Daily News Update Page 1

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This is what the Dit.Gen. of Minerba said regarding PP and PKP2B Extension Guarantee Begini kata Dirjen Minerba soal tiga PP dan jaminan perpanjangan PKP2B

The Covid-19 Pandemic Makes Coal Exports Fade Pandemi Covid-19 Bikin Ekspor Batu Bara Meredup

Building DME Project, BUMI Ask for 0% Coal Royalty Incentive Bangun Proyek DME, BUMI Minta Insentif Royalti Batu Bara 0% Aneka Tambang (ANTM)'s quarterly performance improved Kinerja kuartalan Aneka Tambang (ANTM) membaik Coal Market Predicted to Stable in the Second Semester of Next Year Pasar Batubara Diprediksi Stabil Semester Kedua Tahun Depan PTBA Coal Gasification Makes the Country Save Foreign Exchange Rp8.7 T Gasifikasi Batu Bara PTBA Bikin Negara Hemat Devisa Rp 8,7 T

Want Zero Percent Coal Royalty? This is the Condition! Mau Royalti Batu Bara Nol Persen? Ini Syaratnya!

PTBA has proven to be a pioneer in developing coal down-stream businesses in Indonesia PTBA buktikan sebagai pionir pengembangan usaha hilirisasi batubara di Indonesia

CEO of Freeport McMoran (FCX) Doesn't Want to Build a New Smelter, Offers Other Alternatives CEO Freeport McMoran (FCX) tak mau bangun smelter baru, tawarkan alternatif lain

24.75 M Ton Coal Reserves in 2040, This is the Way to Realize Energy Security Cadangan Batubara 24,75 M Ton di 2040, Ini Cara Wujudkan Ketahanan Energi

Kontan

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CNBC Indonesia Kontan Republika CNBC Indonesia

Bisnis

Kontan

Kontan

DetikFinance

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Daily News Update Page 2

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This is Antam's (ANTM) response to the news that there will be additional shares in Weda Bay Ini tanggapan Antam (ANTM) soal kabar bakal tambah saham di Weda Bay Measuring the Fate of Coal in the Middle of Green Energy Trends Menakar Nasib Batu Bara di Tengah Tren Energi Ramah Lingkungan Nickel surplus looms as electric vehicle buzz fades Metso Outotec to bring HRC benefits to other OEM’s HPGRs Critical copper negotiations point to a tight market Canada's Teck sees higher China met coal sales as Australia hit by import curbs Dacian moves forward on underground mining strategy August US utility coal stockpiles total 129 million st, nine-month low: EIA

Kontan Bisnis Mining.com Int'l Mining Mining Weekly S&P Global Platts Australian Mining S&P Global Platts

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Daily News Update Page 3

This is what the Dit.Gen. of Minerba said regarding PP and

PKP2B Extension Guarantee Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

THE DIRECTOR General of Mineral and

Coal (Minerba) of the Ministry of EMR, Ridwan Djamaludin, opened his voice regarding the progress of drafting a Government Regulation (PP) as a rule of Law Number 3 of 2020 (Minerba Law).

Ridwan revealed, after being ratified by the DPR and the Government on June 10, 2020, there is actually still one year to issue a derivative regulation from the new Minerba Law. However, the Ministry of EMR has accelerated the preparation of the derivative regulations, and has set a target to issue three PPs within 6 months.

The three PPs consist of PPs concerning the implementation of mineral and coal mining business activities. Second, PP regarding mining areas, and third is PP regarding guidance and supervision. Ridwan said the three PPs would be completed soon.

Of the three PPs, regulations on business activities will be issued sooner. "Currently one of the three draft PPs (RPP) has reached the harmonization stage, namely the RPP on exploitation. Meanwhile, the RPP on territoriality and the RPP on guidance and supervision are also in the process of being completed," Ridwan said at the 31 Years APBI/ICMA event, Tuesday (27/10).

Ridwan claims, in the drafting of the PP, his party has accommodated proposals from coal mining companies through the Indonesian Coal Mining Association (APBI). He hopes that...

Begini kata Dirjen Minerba soal tiga PP dan jaminan perpanjangan PKP2B

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

DIREKTUR Jenderal Mineral dan Batubara

(Minerba) Kementerian ESDM Ridwan Djamaludin buka suara terkait progres penyusunan Peraturan Pemerintah (PP) sebagai aturan Undang-Undang Nomor 3 Tahun 2020 (UU Minerba).

Ridwan membeberkan, setelah disahkan oleh DPR dan Pemerintah pada 10 Juni 2020 lalu, sebenarnya masih ada waktu satu tahun untuk menerbitkan aturan turunan dari UU Minerba baru tersebut. Namun, Kementerian ESDM mengebut penyusunan aturan turunan itu, dan mematok target bisa menerbitkan tiga PP dalam waktu 6 bulan.

Ketiga PP itu terdiri dari PP tentang pelak-sanaan kegiatan usaha pertambangan minerba. Kedua, PP tentang wilayah pertam-bangan, dan ketiga adalah PP tentang pem-binaan dan pengawasan. Ridwan mengata-kan, ketiga PP tersebut segera rampung.

Dari ketiga PP itu, beleid tentang kegiatan usaha bakal terbit lebih cepat. "Saat ini satu dari tiga Rancangan PP (RPP) sudah men-capai tahap harmonisasi, yaitu RPP tentang pengusahaan. Sementara RPP tentang kewilayahan dan RPP tentang pembinaan dan pengawasan juga sudah dalam proses menuju selesai," kata Ridwan dalam acara 31 Tahun APBI/ICMA, Selasa (27/10).

Ridwan mengklaim, dalam penyusunan PP tersebut, pihaknya sudah menampung usulan dari perusahaan tambang batubara melalui Asosiasi Pertambangan Batubara Indonesia (APBI). Dia berharap,...

Daily News Update Page 4

He hopes that the regulations derived from the new Minerba Law will not make it difficult for coal business actors.

"We have submitted input from APBI, we have accommodated it. Hopefully this process will run smoothly and will not make it difficult for business actors," he continued.

Furthermore, Ridwan also emphasized that in the transition of the Coal Mining Exploitation Work Agreement (PKP2B) to a Special Mining Business License (IUPK), the government will provide extension certainty. However, he ensured that the extension given was evaluated according to the rules.

According to Ridwan, guaranteeing the extension has become a big issue, as if the

government has given privileges to PKP2B holders. "However, the government is of

the view that this extension is in the national interest. So that the coal industry

continues to grow and develop," said Ridwan.

Unfortunately, he did not explicitly disclose how the continuation of the PKP2B owned

by PT Arutmin Indonesia which will end its contract in a matter of days. Just so you

know, the PKP2B from a subsidiary of PT Bumi Resources Tbk (BUMI) will end on

November 1, 2020.

General Manager of Legal & External Affairs PT Arutmin Indonesia Ezra Sibarani said that his party is still waiting for a decision from the Ministry of EMR. Ezra hopes that the government can immediately provide certainty. "Regarding the extension to the IUPK, we are still waiting for good news from the govern-ment. We will fully follow it," Ezra told Kontan.co.id, Tuesday (27/10).

Dia berharap, aturan turunan UU Minerba baru ini tidak mempersulit pelaku usaha batubara.

"Masukan-masukan dari APBI sudah kami masukan, kami akomodir. Semoga proses ini berjalan lancar dan tidak mempersulit para pelaku usaha," sambungnya.

Lebih jauh, Ridwan pun menegaskan bahwa dalam peralihan kontrak Perjanjian Karya Pengusahaan Pertambangan Batu-bara (PKP2B) menjadi Izin Usaha Pertam-bangan Khusus (IUPK), pemerintah akan memberikan kepastian perpanjangan. Namun, dia memastikan bahwa perpan-jangan yang diberikan telah melalui evaluasi sesuai aturan.

Menurut Ridwan, penjaminan perpan-jangan tersebut telah menjadi isu besar, seolah pemerintah memberikan keisti-mewaan terhadap para pemegang PKP2B. "Namun kami pemerintah berpandangan bahwa perpanjangan ini adalah demi kepentingan nasional. Agar industri batu-bara terus tumbuh dan berkembang," sebut Ridwan.

Sayangnya, dia tak membeberkan secara tegas bagaimana kelanjutan PKP2B milik PT Arutmin Indonesia yang akan berakhir kontraknya dalam hitungan hari ke depan. Asal tahu saja, PKP2B dari anak perusaha-an PT Bumi Resources Tbk (BUMI) tersebut akan berakhir pada 1 November 2020.

General Manager Legal & External Affairs PT Arutmin Indonesia Ezra Sibarani menyampaikan bahwa pihaknya masih menunggu keputusan dari Kementerian ESDM. Ezra berharap, pemerintah bisa segera memberikan kepastian. "Terkait perpanjangan ke IUPK, kita masih me-nunggu kabar baiknya dari pemerintah. Kita serahkan sepenuhnya," kata Ezra kepada Kontan.co.id, Selasa (27/10).

Daily News Update Page 5

The Covid-19 Pandemic Makes

Coal Exports Fade Denis Riantiza Meilanova

AS OF October 2020, Indonesia's coal

export realization has only reached 58.81 percent of this year's target.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the Covid-19 pandemic had caused a contraction in the coal mining sector. The contraction was reflected in low export realization, domestic demand, and lower coal prices.

"Coal exports are targeted at 395 million tons, as of October it has only reached 58.81 percent or 232.3 million tons," said Airlangga at the APBI-ICMA virtual conference, Tuesday (27/10/2020).

Domestic demand for coal, or DMO, is also estimated to only reach 141 million tons by the end of this year. The projection is below the predetermined target of 155 million tonnes.

The Covid-19 pandemic, said Airlangga, had also caused coal commodity prices to drop from US$ 66.89 per ton in February 2020 to only US$ 49.42 per ton in September 2020.

To anticipate weak demand for coal, Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that the association is currently actively working with Indonesian Embassies in various countries to open up new potential markets for Indonesian coal, such as in Pakistan and Bangladesh.

In addition, Hendra also sees Southeast Asia as a potential market for Indonesian coal in the future.

Pandemi Covid-19 Bikin Ekspor

Batu Bara Meredup Denis Riantiza Meilanova

SAMPAI dengan Oktober 2020, realisasi

ekspor batu bara Indonesia baru mencapai 58,81 persen dari target tahun ini.

Menteri Koordinator Bidang Perekonomian Airlangga Hartarto mengatakan pandemi Covid-19 telah menyebabkan kontraksi di sektor pertambangan batu bara. Kontraksi tecermin dari masih rendahnya realisasi ekspor, permintaan domestik, dan turunnya harga batu bara.

"Ekspor batu bara targetnya 395 juta ton, per Oktober baru mencapai 58,81 persen atau 232,3 juta ton," ujar Airlangga dalam konferensi virtual APBI-ICMA, Selasa (27/10/2020).

Permintaan domestik batu bara atau DMO juga diperkirakan hanya bisa mencapai sekitar 141 juta ton hingga akhir tahun ini. Proyeksi tersebut berada di bawah target yang telah ditetapkan, yakni sebesar 155 juta ton.

