Daily News Update Page 1

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Coal Export Royalty Rates Must See Company Capability Tarif Royalti Ekspor Batu Bara Harus Lihat Kemampuan Perusahaan Coal prices are projected to continue increasing next year Harga batubara diproyeksi melanjutkan kenaikan tahun depan Coal Prices Fly or Drop, Gasification Still Cuan! Harga Batu Bara Terbang atau Ambles, Gasifikasi Tetap Cuan! Achieving the 2020 Bisnis Indonesia Award, Here's Vale's Achievement This Year Raih Bisnis Indonesia Award 2020, Begini Capaian Vale Tahun Ini Kideco Wins National Gold Proper Award Kideco Raih Proper Emas Tingkat Nasional Analysts predict coal price trends for the long term to have the potential to slope Analis prediksi tren harga batubara untuk jangka panjang berpotensi melandai BUMI's Subsidiary Wins Gold PROPER from KLHK Anak Usaha BUMI Raih PROPER Emas dari KLHK 2021, Investment in the Energy Sector is set at US$ 37.2 billion 2021, Investasi Sektor Energi Dipatok US$37,2 Miliar Mitrabahtera Receives Coal Transport Contracts from Kideco Mitrabahtera Dapat Kontrak Pengangkutan Batu Bara dari Kideco New Round of Australia vs China Trade War, Coal Imports Stopped Babak Baru Perang Dagang Australia vs China, Impor Batu Bara Disetop Sandvik delivers new underground mining fleet to Gosowong gold mine on Indonesia’s Halmahera Island

Bisnis Kontan CNBC Indonesia Bisnis Investor Daily Kontan CNBC Indonesia Dunia Energi Investor Daily Okezone Int'l Mining

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Daily News Update Page 2

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Tesla teams to visit Indonesia to check on investment in EV components: government Freeport-McMoRan unloads copper project in DRC for $550 Million Orica leverages MWD data, AI to create new blast loading design benchmark Australian coal blocked indefinitely by Beijing World’s largest copper miner to cut carbon emissions 70% by 2030 Australian Government throws Portland smelter subsidy at Alcoa Zambia’s central bank to buy gold from First Quantum to boost reserves

Reuters Kitco News Int'l Mining The SMH Mining.com Australian Mining Mining Technology

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Daily News Update Page 3

Coal Export Royalty Rates Must See Company Capability

Denis Riantiza Meilanova

THE INDONESIAN Coal Mining Association

(APBI) considers that the government needs to consider the ability of coal companies to determine the amount of export royalty rates amid the challenges of the weakening trend in coal commodity prices.

The government is currently drafting a government regulation on taxation and non-tax state revenue (PNBP) in the coal mining business sector.

One of the provisions that will be regulated in it is regarding royalties or coal production funds (DHPB) for companies holding Special Mining Business Permits (IUPK) as an extension of the operation of the Coal Mining Exploitation Work Agreement (PKP2B).

Regarding the royalty provisions, the Ministry of ESDM proposes to impose tiered royalty rates based on Reference Coal Prices (HBA) for exported coal commo-dities.

APBI Executive Director Hendra Sinadia said that if the export royalty set is too high and the domestic market cannot absorb domestic coal production, coal companies will have difficulty covering production costs and royalties when coal prices fall.

"In this condition, the company tends to lower the stripping ratio, which causes the

coal reserves that can be mined to decrease, which is also detrimental to the state or

other alternatives for the company to choose to stop production. As a result,...

Tarif Royalti Ekspor Batu Bara Harus Lihat Kemampuan

Perusahaan Denis Riantiza Meilanova

ASOSIASI Pertambangan Batubara Indonesia

(APBI) menilai pemerintah perlu memper-timbangkan kemampuan perusahaan batu bara dalam menetapkan besaran tarif royalti ekspor di tengah tantangan tren pelemahan harga komoditas batu bara.

Pemerintah tengah menyusun rancangan peraturan pemerintah mengenai perpajakan dan penerimaan negara bukan pajak (PNBP) di bidang usaha pertambangan batu bara.

Salah satu ketentuan yang akan diatur di dalamnya adalah mengenai royalti atau dana hasil produksi batu bara (DHPB) untuk per-usahaan pemegang Izin Usaha Pertambangan Khusus (IUPK) sebagai perpanjangan operasi Perjanjian Karya Pengusahaan Pertambangan Batu Bara (PKP2B).

Terkait dengan ketentuan royalti tersebut, Kementerian Energi dan Sumber Daya Mineral mengusulkan untuk memberlakukan tarif royalti berjenjang mengacu pada Harga Batu Bara Acuan (HBA) terhadap komoditas batu bara yang diekspor.

Direktur Eksekutif APBI Hendra Sinadia mengatakan bahwa bila royalti ekspor yang dipatok terlalu tinggi dan pasar domestik tidak dapat menyerap produksi batu bara dalam negeri, perusahaan batu bara akan kesulitan menutup biaya produksi dan royalti pada saat harga batu bara turun.

"Dalam kondisi tersebut perusahaan cenderung untuk menurunkan stripping ratio sehingga menyebabkan cadangan batu bara yang dapat ditambang menjadi semakin berkurang yang juga merugikan negara atau alternatif lain perusahaan bisa memilih untuk menghentikan produksi. Akibatnya...

Daily News Update Page 4

As a result, state revenue falls, export

foreign exchange falls, and consequently

will have an impact on reducing

employment, as well as influencing the

regional and national economy," said

Hendra to Bisnis, last weekend.

He said that the high royalty rate would

increase production costs so that coal

reserves that were still at the bottom layer

were no longer economical to be mined.

The decline in economical coal reserves

will shorten the life of the mine and can

threaten the sustainability of coal supply

for domestic power plants, including

supply for future value added programs.

It would be wiser if the government in

making fiscal policy, including export

royalty, look holistically and compre-

hensively. Not only tax revenue or PNBP,

but also other contributions, such as export

foreign exchange, employment, regional

development and resilience of coal supply

in the future and also seeing it in the long

term so that the coal mining business can

survive and continue to contribute. for

sustainable development. Editor: Zufrizal

Akibatnya penerimaan negara turun, devisa ekspor turun, dan akibatnya akan berdampak terhadap berkurangnya lapangan kerja, serta berpengaruh terhadap perekonomian daerah dan nasional," ujar Hendra kepada Bisnis, akhir pekan lalu.

Dia menuturkan bahwa tingginya tarif royalti akan meningkatkan biaya produksi sehingga cadangan batu bara yang masih berada di lapisan bawah tidak lagi menjadi ekonomis untuk ditambang.

Menurunnya cadangan batu bara yang ekonomis akan membuat umur tambang menjadi lebih pendek dan dapat mengancam keberlanjutan pas okan batu bara untuk keperluan pembangkit listrik dalam negeri, termasuk juga pas okan untuk program peningkatan nilai tambah di masa datang.

Akan lebih bijaksana kalau pemerintah dalam membuat kebijakan fiskal, termasuk royalti ekspor ini melihat secara hol istik dan komprehensif. Bukan hanya penerimaan pajak atau PNBP semata, melainkan juga kontribusi yangg lain, seperti devisa ekspor, lapangan kerja, pengembangan wilayah di daerah dan ketahanan suplai batu bara padai masa datang dan juga melihatnya secara jangka panjang agar usaha tambang batu bara bisa dapat bertahan dan terus berkontribusi bagi pembangunan secara berkelanjutan. Editor : Zufrizal

Coal prices are projected to continue increasing next year Reporter: Intan Nirmala Sari | Editor:

Noverius Laoli

THE TREND of rising coal prices, which

have now reached the level of US$ 80 per metric ton, is predicted to continue until

early next year. Even so,...

Harga batubara diproyeksi melanjutkan kenaikan tahun

depan Reporter: Intan Nirmala Sari | Editor:

Noverius Laoli

TREN kenaikan harga batubara yang saat ini

sudah menembus level US$ 80 per metrik ton diprediksi masih akan berlanjut hingga awal tahun depan. Meskipun begitu,...

Daily News Update Page 5

Even so, investors are asked to always be vigilant because the current level is prone

to correction.

On Monday (14/12), the price of Newcastle coal for March 2021 delivery on ICE

Futures was at US$ 80.50 per metric ton.

Central Capital Futures analyst Wahyu Tribowo Laksono revealed that the level of

US$ 80 per metric ton is very reasonable to be broken at this time. This is supported by

specific fundamental sentiment, namely seasonal factors. Approaching winter at the

end of the year, the demand for coal is believed to increase, including from the

biggest consumers such as China.

Wahyu also added that the analysis result

from Wood Mackenzie predicts China's coal imports will increase in December

2020. This number has the potential to increase from the previous 9.5 million tons

to 20 million tons in December 2020.

Just so you know, the steps to restrict coal imports by China have succeeded in making coal prices soar just as the demand for the Bamboo Curtain country increases. Import restrictions were also carried out by Australia and had an impact on increasing the prices of alternative sea transportat ion, such as those from Indonesia and South Africa.

Ironically, Wahyu added that the price increase also dragged Australian thermal coal higher. Meanwhile, China has to swallow the bitter pill that its domestic coal prices are above average prices.

"Naturally, the current price has reached US$ 80 per metric ton. It's just that, the fair price will be closer to US$ 70 per metric ton again. But when is the correction? It seems that the short term is not visible yet," Wahyu told Kontan, Monday (14/12).

Meskipun begitu, investor diminta selalu waspada lantaran level saat ini sudah rawan koreksi.

Pada Senin (14/12), harga batubara Newcastle kontrak pengiriman Maret 2021 di ICE Futures berada di US$ 80,50 per metrik ton.

Analis Central Capital Futures Wahyu Tribowo Laksono mengungkapkan, level US$ 80 per metrik ton sangat wajar untuk ditembus saat ini. Itu didukung oleh sentimen fundamental spesifik yakni faktor musiman. Jelang musim dingin di akhir tahun, permintaan terhadap batu-bara diyakini bakal meningkat, termasuk dari konsumen terbesar seperti China.

Wahyu juga menambahkan, hasil analisis dari Wood Mackenzie memprediksi impor batubara China bakal meningkat di Desember 2020. Jumlah tersebut ber-potensi naik dari sebelumnya 9,5 juta ton menjadi 20 juta ton di Desember 2020.

Asal tahu saja, langkah pembatasan impor batubara yang dilakukan China, sukses membuat harga batubara melonjak tepat saat permintaan Negeri Tirai Bambu meningkat. Pembatasan impor juga di-lakukan Australia dan berdampak pada peningkatan harga alternatif angkutan laut seperti dari Indonesia dan Afrika Selatan.

Ironisnya, Wahyu menambahkan kalau kenaikan harga tersebut juga menyeret batubara thermal Australia lebih tinggi. Sementara China harus menelan pil pahit bahwa harga batubara domestiknya berada di atas harga rata-rata.

