IMA-Daily Update Page 1

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The Projection of 2020 Coal DMO Needs is Only 80 Percent of the Target Kebutuhan DMO Batu Bara 2020 Diproyeksi Hanya 80 Persen dari Target Gold Prices Continue to Rise, Here's Merdeka Copper's Business Strategy Harga Emas Gacor Terus, Begini Strategi Bisnis Merdeka Copper Bukit Asam's coal transportation capacity is 20 million tons/year Kapasitas Angkutan Batu Bara Bukit Asam 20 Juta Ton/Tahun Second Quarter Performance Improves, Aneka Tambang (ANTM)'s Outlook Increases to Stable Kinerja kuartal kedua membaik, outlook Aneka Tambang (ANTM) naik jadi stabil Merdeka Copper Gold (MDKA) is ready to spend US$ 50 million for expansion Merdeka Copper Gold (MDKA) Siap Rogoh Kocek US$50 Juta untuk Ekspansi Indominco Mandiri Hand Over DAS Rehabilitation Area of 3,040 Hectares Indominco Mandiri Serahkan Area Rehabilitasi DAS 3.040 Hektar Gold Mine Surface Cracked, Merdeka Copper Gold (MDKA) Recalculate Production Target Permukaan tambang emas retak, Merdeka Copper Gold (MDKA) hitung ulang target produksi MEMR Claims Coal Producers Fulfill DMO Obligations ESDM Mengklaim Produsen Batu Bara Penuhi Kewajiban DMO Coal Approaches to Highest Prices in August, What's This Sign? Batu Bara Dekati Harga Tertinggi Agustus, Tanda Apa Ini?

Bisnis CNBC Indonesia Investor Daily Kontan Bisnis Dunia Energi Kontan Bisnis CNBC Indonesia

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Freeport does not want to be 'distracted' by buyout offers, CFO says Metso Outotec wins two orders for high-capacity copper anode casting shops Coal exporters should brace for disappointment Ivanhoe’s Congo mine productivity peerless among copper giants Australian coal mines to struggle to replace domestic demand Alberta coal production falls to over 12-year low in July

Reuters Metal Mining News Asia Times Mining.com Kallanish Energy S&P Global Platts

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The Projection of 2020 Coal DMO Needs is Only 80 Percent

of the Target Denis Riantiza Meilanova

THE MINISTRY of Energy and Mineral

Resources has revised the projected absorption of coal supply for domestic needs or the domestic market obligation until the end of the year to only reach 80.64 percent of this year's target.

EMR Minister Arifin Tasrif said that by December 2020, the coal DMO absorption was projected to only reach 125 million tons from the original target set at 155 million tons.

Previously, the Ministry of EMR had estimated that DMO absorption could reach 141 million tons by the end of this year.

"The Covid-19 pandemic has a negative effect on the use of coal for domestic purposes," he said at the event The 5th Save Indonesian Coal 2020 Perhapi, Monday (14/9/2020).

The decline in the use of domestic coal, said Arifin, was mainly due to the reduction in coal consumption by PT PLN (Persero) from the initial plan of 109 million tons to 95.6 million tons by December 2020.

"The same thing is also experienced by other domestic industries, such as cement, textiles and paper. Meanwhile, the use of coal for the mineral processing industry is relatively increasing," he said.

Until July 2020, realization of DMO absorption has reached 73 million tons or 47 percent of the target so far this year.

Kebutuhan DMO Batu Bara 2020 Diproyeksi Hanya 80

Persen dari Target Denis Riantiza Meilanova

KEMENTERIAN Energi dan Sumber Daya

Mineral merevisi proyeksi serapan pasokan batu bara untuk kebutuhan dalam negeri atau domestic market obligation hingga akhir tahun hanya akan mencapai 80,64 persen dari target tahun ini.

Menteri ESDM Arifin Tasrif mengatakan bahwa sampai dengan Desember 2020, serapan DMO batu bara diproyeksikan hanya mencapai 125 juta ton dari target semula yang dipatok sebesar 155 juta ton.

Sebelumnya, Kementerian ESDM sempat memperkirakan serapan DMO dapat mencapai 141 juta ton hingga akhir tahun ini.

"Pandemi Covid-19 berpengaruh negatif terhadap penggunaan batu bara untuk kepentingan dalam negeri," ujarnya dalam acara The 5th Save Indonesian Coal 2020 Perhapi, Senin (14/9/2020).

Menurunnya penggunaan batu bara dalam negeri tersebut, kata Arifin, terutama disebabkan oleh berkurangnya konsumsi batu bara oleh PT PLN (Persero) dari semula direncanakan sebesar 109 juta ton menjadi 95,6 juta ton sampai dengan Desember 2020.

"Hal yang sama juga dialami oleh industri dalam negeri lainnya, seperti semen, tekstil, dan kertas. Sementara itu, peng-gunaan batu bara untuk industri peng-olahan mineral relatif meningkat," katanya.

Hingga Juli 2020, realisasi serapan DMO telah mencapai 73 juta ton atau 47 persen dari target sepanjang tahun ini.

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The biggest demand for coal for domestic purposes is for PLN's power plants, reaching 70 percent of the total domestic coal demand. The remaining 11 percent is needed for the processing and refining industry, 10 percent cement, 4 percent paper, 4 percent textiles, and 1 percent fertilizer.

Previously, at the end of June 2020, the Director of Coal Business Development at the Ministry of EMR, Sujatmiko, projected that DMO absorption would only reach 141 million tons from the original target set at 155 million tons. Editor: Zufrizal

Kebutuhan batu bara untuk kepentingan dalam negeri yang paling besar adalah untuk pembangkit listrik PLN, yakni men-capai 70 persen dari total kebutuhan batu bara dalam negeri. Sisanya, dibutuhkan untuk industri pengolahan dan pemurnian sekitar 11 persen, semen 10 persen, kertas 4 persen, tekstil 4 persen, dan pupuk 1 persen.

Sebelumnya, pada akhir Juni 2020, Direktur Pembinaan Pengusahaan Batubara Kemen-terian ESDM Sujatmiko memproyeksikan serapan DMO hanya mencapai 141 juta ton dari target semula yang dipatok sebesar 155 juta ton. Editor : Zufrizal

Gold Prices Continue to Rise, Here's Merdeka Copper's

Business Strategy Syahrizal Sidik, CNBC Indonesia

SARATOGA Group's gold mining company,

PT Merdeka Copper Gold Tbk (MDKA), estimates that the upward trend in world gold prices will continue going forward.

Merdeka Copper Gold Corporate Secretary Adi Adriansyah Sjoekri said that gold was sought after by investors as a safe haven asset when market conditions were volatile.

"Many analysts expect this trend to continue. There are several factors, including quantitative easing," Adi said, in his annual online public expose, Tuesday (9/15/2020).

Merdeka Copper also refers to research by investment bank company from the United States, Merrill Lynch, which projects that in the next 18 months, the world price of gold can reach the level of US$ 3,000 troy/ounce. It rose significantly from...

Harga Emas Gacor Terus, Begini Strategi Bisnis Merdeka Copper

Syahrizal Sidik, CNBC Indonesia

EMITEN pertambangan emas Grup Saratoga,

PT Merdeka Copper Gold Tbk (MDKA) mem-perkirakan tren kenaikan harga emas dunia akan terus berlanjut ke depan.

Sekretaris Perusahaan Merdeka Copper Gold Adi Adriansyah Sjoekri mengatakan, emas diburu investor sebagai aset safe haven (aset aman investasi) saat kondisi pasar sedang bergejolak.

"Banyak analis memperkirakan tren ini akan terus berlanjut. Ada beberapa faktor, ter-masuk pelonggaran kuantitatif," kata Adi, dalam paparan publik tahunan secara daring, Selasa (15/9/2020).

Merdeka Copper juga mengacu pada riset perusahaan bank investasi asal Amerika Serikat, Merrill Lynch yang memproyeksikan dalam 18 bulan ke depan, harga emas dunia bisa menyentuh level US$ 3.000 troy/ons. Naik cukup signifikan dari...

IMA-Daily Update Page 5

It rose significantly from the position in mid-August and the world gold price reached US$ 2,000 troy/ounce.

Facing a pandemic situation, the company codenamed MDKA will focus on maintain-ing the company's business fundamentals.

"The company understands that through-out the first half of 2020 and for some time to come, the Covid-19 pandemic will continue to be a challenge and affect the national economy," Adi continued.