Pandemi Covid-19, kata Airlangga, juga telah membuat harga komoditas batu bara anjlok dari US$66,89 per ton pada Februari 2020 menjadi hanya US$49,42 per ton pada September 2020.

Untuk mengantisipasi lemahnya permintaan batu bara, Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan saat ini asosiasi tengah aktif bekerja sama dengan Kedutaan Besar Indonesia di berbagai negara untuk membuka potensi pasar baru bagi batu bara Indonesia, seperti di Pakistan, dan Bangladesh.

Selain itu, Hendra juga melihat Asia Tenggara sebagai pasar yang cukup potensial untuk batu bara Indonesia ke depan.

Daily News Update Page 6

"The Southeast Asian market is very important for our future. If we combine Asean as a single market, it will rank number three after China and India. We hope that the potential demand for coal from Southeast Asia is mainly driven by Vietnam," he said. Editor: Fatkhul Maskur

"Pasar Asia Tenggara sangat penting untuk masa depan kita. Jika kita gabungkan Asean sebagai single market, itu peringkat nomor tiga setelah China dan India. Kami berharap potensi permintaan batu bara dari Asia Tenggara, terutama didorong oleh Vietnam," katanya. Editor : Fatkhul Maskur

Building DME Project, BUMI Ask for 0% Coal Royalty Incentive

Anisatul Umah, CNBC Indonesia

THE PRESIDENT of the Republic of

Indonesia, Joko Widodo, has told his staff to be more serious in pushing downstream coal. Jokowi also asked that the export of strategic raw coal commodities be ended.

At least two coal companies are planning to develop a coal downstream project, namely the coal gasi fication project, namely PT Bumi Resources Tbk (BUMI) and PT Bukit Asam Tbk (PTBA).

Director & Corporate Secretary of PT Bumi Resources Tbk (BUMI) Dileep Srivastava said the company welcomes the govern-ment's plan to encourage downstreaming. Therefore, BUMI also participates in the coal downstream project.

The company plans to cooperate with Air Products to build a coal gasification industry into methanol worth US$ 2 billion in Batuta Industrial Chemical Park, Bengalon, East Kutai, East Kalimantan. This project is a consortium of the Bakrie Group, namely PT Bakrie Capital Indonesia (BCI), PT Bumi Resources Tbk (BUMI), PT Ithaca Resources.

Bangun Proyek DME, BUMI Minta Insentif Royalti Batu Bara 0%

Anisatul Umah, CNBC Indonesia

PRESIDEN RI Joko Widodo telah bertitah

kepada jajarannya agar makin serius dalam mendorong hilirisasi batu bara. Jokowi pun meminta agar ekspor komo-ditas strategis batu bara mentah diakhiri.

Setidaknya ada dua perusahaan batu bara yang berencana mengembangkan proyek hilirisasi batu bara yakni proyek gasifikasi batu bara yakni PT Bumi Resources Tbk (BUMI) dan PT Bukit Asam Tbk (PTBA).

Director & Corporate Secretary PT Bumi Resources Tbk (BUMI) Dileep Srivastava menyampaikan perusahaan menyambut baik rencana pemerintah untuk men-dorong hilirisasi. Oleh karena itu, BUMI juga turut berpartisipasi dalam proyek hilirisasi batu bara.

Perusahaan direncanakan bekerja sama dengan Air Products untuk membangun industri gasifikasi batu bara menjadi methanol senilai US$ 2 miliar di Batuta Industrial Chemical Park, Bengalon, Kutai Timur, Kalimantan Timur. Proyek ini merupakan konsorsium Grup Bakrie yakni PT Bakrie Capital Indonesia (BCI), PT Bumi Resources Tbk (BUMI), PT Ithaca Resources.

Daily News Update Page 7

For that, he continued, his party asked the

company to get a 0% coal royalty incentive

if it carried out this downstream project.

Moreover, this has been regulated in the

Law on Job Creation.

"It is hoped that they are entitled to tax

incentives and royalties in the Omnibus

Law," he told CNBC Indonesia, Tuesday

(27/10/2020).

He said that Indonesia's coal production

was still the dominant export, while

domestic consumption was only around

20-25%. For this reason, his party

welcomes the government's policy for coal

downstreaming.

"How to use coal with an increase in added

value, for purposes that have more added

value, we welcome it," he said.

Previously, Chairman of the Indonesian

Mining Experts Association (Perhapi) Rizal

Kasli considered that the imposition of a

0% coal royalty was still not enough to

encourage downstreaming.

He said, there are still a number of other

things that the government needs to help

to push this downstream to take place,

including land acquisition, both for mining,

project locations, and acceleration in

licensing. According to him, so far it takes a

long time for miners to take care of these

matters.

"This licensing is a scourge for the mining

industry. So far, it takes a very long time to

be able to run a project. This will also

disrupt costs, the longer the project is

carried out, the greater the cost," he

explained in an interview with CNBC

Indonesia, Wednesday (14/10/2020). (wia)

Untuk itu, lanjutnya, pihaknya meminta agar perusahaan bisa mendapatkan insentif royalti batu bara 0% jika melakukan proyek hilirisasi ini. Apalagi, ini telah diatur di dalam Undang-Undang tentang Cipta Kerja.

"Diharapkan berhak dapat tax incentive dan royalti di Omnibus Law," tuturnya kepada CNBC Indonesia, Selasa (27/10/ 2020).

Dia menyebut, produksi batu bara Indonesia selama ini masih dominan ekspor, sementara untuk konsumsi dalam negeri baru sekitar 20-25%. Untuk itu, pihaknya menyambut baik kebijakan pemerintah untuk hilirisasi batu bara.

"Bagaimana menggunakan batu bara dengan peningkatan nilai tambah, untuk keperluan yang lebih memiliki nilai tambah, kita sambut baik," ujarnya.

Sebelumnya, Ketua Umum Perhimpunan Ahli Pertambangan Indonesia (Perhapi) Rizal Kasli menganggap pemberlakuan royalti batu bara 0% masih belum cukup untuk mendorong hilirisasi.

Dia mengatakan, masih ada beberapa hal lain yang perlu dibantu pemerintah untuk mendorong hilirisasi ini berjalan antara lain pembebasan lahan, baik untuk tambang, lokasi proyek, dan percepatan dalam perizinan. Menurutnya, selama ini butuh waktu yang panjang bagi penam-bang dalam mengurus hal-hal tersebut.

"Perizinan ini menjadi suatu momok bagi industri pertambangan. Selama ini mem-butuhkan waktu yang sangat lama untuk bisa menjalankan suatu proyek. Ini akan mengganggu biaya juga, semakin lama proyek itu dikerjakan, semakin besar pula biaya yang harus dikeluarkan," paparnya dalam wawancara bersama CNBC Indonesia, Rabu (14/10/2020). (wia)

Daily News Update Page 8

Aneka Tambang (ANTM)'s quarterly performance improved

Reporter: Dityasa H. Forddanta | Editor: Wahyu T. Rahmawati

THE FINANCIAL performance of PT Aneka

Tambang Tbk (ANTM) has improved. This state-owned company recorded sales of Rp 8.81 trillion in the third quarter.

This achievement jumped 119% compared to the previous quarter, Rp 4.02 trillion. Cumulatively, ANTM's sales for the January-September period decreased 26% on an annual basis to Rp 18.04 trillion.

Gold sales were still the main contributor to sales, amounting to 6.58 trillion or about 75 percent of the third quarter's consolidated sales. This gold sales figure also rose 170% compared to the second quarter of Rp 2.43 trillion. "The increase is in line with the increase in gold sales volume and demand, especially in the domestic market," said ANTM Corporate Secretary Kunto Hendrapawoko, Tuesday (27/10).

Meanwhile, gold sales during the nine months of this year amounted to Rp 12.8 trillion, or 72 percent of consolidated sales. This figure is down 24% compared to the same period the previous year, Rp 17.05 trillion.

Although still a major contributor, most of ANTM's gold sales do not come from the company's mines. Of the Rp 12.8 trillion sales, Rp 11.97 trillion was the cost of buying precious metals.

If detailed further, ANTM recorded gold sales volume of 6,967 kilograms (kg) tons in the third quarter yesterday. This volume shot up 147% compared to the second quarter which amounted to 2,818 kg.

Kinerja kuartalan Aneka Tambang (ANTM) membaik

Reporter: Dityasa H. Forddanta | Editor: Wahyu T. Rahmawati

KINERJA keuangan PT Aneka Tambang Tbk

(ANTM) membaik. Emiten pelat merah ini mencatat penjualan Rp 8,81 triliun kuartal ketiga lalu.

Pencapaian tersebut lompat 119% di-banding kuartal sebelumya, Rp 4,02 triliun. Secara akumulatif penjualan ANTM periode Januari-September turun 26% secara tahunan menjadi Rp 18,04 triliun.

Penjualan emas masih menjadi kontributor utama penjualan, yakni sebesar 6,58 triliun atau setara sekitar 75% dari penjualan konsolidasi kuartal ketiga. Angka penjualan emas ini juga naik 170% dibanding kuartal kedua Rp 2,43 triliun. "Kenaikan tersebut sejalan dengan peningkatan volume pen-jualan emas dan permintaan terutama di pasar domestik," ujar Sekretaris Perusahaan ANTM Kunto Hendrapawoko, Selasa (27/10).

Adapun penjualan emas sepanjang sembilan bulan tahun ini Rp 12,8 triliun, atau setara 72% dari penjualan konsolidasi. Angka ini turun 24% dibanding periode yang sama tahun sebelumnya, Rp 17,05 triliun.

Meski masih menjadi kontributor utama, sebagian besar penjualan emas ANTM bukan berasal dari tambang perusahaan. Dari penjualan Rp 12,8 triliun tersebut, sebesar Rp 11,97 triliun merupakan beban pokok pembelian logam mulia.

Jika dirinci lebih lanjut, ANTM mencatat volume penjualan emas 6.967 kilogram (kg) ton kuartal ketiga kemarin. Volume ini melesat 147% dibanding kuartal kedua yang sebesar 2.818 kg.

Daily News Update Page 9

Accumulatively, ANTM's sales volume for nine months this year reached 14,882 kg. From the production side, only 1,280 kg came from the Pongkor and Cibaliung mines. The gold production volume from the mine was 430 kg, up 6% compared to the previous quarter, 404 kg.

The ferronickel sales segment was the second largest contributor after gold, with Rp 3.26 tril l ion or 18 percent of consolidated sales in the third quarter. Although not as big as the gold sales segment, ANTM's ferronickel segment is more efficient.

The cash production cost or cash cost for this segment for the January-September period is only US$ 3.34 per pound of nickel. This value is down 15% over the same period the previous year, US$ 3.95 per pound. "This position strengthens our position as one of the global low cost ferronickel producers," said Kunto.

This also helped ANTM to record a net profit of Rp 750.95 billion in the third quarter yesterday, up 105% compared to the previous quarter.

