TABLE OF CONTENTS - ima-api.org€¦ · produsen batubara berskala jumbo seperti PT Adaro Energy Tbk (ADRO). Head of Corporate Communications Adaro Energy, Febriati Nadira mengatakan,

IMA-Daily Update Page 1

TABLE OF CONTENTS

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HBA entered the lowest level since 2016, coal issuers tighten their belts HBA masuk level terendah sejak 2016, emiten batubara kencangkan ikat pinggang

Positive Sentiment for Indo Tambang Sentimen Positif untuk Indo Tambang

Bumi Resources Revenue Corrected 13% Pendapatan Bumi Resources Terkoreksi 13%

Natural resource exporters in dark over BI forex plan

Not to Acquire New Mine Yet, UNTR Focuses on Working on Martabe Gold Mine Belum akan akuisisi tambang baru, UNTR fokus menggarap tambang emas Martabe Bumi Resources Sales Volume Stable Volume Penjualan Bumi Resources Stabil HBA dropped below US$ 50 per tonne, the coal industry said HBA terperosok ke bawah US$ 50 per ton, ini kata industri batubara

Encourage youth around the mine to become Entrepreneurs and support the Village through optimization of BUMDes Dorong Pemuda Lingkar Tambang Jadi Entrepreneur dan Dukung Desa Lewat Optimalisasi BUMDes

Demand Begins to Recover, Mining Sector Credit Grows Two Digits Permintaan Mulai Pulih, Kredit Sektor Tambang Tumbuh Dua Digit Pressed Coal, Could Drop Again to Below US$ 50/ton Batu Bara Tertekan, Bisa Turun di Bawah US$ 50/ton Lagi Nih

PT Borneo Alumina Indonesia appointed Progesys a part of PMC consortium for 1MTPA Smelter Grade Alumina Refinery Project

Kontan

Investor Daily

Neraca

The Jakarta Post

Kontan Investor Daily Kontan

Harian Halmahera Bisnis

CNBC Indonesia

EIN-Presswire

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China's GEM to buy nickel chemicals from rivals in Indonesia Ivanhoe expects first copper at Kakula in less than a year Australian gold miners see production rise 10% in June quarter - Surbiton Associates Codelco sees copper production drop in July, private mines up Coal India reports first rise in monthly shipments since February Mining outdoes nation-wide economic performance US House lawmakers seek to reduce dependence on China for rare earths

Reuters Mining.com Kitco News Reuters Mining Weekly Australian Mining Mining Technology

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HBA entered the lowest level since 2016, coal issuers tighten

their belts Reporter: Ridwan Nanda Mulyana | Editor:

Tendi Mahadi

REFERENCE Coal Price (HBA) in Septem-

ber is pegged at US$ 49.42 per ton. Apart from continuing the downward trend in the past six months, this month's HBA has plunged below US$ 50 per tonne and touched its lowest level since 2016.

Market conditions that are oversupplied are exacerbated by weakening demand as a result of being hit by the Covid-19 pandemic. A number of issuers have also implemented efficiency strategies to carry out mitigation. This is even done by jumbo scale coal producers such as PT Adaro Energy Tbk (ADRO).

Adaro Energy's Head of Corporate Communications, Febriati Nadira, said that coal price fluctuations are beyond the company's control. Therefore, she said, ADRO focused on efforts to increase operational excellence as well as control costs and efficiency.

This was done to maintain a solid performance. "Adaro has an integrated and efficient business model and has proven successful in facing the coal cycle," she told Kontan.co.id, Wednesday (2/9).

Nadira said that his party believes that the pillars of the non-coal business will continue to provide a stable contribution to ADRO as well as balance coal volatility. "In addition, one of our strategies is to diversify the mining business by entering the coking coal business," she said.

HBA masuk level terendah sejak 2016, emiten batubara

kencangkan ikat pinggang Reporter: Ridwan Nanda Mulyana | Editor:

Tendi Mahadi

HARGA Batubara Acuan (HBA) bulan September dipatok US$ 49,42 per ton. Selain melanjutkan tren penurunan dalam enam bulan terakhir, HBA bulan ini sudah terperosok di bawah US$ 50 per ton dan menyentuh level terendah sejak 2016.

Kondisi pasar yang kelebihan pasokan (oversupply) diperparah dengan melemah-nya permintaan (demand) akibat terhantam pandemi covid-19. Sejumlah emiten pun memasang strategi efisiensi untuk melaku-kan mitigasi. Hal ini bahkan dilakukan oleh produsen batubara berskala jumbo seperti PT Adaro Energy Tbk (ADRO).

Head of Corporate Communications Adaro Energy, Febriati Nadira mengatakan, fluktuasi harga batubara berada di luar kendali perusahaan. Oleh sebab itu, katanya, ADRO fokus terhadap upata peningkatan keunggulan operasional serta pengendalian biaya dan efisiensi.

Hal tersebut dilakukan untuk memper-tahankan kinerja agar tetap solid. "Adaro memiliki model bisnis yang terintegrasi dan efisien dan telah terbukti sukses dalam menghadapi siklus batubara," ungkapnya kepada Kontan.co.id, Rabu (2/9).