This is reflected in MDKA's financial performance in the first half of this year, the company's net profit was depressed by 9.43% on an annual basis to US$ 38.26 million (Rp 566.32 billion, assuming an exchange rate of Rp 14,800/US$) from the acquisition in the previous year. amounting to US$ 45.25 million.

However, the company's revenue increased by 3.7 percent to US$ 199 million or Rp 2.95 trillion from US$ 192 million. MDKA gold production reached 108,823 ounces and copper 2,926 tons.

"The company increases long -term productivity by developing existing assets as well as new assets," he said.

To date, MDKA operates two production mining assets, the Tujuh Bukit gold mine (PT Bumi Suksesindo/BSI) and the Wetar copper mine (PT Batutua Kharisma Permai/BKP and PT Batuatua Tembaga Raya/BTR), as well as developing three projects, among others, Tujuh Bukit Copper Project (PT Bumi Suksesindo/BSI), JV Pani Gold Project (JV MDKA and J Resources).

Furthermore, the Wetar/Morowali Acid Iron Metal (AIM) Project (JV MDKA and Eternal Tsingshan Group Limited (Tsingshan), as well as acting as a mining service provider through PT Merdeka Mining Servis (MMS).

Naik cukup signifikan dari posisi per-tengahan Agustus lalu harga emas dunia mencapai US$ 2.000 troy/ons.

Menghadapi situasi pandemi, perusahaan bersandi MDKA ini akan fokus menjaga fundamental bisnis perseroan.

"Perseroan memahami bahwa sepanjang paruh pertama 2020 dan untuk beberapa waktu ke depan, pandemi Covid-19 masih akan terus menjadi tantangan serta ber-pengaruh pada perekonomian nasional," lanjut Adi.

Hal ini terefleksi dari kinerja keuangan MDKA pada paruh pertama tahun ini, laba bersih perseroan tertekan 9,43% secara tahunan menjadi US$ 38,26 juta (Rp 566,32 miliar, asumsi kurs Rp 14.800/US$) dari perolehan di tahun sebelumnya sebesar US$ 45,25 juta.

Meski demikian, pendapatan perseroan mengalami kenaikan sebesar 3,7% menjadi US$ 199 juta atau Rp 2,95 triliun dari US$ 192 juta. Produksi emas MDKA mencapai 108.823 ounces dan tembaga 2.926 ton.

"Perseroan meningkatkan produktivitas jangka panjang dengan mengembangkan aset-aset yang sudah ada maupun aset baru," katanya.

Sampai saat ini, MDKA mengoperasikan dua aset tambang produksi, tambang emas Tujuh Bukit (PT Bumi Suksesindo/BSI) dan tambang tembaga Wetar (PT Batutua Kharisma Permai/BKP dan PT Batuatua Tembaga Raya/BTR), serta mengembang-kan tiga proyek, antara lain, Proyek Tembaga Tujuh Bukit (PT Bumi Suksesindo/BSI), Proyek Emas Pani JV (JV MDKA dan J Resources).

Selanjutnya, Proyek Acid Iron Metal (AIM) Wetar/Morowali (JV MDKA dan Eternal Tsingshan Group Limited (Tsingshan), serta bertindak selaku penyedia jasa pertambangan melalui PT Merdeka Mining Servis (MMS).

IMA-Daily Update Page 6

"The Tujuh Bukit Copper Project, with a copper production potential of 70,000 - 90,000 tons and gold 200,000 - 300,000 ounces per year for more than 20 years," he concluded.

From the development of the Gold Pani project, MDKA has the potential to produce more than 250,000 ounces of gold per year for more than 15 years.

Meanwhile, the AIM project has the potential to generate revenues of more than US$ 200 million per year for 20 years with a feasibility study targeted for completion in Q4 2020.

For information, gold today, Tuesday (15/9/2020) at 17:02 WIB, was trading at the level of US$ 1,963.93 / troy ounce, with an all-time high of US$ 2,072.49/troy ounce which was reached at 7 Last August.

Meanwhile, silver was traded in the range of US$ 27.37/ounce, with a record high of US$ 49.51/ounce which was reached on April 28, 2011. (tas/tas)

"Proyek Tembaga Tujuh Bukit, dengan potensi produksi tembaga sebesar 70.000 - 90.000 ton dan emas 200.000 - 300.000 ounces per tahun untuk lebih dari 20 tahun ke depan," pungkasnya.

Dari pengembangan dari proyek Emas Pani, MDKA berpotensi memproduksi emas lebih dari 250.000 ounces per tahun lebih selama dari 15 tahun.

Sementara itu, proyek AIM berpotensi menyumbang pendapatan lebih dari US$200 juta per tahun selama 20 tahun dengan studi kelayakan ditargetkan akan selesai pada Kuartal IV-2020.

Untuk diketahui emas pada hari ini, Selasa (15/9/2020) pukul 17:02 WIB, diper-dagangkan di level US$ 1.963,93/troy ons, dengan rekor tertinggi sepanjang masa US$ 2.072,49/troy ons yang dicapai pada 7 Agustus lalu.

Sementara perak diperdagangkan di kisaran US$ 27,37/ons, dengan rekor tertinggi US$ 49,51/ons yang dicapai pada 28 April 2011. (tas/tas)

Bukit Asam's coal transportation capacity is 20 million tons/year

Nabil Alfaruq (nabil.alfaruq@beritasatumedia.com)

PT BUKIT Asam Tbk (PTBA) has recently

collaborated with PT Pelabuhan Indonesia (Pelindo). This cooperation was signed on September 11, 2020.

Bukit Asam corporate secretary Apollonius Andwie C said the cooperation with Pelindo II was carried out to develop the capacity of transporting coal and other commodities through rivers and ports in South Sumatra. This action was inaugurated by the company last Friday.

Kapasitas Angkutan Batu Bara Bukit Asam 20 Juta Ton/Tahun

Nabil Alfaruq (nabil.alfaruq@beritasatumedia.com)

PT BUKIT Asam Tbk (PTBA) baru-baru ini telah

melakukan kerja sama dengan PT Pelabuhan Indonesia (Pelindo). Kerja sama ini telah di-tandatangani pada tanggal 11 September 2020.

Sekretaris perusahaan Bukit Asam Apollonius Andwie C mengatakan, kerja sama dengan Pelindo II tersebut dilakukan untuk pengem-bangan kapasitas angkutan batu bara dan komoditas lainnya melalui sungai dan pelabuhan di Sumatera Selatan. Aksi ini telah diresmikan oleh perseroan pada Jumat pekan lalu.

IMA-Daily Update Page 7

"With this cooperation, we see that there is a potential to increase the company's coal transportation capacity by up to 20 million tons per year," Apollonius told Investor Daily in Jakarta, Tuesday (15/9).

As is known, the company's coal transpor-tation capacity until the first semester of 2020 has reached 11.7 tons. Meanwhile, the target for this year is that the company has revised its coal transportation target to 23 million tons, this is done in response to the decline in demand for coal supply in the market caused by the Covid-19 pandemic. Meanwhile, the company obtained coal transportation at the end of last year amounting to 24.2 million tons.

In addition, the company is currently in the process of a limited review for its first semester 2020 financial performance. Apollonius said that in the first quarter of 2020, Bukit Asam had posted a net profit of Rp 903.24 billion.

"The company's performance is stil l positive and can make a profit. We hope that the economic recovery can be faster so that demand and coal prices can get back to normal," he said.

Regarding the Large-Scale Social Restrictions (PSBB) policy which was carried out again in Jakarta, Apollonius responded that so far there have been no obstacles given to the company, because the company's office in Jakarta is a representative office whose business processes are mostly administra-tive in nature and work activities can be carried out. carried out from the residence of each employee.

Market expansion

As for this year, Bukit Asam plans to sell coal to several new countries, such as Brunei Darussalam, Vietnam and Australia. This expansion into new markets is carried out to anticipate a decline in sales to major destination countries affected by Covid-19.

“Dengan adanya kerjasama tersebut, kami melihat terdapat potensi untuk meningkatkan kapasitas angkutan batu bara perseroan sampai dengan 20 juta ton per tahun,” ujar Apollonius kepada Investor Daily di Jakarta, Selasa (15/9).

Sebagaimana diketahui, kapasitas pengang-kutan batu bara perseroan hingga semester I-2020 mencapai 11,7 ton. Sedangkan target untuk tahun ini, perseroan telah melakukan revisi target angkutan batu bara menjadi 23 juta ton, hal ini dilakukan karena menyikapi adanya penurunan permintaan pasokan batu bara di pasar yang disebabkan oleh pandemi Covid-19. Sedangkan peroleh angkutan batu bara di akhir tahun lalu perseroan mem-peroleh sebesar 24,2 juta ton.

