IMA-Daily Update Page 1

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After purchasing 20% of Vale (INCO)'s shares, Mind Id is still expanding and working on downstream projects Usai beli 20% saham Vale (INCO), Mind Id masih gencar ekspansi dan garap proyek hilir Coal Producers Welcome 0 Percent Royalties, but... Produsen Batu Bara Sambut Baik Royalti 0 Persen, tetapi... Crowded Discussed, This Is What Is A Reserved Resilience Fund Ramai Dibahas, Ini Yang Dimaksud Dana Ketahanan Cadangan Erick Thohir: Acquisition of Vale Shares Encourages Strengthening Downstream of the Nickel Industry Erick Thohir: Akuisisi Saham Vale Dorong Penguatan Hilirisasi Industri Nikel Coal is subject to VAT in the Omnibus Law on Job Creation Batu Bara Kena PPN dalam Omnibus Law Cipta Kerja Copper prices slipped, China moved away from the market Harga tembaga tergelincir, China menjauh dari pasar Erick's Ambition for Electric Car Batteries After the Acquisition of Vale Indonesia (INCO) Ambisi Erick untuk Baterai Mobil Listrik setelah Akuisisi Vale Indonesia (INCO) The Job Creation Law Regulates the Authority of Rare Earth Metals, Thorcon Has the Opportunity to Develop a Thorium Plant UU Cipta Kerja Atur Kewenangan Logam Tanah Jarang, Thorcon Berpeluang Kembangkan Pembangkit Thorium Coal Prices Drop Again to US$ 60/ton, What Happened? Harga Batu Bara Anjlok Lagi ke US$ 60/ton, Ada Apa Nih? Indonesian State miner completes 20% stake buy in Vale unit for $375m CIMIC nears sale of Thiess stake

Kontan Bisnis Dunia Tambang Investor Daily CNN Indonesia Kontan Bisnis Dunia Energi CNBC Indonesia Mining Weekly Australian Mining

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Newcrest approves flagship Cadia mine’s expansion Orica and FRAGTrack recognised for innovative streak in AFR list It’s Not Supposed To Be Happening, But Coal Prices Are Rising

Mining.com Int'l Mining Forbes

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IMA-Daily Update Page 3

After purchasing 20% of Vale (INCO)'s shares, Mind Id is still

expanding and working on downstream projects

Reporter: Ridwan Nanda Mulyana | Editor: Khomarul Hidayat

THE PARENT company or state-owned

mining holding company, Mining and Industry Indonesia (Mind Id) has completed the purchase transaction of 20% divestment shares of PT Vale Indonesia Tbk (INCO). It doesn't stop there, Mind Id also ensures that it will continue to expand both from the upstream side of the mine and downstream projects.

Mind Id's Senior Vice President for Corporate Secretary Rendi Witular said that after officially acquiring 20% of INCO's shares, Mind Id or even its subsidiaries will take other corporate act ions in developing their business. Unfortunately, Rendi is still reluc-tant to reveal which projects or expansion to which mining companies are being targeted by the state-owned mining holding.

"There is (a corporate action plan and expansion). But it's still a secret," said Rendi to Kontan.co.id, Thursday (8/10).

However, Rendi gave a leak, from the upstream side of the next expansion mine that will be carried out in the near future is the development of the Wabu Block. As is well known, the gold mine resulting from the shrinkage of the PT Freeport Indonesia (PTFI) area will be managed by PT Aneka Tambang Tbk (ANTM).

Rendi emphasized that the expansion plan from the upstream side would coincide with the completion of a number of downstream projects being worked on by Mind Id's subsidiaries.

Usai beli 20% saham Vale (INCO), Mind Id masih gencar

ekspansi dan garap proyek hilir Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

INDUK usaha atau holding pertambangan

BUMN, Mining and Industry Indonesia (Mind Id) telah menuntaskan transaksi pembelian 20% saham divestasi PT Vale Indonesia Tbk (INCO). Tak berhenti di situ saja, Mind Id pun memastikan akan terus menggelar ekspansi baik dari sisi hulu tambang maupun proyek-proyek hilirisasi.

Senior Vice President Corporate Secretary Mind Id Rendi Witular mengatakan, setelah resmi mengakuisisi 20% saham INCO, Mind Id atau pun anak-anak usaha-nya akan melakukan aksi korporasi lain dalam pengembangan bisnisnya. Sayang-nya, Rendi masih enggan membeberkan, proyek atau ekspansi ke perusahaan tambang mana saja yang sedang diincar holding tambang plat merah tersebut.

"Ada (rencana aksi korporasi dan ekspansi). Tapi masih rahasia," sebut Rendi kepada Kontan.co.id, Kamis (8/10).

Namun, Rendi memberikan bocoran, dari sisi hulu tambang ekspansi berikutnya yang akan dikerjakan dalam waktu dekat ini ialah pengembangan Blok Wabu. Sebagaimana diketahui, tambang emas hasil penciutan wilayah PT Freeport Indonesia (PTFI) tersebut bakal dikelola oleh PT Aneka Tambang Tbk (ANTM).

Rendi menegaskan, rencana ekspansi dari sisi hulu itu akan beriringan dengan penyelesaian sejumlah proyek hilirisasi yang sedang dikerjakan oleh anak-anak usaha Mind Id.

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"There are several (expansion plans). One of them is the Wabu (Block). At the same time, Mind Id and its subsidiaries are focused on working on downstream projects," said Rendi.

The downstream project includes a 1 million ton smelter grade alumina refinery (SGAR) project located in Mempawah, West Kalimantan. The project is being worked on by PT Inalum (Persero) and Antam.

In addition, there is also a PT Freeport Indonesia copper smelter project located in Gresik, East Java. Moreover, the smelter project with a capacity of 2 million tons has encountered obstacles, both because of Covid-19 and due to business and economic calculations.

The closest thing is the Aneka Tambang ferronickel smelter project in East Halmahera, which should be able to operate commercially, but is constrained by the procurement of power plants.

For information, Mind Id together with INCO's majority shareholders, namely Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM), has completed the purchase transaction of 20% PTVI divestment shares on Wednesday (8/10).

VCL has divested 14.9% of its shares and SMM's 5.1% at Rp 2,780 per share or a total of Rp 5.52 trillion. With the completion of this transaction, share ownership in PTVI will change to VCL 44.3%, Mind Id 20%, SMM 15%, and the public 20.7%.

Mind Id Orias Group CEO Petrus Moedak stated that the completion of this transaction marked the start of a long-term strategic partnership between Mind Id and INCO. The government appointed PT Indonesia Asahan Aluminum (Persero), which is now known as Mind Id as the government's representative in the imple-mentation of this share divestment.

"Ada beberapa (rencana ekspansi). Salah satunya (Blok) Wabu. Berbarengan dengan itu, Mind Id dan anak usaha foku s menggarap proyek-proyek hilirisasi," kata Rendi.

Proyek hilirisasi tersebut antara lain proyek smelter grade alumina refinery (SGAR) berkapasitas 1 juta ton yang berlokasi di Mempawah, Kalimantan Barat. Proyek tersebut digarap oleh PT Inalum (Persero) dan Antam.

Selain itu, ada juga proyek smelter tembaga PT Freeport Indonesia yang berlokasi di Gresik, Jawa Timur. Apalagi, proyek smelter berkapasitas 2 juta ton ini mengalami hambatan, baik karena covid-19 maupun karena perhitungan bisnis dan keeko-nomian.

Yang terdekat adalah proyek smelter feronikel Aneka Tambang di Halmahera Timur yang seharusnya bisa beroperasi komersial, namun terkendala pengadaan pembangkit listrik.

Sebagai informasi, Mind Id bersama dengan para pemegang saham mayoritas INCO, yaitu Vale Canada Limited (VCL) dan Sumitomo Metal Mining Co. , Ltd. (SM M), telah menuntaskan transaksi pembelian 20% saham divestasi PTVI pada Rabu (8/10).