"Wajar harga saat ini tembus US$ 80 per metrik ton. Hanya saja, harga wajar akan kembali dekati ke US$ 70 per metrik ton lagi. Tapi kapan koreksi? Sepertinya belum terlihat jangka pendek ini," ujar Wahyu kepada Kontan, Senin (14/12).

Daily News Update Page 6

Previously, if domestic coal prices soared,

China had the opportunity to loosen up its

imports. But with Australia's trade war

problem, making room for imports is less

profitable.

Likewise, if the Bamboo Curtain country

has to import from Indonesia, South Africa,

the United States or Russia, it will have an

impact on the high costs that must be

incurred.

On the other hand, traders and suppliers

remain wary of the recent spike in prices.

That is because, the return to normalcy of

China-Australia coal trading activities, was

able to push the US and Canadian coal

prices down sharply.

So, from this condition Wahyu sees that the

opportunity for shortage of supply is open

in the future. That way, the price of coal

could seasonally reach its peak in the

fourth quarter of 2020 in the price range of

US$ 60 per metric ton to US$ 100 per

metric ton.

"This means that in the first quarter of

2021, the potential for correction is

common. In the short term, buy on

weakness can occur when there is a

correction to near US$ 50 per metric ton,

but in the medium term it can sell strength

in the range of US$ 80 per metric tom up to

US$ 100 per metric ton," he explained.

As for the long term, Wahyu estimates that

coal prices will move in the range of US$

40 per metric ton to US$ 100 per metric

ton. Where for annual consolidation in the

range of US$ 50 per metric ton to US$ 60

per metric ton.

Sebelumnya, jika harga batubara domestik

melonjak China berpeluang untuk

melonggarkan keran impornya. Namun

dengan masalah perang dagang Australia,

membuat ruang untuk membuka impor

kurang menguntungkan.

Begitu juga jika Negeri Tirai Bambu harus

mengimpor dari Indonesia, Afrika Selatan,

Amerika Serikat ataupun Rusia yang

berdampak pada tingginya biaya yang

harus dikeluarkan.

Di samping itu, pedagang dan pemasok

tetap berhati-hati akan lonjakan harga

baru-baru ini. Itu lantaran, kembali

normalnya aktivitas perdagangan batubara

China-Australia, mampu menekan harga

batubara AS dan Kanada turun tajam.

Sehingga, dari kondisi tersebut Wahyu

melihat peluang kekurangan pasokan

terbuka ke depan cukup terbuka. Dengan

begitu, secara musiman bisa saja harga

batubara menyentuh puncaknya di kuartal

IV-2020 pada rentang harga US$ 60 per

metrik ton hingga US$ 100 per metrik ton.

"Ini artinya, di kuartal I-2021 nanti potensi

koreksi memang biasa terjadi. Untuk

jangka pendek bisa buy on weakness saat

terjadi koreksi mendekati US$ 50 per

metrik ton, tapi di jangka menengah bisa

sell om strength di kisaran US$ 80 per

metrik tom hingga US$ 100 per metrik

ton," paparnya.

Sedangkan untuk jangka panjang, Wahyu

memperkirakan harga batubara bergerak

di rentang US$ 40 per metrik ton hingga

US$ 100 per metrik ton. Dimana untuk

konsolidasi tahunan di rentang US$ 50 per

metrik ton hingga US$ 60 per metrik ton.

Daily News Update Page 7

Coal Prices Fly or Drop,

Gasification Still Cuan! Tirta Widi Gilang Citradi, CNBC Indonesia

THE FUNDAMENTAL improvement in the

market due to the increasing demand for coal in India and China and production cuts in producing countries has made the price of the jet rock lifted. This significant price increase raises questions regarding the economics of coal downstream projects that are being boosted in the country, especially the coal gasification project into Dimethyl Ether (DME).

In the last six months the contract price for both Newcastle coal and the contract for Indonesian coal with low calories of 4,200 Kcal/Kg has increased by more than 40%. The benchmark coal price also increased by double digits. At the same time, oil and gas prices have also increased, but have not yet recovered to pre-Covid-19 levels.

The significant increase in coal prices as a raw material for DME production will certainly have an impact on the economic value of Indonesia's coal gasification project, especially in the midst of low oil and gas prices.

However, to see the economic value aspect of a project, several analyzes are needed, such as production costs, demand develop-ments in the market, the technology used, the price of substitute products (LPG) and the incentives provided by regulators.

Currently the government is pushing downstream coal to produce DME. The goal is none other than the realization of energy independence. This is because..

Harga Batu Bara Terbang atau

Ambles, Gasifikasi Tetap Cuan! Tirta Widi Gilang Citradi, CNBC Indonesia

PERBAIKAN fundamental di pasar akibat

meningkatnya kebutuhan batu bara di India dan China dan pemangkasan produksi di negara-negara produsen membuat harga si batu legam terangkat. Kenaikan harga yang signifikan ini menimbulkan pertanyaan terkait keekonomian proyek hilirisasi batu bara yang tengah digenjot di Tanah Air, terutama proyek gasifikasi batu bara men-jadi Dimethyl Ether (DME).

Dalam enam bulan terakhir harga kontrak batu bara Newcastle maupun kontrak untuk batu bara Indonesia dengan kalori rendah 4.200 Kcal/Kg telah naik lebih dari 40%. Harga batu bara acuan juga naik dobel digit. Di saat yang sama harga minyak dan gas juga mengalami kenaikan, tetapi belum pulih ke level sebelum pandemi Covid-19.

Kenaikan harga batu bara yang signifikan sebagai bahan baku produksi DME tentu akan berdampak pada nilai keekonomian proyek gasifikasi batu bara Tanah Air, apalagi di tengah rendahnya harga minyak dan gas.

Namun, untuk melihat aspek nilai keeko-nomian suatu proyek diperlukan beberapa analisa seperti biaya produksi, perkem-bangan permintaan di pasar, teknologi yang digunakan, harga produk substitusi (LPG) hingga insenti f yang diberikan oleh regulator.

Saat ini pemerintah tengah menggenjot hilirisasi batu bara untuk menghasilkan DME. Tujuannya tak lain dan tak bukan adalah mewujudkan kemandirian energi. Pasalnya,...

Daily News Update Page 8

This is because so far the consumption of LPG in Indonesia has continued to increase since the successful conversion of kerosene to LPG nearly two decades ago.

PT Bukit Asam Tbk (PTBA), a state-owned coal issuer, hooked up PT Pertamina (Persero) and Air Products to work on a coal gasification project to become DME in Tanjung Enim, South Sumatra.

The project will cost an investment of US$ 2.1 billion or more than Rp 30 trillion. In this project, Air Products acts as an investor and the cooperation scheme used is Build-Operate-Transfer (BOT) for 20 years.

This means that after the expiration of the BOT, this project will become a joint venture (JV) between PTBA and PT Pertamina (Persero), although recently PTBA President Director Arviyan Arifin said there was an option for PTBA and Pertamina to have shares in the project this is a year after the project was operational. For now PTBA will supply low calorie coal as raw material.

Each year, coal consumption from the project reaches 6 million tons or nearly 22% of PTBA's current coal sales and production volume. From this coal supply volume, it can produce 1.4 million tons of DME which can replace 980 thousand tons of LPG imports which is equivalent to a 10% -17% decline in imports in the 2019-2024 period.

The ESDM Balitbang coal downstream study team claims the feasibility study of PT Bukit Asam (PTBA) produces a project economy with a Net Present Value (NPV) of US$ 350 million and an Internal Rate of Return (IRR) of around 11%. Seeing this figure, this project is still economical, aka no loss.

Pasalnya, selama ini konsumsi LPG di Indonesia terus meningkat sejak keber-hasilan konversi minyak tanah ke LPG hampir dua dekade silam.

PT Bukit Asam Tbk (PTBA) salah satu emiten batu bara pelat merah menggaet PT Pertamina (Persero) dan Air Products untuk menggarap proyek gasifikasi batu bara menjadi DME di Tanjung Enim, Sumatra Selatan.

Proyek tersebut akan menelan biaya investasi sebesar US$ 2,1 miliar atau lebih dari Rp 30 triliun. Dalam proyek ini, Air Products berperan sebagai investor dan skema kerja sama yang digunakan adalah Build-Operate-Transfer (BOT) selama 20 tahun.

Artinya, setelah habis masa berlakunya BOT, maka proyek ini akan menjadi proyek patungan (joint venture/JV) antara PTBA dan PT Pertamina (Persero), meski belum lama ini Direktur Utama PTBA Arviyan Arifin menyebutkan adanya opsi PTBA dan Pertamina bisa memiliki saham di proyek ini setahun setelah proyek ini beroperasi. Untuk saat ini PTBA akan memasok batu bara kalori rendahnya sebagai bahan baku.

Setiap tahunnya konsumsi batu bara dari proyek tersebut mencapai 6 juta ton atau hampir 22% dari volume penjualan dan produksi batu bara PTBA saat ini. Dari volume pasokan batu bara tersebut, dapat menghasilkan 1,4 juta ton DME yang bisa mengganti 980 ribu ton impor LPG yang setara dengan penurunan 10%-17% impor pada periode 2019-2024.

Tim Kajian Hilirisasi batu bara Balitbang ESDM mengklaim studi kelaikan PT Bukit Asam (PTBA) menghasilkan keekonomian proyek dengan Net Present Value (NPV) sebesar US$ 350 juta dan Internal Rate of Return (IRR) sekitar 11%. Melihat angka tersebut, maka proyek ini masih ekonomis alias tidak rugi.

Daily News Update Page 9

IEEFA Judges Indonesia's Coal Gasification Project Not Economical, Are You Sure?

In its latest report last November, the Institute for Energy Economics and Financial

Analysis (IEEFA) actually considered the coal gasification project carried out by PTBA to be

uneconomical.

IEEFA assesses that this gasification project

does not make sense at all because it will only cause operational losses of US$ 377

million per year or assuming an exchange rate of Rp. 14,000/US$ is Rp. 5.28 trillion.

IEEFA Nilai Proyek Gasifikasi Batu Bara RI Tak Ekonomis, Yakin?

Dalam laporan terbarunya pada November lalu, Institute for Energy Economics and Financial Analysis (IEEFA) justru menilai proyek gasifikasi batu bara yang dilakukan oleh PTBA tidak ekonomis.

IEEFA menilai proyek gasifikasi ini sama sekali tidak make sense karena hanya akan menimbulkan kerugian operasional sebesar US$ 377 juta per tahunnya atau dengan asumsi kurs Rp 14.000/US$ sebesar Rp 5,28 triliun.