Meanwhile, the accumulative net profit from January to September reached Rp. 835.77 billion, up 30% over the same period last year, Rp. 641.51 billion.

Secara akumulatif, capaian volume pen-jualan ANTM selama sembilan bulan tahun ini mencapai 14.882 kg. Dari sisi produksi, hanya sebesar 1.280 kg yang berasal dari tambang Pongkor dan Cibaliung. Adapun volume produksi emas dari tambang ter-sebut sebesar 430 kg, naik 6% dibanding kuartal sebelumnya, 404 kg.

Segmen penjualan feronikel menjadi kontri-butor terbesar kedua setelah emas, yakni Rp 3,26 triliun atau setara 18% dari penjualan konsolidasi hingga kuartal ketiga. Meski belum sebesar segmen penjualan emas, namun segmen feronikel ANTM lebih efisien.

Biaya tunai produksi atawa cash cost segmen ini untuk periode Januari-September hanya US$ 3,34 per pon nikel. Nilai ini turun 15% dibanding periode yang sama tahun sebelumnya, US$ 3,95 per pon. "Posisi tersebut memperkuat posisi kami sebagai salah satu produsen feronikel global ber-biaya rendah," tandas Kunto.

Hal tersebut turut membantu ANTM men-catat laba bersih Rp 750,95 miliar kuartal ketiga kemarin, melesat 105% dibanding kuartal sebelumnya.

Adapun perolehan la ba bersih secara akumulatif sejak Januari hingga September mencapai Rp 835,77 miliar, naik 30% dibanding periode yang sama tahun lalu, Rp 641,51 miliar.

Coal Market Predicted to Stable in the Second Semester of Next

Year Reporter: Intan Pratiwi/Editor: Dwi

Murdaningsih

THE IMPACT of the Covid-19 pandemic

has hit economies around the world. Domestically,...

Pasar Batubara Diprediksi Stabil Semester Kedua Tahun

Depan Reporter: Intan Pratiwi/ Redaksi: Dwi

Murdaningsih

DAMPAK pandemi covid-19 memukul

perekonomian seluruh dunia. Dalam negeri,...

Daily News Update Page 10

Domestically, one of the areas affected is the coal sector. Businessmen also need to tighten their belts, because it is predicted that the economy will only recover in the second half of next year.

President Director of PT Kideco Jaya Agung M. Kurnia Ariawan explained that economic stability might improve in the first half of next year. However, to achieve a stable coal market condition can only be felt in the second semester.

Kurnia estimates that coal demand and supply will begin to recover in 2021, but will not be at the same level before Covid-19. Next year's global coal demand is projected to be in the range of 973 million tons.

"The decline in demand for Indonesian coal by almost all importers, especially from India, fell from 28 million tons to 14 million tons," said Kurnia in an APBI discussion, Tuesday (27/10).

During the second quarter of 2020 (April-June 2020), Indonesia's coal exports were only 93 million tonnes, down about 17.6 percent when compared to the same period last year, which reached 113 million tonnes. Until the end of this year, global coal demand is estimated to be in the range of 938 million tons. This figure is far from the estimated figure before Covid-19, which is 1,035 million tons.

"In general, in the first half of 2021 (the coal market) will still be affected by the Covid-19 pandemic. Then in the second half, we will see a real recovery. But there are a number of challenges, such as how vaccines will be distributed, how different virus mutations are. in each region," he said.

He hopes that the economies of the countries for Indonesia's coal export destinations will soon recover, especially India, which is one of Indonesia's main coal export destinations.

Dalam negeri, salah satu yang terdampak adalah sektor batubara. Para pengusaha pun perlu mengencangkan ikat pinggang, karena diprediksi ekonomi baru akan pulih semester dua tahun depan.

Presiden Direktur PT Kideco Jaya Agung M. Kurnia Ariawan menjelaskan secara stabilitas ekonomi mungkin bisa membaik pada semester pertama tahun depan. Hanya saja, untuk mencapai kondisi pasar batubara yang stabil baru bisa terasa di semester dua.

Kurnia memperkirakan permintaan dan pasokan batu bara mulai pulih pada 2021, tetapi tidak akan berada di level yang sama sebelum Covid-19. Permintaan batu bara global tahun depan diproyeksikan berada pada kisaran 973 juta ton.

"Penurunan permintaan batu bara Indonesia hampir oleh semua importir, terutama dari India yang turun dari 28 juta ton menjadi 14 juta ton," ujar Kurnia dalam diskusi APBI, Selasa (27/10).

Sepanjang kuartal II/2020 (April-Juni 2020), ekspor batu bara Indonesia hanya 93 juta ton atau turun sekitar 17,6 persen bila diban-dingkan dengan periode yang sama tahun lalu, yakni mencapai 113 juta ton. Hingga akhir tahun ini, permintaan batu bara global diperkirakan berada pada kisaran 938 juta ton. Angka ini turun jauh dari angka perkira-an sebelum Covid-19, yakni 1.035 juta ton.

"Secara umum pada paruh pertama 2021 (pasar batu bara) masih akan terdampak pandemi Covid-19. Lalu baru pada paruh kedua, kita akan lihat real recovery. Tapi ada sejumlah tantangan, seperti bagaimana vaksin akan didistribusikan, bagaimana mutasi virus yang berbeda-beda di tiap wilayah," katanya.

Dia berharap agar perekonomian negara-negara tujuan ekspor batu bara Indonesia dapat segera pulih, terutama India yang merupakan salah satu negara tujuan ekspor batu bara utama Indonesia.

Daily News Update Page 11

Meanwhile, the Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that the association is currently actively working with the Indonesian Embassies in various countries to open up new potential markets for Indonesian coal, such as in Pakistan and Bangladesh. In addition, Hendra also sees Southeast Asia as a potential market for Indonesian coal in the future.

"The Southeast Asian market is very important for our future. If we combine Asean as a single market, it will rank number three after China and India. We hope that the potential demand for coal from Southeast Asia is mainly driven by Vietnam," he said.

Sementara itu, Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan bahwa saat ini asosiasi tengah aktif bekerja sama dengan Kedutaan Besar Republik Indonesia di berbagai negara untuk membuka potensi pasar baru bagi batu bara Indonesia, seperti di Pakistan dan Bangladesh. Selain itu, Hendra juga melihat Asia Tenggara sebagai pasar yang cukup potensial untuk batu bara Indonesia ke depan.

"Pasar Asia Tenggara sangat penting untuk masa depan kita. Jika kita gabungkan Asean sebagai single market, itu peringkat nomor tiga setelah China dan India. Kami berharap potensi permintaan batu bara dari Asia Tenggara, terutama didorong oleh Vietnam," katanya.

PTBA Coal Gasification Makes the Country Save Foreign

Exchange Rp8.7 T

IN LINE with President Joko Widodo's

vision to accelerate the increase in added value of coal, PT Bukit Asam Tbk (PTBA) continues to prove and carry out its commitment as a pioneer in developing coal downstream business in Indonesia.

PTBA Corporate Secretary Apollonius Andwie C stated that PTBA's commitment was reflected in the commitment to build a downstream coal plant into dymethyl ether (DME) located in Tanjung Enim, South Sumatra.

"The coal downstream plant will process as much as 6 million tons of coal per year and process it into 1.4 million tons of DME which can be used as an alternative fuel to replace LPG," he said.

Gasifikasi Batu Bara PTBA Bikin Negara Hemat Devisa Rp 8,7 T

SEJALAN dengan visi Presiden Joko Widodo

untuk percepatan peningkatan nilai tambah batu bara, PT Bukit Asam Tbk (PTBA) terus membuktikan dan menjalankan komitmen-nya sebagai pionir pengembangan usaha hilirisasi batu bara di Indonesia.

Corporate Secretary PTBA Apollonius Andwie C menyatakan komitmen PTBA tercermin dengan komitmen membangun pabrik hilirisasi batu bara (coal) menjadi dymethil eter (DME) yang berlokasi di Tanjung Enim, Sumatera Selatan.

"Pabrik hilirisasi batu bara tersebut akan mengolah sebanyak 6 juta ton batu bara per tahun dan diproses menjadi 1,4 juta ton DME yang dapat digunakan sebagai bahan bakar alternatif pengganti LPG," ujarnya.

Daily News Update Page 12

The presence of DME, he said, as an alternative fuel could help reduce LPG imports and save foreign exchange. Based on the calculation of the Coordinating Ministry for Maritime Affairs and Invest-ment, the country's potential savings could reach Rp. 8.7 trillion.

The downstream project construction preparation is planned to start in mid-2021 and target operations in 2025. This downstream project has also been approved by President Joko Widodo as part of the National Strategic Program as stipulated in Presidential Regulation No. 18/2020.

Previously, Septian Hario Seto, Deputy for Investment and Mining Coordination at the Coordinating Ministry for Maritime Affairs and Investment, said that the coal gasification project could save foreign exchange up to at least Rp 14 trillion.

The potential for foreign exchange savings comes from two coal gasification projects to become DME South Sumatra and one other project in East Kutai , East Kalimantan.

The potential for foreign exchange savings from the PTBA DME project is estimated at Rp. 8.7 trillion.

"Foreign exchange savings from the DME project in South Sumatra by PTBA could be Rp. 8.7 trillion, while in Batuta it depends on the price of methanol, but estimates are at US$ 300-350 million, around Rp. 5 trillion," he said in an interview with CNBC Indonesia, Tuesday. (27/10/2020).

He further said that the government has prepared many incentives for the down-streaming of coal, one of which is stipulated in the Law on Job Creation, where coal royalties for downstreaming can be 0%. According to him, the incentives given will be very helpful in achieving economic value.

Hadirnya DME, tuturnya, sebagai bahan bakar alternatif bisa membantu menekan impor LPG dan menghemat devisa negara. Berdasar hitungan Kementerian Koordinator Bidang Kemaritiman dan Investasi, potensi penghematan negara bisa mencapai Rp 8,7 triliun.

Persiapan konstruksi proyek hilirisasi di-rencanakan dimulai pada pertengahan 2021 dan target operasi di 2025. Proyek hilirisasi ini ini juga telah disetujui Presiden Joko Widodo sebagai bagian dari Program Strategis Nasional sebagaimana tertuang dalam Peraturan Presiden Nomor 18 Tahun 2020.

Sebelumnya, Septian Hario Seto, Deputi Bidang Koordinasi Investasi dan Pertam-bangan Kementerian Koordinator Bidang Kemaritiman dan Investasi, mengatakan proyek gasifikasi batu bara nantinya bisa menghemat devisa hingga setidaknya Rp 14 triliun.

Potensi penghematan devisa itu berasal dari dua proyek gasifikasi batu bara menjadi DME Sumatera Selatan dan salah satu proyek lainnya di Kutai Timur, Kalimantan Timur.

Adapun potensi penghematan devisa dari proyek DME PTBA diperkirakan mencapai Rp 8,7 triliun.

