IMA-Daily Update Page 1

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ESDM Rejects Proposed Coal Entrepreneurs About Relaxation of Royalty Payments ESDM Tolak Usul Pengusaha Batu Bara Soal Relaksasi Pembayaran Royalti Affected by Covid-19, mineral and coal mining investment is estimated to drop by 20-25 percent of the target Terdampak Covid-19, investasi tambang minerba diper-kirakan anjlok 20%-25% dari target Darma Henwa's Revenue Grows 24.64% Pendapatan Darma Henwa Tumbuh 24,64% Prognosis for 2020 Coal Prices Range from US$59 - US$61 per ton Prognosa Harga Batu Bara 2020 Berkisar US$59 – US$61 per Ton Freeport Indonesia Awaits Permit for Extension of Completion of Copper Smelter Project Freeport Indonesia menanti izin perpanjangan penyelesaian proyek smelter tembaga Relaxing Coal Royalties Not Urgent To Do Relaksasi Royalti Batu Bara Tidak Urgen Dilakukan KLHK Encourages Mining Industry to Manage B3 Waste into Useful Goods KLHK Dorong Industri Tambang Kelola Limbah B3 Jadi Barang Berguna Reference Coal Price (HBA) Depressed to Level 2016, Cut Production into Solution? Harga Batu Bara Acuan (HBA) Tertekan ke Level 2016, Pangkas Produksi Jadi Solusi? Still Waiting for Permit to Extend Smelter Project, Amman Minerals Focuses to Prevent Corona Virus Masih tunggu izin perpanjangan proyek smelter, Amman Mineral fokus cegah virus corona

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Luhut Reveals the Reason Behind the Nickel Export Ban Luhut Buka-bukaan Alasan di Balik Larangan Ekspor Nikel Rally Oil, Get Ready for Coal Will Come Jump Minyak Reli, Siap-siap Batu Bara Bakal Ikut Melesat Indonesia to ask Freeport to build copper smelter Nickel market to evolve as EVs, role-players and projects change Metso strengthens equipment, processes, technology and people connections Zijin takes control of Tibet copper miner for $548m China's coal imports fall nearly 20% in May even as demand rises SA coal exports may have peaked: Anglo American

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ESDM Rejects Proposed Coal Entrepreneurs About Relaxation

of Royalty Payments Yanita Petriella

THE MINISTRY of Energy and Mineral Resources (ESDM) stressed rejecting the demand of coal entrepreneurs to provide temporary incentives in the form of relaxation of royalty payments amid the Covid-19 pandemic.

ESDM Ministry's Minerba Re venue Director Johnson Pakpahan said relaxation of royalties could have a significant impact on state revenue. Moreover, in the midst of the Covid-19 pandemic, the government spent a lot of funds so that it needed to optimize revenue.

"For me, I don't want relaxation, because I have not seen that it is urgent and has a lot of impact. Our leaders (Minister of ESDM) do not direct to allow and remain in accordance with the provisions," he said in a virtual discussion, Friday (6/5/2020).

At present, coal royalties are calculated using which price formulation is higher between the benchmark price and the selling price. This is done to prevent fraudulent practices such as transfer pricing where license holders carry out transactions between subsidiaries and affiliated traders.

"Actual prices do not necessarily reflect actual prices. The current formulation is precisely to avoid unnatural company transactions," he said.

In addition to requesting a change in the calculation of the royalty formula, employers have requested to pay royalties after shipment. According to him,...

ESDM Tolak Usul Pengusaha Batu Bara Soal Relaksasi

Pembayaran Royalti Yanita Petriella

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) menegaskan menolak permintaan para pengusaha batu bara untuk memberikan insentif sementara berupa relaksasi pembayaran royalti di tengah pandemi Covid-19.

Direktur Penerimaan Minerba Kementerian ESDM Johnson Pakpahan mengatakan relak-sasi royalti bisa memberikan dampak yang signifikan terhadap penerimaan negara. Terlebih, di tengah kondisi pandemi Covid-19 ini, pemerintah banyak mengeluarkan dana sehingga perlu optimalisasi penerimaan.

"Kalau saya enggak mau relaksasi, karena belum melihat itu urgent dan dampaknya banyak. Pimpinan kami (Menteri ESDM) tidak mengarahkan untuk memperbolehkan dan tetap sesuai ketentuan," ujarnya dalam diskusi virtual, Jumat (5/6/2020).

Saat ini, royalti batu bara dihitung meng-gunakan formulasi harga mana yang lebih tinggi antara harga patokan dengan harga jual. Hal itu dilakukan untuk mencegah praktik kecurangan seperti transfer pricing dimana pemegang izin melakukan transaksi antara anak perusahaan maupun trader yang terafiliasi.

"Harga aktual pun belum tentu meng-gambarkan harga yang sebenarnya. Formu-lasi yang berlaku justru untuk menghindari transaksi perusahaan yang tidak wajar," katanya.

Selain meminta perubahan penghitungan formula royalti, para pengusaha memohon untuk membayar royalti setelah penga-palan. Menurutnya,...

IMA-Daily Update Page 4

According to him, this will disrupt the cash flow of state revenues which are currently under pressure from the Covid -19 pandemic.

Currently the companies get contract payments in advance so the same thing should be applied by companies to pay obligations to the government.

He considered the payment of royalties in advance also made it easier for the government to supervise the fulfillment of company obligations and control of state revenue so that it remained stable.

"If the company receives an advance payment, the government also gets it. If there is a delay it will greatly disrupt the government's cash flow," Johnson said.

Previously, mining entrepreneurs asked for relaxation while paying coal royalties.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that when the market conditions were oversupply so commodity prices continued to be depressed, the company had difficulty managing cash flow due to the widening disparity between the Bench-mark Coal Price (HPB) and the actual FOB coal prices.

"Many buyers prefer the selling price to use a reference price according to the index or known as index-linked," he told Bisnis.

Based on the Minister of ESDM Decree No. 1823 K/30/MEM/2018 concerning Guide-lines for the Implementation of Imposition, Collection and Payment/Deposit of Non-Tax Mineral and Coal State Revenues, for payment of royalties to the state, it must refer to the HPB. With these market conditions, the actual selling price of coal is getting lower so that the company is burdened with the difference that becomes an obligation to be paid.

Menurutnya, hal itu akan mengganggu arus kas penerimaan negara yang saat ini tertekan pandemi Covid-19.

Saat ini para perusahaan mendapatkan pembayaran kontrak di muka sehingga hal yang sama seharusnya diberlakukan oleh perusahaan untuk membayar kewajiban ke pemerintah.

Dia menilai pembayaran royalti di muka juga mempermudah pemerintah dalam me-lakukan pengawasan terhadap pemenuhan kewajiban perusahaan dan kontrol terhadap penerimaan negara supaya tetap stabil.

"Kalau perusahaan menerima pembayaran di muka, pemerintah juga mendapatkannya. Jika ada penundaan akan sangat meng-ganggu cash flow pemerintah," ujar Johnson.

Sebelumnya, para pengusaha tambang meminta diberikannya relaksasi sementara pembayaran royalti batu bara.

Direktur Eksekutif Asosiasi Pertambangan Batu Bara Indonesia (APBI) Hendra Sinadia mengatakan di saat kondisi pasar yang oversupply sehingga harga komoditas terus tertekan, perusahaan mengalami kesulitan dalam mengelola cash flow akibat semakin melebarnya disparitas selisih antara Harga Patokan Batubara (HPB) dengan harga jual batubara FOB aktual.

"Banyak pembeli lebih prefer harga jual menggunakan acuan harga sesuai indeks atau dikenal dengan istilah index-linked," ujarnya kepada Bisnis.

Berdasarkan Keputusan Menteri ESDM No. 1823K/30/MEM/2018 tentang Pedoman Pelaksanan Pengenaan, Pemungutan, Dan Pembayaran/Penyetoran Penerimaan Negara Bukan Pajak Mineral dan Batubara, untuk pembayaran royalti ke negara harus mengacu kepada HPB. Dengan kondisi pasar seperti ini, harga jual aktual batubara semakin rendah sehingga perusahaan terbebani dengan selisih tersebut yang menjadi kewajiban yang harus dibayar.

IMA-Daily Update Page 5

"As for the difference between the Actual Selling Price vs. HPB experienced by our members, some even reach US$5 per ton," he said.

APBI requests that the government, in this case the Ministry of ESDM, temporarily revise the Minister of ESDM Decree No. 1823 K/30/MEM/2018 concerning Guidelines for the Implementation of Imposition, Collection, and Payment/Deposit of Non-Tax Mineral and Coal State Revenues.

"We, APBI, have submitted a request letter to the Minister of ESDM asking for support so that the company can survive during the Pandemic. The government will temporarily revise the regulation until conditions return to normal," Hendra said.

Meanwhile, the proposed revision will be in the form of a change in the formula for calculating royalties in the meantime where royalty payments to the government use the actual selling price which generally uses index-linked.

"So it is not the current system, which uses the Coal Benchmark Price (HPB), because the price trend continues to decline due to oversupply. The company bears a heavy financial burden because the HPB is higher than the actual selling price, some can even reach US$ 5 per ton," he explained.

In addition, APBI also proposes a temporary revision of the Decree related to the royalty payment system so that it can be done at least a month after shipment. The reason is that the regulation stipulates that royalty payments will be made prior to shipment.

"The company is also experiencing cash flow difficulties because royalty payments must be paid before shipping, whereas before depositing royalties to the country can be done 1 month after shipment. At least what is expected by business actors to relax this rule applies for a while about 6 months so the company can survive in the middle "Co-19 pandemic," he said. Editor: Fitri Sartina Dewi

"Adapun selisih antara Harga Jual Aktual vs HPB yang dialami anggota kami bahkan ada yang mencapai US$5 per ton," katanya.

APBI meminta agar pemerintah dalam hal ini Kementerian ESDM merevisi sementara Keputusan Menteri ESDM No. 1823 K/30/ MEM/2018 tentang Pedoman Pelaksanan Pengenaan, Pemungutan, Dan Pembayaran/ Penyetoran Penerimaan Negara Bukan Pajak Mineral dan Batubara.

"Kami APBI telah mengajukan surat per-mohonan ke Menteri ESDM minta dukungan agar perusahaan bisa survive di masa Pandemi pemerintah merevisi sementara beleid itu sampai kondisi kembali normal," ucap Hendra.

Adapun, revisi yang diusulkan berupa per-ubahan formula penghitungan royalti untuk sementara dimana pembayaran royalti ke pemerintah menggunakan harga jual aktual dimana umumnya menggunakan index-linked.

"Jadi bukan dengan sistem sekarang yaitu menggunakan Harga Patokan Batubara (HPB), karena trend harga yang terus menurun akibat oversupply. Perusahaan menanggung beban keuangan yang berat karena HPB lebih tinggi dari harga jual aktual, bahkan ada yang bisa mencapai US$5 per ton," jelasnya.

Selain itu, APBI juga mengusulkan adanya revisi sementara Kepmen terkait sistem pembayaran royalti agar dapat dilakukan paling tidak sebulan sesudah pengapalan. Pasalnya, dalam beleid itu diatur pembayaran royalti dilakukan sebelum pengapalan.