The Feasibility of the PTBA Coal Gasification Project

Component Value (US$ Million) Debt 2,000 Operating loss (301) Debt expense (76) Total losses (377) LPG import value* 358 Difference (19)

Note: (*) the import value takes into account the import substitution volume of 980 thousand tons at a price of US$ 365/ton

Table: Tirta Citradi, Source: IEEFA estimates

In the report, IEEFA assesses that the

import cost of LPG at a price of US$ 365 per ton will only result in a cost of US$ 357

million or almost US$ 19 million tons lower than this coal gasification project.

The production cost per tonne of DME is estimated at US$ 470 per tonne. Mean-

while, the price of DME is 30% discounted from LPG in the range of US$ 256 because

it has a lower energy content.

In comparison, 1 kg of DME has an energy

content of 6,900 Kcal, while for 1 kg of LPG the calorific value reaches 11,100 Kcal.

This means that in addition to only causing losses, the energy produced will also

contain a lower content, thus making it less efficient.

Dalam laporan tersebut IEEFA menilai ongkos impor LPG dengan harga US$ 365 per ton hanya akan menimbulkan biaya sebesar US$ 357 juta atau lebih rendah hampir US$ 19 juta ton dari proyek gasifikasi batu bara ini.

Ongkos produksi per ton DME diperkira-kan mencapai US$ 470 per ton. Sementara harga DME terdiskon 30% dari LPG di kisaran US$ 256 karena memiliki kan-dungan energi yang lebih rendah.

Sebagai perbandingan untuk 1 kg DME memiliki konten energi 6.900 Kcal, sementara untuk 1 kg LPG nilai kalorinya mencapai 11.100 Kcal. Artinya, selain hanya akan menimbulkan kerugian, energi yang dihasilkan pun kandungannya lebih rendah, sehingga menjadi kurang efisien.

Daily News Update Page 10

This is clearly inversely proportional to the project feasibility estimate made by the Ministry of Energy and Mineral Resources. However, upon further investigation there are some differences in the methods and approaches in calculation.

The first is related to the scheme. In the IEEFA

report, the scheme used for this gasification

project is debt funded. Meanwhile, in reality, this project involves foreign investors, in this

case Air Products, which is a business partner

of the United States (US).

Second, the coal price assumption used in the IEEFA report is US$ 37 per tonne. However, based on a study conducted by the Ministry of ESDM, the government has provided incentives for project feasibility by fixing prices at US$ 20 - US$ 21 per tonne.

Then, the IEEFA report states that the volume of coal needed to produce 1.4 million tons is 6.5 million tons. This means that to produce 1 ton of DME requires 4.6 tonnes of coal.

In fact, if we refer to the study of the Ministry of ESDM, the use of coal can be reduced by 500 thousand tons and produce a conversion factor of 4.3: 1. This means that it only takes about 4.3 tons of coal to produce 1 ton of DME.

The impact is on the cost of producing coal-based DME. If in the IEEFA report the total production cost of DME from coal reaches US$ 170.2 per ton, then it actually only needs US$ 88.15 per ton or 48.2% lower.

If it is assumed that the average DME production cost for categories other than coal such as catalysts and various other inputs is US$ 300 per ton, then the total DME production per tonne will reach US$ 470 according to the IEEFA version. However, it is actually very possible to be below that, namely in the range of US$ 388 per tonne or 17.4% lower.

Hal ini jelas berbanding terbalik dengan estimasi kelaikan proyek yang dilakukan oleh pihak kementerian ESDM. Namun, setelah ditelusuri lebih lanjut ada beberapa perbedaan dalam metode dan pendekatan dalam perhitungan.

Pertama adalah terkait skema. Dalam laporan IEEFA skema yang digunakan untuk proyek gasifikasi ini adalah debt funded. Sementara realitanya, proyek ini melibatkan investor asing dalam hal ini adalah Air Products yang merupakan mitra bisnis dari Amerika Serikat (AS).

Kedua adalah asumsi harga batu bara yang digunakan pada laporan IEEFA adalah US$ 37 per ton. Namun berdasarkan kajian yang di-lakukan oleh Kementerian ESDM, pemerintah telah memberikan insentif untuk kelayakan proyek dengan mematok harga di US$ 20 - US$ 21 per ton.

Kemudian, dalam laporan IEEFA disebut bahwa volume batu bara yang dibutuhkan untuk menghasilkan 1,4 juta ton sebesar 6,5 juta ton. Ini berarti untuk menghasilkan 1 ton DME butuh 4,6 ton batu bara.

Padahal, jika mengacu pada kajian Kemen-terian ESDM, penggunaan batu bara bisa ditekan 500 ribu ton lebih rendah dan menghasilkan faktor konversi menjadi 4,3 : 1. Artinya hanya butuh sekitar 4,3 ton batu bara untuk menghasilkan 1 ton DME.

Imbasnya adalah pada ongkos produksi DME berbasis batu bara. Jika pada laporan IEEFA total biaya produksi DME dari batu bara mencapai US$ 170,2 per ton, maka sebenarnya hanya butuh US$ 88,15 per ton saja atau lebih rendah 48,2%.

Jika diasumsikan rata-rata biaya produksi DME untuk kategori selain batu bara seperti katalis dan berbagai input lain sebesar US$ 300 per ton, maka total produksi DME per ton mencapai US$ 470 versi IEEFA. Namun sebenarnya sangat mungkin di bawah itu yakni di kisaran US$ 388 per ton atau lebih rendah 17,4%.

Daily News Update Page 11

Total Cost of Producing DME from Coal (US$/Ton)

Components Unit IEEFA ESDM Coal Demand in Million Tons 6.5 6.0 DME Production Million Tons 1.4 1.4 Conversion Ratio Constant 4.6 4.3 Coal Price US$/Ton 37.0 20.5 Coal DME Cost US$/Ton 170.2 88.2 Non-Coal DME Cost US$/Ton 300.0 300.0 Total DME Costs US$/Ton 470.2 388.2

Table: Tirta Citradi Source: IEEFA, Ministry of ESDM

Imagine if the cost component production process could be 10% more efficient, the total production cost would be less than US$ 360 per ton. IEEFA's calculations for production costs refer to China's DME company, Shanxi Lanhua Sci-Tech Venture.

Then, the price assumptions for DME and LPG used by IEEFA to assess the feasibility study for a gasification project are also very low and the difference is also large. IEEFA uses a benchmark LPG price of US$ 365 per ton with the DME price discounted 30% to US$ 256 per ton.

This price is below the current price range. That is the import price of 1 ton of LPG in Indonesia. Please note, the prices of LPG and crude oil have indeed dropped significantly due to the Covid-19 pandemic. However, in line with the improving economic outlook, oil and LPG prices have gradually improved.

This is evident from the LPG price move-ment. The Saudi Aramco propane contract traded on the New York commodity exchange for delivery in January 2021 is already in the position of US$ 450 per ton. Propane is a component of LPG.

Meanwhile on the Dalian commodity exchange, the futures price for LPG has already surged above US$ 500 per ton, while the average Chinese DME price has now reached US$ 400 per ton. The price of these two commodities will be directly proportional.

Bayangkan jika dalam proses produksi komponen biaya bisa lebih efisien 10%, maka total biaya produksinya tak sampai US$ 360 per ton. Kalkulasi IEEFA untuk biaya produksi mengacu pada perusahaan DME China yakni Shanxi Lanhua Sci-Tech Venture.

Kemudian, asumsi harga DME dan LPG yang digunakan IEEFA untuk menilai studi kelayakan proyek gasifikasi juga sangatlah rendah dan selisihnya juga jauh. IEEFA menggunakan acuan harga LPG sebesar US$ 365 per ton dengan harga DME terdiskon 30% menjadi US$ 256 per ton.

Harga tersebut berada di bawah kisaran harga saat ini. Itu adalah harga impor 1 ton LPG di Indonesia. Perlu diketahui, harga LPG dan minyak mentah memang drop signifikan akibat pandemi Covid-19. Namun, seiring dengan outlook perekonomian yang membaik, harga minyak dan LPG sudah berangsur membaik.

Hal ini terbukti dari pergerakan harga LPG. Untuk kontrak propana Saudi Aramco yang ditransaksikan di bursa komoditas New York pengiriman Januari 2021 sudah berada di posisi US$ 450 per ton. Propana merupa-kan salah satu komponen LPG.

Sementara itu di bursa komoditas Dalian,

harga futures LPG sudah tembus di atas US$ 500 per ton, sedangkan untuk harga rata-

rata DME China kini sudah tembus di US$ 400 per ton. Kedua komoditas ini harganya

akan berbanding lurus.

Daily News Update Page 12

With this price and the calculated cost, the coal gasification project in RI is actually still economical. This does not include the calculation of the royalty exemption for those working on this project. Of course the zero percent royalty policy has a huge impact on the economy of this project.

Many Benefits of Coal Gasification!

From a business perspective, the coal gasification project to become a DME actually has many economic impacts. The following is the broad economic impact of the DME project currently initiated by PTBA.

First, more optimal use of natural resources. Indonesia is well known as a global coal producer and exporter. National coal reserves are estimated at 32.3 billion tonnes, with 92.5% being low and medium calorie coal.

Assuming the average production per year is at 550 million tonnes and no new coal reserves are found, this amount is sufficient for another 59 years.

This is different from oil reserves which continue to deplete and lifting which continues to decline so that the need for fuel, especially for cooking, such as Indonesian LPG, must depend on imports.

The need for LPG which continues to increase while production continues to decline means that more than 70% of LPG supply in the country is supplied from imports.

With this coal gasification process, dependence on imports can be reduced by 10-17% and can save foreign exchange reserves of up to Rp. 9.7 trillion per year and the trade balance of up to Rp. 5.5 trillion per year. This is the second advantage of this coal downstream project.

Dengan harga tersebut dan kalkulasi ongkos yang sudah diperhitungkan, sebenarnya proyek gasifikasi batu bara di RI masih ekonomis. Hal itu belum memasukkan perhitungan dari adanya pembebasan royalti bagi yang menggarap proyek ini. Tentu kebijakan royalti nol persen sangat ber-dampak bagi keekonomian proyek ini.

Faedah Gasifikasi Batu Bara Banyak!

Dari sisi bisnis, proyek gasifikasi batu bara menjadi DME sebenarnya juga membawa dampak ekonomi yang banyak. Berikut ini adalah dampak ekonomi secara luas dari adanya proyek DME yang saat ini diinisiasi oleh PTBA.

Pertama, pemanfaatan sumber daya alam yang lebih optimal. Indonesia terkenal sebagai produsen sekaligus eksportir batu bara global. Cadangan batu bara nasional ditaksir mencapai 32,3 miliar ton dengan 92,5% merupakan batu bara kalori rendah dan sedang.