Nadira menyebut, pihaknya meyakini bahwa pilar-pilar bisnis non-batubara akan terus memberikan kontribusi yang stabil kepada ADRO serta menjadi penyeimbang volatilitas batubara. "Selain itu salah satu strategi kami yaitu mendiversifikasi bisnis mining dengan masuk ke bisnis coking coal," sebutnya.

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Considering the unfavorable condition of the coal market, ADRO also revised its 2020 guidance by cutting production to 52 million tonnes-54 million tonnes, operating EBITDA of US$ 600 million-US$ 800 million, capital expenditure of US$ 200 million-US$ 250 million.

At the beginning of the year, ADRO targets production at 54 million tons - 58 million tons. Meanwhile, operational EBITDA is planned at US$ 900 million - US$ 1.2 billion. Meanwhile, capital expenditure is budgeted in the range of US$ 300 million - US$ 400 million.

Contacted separately, the Director of PT ABM Investama Tbk (ABMM) Adrian Erlangga said that the current coal price was greatly influenced by the drop in demand caused by the economic correction due to the Covid-19 pandemic. Thus, the handling of covid-19 and economic recovery will greatly determine market movements and coal prices. "So the index will return when the economy starts to normalize, hopefully at the end of the year after the vaccine can be effective," said Adrian.

In the midst of the current pressure, ABMM is implementing an efficiency strategy. "Our strategy is fixed, improving operations to reduce costs in order to survive," said Adrian.

Quoting previous Kontan.co.id reports, ABMM has also cut its coal production target this year. The production decline is planned to reach 2.8 million tons or 19% of the target in the 2020 Work Plan and Budget (RKAB) of 15 million tons.

Belt tightening is not only done by private coal producers and issuers. The state-owned coal mining company, PT Bukit Asam Tbk (PTBA) is also doing the same thing.

Mempertimbangkan kondisi pasar batubara yang sedang tidak kondusif, ADRO pun merevisi panduan tahun 2020 dengan memangkas produksi menjadi 52 juta ton-54 juta ton, operasional EBITDA US$ 600 juta-US$ 800 juta, belanja modal US$ 200 juta-US$ 250 juta.

Di awal tahun, ADRO menargetkan produksi di angka 54 juta ton - 58 juta ton. Sedangkan untuk EBITDA operasional direncanakan sebesar US$ 900 juta - US$ 1,2 miliar. Sedangkan untuk belanja modal dianggarkan dalam rentang US$ 300 juta - US$ 400 juta.

Dihubungi terpisah, Direktur PT ABM Investama Tbk (ABMM) Adrian Erlangga menyampaikan bahwa harga batubara saat ini sangat dipengaruhi oleh anjloknya demand yang disebabkan oleh koreksi ekonomi akibat pandemi covid-19. Sehingga, penanganan covid-19 dan pemulihan ekonomi akan sangat menentukan per-gerakan pasar dan harga batubara. "Jadi index akan kembali pada saat ekonomi mulai normal, diharapkan di akhir tahun setelah vaksin bisa efektif," ungkap Adrian.

Di tengah tekanan saat ini, ABMM pun menjalankan strategi efisiensi. "Strategi kami tetap, memperbaiki operasi untuk menurunkan cost agar bisa bertahan," tegas Adrian.

Mengutip pemberitaan Kontan.co.id sebe-lumnya, ABMM pun telah memangkas target produksi batubara di tahun ini. Penurunan produksi direncanakan mencapai 2,8 juta ton atau 19% dari target dalam Rencana Kerja dan Anggaran Biaya (RKAB) tahun 2020 yang sebesar 15 juta ton.

Pengencangan ikat pinggang tak hanya dilakukan oleh produsen dan emiten batu-bara swasta. Emiten pertambangan batu-bara plat merah, PT Bukit Asam Tbk (PTBA) juga melakukan hal yang sama.

IMA-Daily Update Page 5

PTBA Corporate Secretary Apollonius Andwie said, in the ongoing pandemic

situation, coal prices are becoming increasingly difficult to predict and control.

As a result, an efficiency strategy is an inevitable choice.

"The company's effort is to continue to

make efficiency by implementing operational excellence throughout the

business chain to produce optimal performance," he said.

PTBA has also cut its coal production and

sales target this year. PTBA targets to be able to sell 24.9 million tons of coal, down

from the previous target of 29.9 million tons. Meanwhile, from the coal production

side, PTBA is targeting production volume by the end of 2020 to be 25.1 million tons,

down from the previous production target of 30.3 million tons.

Meanwhile, Executive Director of the Indonesian Coal Mining Association (APBI)

Hendra Sinadia said the current price level was the lowest since 2016. This condition

is very burdensome for some coal producers, even though the Free on Board

(FOB) selling price is already below production costs.

"Yes, that's right, this is the lowest price

level since 2016. The point is, with prices at this level, more than half of the coal

produced is below production costs," explained Hendra.

Even so, companies that already have long-

term contracts must continue to produce and deliver coal according to the contract.