"Perusahaan juga kesulitan cash flow karena pembayaran royalti harus disetor sebelum pengapalan, sedangkan sebelumnya penye-toran royalti ke negara bisa dilakukan 1 bulan setelah pengapalan. Paling tidak yang diharapkan oleh pelaku usaha agar relaksasi aturan ini berlaku untuk sementara sekitar 6 bulan agar perusahaan bisa survive di tengah Pandemi covid-19," ungkapnya. Editor : Fitri Sartina Dewi

IMA-Daily Update Page 6

Affected by Covid-19, mineral and coal mining investment is estimated to drop by 20-25

percent of the target Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

THE CORONA virus pandemic (Covid-19) hit various sectors, including mineral and coal mining. Affected by a pandemic, investment in the mining sector is predicted to drop by around 20-25 percent below this year's target.

ESDM Ministry's Minerba Program Development Director Muhammad Wafid Agung said that the figure was a provisional estimate that was simulated from various factors. Such as commodity price movements that have an impact on the company's business plan, as well as several projects that are hampered, especially in the construction of smelter plants.

"The estimated impact of Covid-19 for the short and medium term is approximately down by 20%-25%. That's just an estimate, the data comes from companies, some from smelters," Wafid told Kontan.co.id, Sunday (7/6).

However, while waiting for the develop-ment of handling Covid-19, Wafid confirmed that the Ministry of ESDM will not officially revise the investment target this year. Even so, the option to change targets remains open for the government to take.

"It could be (revised), but not necessarily. While there is no revision option," said Wafid.

Terdampak Covid-19, investasi tambang minerba diperkirakan

anjlok 20%-25% dari target Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PANDEMI virus corona (Covid-19) meng-

hantam berbagai sektor, tak terkecuali di pertambangan mineral dan batubara (minerba). Terimbas pandemi, investasi di sektor tambang diprediksi ambyar sekitar 20%-25% di bawah target tahun ini.

Direktur Bina Program Minerba Kemen-terian ESDM Muhammad Wafid Agung menyampaikan, angka tersebut merupa-kan perkiraan sementara yang disimulasi-

kan dari berbagai faktor. Seperti dari per-gerakan harga komoditas yang berdampak terhadap rencana bisnis perusahaan, serta beberapa proyek yang terhambat khusus-nya pembangunan pabrik pengolahan dan pemurnian (smelter).

"Perkiraan dampak Covid-19 untuk jangka pendek dan menengah kira-kira turun 20%-25%. Itu baru perkiraan, datanya ada yang dari perusahaan, ada dari smelter," kata Wafid kepada Kontan.co.id, Minggu

(7/6).

Namun, sembari menunggu perkembangan penanganan Covid-19, Wafid menegaskan bahwa secara resmi Kementerian ESDM belum akan merevisi target investasi di tahun ini. Kendati begitu, opsi mengubah target tetap terbuka untuk diambil pemerintah.

"Bisa jadi (revisi), tapi belum tentu. Sementara belum ada opsi revisi," sebut

Wafid.

IMA-Daily Update Page 7

Until May, the realization of mineral and coal investments is still a mini. Ie, only touched US$ 1.1 billion or 14.4% of this year's investment target of US$ 7.75 billion.

In Kontan.co.id's notes, the target set this year is higher than the realization of mineral and coal investments last year. Last year, realization of mineral and coal investments was recorded at US$ 6.5 billion, exceeding the target set at US$ 6.17 billion.

Minerba investment in 2019 is dominated by investments from mining service business licenses (39%), investments in infrastructure and machinery (30%), intangible assets (13%) and others, such as buildings, ships, vehicles and equipment (18%).

Hingga Mei, realisasi investasi minerba terhitung masih mini. Yakni baru menyentuh US$ 1,1 miliar atau 14,4% dari target investasi tahun ini sebanyak US$ 7,75 miliar.

Dalam catatan Kontan.co.id, target yang dipatok tahun ini lebih tinggi dibanding realisasi investasi minerba sepanjang tahun lalu. Pada tahun lalu, realisasi investasi minerba tercatat sebesar US$ 6,5 miliar, melebihi target yang dipatok di angka US$ 6,17 miliar.

Investasi minerba tahun 2019 didominasi oleh investasi dari izin usaha jasa pertambangan (39%), investasi di bidang prasarana dan mesin (30%), aktiva tidak berwujud (13%) dan lainnya, seperti bangunan, kapal, kendaraan dan alat (18%).

Darma Henwa's Revenue Grows 24.64%

By: Ahmad Nabhani

IN THE FIRST quarter of 2020, PT Darma Henwa Tbk (DEWA) posted revenues of US$ 344 million, up 24.64% compared to the same period last year of US$ 276 million. The increase affected the current year's profit growth which was attributable to the owners of the parent entity by 47.45% to US$ 3.76 million, compared to the same period the previous year of US$ 2.55 million. The information was conveyed by the company in its press release in Jakarta yesterday.

The company said that revenue from related parties was the biggest pillar of the company's revenue equivalent to US$ 327, which was sourced from...

Pendapatan Darma Henwa Tumbuh 24,64% Oleh: Ahmad Nabhani

DI KUARTAL pertama 2020, PT Darma Henwa Tbk (DEWA) membukukan penda-patan US$ 344 juta atau naik 24,64% dibandingkan periode sama tahun lalu US$ 276 juta. Peningkatan tersebut berimbas terhadap pertumbuhan laba tahun berjalan yang dapat diatribusikan kepada pemilik entitas induk sebanyak 47,45% menjadi US$ 3,76 juta, dibandingkan periode sama tahun sebelumnya US$ 2,55 juta. Informasi tersebut disampaikan perseroan dalam siaran persnya di Jakarta, kemarin.

Perseroan menyebutkan pendapatan dari pihak berelasi menjadi penopang terbesar pemasukan perseroan setara dengan US$ 327, yaitu bersumber dari...

IMA-Daily Update Page 8

which was sourced from PT Kaltim Prima Coal contributed US$ 236.62 million to PT Arutmin Indonesia amounting to US$ 88.69 million, then PT Dairi Prima Mineral in the amount of US$ 1.84 million, and PT Citra Palu Minerals worth US$ 174 thousand. In addition, the company's pockets were thickened by third party revenues from PT Cakrawala Langit Sejahtera and PT Aneka Tambang (Persero) Tbk (ANTM), which reached US$ 17.30 million.

While the cost of goods strengthened reached US$ 344.64 million until the first quarter of 2020, compared to the same period the previous year of US$ 276.09, so the company's gross profit was corrected 13.21% to US$ 20.71 million, compared to the first quarter of last year US$ 23.81 million. That also caused a decrease in the operating profit segment by 0.89% to Rp 11.16 billion.

Nevertheless the profit for the year attributable to owners of the parent company increased by 47.45% to US$ 3.76 million, compared to the same period last year of US$ 2.55 million. Last year, the company recorded assets of US$ 549.51 million with details of current assets of US$ 204.83 million while non-current assets of US$ 344.68 million.

yaitu bersumber dari PT Kaltim Prima Coal berkontribusi senilai US$ 236,62 juta PT Arutmin Indonesia sebesar US$ 88,69 juta, lalu PT Dairi Prima Mineral sejumlah US$ 1,84 juta, dan PT Citra Palu Minerals senilai US$ 174 ribu. Selain itu, kantong perseroan dipertebal oleh pendapatan pihak ketiga dari PT Cakrawala Langit Sejahtera dan PT Aneka Tambang (Persero) Tbk (ANTM) yang mencapai US$ 17,30 juta.

Sedangkan beban pokok menguat men-capai US$ 344,64 juta sampai kuartal I-2020, dibandingkan periode sama tahun sebelumnya US$ 276,09, sehingga laba bruto perseroan terkoreksi 13,21% men-jadi US$ 20,71 juta, dibandingkan kuartal I tahun lalu US$ 23.81 juta. Hal itu pun menyebabkan penurunan pada segmen laba usaha sebanyak 0,89% menjadi Rp 11,16 miliar.

Kendati demikian laba tahun berjalan yang dapat diatribusikan kepada pemilik entitas induk meningkat hingga 47,45% menjadi US$ 3,76 juta, dibandingkan periode sama tahun laluUS$ 2,55 juta. Tahun lalu, aset perseroan tercatat sebanyak US$ 549,51 juta dengan rincian aset lancar sejumlah US$ 204,83 juta sedangkan aset tidak lancar sebesar US$ 344,68 juta.

Prognosis for 2020 Coal Prices Range from US$ 59 - US$ 61

per ton Yanita Petriella

THE REFERENCE coal price in June was under pressure again, as in 2016, which was US$ 52.98 per ton.

Prognosa Harga Batu Bara 2020 Berkisar US$59 – US$61

per Ton Yanita Petriella

HARGA batu bara acuan Juni kembali mengalami tekanan seperti di 2016 yakni berada di angka US$52,98 per ton.

IMA-Daily Update Page 9

Throughout 2019, the average reference coal price (HBA) stood at US$ 77.89 per ton. Since January 2020, the HBA has fluctuated.

The January HBA recorded figures at US$ 65.93 per ton, down from US$ 66.30 per ton in December 2019. Then it rose in February at US$ 66.89 per ton and in March at US$ 67.08 per ton.

Then HBA declined again in April to reach US$ 65.77 per ton and US$ 61.11 per ton in May.

Chairman of the Indonesian Mining Experts Association (Perhapi) Rizal Kasli believes the June HBA decline of 13.3 percent from the previous month was due to India's lockdown and China oversupply conditions in early May.

"In the second quarter of this year, Indonesia's production and export figures are projected to be lower than last year and the first quarter of 2020 due to the impact of the Covid-19 pandemic," he said.

According to him, the conditions of production and sales in semester 2 to the end of the year will slightly increase compared to the assumption of activity restrictions due to the Covid-19 pandemic, as they have begun to be revoked in various countries so that electricity and industrial needs gradually recover.

ESDM Ministry's Mineral and Coal Revenue Director Johnson Pakpahan projects the price of Indonesian coal by the end of 2020 to be in the range of US$ 59 per ton to US$ 61 per ton.

"There are some that we use as a reference to predict what will be the end of 2020," he said, last weekend.

According to him, the price of coal was under pressure from the oversupply condition of the global market. However, coal prices are expected to bounce back after the Covid-19 pandemic subsides.

Sepanjang 2019, rerata harga batubara acuan (HBA) berada di angka US$77,89 per ton. Sejak Januari 2020, HBA mengalami fluktuasi.

HBA Januari mencatatkan angka di US$ 65,93 per ton, turun dari US$66,30 per ton di Desember 2019. Kemudian naik di Februari US$ 66,89 per ton dan Maret sebesar US$ 67,08 per ton.

Lalu HBA kembali mengalami penurunan di April yang mencapai US$65,77 per ton dan sebesar US$61,11 per ton pada bulan Mei.

Ketua Umum Perhimpunan Ahli Pertam-bangan Indonesia (Perhapi) Rizal Kasli berpendapat penurunan HBA Juni sebesar 13,3 persen dari bulan sebelumnya di-akibatkan lockdown India dan kondisi over-supply China di awal bulan Mei.

"Pada kuartal II tahun ini, angka produksi dan ekspor Indonesia diproyeksikan akan lebih rendah dibanding tahun lalu dan kuartal 1 tahun 2020 akibat dampak pandemic Covid-19," ucapnya.

Menurutnya, kondisi produksi dan pen-jualan di semester 2 sampai akhir tahun akan sedikit meningkat dibandingkan dengan asumsi pembatasan aktivitas akibat pandemik Covid-19, karena mulai dicabut di berbagai negara sehingga kebutuhan listrik dan industri berangsur kembali pulih.

Direktur Penerimaan Mineral dan Batubara (Minerba) Kementerian ESDM Johnson Pakpahan memproyeksikan harga batu bara Indonesia pada akhir tahun 2020 berada di rentang US$59 per ton hingga US$61 per ton.