Dengan asumsi produksi rata-rata per tahun di angka 550 juta ton dan tidak ditemukan cadangan batu bara baru, maka jumlah tersebut cukup untuk 59 tahun lagi.

Hal ini berbeda dengan cadangan minyak yang terus menipis dan lifting yang terus merosot sehingga kebutuhan bahan bakar terutama untuk memasak seperti LPG Indonesia harus bergantung pada impor.

Kebutuhan LPG yang terus meningkat sementara produksi terus menurun membuat lebih dari 70% pasokan LPG di Tanah Air disuplai dari impor.

Dengan adanya proses gasifikasi batu bara ini, maka ketergantungan terhadap impor bisa diturunkan 10-17% dan bisa meng-hemat cadangan devisa hingga Rp 9,7 triliun per tahun dan neraca perda-gangan hingga Rp 5,5 triliun per tahun. Ini menjadi keuntungan kedua dari proyek hilirisasi batu bara ini.

Daily News Update Page 13

The third advantage, the existence of this project also boosts the value of investment in the country. Air Products' entry to work on this project has increased foreign investment in the country by Rp 30 trillion.

Fourth, the existence of these projects and investments makes job opportunities open. The DME project will drive a national industry that involves local workers by absorbing a total workforce of around 10,570 people at the construction stage and 7,976 people at the operation stage.

Fifth, DME is more efficient than LPG. This has been proven by the ESDM Balitbang Lemigas. Our trial results show that the efficiency of the stove increases from an average of 61.9% with the use of LPG, to 73.4% when using DME, so that the DME requirement for cooking needs decreases, lower than the theoretical calorie requirement.

Sixth, it is a concrete form of supporting energy mix policies and welcoming a future for Indonesia that is more independent in terms of meeting domestic energy needs. This will also reduce the risk of major shocks in the economy and exchange rate when there are high fluctuations in global energy prices.

Overall, the coal gasification project to become a DME does provide more benefits.

CNBC INDONESIA RESEARCH TEAM (twg/twg)

Keuntungan ketiga, keberadaan proyek ini juga mendongkrak nilai investasi di dalam negeri. Masuknya Air Products untuk meng-garap proyek ini telah menambah investasi asing ke dalam negeri sebesar Rp 30 triliun.

Keempat, adanya proyek dan investasi ini membuat lapangan pekerjaan menjadi terbuka. Adanya proyek DME akan menggerakkan industri nasional yang melibatkan tenaga lokal dengan penyerapan jumlah tenaga kerja sekitar 10.570 orang pada tahap konstruksi dan 7.976 orang pada tahapan operasi.

Kelima, DME lebih efisien ketimbang LPG. Hal ini sudah dibuktikan oleh Lemigas Balitbang ESDM. Hasil uji coba kami menunjukkan bahwa efisiensi kompor meningkat dari rata-rata 61,9% dengan penggunaan LPG, menjadi 73,4% apabila menggunakan DME, sehingga keperluan DME untuk kebutuhan memasak terjadi penu-runan, lebih rendah dibandingkan kebutuhan kalori teoritisnya.

Keenam, merupakan salah satu bentuk konkret untuk mendukung kebijakan bauran energi dan menyongsong masa depan Indonesia yang lebih mandiri dari sisi pemenuhan kebutuhan energi domestik. Hal ini akan turut mengurangi risiko besar shock di perekonomian dan nilai tukar ketika terjadi fluktuasi tinggi harga energi global.

Secara keseluruhan, proyek gasifikasi batu bara menjadi DME ini memang memberikan faedah yang lebih banyak. TIM RISET CNBC INDONESIA (twg/twg)

Achieving the 2020 Bisnis Indonesia Award, Here's Vale's

Achievement This Year Denis Riantiza Meilanova

PT VALE Indonesia Tbk. won an award at

the 2020 Bisnis Indonesia Awards for the metal, mineral, coal and peat mining sector, Monday (14/12/2020).

Raih Bisnis Indonesia Award 2020, Begini Capaian Vale Tahun Ini

Denis Riantiza Meilanova

PT VALE Indonesia Tbk. berhasil meraih peng-

hargaan dalam ajang Bisnis Indonesia Awards 2020 untuk sektor pertambangan logam, mineral, batu bara, dan gambut, Senin (14/12/2020).

Daily News Update Page 14

In this event, Vale defeated several issuers engaged in the same sector such as PT Mitrabara Adiperdana Tbk. (MBAP), PT Cita Mineral Investindo Tbk. (CITA), PT Kapuas Prima Coal Tbk. (ZINC), PT Bukit Asam Tbk. (PTBA), PT Bayan Resources Tbk. (BYAN), PT Samindo Resources Tbk. (MYOH).

Vale, an issuer coded as INCO, is an integrated nickel mining and processing company operating in the Sorowako Block, East Luwu Regency, South Sulawesi Province.

INCO is a subsidiary of the multi-mining company Vale Canada Limited, which is the controlling shareholder of the company.

In the midst of the challenges of the Covid-19 pandemic, INCO was able to record a fairly good production performance.

Based on the production report for the third quarter of 2020, INCO noted that the actual production volume of nickel in matte in the third quarter of 2020 reached 19,477 tons, an increase of 4 percent from the realization in the second quarter of 2020, while accumulated from January to September 2020, the company's nickel in matte production volume reached 55,792 tons.

This realization was up 10 percent when compared to the realization in the same period last year. This year, INCO targets production to reach 73,000 tons.

According to Bisnis records, the production target is actual ly higher than the performance guidance set earlier this year. Previously, INCO targeted this year's production to be not much different from last year's production realization of 71,025 tons.

However, INCO has revised up its production target because the company has the potential to book a higher production volume in line with the delay in the furnace 4 renovation project this year. Editor: Zufrizal

Dalam ajang tersebut, Vale mengalahkan beberapa emiten yang bergerak dalam sektor yang sama seperti PT Mitrabara Adiperdana Tbk. (MBAP), PT Cita Mineral Investindo Tbk. (CITA), PT Kapuas Prima Coal Tbk. (ZINC), PT Bukit Asam Tbk. (PTBA), PT Bayan Resources Tbk. (BYAN), PT Samindo Resources Tbk. (MYOH).

Vale merupakan emiten berkode saham INCO tersebut merupakan perusahaan tambang dan pengolahan nikel terintegrasi yang beroperasi di Blok Sorowako, Kabupaten Luwu Timur, Provinsi Sulawesi Selatan.

INCO merupakan entitas anak dari perusaha-an multitambang Vale Canada Limited yang merupakan pemegang saham pengendali perseroan.

Di tengah tantangan pandemi Covid-19, INCO mampu mencatatkan kinerja produksi yang cukup baik.

Berdasarkan laporan produksi triwulan III/2020, INCO mencatat realisasi volume produksi nikel dalam matte pada triwulan III/2020 mencapai 19.477 ton atau naik 4 persen dari realisasi pada triwulan II/2020, sedangkan secara akumulasi Januari—Sep-tember 2020, volume produksi nikel dalam matte perusahaan mencapai 55.792 ton.

Realisasi ini naik 10 persen bila dibanding-kan dengan realisasi pada periode yang sama tahun lalu. Tahun ini, INCO menarget-kan produksi dapat mencapai 73.000 ton.

Menurut catatan Bisnis, target produksi tersebut sesungguhnya lebih tinggi daripada panduan kinerja yang telah ditetapkan pada awal tahun ini. Sebelumnya, INCO me-nargetkan produksi tahun ini tidak jauh berbeda dari realisasi produksi tahun lalu sebesar 71.025 ton.

Namun, INCO merevisi naik target produksi karena perseroan berpotensi membukukan volume produksi lebih tinggi seiring dengan penundaan proyek peremajaan furnace 4 pada tahun ini. Editor : Zufrizal

Daily News Update Page 15

Kideco Wins National Gold Proper Award

Harso Kurniawan (harso@investor.co.id)

PT KIDECO Jaya Agung, a subsidiary of PT

Indika Energy Tbk, won the Gold Proper award in environmental management in the Mineral and Coal Mining Industry category. This award was given directly by the Minister of Environment and Forestry Siti Nurbaya Bakar at the Manggala Wanabakti building, Jakarta, Monday (14/12/2020).

Gold Proper is the highest appreciation for the company's performance which has consistently demonstrated excellence in environmental management in the production and service process, as well as conducting business that is ethical and responsible for community development and empowerment.

This result is a proud achievement for Kideco, because it succeeded in maintaining the Gold Proper which was received in 2019. This is the result of commitment and cooperation between management and all employees, supported by stakeholders, the community and the government.

Kideco President Director M. Kurnia Ariawan thanked all parties for the achievement of this national gold Proper. Kideco is always committed to environ-mental sustainability, by fulfilling various aspects including the application of an environmental management system (SML), carrying out energy efficiency and reducing emissions, managing the 3Rs (reuse, reduce and recycle) of B3 waste and non-B3 solid waste, management of efficiency water and reducing the burden of water pollution, protection of biodiversity, and other social responsibility programs.

Kideco Raih Proper Emas Tingkat Nasional

Harso Kurniawan (harso@investor.co.id)

PT KIDECO Jaya Agung, anak usaha PT

Indika Energy Tbk, meraih penghargaan Proper Emas dalam pengelolaan lingkungan hidup kategori Industri Tambang Mineral dan Batu Bara. Penghargaan ini diberikan langsung oleh Menteri Lingkungan Hidup dan Kehutanan Siti Nurbaya Bakar di di gedung Manggala Wanabakti Jakarta, Senin, (14/12/2020).

Proper Emas merupakan apresiasi tertinggi atas kinerja perusahaan yang telah secara konsisten menunjukan keunggulan penge-lolaan lingkungan dalam proses produksi dan jasa, serta melaksanakan bisnis yang beretika dan bertanggung jawab terhadap pengembangan dan pemberdayaan masya-rakat.

Hasil ini adalah prestasi membanggakan bagi Kideco, lantaran berhasil mempertahankan Proper Emas yang diterima pada 2019. Hal ini merupakan hasil komitmen dan kerja sama manajemen beserta seluruh karyawan, didukung oleh para pemangku kepentingan, masyarakat dan pemerintah.

Presiden Direktur Kideco M. Kurnia Ariawan berterima kasih kepada semua pihak atas capaian Proper Emas tingkat nasional ini. Kideco selalu berkomitmen terhadap kelestarian lingkungan, dengan memenuhi berbagai aspek yang meliputi penerapan sistem manajemen lingkungan (SML), melakukan efisiensi energi dan penurunan emisi, melakukan pengelolaan 3R (reuse, reduce, dan recycle) limbah B3 dan limbah padat non-B3, pengelolaan efisiensi air dan penurunan beban pencemaran air , perlindungan keanekaragaman hayati, serta program tanggung jawab sosial lainnya.