"Penghematan devisa dari proyek DME di Sumatera Selatan oleh PTBA bisa Rp 8,7 triliun, sementara di Batuta tergantung harga methanol, tapi estimasi di US$ 300-350 juta, sekitar Rp 5 triliun ya," paparnya dalam wawancara bersama CNBC Indonesia, Selasa (27/10/2020).

Lebih lanjut dia mengatakan, pemerintah telah menyiapkan banyak insentif untuk hilirisasi batu bara, salah satunya yakni tertuang dalam Undang-Undang tentang Cipta Kerja di mana royalti batu bara yang melakukan hilirisasi bisa 0%. Menurutnya, insentif yang diberikan ini akan sangat mem-bantu dalam mencapai nilai keekonomian.

Daily News Update Page 13

"This is very helpful , I have seen in methanol and DME, we see that it really helps the economy of this project," he said. (dob/dob)

"Ini sangat membantu, saya sudah lihat di methanol dan DME, kita lihat memang sangat membantu keekonomian dari proyek ini," tegasnya. (dob/dob)

Want Zero Percent Coal

Royalty? This is the Condition! Denis Riantiza Meilanova

COORDINATING Minister for the

Economy Airlangga Hartarto emphasized that the provisions in the Job Creation Law regarding zero percent royalties for coal business actors are only given to business actors who conduct downstreaming.

He denied the opinion that the provision would eliminate the obligation to pay royalties for all coal business actors.

"The Job Creation Law has provided incentives in the form of royalties of zero percent specifically for downstreamers who use coal gasification as raw material. Don't be mistaken that all royalties are waived for those who do not work downstream. That's not true! This is only for gasification or downstreaming of coal," Airlangga said in a virtual conference on the 31st Anniversary of APBI-ICMA, Tuesday (27/10/2020).

He said that until now the downstreaming of coal has not been running in Indonesia. Therefore, he hopes that the incentive support provided by the government can encourage downstreaming in the coal sector.

Meanwhile, increasing the added value of coal can be carried out, among others, through coal gasification, coking, under-ground coal gasi ficat ion, l iquid coal , improving coal quality , making coal briquettes, and slurry coal.

Mau Royalti Batu Bara Nol

Persen? Ini Syaratnya! Denis Riantiza Meilanova

MENTERI Koordinator Bidang Perekonomi-

an Airlangga Hartarto menegaskan bahwa ketentuan dalam Undang-Undang Cipta Kerja mengenai royalti nol persen bagi pelaku usaha batu bara hanya diberikan kepada pelaku usaha yang melakukan penghiliran.

Dia membantah anggapan yang menilai ketentuan tersebut akan menghilangkan kewajiban pembayaran royalti untuk seluruh pelaku usaha batu bara.

"Undang-Undang Cipta Kerja telah mem-berikan insentif dalam bentuk royalti sebesar nol persen khusus kepada hilirisasi yang menggunakan bahan baku gasifikasi batu bara. Jangan disalahartikan bahwa seluruh royalti dihapus untuk mereka yang tidak kerja hilirisasi. Itu tidak benar! Ini hanya untuk gasifikasi atau hilirisasi batu bara," ujar Airlangga dalam konferensi virtual 31 Tahun Hari Jadi APBI-ICMA, Selasa (27/10/2020).

Dia menuturkan bahwa hingga saat ini hilirisasi batu bara belum berjalan di Indonesia. Oleh karena itu, dia berharap supaya dukungan insentif yang diberikan pemerintah tersebut dapat mendorong penghiliran di sektor batu bara.

Adapun, peningkatan nilai tambah batu bara dapat dilakukan antara lain, melalui gasifikasi batu bara, pembuatan kokas, underground coal gasification, batu bara cair, peningkatan mutu batu bara, pembuatan briket batu bara, dan slurry coal.

Daily News Update Page 14

According to Airlangga, an increase in the added value of coal can have a positive impact on the country, namely that in addition to creating jobs, it can also reduce the burden of subsidies in the APBN and increase the trade balance.

"The importance of coal in the national economy is expected to contribute to the APBN and APBI [Indonesian Coal Mining Association]. It is also hoped that it can help the downstream roadmap currently being prepared by the Ministry of EMR," he said. Editor: Zufrizal

Menurut Airlangga, peningkatan nilai tambah batu bara dapat memberi dampak positif bagi negara, yakni selain menciptakan lapangan kerja, juga dapat mengurangi beban subsidi dalam APBN dan mening-katkan neraca perdagangan.

"Pentingnya batu bara dalam perekonomian nasional diharapkan dapat berkontribusi kepada APBN dan APBI [Asosiasi Pertam-bangan Batubara Indonesia] juga diharapkan bisa membantu roadmap hilirisasi yang sekarang sedang disusun oleh Kementerian ESDM," katanya. Editor : Zufrizal

PTBA has proven to be a pioneer

in developing coal downstream businesses in Indonesia

Reporter: Dimas Andi | Editor: Handoyo

IN LINE with President Joko Widodo's

vision to accelerate the increase in added value of coal, PT Bukit Asam Tbk (PTBA)

continues to prove and carry out its commitment as a pioneer in developing

coal downstream business in Indonesia.

PTBA Corporate Secretary Apollonius

Andwie C explained that PTBA's commitment is reflected in its seriousness

in developing coal downstreaming, among others, by planning to build a coal

processing plant into dymethyl ether (DME) located in Tanjung Enim, South

Sumatra.

The downstream coal plant will process as

much as 6 million tons of coal per year and process it into 1.4 million tons of DME

which can be used as an alternative fuel to replace LPG.

PTBA buktikan sebagai pionir

pengembangan usaha hilirisasi batubara di Indonesia

Reporter: Dimas Andi | Editor: Handoyo

SEJALAN dengan visi Presiden Joko

Widodo untuk mempercepat peningkatan nilai tambah batu bara, PT Bukit Asam Tbk (PTBA) terus membuktikan dan men-jalankan komitmennya sebagai pionir pengembangan usaha hilirisasi batubara di Indonesia.

Sekretaris Perusahaan PTBA Apollonius Andwie C menjelaskan, komitmen PTBA tercermin dari keseriusan dalam mengem-bangkan hilirisasi batubara antara lain dengan rencana pembangunan pabrik pemrosesan batu bara menjadi dymethil eter (DME) yang berlokasi di Tanjung Enim, Sumatera Selatan.

Pabrik hilirisasi batu bara tersebut akan mengolah sebanyak 6 juta ton batubara per tahun dan diproses menjadi 1,4 juta ton DME yang dapat digunakan sebagai bahan bakar alternatif pengganti LPG.

Daily News Update Page 15

"The presence of DME as an alternative fuel can help the government suppress LPG imports and save foreign exchange," Pollo added in a press release received by Kontan, Tuesday (27/10).

Based on the calculation of the Coor-dinating Ministry for Maritime Affairs and Investment, the potential for state savings could reach Rp. 8.7 trillion with the DME.

The downstream project construction preparation is planned to start in mid-2021 and the operational target is in 2025. This downstream project has also been approved by President Joko Widodo as part of the National Strategic Program as stated in the Presidden Regulation No. 18 of 2020.

“Hadirnya DME sebagai bahan bakar alternatif bisa membantu pemerintah menekan impor LPG dan menghemat devisa negara,” imbuh Pollo dalam siaran pers yang diterima Kontan, Selasa (27/10).

Berdasarkan hitungan Kementerian Koor-dinator Bidang Kemaritiman dan Investasi, potensi penghematan negara bisa mencapai Rp 8,7 triliun dengan adanya DME tersebut.

Persiapan konstruksi proyek hilirisasi ini direncanakan dimulai pada pertengahan tahun 2021 dan target operasional di tahun 2025 mendatang. Proyek hilirisasi ini juga telah disetujui oleh Presiden Joko Widodo sebagai bagian dari Program Strategis Nasional sebagaimana tertuang dalam Per-aturan Presidden No. 18 Tahun 2020.

CEO of Freeport McMoran (FCX) Doesn't Want to Build a New

Smelter, Offers Other Alternatives Reporter: Great Philemon | Editor: Herlina

Kartika Dewi

FREEPORT McMoran, the 49% share-

holder of PT Freeport Indonesia (PTFI), is reluctant to continue the new copper smelter project located at JIIPE Gresik, East Java.

Freeport McMoran Chief Executive Officer Richard Adkerson said that instead of building a new smelter, his party offers another alternative.

"As an alternative, instead of building a new smelter (it is better) to expand the capacity of the existing smelter and add to the precious metal factory," Richard said in a conference call in the third quarter of Freeport McMoran, quoted on Tuesday (27/10).

CEO Freeport McMoran (FCX) tak mau bangun smelter baru, tawarkan alternatif lain

Reporter: Filemon Agung | Editor: Herlina Kartika Dewi

FREEPORT McMoran, pemegang saham

49% PT Freeport Indonesia (PTFI) enggan melanjutkan proyek smelter tembaga baru

yang berlokasi JIIPE Gresik, Jawa Timur.

Chief Executive Officer Freeport McMoran Richard Adkerson mengungkapkan

ketimbang membangun smelter baru, pihaknya menawarkan alternatif lain.

"Sebagai alternatif, ketimbang membangun smelter baru (sebaiknya) memperluas

kapasitas smelter eksisting dan menambah pabrik logam mulia," ujar Richard dalam

conference call kuartal III Freeport McMoran, dikutip Selasa (27/10).

Daily News Update Page 16

However, Richard confirmed that the expansion of the existing smelter capacity will not be able to process all concentrate production in the future.

For this reason, he ensured that there needed to be government approval for concentrate exports that could not be accommodated by the existing smelter which was to be expanded.

He added that this matter had been discussed with the Indonesian government through the Ministry of State-Owned Enterprises (SOE). If this offer is accepted, Freeport is ready to pay the duty for export of concentrate which has not been absorbed.

According to him, this offer will also benefit both parties.

"We will avoid this mega construction project and a very positive financial benefit for the government," said Richard.

Still according to Richard, in the midst of this pandemic situation the Indonesian government, just like other countries, is also experiencing financial challenges.

He explained, in the 2018 divestment process, PTFI was committed to building a new smelter where the discussion lasted for years because the project was deemed uneconomical for all parties.

On the other hand, Freeport McMoran Executive Vice President and Chie f Financial Officer Kathleen Quirk said that the investment for a new smelter will cost more than the proposed expansion of the existing smelter.

"The previous estimate for the new smelter was US$ 3 billion and the estimate for the Gresik smelter expansion for 30 percent expansion was around US$ 250 million and the same amount was for refining precious metals," said Kathlee.

Kendati demikian, Richard memastikan perluasan kapasitas smelter eksisting pun tidak akan mampu memproses seluruh produksi konsentrat dimasa mendatang.

Untuk itu, ia memastikan perlu ada perse-tujuan pemerintah untuk ekspor konsen-trat yang tidak mampu ditampung smelter eksisting yang akan diperluas.