"Ada beberapa yang kita gunakan sebagai acuan untuk memprediksi nanti sampai akhir 2020 ini seperti apa," ujarnya, akhir pekan lalu.

Menurutnya, harga batu bara tertekan kondisi oversupply pasar global. Namun demikian, harga batubara diperkirakan akan kembali menguat setelah pandemi Covid-19 reda.

IMA-Daily Update Page 10

Chairman of the Indonesian Mining Institute (IMI) Irwandy Arif said the price reduction was due to an ordinary cycle and added by the influence of Covid-19.

"Starting in June, it is expected to have started to rise again," he told Bisnis on Sunday (06/07/2020).

He predicts that coal prices this year will

range from US$ 60 per ton to US$ 80 per ton. Editor: David Eka Issetiabudi

Ketua Indonesian Mining Institute (IMI) Irwandy Arif menuturkan penurunan harga ini karena siklus biasa dan ditambah pengaruh Covid-19.

"Mulai Juni diharapkan sudah mulai naik lagi," katanya kepada Bisnis, Minggu (7/6/2020).

Dia memprediksi harga batu bara di sepanjang tahun ini akan berkisar US$60 per ton hingga US$80 per ton. Editor : David Eka Issetiabudi

Freeport Indonesia Awaits Permit for Extension of Completion of

Copper Smelter Project Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

THE CORONA virus pandemic affected the copper refining and processing or smelter project undertaken by PT Freeport Indonesia. The company is still waiting for the project delays permit which took place at the Java Integrated Industrial and Port Estate (JIIPE), Gresik, East Java.

Freeport Indonesia Vice President Corporate Communication Riza Pratama confirmed, the Ministry of Energy and Mineral Resources (ESDM) had not yet given approval for the request because it was still coordinating with other govern-ment officials.

In April, PTFI submitted a request to the Ministry of ESDM to delay the completion of the smelter for one year. Initially, PTFI's smelter completion target was set for December 2023 at the latest.

However, if the delay really occurs, the new PTFI smelter project will be completed by the end of 2024.

Freeport Indonesia menanti izin perpanjangan penyelesaian

proyek smelter tembaga Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

PANDEMI virus corona cukup mempengaruhi proyek pemurnian dan pengolahan atau smelter tembaga yang digarap oleh PT Freeport Indonesia. Perusahaan ini pun masih menunggu izin penundaan proyek yang ber-langsung di Java Integrated Industrial and Port Estate (JIIPE), Gresik, Jawa Timur tersebut.

Vice President Corporate Communication Freeport Indonesia Riza Pratama mengkonfir-masi, pihak Kementerian Energi dan Sumber Daya Mineral (ESDM) belum memberikan persetujuan atas permintaan tersebut lantaran masih melakukan koordinasi dengan jajaran pemerintah lainnya.

Di bulan April lalu, PTFI telah mengajukan permohonan kepada Kementerian ESDM untuk menunda penyelesaian smelter selama satu tahun. Semula, target penyelesaian smelter PTFI ditetapkan paling lama bulan Desember 2023.

Namun, jika penundaan tersebut benar-benar terjadi, maka proyek smelter PTFI baru akan selesai di akhir tahun 2024 mendatang.

IMA-Daily Update Page 11

At present, PTFI management and contractors still need to conduct a review of the impact of the corona virus on the work on the copper smelter project in Gresik, both in terms of time, labor and logistics. "All aspects will have an impact on project costs," he said, Friday (5/6) evening.

Just so you know, PTFI took Chiyoda from Japan as the main contractor. In addition, PTFI also relies on Finland as a supporter of the Outotec smelter technology. There are also project equipment supplied from Spain and Italy.

Economic activities in these countries are stil l hampered by the corona virus pandemic, which has an effect on the sustainability of the PTFI smelter project.

Furthermore, to finance the smelter project, PTFI requires an investment of US$ 3 billion. The company has plans to withdraw loans from banks totaling US$ 2.8 bill ion. However, the plan was disrupted due to the corona virus pandemic effect.

"PTFI continues to discuss with a number of banks the next steps in financing the smelter project while awaiting further direction from the government," he said.

Contacted separately, the Director of Mineral Development and Exploitation of the Ministry of ESDM Yunus Saefulhak admitted, discussions regarding the extension of the PTFI smelter completion period were still ongoing.

Not only that, the government also discussed the permit to extend the smelter construction which was built by PT Amman Mineral Nusa Tenggara.

"It is being discussed but it must still be in accordance with the amendments to the Minerba Law that have been passed," he said, Friday (5/6).

Saat ini, manajemen PTFI bersama kontraktor masih perlu melakukan tinjauan dampak virus corona terhadap pengerjaan proyek smelter tembaga di Gresik, baik dari segi waktu, tenaga kerja, hingga logistik. “Semua aspek tersebut akan berdampak terhadap biaya proyek,” kata dia, Jumat (5/6) malam.

Asal tahu saja, PTFI menggandeng Chiyoda asal Jepang sebagai kontraktor utama. Selain itu, PTFI juga mengandalkan Finlandia sebagai penyokong teknologi smelter Outotec. Ada juga peralatan proyek yang dipasok dari Spanyol dan Italia.

Kegiatan ekonomi di negara-negara tersebut masih tersendat akibat pandemi virus corona sehingga berpengaruh terhadap kelang-sungan proyek smelter PTFI.

Lebih lanjut, untuk membiayai proyek smelter tersebut, PTFI membutuhkan inves-tasi sebanyak US$ 3 miliar. Perusahaan ini punya rencana untuk menarik pinjaman dari sejumlah perbankan sebesar US$ 2,8 miliar. Namun, rencana tersebut terganggu akibat efek pandemi virus corona.

“PTFI masih terus membahas dengan sejumlah bank mengenai langkah selanjutnya dalam pembiayaan proyek smelter sambil menunggu arahan lebih lanjut dari peme-rintah,” ungkap dia.

Dihubungi secara terpisah, Direktur Pem-binaan dan Pengusahaan Mineral Kemen-terian ESDM Yunus Saefulhak mengaku, pembahasan mengenai perpanjangan masa penyelesaian smelter PTFI masih ber-langsung.

Tak hanya itu, pemerintah juga membahas izin perpanjangan penyelesaian smelter yang dibangun oleh PT Amman Mineral Nusa Tenggara.

“Sedang dibahas tapi tetap harus sesuai dengan perubahan UU Minerba yang sudah disahkan,” ujar dia, Jumat (5/6).

IMA-Daily Update Page 12

Noted Kontan, in the verification report to the Ministry of ESDM, the work of PTFI smelters as of January 2020 reached 4.88% of the total projects. Work on Front End Engineering Design (FEED) for the project has been completed.

The PTFI smelter will have two facilities, namely for processing copper concentrates into copper cathodes and Precious Metal Refinery (PMR) refining facilities.

The copper smelter has an input capacity of 2 million tons of copper concentrate per year and can produce around 550,000-600,000 tons of copper cathode annually.

Catatan Kontan, dalam laporan verifikasi kepada Kementerian ESDM, pengerjaan smelter PTFI per Januari 2020 mencapai 4,88% dari total proyek. Pengerjaan Front End Engineering Design (FEED) untuk proyek tersebut sudah rampung.

Smelter PTFI ini akan memiliki dua fasilitas, yakni untuk pengolahan konsentrat tembaga menjadi katoda tembaga dan fasilitas pemurnian logam berharga atau Precious Metal Refinery (PMR).

Smelter tembaga tersebut memiliki kapasitas input 2 juta ton konsentrat tembaga per tahun dan dapat menghasilkan katoda tembaga

sekitar 550.000-600.000 ton per tahun.

Relaxing Coal Royalties Not Urgent To Do

Yurika

THE COVID-19 pandemic, which has an impact on the global recession, is becoming more widespread because many countries have made a breakdown, causing a decline in mineral commodity prices. However, based on London Metal Exchange (LME) data until April 14, 2020, the downward trend in mineral commodity prices has stalled and tends to be constant, even improving in tin, nickel and copper commodities.

Some market analyzes such as Wood Mackenzie and CRU, in the March 2020 edition predict that commodity price recovery will occur in 2021 in several commodities, such as nickel and tin due to improved supply and demand. The recovery in prices will take longer on copper commodities due to a surplus of supply up to 2023. Aluminum is predicted to improve after 2024 due to smelter capacity that is higher than required.

Relaksasi Royalti Batu Bara Tidak Urgen Dilakukan

Yurika

PANDEMI Covid-19 yang berdampak pada resesi global semakin meluas karena banyak negara melakukan Iockdown , menyebabkan penurunan harga komoditas mineral. Namun, berdasarkan data London Metal Exchange (LME) hingga 14 April 2020, tren penurunan harga komoditas mineral terhenti dan cenderung konstan, bahkan membaik pada komoditas timah, nikel dan tembaga.

Beberapa analisis pasar seperti Wood Mackenzie dan CRU, pada edisi Maret 2020 memprediksikan pemulihan harga komo-ditas akan terjadi pada 2021 pada bebe-rapa komoditas, seperti nikel dan timah yang disebabkan membaiknya supply dan demand. Pemulihan harga akan Iebih lama pada komoditas tembaga karena surplus pasokan hingga 2023. Untuk aluminium diprediksi akan membaik setelah 2024 akibat kapasitas smelter yang Iebih tinggi dari kebutuhan.

IMA-Daily Update Page 13

"Based on the analysis and prediction of commodity prices above, the impact of Covid-19 resulted in a decline in mineral commodity prices towards the lowest price in the last 5 years," said Johnson Pakpahan, Director of PNBP, Directorate General of Mineral and Coal the Ministry of ESDM, in a virtual discussion last weekend.

However, the downward trend is stalled and tends to be constant, even predicted to improve in 2021 so that the srimulus or incentive relief of payment of non-tax obligations to the state need not be done.

Johnson explained, restrictions on coal imports by China, lockdown of ports in India, as well as reduced demand for coal from South Korea, the Philippines, and Japan caused oversupply globally, resulting in a decline in coal prices on the international market.

According to Johnson, relaxation of royalties is not urgent, because after Covid-19 coal commodity prices are predicted to rise again soon. Estimated Non-Tax State Revenues (PNBP) in Minerba will be corrected at Rp 35.9 trillion by the end of 2020.

Based on data from the Directorate General of Mineral and Coal as of June 5, 2020, the realization of PNBP currently reaches Rp14.55 trillion or 40.50% of the revised target of Rp35.93 trillion.

The government previously targeted PNBP in the mineral sector this year could reach Rp.44.40 trillion, assuming production for this year's PNBP target of 550 million tons and the Reference Coal Price (HBA) of US$ 90 per ton with an exchange rate of Rp14,400 according to the agreement of the Indonesian Parliament Budget Agency.

"Delay in payment will disrupt the govern-ment's cash flow. If companies receive payments in advance, the government should also be paid in advance," Johnson said.

“Berdasarkan analisa dan prediksi harga komoditas di atas, dampak Covid-19 meng-akibatkan penurunan harga komoditas mineral menuju harga terendah dalam 5 tahun terakhir,” kata Johnson Pakpahan, Direktur PNBP Ditjen Minerba Kementerian ESDM, dalam diskusi virtual, akhir pekan lalu.

Namun tren penurunan terhenti dan cen-derung konstan, bahkan diprediksi akan membaik pada 2021 sehingga srimulus atau insentif keringanan pembayaran kewajiban bukan pajak kepada negara belum perlu dilakukan.

Johnson menjelaskan, pembatasan impor batu bara oleh Cina, lockdown pelabuhan di India, serta berkurangnya permintaan batu bara dari Korea Selatan, Philipina, dan Jepang menyebabkan oversupply secara global, sehingga mengakibatkan penurunan harga batu bara di pasar internasional.