VCL telah melepas sahamnya sebesar 14,9% dan SMM sebesar 5,1% seharga Rp 2.780 per lembar saham atau senilai total Rp 5,52 triliun. Dengan selesainya transaksi ini, kepemilikan saham di PTVI berubah menjadi VCL 44,3%, Mind Id 20%, SMM 15%, dan publik 20,7%.

Group CEO Mind Id Orias Petrus Moedak menyatakan, tuntasnya transaksi ini menandai dimulainya kerja sama strategis jangka panjang antara Mind Id dan INCO. Pemerintah menunjuk PT Indonesia Asahan Aluminium (Persero), yang sekarang dikenal dengan Mind Id sebagai wakil pemerintah dalam pelaksanaan divestasi saham ini.

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The divestment of 20% of INCO's shares is an obligation of the 2014 Contract of Work

(COW) amendment between PTVI and the Government of the Republic of Indonesia.

According to Orias, Mind Id's participation

in world-class mining companies, such as PTVI (Brazil/Canada/Japan) and PT

Freeport Indonesia (United States), is proof of Indonesia's success in maintaining

and attracting investment from global companies to the national mining industry.

"The collaboration between Mind Id and

PT Vale Indonesia will be a mutually beneficial and complementary synergy to

advance the mining industry. This is also proof of the confidence of world-class

companies in Mind Id,” said Orias in a written statement to Kontan.co.id,

Thursday (8/10).

Orias said, in implementing this

transaction, Mind Id was assisted by various stakeholders and a number of

consultants including BNP Parib as, Shearman & Sterling and Melli Darsa & Co.,

EY Indonesia, AMC Consultants and Ruky, Safrudin & Partners.

He continued, Mind Id's participation in

INCO is a strategic step so that Indonesia can take a strong position to secure the

supply of nickel -based downstream industry raw materials. This commodity is

a strategic and important resource for the world where nickel has become the main

raw material for batteries for electric vehicles and also for electricity storage

infrastructure.

Divestasi 20% saham INCO ini merupakan kewajiban dari amandemen Kontrak Karya (KK) di tahun 2014 antara PTVI dan Pemerintah Republik Indonesia.

Menurut Orias, partisipasi Mind Id di perusahaan tambang kelas dunia, seperti PTVI (Brasil/Kanada/Jepang) dan PT Freeport Indonesia (Amerika Serikat), merupakan bukti keberhasilan Indonesia dalam menjaga dan menarik investasi perusahaan global ke industri pertam-bangan nasional.

“Kerjasama Mind Id dan PT Vale Indonesia akan menjadi sinergi yang saling meng-untungkan dan saling melengkapi untuk memajukan industri pertambangan. Ini juga menjadi bukti kepercayaan per-usahaan-perusahaan kelas dunia terhadap Mind Id,” ujar Orias lewat keterangan tertulis yang disampaikan kepada Kontan.co.id, Kamis (8/10).

Orias menyebut, dalam pelaksanaan transaksi ini, Mind Id dibantu berbagai pihak pemangku kepentingan dan sejumlah konsultan diantaranya BNP Paribas, Shearman & Sterling dan Melli Darsa & Co ., EY Indonesia, AMC Consultants dan Ruky, Safrudin & Rekan.

Dia melanjutkan, partisipasi Mind Id di INCO menjadi langkah strategis agar Indonesia dapat mengambil posisi yang kuat untuk mengamankan pasokan bahan baku industri hilir berbasis nikel. Komoditi ini adalah salah satu sumber daya strategis dan penting bagi dunia dimana nikel telah menjadi bahan baku utama baterai untuk kendaraan listrik dan juga untuk infra-struktur penyimpan listrik.

IMA-Daily Update Page 6

Coal Producers Welcome 0 Percent Royalties, but...

Denis Riantiza Meilanova

COAL producers have a positive view of the provisions in the Job Creation Law which regulates the imposition of a royalty of 0 percent for business actors who increase the added value of coal.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that fiscal and non-fiscal incentives are needed by entrepreneurs to carry out downstreaming. Coal extraction projects require a large and long-term investment so they need support to achieve the project's economies of scale.

"We appreciate the 0 percent tariff for coal which is used for coal development or downstreaming because coal down-streaming requires a large and long-term investment," Hendra said when contacted by Bisnis, Thursday (8/10/2020).

However, according to him, apart from reducing the royalty rate, other incentives are still needed, including non-fiscal incentives. Several incentives considered capable of spurring the coal downstream program include exemption from import tax on EPC (engineering procurement and construction) goods and VAT (value added tax) on product sales.

Then from the non-fiscal side, it is also necessary to guarantee the existence of a buyer and guarantee to determine the selling price of the resulting downstream products.

Based on the draft of the Job Creation Bill obtained by Bisnis, the regulation on the imposition of a 0 percent royalty is stated in paragraph 5 of the Energy and Mineral Resources cluster.

Produsen Batu Bara Sambut Baik Royalti 0 Persen, tetapi...

Denis Riantiza Meilanova

PRODUSEN batu bara memandang positif

ketentuan dalam Undang-Undang Cipta Kerja yang mengatur mengenai pengenaan royalti sebesar 0 persen bagi pelaku usaha yang me-lakukan peningkatan nilai tambah batu bara.

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan bahwa insentif fiskal dan nonfiskal sangat dibutuhkan pengusaha untuk menjalankan penghiliran. Proyek peng-hiliran batu bara membutuhkan investasi yang besar dan jangka panjang sehingga membutuhkan dukungan untuk mencapai skala keekonomian proyek.

"Kami apresiasi tarif 0 persen untuk batu bara yang digunakan untuk pengembangan batu bara atau hilirisasi karena memang hilirisasi batu bara membutuhkan investasi yang besar dan jangka panjang," ujar Hendra ketika dihubungi Bisnis, Kamis (8/10/2020).

Namun, menurutnya, selain pengurangan tarif royalti tersebut, insentif lainnya juga masih diperlukan, termasuk insentif non-fiskal. Beberapa insentif yang dinilai mampu memacu program penghiliran batu bara antara lain pembebasan pajak impor barang-barang EPC (engineering procurement and construction) dan PPN (pajak pertambahan nilai) penjualan produk.

Kemudian dari sisi nonfiskal, juga diperlukan adanya jaminan adanya pembeli dan jaminan penetapan harga jual produk penghiliran yang dihasilkan.

Berdasarkan draf RUU Cipta Kerja yang di-peroleh Bisnis, aturan pengenaan royalti 0 persen tercantum dalam paragraf 5 klaster Energi dan Sumber Daya Mineral.

IMA-Daily Update Page 7

Between Articles 128 and 129 is inserted one article, namely Article 128A which reads: business actors that increase the added value of minerals and coal can be given certain treatment of state revenue obligations.

Giving certain treatment to the state revenue obligation as referred to for activities to increase the added value of coal may take the form of the imposition of a royalty of 0 percent.

Director & Corporate Secretary of PT Bumi Resources Tbk. (BRMS) Dileep Srivastava views positively on the provisions in the Job Creation Law for the coal sector.

"The application of the omnibus law in all its positive aspects, including the conversion of the status of PKP2B [coal mining concession work agreement] to IUPK [special mining business license]. Incentives for downstream projects, such as coal gasification can be seen as a positive development," he said.

PT Kaltim Prima Coal (KPC), a subsidiary of BRMS, is working on a coal gasification project into methanol in Bengalon, East Kalimantan which is planned to operate in 2024. Editor: Zufrizal

Di antara Pasal 128 dan 129 disisipkan satu pasal, yakni Pasal 128A yang berbunyi: pelaku usaha yang melakukan peningkatan nilai tambah mineral dan batu bara dapat diberikan perlakuan tertentu terhadap kewajiban penerimaan negara.

Pemberian perlakuan tertentu terhadap kewajiban penerimaan negara sebagai-mana dimaksud untuk kegiatan pening-katan nilai tambah batu bara dapat berupa pengenaan royalti sebesar 0 persen.