Daily News Update Page 16

Kideco, he said, has implemented various community development and empower-ment (PPM) programs for communities around the mine that support the creation of a shared value (CSV) between companies and communities in the education, health, economy, infrastructure, religion, youth and socio-cultural sectors.

In this year's National Proper assessment, he said, Kideco proposed an additionality program, namely being independent through a drinking water refill business based on reverse osmosis technology, managing livestock manure into super organic fertilizer, as well as an innovative program of utilizing wood dust waste in making baglogs of oyster mushroom cultivation media by the Rindang Jaya Farmer Group.

Ariawan added that Proper Emas is not only about enhancing reputation, but also being part of social and environmental responsibility that is inseparable from Kideco's core business.

"We also focus on supporting Sustainable Development Goals (SDGs) activities as well as various natural and non-natural disaster activities in the form of prevention and overcoming of Covid-19 in Paser Regency in particular and East Kalimantan in general," he said.

This National Gold Proper complements Kideco's achievements in 2020 which previously won provincial -level Gold Proper (Company Performance Rating - East Kalimantan Province), Aditama (Good Mining Practice in Mining Environmental Management - Ministry of ESDM), Indonesia CSR Awards - Ministry of Social Affairs, and TOP CSR Award 2020. Editor:

Harso Kurniawan (harso@investor.co.id)

Kideco, kata dia, telah melaksanakan berbagai program pengembangan dan pemberdayaan masyarakat (PPM) bagi masyarakat lingkar tambang yang men-dukung terciptanya nilai creating shared value (CSV) antara perusahaan dan masya-rakat di sektor pendidikan, kesehatan, ekonomi, infrastruktur, keagam aan, kepemudaan hingga sosial budaya.

Dalam penilaian Proper Nasional tahun ini, dia menuturkan, Kideco mengajukan program adisionalitas, yaitu mandiri melalui usaha air minum isi ulang berbasis teknologi reverse osmosis, pengelolaan kotoran ternak menjadi pupuk super organik, serta program inovasi peman-faatan limbah serbuk kayu dalam pem-buatan baglog media budidaya jamur tiram oleh Kelompok Tani Rindang Jaya.

Ariawan menambahkan, Proper Emas bukanlah semata meningkatkan reputasi, tetapi menjadi bagian dari tanggung jawab sosial dan lingkungan yang tidak terpisahkan dari bisnis inti Kideco.

“Kami juga fokus dalam mendukung kegiatan Sustainable Development Goals (SDGs) serta berbagai kegiatan keben-canaan alam dan nonalam berupa pencegahan dan penanggulangan Covid-19 di Kabupaten Paser khususnya dan Kalimantan Timur pada umumnya,” ujar dia.

Proper Emas tingkat Nasional ini melengkapi capaian Kideco pada 2020 yang sebelumnya telah meraih Proper Emas tingkat provinsi (Peringkat Kinerja Perusahaan - Provinsi Kaltim), Aditama (Good Mining Practice bidang Pengelolaan Lingkungan Pertambangan - Kementerian ESDM), Indonesia CSR Awards - Kemensos, dan TOP CSR Award 2020. Editor : Harso

Kurniawan (harso@investor.co.id)

Daily News Update Page 17

Analysts predict coal price trends for the long term to have

the potential to slope Reporter: Intan Nirmala Sari | Editor:

Noverius Laoli

THE MOMENTUM of rising coal prices

that is currently occurring at the end of 2020 can be used by investors to take sell on strength. The reason is, analysts predict that the coal price trend will slope in February 2021.

Director of TRFX Garuda Berjangka Ibrahim Assuaibi revealed that the rising coal price of US$ 80 per metric ton was supported by seasonal sentiments, such as the current extreme winter. This upward trend generally lasts during November, December and January.

In addition, China's economic conditions have continued to improve after the Covid-19 pandemic. Thus, the need for the steel industry in the Bamboo Curtain country, especially for the automotive industry, is increasing. Meanwhile, China's trade war with Australia by canceling coal imports has also benefited Indonesia as a coal exporter.

Other sentiments that also supported the increase in coal prices were political issues in the United States (US) and Britain. The high demand for coal in Uncle Sam's country is currently not accompanied by the ability of the community to meet winter needs, considering that the US stimulus package to deal with the impact of Covid-19 has not yet disbursed.

"So, the demand for coal in almost all countries is increasing amidst the economic crisis. At times like this,...

Analis prediksi tren harga batubara untuk jangka panjang

berpotensi melandai Reporter: Intan Nirmala Sari | Editor:

Noverius Laoli

MOMENTUM kenaikan harga batubara

yang tengah terjadi di ujung tahun 2020 bisa dimanfaatkan investor untuk lakukan aksi sell on strength. Pasalnya, analis memperkirakan tren harga batubara bakal melandai di Februari 2021.

Direktur TRFX Garuda Berjangka Ibrahim Assuaibi mengungkapkan, kenaikan harga batubara yang tembus US$ 80 per metrik ton didukung sentimen musiman, seperti musim dingin ekstrim yang terjadi saat ini. Tren kenaikan ini umumnya berlangsung selama November, Desember dan Januari.

Di samping itu, kondisi ekonomi China terus membaik pasca ditimpa pandemi Covid-19. Sehingga, kebutuhan industrial baja di Negeri Tirai Bambu tersebut, khususnya otomotif meningkat. Sementara, perang dagang China dengan Australia dengan membatalkan impor batubara turut menguntungkan Indonesia sebagai eksportir batubara.

Sentimen lainnya yang turut mendukung kenaikan harga batubara yakni masalah politik di Amerika Serikat (AS) dan Inggris. Tingginya kebutuhan batubara di Negeri Paman Sam saat ini tidak disertai kemampuan masyarakat untuk memenuhi kebutuhan di musim dingin, mengingat paket stimulus AS untuk mengatasi dampak Covid-19 belum juga cair.

"Jadi, kebutuhan batubara hampir di semua negara meningkat di tengah krisis ekonomi. Saat seperti ini,...

Daily News Update Page 18

At times like this, speculators are playing

and the price may reach a record US$ 87

per metric ton in the remaining 2020," he

said when contacted by Kontan, Monday

(14/12).

Ibrahim also predicts, after touching a

record of US$ 87 per metric ton on

December 24, 2020, coal prices are likely

to return to correction. Then in January it

will increase again and have the chance to

penetrate US$ 90 per metric ton.

Unfortunately, for the long term, Ibrahim

estimates that the coal price trend will be

corrected. This is because of the euphoria

in several countries that plan to switch

their industrial fuel sources from steam

power to solar systems or windmills. Apart

from being environmentally friendly, these

efforts were made for industrial efficiency.

"After Covid-19 there will be a drastic

change, where coal will be left behind and

people will start to switch to solar energy

sources and windmills," explained Ibrahim.

For that, in the short term Ibrahim still

recommends buying coal. While in the long

term, it is recommended to sell on

strength, because since February 2021 the

price is predicted to continue sloping.

"Next year, coal prices will move in the

range of US$ 50 per metric ton to US$ 90

per metric ton," he said.

Saat seperti ini, spekulan yang bermain

dan kemungkinan harga bisa mencapai

rekor US$ 87 per metrik ton di sisa 2020,"

ungkapnya saat dihubungi Kontan, Senin

(14/12).

Ibrahim juga memprediksi , pasca

menyentuh rekor US$ 87 per metrik ton di

24 Desember 2020, harga batubara

kemungkinan akan bakal kembali koreksi.

Untuk kemudian di Januari kembali

meningkat dan berpeluang tembus US$ 90

per metrik ton.

Sayangnya, untuk jangka panjang Ibrahim

memperkirakan tren harga batubara bakal

koreksi. Ini karena euforia di beberapa

negara yang berencana mengganti sumber

bahan bakar industri mereka dari tenaga

uap menjadi tata surya ataupun kincir

angin. Selain ramah lingkungan, upaya

tersebut dilakukan untuk efisiensi industri.

"Setelah Covid-19 akan ada perubahan

drastis, dimana batubara akan ditinggalkan

dan orang mulai beralih ke sumber energi

tata surya dan kincir angin," jelas Ibrahim.

Untuk itu, di jangka pendek Ibrahim masih

merekomendasikan beli batubara.

Sedangkan jangka panjang, dianjurkan sell

on strength, karena sejak Februari 2021

harga diprediksi akan terus melandai.

"Tahun depan, harga batubara akan

bergerak di rentang US$ 50 per metrik ton

hingga US$ 90 per metrik ton," tandas-

nya.

Daily News Update Page 19

BUMI's Subsidiary Wins Gold

PROPER from KLHK Donald Banjarnahor, CNBC Indonesia

PT BUMI Resources Tbk. (BUMI) through

PT Kaltim Prima Coal (KPC) won the GOLD rating award from the Ministry of Environment and Forestry (KLHK) in the Company Performance Rating Program (PROPER) for the period 2019-2020.

The GOLD rating is a prestigious award given to companies that have consistently demonstrated environmental excellence in their production and service processes, as well as conducting business that is ethical and socially responsible.

The PROPER award ceremony was received directly by Ido Hutabarat as CEO of KPC from the Minister of KLHK, Siti Nurbaya Bakar at the Manggala Wanabakti Auditorium Jakarta on 14 December 2020.

KPC is among the best of 32 companies that received EMAS Proper from 2038 participating national companies.

Saptari Hoedaja, President Director of Bumi Resources Tbk. and PT Kaltim Prima Coal stated that they are honored and happy with the GOLD rating award given by the Ministry of Environment and Forestry at the PROPER event.

This provides additional evidence that the BUMI group is committed to complying with all environmental regulations, enhancing the Company's role in environmental management, conservation and efficiency in the use of natural resources (water and energy), conserving biodiversity, and implementing community development programs (Community Development).

Anak Usaha BUMI Raih PROPER

Emas dari KLHK Donald Banjarnahor, CNBC Indonesia

PT BUMI Resources Tbk. (BUMI) melalui PT

Kaltim Prima Coal (KPC) meraih penghargaan peringkat EMAS dari Kementerian Lingkungan Hidup dan Kehutanan (KLHK) pada Program Penilaian Peringkat Kinerja Perusahaan (PROPER) periode tahun 2019-2020.

Peringkat EMAS adalah penghargaan ber-gengsi yang diberikan kepada perusahaan yang telah secara konsisten menunjukkan keunggulan lingkungan dalam prose s produksi dan jasa, serta melaksanakan bisnis yang beretika dan bertanggung jawab ter-hadap masyarakat.

Acara penganugerahan PROPER tersebut diterima langsung oleh Ido Hutabarat selaku CEO KPC dari Menteri KLHK, Siti Nurbaya Bakar di Auditorium Manggala Wanabakti Jakarta tanggal 14 Desember 2020.

