Gerais state, Jarbas Soares Júnior, said on Twitter that the agreement will be signed on February 4 – the value was not disclosed.

In November, the head of the Brazilian state of Minas Gerais rejected the miner’s proposed settlement of around 21 billion reais ($3.97 billion).

Minas Gerais requested 54.6 billion reals ($10.3 billion) in compensation, a figure that included relocation and the psychological damage suffered by survivors and the victims’ families.

Vale argued that it had already paid about 8,700 individual claims and has allocated about R$ 10 billion ($1.83 billion) to repair the damages. Vale is nearing a 37 billion reais ($6.88 billion) deal, a source familiar with the negotiations told Reuters.

Metso Outotec starts portfolio review actions following bedding in of

merger Posted by Paul Moore

METSO Outotec has convened local trade unions to negotiations concerning the

restructuring and operational reduction of its operations in Sweden. The measures relate to new product strategy and business model changes and synergy targets from the Metso Outotec merger.

The Swedish operations have issued a negotiation proposal, according to which the total reduction need in Sweden is approximately 80 white collar positions mainly in the Minerals, Metals and Services business areas in the Skellefteå and Sala locations. Other locations may be impacted to a small extent.

The move is part of a post merger portfolio review across the whole company, especially where there are any significant overlaps in product ranges and deciding what to keep based on all aspects of the business – from commercial realities to cost effectiveness.

Paul Sohlberg, Metso Outotec VP Separation business line, which includes flotation, thickening and clarifying as well as related automation and digital solutions told IM in November 2020 that where there are overlaps, these were being looked at as part of the overall portfolio review which certainly for the highest business volume product areas was planned to be completed by end-2020, so these initial decisions are what are now being worked on.

Daily News Update Page 20

Sohlberg commented: “The merger brought together two great players, so we are putting everything on the table, approaching the process with an open mind. This means comparing what is the optimum combined offering from a product point of view but also from a supply chain and engineering practices point of view. And of course, getting feedback from our customers is also part of it.”

Just taking flotation as an example, on the Metso side they had both self-aspirating (DR) and forced air technologies (RCS with DV mechanism) whereas Outotec only offered forced air (TankCell with FloatForce mechanism) – so Sohlberg confirmed that the review was looking at the RCS and TankCell lines side by side with a view to keeping the “best of both worlds.” This process is happening not just for flotation but all the major product lines where there was a presence from both companies.

Largest gold mining companies ranked by reserves - report By Vladimir Basov

Newmont boasts the largest gold reserves base across the industry with stunning 53.2% growth year-over-year.

KITCO ranked gold mining companies based on their most recent reported attributable

proven & probable reserves in-situ.

With 100.2 Moz reported in 2019, Newmont has the largest gold reserve base across the industry. In 2019, Newmont added stunning 50 million ounces of gold reserves – a 53.2% growth over 2018 numbers – through the acquisition of Goldcorp, formation of the Nevada Gold Mines joint venture and the continuation of its exploration program. Current Newmont’s reserve and resource base can support stable production of more than 6 million ounces per annum for decades to come.

Barrick is second with 71 Moz of gold reserves reported in 2019. Barrick’s attributable gold mineral reserve increased by approximately 15% after depletion from mining, reflecting the incorporation of Randgold Resources, the formation of the Nevada Gold Mines joint venture with Newmont, disposal of Kalgoorlie mine and exploration success.

The world’s third largest Polyus’ ore reserves are estimated at 61 million ounces of gold, down 4.7% from 64 million ounces as at 31 December 2018. The changes in the estimates from 2018 to 2019 are due to depletion by mining and changes to stockpile inventories due to additions from mining and reclaim for processing.

Newcrest is fourth with 52 Moz of gold reserves reported in 2019. Reserves were down by 3.7% due to estimated mining depletion of approximately 3 million ounces of gold, offset by minor additions at operating sites.

Gold Fields is fifth with 49.3 Moz of gold in reserves. A 2.5% net increase in reserves was driven primarily by Asanko’s first time reporting, with strong contributions from extensions to existing mines and new mining positions at Agnew, St Ives and Tarkwa.

Daily News Update Page 21

AngloGold Ashanti’s ore reserve decreased from 44.1 Moz in December 2018 to 43.9 Moz in December 2019. This gross annual decrease of 0.2 Moz includes depletion of 3.7 Moz. The increase before depletion of 3.5 Moz, resulted from additions of 3.6 Moz due to exploration and modelling changes, changes in economic assumptions of 0.4 Moz and a change in ownership of 0.1 Moz. Other factors resulted in a 0.6 Moz reduction.

Kinross’ total estimated proven and probable gold reserves at year-end 2019 were approximately 24.3 million ounces. The decrease of 1.2 million ounces in estimated gold reserves compared to year-end 2018 was mainly a result of production depletion, partially offset by additions at Paracatu, Kupol and Chirano.

Harmony Gold’s total attributable gold mineral reserves amounted to 23.72 Moz of gold, a 0.3% decrease on the 23.8 Moz reported a year before. Gold reserve ounces at Harmony’s South African operations accounted for 47% while the Papua New Guinea gold ounces represented 53% of Harmony’s total mineral reserves as at 30 June 2019.

In 2019, Polymetal’s ore reserves increased by 6.3% year-on-year to 23.7 Moz of gold due to successful exploration results with the subsequent re-evaluation of ore reserves at Kyzyl, Veduga, Kutyn and an initial estimate at Primorskoye (Dukat hub).

Agnico Eagle’s proven and probable gold reserves totaled 21.6 million ounces at December 31, 2019, a 2.1% decrease compared with 22.0 million ounces at December 31, 2018 while the gold reserve grade increased by 4.8%.

Top 10 gold mining companies ranked by proven & probable reserves.

Company 2019 Au Reserves,

Moz 2018 Au

Reserves, Moz % change

1 Newmont 100.2 65.4 53.2

2 Barrick 71 62 14.5

3 Polyus 61 64 -4.7

4 Newcrest 52 54 -3.7

5 Gold Fields 49.3 48.1 2.5

6 AngloGold 43.9 44.1 -0.5

7 Kinross 24.3 25.5 -4.7

8 Harmony Gold 23.72 23.8 -0.3

9 Polymetal 23.7 22.3 6.3

10 Agnico Eagle 21.6 22 -1.8

Total 470.72 431.2 9.2