Direktur & Corporate Secretary PT Bumi Resources Tbk. (BRMS) Dileep Srivastava memandang positif ketentuan dalam UU Cipta Kerja untuk sektor batu bara.

"Penerapan omnibus law dalam segala aspek positifnya termasuk konversi status PKP2B [perjanjian karya pengusahaan pertambangan batu bara] menjadi IUPK [izin usaha pertambangan khusus]. Insentif untuk proyek penghiliran, seperti gasifi-kasi batu bara dapat dipandang sebagai perkembangan positif," ujarnya.

PT Kaltim Prima Coal (KPC), anak usaha BRMS, tengah menggarap proyek gasifikasi batu bara menjadi metanol di Bengalon, Kalimantan Timur yang rencananya ber-operasi pada 2024. Editor : Zufrizal

Crowded Discussed, This Is What Is A Reserved Resilience Fund Author: Edo Fernando, Editor: Umar RP.

LAW No.3 of 2020 concerning Minerals and

Coal states that those who have a Mining Business Permit (IUP) or a Special Mining Business Permit (IUPK), are required to provide a reserves resilience fund for every operation and production activity.

Ramai Dibahas, Ini Yang Dimaksud Dana Ketahanan Cadangan

Penulis : Edo Fernando, Editor : Umar RP.

UNDANG-Undang No.3 Tahun 2020 mengenai Mineral dan Batubara menyebutkan bahwa mereka yang memiliki Izin Usaha Pertam-bangan (IUP) maupun Izin Usaha Pertam-bangan Khusus (IUPK), wajib menyediakan dana ketahanan cadangan pada setiap kegiatan operasi dan produksi.

IMA-Daily Update Page 8

Then when referring to Article 112A of Law No. 3, as for the use of the reserve

resilience fund later for discovering new reserves. However, more broadly the

provisions of this reserve resilience fund are regulated through a Government

Regulation.

Then regarding the amount of reserve resilience funds will be proposed in the

Work Plan and Budget (RKAB) which is carried out annually. Further on this

provision, will be regulated in a Ministerial Regulation.

Even though it is being discussed, there are

still many who do not really understand and understand about this reserve

resilience fund. So, what is meant by the reserve resilience fund?

According to Djoko Widajatno Soewanto, as Acting Executive Director of the

Indonesian Mining Association, in the mineral economy this reserve resilience

fund can also be called a depletion. This is a method that has the function of reducing

tax payments along with the amortization and depreciation value which is deducted

on EBITDA.

Theoretically, Djoko Widajatno explained that the amount is around 3 to 5 percent of

the company's total profit. However, these funds are kept in an account owned by the

company.

For information, this reserve resilience fund can be considered as a trial step by

the government. So that the method is not widely known in the mining accounting

system in Indonesia.

So far, the government has not yet decided

on the amount of reserve resilience funds required to mining companies. However,...

Lalu jika merujuk pada Pasal 112A Undang-Undang No. 3 tersebut, adapun kegunaan dari dana ketahanan cadangan nantinya untuk kegiatan penemuan cadangan yang baru. Akan tetapi secara lebih luas mengenai ketentuan dari dana ketahanan cadangan ini diatur melalui Peraturan Pemerintah.

Kemudian mengenai besaran dana ketahanan cadangan akan diusulkan dalam Rencana Kerja dan Anggaran Biaya (RKAB) yang dilaksanakan secara tahunan. Lebih lanjut mengenai ketentuan ini, akan diatur dalam Peraturan Menteri.

Meski sedang ramai diperbincangkan, masih banyak yang belum benar-benar bisa mengerti dan memahami mengenai dana ketahanan cadangan ini. Lantas, seperti apa yang dimaksud dengan dana ketahanan cadangan tersebut?

Menurut Djoko Widajatno Soewanto, selaku Plt Direktur Eksekutif Asosiasi Pertambangan Indonesia, dalam ekonomi mineral dana ketahanan cadangan ini bisa disebut juga dengan depletion. Ini merupakan sebuah metode yang memiliki fungsi guna mengurangi pembayaran pajak bersama dengan nilai amortisasi dan depresiasi yang dikurangkan pada EBITDA.

Secara teoritis, Djoko Widajatno mene-rangkan bahwa besarnya sekitar 3 sampai 5 persen dari total laba perusahaan. Akan tetapi dana tersebut disimpan di rekening yang dimiliki perusahaan.

Sebagai informasi dana ketahanan cadangan ini bisa dianggap merupakan langkah uji coba dari pemerintah. Sehingga metodenya belum banyak dikenal dalam sistem akuntansi pertambangan yang ada di Indonesia.

Sejauh ini dari pihak pemerintah memang belum memutuskan berapa besaran dana ketahanan cadangan yang diwajibkan kepada perusahaan tambang. Namun...

IMA-Daily Update Page 9

However, a number of proposals have emerged from various mining business groups, such as the Geological and Mining Association. His party suggested to the government that the reserve security fund that could be imposed was 1 percent of the company recorded profits.

In a number of countries with industrial and economic development, the amount of reserve resilience funds they apply can reach 2.5 percent to 10 percent of the total net profit of the company.

The government also admits that it is likely that it will look at the scale of the company first as a determining factor. So that the regulation will not interfere with the company's cash flow. Thus, it is possible that large-scale companies will be subject to the obligation to provide greater reserve security funds compared to small-scale companies.

Namun sejumlah usulan muncul dari ber-bagai kelompok usaha tambang, seperti Asosiasi Geologi dan Pertambangan. Pihak-nya mengusulkan kepada pemerintah bahwa dana ketahanan cadangan yang bisa dikenakan yakni sebesar 1 persen dari laba yang dicatatkan perusahaan.

Di sejumlah negara yang sudah maju industri dan perekonomiannya, jumlah besaran dana ketahanan cadangan yang mereka terapkan bisa mencapai angka 2,5 persen sampai dengan 10 persen dari jumlah laba bersih perusahaan.

Pemerintah pun mengaku kemungkinan besar pihaknya akan melihat skala dari perusahaan terlebih dahulu sebagai faktor penentu. Sehingga aturan tersebut nantinya tidak akan mengganggu arus kas perusahaan. Dengan demikian, bisa saja perusahaan berskala besar akan dikenakan kewajiban menyediakan dana ketahanan cadangan yang lebih besar di-

bandingkan perusahaan yang berskala kecil.

Erick Thohir: Acquisition of Vale Shares Encourages Strengthening

Downstream of the Nickel Industry Thereis Love Kalla

(thereis.kalla@beritasatumedia.com)

THE MINISTRY of State-Owned Enter-prises (BUMN) assesses the acquisition of 20% shares of PT Vale Indonesia (INCO) by PT Indonesia Asahan Aluminum (Inalum) or Mining Industry Indonesia (MIND ID) as an important step in the downstreaming of the national mining industry.

BUMN Minister Erick Thohir said the purchase transaction of 20% divestment shares in Vale Indonesia owned by Vale Canada Limited (VCL) and Sumitomo Metal Mining Co., Ltd. (SMM) increases state share ownership in the mining sector.

Erick Thohir: Akuisisi Saham Vale Dorong Penguatan Hilirisasi

Industri Nikel Thereis Love Kalla

(thereis.kalla@beritasatumedia.com)

KEMENTERIAN Badan Usaha Milik Negara (BUMN) menilai langkah akuisisi 20% saham PT Vale Indonesia (INCO) oleh PT Indonesia Asahan Aluminium (Inalum) atau Mining Industry Indonesia (MIND ID) sebagai langkah penting dalam hilirisasi industri pertambangan nasional.

Menteri BUMN Erick Thohir mengatakan, transaksi pembelian 20% saham divestasi Vale Indonesia milik Vale Canada Limited (VCL) dan Sumitomo Metal Mining Co., Ltd. (SMM) membuat kepemilikan saham negara semakin bertambah di sektor pertambangan.