Selain itu, perseroan saat ini tengah dalam proses limited review untuk kinerja keuangan semester I-2020. Apollonius menyampaikan bahwa di kuartal I-2020 Bukit Asam telah mencetak laba bersih sebesar Rp 903,24 miliar.

“Kinerja perseroan masih positif dan bisa mencetak laba. Kami mengharapkan pemulihan ekonomi bisa lebih cepat agar permintaan dan harga batu bara bisa kembali membaik,” ujar dia.

Terkait dengan kebijakan Pembatasan Sosial Berskala Besar (PSBB) yang dilakukan kembali di Jakarta, Apollonius menanggapi bahwa sejauh ini tidak ada kendala yang diberikan kepada perseroan, sebab kantor perseroan yang ada di Jakarta adalah kantor perwakilan yang proses bisnisnya sebagian besar bersifat administratif dan aktifitas pekerjaannya dapat dilakukan dari kediaman masing-masing pegawai.

Perluasan pasar

Adapun tahun ini, Bukit Asam berencana menjual batu bara ke beberapa negara baru, seperti Brunei Darussalam, Vietnam dan Australia. Ekspansi ke pasar baru ini di-lakukan untuk mengantisipasi penurunan penjualan ke negara tujuan utama yang terkena dampak Covid-19.

IMA-Daily Update Page 8

In the first semester of 2020, export sales reached 5.2 million tons. The total export reached 41.4% of total sales which reached 12.5 million tonnes as of June 2020. Meanwhile, domestic coal sales were still the company's priority with a share of 58.6% or around 7.3 million tonnes.

From the production side, the company projects coal production to reach 25 million tons this year. As of June 2020, there were 11.9 million tons. Then the coal transportat ion capacity reached 11.7 million tons in the same period. Editor: Gora

Kunjana (gora_kunjana@investor.co.id)

Pada semester I-2020, penjualan ekspor mencapai 5,2 juta ton. Jumlah ekspor tersebut mencapai 41,4% dari penjualan keseluruhan yang mencapai 12,5 juta ton hingga Juni 2020. Sementara untuk pen-jualan batu bara domestik masih menjadi prioritas perusahaan dengan porsi sebanyak 58,6% atau sekitar 7,3 juta ton.

Dari sisi produksi, perseroan memproyeksi produksi batubara sebanyak 25 juta ton tahun ini. Hingga Juni 2020, tercatat sebanyak 11,9 juta ton. Kemudian kapa-sitas angkutan batu bara mencapai 11,7 juta ton di periode yang sama. Editor : Gora Kunjana (gora_kunjana@investor.co.id)

Second Quarter Performance Improves, Aneka Tambang

(ANTM)'s Outlook Increases to Stable

Reporter: Akhmad Suryahadi | Editor: Herlina Kartika Dewi

PT ANEKA Tambang Tbk (ANTM)

received a stable outlook rating from PT Pemeringkat Efek Indonesia (Pefindo). Previously, Pefindo assigned a negative rating to this state-owned mining issuer.

The increase in rating is motivated by the gold segment which can continue to generate bigger profits, supported by the current increase in gold prices, especially during the pandemic.

NH Korindo Sekuritas analyst Meilki Darmawan assessed that the improvement in ANTM's rating was due to the improvement in ANTM's fundamental performance which in the second quarter turned positive.

Kinerja kuartal kedua membaik, outlook Aneka

Tambang (ANTM) naik jadi stabil

Reporter: Akhmad Suryahadi | Editor: Herlina Kartika Dewi

PT ANEKA Tambang Tbk (ANTM) men-

dapat rating outlook stabil dari PT Pemeringkat Efek Indonesia (Pefindo). Sebelumnya, Pefindo menyematkan rating negatif terhadap emiten tambang pelat merah ini.

Kenaikan rating ini dilatarbelakangi oleh segmen emas yang dapat terus meng-hasilkan keuntungan yang lebih besar di-dukung oleh kenaikan harga emas saat ini, utamanya saat pandemi.

Analis NH Korindo Sekuritas Meilki Darmawan menilai, membaiknya rating ANTM lebih dikarenakan membaiknya kinerja fundamental ANTM yang pada kuartal kedua berubah menjadi positif.

IMA-Daily Update Page 9

As an illustration, ANTM posted a net profit of Rp 84.82 billion during the first six months of 2020. This realization was down 80.18% from the first semester of 2019 which reached Rp 428 billion.

However, in the second quarter, ANTM recorded a net profit of Rp367 billion, which according to Meilki was due to the nickel segment posting a better margin of 18.9%. This realization managed to compensate for the performance in the first quarter of 2020, in which the state-owned mining issuer experienced a net loss of Rp 282 billion.

The prospect of gold commodity, which is one of ANTM's merchandise, is stil l considered tempting. "If the world economy continues to contract until the end of the year, in my scenario, gold will still be bullish until the end of the year," explained Meilki to Kontan.co.id, Tuesday (15/9).

NH Korindo Sekuritas raises the average gold price assumption to US$ 1,830 per ounce for 2020.

In addition, Meilki also revised the ANTM performance estimate for 2020 to the next two years by considering higher nickel segment sales in line with the potential for the growth of the electric car industry as well as domestic gold trading activity that will grow higher after 2020. In addition, there are expectation of a better margin due to the cost efficiency carried out by ANTM.

At the end of this year, ANTM's revenue is projected to be Rp 21.82 trillion, while next year it will increase to Rp 25.67 trillion. From the bottom line, NH Korindo Sekuritas predicts ANTM's net profit will be Rp 288 billion by the end of this year and increase to Rp 350 billion next year.

NH Korindo Sekuritas maintains a recommendation to buy ANTM shares with a target price of Rp 1,100.

Sebagai gambaran, ANTM membukukan laba bersih Rp 84,82 miliar sepanjang enam bulan pertama 2020. Realisasi ini turun 80,18% dari semester I-2019 yang mencapai Rp 428 miliar.

Namun, di kuartal kedua, ANTM mencatat-kan laba bersih Rp367 miliar, yang menurut Meilki disebabkan segmen nikel membuku-kan marjin yang lebih baik sebesar 18,9%. Realisasi ini berhasil mengkompensasi kinerja pada kuartal pertama 2020, dimana emiten tambang milik Negara tersebut mengalami rugi bersih sebesar Rp 282 miliar.

Prospek komoditas emas yang merupakan salah satu dagangan ANTM pun dinilai masih menggiurkan. “Jika ekonomi dunia masih kontraksi hingga akhir tahun, skenario saya emas masih akan bullish hingga akhir tahun,” terang Meilki kepada Kontan.co.id, Selasa (15/9).

NH Korindo Sekuritas meningkatkan asumsi harga rata-rata emas menjadi US$ 1.830 per ons untuk 2020.

Selain itu, Meilki juga merevisi estimasi kinerja ANTM untuk tahun 2020 hingga dua tahun ke depan dengan mempertimbangkan penjualan segmen nikel yang lebih tinggi seiring dengan potensi pertumbuhan industri mobil listrik serta aktivitas perda-gangan emas dalam negeri yang tumbuh lebih tinggi setelah tahun 2020. Selain itu, ada ekspektasi margin yang lebih baik karena efisiensi biaya yang dilakukan ANTM.

Akhir tahun ini, pendapatan ANTM di-proyeksikan sebesar Rp 21,82 triliun semen-tara tahun depan akan naik menjadi Rp 25,67 triliun. Dari sisi bottomline, NH Korindo Sekuritas memprediksi laba bersih ANTM akan sebesar Rp 288 miliar di akhir tahun ini dan naik menjadi Rp 350 miliar di tahun depan.

NH Korindo Sekuritas mempertahankan rekomendasi beli (buy) saham ANTM dengan target harga Rp 1.100.

IMA-Daily Update Page 10

Merdeka Copper Gold (MDKA) is ready to spend US$ 50 million

for expansion Finna U. Ulfah

MINERAL mining issuer, PT Merdeka

Copper Gold Tbk., Estimates that it can absorb US$ 50 million in capex or capital expenditure in the second half of this year. This amount is equivalent to IDR 743.5 billion using today's Jisdor exchange rate at Rp 14,870 per US dollar.

Merdeka Copper Gold President Director Tri Boewono said that during the first half of this year the company had absorbed US$ 30 million in capex. The total capital expenditure prepared by the issuer coded as MDKA shares throughout 2020 reached US$ 80 million.