"However, the spot contract depends on the respective companies," concluded

Hendra.

Sekretaris Perusahaan PTBA Apollonius Andwie mengatakan, dalam situasi pandemi yang terus berlanjut, harga batubara menjadi semakin sulit diprediksi dan dikendalikan. Alhasil, strategi efisiensi menjadi pilihan yang tak terhindarkan.

"Upaya perseroan adalah terus melakukan efisiensi dengan menerapkan operational excellence di seluruh rantai bisnis untuk menghasilkan kinerja yang optimal," kata-nya.

PTBA pun telah memangkas target pro-duksi dan penjualan batubara di tahun ini. PTBA menargetkan mampu menjual 24,9 juta ton batubara, turun dari target sebelumnya yang mencapai 29,9 juta ton. Sementara dari sisi produksi batubara, PTBA menargetkan volume produksi hingga akhir tahun 2020 menjadi sebesar 25,1 juta ton, turun dari target produksi sebelumnya sebesar 30,3 juta ton.

Sementara itu, Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan, level harga saat ini masuk yang terendah sejak tahun 2016. Kondisi ini sangat memberatkan sebagian produsen batubara yang bahkan harga jual Free on Board (FOB) sudah di bawah ongkos produksi.

"Iya benar, ini level harga terendah sejak 2016. Intinya, dengan harga di level ini, lebih dari separuh batubara yang di-produksi sudah di bawah ongkos pro-duksi," terang Hendra.

Kendati begitu, perusahaan-perusahaan yang sudah memiliki kontrak jangka panjang tentu harus tetap memproduksi dan mengirimkan batubara sesuai kontrak. "Namun bagi kontrak spot itu tergantung dari perusahaan masing-masing," pungkas Hendra.

IMA-Daily Update Page 6

Positive Sentiment for Indo Tambang

Parluhutan Situmorang

THE DECLINE in global coal demand has

forced world coal producers to cut production volumes, which in turn can have a positive impact on selling prices in the long run.

Coal listed companies will also get positive sentiment ahead of winter, which is also expected to restore the selling price of coal.

Danareksa Sekuritas analyst Stefanus Darmagiri revealed that the decline in world coal demand due to the Covid-19 pandemic had an impact on the downward revision of coal production targets by a number of domestic miners, including PT Indo Tambangraya Megah Tbk (ITMG).

The amount of trimming is around 4-18% of the original target. The decline in global coal demand, according to him, can be seen from data on India's coal imports which fell by 35.8% to 57 million tons during April-July 2020, in line with the abundant stock in the country. Japan also recorded a decline in coal imports by 3.6 percent to 62 million tons during the seven months of this year due to weakening demand for electricity along with low gas prices.

Meanwhile, China's coal imports increased by 6.8% to 200 million tons during January-July this year. Demand is estimated to be lower in the second semester of this year, despite differences in the selling price of domestic and imported coal.

The decline in coal imports from a number of countries due to low energy demand has also forced other domestic miners to cut their production volume targets. For example,...

Sentimen Positif untuk Indo Tambang

Parluhutan Situmorang

PENURUNAN permintaan batu bara global

telah memaksa produsen batu bara dunia untuk memangkas volume produksi, yang kemudian bisa berdampak positif terhadap harga jual dalam jangka panjang.

Emiten batu bara juga bakal mendapatkan sentimen positif menjelang musim dingin, yang juga diharapkan bisa memulihkan harga jual batu bara.

Analis Danareksa Sekuritas Stefanus Darma-giri mengungkapkan, penurunan permintaan batu bara dunia akibat pandemi Covid-19 telah berimbas terhadap revisi turun target produksi batu bara oleh sejumlah penambang dalam negeri, termasuk PT Indo Tambangraya Megah Tbk (ITMG).

Besaran pemangkasan berkisar 4-18% dari target semula. Penurunan permintaan batu bara global, menurut dia, terlihat dari data impor batu bara India yang turun hingga 35,8% menjadi 57 juta ton selama April-Juli 2020, seiring stok yang masih berlimpah di negara tersebut. Jepang juga mencatat penu-runan impor batu bara hingga 3,6% menjadi 62 juta ton sepanjang tujuh bulan tahun ini karena dipicu oleh pelemahan permintaan listrik bersamaan dengan rendahnya harga gas.

Sedangkan impor batu bara Tiongkok mening-kat 6,8% menjadi 200 juta ton sepanjang Januari-Juli tahun ini. Permintaan tersebut diperkirakan lebih rendah pada semester II tahun ini, meskipun ada perbedaan harga jual batu bara dalam negeri dan impor.

Penurunan impor batu bara sejumlah negara akibat rendahnya permintaan energi juga memaksa penambang dalam negeri lainnya untuk memangkas target volume produksi. Semisal,...

IMA-Daily Update Page 7

For example, PT Bukit Asam Tbk (PTBA) has cut its production target from 30.3

million tons to 25 million tons this year.