Ia menambahkan, hal ini telah dibahas dengan pemerintah Indonesia melalui Kementerian Badan Usaha Milik Negara (BUMN). Jika tawaran ini diterima maka Freeport siap membayar bea untuk ekspor konsentrat yang tak terserap.

Menurutnya, penawaran ini juga akan menguntungkan kedua belah pihak.

"Kami akan terhindar dari mega proyek konstruksi ini dan keuntungan finansial yang sangat positif bagi pemerintah," ujar Richard.

Masih menurut Richard, di tengah situasi pandemi ini pemerintah Indonesia, sama seperti negara-negara lain juga mengalami tantangan situasi finansial.

Ia menjelaskan, dalam proses divestasi 2018 silam PTFI berkomitmen untuk membangun smelter baru dimana pem-bahasannya berlangsung bertahun-tahun pasalnya proyek tersebut dinilai tidak ekonomis bagi semua pihak.

Disisi lain, Executive Vice President and Chief Financial Officer Freeport McMoran Kathleen Quirk mengungkapkan investasi untuk smelter baru memakan biaya lebih besar ketimbang usulan perluasan smelter eksisting.

"Estimasi sebelumnya untuk smelter baru US$ 3 miliar dan estimasi untuk perluasan smelter Gresik untuk 30% perluasan sekitar US$ 250 juta dan jumlah yang sama untuk pemurnian logam mulia," ujar Kathlee.

Daily News Update Page 17

Kontan.co.id notes that the copper smelter project worked on by PT Freeport Indonesia (PTFI) has not shown any significant progress. PTFI is still facing obstacles from the impact of the Covid-19 pandemic that has hit the entire world.

Vice President for Corporate Communi-cation of Freeport Indonesia Riza Pratama said, based on the results of verification by an independent verifier, work on the PTFI smelter project in Java Integrated Industrial and Port Estate (JIIPE) Gresik, East Java has only reached 5.86% until July 2020 or far below. target of 10.5%. The Corona outbreak has made the process of working on the project slow this year.

"Currently, there are no signi ficant physical activities in the field, except for activities such as preparing for a test piling," he added to Kontan.co.id, Thursday (15/10).

He added, PTFI together with the contractor and the Ministry of Energy and Mineral Resources (MEMR) are currently making necessary adjustments in relation to the impact of Covid-19 on the smelter project.

Dalam catatan Kontan.co.id, Proyek smelter tembaga yang digarap PT Freeport Indonesia (PTFI) belum menunjukkan per-kembangan yang signifikan. PTFI masih menghadapi kendala imbas pandemi Covid-19 yang melanda seluruh dunia.

Vice President Corporate Communication Freeport Indonesia Riza Pratama menyam-paikan, berdasarkan hasil verifikasi oleh pihak verifikator independen, pengerjaan proyek smelter PTFI di Java Integrated Industrial and Port Estate (JIIPE) Gresik, Jawa Timur baru mencapai 5,86% hingga bulan Juli 2020 atau jauh di bawah target sebesar 10,5%. Wabah Corona membuat proses pengerjaan proyek tersebut berjalan lambat sepanjang tahun ini.

“Saat ini tidak ada kegiatan fisik yang signifikan di lapangan, kecuali kegiatan seperti menyiapkan test piling,” imbuh dia kepada Kontan.co.id, Kamis (15/10).

Ia menambahkan, PTFI bersama pihak kontraktor serta Kementerian Energi dan Sumber Daya Mineral (ESDM) tengah melakukan pengaturan (adjustment) yang diperlukan sehubungan dengan dampak Covid-19 terhadap pengerjaan proyek smelter tersebut.

24.75 M Ton Coal Reserves in 2040, This is the Way to Realize

Energy Security Alfi Kholisdinuka - detikFinance

THE DIRECTOR General of Mineral and

Coal (Minerba) of the Ministry of EMR Ridwan Djamaluddin said that the Government and all stakeholders have the same goal in the mineral and coal mining sector, namely to provide maximum benefits for the people.

Cadangan Batubara 24,75 M Ton di 2040, Ini Cara Wujudkan

Ketahanan Energi Alfi Kholisdinuka - detikFinance

DIREKTUR Jenderal Mineral dan Batubara

(Minerba) Kementerian ESDM Ridwan Djamaluddin mengatakan Pemerintah dan seluruh pemangku kepentingan memiliki tujuan yang sama di sektor pertambangan mineral dan batubara, yakni memberikan manfaat yang sebesar-besarnya bagi rakyat.

Daily News Update Page 18

This is because, he said, the mineral and coal mining sector will face several challenges that are not easy. Therefore, Ridwan hopes that the Indonesian Coal Mining Association (APBI) can support the Government in realizing National Energy Security through several efforts.

"The first effort is related to the resilience of coal reserves. Indonesia's coal reserves are still sufficient for the long term. The remaining coal reserves are recorded to reach more than 24.75 billion tons in 2040," he said in a written statement, Tuesday (27/10/2020).

"But of course this is not enough in line with the increasing demand in the future. For this reason, it is necessary to invest in coal exploration to ensure confidence in the right amount of coal reserves," he added during the virtual conference 'Synergize, Energize, Face Pandemic'.

Furthermore, the completion of Imple-menting Regulations for Law Number 3 of 2020 concerning Mineral and Coal Mining. The EMR Ministry, said Ridwan, targets the issuance of this implementing regulation within six months.

"Currently, one of the 3 RPPs has arrived at the harmonization stage, namely the RPP on Business. Meanwhile, the RPP on Territorial and the RPP on Guidance and Supervision is in the process of being completed. We should be grateful, and we have accommodated the input from APBI. This process runs smoothly and does not make it difficult for industry players," he explained.

The next effort is the extension of PKP2B to become IUPK. He said the Government in providing certainty for the extension of PKP2B to become IUPK was carried out based on an evaluation in accordance with the applicable laws and regulations. Next is the increase in the added value of coal.

Sebab, kata dia, sektor pertambangan minerba akan menghadapi beberapa tan-tangan yang tidak mudah. Oleh karenanya, Ridwan berharap Asosiasi Pertambangan Batubara Indonesia (APBI) dapat mendukung Pemerintah mewujudkan Ketahanan Energi Nasional melalui beberapa upaya.

"Upaya pertama terkait ketahanan cadangan batubara. Cadangan batubara Indonesia masih mencukupi untuk jangka panjang. Sisa cadangan batubara tercatat mencapai lebih dari 24,75 miliar ton pada tahun 2040," ujarnya dalam keterangan tertulis, Selasa (27/10/2020).

"Namun tentunya ini belum cukup seiring dengan meningkatnya kebutuhan di masa mendatang. Untuk itu, perlu adanya investasi eksplorasi batubara demi menjamin keyakinan jumlah cadangan batubara yang tepat," imbuhnya saat konferensi virtual 'Bersinergi, Berenergi, Hadapi Pandemi'.

Selanjutnya penyelesaian Peraturan Pelak-sana Undang-Undang Nomor 3 Tahun 2020 tentang Pertambangan Mineral dan Batu-bara. Kementerian ESDM, kata Ridwan, menargetkan penerbitan peraturan pelak-sanaan ini dalam kurun waktu enam bulan.

"Saat ini, satu dari 3 RPP telah sampai pada tahap harmonisasi , yaitu RPP tentang Pengusahaan. Sementara RPP tentang Kewilayahan dan RPP tentang Pembinaan dan Pengawasan sedang dalam proses menuju selesai. Kita patut bersyukur, dan masukan-masukan dari APBI sudah kami akomodasi. Semoga proses ini berjalan lancar dan tidak mempersulit pelaku industri," jelasnya.

Upaya berikutnya adalah perpanjangan PKP2B menjadi IUPK. Dia mengatakan, Pemerintah dalam memberikan kepastian perpanjangan PKP2B menjadi IUPK dilakukan berdasarkan evaluasi sesuai peraturan perundang -undangan yang berlaku. Selanjutnya adalah peningkatan nilai tambah batubara.

Daily News Update Page 19

"In Indonesia, the dominant potential for coal is low calorie. This type of coal will be of economic value if efforts are made to increase added value," he said.

Therefore, he invited APBI to pay attention to the issue of increasing the added value of coal and provide input to the Govern-ment to improve the investment climate for coal downstream.

"For this reason, it is necessary to implement conservation of coal, especially those of low quality in order to secure domestic supply, to increase the added value of coal in the future," he explained.

"Apart from the above, it must be ensured that mining is carried out by paying attention to the fulfillment of environ-mental obligations, implementing 'good mining practices', and of course providing maximum benefits for the communities around the mine and the Indonesian people," Ridwan concluded. (mul/mul)

"Di Indonesia, potensi batubara yang dominan adalah yang berkalori rendah. Jenis batubara ini akan dapat bernilai ekonomis apabila dilakukan upaya peningkatan nilai tambah," ucapnya.

Oleh karena itu, dia mengajak APBI untuk menaruh perhatian terhadap isu peningkatan nilai tambah batubara dan memberikan masukan kepada Pemerintah untuk meningkat-kan iklim investasi hilirisasi batubara.

"Untuk itu perlu diupayakan pelaksanaan konservasi batubara khususnya yang ber-kualitas rendah dalam rangka mengaman-kan pasokan dalam negeri, untuk pening-katan nilai tambah batubara di masa yang akan datang," terangnya.

"Selain hal di atas, harus dipastikan bahwa penambangan dilakukan dengan memper-hatikan pemenuhan kewajiban lingkungan, pelaksanaan 'good mining practice', dan tentunya memberikan manfaat sebesar-besarnya bagi masyarakat sekitar tambang dan rakyat Indonesia," pungkas Ridwan. (mul/mul)

This is Antam's (ANTM) response to the news that there

will be additional shares in Weda Bay

Reporter: Filemon Agung | Editor: Handoyo

PT ANEKA Tambang Tbk (ANTM) is reportedly planning to increase its share ownership in PT Weda Bay Nickel to 40% from the current 10% share.

Quoting Bloomberg, ANTM is reported to have held discussions with a number of parties, including other shareholders in PT Weda Bay.

Ini tanggapan Antam (ANTM) soal kabar bakal tambah saham

di Weda Bay Reporter: Filemon Agung | Editor: Handoyo

PT ANEKA Tambang Tbk (ANTM) di-

kabarkan berniat menambah kepemilikan saham di PT Weda Bay Nickel menjadi sebesar 40% dari porsi saat ini sebesar 10%.

Mengutip Bloomberg, ANTM dikabarkan telah melakukan pembicaraan dengan sejumlah pihak termasuk pemegang saham lain di PT Weda Bay.

Daily News Update Page 20

"ANTM has contacted an investment bank to discuss a potential sale of shares from

Chinese steel giant Tsingshan Holding Group Co, a partner with French mining

company Eramet Group," said a Bloomberg source, quoted on Monday (27/10).

Meanwhile, the plan to add 30% shares is

said to require funds of US$ 300 million.

However, this exploration is said to have just entered the initial stage and there is no

certainty about how much daham will be divested by Tsingshan.