"This does not include the effects or improvements from the events at the Tujuh Bukit mine, so we will convey the changes again," Tri said during his online public exposure, Tuesday (15/9/2020).

For information, there was a crack in the heap leach pad at the Tujuh Bukit Banyuwangi mine, Saturday (12/9/2020). Employees and heavy equipment around the heap leach pad have been evacuated as a precaution.

Tri explained that this event will have an impact on the company's gold production volume and cash flow this year.

In fact, prior to this incident, the issuer coded as MDKA securities was planning to increase its production guidance to 175,000 to 195,000 ounces this year from the previous guide of 165,000 to 185,000 ounces.

Merdeka Copper Gold (MDKA) Siap Rogoh Kocek US$50 Juta

untuk Ekspansi Finna U. Ulfah

EMITEN pertambangan mineral , PT

Merdeka Copper Gold Tbk., memperkirakan dapat menyerap belanja modal atau capital expenditure sebesar US$50 juta pada paruh kedua tahun ini. Jumlah itu setara Rp743,5 miliar bila menggunakan kurs Jisdor hari ini di posisi Rp14.870 per dolar AS.

Presiden Direktur Merdeka Copper Gold Tri Boewono mengatakan bahwa sepanjang paruh pertama tahun ini perseroan telah menyerap capex sebesar US$30 juta. Total belanja modal yang disiapkan emiten bersandi saham MDKA itu sepanjang 2020 mencapai US$80 juta.

“Ini belum termasuk dari efek atau per-baikan dari peristiwa di tambang Tujuh Bukit, jadi akan disampaikan lagi per-ubahannya,” ujar Tri saat paparan publik secara daring, Selasa (15/9/2020).

Untuk diketahui, terjadi keretakan pada heap leach pad di tambang Tujuh Bukit Banyuwangi, Sabtu (12/9/2020). Karyawan dan peralatan berat di sekitar heap leach pad telah dievakuasi sebagai upaya pencegahan.

Tri menjelaskan bahwa peristiwa tersebut akan berdampak pada volume produksi emas dan arus kas perseroan pada tahun ini.

Padahal, sebelum peristiwa ini terjadi emiten berkode efek MDKA itu berencana untuk menaikkan panduan produksi men-jadi sebesar 175.000 hingga 195.000 ounces pada tahun ini dari panduan sebelumnya sebesar 165.000 hingga 185.000 ounces.

IMA-Daily Update Page 11

The increase in the u production target was carried out in line with the increase in

global gold prices, which had touched the highest level above US$ 2,000 per troy

ounce. However, the exploitation of this momentum is in danger of failing.

MDKA is currently planning to work with

heap leach design experts to analyze the causes and to prevent similar events from

occurring in the future.

On the other hand, the company said it was

still expansive and was waiting for the potential for a quite massive increase in

value from the three development projects that are currently still underway.

First, a joint venture project with PT J Resources Asia Pasifik Tbk. (PSAB) at the

Pani Mine which contains a gold resource of 4.6 million ounces and is expected to

have an annual production of more than 250,000 ounces per year for over 15 years.

After signing the cooperation agreement,

the two issuers are currently awaiting approval from the regulator and PSAB

creditors.

Second, the Tujuh Bukit copper mine

project, which is still in the pre-feasibility study stage, is targeted for completion in

2021 for this process. The original plan for the Copper Project was to produce 70,000

to 90,000 tonnes of copper and 200,000 to 300,000 oz of gold over 20 years.

The third is AIM or a multi-commodity development project which is expected to

generate revenues of more than US$ 200 million per year for 20 years. The

feasibility study for the cooperation project with Tsingshan is expected to be

completed in the fourth quarter of 2020.

Editor: Rivki Maulana

Penaikkan target produksi u dilakukan seiring dengan kenaikan harga emas global yang sempat menyentuh level tertinggi di atas US$2.000 per troy ounces. Namun, pemanfaatan momentum itu terancam gagal.

Saat ini MDKA tengah berencana untuk bekerja sama dengan ahli desain heap leach untuk menganalisa penyebab dan untuk mencegah peristiwa serupa tidak terulang di masa depan.

Di sisi lain, perseroan menyampaikan tetap ekspansif dan tengah menanti potensi kenaikan nilai yang cukup masif dari tiga proyek pengembangan yang saat ini masih berlangsung.

Pertama, proyek joint venture dengan PT J Resources Asia Pasifik Tbk. (PSAB) di Tambang Pani yang mengandung sumber daya emas 4,6 juta ounces dan diharapkan memiliki produksi tahunan lebih dari 250.000 ounces per tahun selama lebih dari 15 tahun.

Setelah menandatangani perjanjian kerja sama, saat ini kedua emiten itu tengah menanti persetujuan dari regulator dan kreditur PSAB.

Kedua, proyek tambang tembaga Tujuh Bukit yang masih dalam tahap pra studi kelayakan yang ditargetkan rampung pada 2021 terhadap proses itu. Rencana awal Proyek Tembaga itu adalah memproduksi 70.000 hingga 90.000 ton tembaga dan 200.000 hingga 300.000 oz emas selama lebih dari 20 tahun.

Ketiga adalah AIM atau proyek pengem-bangan multi-komoditas yang diharapkan menghasilkan pendapatan lebih dari US$200 juta per tahun selama 20 tahun. Studi kelayakan proyek kerja sama dengan Tsingshan itu diharapkan rampung pada kuartal IV/2020. Editor : Rivki Maulana

IMA-Daily Update Page 12

Indominco Mandiri Hand Over DAS Rehabilitation Area of

3,040 Hectares Yurika

PT INDOMINCO Mandiri, a subsidiary of PT Indo Tambangraya Megah Tbk (ITMG), handed over the results of planting in the context of Watershed Rehabilitation (DAS Rehab) to the government covering an area of 3,040 hectares, Monday (14/9).

AH Bramantya Putra, President Director of Indominco Mandiri, said that in the process, plant enrichment in the watershed rehabilitation area goes through three phases. The first phase is called P.0 which is the first year of planting.

"Then proceed with phases P.1 and P.2 designations for second and third year treatment until the implementation of the evaluation of success," said Bramantya, in a virtual handover ceremony, Monday.

Watershed rehabilitation is an additional obligation imposed by the government on companies holding Borrow and Use Forest Areas Permits (IPPKH).

Bramantya added that the watershed rehabilitation area that was handed over by Indominco this time was an area that had been enriched with plants since 2015.

The assessment was carried out by the Directorate General of Watershed Management and Protected Forests (Ditjen PDASHL) based on predetermined success criteria.

Based on the Decree of the Minister of Forestry No. 2628/Menhut-V/RHL/2012 dated 14 May 2012, and Decree of the MenLHK No. SK.8671/MenLHK-PDASHL/ KTA/DAS.1/12/218, dated...

Indominco Mandiri Serahkan Area Rehabilitasi DAS 3.040

Hektar Yurika

PT INDOMINCO Mandiri, anak usaha PT Indo Tambangraya Megah Tbk (ITMG), menyerahkan hasil Penanaman dalam Rangka Rehabilitasi Daerah Aliran Sungai (Rehab DAS) kepada pemerintah seluas 3.040 hektar, Senin (14/9).

AH Bramantya Putra, Direktur Utama Indominco Mandiri, mengatakan pada prosesnya, pengayaan tanaman dalam kawasan rehabilitasi DAS melewati tiga fase. Fase pertama disebut P.0 yakni tahun pertama penanaman.

“Kemudian dilanjutkan dengan fase P.1 dan P.2 sebutan untuk perawatan tahun kedua dan ketiga hingga pelaksanaan evaluasi keberhasilan,” kata Bramantya, dalam acara serah terima yang digelar secara virtual, Senin.

Rehabilitasi DAS sejatinya adalah kewajiban tambahan yang dibebankan pemerintah kepada perusahaan pemegang Izin Pinjam Pakai Kawasan Hutan (IPPKH).

Bramantya menambahkan bahwa area rehabilitasi DAS yang diserahkan Indominco kali ini adalah kawasan yang telah dilakukan pengayaan tanaman sejak 2015.

Penilaian dilakukan Direktorat Jenderal Pengelolaan Daerah Aliran Sungai dan Hutan Lindung (Ditjen PDASHL) mengacu pada kriteria keberhasilan yang telah ditetapkan.

Berdasarkan Keputusan Menhut No. 2628/ Menhut-V/RHL/2012 tanggal 14 Mei 2012, dan Keputusan MenLHK No. SK.8671/Men-LHK-PDASHL/KTA/DAS.1/12/218, tanggal...