KPC termasuk yang terbaik dari 32 perusahaan yang menerima Proper EMAS dari 2038 perusahaan nasional yang berpartisipasi.

Saptari Hoedaja, Presiden Direktur Bumi Resources Tbk. dan PT Kaltim Prima Coal menyatakan, merasa terhormat dan ber-bahagia atas penghargaan Peringkat EMAS yang diberikan Kementerian LHK pada ajang PROPER tersebut.

Ini memberikan bukti tambahan bahwa grup BUMI berkomitmen untuk mematuhi semua peraturan lingkungan, meningkatkan peran Perusahaan dalam pengelolaan lingkungan, konservasi dan efisiensi dalam penggunaan sumber daya alam (air dan energi), peles-tarian keanekaragaman hayati, dan melak-sanakan program pengembangan masyarakat (Community Development).

Daily News Update Page 20

"The company would like to thank the many parties involved ranging from employees, management and all other stakeholders for their meaningful contri-butions to the achievement of GOLD PROPER such as the Ministry of LHK, the East Kalimantan Environmental Service (DLH) and East Kutai DLH," he said. (dob/dob)

"Perusahaan mengucapkan banyak terima kasih kepada banyak pihak yang terlibat mulai dari karyawan, manajemen dan semua para pemangku kepentingan (Stakeholder) lainnya atas kontribusi mereka yang berarti dalam pencapaian PROPER EMAS seperti Kementerian LHK, Dinas Lingkungan Hidup (DLH) Kalimantan Timur dan DLH Kutai Timur," ujarnya. (dob/dob)

2021, Investment in the Energy Sector is set at US$ 37.2 billion

Rio Indrawan

IT IS projected that investment in the

energy sector will not reach the target this year. The Ministry of Energy and Mineral Resources (ESDM) estimates that investment will decline significantly this year when compared to 2019.

Ego Syahrial, Secretary General of the Ministry of ESDM, said that the decline in investment is normal in the midst of the Covid-19 pandemic. Similar conditions occur in almost all countries in the world.

In 2019, investment reached US$ 31.9 billion, but this year, based on data recapitulation, as of October, it has only reached 49% of this year's investment target of US$ 35.9 billion.

"We recap until October this year the investment has only reached US$ 17.7 billion. The year-end outlook for the ESDM sector will only reach 70% compared to 2019 or around US$ 22 billion-US$ 23 billion. We all understand that this does not only happen in Indonesia but almost all countries in the natural world,” said Ego during a virtual discussion on the National Development Plan through Energy Invest-ment & Utilization of Marine Products 2021, Monday (14/12).

2021, Investasi Sektor Energi Dipatok US$37,2 Miliar

Rio Indrawan

INVESTASI sektor energi pada tahun ini

diproyeksi tidak akan mencapai target. Kementerian Energi dan Sumber Daya Mineral (ESDM) memperkirakan terjadi penurunan investasi yang signifikan pada tahun ini jika dibanding 2019.

Ego Syahrial, Sekretaris Jenderal Kemen-terian ESDM, mengungkapkan penurunan investasi wajar terjadi di tengah hantaman pandemi Covid-19. Kondisi serupa terjadi di hampir seluruh negara di dunia.

Pada 2019 investasi mencapai US$31,9 miliar, namun tahun ini berdasarkan reka-pitulasi data hingga Oktober saja baru mencapai 49% dari target investasi pada tahun ini yang dipatok US$35,9 miliar.

“Kami rekap hingga Oktober tahun ini investasi baru mencapai US$17,7 miliar. Outlook di akhir tahun sektor ESDM hanya mencapai 70% dibanding 2019 atau sekitar US$22 miliar-US$23 miliar. Kita semua pahami ini tidak hanya terjadi di Indonesia namun hampir semua negara di dunia alami,” kata Ego disela diskusi virtual tentang Rencana Pembangunan Nasional Melalui Investasi Energi & Pemanfaatan Hasil Laut 2021, Senin (14/12).

Daily News Update Page 21

The investment realization until October for oil and gas was US$ 8.1 billion,

electricity was US$ 5.8 billion, minerals and coal were only US$ 2.8 billion and the

smallest for New and Renewable Energy was only US$ 900 million.

For next year, the government has high

hopes that the world and national economy will begin to revive itself in line

with the use of the Covid-19 vaccine. Next year, the government has set a high

investment target, even more than this year, reaching US$ 37.2 billion.

"The investment outlook is in 2021, here it

is clear that the investment target for next year is quite optimistic that we can

rebound again. We hope that the economic situation will begin a full recovery so that

we are quite optimistic that the 2021 investment target can reach US$ 37.2

billion," said Ego.

The government, said Ego, will make several efforts so that the investment

target next year can be in line with the target. Regulatory improvement is a

mandatory menu that the government must present in order to attract invest-

ment from business actors.

"The government, of course, in order to achieve the 2021 target will continue to

make improvements, refinements, improve regulations and provide various kinds of

facilities in order to keep the investment climate more competitive and conducive,"

said Ego. (RI)

Realisasi investasi hingga Oktober untuk

migas sebesar US$8,1 Miliar, ketenaga-

listrikan sebesar US$5,8 miliar, mineral

dan batu bara hanya US$2,8 miliar serta

paling kecil untuk Energi Baru Terbarukan

baru mencapai US$900 juta.

Untuk tahun depan pemerintah menaruh

harapan besar akan mulai menggeliatnya

kembali perekonomian dunia dan nasional

seiring dengan mulai digunakannya vaksin

Covid-19. Tahun depan pemerintah

mematok target investasi cukup tinggi

bahkan melebihi tahun ini yakni mencapai

US$37,2 miliar.

“Outlook investasi di 2021, disini terlihat

jelas target investasi untuk tahun depan

kami cukup optimis bisa kembali rebound

Kami harapkan situasi ekonomi akan mulai

full recovery sehingga kita cukup optimis

target investasi 2021 bisa capai US$37,2

miliar,” ungkap Ego.

Pemerintah kata Ego akan melakukan

beberapa upaya agar target investasi tahun

depan bisa sesuai dengan target. Perbaikan

regulasi jadi menu wajib yang harus

dihadirkan pemerintah guna menarik

minat investasi para pelaku usaha.

“Pemerintah tentunya dalam rangka capai

target 2021 terus lakukan perbaikan,

penyempurnaan, perbaikan regulasi dan

berikan berbagai macam kemudahan

dalam rangka jaga iklim investasi lebih

kompetitif dan kondusif,” kata Ego. (RI)

Daily News Update Page 22

Mitrabahtera Receives Coal Transport Contracts from Kideco

Gita Rossiana

PT MITRABAHTERA Segara Sejati Tbk

(MBSS) has secured a coal transportation contract with a potential revenue of Rp 147 billion from PT Kideco Jaya Agung. Mitrabahtera and Kideco are affiliated companies because they have the same holding company, namely PT Indika Energy Tbk (INDY).

Mitrabahtera Corporate Secretary Segara Sejati Ratih Safitri said the company obtained the coal transportation contract on December 10, 2020. Under the contract, the company will use a tugboat and barge to transport Kideco Jaya Agung coal. This coal will be used for the Java 7 PLTU project. The period of this cooperation is until November 5, 2021.

"The company has the potential to receive revenue during the term of the agreement of approximately Rp 147 billion by taking into account the fuel consumption used," said Ratih in a written statement.

With this agreement, the company hopes to have a positive impact on the company's business continuity. On the other hand, this cooperation can also increase the company's revenue.

Mitrabahtera Segara Sejati is a shipping company that focuses on coal transportation. The company was founded in 1994 and listed its shares on the Indonesia Stock Exchange (IDX) in 2011. Until the third quarter of 2020, the company posted a net loss of US$ 7.5 million. The condition is reversed compared to...

Mitrabahtera Dapat Kontrak Pengangkutan Batu Bara dari

Kideco Gita Rossiana

PT MITRABAHTERA Segara Sejati Tbk

(MBSS) mendapat kontrak pengangkutan batu bara dengan potensi pendapatan sebesar Rp 147 miliar dari PT Kideco Jaya Agung. Mitrabahtera dan Kideco merupakan perusahaan terafiliasi karena memiliki induk usaha yang sama, yaitu PT Indika Energy Tbk (INDY).

Sekretaris Perusahaan Mitrabahtera Segara Sejati Ratih Safitri mengatakan, perseroan mendapatkan kontrak pengangkutan batu bara tersebut pada 10 Desember 2020. Dalam kontrak tersebut, perseroan akan mengguna-kan kapal tunda (tugboat) dan tongkang untuk mengangkut batu bara Kideco Jaya Agung. Batu bara ini akan digunakan untuk proyek PLTU Jawa 7. Adapun jangka waktu dari kerja sama ini sampai 5 November 2021.

"Perseroan berpotensi menerima pendapatan selama jangka waktu perjanjian kurang lebih Rp 147 miliar dengan memperhitungkan konsumsi bahan bakar yang digunakan," jelas Ratih dalam keterangan tertulis.

Dengan adanya perjanjian tersebut, perseroan berharap dapat berdampak positif terhadap keberlangsungan usaha perseroan. Di sisi lain, kerja sama ini juga bisa meningkatkan pendapatan perseroan.

Mitrabahtera Segara Sejati merupakan perusahaan pelayaran yang berfokus pada pengangkutan batu bara. Perusahaan ini berdiri pada 1994 dan mencatatkan sahamnya di Bursa Efek Indonesia (BEI) pada 2011. Hingga kuartal III-2020, perseroan membukukan rugi bersih sebesar US$ 7,5 juta. Kondisi itu berbalik di-bandingkan...

Daily News Update Page 23

The condition is reversed compared to the same period last year which posted a net profit of US$ 900 thousand.

This loss was caused by the company's revenue which decreased by 32.6% from US $ 60.6 million in September 2019 to US$ 40.9 million in September 2020. Even though, the company's expenses decreased 19.3% to US$ 39.5 million.

The company's total assets also decreased 2% to US$ 213.7 million in the third quarter of 2020 from US$ 218.1 million at the end of 2019. The decline in assets was caused by a decrease in fixed assets by 5.6% to US$ 150.1 million. Meanwhile, the company's liabilities increased 7.2 percent to US$ 49.6 million. The increase in liabilities was due to the increase in short-term liabilities by 61.4% year to date (ytd) to US$ 25.2 million.

Previously, Mitrabahtera Segara Sejati obtained a loan facility from PT Bank Permata Tbk (BNLI) amounting to US$ 7.5 million. This loan has a tenor of 12 months. Then, the company also obtained a contract for dismantling and leasing the FC unit with a potential revenue of US$ 9 million. The term of this contract is five years. Editor: Jauhari Mahardhika

Kondisi itu berbalik dibandingkan periode sama tahun lalu yang membukukan laba bersih sebesar US$ 900 ribu.