Menurut Johnson, relaksasi royalti tidak urgen untuk dilakukan, karena setelah Covid-19 harga komoditas batu bara dipre-diksi akan segera naik kembali. Perkiraan capaian Penerimaan Negara Bukan Pajak (PNBP) minerba akan terkoreksi di angka Rp 35,9 triliun hingga akhir 2020.

Berdasarkan data Ditjen Minerba per-5 Juni 2020, realisasi PNBP saat ini mencapai Rp14,55 triliun atau sebesar 40,50% dari revisi target Rp35,93 triliun.

Pemerintah sebelumnya menargetkan PNBP sektor minerba tahun ini bisa mencapai Rp44,40 triliun dengan asumsi produksi untuk target PNBP tahun ini sebesar 550 juta ton dan Harga Batubara Acuan (HBA) US$90 per-ton dengan kurs Rp14.400 sesuai kesepakatan Badan Anggaran DPR RI.

“Penundaan pembayaraan akan menggang-gu cash flow pemerintah. Kalau perusahaan menerima pembayaran di muka, seharusnya pemerintah juga sebaiknya dibayar di muka,” kata Johnson.

IMA-Daily Update Page 14

He added, if the Covid-19 pandemic ends in 2020, the price of coal in 2021 and 2022 is expected to experience an increase, which is due to an increase in energy demand to compensate for the economic slowdown and the many international events held as a result of the 2020 delay.

The average HBA in 201 9 was US$ 77.89/ton, while the average HBA in January - April 2020 was US$ 66.42/ton. IHS Market estimates that coal prices at the end of 2020 will be around US$ 63-64/ton, while projections from Trading Economic are US$ 55/ton. Meanwhile, Barchan estimates prices at the end of 2020 to be US$ 59/ton.

The price of coal at the end of 2021 is estimated to reach US$ 66/ton while at the end of 2022 it is US$ 69/ton (Barchan).

"The price of Indonesian coal at the end of 2020 is estimated to be around US$ 59-61 per ton," Johnson said.

Johnson stressed, in this case the govern-ment needs to accelerate the role of coal as an economic booster by continuing to enlarge the domestic coal demand.

In addition, it is necessary to accelerate the implementation of coal technology (DME, coal gasification and coal liquefaction) so that the carbon value contained in coal can be utilized optimally.

Production limits in the General Plan for National Energy (RUEN) need to be revised and recalculated based on the proportional real conditions of the coal mining industry, zoning coal distribution and state revenue.

"The government needs to immediately make a blueprint of the Indonesian coal infrastructure plan for the strategic interests of the coal supply chain, specifically to manage coal DMOs," said Johnson. (RA)

Dia menambahkan, apabila pandemi Covid-19 berakhir pada 2020, maka harga batubara 2021 dan 2022 diperkirakan mengalaml kenaikan, yang disebabkan antara lain adanya pening-katan kebutuhan energi untuk mengkompen-sasi perlambatan ekonomi serta banyaknya event internasional yang diselenggarakan sebagai akibat penundaan di tahun 2020.

HBA rata-rata 2019 sebesar US$ 77.89/ton, sedangkan HBA rata-rata pada Januari – April 2020 sebesar US$ 66,42/ton. IHS Market memperkirakan harga batu bara pada akhir tahun 2020 berkisar US$ 63-64/ton, sedang-kan proyeksi dari Trading Economic adalah US$ 55/ ton. Sementara itu, Barchan memper-kirakan harga pada akhir 2020 sebesar US$ 59/ton.

Harga batu bara pada akhir tahun 2021 diper-kirakan mencapal US$ 66/ton sedangkan pada akhir tahun 2022 sebesar US$ 69/ton (Barchan).

“Harga batu bara Indonesia pada akhir tahun 2020 diperkirakan berkisar US$ 59-61 per ton,” kata Johnson.

Johnson menekankan, dalam hal ini pemerintah perlu mempercepat peran batu bara sebagai economic booster dengan terus memperbesar kebutuhan batu bara di dalam negeri.

Selain itu, diperlukan percepatan imple-mentasi teknologi batu bara (dme, coal gasification dan coaI liquefaction) agar nilai karbon yang terkandung dalam batu bara dapat dimanfaatkan optimal.

Batasan produksi dalam Rencana Umum Energi Naslonal (RUEN) perlu direvisi dan dihitung kembali atas proporsional kondisi riil industri pertambangan batu bara, zonasi penyebaran batu bara dan pendapatan negara.

“Pemerintah perlu segera membuat blue print Indonesian coal infrastructure plan untuk kepentingan strategis mata rantai pasokan batu bara, khususnya untuk mengelola DMO batu bara,” tandas Johnson. (RA)

IMA-Daily Update Page 15

KLHK Encourages Mining Industry to Manage B3 Waste

into Useful Goods Ihfa Firdausya

GOVERNMENT encourages industries including mineral and coal mining to utilize toxic and hazardous waste (B3) produced as a Circular Economy model. Director General of Waste, Wastewater and Hazardous Toxic Waste Management (PSLB3) Ministry of Environment and Forestry (KLHK) Rosa Vivien Ratnawati said that B3 waste is not something that impedes investment.

The waste, he said, was not just destroyed in an incinerator or landfilled in a landfill. However, B3 waste is expected to be utilized and produce something useful.

"The licensing process for B3 waste management is not difficult. KLHK through PSLB3 is open to all parties who want to communicate and ask questions related to the B3 waste management licensing process," Vivien said as quoted by KLHK official statement, Sunday (7/6).

Technically, Vivien explained that mineral and coal mining activities produce large quantities of B3 waste which will have an impact on the environment. Ore processing activities, whether through flotation or cyanidation techniques in gold and copper mining, produce tailings waste (waste code: B416) containing heavy metal contaminants.

According to him, smelter-smelter processing nickel ore by pyrometallurghy cause waste in the form of nickel slag (B403) in large quantities. Likewise,...

KLHK Dorong Industri Tambang Kelola Limbah B3 Jadi Barang

Berguna Ihfa Firdausya

PEMERINTAH mendorong industri termasuk pertambangan mineral dan batubara untuk memanfaatkan limbah bahan beracun dan berbahaya (B3) yang dihasilkan sebagai model Circular Economy. Direktur Jenderal Penge-lolaan Sampah, Limbah, dan Bahan Beracun Berbahaya (PSLB3) Kementerian Lingkungan Hidup dan Kehutanan (KLHK) Rosa Vivien Ratnawati menyebut limbah B3 bukan sesuatu yang menghambat investasi.

Limbah tersebut, katanya, tidak sekadar dimusnahkan di insinerator atau ditimbun di landfill. Namun, limbah B3 sangat diharap-kan untuk dimanfaatkan dan menghasilkan sesuatu yang berguna.

"Proses perizinan pengelolaan limbah B3 tidak sulit. KLHK melalui PSLB3 terbuka untuk semua pihak yang ingin berkomuni-kasi dan bertanya terkait proses perizinan pengelolaan limbah B3," ungkap Vivien seperti dikutip dari keterangan resmi KLHK, Minggu (7/6).

Secara teknis, Vivien menerangkan bahwa kegiatan pertambangan mineral dan batubara menghasilkan limbah B3 dalam jumlah besar yang akan berdampak terhadap lingkungan. Kegiatan pengolahan bijih (ore), baik melalui teknik flotasi ataupun sianidasi pada pertam-bangan emas dan tembaga, menghasilkan limbah tailing (kode limbah: B416) yang mengandung kontaminan logam berat.

Menurutnya, smelter-smelter pengolahan bijih nikel secara pyrometallurghy menim-bulkan limbah berupa slag nikel (B403) dalam jumlah besar. Demikian juga...

IMA-Daily Update Page 16

Likewise, tin slag waste (B404) from tin mining contains radioactive elements that require special treatment in its manage-ment.

"In the dominant B3 waste coal mining activities that are produced in the form of used lubricant (B105d) from workshop activities and energy generation (generators)," he explained.

Every B3 waste producer is obliged to carry out the management it produces in accordance with Article 3 paragraph (1) of the Republic of Indonesia Government Regulation No. 101/2014 concerning Management of B3 Waste. B3 waste management covers the activities of reducing, storing, collecting, transporting, utilizing, processing and/or landfilling B3 waste.

According to the Director of Performance Assessment of B3 Waste and Non-B3 Waste Management KLHK Sinta Saptarina Soemiarno, several types of B3 waste utilization from mining permits include the use of tailings waste into products such as paving blocks, the use of nickel slag as a road construction material, and the use of used lubricants as mine blasting fuels (ANFO).

"This activity is compiled in books published as best practice on Environment Day (HLH) on June 5 each year, KLHK collaborates with various parties," explained Sinta.

While Chairman of the CoRE Mining Environment & Mine Closure ITB Faculty of Mining & Petroleum Engineering Rudi Sayoga Gautama said that Good Mining Practice needs to be done by large and small mining companies.

According to him, the opportunity to utilize B3 waste for environmental improvement in the mining area is very possible. Among others,...

Demikian juga limbah slag timah (B404) dari pertambangan timah mengandung unsur radioaktif yang memerlukan per-lakuan khusus dalam pengelolaannya.

"Pada kegiatan pertambangan batubara limbah B3 dominan yang dihasilkan berupa pelumas bekas (B105d) dari kegiatan per-bengkelan dan pembangkit energi (genset)," terangnya.

Setiap penghasil limbah B3 wajib melaku-kan pengelolaan yang dihasilkannya sesuai Pasal 3 ayat (1) Peraturan Pemerintah Republik Indonesia Nomor: 101 Tahun 2014 tentang Pengelolaan Limbah B3. Pengelolaan limbah B3 meliputi kegiatan pengurangan, penyimpanan, pengumpulan, pengangkutan, pemanfaatan, pengolahan, dan/atau penimbunan limbah B3.

Menurut Direktur Penilaian Kinerja Penge-lolaan Limbah B3 dan Limbah Non B3 KLHK Sinta Saptarina Soemiarno, beberapa jenis inovasi pemanfaatan limbah B3 dari pertambangan yang diizinkan antara lain pemanfaatan limbah tailing menjadi produk seperti paving block, pemanfaatan slag nikel sebagai material konstruksi jalan, dan pemanfaatan pelumas bekas sebagai bahan bakar peledakan tambang (ANFO).

"Kegiatan ini dikompilasi dalam buku-buku yang dipublikasikan sebagai best practice pada Hari Lingkungan Hidup (HLH) tanggal 5 Juni setiap tahun, kerjasama KLHK dengan berbagai pihak," jelas Sinta.

Sementara Ketua CoRE Mining Environment & Mine Closure Fakultas Teknik Pertam-bangan & Perminyakan ITB Rudi Sayoga Gautama menyampaikan bahwa Good Mining Practise perlu dilakukan perusahaan tambang besar maupun kecil.

Menurutnya, peluang memanfaatkan limbah B3 untuk perbaikan lingkungan di areal tambang sangat memungkinkan. Antara lain...

IMA-Daily Update Page 17

Among others, the use of fly ash and bottom ash as a material covering (encapsulation) acid-forming rocks (PAF) to prevent the formation of acid mine water.

Rudi gave an example, PT. Berau Coal managed to save Rp27.5 billion from the activities of utilizing used oil, used grease and kidney loops in 2019, as well as minimizing the use of resources of 54.45 tons of grease, 973.05 tons of fuel and 1,004 tons of oil.