IMA-Daily Update Page 13

dated 18 Dec 2018, IPPKH holders like IMM are obliged to carry out DAS Rehab the area of the concession license he holds. This regulation also states that the area planted for watershed rehabilitation must be outside the concession area designated by the government as a critical drainage area and rehabilitation is necessary.

"IMM has an obligation to carry out planting for the rehabilitation of watersheds covering an area of 24,600 hectares," said Bramantya.

Bramantya said Indominco had started fulfilling its obligat ions to carry out watershed rehabilitation since 2013, in total it had handed over to the government an area of 6,640 hectares. "This amount is the accumulation of the previous handover of 600 hectares in 2017, 3000 hectares in 2018, and in 2020, an area of 3040 hectares," said Bramantya. (RA)

tanggal 18 Des 2018, pemegang IPPKH seperti halnya IMM berkewajiban melaku-kan Rehab DAS seluas izin konsesi yang dipegangnya. Peraturan ini juga menyatakan bahwa daerah yang ditanami dalam rangka rehabilitasi DAS harus berada di luar daerah konsesinya yang ditetapkan oleh peme-rintah sebagai daerah aliran yang kritis dan perlu dilakukan rehabilitasi.

“IMM mempunyai kewajiban melakukan penanaman dalam rangka rehabilitasi DAS seluas 24.600 hektar,” kata Bramantya.

Bramantya mengatakan Indominco telah mulai memenuhi kewajiban melaksanakan rehabilitasi DAS sejak tahun 2013, secara keseluruhan telah menyerahkan kepada pemerintah seluas 6.640 hektar. “Jumlah tersebut adalah akumulasi dari penyerahan sebelumnya seluas 600 hektar pada 2017, 3000 hektar pada 2018, dan pada 2020 ini seluas 3040 hektar,” tandas Bramantya. (RA)

Gold Mine Surface Cracked, Merdeka Copper Gold (MDKA) Recalculate Production Target

Reporter: Muhammad Julian | Editor: Anna Suci Perwitasari

PT MERDEKA Copper Gold Tbk (MDKA)

had a bad luck. This happened after the company discovered cracks on the surface of the heap leach pad at the Tujuh Bukit gold mine in Banyuwangi, East Java on Saturday (12/9) morning.

This has prompted the company to plan to recalculate its gold production target this year . MDKA President Director Tri Boewono revealed,...

Permukaan tambang emas retak, Merdeka Copper Gold (MDKA) hitung ulang target produksi

Reporter: Muhammad Julian | Editor: Anna Suci Perwitasari

NASIB kurang baik dialami PT Merdeka

Copper Gold Tbk (MDKA). Hal ini terjadi setelah perusahaan menemukan keretakan pada permukaan heap leach pad pada tambang emas Tujuh Bukit di Banyuwangi, Jawa Timur pada Sabtu (12/9) pagi.

Hal ini membuat perusahaan berencana untuk menghitung ulang target produksi emas pada tahun ini. Presiden Direktur MDKA Tri Boewono mengungkapkan,...

IMA-Daily Update Page 14

MDKA President Director Tri Boewono revealed, with this finding, some of the ore or rock extracted from mining that had been piled on the front of the heap leach pad had lowered its face, so that the movement of the material resulted in damage to pipes and pumps.

"This year's gold production target until the end of the year, of course, with the incident last Saturday at the Tujuh Bukit mine project, it will affect this year's production target," he said at a virtual public expose, Tuesday (15/9).

For information, MDKA does use heap leaching technology to separate gold from other rocks. In this method, the collected ore is sprayed with a chemical compound to separate the gold from the rock.

With this incident, irrigation work on the heap leach pad area had to be temporarily halted. However, the extraction process is still ongoing.

Tri admitted that he cannot predict with certainty how the incident will affect the company's gold production realization and cash flow this year, because these figures are still being calculated by the company.

To be sure, Tri made sure that there was no loss of gold in the incident. It's just that the production process has indeed become delayed. "The company also has a comprehensive insurance policy covering material damage and business interruption," added Tri.

Tri further said that this incident did not cause any casualties or injuries to the workers who were at the location. He also claimed that the incident did not cause harm to nature.

MDKA confirmed that the pipe and pump failure incident did not change the drilling plan and pre-feasibility study at the Tujuh Bukit Copper Project.

Presiden Direktur MDKA Tri Boewono meng-ungkapkan, dengan temuan ini, sebagian ore atau batu hasil galian pertambangan yang ditumpuk pada bagian depan heap leach pad mengalami penurunan muka, sehingga per-gerakan material tersebut mengakibatkan kerusakan pada pipa dan pompa.

“Target produksi emas tahun ini sampai dengan akhir tahun tentunya dengan kejadian tadi hari Sabtu kemarin di proyek tambang Tujuh Bukit akan berpengaruh dari target produksi tahun ini,” kata dia pada acara paparan publik yang di helat secara virtual, Selasa (15/9).

Sebagai informasi, MDKA memang mengguna-kan teknologi heap leaching untuk memisah-kan emas dari batuan lainnya. Dalam metode tersebut, ore yang sudah terkumpul disemprot oleh senyawa kimia untuk memisahkan emas dari batuan.

Dengan insiden ini, pekerjaan irigasi pada area heap leach pad terpaksa dihentikan sementara. Namun proses ekstraksi masih tetap berjalan.

Tri mengaku belum bisa memperkirakan secara pasti bagaimana dampak insiden tersebut terhadap realisasi produksi emas dan arus kas perusahaan pada tahun ini, sebab angka-angka tersebut masih dihitung oleh pihak perusahaan.

Yang pasti, Tri memastikan bahwa tidak ada kehilangan emas dalam insiden tersebut. Hanya saja proses produksi memang menjadi tertunda. “Perusahaan juga memiliki polis asuransi yang komprehensif mencakup material damage dan business interruption,” imbuh Tri.

Lebih lanjut Tri bilang bahwa insiden ini juga tidak menimbulkan korban jiwa atau luka pada pekerja yang saat itu berada di lokasi. Ia juga mengklaim, insiden tersebut tidak menimbulkan kerusakan alam.

MDKA memastikan, insiden kerusakan pipa dan pompa tidak mengubah rencana penge-boran dan pra-studi kelayakan di Proyek Tembaga Tujuh Bukit.

IMA-Daily Update Page 15

Just note, the company is currently conducting a pre-feasibility study on the Tujuh Bukit Copper Project. If nothing gets in the way, the project's pre-feasibility study is expected to be completed in 2021.

Even so, the heap leach crack incident is estimated to change the company's capital expenditure budget (capex) . Because MDKA needs to repair damaged pipes and pumps.

Unfortunately, because the impact of the damage and operational incidents is still being calculated, the company admits that it cannot yet project how many changes in capex will occur after the incident. MDKA also has not further confirmed whether the changes referred to are in the form of additional or even reduction in capex funds.

"Capex absorption up to semester I-2020 has reached US$ 30 million. Later, the projections by the end of the year will increase by another US$ 50 million to US$ 80 million. But once again, this does not include the effects of or the consequences of the changes that will be required from the events of last Saturday," said Tri.

As of the end of semester I-2020, MDKA had produced 108,823 ounces of gold. Meanwhile, MDKA copper production realization was recorded at 2,926 tonnes.

Catatan saja, saat ini perusahaan memang tengah melakukan pra studi kelayakan terhadap Proyek Tembaga Tujuh Bukit. Kalau tidak ada aral melintang, pra studi kelayakan proyek tersebut diharapkan selesai pada tahun 2021 mendatang.

Meski begitu, insiden keretakan heap leach diperkirakan mengubah anggaran belanja modal atau capital expenditure (capex) per-usahaan. Sebab MDKA perlu melakukan perbaikan pada pipa dan pompa yang rusak.

Sayangnya, karena dampak kerusakan dan operasional insiden masih dihitung, per-usahaan mengaku belum bisa memproyeksi berapa perubahan capex setelah adanya insiden. MDKA juga belum mengonfirmasi lebih lanjut, apakah perubahan yang di-maksud berupa penambahan atau justru pengurangan dana capex.

“Serapan capex sampai dengan semester I-2020 capai US$ 30 juta. Nanti proyeksi sampai dengan akhir tahun akan bertambah lagi US$ 50 juta menjadi US$ 80 juta. Tetapi sekali lagi, ini belum termasuk efek dari atau akibat dari perubahan yang akan diperlukan dari peristiwa Sabtu kemarin,” ujar Tri.