Kerugian ini disebabkan oleh pendapatan perseroan yang menurun 32,6% dari US$ 60,6 juta pada September 2019 menjadi US$ 40,9 juta pada September 2020. Meskipun, beban perseroan tercatat menurun 19,3% menjadi US$ 39,5 juta.

Adapun total aset perseroan juga menurun 2% menjadi US$ 213,7 juta pada kuartal III-2020 dari US$ 218,1 juta pada akhir 2019. Penurunan aset ini disebabkan oleh penu-runan aset tetap sebesar 5,6% menjadi US$ 150,1 juta. Sedangkan liabilitas perseroan tercatat meningkat 7,2% menjadi US$ 49,6 juta. Peningkatan liabilitas ini disebabkan oleh peningkatan liabilitas jangka pendek sebesar 61,4% secara year to date (ytd) menjadi US$ 25,2 juta.

Sebelumnya, Mitrabahtera Segara Sejati mendapatkan fasilitas pinjaman dari PT Bank Permata Tbk (BNLI) sebesar US$ 7,5 juta. Pinjaman ini memiliki tenor 12 bulan. Kemudian, perseroan juga mendapatkan kontrak pembongkaran dan penyewaan unit FC dengan potensi pendapatan sebesar US$ 9 juta. Jangka waktu dari kontrak ini selama lima tahun. Editor : Jauhari Mahardhika

New Round of Australia vs China Trade War, Coal Imports

Stopped Muhammad Faizal, Journalist

AUSTRALIA will suffer losses because the

Chinese government will immediately stop importing coal from its country. Kangaroo country will lose billions of dollars because Australian coal exports to China are recorded at USD13.9 billion.

Babak Baru Perang Dagang Australia vs China, Impor Batu

Bara Disetop Muhammad Faizal, Jurnalis

AUSTRALIA akan merugi karena

Pemerintah China segera menghentikan impor batu bara dari negaranya. Negeri Kanguru akan kehilangan miliaran dolar karena ekspor batu bara Australia ke China tercatat bernilai USD13,9 miliar.

Daily News Update Page 24

The Global Times reports that China's

economic planners have approved power

plants to import coal without restricted

permits from several countries, except

Australia. This step will also make tensions

between the two countries heats up.

Australian government sources said such

media reports should be taken seriously as

they are generally directly approved by the

Chinese Government.

China itself has unofficially banned

Australian coal imports since October,

leaving dozens of bulk carriers stranded

offshore. The freeze has sparked deep

anxiety in the mining industry.

The Global Times report appears to

confirm that China's leaders are now willing to publicly assert that the ban is an

act of economic punishment, and is likely to continue.

The director of the Institute for Energy and

Economics at the Chinese Academy of Social Sciences warned that Australia was

gradually losing the Chinese market. He said China was sourcing coal from

Indonesia, Russia and from Mongolia, which took a large share of Australian coal,

because relations between China and Australia had deteriorated.

The article also said China's coal use would

decline in the coming decades as efforts to reduce carbon emissions.

Meanwhile, if the freeze is maintained, it

could have significant economic impli-cations for Australia. Last year, Australia

exported nearly US$ 14 billion worth of coal to China. Thermal coal used by

Chinese power plants accounts for about US$ 4 billion of that figure.

The Global Times melaporkan bahwa perencana ekonomi China telah menyetujui pembangkit listrik untuk mengimpor batu bara tanpa pembatasan izin dari beberapa negara, kecuali Australia. Langkah tersebut pun akan membuat ketegangan antara kedua negara semakin memanas.

Sumber-sumber pemerintah Australia menga-takan laporan media semacam itu harus diperlakukan dengan serius karena umumnya secara langsung disetujui oleh Pemerintah China.

China sendiri secara tidak resmi telah melarang impor batu bara Australia sejak Oktober, menyebabkan puluhan kapal curah terdampar di lepas pantai. Pembekuan tersebut telah memicu kecemasan yang mendalam di industri pertambangan.

Laporan Global Times tampaknya mengkonfir-masi bahwa para pemimpin China sekarang bersedia untuk secara terbuka menegaskan bahwa larangan tersebut adalah tindakan hukuman ekonomi, dan kemungkinan akan terus berlanjut.

Direktur Institut Energi dan Ekonomi di Akademi Ilmu Sosial China memperingatkan bahwa Australia secara bertahap kehilangan pasar China. Dia mengatakan China mengambil batu bara dari Indonesia, Rusia dan dari Mongolia, yang mengambil jatah sebagian besar dari batu bara Austral ia, karena hubungan antara China dan Australia telah memburuk.

Artikel itu juga mengatakan penggunaan batu bara China akan turun dalam beberapa dekade mendatang seiring dengan upaya untuk mengurangi emisi karbon.

Sementara, jika pembekuan dipertahankan, maka itu bisa memiliki implikasi ekonomi yang signifikan bagi Australia. Tahun lalu, Australia mengekspor batu bara senilai hampir USD14 miliar ke China. Batu bara termal yang digunakan oleh pembangkit listrik China menyumbang sekitar USD4 miliar dari angka itu.

Daily News Update Page 25

Last month, Chinese authorities cited environmental issues as the reason for the delay. Australian Government officials rejected this explanation privately. (fbn)

Bulan lalu, otoritas China menyebut isu lingkungan sebagai alasan atas penundaan tersebut. Pejabat Pemerintah Australia menolak penjelasan ini secara pribadi. (fbn)

Sandvik delivers new underground mining fleet to Gosowong gold mine on Indonesia’s Halmahera Island

Posted by Paul Moore

THE SANDVIK team in east Indonesia have delivered a new underground load and haul fleet of four TH545i trucks and a LH514 loader to PT Nusa Halmahera Minerals’s (PTNHM) Gosowong gold/silver mining complex in North Halmahera Regency, Halmahera Island in North Maluku province.

The new fleet will replace Gosowong’s articulated dump trucks (ADTs) to more efficiently move ore from underground to the surface stockpile, improving productivity, safety and costs. The Gosowong gold mine currently includes the Kencana and Toguraci underground mines.

In March 2020, Newcrest sold 100% of Newcrest Singapore Holdings Pte (NSH) to Indotan Halmahera Bangkit (Indotan) for A$90m. NSH owned 75% of PT Nusa Halmahera Minerals (PT NHM), which operates the Gosowong mine in Indonesia. The remainder is held by PT Aneka Tambang.

Newcrest and PT Antam originally formed a joint venture in 1994 to search for gold content on Halmahera Island. In the same year, the joint venture found gold in Gosowong. Then, in 1997, Newcrest and PT Antam established PTNHM, followed by making a Contract of Work between the Government of Indonesia and PTNHM that was signed on April 28, 1997. The first gold from Gosowong was produced in July 1999.

Tesla teams to visit Indonesia to check on investment in EV components: government

By Reuters Staff

TESLA, the U.S. automaker, will send delegations to Indonesia next month to discuss potential investment in a supply chain for its electric vehicles, the government said on Saturday in a statement.

Daily News Update Page 26

President Joko Widodo has touted Indonesia’s nickel reserves on a number of occasions, telling Reuters last month that “it’s very important because we have a great plan to make Indonesia the biggest producer of lithium batteries and we have the biggest nickel (reserves).”

The president and Luhut Pandjaitan, the coordinating minister for maritime and investment, were on a call with Tesla CEO Elon Musk on Friday to discuss “investment opportunities from electric vehicles company Tesla in Indonesia,” the ministry said.

Tesla did not immediately respond to a Reuters request for comment.

Luhut told Reuters last month that “there is a really good chance” that companies will want to invest in Indonesian nickel processing to cut costs.

Musk has said he is planning to offer a ‘giant contract for a long period of time” so long as the nickel is mined “efficiently and in an environmentally sensitive way”.

Indonesia is keen to develop a full supply chain for nickel at home, especially for extracting battery chemicals, making batteries and eventually building EVs.

Reporting by Bernadette Christina Munthe and Stanley Widianto; Editing by Raju Gopalakrishnan

Freeport-McMoRan unloads copper project in DRC for $550 Million By Vladimir Basov

FREEPORT-McMoRan (NYSE: FCX) announced on Monday that it has completed a sale of its

interests in the Kisanfu undeveloped project to a wholly owned subsidiary of China Molybdenum for $550 million. After-tax net cash proceeds approximate $415 million.

The Kisanfu project, located in the Democratic Republic of Congo, is a large, undeveloped cobalt and copper resource discovered by Freeport’s exploration team.

According to the company’s statement, following Freeport’s sale of its interest in the adjacent Tenke Fungurume mine in 2016, the Kisanfu project was no longer strategic to Freeport’s long-term strategy.

President and CEO Richard C. Adkerson said, “We are pleased to announce this transaction, which enhances our financial position. We continue to execute our strategy focused on our attractive portfolio of large and high-quality copper assets with strong and established franchises in North America, South America and Indonesia.”

As of December 31, 2019, Freeport did not have any proven and probable reserves associated with the Kisanfu project.

The company expects to record an after-tax gain of approximately $350 million in the fourth quarter of 2020 associated with this sale.

Daily News Update Page 27

FCX is a leading international mining company with headquarters in Phoenix, Arizona. FCX is one of the world’s largest publicly traded copper producers. FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant mining operations in North America and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

Orica leverages MWD data, AI to create new blast loading design

benchmark Posted by Daniel Gleeson

ORICA is looking to set a new benchmark for blast loading designs in Latin America after deploying its Design for Outcome solution in the region.

The company, focused on integrating its digital blasting tools to improve outcomes, is leveraging its BlastIQ digital blast optimisation platform within this new solution, Angus Melbourne, Chief Commercial and Technology Officer of Orica, told delegates at Massmin 2020 last week.

In a presentation titled, ‘Blasting’s Critical Role in Extracting Ore’, Melbourne mentioned Design for Outcome as an example of where the company was delivering integrated digital solutions in Latin America.

“Design for Outcome is an automated continual optimisation solution that sets a new benchmark for blast loading designs,” he said. “It utilises data science to process both upstream and downstream data to automate blast designs. This produces tailored and optimised blast designs by reducing blast variability and explosive consumption while increasing productivity.”

Using machine-learning algorithms, Design for Outcome processes measured-while-drilling data to classify ground hardness throughout each blast hole and then match explosives energy to hardness domains to automatically generate tailored blast loading designs, Melbourne explained.

Through artificial intelligence, these algorithms are trained with the data received from the fleet control systems (FMS) and previous blast results. This enables final automation of the blasting design process and its execution in the field with Orica’s smart control systems and programming interfaces, loading the blast accurately according to the generated design. These elements combine to ensure the desired outcomes are achieved, Melbourne said.