It was confirmed separately, ANTM Senior Vice President Corporate Secretary Kunto

Hendrapawoko was reluctant to respond further to this news.

"Regarding material factual information,

ANTAM will provide information disclosure in accordance with existing

regulations for public companies," said Kunto to Kontan.co.id, Monday (27/10).

He added that his party will continue to

expand the downstream processing of minerals and expand the base of reserves

and resources.

"The company is also open to forming

partnerships with strategic partners based on profitable profitability in developing

downstream projects, both nationally and internationally," explained Kunto.

He continued, the criteria for partners

being targeted were partners who had access to technology and funding for the

development of new processed mineral production from reserves owned by ANTM.

As information, until 2019, ANTAM's nickel

ore reserves were recorded at 353.74 million wmt with nickel ore resources

reaching 1.36 billion wmt.

"ANTM telah menghubungi bank investasi untuk mendiskusikan potensi penjualan saham dari raksasa baja China Tsingshan Holding Group Co, salah satu mitra bersama per-usahaan tambang Prancis Eramet Group," ujar sumber Bloomberg, dikutip Senin (27/10).

Adapun, rencana penambahan 30% saham ini disebut akan membutuhkan dana sebesar US$ 300 juta.

Kendati demikian, penjajakan ini disebut baru memasuki tahapan awal dan belum ada kepastian soal berapa besar daham yang akan didivestasi oleh Tsingshan.

Dikonfirmasi terpisah, Senior Vice President Corporate Secretary ANTM Kunto Hendra-pawoko enggan menanggapi lebih jauh terkait kabar ini.

"Berkaitan dengan informasi fakta material akan diinformasikan oleh ANTAM dengan melakukan keterbukaan informasi sesuai dengan ketentuan yang ada bagi perusahaan terbuka," ujar Kunto kepada Kontan.co.id, Senin (27/10).

Ia menambahkan, pihaknya masih akan terus melakukan ekspansi pada hilirisasi peng-olahan mineral serta perluasan basis cadangan dan sumber daya.

"Perusahaan juga terbuka dalam menjalin kemitraan dengan partner strategis berdasarkan profitabilitas menguntungkan dalam mengembangkan proyek-proyek hilirisasi, baik nasional maupun inter-nasional," jelas Kunto.

Ia melanjutkan, kriteria mitra yang disasar yakni mitra kerja yang memiliki akses terhadap teknologi dan pendanaan untuk pengembangan produksi mineral olahan baru dari cadangan yang yang dimiliki ANTM.

Sekedar informasi, hingga tahun 2019 tercatat posisi cadangan bijih nikel ANTAM sebesar 353,74 juta wmt dengan sumber daya bijih nikel mencapai sebesar 1,36 miliar wmt.

Daily News Update Page 21

Kunto said that the nickel mineral reserves and resources are one of the strengths in the development of the Company's business scale through the downstreaming of nickel minerals which have added value and are claimed to be able to increase positive contributions to the state and society.

As information, the portions of Tsingshan Group and Eramet Group hold 90% shares, where in this joint venture Eramet controls 43% controlling shares and the remaining 57% by Tsingshan Group.

Quoted from the official website of Eramet, the Weda Bay project has a potential of 9.3 million tonnes of nickel content where mining operations have started in Weda Bay in Halmahera, Maluku.

"The first metric tonnes of ferronickel were produced, and 1.6 million nickel ore stocks were formed. Later, this ore will be supplied to ferroalloy factories on the island, including those owned by the Eramet-Tsingshan joint venture," was quoted as saying on the official website of Eramet, Monday (27/10).

In addition, the first ferronickel casting was carried out on April 30, 2020, which is said to be ahead of the initial schedule, which is twenty months after factory construction began.

The four production lines have been operating since May, with ferronickel production reaching 4.2 kilo tons in June 2020.

Eramet explained that apart from the initial developments above, Teluk Weda is expected to open up new opportunities where the team at Eramet is currently conducting a study on nickel production for electric vehicle batteries.

Kunto mengungkapkan, potensi cadangan dan sumberdaya mineral nikel tersebut menjadi salah satu kekuatan dalam pengembangan skala bisnis Perusahaan melalui hilirisasi mineral nikel yang ber-nilai tambah serta diklaim dapat mening-katkan kontribusi yang positif bagi negara dan masyarakat.

Sekedar informasi, porsi Tsingshan Group dan Eramet Group memegang porsi 90% dimana dalam patungan ini Eramet menguasai 43% saham pengendali dan 57% sisanya oleh Tsingshan Group.

Dikutip dari situs resmi Eramet, proyek Weda Bay memiliki potensi 9,3 juta ton kandungan nikel dimana operasi penam-bangan telah dimulai di Teluk Weda di Halmahera, Maluku.

"Metrik ton feronikel pertama diproduksi, dan 1,6 juta stok bijih nikel terbentuk. Nantinya, bijih ini akan disuplai ke pabrik ferroalloy di pulau itu, termasuk yang dimiliki oleh usaha patungan Eramet-Tsingshan," dikutip dari situs resmi Eramet, Senin (27/10).

Selain itu, pengecoran feronikel pertama telah dilakukan pada 30 April 2020 yang disebut lebih cepat dari jadwal awal yakni dua puluh bulan setelah konstruksi pabrik dimulai.

Keempat lini produksi tersebut telah beroperasi sejak Mei, dengan produksi feronikel mencapai 4,2 kilo ton pada Juni 2020.

Pihak Eramet menjelaskan, selain sejumlah perkembangan awal di atas, Teluk Weda diharapkan dapat membuka peluang baru dimana tim di Eramet saat ini disebut sedang melakukan studi tentang produksi nikel untuk baterai kendaraan listrik.

Daily News Update Page 22

Measuring the Fate of Coal in

the Middle of Green Energy Trends

Lorenzo Anugrah Mahardhika

AFTER contracting at the beginning of the

year, the price of coal began to move steadily at the end of 2020. However, in the future, coal prices have begun to be overshadowed by the agenda of a number of countries to switch to more environ-mentally friendly energy sources.

The Commodity Markets Outlook October 2020 report issued by the World Bank

stated that coal prices began to stabilize after correcting more than 20 percent in

the second quarter of 2020. This is inversely proportional to the positive trend

experienced by crude oil and natural gas.

The World Bank stated that the corona

virus pandemic was one of the factors causing the bearish trend in black gold

commodity prices. This has spurred a number of countries to use energy sources

with low emissions such as natural gas or accelerate the use of renewable energy.

"The transfer of power sources has caused

the world coal consumption figure to decline," the report quoted the report on

Tuesday (27/10/2020).

The corona virus pandemic also has an

impact on daily coal production cuts made by exporting countries.

Countries such as Indonesia and the United States have put a brake on coal production,

while production in Colombia has been hampered following protests from mining

workers.

Menakar Nasib Batu Bara di

Tengah Tren Energi Ramah Lingkungan

Lorenzo Anugrah Mahardhika

SETELAH sempat terkontraksi di awal

tahun, harga batu bara mulai bergerak stabil di akhir 2020. Namun, ke depan harga batu bara muai dibayangi agenda sejumlah negara untuk beralih ke sumber energi yang lebih ramah lingkungan.

Laporan Commodity Markets Outlook Oktober 2020 yang dikeluarkan oleh Bank Dunia menyatakan, harga batu bara mulai bergerak stabil setelah terkoreksi lebih dari 20 persen pada kuartal II/2020. Hal tersebut berbanding terbalik dengan tren positif yang dialami oleh minyak mentah dan gas alam.

Bank Dunia menyatakan, pandemi virus corona menjadi salah satu faktor penyebab tren bearish harga komoditas emas hitam ini. Hal ini memacu sejumlah negara untuk menggunakan sumber energi dengan emisi rendah seperti gas alam atau mempercepat penggunaan energi terbarukan.

“Perpindahan sumber tenaga tersebut membuat angka konsumsi batu bara dunia mengalami penurunan,” demikian kutipan laporan tersebut pada Selasa (27/10/ 2020).

Pandemi virus corona juga berdampak pada pemangkasan produksi harian batu bara yang dilakukan oleh negara-negara eksportir.

Negara-negara seperti Indonesia dan Amerika Serikat mengerem produksi batu bara, sementara produksi di Kolombia terhambat menyusul aksi unjuk rasa dari para pekerja tambang.

Daily News Update Page 23

In addition, sentiment from China also played a role in the negative trend in coal prices. As the largest importer of coal in the world, China began imposing restrictions on imports of this commodity since last May amid rising demand and flat output.

"The level of demand for coal in 2020 is likely to fall by up to 7 percent," the report quotes.

Going forward, the World Bank estimates that coal price movements will continue to be affected by the shift in power sources to renewable energy or natural gas. However, high natural gas prices are considered to have a positive impact on coal competitive-ness.

In the short to medium term, the plans of countries to switch to using renewable energy in the midst of the corona virus pandemic will make coal prices sluggish.

"The sharp reduction in costs of using renewable energy, especially solar power, has increased the attractiveness for countries to invest in this area," wrote the World Bank.

Meanwhile, a number of countries have announced plans to achieve carbon emissions of 0 percent. The European Union has launched a plan to reduce carbon emissions to 0 by 2050. A similar plan has been announced by China which targets zero carbon emissions by 2060.

However, the prospect of coal price in the remainder of this year is still considered attractive. The World Bank stated that currently countries are more focused on recovering their respective economies as quickly as possible.

"This can be seen from the stimuli that have been disbursed. The packages are aimed more at using fossil fuels than supporting a green economic recovery,” the report excites.

Selain itu, sentimen dari China juga turut berperan dalam tren negatif harga batu bara. Sebagai importir terbesar batu bara di dunia, China mulai memberlakukan pembatasan impor komoditas ini sejak Mei lalu di tengah tingkat permintaan yang meningkat dan output yang datar.

“Tingkat permintaan batu bara pada 2020 kemungkinan akan turun hingga 7 persen,” demikian kutipan laporan tersebut.

Kedepannya, Bank Dunia memperkirakan pergerakan harga batu bara akan terus terdampak oleh pergeseran sumber tenaga ke energi terbarukan atau gas alam. Meski demikian, harga gas alam yang tinggi dinilai akan berimbas positif terhadap daya saing batu bara.

Dalam jangka pendek hingga menengah, rencana negara-negara untuk berpindah menggunakan energi terbarukan di tengah terjadinya pandemi virus corona akan mem-buat harga batu bara lesu.

“Penurunan biaya yang tajam dari penggunaan energi terbarukan, terutama tenaga surya, telah meningkatkan daya tarik bagi negara-negara untuk berinvestasi di bidang ini,” tulis World Bank.

Adapun sejumlah negara telah mengumumkan rencana untuk mencapai emisi karbon 0%. Uni Eropa telah mencanangkan rencana pengu-rangan emisi karbon hingga 0 pada 2050. Rencana serupa telah diumumkan oleh China yang menargetkan emisi karbon 0 pada 2060 mendatang.