Sampai dengan akhir semester I-2020, MDKA telah memproduksi emas sebanyak 108.823 ons. Sementara i tu, realisasi produksi tembaga MDKA tercatat sebesar 2.926 ton.

MEMR Claims Coal Producers Fulfill DMO Obligations

Denis Riantiza Meilanova

THE MINISTRY of Energy and Mineral Resources ensures that coal producers have fulfil led the domestic market obligation despite the challenges of the Covid-19 pandemic.

ESDM Mengklaim Produsen Batubara Penuhi Kewajiban DMO

Denis Riantiza Meilanova

KEMENTERIAN Energi dan Sumber Daya

Mineral memastikan bahwa produsen batubara telah memenuhi kewajiban pemenuhan kebu-tuhan batu bara dalam negeri atau domestic market obligation meski di tengah tantangan pandemi Covid-19.

IMA-Daily Update Page 16

EMR Ministry's Director General of Mineral and Coal Ridwan Djamaluddin said that the

realization of coal DMO until July 2020 had reached 73 million tons or 47 percent of

the target this year which was set at 155 million tons.

Ridwan ensured that coal producers had

fulfilled the DMO requirement of 25 percent of their production level as

stipulated in the Minister of EMR Decree No. 261K/30/MEM/2019 concerning

Meeting the Need for Domestic Coal 2020.

"So far, no company has been penalized for

its obligations. This means that the government appreciates business entities

that have carried out activities according to the provisions," Ridwan said at the event

The 5th Save Indonesian Coal 2020, Perhapi, Tuesday (9/15/2020).

In the provisions of the Coal DMO Ministerial Decree, if a coal company

cannot fulfill its DMO obligations with a direct sales mechanism, it will be subject to

sanctions on the obligation to pay compensation for a number of shortfalls in

coal sales for domestic interests.

In addition, if coal companies do not meet coal demand for electricity providers in

accordance with the sales contract, they will be subject to additional sanctions in

the form of reducing production the following year a number of shortages in

volume to meet coal demand according to the sales contract.

"The sanctions have been determined. Currently a formula is being drawn up to

make this obligation feel fair. If he does not fulfill his obligation he will be subject to

sanctions that are appropriate, not too heavy and also do not make people

deliberately make mistakes," he said.

Direktur Jenderal Minerba Kementerian ESDM Ridwan Djamaluddin menyampai-kan bahwa realisasi DMO batu bara hingga Juli 2020 mencapai 73 juta ton atau 47 persen dari target sepanjang tahun ini yang dipatok sebesar 155 juta ton.

Ridwan memastikan para produsen batu bara telah memenuhi kewajiban peme-nuhan DMO sebesar 25 persen dari tingkat produksinya sebagaimana ketentuan Kepmen ESDM No 261K/30/MEM/2019 tentang Pemenuhan Kebutuhan Batubara Dalam Negeri 2020.

"Sejauh ini belum ada perusahaan yang dikenakan penalti terhadap kewajibannya. Artinya, pemerintah mengapresiasi badan usaha yang sudah melakukan kegiatan sesuai ketentuan," ujar Ridwan dalam acara The 5th Save Indonesian Coal 2020 Perhapi, Selasa (15/9/2020).

Dalam ketentuan Kepmen DMO batu bara, bila perusahaan batu bara tidak bisa memenuhi kewajiban DMO dengan meka-nisme penjualan secara langsung akan dikenakan sanksi kewajiban pembayaran kompensasi terhadap sejumlah keku-rangan penjualan batu bara untuk kepen-tingan dalam negeri.

Selain itu, bila perusahaan batu bara tidak memenuhi kebutuhan batu bara untuk penyedia tenaga listrik sesuai dengan kontrak penjualan, mereka akan dikenakan sanksi tambahan berupa pengurangan produksi tahun berikutnya sejumlah keku-rangan volume pemenuhan kebutuhan batu bara sesuai kontrak penjualan.

"Sanksi-sanksi sudah ditentukan. Saat ini sedang disusun formula yang mengatur agar kewajiban ini terasa berkeadilan. Kalau dia tidak memenuhi kewajibannya dia dikenai sanksi yang setimpal, tidak terlalu berat dan juga tidak membuat orang sengaja membuat kesalahan," kata-nya.

IMA-Daily Update Page 17

Meanwhile, the Ministry of EMR projects that the uptake of coal DMO by the end of

this year will only reach 125 million tons from the original target of 155 million tons.

The decline was mainly due to reduced coal consumption by PT PLN (Persero)

from the original planned 109 million tons to 95.6 million tons by December 2020.

Editor: Zufrizal

Sementara itu, Kementerian ESDM mem-proyeksikan serapan DMO batu bara hingga akhir tahun ini hanya mencapai 125 juta ton dari target semula yang dipatok 155 juta ton. Penurunan terutama di-sebabkan oleh berkurangnya konsumsi batu bara oleh PT PLN (Persero) dari semula direncanakan 109 juta ton menjadi 95,6 juta ton sampai dengan Desember 2020. Editor : Zufrizal

Coal Approaches to Highest Prices in August, What's This

Sign? Tirta Citradi, CNBC Indonesia

THE PRICE of coal for the Newcastle

futures contract yesterday closed slightly higher. Now the price of thermal coal is getting closer to its highest level since August.

On Tuesday's trade (15/9/2020), coal prices closed up 0.56% to US$ 54.1/ton. This is the highest coal price since August 5, 2020.

The price of coal commodities so far this year has dropped more than 20%. The weakening global demand, especially from India and China due to the lockdown to control the Covid-19 outbreak, is the culprit.

At the same time, the momentum of this pandemic was also used by many countries to shift to cleaner and environmentally friendly energy sources. Renewable energy market share in developed countries, especially Europe for electricity generation, has increased.

Batu Bara Dekati Harga Tertinggi Agustus, Tanda Apa

Ini? Tirta Citradi, CNBC Indonesia

HARGA batu bara kontrak berjangka

Newcastle kemarin ditutup menguat tipis. Kini harga batu bara termal tersebut semakin mendekati level tertingginya sejak Agustus.

Pada perdagangan Selasa (15/9/2020), harga batu bara ditutup naik 0,56% ke US$ 54,1/ton. Ini merupakan harga batu bara tertinggi sejak 5 Agustus 2020.

Harga komoditas batu bara sepanjang tahun ini telah anjlok lebih dari 20%. Pelemahan permintaan global terutama dari India dan China akibat lockdown untuk mengendalikan wabah Covid-19 menjadi biang keroknya.

Di saat yang sama, momentum pandemi ini juga dimanfaatkan oleh banyak negara untuk beralih ke sumber energi yang lebih bersih dan ramah lingkungan. Pangsa pasar renewable energy di negara-negara maju terutama Eropa untuk pembangkit listrik mengalami peningkatan.

IMA-Daily Update Page 18

Quoting Refinitiv data, China's coal imports in January-August 2020 were 183.2 million tons. Down 4.2% compared to the same period the previous year. Then India's coal imports during the first eight months of 2020 were 113.48 million tonnes. Dropped 18.4% over the same period the previous year.

Meanwhile, South Korea's coal imports in the January-August 2020 period were 71.01 million tonnes. 21% subsidence over the same period in 2019.

The weak demand for coal has resulted in lower prices. The benchmark coal price (HBA) in September was also corrected. The September HBA was pegged at US$ 49.42/ton. This month's HBA is down from the previous month which was still at US$ 50.34/ton.

The continued decline in prices has certainly suppressed the financial performance of miners and exporters, including Indonesia. Falling prices make it difficult for miners to break even.

"The Indonesian coal industry is in trouble structurally and financially after a number of companies struggled to break-even," said IEEFA Financial Analyst Ghee Peh, who is also the author of the IEEFA 'No Bailout, Don Don't Throw Good Money after Bad' report, quoted by CNBC Indonesia, Monday (14/9/2020).

The prospect of coal demand in the future is still vague. The continuing increase in cases of Covid-19 infection in various countries means that normal life will not happen in the near future.

Even though the restrictions have been relaxed, this does not mean that the economy will immediately accelerate. The economic activity that is slowly recovering will certainly make energy needs experience the same thing.

Mengutip data Refinitiv, impor batu bara China pada Januari-Agustus 2020 adalah 183,2 juta ton. Turun 4,2% dibandingkan periode yang sama tahun sebelumnya. Kemudian impor batu bara India selama delapan bulan pertama 2020 adalah 113,48 juta ton. Anjlok 18,4% dibandingkan periode yang sama tahun sebelumnya.