Likewise, PT Adaro Energy Tbk (ADRO) has lowered its coal production volume

target this year from 54-58 million tons to around 52-54 million tons. PT Bumi

Resources Tbk (BUMI) also made cuts to as much as 83-88 million tons compared to

the original estimate of 85-90 million tons.

"Global coal producers also cut the coal production volume target this year,

ranging from 13.3-14% from the original target. The cuts are none other than the

result of falling demand after the Covid-19 pandemic swept the world. The target cut

was revealed from data from the company Coal India Limited and the Russian coal

miners association,” wrote Stefanus in his latest research.

Even though global demand has fallen, according to him, the selling price of coal

still has a chance to recover this year, at least in the fourth quarter of 2020.

The existence of winter and expectations of

global economic recovery next year are expected to have an impact on the increase

in the selling price of coal from its current low of US$ 50 per ton.

These various factors prompted Danareksa

Sekuritas to maintain its recommendation for overweight mining sector stocks.

Meanwhile, the purchase recommendation is pinned on shares of ITMG, PTBA, and

ADRO.

Especially for ITMG shares, it is recommen-

ded to buy with a target price of IDR 11,000. This target reflects the PE forecast

for this year of 10.9 times and that in 2021 it will reach 8.9 times.

Semisal, PT Bukit Asam Tbk (PTBA) yang memangkas target produksi dari 30,3 juta ton menjadi 25 juta ton tahun ini.

Begitu juga dengan PT Adaro Energy Tbk (ADRO) yang menurunkan target volume produksi batu bara tahun ini dari 54-58 juta ton menjadi sekitar 52-54 juta ton. Pemangkasan juga dilakukan oleh PT Bumi Resources Tbk (BUMI) menjadi sebanyak 83-88 juta ton dibandingkan perkiraan semula mencapai 85-90 juta ton.

“Produsen batu bara global juga ikut memangkas target volume produksi batu bara tahun ini berkisar 13,3-14% dari target semula. Pemangkasan tidak lain akibat penurunan permintaan setelah pandemic Covid-19 melanda dunia. Pemangkasan target terungkap dari data perusahaan Coal India Limited dan asosiasi penambang batu bara Rusia,” tulis Stefanus dalam riset terbaru.

Meski permintaan global turun, menurut dia, harga jual batu bara masih memiliki peluang untuk kembali pulih tahun ini, setidaknya pada kuartal IV-2020.

Adanya musim dingin dan ekspektasi perbaikan ekonomi global tahun depan diharapkan berimbas terhadap kenaikan harga jual batu bara dari posisi terendahnya saat ini yang mencapai US$ 50 per ton.

Berbagai faktor tersebut mendorong Danareksa Sekuritas untuk memper-tahankan rekomendasi overweight saham sektor pertambangan. Sedangkan reko-mendasi beli disematkan untuk saham ITMG, PTBA, dan ADRO.

Khusus saham ITMG direkomendasikan beli dengan target harga Rp 11.000. Target tersebut merefleksikan perkiraan PE tahun ini 10,9 kali dan tahun 2021 mencapai 8,9 kali.

IMA-Daily Update Page 8

Maintain Target

Indo Tambangraya Megah posted a decrease in revenue of 26.9% to US$ 653 million in the first half of 2020 compared to the same period last year of US$ 893 million.

The decline caused the company's net profit to drop 57.8 percent from US$ 71 million to US$ 30 million.

"The realization of Indo Tambangraya Megah's net profit only reflects 25.8% of the target we have set this year. The realization was also below analysts' consensus expectation or just reflected 39% of the target.

Meanwhile, the revenue achievement is in line with expectations," wrote Mirae Asset Sekuritas analyst Andy Wibowo Gunawan in his research.

According to him, the decline in the company's net profit during the first semester of 2020 was influenced by the decrease in the company's average selling price of coal by 19% to US$ 55.7 per ton.

This has an impact on the company's revenue decline by 26.9 percent to US$ 653 million.

Even though the realization was still below expectations, Mirae Asset Sekuritas still maintained Indo Tambang's financial performance target this year. 2020 net profit is expected to reach US$ 116 million compared to last year's achievement of US$ 129 million.

Revenue estimates are also projected to fall from US$ 1.71 billion to US$ 1.28 billion this year.

"We will maintain Indo Tambang's financial performance target this year because it is supported by expectations of a recovery in the Chinese economy. The target price also illustrates the company's strong business diversification going forward,” explained Andy.

Pertahankan Target

Indo Tambangraya Megah membukukan penurunan pendapatan sebesar 26,9% menjadi US$ 653 juta pada semester I-2020 dibandingkan periode sama tahun lalu US$ 893 juta.

Penurunan tersebut membuat laba bersih perseroan anjlok 57,8% dari US$ 71 juta menjadi US$ 30 juta.

“Realisasi laba bersih Indo Tambangraya Megah tersebut hanya merefleksikan 25,8% dari target yang telah kami tetapkan tahun ini. Realisasi tersebut juga di bawah ekspektasi konsensus analis atau baru merefleksikan 39% dari target.