Meanwhile, PT. Bukit Asam through the innovation of changing vehicles into Hybrid-Dump Trucks can save Rp7.4 billion and reduce the amount of used oil to 129.64 tons in the same year.

The economic value of the application of the circular economy of B3 waste is in fact reaching billions of rupiah. This value will be even greater when added to the multiplier effect.

On the other hand, B3 waste utilization products that already have SNI can be used by the community as collaboration and synergy between circular economy and corporate social responsibility. The key to the success of the two good examples above is innovation and good human resource development. (OL-6)

Antara lain penggunaan fly ash dan bottom ash sebagai material penudung (enkapsulasi) batuan pembentuk asam (PAF) untuk mencegah pembentukan air asam tambang.

Rudi memberikan contoh, PT. Berau Coal berhasil menghemat Rp27,5 miliar dari kegiatan pemanfaatan oli bekas, grease bekas dan kidney loop pada tahun 2019, serta meminimisasi pengunaan sumber daya sebesar 54.45 ton grease, 973.05 ton fuel dan 1.004 ton oli.

Sedangkan, PT. Bukit Asam melalui inovasi penggantian kendaraan menjadi Hybrid-Dump Truck dapat menghemat Rp7,4 miliar dan menurunkan jumlah oli bekas 129,64 ton di tahun yang sama.

Nilai ekonomi dari penerapan sirkular ekonomi limbah B3 faktanya memang mencapai miliaran rupiah. Nilai tersebut akan lebih besar lagi bila dijumlahkan dengan multiplier effectnya.

Di sisi lain, produk-produk pemanfaatan limbah B3 yang telah memiliki SNI dapat digunakan masyarakat sebagai kolaborasi dan sinergi antara sirkular ekonomi dan corporate social responsibility. Kunci keberhasilan dari dua contoh baik di atas adalah inovasi dan pembinaan SDM yang baik. (OL-6)

Reference Coal Price (HBA) Depressed to Level 2016, Cut

Production into Solution? Yanita Petriella

THE REFERENCE coal price (HBA) is expected to remain depressed in the second half of 2020 along with the reduced demand from China and India.

Harga Batu Bara Acuan (HBA) Tertekan ke Level 2016,

Pangkas Produksi Jadi Solusi? Yanita Petriella

HARGA batu bara acuan (HBA) diperkira-kan masih akan tertekan pada semester II/2020 seiring dengan berkurangnya per-mintaan China dan India.

IMA-Daily Update Page 18

As of the latest in June 20202, the HBA was again under pressure as in 2016, which was US$ 52.98 per ton. To note, during 2019, the average reference coal price (HBA) was at US$ 77.89 per ton.

Since January 2020, the HBA has fluctuated. The January HBA recorded figures at US$ 65.93 per ton, down from US$ 66.30 per ton in December 2019. Then it rose in February at US$ 66.89 per ton and in March at US$ 67.08 per ton.

Then HBA declined again in April to reach US$ 65.77 per ton and US$ 61.11 per ton in May.

ESDM Ministry's Mineral and Coal Revenue Director Johnson Pakpahan projects that the price of Indonesian coal at the end of 2020 will be in the range of US$ 59 per ton to US$ 61 per ton.

"There are some that we use as a reference to predict what the end of 2020 will be like," he said, Friday (6/5/2020).

According to him, the price of coal was under pressure from the oversupply condition of the global market. However, coal prices are expected to bounce back after the Covid-19 pandemic subsides.

Chairman of the Indonesian Mining Institute (IMI) Irwandy Arif said the price reduction was due to an ordinary cycle and added by the influence of Covid-19.

"Starting in June, it is expected to have started to rise again," he told Bisnis on Sunday (06/07/2020).

He predicts that coal prices this year will range from US$ 60 per ton to US$ 80 per ton.

Chairman of the Indonesian Mining Experts Association (Perhapi) Rizal Kasli believes the June HBA decline of 13.3 pdfxdn from the previous month was due to India's lockdown and China oversupply conditions at the beginning of May.

Terkini pada bulan Juni 20202, HBA kembali mengalami tekanan seperti di tahun 2016 yakni berada di angka US$52,98 per ton. Untuk diketahui, sepanjang tahun 2019, rerata harga batubara acuan (HBA) berada di angka US$77,89 per ton.

Sejak Januari 2020, HBA mengalami fluktuasi. HBA Januari mencatatkan angka di US$65,93 per ton, turun dari US$66,30 per ton di Desember 2019. Kemudian naik di Februari US$66,89 per ton dan Maret sebesar US$ 67,08 per ton.

Lalu HBA kembali mengalami penurunan di April yang mencapai US$65,77 per ton dan sebesar US$61,11 per ton pada bulan Mei.

Direktur Penerimaan Mineral dan Batubara (Minerba) Kementerian ESDM Johnson Pakpahan memproyeksikan harga batubara Indonesia pada akhir tahun 2020 berada di rentang US$59 per ton hingga US$61 per ton.

"Ada beberapa yang kita gunakan sebagai acuan untuk memprediksi nanti sampai akhir 2020 ini seperti apa," ujarnya, Jumat (5/6/ 2020).

Menurutnya, harga batubara tertekan kondisi oversupply pasar global. Namun demikian, harga batubara diperkirakan akan kembali menguat setelah pandemi Covid-19 reda.

Ketua Indonesian Mining Institute (IMI) Irwandy Arif menuturkan penurunan harga ini karena siklus biasa dan d itambah pengaruh Covid-19.

"Mulai Juni diharapkan sudah mulai naik lagi," katanya kepada Bisnis, Minggu (7/6/2020).

Dia memprediksi harga batubara di sepanjang tahun ini akan berkisar US$60 per ton hingga US$80 per ton.

Ketua Umum Perhimpunan Ahli Pertam-bangan Indonesia (Perhapi) Rizal Kasli berpendapat penurunan HBA Juni sebesar 13,3 pdfxdn dari bulan sebelumnya diakibat-kan lockdown India dan kondisi oversupply China di awal bulan Mei.

IMA-Daily Update Page 19

"In the II/2020 quarter, Indonesia's produc-tion and export figures are projected to be lower than last year and the I/2020 quarter due to the impact of the Covid-19 pandemic," he said.

According to him, the conditions of produc-tion and sales in the second half of 2020 until the end of the year will slightly increase compared to the assumption of activity restrictions due to the Covid-19 pandemic starting to be lifted in various countries, so that electricity and industrial demand gradually recovered.

This momentum of improving economic conditions, is not only National but regional and global, so that coal companies must respond to them by trying to achieve targets in accordance with the approved Work Plan and Budget (RKAB).

He considered companies must be observant to see new markets, not just large markets so that their products can still be absorbed. This challenge is not easy because the company must also continue to implement the Covid-19 epidemic prevention protocol at the operational level of the mine.

If it fails to implement the Covid-19 protocol in the company environment and there are still mine workers who are positively affected by this corona virus, it will have an impact on not achieving the target volume and decreasing productivity.

"Surely the company's target will be corrected if the company does not find a new market and fails to implement the Covid-19 prevention protocol, instead of increasing production, according to the initial RKAB, it is good," Rizal said.

DECREASE PRODUCTION

Rizal added that Indonesia's national production target of 550 million tons so far this year should be adjusted down by 50 million tons to 70 million tons from last year to balance the market with the level of demand that also fell globally, so that coal prices would not erode even greater.

"Pada kuartal II/2020, angka produksi dan ekspor Indonesia diproyeksikan akan lebih rendah dibanding tahun lalu dan kuartal I/2020 akibat dampak pandemic Covid-19," ucapnya.

Menurutnya, kondisi produksi dan penjualan di semester II/2020 sampai akhir tahun akan sedikit meningkat dibandingkan dengan asumsi pembatasan aktivitas akibat pandemi Covid-19 mulai dicabut di berbagai negara, sehingga kebutuhan listrik dan industri berangsur kembali pulih.

Momentum perbaikan kondisi ekonomi ini, bukan hanya Nasional namun regional dan global sehingga harus disikapi oleh perusahaan batubara dengan berusaha mencapai target sesuai dengan Rencana Kerja dan Anggaran Belanja (RKAB) yang sudah disetujui.

Dia menilai perusahaan harus jeli melihat market baru, bukan hanya market besar agar productnya masih bisa diserap. Tantangan ini tak mudah karena perusahaan juga harus tetap menjalankan protokol pencegahan pendemi Covid-19 pada level operasional tambang.

Jika gagal menerapkan protokol Covid-19 di lingkungan perusahaan dan tetap ada pekerja tambang yang positif terkena virus corona ini, maka akan berdampak kepada tidak tercapainya target volume dan penu-runan produktivitas.

"Tentunya target perusahaan akan ter-koreksi jika perusahaan tidak menemukan market baru dan gagal menerapkan protokol pencegahan Covid-19, alih-alih akan menam-bah produksi, sesuai dengan RKAB awal saja sudah bagus," tutur Rizal.

TURUNKAN PRODUKSI

Rizal menambahkan target produksi Indonesia secara nasional yakni sebesar 550 juta ton sepanjang tahun ini, sebaiknya disesuaikan turun sebesar 50 juta ton hingga 70 juta ton dari tahun lalu untuk menyeimbangkan market dengan level permintaan yang juga turun secara global, sehingga harga batubara tidak tergerus lebih besar lagi.

IMA-Daily Update Page 20

"With the national production limitation, coal prices will be able to be raised at a reasonable level, still providing good benefits for the company and related stakeholders," he said.

Rizal projects based on the latest conditions and considers the assumption of economic parameters during 2020, the HBA trend until the end of the year will be stable moving from the level of US$ 50 per ton to US$ 65 per ton.

"This is down compared to last year's HBA in the same period," he said.

Meanwhile, Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said in the second quarter, especially in May, coal conditions were still oversupply due to the sharp decline in demand.

"China is still oversupply, their stockpiles are still quite a lot so imports are reduced. India is still in lockdown, demand is dropping and they are still oversupply so prices are down," he said.

The Chinese coal mining association also predicted demand in the II/2020 quarter would decline after a correction of around 6.8% in the I/2020 quarter due to Covid-19 handling. The market in India will also still be estimated sluggish in the remaining quarter II/2020 in June.

Although the possibility of a lockdown policy will not be continued, the local economy and industry have not been able to fully recover, so that coal demand is still low. The reason is because the local government has also instructed the coal power plant to prioritize their domestic coal supply.

"We are projecting that until the end of this year coal will continue to experience pressure due to oversupply," Hendra said.

"Dengan adanya pembatasan produksi secara Nasional maka harga batubara akan dapat terangkat pada level yang wajar, masih memberikan keuntungan yang baik bagi perusahaan dan stakeholder terkait," ucapnya.

Rizal memproyeksikan berdasarkan kondisi terakhir dan mempertimbangkan asumsi parameter ekonomi selama tahun 2020, trend HBA sampai akhir tahun akan stabil bergerak di level US$50 per ton hingga US$65 per ton.

"Ini turun jika dibandingan dengan HBA tahun lalu dalam periode yang sama," katanya.

Sementara itu, Direktur Eksekutif Asosiasi Pertambangan Baru Bara Indonesia (APBI) Hendra Sinadia mengatakan pada kuartal 2 khususnya Mei, kondisi batubara masih mengalami oversupply karena permintaan mengalami penurunan yang tajam.

"China masih oversupply, stockpile mereka masih cukup banyak sehingga impor ber-kurang. India masih lockdown, demand drop dan mereka masih oversupply jadi harga turun," ujarnya.