Sedangkan impor batu bara Korea Selatan dalam periode Januari-Agustus 2020 adalah 71,01 juta ton. Ambles 21% ketimbang periode yang sama pada 2019.

Lemahnya permintaan batu bara berujung pada penurunan harga. Harga batu bara acuan (HBA) bulan September juga masih lanjut terkoreksi. HBA September dipatok di US$ 49,42/ton. HBA bulan ini turun dari bulan sebelumnya yang masih berada di US$ 50,34/ton

Penurunan harga yang terus berlanjut tentu menekan kinerja keuangan para penambang dan eksportir, tak terkecuali Indonesia. Harga yang anjlok membuat penambang susah untuk mencapai titik impas (break-even).

"Industri batu bara Indonesia berada dalam masalah secara struktural dan finansial setelah sejumlah perusahaan kesulitan mencapai break-even," kata kata Analis Keuangan IEEFA, Ghee Peh, yang juga penulis laporan 'No Bailout, Don Don't Throw Good Money after Bad' IEEFA, dikutip CNBC Indonesia, Senin (14/9/2020).

Prospek permintaan batu bara ke depan masih samar-samar. Masih terus mening-katnya kasus infeksi Covid-19 di berbagai negara membuat kehidupan normal masih belum akan terjadi dalam waktu dekat.

Meski pembatasan sudah dilonggarkan, bukan berarti laju roda perekonomian akan langsung melesat serta merta. Geliat ekonomi yang pulih perlahan tentu mem-buat kebutuhan energi pun mengalami hal yang sama.

IMA-Daily Update Page 19

With the commercial and industrial sectors not yet fully operational, automatically

there is not much electricity demand. As a result, the demand for fuel for power

plants, especially those sourced from coal, cannot yet be expected to rebound high.

CNBC INDONESIA RESEARCH TEAM (twg/twg)

Dengan sektor komersial serta industri yang belum beroperasi penuh, otomatis kebutuhan listriknya juga belum bisa banyak. Alhasil permintaan untuk bahan bakar pembangkitnya terutama yang ber-sumber dari batu bara pun belum bisa diharapkan untuk rebound tinggi. TIM RISET CNBC INDONESIA (twg/twg)

Freeport does not want to be 'distracted' by buyout offers, CFO says

FREEPORT-McMoRan Inc does not want to be distracted by any buyout offers and is focused

on expanding its Grasberg copper-and-gold mine in Indonesia and boosting cash flow, Chief Financial Officer Kathleen Quirk said on Tuesday.

Executives at rival miner Barrick Gold Corp have openly talked in recent months about their interest in buying all or part of Freeport, especially Grasberg, the world's largest copper mine.

No official offer has been made, and Freeport Chief Executive Richard Adkerson has said he

has no interest in any sale.

Quirk's comments on Tuesday underscored that opposition. Freeport is nearing the end of a $15 billion project to expand Grasberg in what will be the largest underground mine ever

developed, an expansion that is expected to significantly boost cash flow. Freeport is also building a copper smelter in Indonesia.

"We want to see our shareholders get the value from this plan as opposed to other shareholders getting the value," Quirk told the Morgan Stanley 8th Annual Laguna

Conference, which was webcast.

Roughly 70% of the Grasberg expansion project should be done by the end of the year, and 90% by the middle of 2021, she said.

Freeport's stock has nearly tripled since hitting a low in March, and many analysts expect it to

climb higher still. Copper prices have gained 11% since January, driven in part by rising demand from the electric vehicle industry.

Given that, Quirk and Adkerson have repeatedly said they do not feel now is the right time for a sale.

"We don't really want to be distracted by M&A," Quirk said. "We want to execute this plan. We

believe that this plan will deliver exceptional value for shareholders." (Reporting by Ernest

Scheyder; Editing by Tom Brown)

IMA-Daily Update Page 20

Metso Outotec wins two orders for high-capacity copper anode casting shops

Published by Simon Matthis

METSO Outotec has won two orders for its Outotec® Anode Casting Shops, which are to be

delivered to copper production plants in China and Bulgaria. Yangxin Hongsheng Copper Co.,

Ltd., which is constructing its greenfield copper smelter in Huangshi, Hubei, China, expects to start its operations in 2021. Aurubis Bulgaria AD’s copper production plant in Pirdop,

Bulgaria, has been operating since the end of the 1950s and is a longtime customer of Metso Outotec.

Both anode casting shops are equipped with fully electric systems to improve maintainability, energy efficiency and safety. The shops are expected to be commissioned in 2021. Typically,

the combined value for two shops of this type would be close to EUR 10 million. The orders have been booked in Metso Outotec’s Q3 2020 orders received.

“We are extremely pleased to have won these two important orders. Both shops will feature

two casting wheels for high capacity and yield. They will also be equipped with advanced automation to ensure high availability and high casting accuracy to produce high quality

anodes,” says Jari Ålgars, President, Metals business area at Metso Outotec.

Coal exporters should brace for disappointment Asian thermal coal exporters are fighting an uphill battle even in new markets

By Simon Nicholas

THE WORLD’s largest thermal-coal exporter is eyeing new markets as its largest export

destinations threaten to cut imports. Indonesia is targeting Bangladesh, Pakistan and Vietnam as China and India seek to curb thermal-coal imports into the long term.

As a result, Australian and South African thermal-coal exporters aren’t going to have it all their own way in seeking increased deliveries to markets such as Vietnam. Furthermore, it looks increasingly like Vietnam, Bangladesh and Pakistan are going to disappoint those hoping for more demand growth from these countries.

A key problem faced by thermal-coal exporters in Australia, Indonesia and South Africa is that China and India are increasingly prioritizing their own very large domestic coal-mining industries. Both nations are keen to reduce imports as much as possible for energy-security reasons and to protect domestic jobs.

Other established coal export destinations are also likely to reduce imports in the long term.

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South Korea has been the third-largest thermal-coal export destination for Australia, Indonesia and South Africa. However, this month President Moon Jae-in announced that 30 coal-fired power plants will be closed by 2034 and wind and solar capacity tripled by 2025.

Meanwhile Japan is now planning the closure of 100 coal-fired power units by 2030 as it gears up for its own push into offshore wind.

Bangladesh set to abandon coal push

With one of the largest coal-power project pipelines in the world, Bangladesh has been considered a significant source of future demand growth for thermal coal in the Asian seaborne market.

However, that hope looks as if it is about to come to an abrupt end now that the nation’s Power Ministry has sought approval from the prime minister to cancel 13,000 megawatts of coal power.

The relative expense of coal-fired power compared with new energy technology and increasing difficulties securing finance for coal projects are behind Bangladesh’s sudden shift. Bangladesh’s coal power capacity will likely now be limited to what is already under construction – a major boom in coal imports to help replace declines elsewhere won’t now happen.

Pakistan’s new power plan

Like Bangladesh, Pakistan was once seen as one of the last major thermal-coal growth markets. However, the government has been shifting away from imported coal and is now prioritizing power plants fueled by domestic coal, hydro and renewable energy.

Another planned coal power plant intended to be fueled by imported coal was canceled in June. And Pakistan’s new long-term power plan continues the trend away from imported coal.

According to this plan, focus on other power sources would mean that the nation’s coal plants that use imported coal would be operating at just 14% utilization by 2030. In such a scenario, those coal power plants are stranded – they can’t operate economically at such low utilization.

This would end any chances of Pakistan replacing lost markets for Indonesia and Australia. It’s even worse news for South African coal exporters, as Pakistan is currently the nation’s second-largest export destination.

India is South Africa’s largest coal export destination by far, but with the Indian government stepping up action to replace coal imports with domestic supply and Pakistan turning toward domestic power sources, South African exporters will need to find alternative markets.

In 2020, South Africa has managed to increase exports to Vietnam significantly, although this has not been enough to counteract a fall in exports to India.

Vietnam set to dial down coal focus

Increased export focus on Vietnam this year highlights how that nation is becoming a battleground market as the Asian seaborne thermal-coal pond threatens to shrink significantly in the long term.

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Although Vietnam has significantly increased coal imports recently, it now looks as if nation’s next long-term power plan will further disappoint the thermal-coal sector.

A boost in renewable-energy focus along with curtailment of coal-fired power additions are set to be key features of Vietnam’s soon-to-be-finalized Power Development Plan VIII.

This follows the Vietnamese National Steering Committee for Power Development’s recommendation that 15 gigawatts of planned coal projects be scrapped as renewables get cheaper and more banks pull out of coal-power financing.