Meski demikian, prospek harga batu bara di sisa tahun ini dinilai masih cukup atraktif. Bank Dunia menyatakan, saat ini negara-negara lebih berfokus untuk memulihkan per-ekonomian masing-masing secepat mungkin.

“Hal tersebut terlihat dari stimulus-stimulus yang telah digelontorkan. Paket-paket tersebut lebih ditujukan pada penggunaan bahan bakar fosil dibandingkan mendukung pemulihan ekonomi yang hijau,” demikian kutipan laporan tersebut.

Daily News Update Page 24

Reporting from Bloomberg, at the close of trading Monday (26/10/2020), the price of

Newcastle coal futures for the January 2021 contract was observed to fall 0.16

percent to the level of US$ 60.90 per ton. At the close of the previous trade, coal prices

strengthened by 0.66 percent.

The price of coal is still experiencing a correction of 16.97 percent year-to-date

(ytd). Meanwhile, over the past six months, the price of this commodity has recorded a

7.5 percent gain.

Separately, Capital Futures analyst Wahyu

Laksono said the issue of shifting the use of alternative energy sources would not

significantly affect the prospect of coal prices in the future. This is because

changing energy sources cannot be done immediately in the short term.

Wahyu explained that, economically, coal is a commodity that is still very important for

the majority of developing countries. In fact, the need for this group of countries

for coal is far greater than that of developed countries whose industrial

activities are already efficient.

"China as the largest coal importer will still survive on coal, especially with high

quality coal," he said when contacted on Tuesday (27/10/2020).

Wahyu projects that the prospect of coal prices is still quite good in the remainder

of 2020 and early 2021. This will be supported by the increase in demand for

these commodities as a number of countries enter winter.

Wahyu explained that entering winter, the demand for thermal coal will reach its

highest point. This will create pressure on coal prices.

Dilansir dari Bloomberg, pada penutupan perdagangan Senin (26/10/2020), harga batu bara Newcastle berjangka untuk kontrak Januari 2021 terpantau turun 0,16 persen ke level US$60,90 per ton. Pada penutupan perdagangan sebelumnya, harga batu bara menguat hingga 0,66 persen.

Harga batu bara telah masih mengalami koreksi sebesar 16,97 persen secara year-to-date (ytd). Sementara itu, selama enam bulan terakhir, harga komoditas ini men-catatkan penguatan 7,5 persen.

Secara terpisah, Analis Capital Futures Wahyu Laksono mengatakan isu pergeser-an penggunaan sumber energi alternatif belum akan terlalu mempengaruhi prospek harga batu bara dalam beberapa waktu ke depan. Pasalnya, perubahan sumber energi tidak dapat langsung dilakukan dalam jangka waktu pendek.

Wahyu menjelaskan, secara ekonomis, batu bara merupakan komoditas yang masih sangat penting bagi mayoritas negara berkembang. Bahkan, kebutuhan kelompok negara tersebut akan batu bara jauh lebih besar dibandingkan dengan negara maju yang kegiatan industrinya sudah efisien.

“China sebagai importir batu bara terbesar juga masih akan bertahan dengan batu bara, terutama dengan batu bara ber-kualitas tinggi,” katanya saat dihubungi pada Selasa (27/10/2020).

Wahyu memproyeksikan, prospek harga batu bara masih cukup baik di sisa tahun 2020 dan awal 2021. Hal ini ditopang oleh kenaikan permintaan komoditas tersebut seiring dengan sejumlah negara memasuki musim dingin.

Wahyu menjelaskan, memasuki musim dingin, permintaan terhadap batu bara thermal akan mencapai titik tertingginya. Hal tersebut akan memunculkan tekanan terhadap harga batu bara.

Daily News Update Page 25

In addition, the prospect of coal prices will also be influenced by the steps taken by China as one of the largest coal producers in the world. According to him, China's policies have indeed been designed in such a way as to encourage an increase in the price of this commodity.

"Several Chinese strategies, such as taking advantage of falling prices to stockpile coal, will trigger a rebound in prices," he explained.

Wahyu predicts that the coal price in the remainder of 2020 will be consolidated in the range of US$ 50 to US$ 60 per ton.

Likewise, the Director of TRFX Garuda Berjangka Ibrahim said that the switch to using alternative sources of energy would not have too much effect on coal prices. The reason is that the transfer of energy sources requires supporting infrastructure and this requires a large cost.

On the other hand, a slowing economy has made state treasuries run short. Providing stimulus for economic recovery is more important than diverting energy sources.

"This issue is probably still temporary in nature," he said.

The coal price movement is likely to decline first. In addition to the uncertainty of the US fiscal stimulus, world coal demand is currently decreasing due to the corona virus pandemic.

Furthermore, the price of this commodity is likely to rise again in line with the prospect of economic recovery in China as one of the largest coal importers in the world.

"Even though China's coal imports have been stopped, this sentiment is still sufficient to move coal prices to around US$ 60 after first dropping to close to US$ 40 per ton," said Ibrahim. Editor: Rivki Maulana

Selain itu, prospek harga batu bara juga akan dipengaruhi oleh langkah-langkah yang dilakukan China sebagai salah satu penghasil batu bara terbesar di dunia. Menurutnya, kebijakan China memang telah dirancang sedemikian rupa guna mendorong kenaikan harga komoditas ini.

“Beberapa strategi China seperti meman-faatkan harga yang turun untuk menimbun batu bara sehingga nantinya akan memicu rebound harga,” jelasnya.

Wahyu memprediksi, harga batu bara di sisa tahun 2020 akan terkonsolidasi di kisaran US$50 hingga US$60 per ton.

Senada, Direktur TRFX Garuda Berjangka Ibrahim mengatakan, peralihan penggunaan sumber tenaga alternatif belum akan terlalu berpengaruh terhadap harga batu bara. Pasalnya, pengalihan sumber energi mem-butuhkan infrastruktur pendukung dan hal itu membutuhkan biaya besar.

Di sisi lain, perekonomian yang melambat membuat kas negara cekak. Pemberian sti-mulus untuk pemulihan ekonomi menjadi lebih penting ketimbang pengalihan sumber energi.

“Isu ini kemungkinan sifatnya masih semen-tara saja,” katanya.

Pergerakan harga batu bara kemungkinan akan mengalami penurunan terlebih dahulu. Selain ketidakpastian stimulus fiskal AS, permintaan batu bara dunia pada saat ini juga tengah menurun karena pandemi virus corona.

Selanjutnya, harga komoditas ini kemung-kinan akan kembali naik seiring dengan prospek pemulihan ekonomi di China sebagai salah satu importir batu bara terbesar di dunia.

“Walaupun impor batu bara China dihenti-kan, tetapi sentimen ini masih cukup untuk menggerakkan harga batu bara di kisaran US$60 setelah turun terlebih dahulu men-dekati US$40 per ton,” tukas Ibrahim. Editor : Rivki Maulana

Daily News Update Page 26

Nickel surplus looms as electric vehicle buzz fades Reuters

THE LONDON Metal Exchange (LME) nickel price last week touched a year-to-date high of $16,135 per tonne.

Nickel bulls would love to believe this is all about rising usage in lithium-ion batteries for electric vehicles. The EV story has generated a tangible buzz in the nickel market over the last two years with Tesla’s Elon Musk recently fanning the flames with his call for more mines to meet demand for electrification.

However, the reality is that the recent rally is much more about that most traditional of price drivers, namely the supply of nickel ore to China’s giant stainless steel sector.

Such old-school dynamics are going to push the global market into a period of over-supply this year and next, according to the latest forecasts from the International Nickel Study Group (INSG).

The EV narrative, for now at least, is stuck in the slow lane.

All about ore

The key metric to understanding the recent nickel price rally is the cost of nickel ore, according to analysts at Citi.

The Philippines has emerged as the main supplier of raw material to China’s nickel pig iron (NPI) producers since Indonesia banned exports at the start of this year.

Daily News Update Page 27

The price of medium-grade Philippine ore has doubled over the course of this year to a current $74 per tonne, according to Chinese research house Custeel.

That in turn feeds directly into higher costs for the NPI producers that supply China’s stainless steel mills.

The Indonesian ore ban is reaching “its climax” with Chinese stocks falling to “critical levels” and the Philippines heading into the monsoon season, which limits mining activity, Citi said.

The bank has a “bull-case” price target of $17,000 per tonne in the fourth quarter of this year but “from these highs we would be ready to flip cautious-bearish.”

That’s because China’s NPI production is declining as the supply chain migrates to Indonesia, which implemented its ore ban to force miners to upgrade to value-added products such as NPI.

This year “likely marks the last year when China will produce more NPI than Indonesia,” agrees JPMorgan.

The transition will see flows of Indonesian NPI become the dominant trade for Chinese stainless production.

Philippine ore prices will likely revert back to historical norms of around $35 per tonne which “will depress costs of marginal Chinese NPI smelters to around $13,000/t, thus removing the cost support for spot nickel prices,” JPMorgan said. (“Metals Weekly”, Oct. 26 2020)

Surplus ahead

Such traditional nickel price drivers, particularly the strength of global stainless steel output, will dominate the market for a while yet.

Global output of stainless steel fell by 9.4% in the first half of this year and will fall over the year as a whole despite a rebound in China, the INSG said.

Next year should be a year of recovery but by how much is very uncertain outside of China, where the consensus is for this year’s V-shaped recovery to level out.

Global nickel production, by contrast, has been relatively unscathed by the lockdowns that have hit other industrial metals and will grow strongly next year as Indonesia’s reconfigured nickel production sector ramps up.

The INSG now sees world output of primary metal at 2.436 million tonnes this year, a marginal 40,000-tonne reduction from the Group’s last forecast in October 2019. Production growth will accelerate from 2.3% this year to 6.2% next year.

The Group therefore expects the refined nickel market to register supply surpluses of 117,000 tonnes this year and another 68,000 tonnes in 2021.

These will be the first years of excess supply since 2015.

EV slow lane

What then of nickel’s EV story?

It seems to be losing some of its traction, according to LME broker Marex Spectron.

Daily News Update Page 28

Interest in nickel and electric vehicles peaked early in October and “has reversed noticeably since then”, according to what the company calls its “Nowcast”, a series of algorithms that trawl the web to monitor around a billion text documents per year for references between specific commodities and market themes.

“This begs the question of whether the recent reversal in EV Market Focus portends a declining interest in the key demand story for the metal,” Marex said. (“Quantamental Update – Has the focus on EV as a key nickel demand driver peaked?”, Oct. 26, 2020).

This might seem counter-intuitive given all the headlines generated by Musk’s call for more nickel mines.

But covid-19 has laid low the entire automotive sector, even if EV production is bouncing back more strongly than conventional vehicles as governments prioritise “green” investment in their recovery plans.

Electric vehicles currently account for less than 5% of total nickel usage and the fear, to quote Macquarie Bank analysts, is the coronavirus will translate into “two lost years for the electric vehicle market, pushing back the requirements for new nickel supply (…) all the way out to 2025.”