Sedangkan pencapaian pendapatan sudah sesuai dengan harapan,” tulis analis Mirae Asset Sekuritas Andy Wibowo Gunawan dalam risetnya.

Menurut dia, penurunan laba bersih perseroan sepanjang semester I-2020 dipengaruhi oleh penurunan rata-rata harga jual batu bara perseroan sebesar 19% menjadi US$ 55,7 per ton.

Hal itu berimbas terhadap penurunan pendapatan perseroan hingga 26,9% men-jadi US$ 653 juta.

Meskipun realisasi masih di bawah ekspektasi, Mirae Asset Sekuritas masih mempertahankan target kinerja keuangan Indo Tambang tahun ini. Laba bersih 2020 diharapkan mencapai US$ 116 juta dibandingkan pencapaian tahun lalu US$ 129 juta.

Perkiraan pendapatan juga diproyeksikan turun dari US$ 1,71 miliar menjadi US$ 1,28 miliar tahun ini.

“Kami tetap mempertahankan target kinerja keuangan Indo Tambang tahun ini karena didukung oleh ekspektasi mulai pulihnya ekonomi Tiongkok. Target harga tersebut juga menggambarkan kuatnya diversifikasi bisnis perseroan ke depan,” jelas Andy.

IMA-Daily Update Page 9

Therefore, Mirae maintained a recommen-

dation to buy ITMG shares with a target

price of Rp 10,150. The target also

considers the size of the company's

dividend ratio and the amount of internal

cash. The target also implies that the PE

forecast for this year will be 5.7 times and

that in 2021 it will reach 4.9 times.

Previously, Indo Tambangraya President

Director Megah Mulianto said the company

plans to evaluate this year's capital

expenditure (capex). This was done to

anticipate what might happen during the

Covid-19 pandemic. The company must

ensure cash flow is at a healthy level.

"The capex plan is being re-evaluated to

focus on more important things, namely

maintaining production and operations

this year. The choice of using capex is

determined more carefully to protect this,"

he said.

This year, the company plans a capital

expenditure of US$ 50 million. Meanwhile,

the realization until semester I-2020 has

reached US$ 11 million.

Although the capital expenditure value

may be lowered, the company still hopes to

reach production volume of 19-20.1

million tons this year. Meanwhile, sales are

targeted at 22 million tons.

As for the first half of 2020, the company

has sold 11.1 million tons of coal. The sales

were mostly directed to China with 3.2

million tons, Japan 2 .6 million tons,

Indonesia 1.9 million tons, the Philippines

0.8 million tons, Thailand 0.7 million tons,

and other countries in the East Asia region

and Southeast . Ed itor: Gora Kunjana

([email protected])

Sebab itu, Mirae mempertahankan reko-mendasi beli saham ITMG dengan target harga Rp 10.150. Target tersebut juga mempertimbangkan besarnya rasio dividen perseroan dan besarnya kas internal perseroan. Target tersebut juga mengimplikasikan perkiraan PE tahun ini sekitar 5,7 kali dan tahun 2021 mencapai 4,9 kali.

Sebelumnya, Direktur Utama Indo Tambangraya Megah Mulianto mengata-kan, perseroan berencana mengevaluasi belanja modal (capital expenditure/ capex) tahun ini. Hal ini dilakukan untuk meng-antisipasi kemungkinan yang terjadi pada masa pandemi Covid-19. Perseroan harus memastikan arus kas berada dalam level yang sehat.

“Rencana capex sedang dievaluasi kembali untuk fokus pada hal yang lebih utama, yaitu mempertahankan produksi dan operasi tahun ini. Pemilihan penggunaan capex ditentukan lebih hati-hati untuk menjaga hal tersebut,” katanya.

Tahun ini, perseroan merencanakan belanja modal sebesar US$ 50 juta. Sedangkan realisasi hingga semester I-2020 telah mencapai US$ 11 juta.

Kendati nilai belanja modal kemungkinan diturunkan, perseroan tetap berharap bisa mencapai volume produksi 19-20,1 juta ton tahun ini. Sedangkan penjualan di-targetkan sebanyak 22 juta ton.

Adapun hingga paruh pertama 2020, perusahaan telah menjual 11,1 juta ton batu bara. Penjualan tersebut paling banyak ditujukan ke Tiongkok sebanyak 3,2 juta ton, Jepang 2,6 juta ton, Indonesia 1,9 juta ton, Filipina 0,8 juta ton, Thailand 0,7 juta ton, dan negara lainnya di kawasan Asia Timur dan Tenggara. Editor : Gora

Kunjana ([email protected])

IMA-Daily Update Page 10

Bumi Resources Revenue Corrected 13% By: Ahmad Nabhani

IN THE first semester of 2020, PT Bumi

Resources Tbk (BUMI) posted revenues of US$ 1.97 billion, down 13% from the same period last year of US$ 2.27 billion. The company in its press release in Jakarta yesterday explained that the decline in revenue was triggered by a decrease in the average selling price of coal. The average selling price of the company's coal fell by 12 percent from US$ 53.2 per ton to US$ 46.9 per ton.