Coal power plants currently under construction in Vietnam will continue, increasing the demand for thermal-coal imports in the medium term, but with Indonesia, Australia and South Africa all targeting the nation, it won’t be able to replace markets the main exporters are set to lose elsewhere in Asia.

The International Energy Agency’s most recent World Energy Outlook – often quoted by the coal industry – outlines a 15% decline in the global thermal-coal trade by 2030 under its central Stated Policies Scenario. Under its Sustainable Development Scenario, the decline is 56% by 2030.

According to the IEA, it is increasing coal exports to Asian markets outside of Japan, China, South Korea and Taiwan that will slow thermal coal’s decline under its central scenario.

With the recent moves by Vietnam, Bangladesh and Pakistan, that is looking less likely, and the decline of seaborne thermal coal threatens to look more like the accelerated decline in the Sustainable Development Scenario.

The thermal-coal industry can no longer claim that growth markets ensure a rosy future for exports.

Ivanhoe’s Congo mine productivity peerless among copper giants Frik Els

WITH large-scale deposits hard to find (and even harder to bring into production on time

and within budget) much has been made of the sheer size of Kamoa-Kakula, Ivanhoe Mines’ project on the central Africa copper belt straddling the DRC and Zambia.

A new note by BMO Capital Markets compares Kamoa-Kakula to the world’s 10 largest copper mines based on 2019 production numbers to offer a perspective on the potential of legendary mining financier Robert Friedland’s latest project.

Phase one of three, Kakula, could be up and running in less than a year and according to the definitive feasibility study, (DFS) will average 284,000 tonnes of copper per year for the first 10 years, processing 6.2% Cu ore at a pedestrian pace of only 6 million tonnes per annum.

The expanded Kamoa-Kakula will have a run rate of just over half a million tonnes copper in the first decade at 5.1% Cu grade and at peak production returns 805,000 tonnes of copper per year, processing 19 million tonnes of ore per year at an eye-watering 7% Cu grade.

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BMO points out that the Kamoa-Kakula preliminary economic assessment (PEA) only processes 5–35% of annual tonnage and at a grade 4-5% higher than the other large

producers:

“The unique scale and grade of the Kamoa-Kakula complex will, in our opinion, drive premium valuations for Ivanhoe as the company enters production.”

BMO admits it’s not a fair comparison as none of the other operations are at peak grade or

production but “still offers an interesting scale comparison showing the upside potential of the Kamoa-Kakula complex.”

BMO has an outperform rating on Ivanhoe Mines (TSE:IVN) and upped its price target to $10.00 following the DFS. Ivanhoe is also advancing the Platreef PGM-polymetallic

development project in South Africa and the Kipushi zinc-copper mine in the DRC.

Ivanhoe was last trading at $5.96 a share in Toronto with a market value of C$7.2 billion, up 42% year to date. Copper was last trading at $3.06 a pound or $6,750 per tonne, up more

than 50% from its March lows and near a more than two-year high.

MINING.COM adapted BMO’s table to calculate the value of the copper in every tonne milled

based on Tuesday’s price, but that obviously ignores byproducts, most of which are present at these giant deposits.

Most notably at Freeport-McMoRan’s Grasberg mine, which glitters in its absence from the 2019 Top 10 ranking as it transitions to an underground operation. By 2022, Grasberg will

likely re-enter the ranking at No. 2 in terms of annual production – and thanks to 1.6 million ounces of gold every year – essentially produces copper for free.

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Australian coal mines to struggle to replace domestic demand

AUSTRALIA’s coal industry is set to struggle more than the country’s natural gas industry, to

replace the loss in domestic demand, Kallanish Energy reports.

According to consultancy firm Rystad Energy, total Australian coal consumption for power is

estimated to reach roughly 90.8 million tonnes (Mt) this year. By 2040, total coal-for-power

consumption is forecast to fall to 28 Mt – a 70% reduction from current levels.

The decline is substantial in a local context, but not so much at a broader level, as the main

market for Australian coal is overseas. Last year, the country exported around 400 million

tonnes of its total metallurgical and thermal (black) coal production of 462 Mt.

Yet, the problem for coal producers supplying the domestic power generation demand is that

their coal normally has significantly lower energy content than the standard export coal

specification of 5,500 to 6,000 kcal/kg. Mines will then have limited ability to sell that coal in

the export market, “even if there is transport infrastructure in place to move the coal to port

terminals,” Rystad said.

On the other hand, natural gas producers might have a brighter outlook ahead, as domestic

gas production can be diverted to the exports market via liquefied natural gas (LNG).

“Australia may take advantage of international gas demand growth to absorb some of the gas

that is no longer needed in the domestic market by increasing its LNG exports to achieve a

higher utilization rate at these facilities,” the firm said.

Gas will also be a “plan B for security of supply for electricity from a lower-emitting energy

source when the renewables-dominated power mix falls short,” Rystad added.

The consultancy estimates that solar photovoltaic and onshore wind farms will overtake

power generation by coal and natural gas in 2026. Currently, coal supplies 55.2% of the

powergen demand in Australia, while gas accounts for 17.3%, onshore wind for 10.3% and

solar for 8.6%.

By 2040, the estimate is that the shares for coal and gas will decline to 10.3% and 4.4%,

respectively. Solar PV will dominate the energy generation with a 41.6% share in the mix,

followed by 36.8% by onshore wind.

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Alberta coal production falls to over 12-year low in July Author: Tyler Godwin, Editor: Richard Rubin

COAL production in Alberta, Canada, fell to over a 12-year year low 1.3 million mt in July,

down from 1.77 million mt in June and 1.78 million mt, according to data from the Alberta Energy Regulator released Sept. 15.

Bituminous thermal coal output ticked lower to 840,488 mt in July, down from the 12-year high 1.03 million mt in June, but up from 593,157 mt in the year-ago month. Production at Coalspur Mines' Vista thermal mine, owned by the Cline Group and based in Hinton, fell to 678,353 mt, from 855,821 mt in June, but up from 327,009 mt in July 2019.

Coalspur, which first started production in February 2019, has produced 4.38 million mt through the first seven months of 2020, nearly tripling the 1.53 million mt in the same period a year ago.

Alberta's other bituminous thermal mine, Coal Valley, which is owned by Westmoreland Mining Holdings, produced 162,135 mt in July, down from 172,780 mt in June and 266,148 mt in July 2019.

Bituminous thermal coal production through the first seven months of 2020 is up 31.1% year on year at 5.32 million mt.

Both Coal Valley and Coalspur, which are mined from the same seam, ship all of their coal by rail to ports on the west coast of British Columbia for deliveries to power plants overseas.

According to AER data, roughly 506,540 mt of bituminous thermal coal was exported from Alberta in July, up from 468,920 mt in June and 343,841 mt in July 2019.

South Korea was shipped 350,557 mt in July, up from 134,741 mt in June and zero in the year-ago month, while 87,830 mt and 86,984 mt was exported to Japan and Singapore, respectively. The 350,557 mt was the second-highest thermal coal shipped to any country in the last 12 years, only lower than 411,415 mt to Singapore in July 2018.

Nearly 3.21 million mt of bituminous thermal was exported through July, up from 1.73 million mt exported in the same period a year ago.

Alberta has shipped 1.12 million mt of thermal coal to South Korea and 612,870 mt to Japan this year, compared with 155,000 mt and 520,159 mt, respectively, in the same period a year earlier. Alberta has also exported 592,472 mt to Singapore and 326,753 mt to Egypt, compared with 772,094 mt and zero last year.

No metallurgical coal produced in July

For the first time in over 12 years, Alberta did not produce any metallurgical coal in July, compared with 116,386 mt in June and 352,150 mt in July 2019.

However, production through the first seven months is at 2.3 million mt, up from 2.24 million mt in the same period a year earlier.

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Met exports totaled 147,842 mt in July, compared with 133,998 mt in June and 214,010 mt in July 2019. Exports to Pacific ports rose to 148,842 mt, from 29,693 mt in June, while shipments to Japan and China both fell to 18,015 mt and 12,032 mt in July, respectively, down from 55,544 mt and 23,825 mt in June.

Subbituminous production falls again

Subbituminous coal production at the five mines in the province fell to its lowest level in over 12 years in July with 459,344 mt produced, down from 628,850 mt in June and 834,115 mt in July 2019.

Cumulative production through July is down to 4.63 million mt, from 6.67 million mt in the same period a year ago. It was the lowest production total through the first seven months of a year in over 12 years.