Asosiasi pertambangan batubara China juga memperkirakan permintaan di kuartal II/2020 akan turun setelah koreksi sekitar 6,8% pada kuartal I/2020 akibat penanganan Covid-19. Untuk pasar di India juga masih akan diperkirakan lesu di sisa kuartal II/2020 bulan Juni.

Meski kemungkinan kebijakan lockdown tidak akan diteruskan, tetapi ekonomi dan industri setempat belum bisa recovery full, sehingga permintaan batubara masih rendah. Pasalnya, karena pemerintah setempat juga sudah menginstruksikan agar PLTU batubara memprioritaskan pasokan batubara domestik mereka.

"Kami proyeksikan hingga akhir tahun ini kondisi batubara masih terus mengalami tekanan karena mengalami oversupply," kata Hendra.

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Chairman of the Indonesian Mining and Energy Forum (IMEF) Singgih Widagdo said the current decline in HBA was more due to the previous parameter 4 index. But the condition of coal market prices in the Pacific Market, especially China, is currently relatively not down much, even some have flattened or gone up a bit.

"The problem in the southern China region is that it has added to the electricity capacity of the hydropower due to high rainfall. This also directly suppresses the projected increase in Chinese imports, let alone how many local mining companies have also begun operating again," he explained.

According to him, falling coal prices will make companies take efficiency measures. However, if the decline is too deep, the Ministry of ESDM as the principal would have to be involved to save the country's coal industry.

"The same is true in China, the Government has entered the real territory in managing import prices while simultaneously encouraging local mines that have started operations," he said.

He assessed that with the condition of the HBA decline, some companies will remain the same as their production targets this year. There are even some who slightly raise the RKAB even though it is not too extreme.

With the conditions of production limits in the National Energy General Plan (RUEN) which is limited to 400 million tons, steps should be taken to change production in the RUEN.

"The Minister as Chair of the DEN Daily could have done it, but coincidentally the composition of the members of the stake-holders is still vacuum, so administratively it is not easy," he said.

Ketua Umum Indonesian Mining and Energy Forum (IMEF) Singgih Widagdo menuturkan penurunan HBA saat ini lebih karena parameter 4 indeks sebelumnya. Namun kondisi pasar batubara harga di Pasar Pasifik, khususnya Cina, saat ini relatif tidak turun jauh, bahkan sebagian telah flat atau naik sedikit.

"Yang jadi masalah wilayah Cina selatan justru menambah kapasitas listrik dari hydropower akibat hujan cukup tinggi. Ini secara langsung juga menekan proyeksi kenaikan impor Cina, apalagi juga beerapa perusahaan tambang lokal juga mulai ber-operasi kembali," jelasnya.

Menurutnya, harga batu bara yang turun akan membuat perusahaan melakukan langkah efisiensi. Namun, apabila terjadi penurunan yang terlalu dalam, maka Kementerian ESDM sebagai principal justru harus terlibat untuk menyelamatkan industri batu bara Tanah Air.

"Sama hanya di Cina, Pemerintah pun masuk ke wilayah riil dalam mengelola harga impor dengan sekaligus mendorong tambang lokal yang telah mulai ber-operasi," tuturnya.

Dia menilai dengan kondisi turunnya HBA, sebagian perusahaan akan tetap sama target produksi tahun ini. Bahkan ada beberapa yang sedikit menaikkan RKAB meskipun tak terlalu ekstrim.

Dengan kondisi batasan produksi di Rencana Umum Energi Nasional (RUEN) yang sebatas 400 juta ton, semestinya langkah untuk perubahan produksi dalam RUEN harus dilakukan.

"Menteri sebagai Ketua Harian DEN bisa saja melakukan, namun kebetulan kompo-sisi anggota pemangku kepentingan masih fakum, maka secara administrasi tidak mudah," katanya.

IMA-Daily Update Page 22

He suggested that in the future so that production certainty can be more secure for the company in carrying out corporate strategic steps, the RKAB should be done within 5 years.

"The direction of exploration and invest-ment is clearly projected for the corporation. Not every year becomes something that makes the company "excited"," said Singgih. Editor: Hafiyyan

Dia mengusulkan ke depan agar kepastian produksi lebih dapat mengamankan perusahaan dalam melakukan langkah strategis korporasi, semestinya RKAB itu dapat dilakukan dalam 5 tahun.

"Arah eksplorasi dan investasi menjadi terproyeksi jelas bagi korporasi. Bukan setiap tahun menjadi hal yang membuat "deg-degan" perusahaan," ucap Singgih. Editor : Hafiyyan

Still Waiting for Permit to Extend Smelter Project, Amman

Minerals Focuses to Prevent Corona Virus

Reporter: Dimas Andi | Editor: Anna Suci Perwitasari

THE CORONA virus pandemic affected the

mineral mine downstreaming project through the construction of a PT Amman Mineral Nusa Tenggara (AMNT) copper concentrate smelter.

AMNT Head of Corporate Communication Kartika Oktaviana said, AMNT targeted the development of smelter construction by

24.668% until January 2020. However, based on the evaluation results of the six-month progress, the smelter project located in Sumbawa, West Nusa Tenggara (NTB) had only reached 22.974% or approximately 93.13% of the target for the period January 2020.

She also admitted that the work on the AMNT smelter project was hampered by the corona virus pandemic that was sweeping across the world.

Masih tunggu izin perpanjangan proyek smelter, Amman Mineral fokus cegah

virus corona Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

PANDEMI virus corona mempengaruhi

proyek hilirisasi tambang mineral melalui pembangunan pabrik pengolahan dan pemurnian atau smelter konsentrat

tembaga PT Amman Mineral Nusa Tenggara (AMNT).

Head of Corporate Communication AMNT Kartika Oktaviana mengatakan, AMNT

menargetkan perkembangan pengerjaan smelter sebesar 24,668% hingga Januari 2020. Namun, berdasarkan hasil evaluasi progress enam bulanan, proyek smelter yang terletak di Sumbawa, Nusa Tenggara Barat (NTB) tersebut baru mencapai 22,974% atau sekitar 93,13% dari target untuk periode Januari 2020.

Ia pun mengaku pengerjaan proyek smelter AMNT terhambat oleh pandemi virus corona yang melanda seluruh dunia.

IMA-Daily Update Page 23

"Most of the business partners supporting the smelter project are from various countries that have contracted Covid-19 and implemented a lockdown, so the project has stalled," she said, Sunday (7/6).

For your information, the countries of origin of AMNT's business partners in the construction of smelters are China, South Korea, India and Finland.

AMNT management has actually already submitted an application to the Ministry of Energy and Mineral Resources (ESDM) to delay the completion of the smelter project for 12 months-18 months from the initial target set by the government. The request is currently still being processed by the government.

"For the response from the government, it can be asked directly to the Ministry of ESDM," Kartika said.

Previously, ESDM Ministry's Director of Mineral Development and Exploitation Yunus Saefulhak admitted that the process of extending the working period of smelter projects was still being discussed, including the AMNT smelter project. The process will adjust to changes in Law No. 4 of 2009 concerning Minerba Mining which was recently ratified.

If it is postponed, the completion of the 1.3 million ton concentrate smelter project will be delayed from 2022 to the fastest in the coming 2023.

Beyond that, Kartika continued, for now AMNT is focusing on preventing the spread of the corona virus in its mining areas. Various Covid-19 prevention policies have been implemented by AMNT, one of which is limitation of entry and exit of the company's work area.

"We always take good care of the health and safety of employees and families of employees in the Batu Hijau Mine," she concluded.

“Sebagian besar mitra bisnis yang menunjang proyek smelter ini berasal dari berbagai negara yang terjangkit Covid-19 dan menerap-kan lockdown, sehingga proyek tersebut ter-sendat,” ungkap dia, Minggu (7/6).

Sekadar informasi, negara asal mitra bisnis AMNT dalam pembangunan smelter adalah China, Korea Selatan, India, dan Finlandia.

Manajemen AMNT pun sejatinya sudah mengajukan permohonan kepada Kemen-terian Energi dan Sumber Daya Mineral (ESDM) untuk menunda penyelesaian proyek smelter selama 12 bulan-18 bulan dari target awal yang ditetapkan pemerintah. Permohonan tersebut saat ini masih di-proses oleh pemerintah.

“Untuk respon dari pemerintah, boleh di-tanyakan langsung ke Kementerian ESDM,” kata Kartika.

Sebelumnya, Direktur Pembinaan dan Peng-usahaan Mineral Kementerian ESDM Yunus Saefulhak mengaku bahwa pembahasan proses perpanjangan masa pengerjaan proyek-proyek smelter masih dibahas, termasuk proyek smelter AMNT. Proses tersebut akan menye-suaikan dengan perubahan UU No. 4 Tahun 2009 tentang Pertambangan Minerba yang belum lama ini disahkan.

Apabila jadi ditunda, maka penyelesaian proyek smelter berkapasitas 1,3 juta ton konsentrat tersebut akan molor dari tahun 2022 menjadi paling cepat di tahun 2023 mendatang.

Di luar itu, Kartika melanjutkan, untuk saat ini AMNT fokus pada pencegahan penye-baran virus corona di wilayah tambangnya. Berbagai kebijakan pencegahan Covid-19 telah diterapkan oleh AMNT, salah satunya pembatasan keluar-masuk wilayah kerja perusahaan tersebut.

“Kami selalu menjaga betul kesehatan dan keselamatan karyawan dan keluarga karyawan yang ada di Tambang Batu Hijau,” pungkas dia.

IMA-Daily Update Page 24

Luhut Reveals the Reason Behind the Nickel Export Ban

Herdi Alif Al Hikam - detikFinance

THE COORDINATING Minister for

Maritime Affairs and Investment Luhut

Binsar Pandjaitan revealed the govern-ment's reason to stop nickel exports. Luhut is considered as the main reason for the downstreaming of the value added process.

He considered nickel must be produced

into value-added products, then export.

"About the nickel industry, don't let your generation export raw material. We want to export it to batteries, other uses, and stainless steel," Luhut said in an online

discussion via Zoom, Friday (6/5/2020).

With the downstreaming carried out on the nickel commodity according to Luhut Indonesia will have good employment and a lot, then tax revenue will also increase.

Luhut also said that Indonesia must enter

the global supply chain and not become a country that is only a market for foreign products.

"We want the country to have good jobs,

big taxes, we want our industry to be good too. We don't want to be a market, we have to enter the global supply chain, for decades we cannot enter. Now we will go in there," Luhut said.

Luhut also said that the value added of nickel ore is large. He considered that the added value of nickel ore if used as stainless slab alone could increase 10-fold. Meanwhile, with added value, taxes and state revenues will increase.

Luhut Buka-bukaan Alasan di Balik Larangan Ekspor Nikel

Herdi Alif Al Hikam - detikFinance

MENTERI Koordinator Kemaritiman dan Investasi Luhut Binsar Pandjaitan meng-ungkapkan alasan pemerintah menyetop ekspor nikel. Hilirisasi alias proses nilai tambah dinilai Luhut jadi alasan utamanya.

Dia menilai nikel harus diproduksi menjadi produk bernilai tambah, baru kemudian dieskpor.

"Soal industri nikel, jangan sampai generasi kalian ekspor raw material. Kita mau ekspor menjadi baterai, other uses, dan stainless steel," kata Luhut dalam sebuah diskusi online via Zoom, Jumat (5/6/2020).

Dengan hilirisasi yang dilakukan pada komoditas nikel menurut Luhut Indonesia akan memiliki lapangan kerja yang bagus dan banyak, kemudian pemasukan pajak juga akan bertambah.

Luhut juga mengatakan bahwa Indonesia harus masuk ke dalam rantai pasok global dan tidak menjadi negara yang cuma jadi pasar untuk produk dari luar negeri.