Meanwhile, the company's sales volume is still stable at the level of 41.2 million tons, which comes from the KPC mine reaching 29.5 million tons and Arutmin Indonesia at 11.6 million tons.

"The company can still maintain the company's operational performance, even though the coal sector is not yet conducive in the midst of the continuing Covid19 pandemic," said Bumi Resources Director and Corporate Secretary, Dileep Srivastava.

He conveyed, the decline in revenue was due to the weakening of operating profit by 55% to 132.7 million, compared to the same period last year of US$ 298.22 million. This decrease caused the company to have a net loss of US$ 52.7 million in the first half of 2020, compared to US$ 137.54 million in the same period last year.

"Although market uncertainty continues to hit the coal business in the short term, the company is confident that in the future this industry will continue to grow, especially with the development of coal downstream projects in the medium term," he said.

Pendapatan Bumi Resources Terkoreksi 13% Oleh: Ahmad Nabhani

DI semester pertama 2020, PT Bumi

Resources Tbk (BUMI) membukukan pendapatan senilai US$ 1,97 miliar atau turun 13% dari periode sama tahun lalu US$ 2,27 miliar. Perseroan dalam siaran persnya di Jakarta, kemarin menjelaskan, penuruan pendapatan dipicu penurunan rata-rata harga jual batu bara. Rata-rata harga jual batu bara perseroan turun sebanyak 12% dari US$ 53,2 perton menjadi US$ 46,9 per ton.

Sedangkan volume penjualan perseroan masih stabil di level 41,2 juta ton, yaitu berasal dari tambang KPC mencapai 29,5 juta ton dan Arutmin Indonesia sebanyak 11,6 juta ton.

“Perseroan masih bisa menjaga kinerja operasional perseroan, meskipun sektor batu bara belum kondusif di tengah berlanjutnya pandemi Covid19,” kata Director and Corporate Secretary Bumi Resources, Dileep Srivastava.

Disampaikannya, penurunan pendapatan tersebut bermbas terhadap pelemahan laba usaha sebesar 55% menjadi 132,7 juta, dibandingkan periode sama tahun lalu senilai US$ 298,22 juta. Penurunan ter-sebut membuat perseroan rugi bersih senilai US$ 52,7 juta pada semester I-2020, dibandingkan laba bersih periode sama tahun lalu US$ 137,54 juta.

“Meski ketidakpastian pasar masih melanda bisnis batu bara dalam jangka pendek, perseroan yakin bahwa ke depan industri ini akan terus berkembang, terutama dengan pengembangan proyek-proyek hilirisasi batubara dalam jangka menengah,” ungkapnya.

IMA-Daily Update Page 11

Bumi Resources is targeting coal production to reach 85-89 million tons this year with an estimated average selling price of US$ 4649 per ton. Meanwhile, production costs are estimated to fall to a level of US$ 32-34 per ton this year.

Bumi Resources membidik produksi batu bara mencapai 85-89 juta ton tahun ini dengan perkiraan rata-rata harga jual US$ 4649 per ton. Sedangkan beban produksi diperkirakan turun ke level US$ 32-34 per ton sepanjang tahun ini.

Natural resource exporters in dark over BI forex plan Norman Harsono and Yunindita Prasidya | The Jakarta Post

INDONESIAN natural resource exporters are waiting to see what Bank Indonesia’s (BI)

recently announced plan to require the companies to convert their foreign currency earnings into rupiah will entail. The central bank hopes the policy will help stabilize the rupiah.

The measure is expected to apply to companies that exported more than US$300 million worth of natural resources in 2019. It is unclear which companies meet the threshold because data on export earnings is limited, but some major mining companies, such as nickel matte producer PT Vale Indonesia and the country’s biggest privately-owned oil and gas producer PT Medco Energi Internasional, earn and spend US dollars.

Players in Indonesia’s top three resource-exporting industries, namely oil and gas, palm oil and mining, knew little about the central bank’s plan.

“After we confirmed it with BI, they said it was not yet something of focus, even though there was such a plan,” Bernadus Iramanto, finance director of PT Vale Indonesia, said on Aug 26.

“To convert all proceeds from nickel matte sales to rupiah would be a burden of its own.”

BI’s plan comes as the rupiah fluctuates significantly against the US dollar during the COVID-19 pandemic. The instability of the currency may pose a risk to the country’s economic recovery efforts.

The rupiah fell to a low of Rp 16,575 against the US dollar in March, rebounded to Rp 13,878 in June and had sunk to Rp 14,766 on Wednesday.

The date that the new foreign exchange (forex) requirement will be instated depends on the stability of the rupiah, according to a statement BI Governor Perry Warjiyo in August. He said there would be a foreign currency ceiling in companies’ bank accounts and that anything above the threshold would have to be converted into rupiah.

The government requires exporters of natural resources to keep their earnings in special bank accounts.

Oil and gas exports in 2019, at $12.54 billion dollars, accounted for 7 percent of Indonesia’s total exports that year, Statistics Indonesia (BPS) data shows. Exports of mineral fuel, animal fat and vegetable oil, including the country’s top commodity, palm oil, made up more than a quarter of last year’s total exports.