This theme of deferred expectations has been playing out across the battery metals space, witness this week’s news that Australian hard-rock lithium miner Altura Mining has entered receivership due to low prices for its spodumene product.

Nickel’s role in the EV revolution has also taken something of a dent from Tesla itself, which is using non-nickel batteries in its Model 3 cars in China. The switch to lithium-iron-phosphate batteries reduces costs but also reflects technical enhancements to a product that was regarded as legacy technology just a year ago.

It is becoming clear that battery design is not going to be a binary competition such as the much-cited 1980s battle between Betamax and VHS in video-taping. Rather, multiple technologies will co-exist to feed a differentiated global market for vehicle functionality.

This is not to say that EVs won’t be a critical component of the nickel market going forwards, just that the relationship between sales growth and nickel usage may not be as linear as previously thought.

Nickel bulls may have to defer their great EV expectations for a while yet and focus on what is happening in the currently far more significant stainless steel sector. If the INSG is right, it could be a bumpy ride. (Editing by David Evans)

Metso Outotec to bring HRC benefits to other OEM’s HPGRs Posted by Daniel Gleeson

METSO Outotec says it is launching the mechanical skew control HPGR (High Pressure

Grinding Roll) retrofit kit for improved throughput and energy efficiency on the heels of its new HRC™e HPGR release.

Daily News Update Page 29

The HRC HPGR was launched back in 2014 pioneering the use of flanges and non-skewing design and, now, those same benefits can be had on existing, non-Metso Outotec machines, the company says.

The new HPGR retrofit kit takes the key components responsible for minimising skew from the HRC and makes the technology more accessible without the major investment or need to acquire a new machine, according to the company.

“We are very excited to introduce the new flanged roll with mechanical skew control HPGR retrofit kit, which allows customers to maximise the performance of their existing equipment without the capital expenditure investment of purchasing expansion machines,” Jack Meegan, Product Director, SVS, Stirred Mills and HPGR at Metso Outotec, says. “This is truly a value option for an extended customer reach.”

Key benefits of Metso Outotec HPGR retrofit kit include the ability to increase throughput by up to plus-20%; improved energy efficiency with the flanges ensuring even breakage rates across the whole width of the roll; reduced circulating loads as less material bypasses the rolls and more ore continues to the next stage of the process; and reduced wear costs with the flanges allowing harder studs for longer tire life.

Critical copper negotiations point to a tight market By: Bloomberg

AS Freeport McMoRan hammers out next year’s benchmark deal for the copper industry, the

coronavirus has complicated negotiations but also given the miner an edge.

Gone is an ice-breaking reception for key customers that Freeport’s Javier Targhetta hosted for more than two decades during London Metal Exchange Week. For the past few years, that’s seen CEO Richard Adkerson serenade hundreds of guests as they dined on champagne and paella at a Park Lane hotel.

While virtual talks are proceeding more slowly than traditional face-to-face meetings, senior VP of marketing and sales Targhetta is targeting similar contractual terms to this year. That’s partly because the pandemic is stoking market uncertainty and keeping mine supply tight, a central pillar in copper’s rebound to a two-year high above $7 000 a ton last week.

“We definitely see a continuing deficit of concentrate in the market,” said Targhetta, referring to the mined ores extracted by Freeport and other producers. “I’d look at a small number plus or minus,” compared with the current benchmark, he said.

Even before the pandemic, tight supply for concentrates had enabled Freeport to strike deals for 2020 that offered the lowest processing fees in nine years.

This year, the supply of copper from mines in South America was hit hard by the pandemic, while imports into China reached record levels as the country’s economy rebounded. While negotiations for 2021 are at an early stage, a projected deficit for concentrates means Freeport doesn’t expect to see any major changes in the treatment and refining charges it pays smelters to turn mined ores into metal, Targhetta said.

Daily News Update Page 30

As the world’s largest listed copper miner, the deals Freeport signs with its Asian customers typically set the benchmark for the rest of the industry, and negotiations are closely watched by investors as a barometer for supply and demand for the coming year.

Even without the bonhomie of LME Week’s gala dinners and after-parties, one tradition appears to have remained intact: many in the industry finished the week feeling more bullish on copper’s prospects than they were at the start.

“After a week full of virtual meetings, our bullish view on copper first established in April and reaffirmed in August hasn’t changed,” JPMorgan Chase & Co. analysts said in an emailed note, forecasting that prices could hit $7 500 in the second quarter of 2021. “While there were some disagreements around the price targets during our calls, we concluded that this constructive view on copper seems to be consensus by now.”

Higher prices should provide an incentive for miners to maximize output next year, potentially alleviating some of the strain on supply, Freeport’s Targhetta said.

While he expects that changes in next year’s processing fees will be small, smelters are pressing for a more significant increase to shore up their margins. The head of Aurubis, Europe’s largest copper producer, said treatment and refining charges are unjustifiably low.

“It’s difficult to say what will happen for next year, but for me one thing is clear: this level is not the right level,” Roland Harings said in an interview.

Harings said he’s looking forward to the day when the industry will be able to iron out such commercial differences face-to-face again. He may cut back on travel, but big industry events like LME Week are still going to play a vital role, he said.

On that, Freeport’s Targhetta agrees.

“It’s always difficult, but now it’s much more difficult,” he said, referring to ongoing negotiations. “I’m just looking forward to everyone getting back to normal, and for the pandemic to be over.”

Canada's Teck sees higher China met coal sales as Australia hit by import curbs

Author: Hector Forster, Editor: Tom Balcerek

TECK, the world's second-largest seaborne coking coal miner, is seeing stronger-than-

expected met coal demand in China, after authorities reportedly warned buyers to cool off buying Australian coals.

China has not clarified its coal import restrictions, with no official announcements, and it appears the measures are mainly directed toward Australian coals, Teck's senior vice president of marketing and logistics, Real Foley, told analysts in a quarterly update.

Daily News Update Page 31

"We are starting to see a few sales to China above original expectations and that is coinciding well with our operations ramping up through the quarter," Foley said.

China's coal and port quotas may be "reset" at the start of 2021, he added, which may allow

the seaborne market to normalize before long.

BHP, which is the largest seaborne coking coal supplier through joint ventures in Queensland with Mitsubishi Corp. and Mitsui & Co, said Oct. 14 it had customers defer some coal

shipments to China. After strong first-half trade volumes, Chinese customs data showed Australian coking coal imports this year surpassed the 2019 total in August, with a further

1.98 million mt imported in September.

"If Chinese steelmakers become pinched for steelmaking coal, they could very well continue

looking to the seaborne market for more supply from regions other than Australia, and that could very well continue to push the price up," he added.

China's steel production has been running at record levels and boosting demand, and Teck

estimates around 45 million-50 million mt of met coal is currently in the supply chain in China, about four weeks worth based on current demand, he said.

Shipments from Mongolia to China in September have risen to a record pace – 3.89 million mt

in September, up 26.6% month on month and 8.37% year on year, based on customs data – which may be hard to maintain, while around 6 million mt of met coal is lying in vessel

queues, waiting to discharge, Teck said.

Met coal output from Australia, the US, Canada and Mozambique combined is around 20

million mt lower this year on 2019, with imports from Mongolia potentially ending the year 6 million mt below 2019 even if Mongolia keeps up its current pace, Foley said.

China domestic production of coal is expected to be unchanged for 2020, at around 480

million mt, with more safety and environment inspections and compliance in the market, he added.

Teck produced 5.1 million mt of met coal in Q3, down 22% from a year earlier, and plans to

produce around 5.9 million-6.9 million mt in Q4, based on company guidance. Teck maintains 26 million-27 million mt/year of met coal production capacity through four mining

complexes, with more limited production flexibility to boost output, after recently closing a mine.

Teck is preparing mines and supply chains to start 2021 "quite strong," with the ability to meet full production if demand allows, Teck's senior vice president for coal, Robin Sheremeta,

said on the call. The company indicated stronger demand outside China as inquiries picked up since August and blast furnaces restarted.

Teck's Q3 met coal sales averaged $102/mt FOB, or 88.9% of the Platts PLV FOB Australia

index average over Q3, with low sales prices contributing to tighter margins.

Daily News Update Page 32

Dacian moves forward on underground mining strategy Nickolas Zakharia

DACIAN Gold has completed the first phase of an underground diamond drilling program at

its Westralia underground mine, part of the Mt Morgans gold operation in Western Australia.

The company recovered 60,317 tonnes at 4.5 grams per tonne of gold from previously developed stopes at the Westralia during the September quarter, after the mine was placed on care and maintenance at the end of August.

The drilling program aimed to infill ore blocks that are currently identified as inferred mineral resource, with drilling interpretation and estimation to be announced ahead of mining study work.

In total, Dacian recovered 32,799 ounces of gold at the Mt Morgans gold operation in the September quarter, as the company’s managing director Leigh Junk acknowledged the successful quarter.

“Momentum is building with this good start to the financial year. Our operations delivered in line with expectations and our exploration team are having success, particularly the recent results at Mt Marven which look extremely encouraging,” he said.

“Our restructured hedge book now better aligns with our production profile which will provide more cash to the business for the remainder of the financial year due to increased participation in higher spot prices. We look forward to building on these outcomes for the remainder of the year.”

The company has now completed infill and expansionary drilling programs at the Mt Marven, Phoenix Ridge and Mckenzie Well deposits, and is anticipating further drilling results in the December quarter.

The Mt Marven open pit’s drilling program included intercepts of 3 metres at 21.69 grams per tonne of gold from 27 metres, and is aiming to test future open pit potential.

Dacian’s Cameron Well project has also commenced and is ongoing, with results due later in the 2021 financial year.

August US utility coal stockpiles total 129 million st, nine-month low: EIA Author: Olivia Kalb, Editor: Jennifer Pedrick

US utility coal stockpiles totaled over 129 million st in August, down 6.5% from July, Energy

Information Administration data showed late Oct. 26.

Daily News Update Page 33

It was the third consecutive month of dropping stockpiles and the lowest level of inventory in nine months.

Year on year, stockpiles were up 17.1%, but compared with the five-year average of 134 million st for August, they were down 3.5%.

Bituminous stockpiles totaled 50.8 million st, down 5.5% from July and up 1.9% from the year-ago month. Bituminous inventory was also at its lowest in 12 months. The five-year average for August was 57.6 million st, leaving the most recent month at an 11.9% deficit.

Days of burn for utility bituminous inventory

was 125 in August, flat month on month. The year-ago days of burn period was 105 days, and the five-year average was 90 days.

Subbituminous stockpiles totaled 74.3 million st in August, reaching a nine-month low. From the month before, inventory was down 7%, and year on year, it increased 28.1%. Compared with a five-year average of 73.1 million st for August, subbituminous utility stockpiles were up 1.7%.

Days of burn for subbituminous coal at US utilities was 104 days, down one day from July and up 30 days from the year-ago month. The five-year average for August was 77 days.

Lignite stockpiles in August were over 4.3 million st, down 0.7% from July and up 93.7% from the year-ago month.