IMA-Daily Update Page 10

"This is also a good step to strengthen the value chain in Indonesia, and develop the battery industry for electric cars as part of the energy system transformation process," said Erick in his official statement quoted by Investor Daily, in Jakarta, Thursday (8/10).

Erick added, MIND ID's purchase of Vale Indonesia shares was in accordance with the BUMN mandate to manage Indonesia's strategic mineral reserves and also downstream the national mining industry. Especially for domestic nickel , which produces domestic products with economic value up to 4-5 times higher than upstream products.

"By becoming the second largest share-holder, MIND ID will have strategic access to secure the supply of raw materials for Indonesia's downstream nickel industry. Both for downstreaming the nickel industry to become stainless steel, as well as into electric vehicle batteries," he said.

In the transaction, which took place on Wednesday (7/10) in Jakarta, VCL has released 14.9% of its shares and SMM's 5.1% for Rp 2,780 per share or a total of Rp 5.52 trillion. Thus, after this transaction, the share ownership structure in Vale Indonesia changed to Vale Group 44.34%, MIND ID 20.00%, SMM 15.03%, Sumitomo Corporation 0.14%, and the public 20.49%.

Meanwhile, this transaction is a concrete step after the parties signed a share purchase agreement last June. This is also an important development for the nickel industry. Vale Indonesia has one of the best and largest nickel assets in the world.

Furthermore, the divestment of 20% shares is an obligation to amend the Contract of Work (COW/KK) in 2014 between the government and Vale Indonesia which must be implemented five years after the amendment. Vale Indonesia's KK...

“Ini juga langkah bagus untuk memperkuat value chain di Indonesia, serta pengem-bangan industri baterai untuk mobil listrik sebagai bagian proses transformasi sistem energi," ujar Erick dalam keterangan resminya dikutip Investor Daily, di Jakarta, Kamis (8/10).

Erick menambahkan, pembelian saham Vale Indonesia oleh MIND ID sesuai dengan mandat BUMN untuk mengelola cadangan mineral strategis Indonesia dan juga hilirisasi industri pertambangan nasional. Terutama untuk nikel domestik, sehingga menghasilkan produk domestik dengan nilai ekonomis hingga 4-5 kali lipat lebih tinggi dari produk hulu.

“Dengan menjadi pemegang saham ter-besar kedua, MIND ID akan memiliki akses strategis untuk mengamankan pasokan bahan baku untuk industri hilir nikel Indonesia. Baik untuk hilirisasi industri nikel menjadi stainless steel, maupun men-jadi baterai kendaraan listrik,” ujarnya.

Dalam transaksi yang berlangsung, Rabu (7/10) di Jakarta itu, VCL telah melepas sahamnya sebesar 14,9% dan SMM sebesar 5,1% seharga Rp 2.780 per lembar saham atau senilai total Rp 5,52 triliun. Dengan demikian, setelah transaksi ini, struktur kepemilikan saham di Vale Indonesia ber-ubah menjadi Vale Group 44,34%, MIND ID 20,00%, SMM 15,03%, Sumitomo Corpora-tion 0,14%, dan publik 20,49%.

Adapun, transaksi ini merupakan langkah konkret setelah pada Juni lalu, para pihak telah menandatangani perjanjian jual beli saham (shares purchase agreement). Hal ini juga merupakan pengembangan penting bagi industri nikel Vale Indonesia memiliki salah satu aset nikel terbaik dan terbesar di dunia.

Lebih lanjut, divestasi saham 20% ini merupakan kewajiban amandemen dari Kontrak Karya (KK) pada tahun 2014 antara pemerintah dengan Vale Indonesia yang harus dilaksanakan lima tahun setelah aman-demen tersebut. KK Vale Indonesia...

IMA-Daily Update Page 11

KK Vale Indonesia will expire in 2025 and can be changed or extended into a special mining business l icense (IUPK) in accordance with statutory regulations.

In the future, MIND ID will also focus on nickel as the core business by building an ecosystem for the development of this type of mineral industry for the sake of downstreaming domestic products and opening up opportunities for cooperation.

Until now, to support this plan, MIND IDE is building a lithium-ion factory which is planned to be near two nickel mines owned by PT Antam in Tanjung Buli, East Halmahera and in North Konawe, Southeast Sulawesi in order to compete in the world EV Battery market. 27.9% controlled by China. Editor: Parluhutan (parluhutan@investor.co.id)

KK Vale Indonesia akan berakhir pada 2025 dan dapat diubah atau diperpanjang menjadi izin usaha pertambangan khusus (IUPK) sesuai peraturan perundang-undangan.

Kedepannya, MIND ID juga akan fokus terhadap nikel sebagai core business dengan membangun ekosistem pengembangan industri jenis mineral ini demi hilirisasi produk dalam negeri serta membuka peluang untuk bekerja sama.

Hingga saat ini, untuk mendukung rencana tersebut, MIND IDE tengah melakukan pem-bangunan pabrik lithium-ion yang rencana-nya di dekat dua tambang nikel milik PT Antam di Tanjung Buli, Halmahera Timur dan di Konawe Utara, Sulawesi Tenggara agar bisa berkompetisi di pasar EV Battery dunia yang 27,9% dikuasai Tiongkok. Editor : Parluhutan (parluhutan@investor.co.id)

Coal is subject to VAT in the Omnibus Law on Job Creation

THE GOVERNMENT includes coal mining

products as taxable goods (BKP) in the Omnibus Law on Job Creation. This means that coal is now an object of value added tax (VAT).

Citing the Job Creation Omnibus Law, the government amended Article 4A Paragraph 2 of Law Number 42 of 2009 concerning the Third Amendment to Law Number 8 of 1983 concerning VAT for Goods and Services and Sales Tax on Luxury Goods.

In Law Number 42 of 2009, it is stated that the types of goods that are not subject to PPN are mining products or drilling products taken directly from the source,...

Batu Bara Kena PPN dalam Omnibus Law Cipta Kerja

PEMERINTAH memasukkan hasil pertam-

bangan batu bara sebagai barang kena pajak (BKP) dalam Undang-Undang (UU) Omnibus Law Cipta Kerja. Ini artinya, batu bara kini menjadi objek dalam pajak pertambahan nilai (PPN).

Mengutip UU Omnibus Law Cipta Kerja, pemerintah mengubah Pasal 4A Ayat 2 UU Nomor 42 Tahun 2009 tentang Perubahan Ketiga atas UU Nomor 8 Tahun 1983 tentang PPN Barang dan Jasa dan Pajak Penjualan atas Barang Mewah.

Dalam UU Nomor 42 Tahun 2009 di-sebutkan jenis barang yang tidak dikenai PPN adalah barang hasil pertambangan atau hasil pengeboran yang diambil langsung dari sumbernya,...

IMA-Daily Update Page 12

or drilling products taken directly from the

source, basic necessities needed by the

people, as well as food and beverages

served in hotels, restaurants, restaurants,

stalls, and its kind.

However, the government, through the

Omnibus Law, converts them into goods

that are not subject to value added tax,

namely mining products or drilling

products that are taken directly from the

source, excluding new coal mining

products.

At this point, the government ensures that

coal enters into goods subject to VAT.

Meanwhile, other points are still the same

as in Law Number 42 of 2009.

Previously, Minister of Energy and Mineral

Resources (ESDM) Arifin Tasrif revealed

that there were several regulations in the

energy sector that were amended in the

Omnibus Law on Job Creation.

One of them is the provision of sanctions

for anyone who obstructs or interferes

with mining business activities from

holders of mining business permits, special

mining business permits, community

mining permits or rock mining permits.

In addition, there is a provision for the use

of a royalty of zero percent for activities to

increase the added value of coal and

simplify geothermal business licensing.

In the new regulation, the control of

geothermal is held by the central govern-

ment, provincial governments and district

governments according to their respective

authorities. (aud/age)

atau hasil pengeboran yang diambil langsung dari sumbernya, barang kebutuhan pokok yang sangat dibutuhkan rakyat, serta makanan dan minuman yang disajikan di hotel, restoran, rumah makan, warung, dan sejenisnya.