"Kita mau negara jadi punya lapangan kerja bagus, pajak besar, mau industri kita jadi bagus juga. Kita nggak mau jadi market saja, kita harus masuk global supply chain, puluhan tahun ini kita nggak bisa masuk. Sekarang kita akan masuk ke situ," ujar Luhut.

Luhut juga mengatakan bahwa nilai tambah bijih nikel besar jumlahnya. Dia menilai nilai tambah bijih nikel bila dijadikan stainless slab saja bisa bertambah 10 kali lipat. Sementara itu, dengan nilai tambah maka pajak dan penerimaan negara akan bertambah.

IMA-Daily Update Page 25

"This added value is what we are after. You Google exports nickel ore 19.25 tons worth US$ 600 million dollars. If it is processed into steel slabs, that is US$ 6 billion, 10 times more," explained Luhut.

"It's a fact who wants to argue me please. The higher the value, also the higher the tax and state income," he said.

Luhut also talked about investors' requirements to enter Indonesia. He said all investments must be in projects that are environmentally friendly, in addition it must be able to educate local workers. He stressed that all investments must have the principle of technology transfer.

"All must be environmentally friendly, then educate our local staff must make. Then transfer technology, all who make invest-ments must have technology transfer, otherwise we don't want to," said Luhut. (hns/hns)

"Nilai tambah ini yang kita kejar. Kalian Google ekspor bijih nikel itu 19,25 ton nilainya US$ 600 juta dolar. Kalau diproses jadi steel slab itu sudah US$ 6 miliar sekian, 10 kali lebih," jelas Luhut.

"Ini fakta siapa mau bantah saya silakan. Semakin tinggi nilai, juga kan semakin tinggi pajak dan pemasukan negara," ujarnya.

Luhut juga bicara soal syarat investor untuk masuk ke Indonesia. Dia mengatakan semua investasi harus pada proyek yang ramah lingkungan, selain itu harus bisa mendidik tenaga lokal. Dia menegaskan semua investasi harus memiliki asas transfer teknologi.

"Semua harus ramah lingkungan, lalu didik tenaga lokal kita harus buat. Kemudian transfer teknologi semua yang bikin investasi harus technology transfer kalau tidak, kita tidak mau," ungkap Luhut. (hns/hns)

Rally Oil, Get Ready for Coal Will Come Jump

Tirta Citradi, CNBC Indonesia

LAST weekend, Newcastle coal prices

closed higher. The increase in oil prices above US$ 40/barrel at the beginning of this week is a positive sentiment for the prices of this leading commodity in Indonesia and Australia.

On Friday (5/6/2020), the reference coal price for busy traded contracts closed at US$ 56.2/ton. The price of black sand rose 1.44% compared to the closing price of the previous day's trade.

Minyak Reli, Siap-siap Batu Bara Bakal Ikut Melesat

Tirta Citradi, CNBC Indonesia

AKHIR pekan lalu, harga batu bara Newcastle ditutup menguat. Kenaikan harga minyak di atas US$ 40/barel di awal pekan ini menjadi sentimen positif untuk harga komoditas unggulan Indonesia dan Australia ini.

Jumat (5/6/2020), harga batu bara acuan untuk kontrak yang ramai diperdagangkan ditutup di level US$ 56,2/ton. Harga pasir hitam naik 1,44% dibanding harga penutupan perdagangan sehari sebelum-nya.

IMA-Daily Update Page 26

Crude oil prices both for the Brent global benchmark and the Uncle Sam State benchmark, namely the West Texas Intermediate (WTI) compact strengthened. Now black gold is traded above US$ 40/barrel.

The increase in crude oil prices was triggered by the decision of Saudi Arabia, Russia and colleagues (OPEC +) to extend

the output cut period by 9.7 million barrels per day (bpd) until July.

Although their uses are different, oil and coal are primary sources of energy. Oil is used for fuel mainly in the transportation sector, while coal is used for power generation and steel making to fertilizer.

The increase in oil prices is clearly a positive sentiment that could push up the price of coal. The increase in coal prices

was also driven by an improving economy.

The ongoing economic opening, especially in coal-consuming countries, is good news for this commodity. Although the Purchasing Manager's Index (PMI) for manufacturing in G20 member countries is still experiencing a contraction, it has shown an increase last month.

The US economy, which was also revived, brought the unemployment rate down to 13.3% in May after the US Department of

Labor reported an additional non-farm payrolls of 2.5 million.

Hilal stretching the economy that is increasingly visible makes the prices of commodities including coal get a blessing. If economic activity continues to be spurred and there are no obstacles, the future price of coal can be stronger and it is possible to jump to US$ 60/ton. CNBC

INDONESIA RESEARCH TEAM (twg/twg)

Harga minyak mentah baik untuk acuan global Brent maupun acuan Negeri Paman Sam yakni West Texas Intermediate (WTI) kompak menguat. Kini emas hitam di-transaksikan di atas US$ 40/barel.

Kenaikan harga minyak mentah dipicu oleh keputusan Arab Saudi, Rusia dan kolega-nya (OPEC+) yang memperpanjang periode pemangkasan output sebesar 9,7 juta barel per hari (bpd) hingga Juli.

Meski penggunaannya berbeda, minyak dan batu bara merupakan sumber energi primer. Minyak digunakan untuk bahan bakar terutama pada sektor transportasi, sementara batu bara untuk pembangkit listrik dan pembuatan baja hingga pupuk.

Kenaikan harga minyak jelas menjadi sentimen positif yang bisa mendongkrak ke atas harga batu bara. Kenaikan harga batu bara juga didorong oleh membaik-nya perekonomian.

Pembukaan ekonomi yang terus ber-langsung terutama di negara-negara konsumen batu bara jadi kabar baik bagi komoditas ini. Walaupun angka Purchasing Manager's Index (PMI) manufaktur di negara-negara anggota G20 masih meng-alami kontraksi, tetapi sudah menunjukkan peningkatan bulan lalu.

Ekonomi AS yang juga kembali dipacu membuat tingkat pengangguran turun menjadi 13,3% di bulan Mei setelah Departemen Tenaga Kerja AS melaporkan ada tambahan pekerjaan (non-farm payrolls) sebesar 2,5 juta.

Hilal geliat ekonomi yang makin terlihat membuat harga-harga komoditas ter-masuk batu bara mendapat berkahnya. Jika aktivitas ekonomi terus dipacu dan tak ada kendala, ke depan harga batu bara bisa semakin menguat dan tak menutup kemungkinan siap melesat ke US$ 60/ton. TIM RISET CNBC INDONESIA (twg/twg)

IMA-Daily Update Page 27

Indonesia to ask Freeport to build copper smelter Reuters

THE INDONESIAN government will ask PT Freeport Indonesia to build a copper smelter in Weda Bay, a newly built metal industrial park in Halmahera, the senior minister overseeing mining said on Friday.

“We have proposed to the president, and the president has agreed, to request Freeport to build a smelter in Weda Bay,” Luhut Pandjaitan, Coordinating Minister of Maritime and Investment Affairs, told a virtual seminar.

He said the government aims to build an integrated smelting hub in Weda Bay and wants to add a copper facility to the nickel hub in the North Maluku province.

The industrial park, controlled by China’s stainless steel giant Tsingshan Holding Group and France’s Eramet, was given a national strategic project status this year and started nickel smelting operations in April.

PT Freeport Indonesia, a local unit of FreeportMcMoRan, which is now 51% controlled by the government, is building a $3 billion smelter in East Java.

Construction of a smelter is part of Freeport-McMoran’s deal with the Indonesian government to maintain its mining rights at the Grasberg mine until 2041.

Ground preparation was under way in East Java, Freeport Indonesia’s chief executive said in February, but the company is requesting a delay to the construction timetable due to coronavirus-related disruptions.

A mining ministry official said it has not received any changes to Freeport’s smelter project yet. Freeport Indonesia had no immediate comment. (By Maikel Jefriando, Wilda Asmarini and Fransiska Nangoy; Editing by Kim Coghill)

Nickel market to evolve as EVs, role-players and projects change By: Donna Slater, Creamer Media Staff Writer and Photographer

THE INTERNATIONAL refined nickel production and trade market will evolve in the coming decade as China's large nickel deficit, driven by the electric vehicle (EV) success story, and Russia's slowly falling nickel surplus, driven by a thin project pipeline, open opportunities for other producers, says financial risk management, solutions and insights company Fitch Solutions Country Risk and Industry Research (Fitch).

The company further notes that Indonesia will be one of the outperformers over the coming years, as it is well positioned to service Chinese demand owing to its close geographical location and rising domestic refined nickel production capacity.

IMA-Daily Update Page 28

In addition, rising nickel production in Japan over the coming years will sustain its growth trend in unwrought nickel exports to top nickel consumers internationally, while the UK and Norway will also have an opportunity to increase production as Europe's falling imports from Russia enable other top European producers to fill the gap.

Fitch states that the growing EV market in China will sustain the country's production balance deficit, increasing demand for refined nickel imports.

The company also expects the increased manufacturing of EVs, alongside growth in stainless steel production, to drive the growing production balance deficit in China. The Chinese EV market in particular, states Fitch, is poised to be a growing source of global nickel demand in the coming years, as nickel is used extensively in the batteries that power these vehicles.

“Our Autos team forecasts Chinese EV sales to grow by an average of 10.1% through to 2029.”

This rise in nickel demand will offset expected refined production growth in the country and support a wider average nickel production deficit in China.

Fitch says China’s nickel production deficit will increase to an average of 244 000 t through 2020 to 2029, compared with an estimated average of 204 000 t over 2010 to 2019.

In this regard, the company notes that the wide deficit will underpin an increase in demand for refined nickel imports. “We expect the opportunity to fill China's production balance deficit will incentivise an increase in smelter capacity, particularly in Indonesia.”

As the Chinese domestic manufacturing sector demands more refined nickel for its activities, smelters will look to capitalise on this opportunity.

However, Fitch forecasts that domestic smelting capacity growth will not be able to supplement this increase, thus requiring additional refined nickel imports. In particular, the company expects Indonesia to ramp up its refined smelting capacity to meet Chinese demand over the medium term.

Further to this, Fitch points out that the Indonesian government recently put in place a nickel ore export ban in January, as it pursues vertical integration in the nickel industry, where refined nickel exports are a higher value-add product.

In terms of production, Fitch note that Indonesian miners are now required to ramp up smelting capacity to begin exporting again, or sell ores to domestic smelters. In this regard, as Indonesian nickel smelting capacity grows, it will be well placed to feed China's growing demand owing to its close geographical position.

Fitch forecasts that Indonesia's refined nickel surplus will grow from about 24 000 t in 2019, to 100 000 t by 2029.

In terms of Japanese production, Fitch states that the country will continue to see refined nickel export growth as an increase in domestic production over the coming years pushes the country into a production balance surplus.

Japan's refined nickel production is set to grow as rising nickel prices and some import tariffs keep the sector competitive.

IMA-Daily Update Page 29

Generally, the company notes that Japan's nickel output stays within its borders to be consumed by domestic industries. However, it expects Japan will shift into a production surplus and smelters will be pressured to export abroad as production growth outpaces consumption growth in the coming years.

Indeed, the country has averaged nickel export growth of 10.4% year-on-year over 2011 to 2019, reaching 20 000 t in 2019, with rising exports to other top nickel consumers such as the US and India.

The US and India bought 16.6% and 12.5% of Japan's unwrought nickel exports respectively in 2019, up from 0.7% and 7.3% in 2011, according to Trade Map data. Fitch states that India, in particular, will experience an increase in nickel import demand owing to a widening nickel deficit.