IMA-Daily Update Page 12

“Frankly speaking, we haven't been asked about our opinion of the plan,” said Indonesian Coal Mining Association (APBI) executive director Hendra Sinadia. “We need to look into its

implementation so it doesn't hinder [business].”

Hendra added that questions remained about how the plan would be implemented. He said coal miners used US dollars to sell their products at home and abroad, as well as to pay

royalties.

“As a good citizen, Medco will respond and follow these regulations appropriately,” said Anthony Mathias, financial director at PT Medco Energi Internasional.

A director of PT United Tractors (UNTR), which owns Indonesia’s second-largest gold miner by output, PT Agincourt Resources, said the parent company had discussed the issue with

Bank Indonesia two months ago but was awaiting more detailed guidelines.

UNTR, a major player in heavy machinery, mainly exports its gold.

“We can’t comment on the details yet, but in the broad sense, if we’re talking about gold, then 30 to 40 percent of our production cost structure is in dollars,” said UNTR finance director

Iwan Hadiantoro. “BI assured us this would not negatively impact the company.”

UNTR, which reports its finances in rupiah, booked Rp 118.4 billion in foreign exchange

losses in the first half of this year, an increase from the Rp 70.5 billion forex loss it posted for the same period last year.

The Indonesian Oil Palm Association (GAPKI) declined to comment on the issue.

Not all exporters are worried about BI’s plan, such as palm oil exporter PT Astra Agro Lestari,

part of diversified conglomerate Astra International.

Astra Agro president director Santosa said the company regularly hedged its dollar

transactions, including for loans from abroad, against the rupiah.

“The company practically has no problem whatsoever,” he said.

Astra Agro booked Rp 19 billion in foreign exchange losses in the January to June period of this year, an improvement from the Rp 28.8 billion forex loss it booked in the same period last

year.

Moody's Analytics Asia Pacific chief economist Steven Cochrane raised concerns about the

effectiveness of the policy, since it only applied to the largest resource exporters.

“It sends a message to the market that BI sees stabilizing the exchange rate as a priority,” Cochrane told the Post by email. “On the other hand, the number of new COVID-19 cases is

still on an upward trend in Indonesia, which will continue to be a dominant source of instability.”

The Health Ministry announced 2,775 additional confirmed COVID-19 cases on Tuesday,

bringing the nationwide tally to more than 177,500.

IMA-Daily Update Page 13

Not to Acquire New Mine Yet, UNTR Focuses on Working on

Martabe Gold Mine Reporter: Akhmad Suryahadi | Editor:

Wahyu T. Rahmawati

PT UNITED Tractors Tbk (UNTR)

confirmed that it will not acquire a new gold mine in the near future. United Tractors Corporate Secretary Sara K. Loebis said, UNTR will still focus on working on the Martabe gold mine by its subsidiary, PT Agincourt Resources.

"We are still focused on Martabe. There is no information about other mining prospects,” said Sara to Kontan.co.id, Wednesday (2/9). This also rejects rumors that the Astra Group entity is eyeing a gold mining project owned by another issuer.

In the July 2020 period, gold sales through the Martabe gold mine amounted to 26,000 ounces, down from sales in June 2020 which reached 32,000 ounces. Sales in the July 2020 period also decreased from sales in May 2020 which at that time reached 40,000 ounces. Thus, in the period May 2020 - July 2020, gold sales from Martabe decreased.

If accumulated, gold sales until July 2020 reached 211,600 ounces or decreased 8.1% on an annual basis. Sara said, one of the causes of the decline in gold sales was during the large-scale social restrictions (PSBB), the workforce on duty was only 50% of normal and many of the workforce at the Martabe Mine came from the local community. But currently, Sara said the number of workers had gradually increased because there was a period of isolation that had to be taken.

Belum akan akuisisi tambang baru, UNTR fokus menggarap

tambang emas Martabe Reporter: Akhmad Suryahadi | Editor:

Wahyu T. Rahmawati

PT UNITED Tractors Tbk (UNTR) menegas-kan belum akan mengakuisisi tambang emas baru dalam waktu dekat ini. Sekretaris Perusahaan United Tractors Sara K. Loebis mengatakan, UNTR masih akan fokus untuk menggarap tambang emas Martabe oleh anak usahanya, PT Agincourt Resources.

“Kami masih fokus di Martabe. Belum ada informasi tentang prospek tambang yang lain,” ujar Sara kepada Kontan.co.id, Rabu (2/9). Ini sekaligus menampik selentingan yang mengatakan bahwa entitas Grup Astra ini sedang mengincar proyek tambang emas milik emiten lain.

Pada periode Juli 2020, penjualan emas lewat tambang emas Martabe sebesar 26.000 ounces, turun dari realisasi penjualan Juni 2020 yang mencapai 32.000 ounces. Penjualan di periode Juli 2020 juga menurun dari penjualan Mei 2020 yang kala itu mencapai 40.000 ounces. Sehingga, dalam periode Mei 2020- Juli 2020, penjualan emas dari Martabe turun.