Namun, pemerintah melalui UU Omnibus Law mengubahnya menjadi jenis barang yang tidak dikenai pajak pertambahan nilai adalah barang hasil pertambangan atau hasil pengeboran yang diambil langsung dari sumbernya, tidak termasuk hasil pertambangan baru bara.

Di poin ini, pemerintah memastikan bahwa batu bara masuk menjadi barang yang akan dikenakan PPN. Sementara, poin lain-nya masih sama seperti dalam UU Nomor 42 Tahun 2009.

Sebelumnya, Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif meng-ungkapkan ada beberapa aturan di sektor energi yang diubah dalam UU Omnibus Law Cipta Kerja.

Salah satunya ketentuan sanksi bagi setiap orang yang merintangi atau mengganggu kegiatan usaha pertambangan dari peme-gang izin usaha pertambangan, izin usaha pertambangan khusus, izin pertambangan rakyat atau surat izin penambangan batuan.

Selain itu, ketentuan penggunaan royalti sebesar nol persen untuk kegiatan pening-katan nilai tambah batu bara dan simpli-fikasi perizinan usaha panas bumi.

Dalam aturan baru, penguasaan panas bumi diselenggarakan oleh pemerintah pusat, pemerintah provinsi, dan peme-rintah kabupaten seusai dengan kewe-nangan masing. (aud/age)

IMA-Daily Update Page 13

Copper prices slipped, China moved away from the market

Source: Reuters | Editor: Yudho Winarto

THE PRICE of copper on Thursday (8/10)

slipped from its nearly one-week high of the previous session. Major Chinese consumers are staying away from the market on major holidays.

Launching Reuters, at 11.02 WIB, the price of copper for delivery in three months on the London Metal Exchange fell 0.5 percent to US$ 6,645.50 per ton at 0341 GMT.

The copper price contract touched the highest level since October 1 on Wednesday at US$ 6,710 per tonne amid expectations for increased growth and strong demand.

"Basically no whale in Asia is going to buy it back to the level it should be, so it just bounced back up during the London hours," said a Singapore-based metal trader, adding that copper should be above US$ 6,700 to US$ 6,800 per tonne.

Chinese markets will reopen on Friday after being closed for a public holiday on October 1 to 8. "Prices will fluctuate again if there is a strike in Chile," added the trader.

Copper prices have recently been supported by concerns over a potential attack in Chile, the world's largest metal producer.

On the other hand, LME aluminum prices rose 0.3% to US$ 1,788.50 per ton, nickel decreased 0.1% to US$ 14,585 per ton, zinc rose 0.5% to US$ 2,368.50 per ton, and tin fell 0.4% to US$ 1,796 per ton.

Harga tembaga tergelincir, China menjauh dari pasar

Sumber: Reuters | Editor: Yudho Winarto

HARGA tembaga pada hari Kamis (8/10)

tergelincir dari level tertinggi hampir satu pekan di sesi sebelumnya. Konsumen utama China menjauh dari pasar karena hari libur besar.

Melansir Reuters, pukul 11.02 WIB, harga tembaga untuk pengiriman tiga bulan di London Metal Exchange turun 0,5% menjadi US$ 6.645,50 per ton pada 0341 GMT.

Kontrak harga tembaga tersebut menyentuh level tertinggi sejak 1 Oktober pada hari Rabu di US$ 6.710 per ton di tengah ekspek-tasi peningkatan pertumbuhan dan permin-taan yang kuat.

"Pada dasarnya tidak ada ikan paus di Asia yang akan membelinya kembali ke tingkat yang seharusnya pada dasarnya, sehingga hanya naik kembali selama jam London," kata seorang pedagang logam yang berbasis di Singapura, menambahkan bahwa tembaga harus berada di atas US$ 6.700 hingga US$ 6.800 per ton.

Pasar China akan dibuka kembali pada hari Jumat setelah ditutup untuk hari libur umum pada tanggal 1 hingga 8 Oktober. "Harga akan tersentak lagi jika ada pemogokan di Chili," tambah sang pedagang.

Harga tembaga baru-baru ini didukung oleh kekhawatiran atas potensi serangan di Chili, produsen logam terbesar di dunia.

Di sisi lain, harga aluminium LME naik 0,3% menjadi US$ 1.788,50 per ton, nikel turun 0,1% menjadi US$ 14.585 per ton, seng naik 0,5% menjadi US$ 2.368,50 per ton, dan timah turun 0,4% menjadi US$ 1.796 per ton.

IMA-Daily Update Page 14

Meanwhile, the Asian stock index rose to a one-month high as renewed hopes for more US stimulus helped restore investor confidence.

Sedangkan, indeks saham Asia naik ke level tertinggi satu bulan, karena harapan baru untuk lebih banyak stimulus AS membantu memulihkan kepercayaan investor.

Erick's Ambition for Electric Car

Batteries After the Acquisition of Vale Indonesia (INCO)

M. Nurhadi Pratomo

THE MINISTRY of State-Owned Enterprises

has a series of plans after completing the transaction to purchase 20 percent of the divestment shares of PT Vale Indonesia Tbk. owned by Vale Canada Limited and Sumitomo Metal Mining Co., Ltd. as the majority holder.

By reaching Rp.5.52 trillion, Mining Industri Indonesia (MIND ID) as the Mining Industry BUMN Holding completed the purchase of 5.1 percent of Sumitomo Metal Mining (SMM) shares and 14.9 percent shares of Vale Canada Limited (VCL) in Vale Indonesia. The purchase is priced at Rp 2,780.

After the transaction, the composition of Vale Indonesia ownership changed to Vale Group 44.34 percent, MIND ID 20.00 percent, SMM 15.03 percent, Sumitomo Corporation 0.14 percent, and the public 20.49 percent.

State Owned Enterprises Minister Erick Thohir said the state succeeded in increasing ownership in the mining sector. According to him, Indonesia is one of the largest nickel producers in the world.

"The Vale Indonesia stock transaction is an important part of the downstreaming of the national mining industry which has a strategic role in the global nickel industry. This is also...

Ambisi Erick untuk Baterai

Mobil Listrik setelah Akuisisi Vale Indonesia (INCO)

M. Nurhadi Pratomo

KEMENTERIAN Badan Usaha Milik Negara

memiliki sederet rencana setelah menun-taskan transaksi pembelian 20 persen saham divestasi PT Vale Indonesia Tbk. yang dimiliki oleh Vale Canada Limited dan Sumitomo Metal Mining Co., Ltd. selaku pemegang mayoritas.

Dengan merogoh Rp5,52 triliun, Mining Industri Indonesia (MIND ID) sebagai Holding BUMN Industri Minerba menuntas-kan pembelian 5,1 persen saham Sumitomo Metal Mining (SMM) dan 14,9 persen saham Vale Canada Limited (VCL) di Vale Indonesia. Pembelian dibanderol dengan harga Rp2.780.

Setelah transaksi itu, komposisi kepemilikan Vale Indonesia berubah menjadi Vale Group 44,34 persen, MIND ID 20,00 persen, SMM 15,03 peren, Sumitomo Corporation 0,14 persen, dan publik 20,49 persen.

Menteri Badan Usaha Milik Negara Erick Thohir mengatakan negara berhasil menam-bah kepemilikan di sektor pertambangan. Indonesia menurutnya merupakan salah satu produsen nikel terbesar di dunia.

“Transaksi saham Vale Indonesia menjadi bagian penting dalam penghiliran industri pertambangan nasional yang punya peran strategis dalam industri nikel global. Ini juga...

IMA-Daily Update Page 15

This is also a good step to strengthen the value chain in Indonesia and develop the battery industry for electric cars as part of the energy system transformation process," said Erick in a press release, Thursday (8/10/2020).

Vale Indonesia has one of the best and largest nickel assets in the world. Erick said MIND ID's purchase of shares coded as INCO shares was in accordance with the BUMN mandate to manage Indonesia's strategic mineral reserves and the downstreaming of the national mining industry.