A declining production surplus in Russia will also open a gap for top European producers such as Norway and the UK to fill the void in the European nickel market, according to Fitch.

“We forecast Russia's refined nickel production growth to begin to stagnate and subsequently decline over the coming years as a weak project pipeline prevents significant refined nickel production growth in the country.”

This will lead to a declining production balance surplus of 172 000 t over 2020 to 2029, compared with 209 000 t over 2010 to 2019.

Fitch notes that Russian nickel primarily supports the European market, making up 99.4% of unwrought nickel exports in 2019. A majority is exported to the Netherlands which serves as a key disbursement hub for the rest of Europe.

With the Russian nickel production surplus set to shrink, the company says this will open a small opportunity for other European producers to fill the void. “We currently forecast a slight uptick in production in both Norway and the UK, the sixth and thirteenth largest nickel producers respectively.”

Metso strengthens equipment, processes, technology and people connections

Posted by Daniel Gleeson

NOW more than ever remote assistance is needed to keep the lights on at many mining operations across the globe.

The onset of COVID-19-related restrictions has focused the industry’s attention on just how far it can and should automate operations and – nearer term – how it can keep downtime to a minimum at its processing plants.

Metso has been investing in the development of new technologies and digital solutions to aid this cause for decades.

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Think of how VisioRock™ and VisioFroth™, combined with Advanced Process Control OCS-4D™, have helped operators monitor rock sizes and flotation efficiency, and optimise production overall, from control rooms far away from where the action is happening. More of its products – such as the recently launched VPX™ filter for tailings dewatering and the Foresight™ smart mining crushing and screening stations – can also be connected to various devices to help monitor equipment.

This wide portfolio of technologies to collect, analyse, and act on data from minerals processing plants was recently combined under its Metso Foresight digital portfolio, which consists of cloud-based IoT and on-premise solutions that collect and analyse machine and process data.

The move has consolidated tools such as the Metso Metrics core remote conditioning monitoring solution and the recently acquired capabilities of HighService Service – which has been providing maintenance and remote monitoring for gearless mill drives for over 20 years – into one integrated solution that mining companies can tap into.

Johanna Newcomb, Vice President, Performance Solutions at Metso, says these recent organic and inorganic investments reflect the company “doubling down” on its digital focus.

“In 2018, we launched Metso Metrics and, in 2019, the acquisition of HighService Service added remote maintenance services to our offering,” she told IM as part of a recent IM Insight Interview.

This year, the company launched its Metso Performance Center solution to keep up this rapid digital momentum.

These centres, currently in Santiago, Chile, and Changsha, China, have been established at just the right time, helping mining companies troubleshoot and carry out maintenance tasks remotely when bringing experts to site may not be possible.

Newcomb explained the rationale for their introduction: “Remote monitoring and analytics, combined with on-site assistance as needed, provides a new, proactive way for Metso to support our customers; to reduce variability of their processes, to optimise the processes and to maximise the use of their assets.”

The creation of the centres has been geared towards leveraging the vast expertise and experience within Metso of equipment, minerals processing and carrying out servicing on a global basis, according to Newcomb.

“The Metso Performance Centers are a new way of funnelling that expertise and data-driven analytics for the benefit of our customers globally,” she said.

While improving process stability, asset reliability and process efficiency and sustaining the improvement over the long term are the key aims of these centres, this type of remote service support could see the philosophy of on-site maintenance teams shift tremendously.

Instead of carrying out ‘firefighting’ tasks, they can focus on proactive elements that optimise the processing plant over the long term, according to Newcomb.

Metso has been able to facilitate such a shift using many of its digital solutions that reside at customer sites such as advanced process control systems, Visio and Audio systems, ore tracking platforms, and others.

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But, how do these service centres make the most of these digital solutions?

Soledad Barbera, Head of Metso Performance Centres, explained: “The services are available globally and provided by a multi-disciplinary team of experts. There are two centres in operation, one in Santiago, Chile, currently supporting all time zones, and one in Changsha, China, which services the Chinese market area.”

In the ‘first line of defence’ at these centres, specialised engineers monitor connected equipment and processes. This sees them scrutinising analytics, interpreting data, and delivering insights and recommendations for actions. Customers – and potentially an on-site team of Metso technicians – receive this information.

Barbera says Metso is in the process of expanding the first line of monitoring in different market areas, increasing the network of monitoring engineers and adding market area satellite locations. “This will provide an interface to get closer to our customers and speak to them in their own language as much as possible,” she told IM in the IM Insight Interview.

In the centre’s ‘second line of defence’ – incorporating more complex problems – expert advisors with broader operational experience and knowledge of the customer’s applications will be drafted in to solve issues.

The ‘third line of defence’ will see the company’s global network of experts mobilise to help support long-term solutions development. This includes reliability engineers and product experts.

Proactive performance

These remote services help Metso ensure desired performance is reached in deliveries and that this performance is sustained or improved further through a long-term service offering, according to Newcomb.

“By closely connecting the remote services with our existing offering, we are able to mobilise required assistance, changes, parts, etc faster, and elevate the level of proactiveness in our deliveries and services overall,” she said.

This has had a tangible impact on operations at the processing plants connected to these centres, according to Barbera.

“With remote diagnostics now offered through the Metso Performance Center, we have helped customers reduce unplanned downtime by 30%,” she said, referencing an example from the company’s gearless mill drive monitoring division (acquired with HighService Service). “We have also helped cut in half the on-site time needed to resolve failures through this remote monitoring service.”

Metso ensures all customer data is protected throughout the exchange, according to Newcomb.

“We have secure, modular connectivity options and fully respect the privacy of our customers’ data,” she said.

This broad offering has already attracted many customers to the centres, with Barbera saying around 100 pieces of equipment and solutions are currently being serviced through the remote facilities. “They are critical assets for our customers,” Barbera explained.

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Expect this number to increase in the very near term, with Metso looking to further broaden the centre’s offering.

“We are expanding the analytics and digital solutions for different types of equipment and services,” Barbera said.

This expansion is very timely.

“The world has changed, and we are living a new way of doing business,” Barbera said. “Many customers want us to support them remotely and continue to be able to give them advice and recommendations.

“With the help of remote services and the latest technologies, Metso is still able to offer expert support to our customers, without a delay.”

This interview is an extract of an IM Insight Interview that will be published later this month

Zijin takes control of Tibet copper miner for $548m Reuter

CHINA’s Zijin Mining Group Co said on Sunday it would pay 3.88 billion yuan ($548 million) to acquire a majority stake in a mining firm with rights to two copper deposits in Tibet.

Best known as a gold miner, Fujian-based Zijin will pay cash for the 50.1% stake in Tibet Julong Copper Co Ltd, operator of the Qulong mine, one of China’s biggest copper deposits, and the Zhibula mine.

The move is aimed at boosting the company’s resource base and achieving sustainable development, Zijin, which is also a major smelter in China, the world’s top copper consumer, said in a filing to the Shanghai Stock Exchange.

Its move to take over a large domestic mine comes as copper smelters fret over raw material supply due to coronavirus-related mine closures around the world.

Zijin is buying the stake from a number of shareholders in Tibet Julong Copper, including Zangge Holding – controlled by billionaire Xiao Yongming – which will retain 24.9% in the venture.

The Qulong mine, for which Tibet Julong’s licence runs until 2037, can produce 30 million tonnes of ore annually, the filing said, adding that the smaller Zhibula mine can produce 1.2 million tonnes a year.

Tibet Julong’s mining rights for Zhibula expire in September but it is in the process of renewing them, Zijin said.

Both mines also contain molybdenum and silver, according to the U.S. Geological Survey.

The sellers will be granted compensation if the Phase 2 150,000-tonne-per-day mining and ore processing project at Qulong fulfils conditions set out in the sales agreement, Zijin said in the filing, without elaborating. (By Tom Daly; Editing by Jason Neely)

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China's coal imports fall nearly 20% in May even as demand rises

CHINA’s coal imports in May fell nearly 20% compared with a year earlier even as demand recovered at power plants and industrial users, customs data showed on Sunday.

Analysts and industrial participants had expected China to tighten coal import rules in the second half of 2020 to support domestic miners, and imports starting in July may drop by as much as a quarter from the corresponding 2019 period.

Sunday’s data showed the country imported 22.06 million tonnes of coal last month, according to the General Administration of Customs released on Sunday. That compares with 30.95 million tonnes in April and 27.47 million tonnes in May 2019.

In the first five months of this year, China brought in 148.71 million tonnes of the fuel, up 16.8% from the same period last year.

Electricity consumption has been rising among both industrial and residential users as firms are ramping up production amid the economic recovery after the loosening of restrictions to curb the coronavirus outbreak, while households started to crank up their air conditioning because of warmer weather.

Curtailed hydropower generation, alongside falling water stocks at major reservoirs in the country, also shored up coal demand.

Average daily coal usage at China’s six major coal-fired utilities in coastal regions reached about 628,500 tonnes in May, which is 15% higher than in April and also 7.7% more than a year earlier, according to information from financial data provider Wind.

(Reporting by Muyu Xu and Tom Daly; Additional Reporting by Yawen Chen; Editing by Christian Schmollinger and Gerry Doyle)

SA coal exports may have peaked: Anglo American Sibongile Khumalo

ANGLO American says the country’s coal exporting capacity may have reached its peak with the Witbank coal belt in Mpumalanga reaching its maturity.

“The future of our coal in SA is in the Lephalale-Waterberg basin (Limpopo),” July Ndlovu, Anglo American Coal CEO, said in an interview with FIN24 Speaks, adding that the infrastructure required to export the coal was not in place.

Some of the Waterberg region’s coal reserves are as high as 75 billion tonnes, about 40 percent of all remaining reserves.

“Given our competing economic needs as a country, it would take us sometime to invest in that infrastructure.”

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In May, Anglo American revealed that it plans to exit coal mining in the country, in what is seen as a major shift away from carbon-intense operations. The company said it was working towards a possible de-merger of its thermal coal operations as a likely preferred exit option, adding that the process was expected in the next two to three years, with a primary listing on the JSE for the de-merged business.

The company in March 2018, announced that it had completed of the sale of its Eskom-tied domestic thermal coal operations to Seriti Resources, in a deal worth R2,3 billion.

Anglo American Coal said diversifying its export markets away from India helped it navigate the impact of economic impact of Covid-19 lockdown.

South Africa’s export coal market was heavily impacted by the slump in demand due to a hard lockdown implemented by India, which is a major destination for local coal. But a move taken by the miner diversify its export markets placed in a better position, Ndlovu said.

“We took a decision about a year or 18 months ago to diversify our market, we started selling some our coal to markets like Vietnam, South Korea and Pakistan. As a consequence of that, we were able to significantly mitigate the demand shortfall.”

“As economies are beginning to come out of the lockdown, we could start to see demand picking up. Prices suffered quite heavily, but they have somewhat recovered. . . but we are nowhere near where we need to,” said Ndlovu.

Although Anglo American no longer supplies Eskom with coal, the state-owned power generator, which is the biggest coal user in the country, informed miners in April that it won’t take deliveries as a result of lower demand caused by the national lockdown in late March.

Carbon intensive industries around world are under increasing pressure to reduce CO2 emissions, as part of plans to mitigate the damaging effects of climate change. Renewable energy sources are increasingly seen as an alternative coal-generated electricity, which is the mainstay of many developing economies including South Africa.

Like other mining companies around the country, Anglo’s coal operations are ramping up production following the easing of lockdown regulations, with open-cast mines operating at full capacity. –fin24.com