“Digitally-enabled blasting solutions such as Design for Outcome are allowing us to work with customers in different ways, to think and act differently and expand our role in the mining value chain,” he said.

Such a solution is part of the company’s plans to automate its segment of the mining process. This goal was strengthened last month with the launch of the Orica and Epiroc jointly developed Avatel™ semi-automated explosives delivery system.

Daily News Update Page 28

A key enabling technology of Avatel, which is built on the foundation of Epiroc’s Boomer M2 carrier, and Orica’s automation vision is WebGen™, the company’s fully wireless initiation system. When combined with Orica’s LOADPlus™ smart control system, specifically designed on-board storage, assembly, digital encoding capability and Subtek™ Control bulk emulsion, Avatel provides customers with complete and repeatable control over blast energy from design through to execution, Orica says.

While referencing the second key pillar in Orica’s digital strategy, Melbourne highlighted the use of the company’s Bulkmaster™ 7 smart, connected explosives delivery system in Latin America during the virtual event.

The new delivery systems not only improve productivity but begin to digitise critical workflows between design and execution in drill and blast operations, according to Melbourne.

The Antamina copper mine in Peru, a joint venture between BHP, Glencore, Teck and Mitsubishi, will soon be leveraging such a system, with Melbourne confirming seven Bulkmaster 7 units had been shipped to the mine and were undergoing commissioning.

Orica’s third digitalisation pillar is the measurement of downstream impacts of the drill and blast process, which is where FRAGTrack™, the company’s automated rock fragmentation measurement device comes into play.

This device captures, analyses and reports real-time data for optimising blast operations, improving downstream productivity and tracking overall operational performance in mining and quarrying, Melbourne explained.

This system is active across several key customer sites in Latin America, with Teck’s Carmen de Andacollo Operation in Chile being one of the first to adopt the technology in the world, according to Melbourne. He said the copper operation is using the insights to deliver efficiencies across the value chain through digitally enabled optimised blasting.

Australian coal blocked indefinitely by Beijing By Eryk Bagshaw

AUSTRALIAN coal exports to China have been formally blocked after months of import

restrictions that have thrown the $14 billion export industry into turmoil.

The decision, taken by China's National Development and Reform Commission at a meeting with 10 Chinese power plants on Saturday and reported by state media on Monday, means Australian coal will be blocked indefinitely while China ramps up imports from Mongolia, Indonesia and Russia, and expands local production.

China's international state media outlet, The Global Times, reported the commission had given approval to power plants to import coal "without clearance restrictions, except for Australia, in a bid to stabilise coal purchase prices".

Daily News Update Page 29

China's spot coal prices have risen above $US90.82 ($120.17) per tonne compared to $US62.82 per tonne for Australian coal as it restricts imports to protect local producers. The decision aims to reduce the price for state-linked firms as Beijing continues to punish Australia economically for its push for a coronavirus inquiry, and criticism of China's human rights records and national security legislation.

Trade Minister Simon Birmingham urged Chinese authorities to "immediately rule out the reports". He said, if accurate, they would appear to be the use of discriminatory practices against Australian coal.

"We reiterate that all terms of our free trade agreement and world trade obligations between Australia and China should be upheld and respected," he said.

The state media report is the most direct statement to date of an outright ban on Australia's third largest export to the country. In October state-owned energy providers and steel mills were given verbal instructions to stop importing Australian coal.

At the time, the Chinese customs office did not state there was an outright ban but said it would "further strengthen import supervision" on Australian goods.

Then in November, China's Coal Transportation and Distribution Association signed a three-year deal to increase purchases of Indonesian coal.

More than $700 million in Australian coal shipments have been stuck off the coast of China.

Glencore chief executive Ivan Glasenberg said on December 6 that the company had stopped delivering Australian coal to China.

"We’re not selling from Australia at the moment, as you well know, they’re not discharging Australian coal, but we are selling from other destinations," he said.

"China will still import about 185 million tonnes of thermal coal this year, which is similar to last year. So what Australia is losing is coming from other sources of supply."

The formal ban will now put pressure on Australian exporters and the government to find other markets.

India has accounted for the bulk of the non-China demand for Australian high-ash coal in recent months, according to Argus industry analysis, while other shipments are expected to be diverted to Japan, Pakistan and South Korea.

Labor frontbencher Ed Husic on Monday dismissed claims from former resources minister and Nationals Senator Matt Canavan that Australia should retaliate against Beijing's trade strikes by putting a levy on iron ore exports.

Iron ore is Australia's largest export to China. The $80 billion-a-year export has so far been unaffected by the diplomatic dispute that now covers more than $20 billion in trade, because Australia is the dominant world exporter.

"China does depend a lot on our iron ore and we've got high quality product. So the relationship I'd say is valuable to both us," Husic said. "What Matt Canavan is trying to do in increasing the price of our iron ore is to encourage China to look elsewhere for iron ore."

The coal trade block is a double-threat to the fossil fuel industry as the Coalition comes under increasing pressure over its climate change commitments.

Daily News Update Page 30

Prime Minister Scott Morrison was blocked from speaking at a United Nations climate summit over the weekend due to a lack of climate ambition.

World’s largest copper miner to cut carbon emissions 70% by 2030 Cecilia Jamasmie

CHILE’s Codelco, the world’s largest copper producer, has outlined sustainability plans in

five areas of action for its operations and projects, including goals to cut carbon emissions by 70%, reduce inland water consumption by 60% and recycling 65% of its industrial waste by 2030.

The state-owned miner, which in 2017 planned to sell “green copper” at a premium price to customers using more sustainable practices like renewable energy, now favours a broader initiative.

The plan, centred around five key points, seeks to reduce around three quarters of the company’s carbon emissions by creating what it calls a “100% clean energy matrix.” This encompasses replacing all underground production equipment will electric vehicles and machinery. It also involves participating in the search for new clean energy sources, such as green hydrogen.

Codelco, which hands over all of its profits to the state, has also committed to lowering its water footprint by more than half of current levels. The vital element has become a bone of contention for the expansion plans of the miner and several other companies, particularly lithium producers.

The majority of Chile’s mines are located in the Atacama desert, the world’s driest, where a mostly abandoned practice of drawing water from the salt flat has left the area practically water-depleted.

In terms of industrial waste reduction, the miner said it would start by recycling 100% of tires and increase the recycling of non-hazardous solid industrial residuals, such as steel, wood, packaging materials, organic waste and scrap metal.

Codelco’s plan also covers the physical and chemical stability of its tailings deposits.

Defined goals and deadlines

Progress towards each of the outlined goals will be measured with specific performance indicators and are associated to specific business cases that involve all operational areas, Codelco said.

“We are taking charge of our purpose as a company to strengthen the sustainable development of Chile and the world, with defined goals and deadlines,” CEO Octavio Araneda said in the statement.

Daily News Update Page 31

The move by the influential copper giant could, if successful, pave the way for more significant industry-wide sustainability standards for the historically high-polluting copper mining trade, analysts said.

The Santiago-based miner noted it would implement a new integration strategy to generate social value. Part of that effort includes increasing the acquisition of goods and services from local providers by 30%, favouring local labour and strengthening mining education.

Codelco’s latest bid to ride the sustainability wave comes amid increasing global pressure from governments and environmental groups on miners.

Customers are also demanding products with a lower carbon footprint as mounting scientific evidence points to emissions as the main drivers of climate change.

Australian Government throws Portland smelter subsidy at Alcoa Vanessa Zhou

ALCOA has received a lifeline from the Australian Government to keep its Portland

aluminium smelter in Victoria open beyond mid-2021.

The federal government will underwrite revenue earned by Alcoa at the facility when the during peak periods of energy usage.

In this way, it is reducing Alcoa’s load, via an emergency reserve revenue of up to $76.8 million over four years to 2024-2025.

Alcoa president Roy Harvey said earlier this year that the company was faced with stock overhang and the COVID-19 crisis, putting 1.5 million tonnes in its smelting portfolio under revision.

However, there was a high cost to bringing down smelting capacity, and even higher to bringing it back up, he said.

Alcoa’s Portland aluminium smelter delivers emergency power reserves to the market but represents around 10 per cent of Victoria’s electricity consumption.

Alcoa purchases power from the National Electricity Market (NEM) variable spot market for the Portland smelter. It also has fixed for floating swap contracts with AGL Energy to manage its exposure to the NEM variable energy rates.

According to Australia’s Minister for Energy and Emissions Reduction Angus Taylor, the government underwriting will last to 2025, and cease once electricity market reforms are in place.

“The Portland aluminium smelter provides unique and valuable energy services and emergency reserves to the grid, particularly over summer,” Minister Taylor said.

“It is three times larger than the largest battery in Australia and has been vital to avoiding black outs in previous summers.

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“The government will ensure Portland continues to play that important role and is appropriately compensated for the grid services it provides.”

Member for Wannon Dan Tehan said the government’s underwriting came at a time when

Victoria had been hard hit by the COVID-19 pandemic.

“If Portland were to close it would risk the reliability and security of the grid, and may lead to the early closure of one of the coal-fired generators the state relies on for much of its power,”

he said.

“If another coal-fired generator closes early, it would mean higher electricity prices for all

Victorian consumers as it did when the Hazelwood power plant closed in 2017, which saw prices skyrocket by up to 85 per cent.”

Zambia’s central bank to buy gold from First Quantum to boost reserves

ZAMBIA’s central bank governor Christopher Mvunga reportedly said that the country will

start buying gold from Canadian miner First Quantum Minerals.

The move comes as the country seeks to boost its foreign-exchange reserves which are currently near record lows, Reuters reported.

The news agency quoted Mvunga as stating: “During periods of market stress – when assets would be losing value – gold would be adding value, thereby shielding the whole portfolio from large losses.”

Under an agreement signed between Zambia’s central bank and First Quantum, Zambia will buy gold produced as a by-product of the latter’s Kansanshi mine.

Kansanshi is a copper-gold mine located near Solwezi in Zambia. Last year, the mine produced 145,386oz of gold in 2019, according to information available on First Quantum’s website.

First Quantum operations director Rudi Badenhorst said that the agreement is a major step in building Zambia’s financial resilience.

The Zambian bank also signed an agreement to buy gold from state mining investment firm ZCCM-IH’s Zambia Gold Company.

Zambia’s deal with state miner ZCCM-IH gives it the option to buy gold rather than foreign exchange, boosting the total availability of the country’s foreign exchange in the country, the governor added.

First Quantum executive Badenhorst said the company was also in negotiations with the Government of Zambia to incentivise large-scale mining.

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Badenhorst added: “Challenges do remain for mining companies operating in Zambia but the ministry of finance is fully engaged with First Quantum and the Chamber of Mines of Zambia to seek out a competitive and stable mining tax code.”