By becoming the second largest share-holder, Erick said MIND ID will have strategic access to secure the supply of raw materials for Indonesia's downstream nickel industry, both for stainless steel and electric vehicle batteries. Editor: Rivki Maulana

Ini juga langkah bagus untuk memperkuat value chain di Indonesia serta pengem-bangan industri baterai untuk mobil listrik sebagai bagian proses transformasi sistem energi," ujar Erick dalam siaran pers, Kamis (8/10/2020).

Vale Indonesia memiliki salah satu aset nikel terbaik dan terbesar di dunia. Erick menyebut pembelian saham emiten ber-kode saham INCO itu oleh MIND ID sesuai dengan mandat BUMN untuk mengelola cadangan mineral strategis Indonesia serta penghiliran industri per tambangan nasional.

Dengan menjadi pemegang saham terbesar kedua, Erick mengungkapkan MIND ID akan memiliki akses strategis untuk meng-amankan pasokan bahan baku industri hilir nikel Indonesia baik untuk menjadi stainless steel maupun baterai kendaraan listrik. Editor : Rivki Maulana

The Job Creation Law Regulates the Authority of Rare Earth Metals, Thorcon Has the Opportunity to

Develop a Thorium Plant

THE DPR has ratified the Job Creation

Omnibus Law, which changes a number of provisions in the Manpower Act (UU). Pros and cons emerged after the Work Creation Law was passed by the DPR on Monday (5/10).

"The Job Creation Law does not really have an impact on PLTN (Nuclear Power Plant) considering that there are no significant changes in this matter. However, it has a big impact on the utilization of rare earth metals (LTJ),” said Bob S Effendi, Head of Representative for Thorcon International Pte. Ltd, to Dunia Energi, Thursday (8/10).

UU Cipta Kerja Atur Kewenangan Logam Tanah Jarang, Thorcon

Berpeluang Kembangkan Pembangkit Thorium

DPR telah mengesahkan Omnibus Law

Cipta Kerja yang di dalamnya mengubah sejumlah ketentuan dalam Undang-Undang (UU) Ketenagakerjaan. Pro dan kontra bermunculan setelah UU Cipta Kerja di-sahkan DPR pada Senin (5/10).

“UU Cipta Kerja tidak terlalu berdampak kepada PLTN (Pembangkit Listrik Tenaga Nuklir) mengingat tidak adanya perubahan signifikan tentang hal itu. Namun ber-dampak besar terhadap pemanfaatan logam tanah jarang (LTJ),” ujar Bob S Effendi, Kepala Perwakilan Thorcon International Pte.Ltd, kepada Dunia Energi, Kamis (8/10).

IMA-Daily Update Page 16

Bob said previously in the nuclear law, exploration and research of radioactive materials could only be carried out by the National Nuclear Energy Agency (Batan) and this has become an obstacle in the development of rare earths. In the Job Creation Law, Batan's authority is drawn to the central government so that the govern-ment can give permission to anyone to develop LTJ.

"To be able to develop LTJ, someone must take thorium as an impurity (development product). So that means, the existence of the PLTT (Thorium Power Plant) that Thorcon will develop is actually a solution for the development of LTJ," said Bob.

Thorcon International is a nuclear development company from the United States that has stated its seriousness for the development and construction of the 500 MW Thorium Molten Salt Reactor Power Plant (TMSR500) or better known as the Thorium Power Plant (PLTT) with an investment value of around US$ 1.2 billion or equivalent to Rp 17 trillion.

Bob added that what is also positive in the Job Creation Law is the convenience for investors because of the cut licensing. Meanwhile, in terms of nuclear safety, it adheres to the principle of a graded approach which means that safety is based on the level of risk.

"So, if the risk is small then the form is not a permit. This will make it easier, like a hospital before having to obtain permission from Bapeten (Nuclear Energy Supervisory Agency) to use X-rays and other medical devices that produce radiation," said Bob.

The DPR is also currently discussing the Draft

Law on New and Renewable Energy (RUU

EBT), which is currently included in the 2020

Priority National Legislation Program (Prolegnas). The process of drafting...

Bob mengatakan sebelumnya dalam UU ketenaganukliran, eksplorasi dan penelitian bahan radioaktif hanya dapat di lakukan oleh Badan Tenaga Nuklir Nasional (Batan) dan hal tersebut telah menjadi kendala dalam pengembangan logam tanah jarang. Dalam UU Cipta Kerja, kewenangan Batan ditarik ke pemerintah pusat sehingga pemerintah dapat memberikan izin kepada siapa saja untuk mengembangkan LTJ.

“Untuk dapat mengembangkan LTJ maka thorium sebagai pengotornya (produk pengembangan) harus ada yang ambil. Jadi artinya, keberadaan PLTT (Pembangkit Listrik Tenaga Thorium) yang akan dikem-bangkan Thorcon justru menjadi solusi bagi pengembangan LTJ,” kata Bob.

Thorcon International merupakan perusahaan pengembang nuklir asal Amerika Serikat yang sudah menyatakan keseriusannya untuk pengembangan dan pembangunan Thorium Molten Salt Reactor Power Plant 500 MW (TMSR500) atau yang lebih dikenal sebagai Pembangkit Listrik Tenaga Thorium (PLTT) dengan nilai investasi sekitar US$ 1,2 miliar atau setara dengan Rp 17 triliun.

Bob menambahkan, hal yang juga positif dalam UU Cipta Kerja adalah kemudahan bagi investor karena perizinan yang dipangkas. Sementara dari sisi keselamatan nuklir, menganut asas graded approach yang artinya keselamatan berbasis tingkat resiko.

“Jadi, kalau resiko nya kecil maka bentuknya bukan izin. Hal ini akan lebih memudahkan, seperti rumah sakit yang sebelum harus mendapatkan izin Bapeten (Badan Pengawas Tenaga Nuklir) untuk penggunaan X-ray dan alat kedokteran lainnya yang menghasilkan radiasi,” ungkap Bob.

DPR saat ini juga tengah membahas Rancangan Undang-Undang Energi Baru Terbarukan (RUU EBT), yang saat ini sudah masuk dalam Program Legislasi Nasional (Prolegnas) Prioritas 2020. Proses penyu-sunan RUU...

IMA-Daily Update Page 17

The process of drafting the bill began in January 2017 when Commission II DPD RI held a public hearing with the public. Indonesian Renewable Energy (METI). Of the 13 countries in Asia Pacific, nine of them already have a special law on renewable energy. In fact, it has been around since 2000.

Nuclear energy is currently included in the draft EBT Bill which is currently being discussed by the DPR. "However, what is unfortunate is that the construction of nuclear power plant prototypes is still closed to the private sector. This means that Batan's monopoly will cover private investment and innovation in the nuclear sector," said Bob. (RA) Yurika

Proses penyusunan RUU sudah dimulai sejak Januari 2017 saat Komisi II DPD RI

mengadakan RDPU dengan Masyarakat Energi Terbarukan Indonesia (METI). Dari

13 negara di Asia Pasifik, sembilan negara di antaranya sudah memiliki UU khusus

untuk energi terbarukan. Bahkan sudah ada sejak 2000.

Energi nuklir saat ini termasuk dalam draft RUU EBT yang tengah dibahas DPR.

“Tetapi, yang disayangkan adalah terhadap pembangunan prototipe PLTN masih

tertutup bagi swasta. Artinya monopoli Batan, ini akan menutup investasi dan

inovasi swasta dalam sektor ketenaga-nukliran,” tandas Bob. (RA) Yurika

Coal Prices Drop Again to

US$60/ton, What Happened? Tirta Citradi, CNBC Indonesia

THE PRICE of Newcastle thermal coal for

the busy traded contract fell significantly in yesterday's trading. However, the decline in prices that occurs should be a healthy correction for the price of these jet stones.

For the Newcastle thermal coal contract which is the reference, the price dropped 2.85% in trading Thursday (8/10/2020). Coal prices fell below US$ 60/ton for the first time since 28 September. Now coal prices are at US$ 59.6/ton.

While China's domestic coal supply is still tight and makes the price uncompetitive, the price of imported seaborne coal is l ikely to be held back from further correction.

Harga Batu Bara Anjlok Lagi ke

US$60/ton, Ada Apa Nih? Tirta Citradi, CNBC Indonesia

HARGA batu bara termal Newcastle untuk

kontrak yang ramai diperjualbelikan anjlok signifikan pada perdagangan kemarin. Namun penurunan harga yang terjadi seharusnya koreksi sehat bagi harga batu legam tersebut.

Untuk kontrak batu bara termal Newcastle

yang menjadi acuan, harganya drop 2,85%

pada perdagangan Kamis (8/10/2020). Harga

batu bara turun ke bawah US$ 60/ton untuk

pertama kalinya sejak 28 September lalu. Kini

harga batu bara berada di US$ 59,6/ton.

Selagi pasokan batu bara domestik China masih ketat dan membuat harganya tidak kompetitif, maka harga batu bara impor lintas laut (seaborne) kemungkinan masih akan tertahan dari koreksi lanjutan.

IMA-Daily Update Page 18

Currently the Qinhuangdao thermal coal price for 5,500 Kcal/Kg calories is still above the informal price target range set by the Chinese government.

This makes industry players, including the Panda Country stun company, have the potential to choose imported coal . Moreover, near the end of the year the quota policy will be renewed.

The existence of production cuts which are also coupled with the potential for La Nina which will cause supply disruptions also boost coal prices. In the future, Australia and RI's leading commodity prices are projected to creep up along with the recovery in demand.

Even though it happened gradually, the phenomenon of recovery in coal demand also occurred in India. India's total coal imports in September are estimated at 14.62 million tonnes based on Refinitiv ship and port tracking data, up from 12.97 million in August.

This is the strongest performance of the world's second largest coal importer since April, although imports are still down 6.3% from the 15.61 million tonnes recorded in September 2019, reported Reuters.

During the first nine months of this year, imports are estimated at 128.24 million tonnes, down 17% from 154.8 million in the same period last year.

India's coal sector has been hit hard by restrictions on economic activity that were imposed from March onwards as the world's second most populous country struggles to contain the emerging corona-virus pandemic.

The economy is expected to contract by up to 10% in the fiscal year starting in April. That will be India's weakest performance since 1979, and analysts expect annual electricity demand to fall for the first time in nearly four decades.

Saat ini harga batu bara termal Qinhuang-dao untuk kalori 5.500 Kcal/Kg masih berada di atas rentang target harga informal yang ditetapkan pemerintah China.

Hal ini membuat para pelaku industri termasuk perusahaan setrum Negeri Panda berpotensi akan memilih batu bara impor. Apalagi jelang akhir tahun kebijakan kuota akan diperbarui.

Adanya pemangkasan produksi yang juga dibarengi dengan potensi La Nina yang menyebabkan disrupsi pasokan juga turut mendongkrak harga batu bara. Ke depan harga komoditas unggulan Australia dan RI ini diproyeksikan bakal merangkak naik seiring dengan pemulihan permintaan.

Kendati terjadi secara gradual, fenomena pemulihan permintaan batu bara juga terjadi di India. Total impor batu bara India pada bulan September diperkirakan mencapai 14,62 juta ton berdasarkan data pelacakan kapal dan pelabuhan Refinitiv, naik dari 12,97 juta pada bulan Agustus.

Ini merupakan kinerja terkuat importir batu bara terbesar kedua dunia itu sejak April, meski impor masih turun 6,3% dari 15,61 juta ton yang tercatat pada September 2019, melansir Reuters.

Selama sembilan bulan pertama tahun ini, impor diperkirakan mencapai 128,24 juta ton, turun 17% dari 154,8 juta pada periode yang sama tahun lalu.

Sektor batu bara India telah terpukul keras oleh pembatasan aktivitas ekonomi yang diberlakukan mulai Maret dan seterusnya ketika negara terpadat kedua di dunia berjuang untuk mengatasi pandemi virus corona baru yang sedang merebak.

Perekonomian diperkirakan akan berkontraksi hingga 10% pada tahun fiskal dimulai pada bulan April. Itu akan menjadi kinerja terlemah India sejak 1979, dan analis memperkirakan permintaan listrik tahunan turun untuk pertama kalinya dalam hampir empat dekade.

IMA-Daily Update Page 19

However, there are some signs of tentative recovery. Reuters columnist Clyde Russel

said power plants grew for the first time in seven months in September with activity at

factories increasing by the most in eight years due to relaxed lockdowns.

Power generation rose 4.9% in September and was the first monthly increase since

February, according to a Reuters analysis of daily cargo shipments data from federal

network operators. CNBC INDONESIA

RESEARCH TEAM (twg/twg)

Namun, ada beberapa tanda pemulihan tentatif. Seorang kolumnis Reuters, Clyde Russel menyebut pembangkit listrik tumbuh untuk pertama kalinya dalam tujuh bulan pada September dengan aktivitas di pabrik meningkat paling tinggi dalam delapan tahun karena adanya relaksasi lockdown.

Pembangkit listrik naik 4,9% pada Septem-ber dan menjadi peningkatan bulanan pertama sejak Februari, menurut analisis Reuters terhadap data pengiriman muatan harian dari operator jaringan federal. TIM RISET CNBC INDONESIA (twg/twg)

Indonesian State miner completes 20% stake buy in Vale unit for

$375m By: Reuters

INDONESIA's State miner Mining Industry Indonesia (MIND ID), formerly known as PT

Inalum, completed its purchase of a 20% stake in nickel miner PT Vale Indonesia, the country's state- owned enterprises ministry said on Thursday.

MIND ID bought the 20% stake at 2 780 rupiah per share, totaling to 5.52-trillion rupiah ($375.77-million), the Ministry said in a statement.

Brazil's Vale Group controls 44.34% of PT Vale Indonesia , while Japan's Sumimoto Metal Mining holds 15.93% of shares, the Ministry said.

MIND ID bought 14.9% stake from Vale Canada, the Canadian subsidiary of Vale Group, and 5.1% from Sumimoto, according to the statement.

"With this transaction, we add more state ownership in the mining sector," State-owned Enterprises Minister Erick Thohir said.

"This is also a great step to strengthen the value chain in Indonesian and the development of the battery industry for electric cars."

The Indonesian government is keen to build a holistic onshore electric vehicle (EV) industry, covering everything from the production of nickel chemicals needed for batteries, through to producing those batteries and eventually building vehicles domestically.

Mining Industry Indonesia changed its name from PT Inalum in August to distinguish its holding company function from its smelting operational business.

IMA-Daily Update Page 20

CIMIC nears sale of Thiess stake Salomae Haselgrove

CIMIC Group is in the final stage of negotiations with a new investor in Thiess as it looks to

offload a 50 per cent stake in the mining services company.

CIMIC group executive chairman Marcelino Fernández Verdes stated that due diligence was

completed and negotiations should be finalised “in the coming days”.

Finding Thiess an alternative equity partner will strengthen CIMIC financially and allow for

Thiess’ continued growth, according to Fernández.

“The introduction of an equity partner into Thiess capitalises on the outlook for mining,

provides capital for Thiess’ continued growth and enables CIMIC to strengthen its balance

sheet,” he said.

With this in the pipeline, CIMIC’s outlook remains positive as operating conditions approve

following the COVID-19 pandemic.

“We are seeing improved operating conditions which is providing momentum as we enter the

last quarter of the year,” Fernández Verdes said.

“Governments have announced numerous stimulus packages in our core construction and

service markets and the mining market is proving resilient.”

The CIMIC Group is working alongside the Australian Government to fast-track mining,

services and construction projects to support its clients and generate sustainable, cash-

backed profits.

During the third quarter, CIMIC had won a major mining services contract at Mount Owen in

New South Wales via Thiess.

As of September, CIMIC had around $25 billion of tenders expected to be bid or awarded for

the remainder of this year, subject to the COVID-19 situation and $525 billion of projects

coming to the market for 2021 and beyond.

“Looking ahead, infrastructure investment will be a valuable contributor to the economic

recovery from COVID-19 and we are encouraged by the substantial investment programs in

the regions where we operate,” Fernández Verdes concluded.

IMA-Daily Update Page 21

Newcrest approves flagship Cadia mine’s expansion Reuters

NEWCREST Mining Ltd’s board has approved the second-stage expansion of its flagship Cadia gold mine and Lihir mine’s front-end recovery project, Australia’s top gold producer said on Friday.

The projects, estimated to cost about $236 million, will boost gold production and recoveries at the two mines that reported lower output in the fourth quarter.

Papua New Guinea-based Lihir’s “long reserve life makes this improvement in gold recoveries particularly valuable to our shareholders,” Newcrest Managing Director and Chief Executive Officer Sandeep Biswas said.

Expansion of the Cadia project, located in New South Wales, will likely increase plant capacity to 35 million tonnes per annum (mtpa) from 33 mtpa and reduce the all in sustaining costs (AISC) by an estimated $22 per ounce, the gold miner said.

AISC for the group in the fourth-quarter stood at $878 per ounce.

Cadia’s full expansion will add 1.8 million ounces of gold output and 67,000 tonnes of copper over the life of the mine, with an estimated $800 million increase in projected free cash flow, Newcrest said in October when it approved Cadia’s first-stage.

The mine’s expansion is expected to generate employment for about 860 people locally, while the Lihir recovery project will add about 150 jobs at its peak, CEO Biswas added. (By Anushka Trivedi; Editing by Shinjini Ganguli)

Orica and FRAGTrack recognised for innovative streak in AFR list Posted by Daniel Gleeson

ORICA’s fragmentation measurement technology, FRAGTrack™, has again gained recognition

in the innovation community after being named in the Australian Financial Review’s Most Innovative Companies List 2020.

FRAGTrack and Orica’s entrenched culture of innovation were behind the company’s second place ranking in the list under the Agriculture, Mining & Utilities Service sector.

The annual list, published by The Australian Financial Review (AFR) and Boss Magazine, is based on a rigorous assessment process, led by a panel of industry experts and innovation consultancy Inventium.

IMA-Daily Update Page 22

From a pool of over 600 nominated organisations across Australia and New Zealand, Orica’s FRAGTrack was recognised as a pioneering technology in the Agriculture, Mining & Utilities Service industry, delivering significant value for customers, Orica said.

FRAGTrack, Orica’s automated fragmentation measurement device, accurately and reliably measures rock size and fragmentation following the blasting stage in mining and quarrying. While traditional methods are prone to operator bias and cannot generally operate in harsher mining environments, FRAGTrack captures, analyses and reports real-time data digitally, according to the company. Designed in collaboration with Design Anthology, Newie Ventures and Your Engineer Mechanical Engineering, the technology can be installed and upgraded remotely – creating safer, more accurate mining outcomes.

The latest award follows FRAGTrack receiving a Good Design Award accolade in the Engineering Design category in recognition for outstanding design and innovation earlier this year.

When judging the innovation, the AFR industry panel considered three key elements – how valuable the problem is that the innovation is solving, the quality and uniqueness of the solution, and the level of impact that the innovation has had. However, the organisation must also be able to demonstrate a truly innovative culture and a sustainable and repeatable approach to innovation across the business.

Orica’s Chief Commercial and Technology Officer, Angus Melbourne, said: “Innovation underpins everything we do at Orica, and it’s our pioneering spirit, amazing people and commitment to working collaboratively with our customers that allows us to continue to deliver products and technologies that are shaping the future of mining.

“Customer collaboration is key to our innovation process. By understanding our customer’s challenges and sharing their goals and aspirations, we can deliver better outcomes on site today, and use these insights to create new technologies that will deliver value tomorrow.

“FRAGTrack is an excellent example of this innovative spirit on show. This technology has evolved through collaborative innovation between our experts, customers, technology partners and the industry.”

He concluded: “At Orica, we’re proud to be leading the change in digital, automated blasting. The convergence of these technologies is allowing us to think differently, mine differently, operate more precisely and most importantly, remove people from harm’s way. FRAGTrack exemplifies all of this, while ultimately delivering significant value for the industry.”

It’s Not Supposed To Be Happening, But Coal Prices Are Rising Tim Treadgold, Contributor Asia

COAL, the commodity that no-one wants to talk about, is staging a comeback as investment banks warm to the profits from improving prices and a new mine in Australia, being built to meet Indian demand, is nearing completion.

IMA-Daily Update Page 23

The $2 billion Carmichael mine has been the focus of decade-long protests by environmental campaigners, but India’s Adani Group has overcome all objections to be on the verge of extracting first coal from the 150-foot deep open-pit mine.

Government approvals, which had been slow coming, have been completed with the final hurdle cleared with the signing last week of a royalty agreement with the State of Queensland in a move designed to make the mine less of a political issues at an upcoming election.

First shipments of coal from the Carmichael mine to India are expected next year, growing to an initial annual target of 10 million tonnes.

Carmichael is not the only significant event in a material which investors have shunned because of its poor environmental record as a major source of carbon pollution.

BHP Coal Spin-Off

Other developments in coal include the publication of a series of research reports which have shifted coal from the bottom of investment preferences to the top, and speculation that a major new coal business could be created with the spin-off by BHP Group of it’s coal division as a separate stock-exchange listed company.

Citi said last month that BHP might find it difficult to sell surplus coal assets to a trade buyer so it can focus on high-grade metallurgical, or coking coal, which commands a much higher price than thermal, or electricity-producing coal.

“We think the coal assets will end up being spun out to BHP shareholders as per South 32,” Citi said in reference to the 2015 creation of a new company to own a number of smaller assets so it could concentrate on iron ore, copper, oil, nickel and metallurgical coal.

The new coal company BHP might create could start with ownership of the Mt Arthur mine in New South Wales and a number of smaller mines in Queensland.

How BHP shareholders will react to being offered an interest in a pure-play coal business is an interesting question though by the time it might happen the assets earmarked for offloading could be exposed to a stronger coal market and be more appealing as an investment.

Thermal Coal Price Up 11%

Coal prices have been trending up over the past two months after plunging to what most industry analysts regard as unsustainably low levels.

Morgan Stanley said last week that the price of high grade thermal coal shipped from the Australian port of Newcastle had risen by 11% from $50 a tonne, where it had been stuck since May, to $55.50/t.

Futures contracts point to a continuation of the rising trend with the October contract said to be sitting at $59/t.

“The main catalyst for the rally has been an increase in spot (short-term) buying from Chinese users who have some import quota left or have been awarded fresh clearance permission,” Morgan Stanley said.

Metallurgical coal is also on the rise with Australian hard-coking coal rising by 28% from $108/t in September to $139/t.

IMA-Daily Update Page 24

“Both coals (thermal and metallurgical) are at the top of our commodity preference list in our recent price deck (forecasts), since demand recovery has not yet been priced in,” Morgan Stanley said.

“Despite near-term uncertainty around China’s import policy, we don’t expect the price to fall from here, as improving ex-China demand should provide price support.”

UBS, another investment bank, is also keen on coal, telling clients in a research report that it remains positive on coal, with a view that despite the recent bounce prices remain below long-run sustainable levels.

Thermal coal, according to UBS, will rise to $65/t next year, and then up to $68/t in 2022 and $70/t in 2023. Hard-coking coal will move up to $145/t next year and then up again to $150/t in 2023.

Top investment pick among Australian coal miners is Whitehaven which UBS reckons is likely to rise from its current A$1.01 (75.5 cents) to A$2 ($1.44) next year while the stockbroking firm of Bell Potter sees Whitehaven reaching A$2.15 ($1.54) next year, a forecast increase of more than 100%.