Jika diakumulasikan, penjualan emas hingga Juli 2020 mencapai 211.600 ounces atau turun 8,1% secara tahunan. Sara mengatakan, salah satu penyebab turunnya penjualan emas adalah selama masa pembatasan sosial berskala besar (PSBB), tenaga kerja yang bertugas hanya 50% dari normal dan tenaga kerja di Tambang Martabe banyak yang berasal dari masyarakat setempat. Namun saat ini, Sara mengatakan jumlah tenaga kerja secara bertahap sudah bertambah karena ada masa isolasi yang harus ditempuh.

IMA-Daily Update Page 14

Until the end of the year, this resident of the Kompas100 Index targets gold sales at 255,000 ounces-300,000 ounces. This target is lower than the initial sales target set by UNTR, which is 370,000 ounces. This target is also lower than last year's sales of 410,000 ounces.

Sara said, even without a pandemic, UNTR's sales target was indeed lower than the previous year. This is because the grade of gold extracted this year is lower. Since this year there is a pandemic, UNTR assesses that there is a need for an adjustment of the target again. "Exploration that is running regularly is to ensure that reserves are maintained stable. So rolling like that," said Sara.

However, UNTR still opens up oppor-tunities to acquire new gold mines. Previously, the President Director of United Tractors, Franciscus Xaverius Laksana Kesuma, agreed that the prospects for gold commodities are currently quite bright.

However, Frans said that the acquisition process did take a long time. Starting from the determination of the long bid price, details related to the resource content (resource), and also the ore content of a mine. "Determining the target also requires carefulness. Not all of them have the right size and fit what we want,” said Frans during a virtual public expose, Tuesday (25/8).

In the first semester of 2020, the Martabe gold mine contributed Rp. 4 trillion in net income to UNTR's consolidation, an increase of 11% from the same period in 2019, which was Rp. 3.6 trillion. In the first semester of 2020, the average selling price of Martabe gold was US$ 1,498 per ounce, an increase compared to the same period last year of US$ 1,315 per ounce.

Hingga akhir tahun, penghuni Indeks Kompas100 ini menargetkan penjualan emas di angka 255.000 ounces-300.000 ounces. Target ini lebih rendah dari target penjualan awal yang dipasang oleh UNTR, yakni di angka 370.000 ounces. Target ini juga lebih rendah dari realisasi penjualan tahun lalu 410.000 ounces.

Sara mengatakan, tanpa pandemi pun, target penjualan UNTR memang lebih rendah dibanding tahun sebelumnya. Hal ini karena grade emas yang digali tahun ini lebih rendah. Sehubungan tahun ini sedang terjadi pandemi, UNTR menilai perlu adanya penyesuaian target kembali. “Eksplorasi yang berjalan rutin adalah untuk memasti-kan cadangan tetap terjaga stabil. Jadi ber-gulir seperti itu,” ujar Sara.

Meski demikian, UNTR tetap membuka peluang untuk mengakuisisi tambang emas baru. Sebelumnya, Presiden Direktur United Tractors, Franciscus Xaverius Laksana Kesuma mengamini bahwa prospek komo-ditas emas saat ini cukup cerah.

Hanya saja, Frans mengatakan proses untuk akuisisi memang memerlukan waktu yang cukup lama. Mulai dari penentuan harga penawaran yang cukup panjang, detail terkait kandungan sumberdaya (resource), dan juga kandungan ore dari suatu tambang. “Menentukan target itu juga butuh kejelian. Tidak semuanya memiliki size yang sesuai dan fit dengan yang kami inginkan,” ujar Frans saat paparan publik yang digelar virtual, Selasa (25/8).

Pada semester pertama 2020, Tambang emas Martabe menyumbang pendapatan bersih sebesar Rp 4 tril iun terhadap konsolidasi UNTR, meningkat 11% dari periode yang sama tahun 2019, yakni Rp 3,6 triliun. Semester pertama 2020, rata-rata harga jual emas Martabe sebesar US$ 1,498 per ounces, naik dibandingkan periode yang sama tahun lalu yakni US$ 1.315 per ounces.

IMA-Daily Update Page 15

Bumi Resources Sales Volume Stable

Farid Firdaus ([email protected])

PT BUMI Resources Tbk (BUMI)

maintains coal sales of 41.2 million tons until the first semester of 2020 or

relatively stable compared to the same period last year.

Meanwhile, the company's production reached 41 million tons, up 5 percent from

the previous 39.1 million tons.

Bumi Resources coal sales consisted of

sales from its subsidiary, PT Kaltim Prima Coal (KPC) of 29.5 million tons and PT

Arutmin Indonesia of 11.6 million tons. However, the lower average coal price

realization has eroded Bumi Resources' profits and revenues.

The realization of the coal sales price as of

June 2020 reached US$ 46.9 per ton, 12% lower than the same period last year at

US$ 53.2 per ton.

As a result, Bumi Resources revenue

decreased by 13% to US$ 1.97 billion in the first semester of 2020 compared to the

same period last year of US$ 2.27 billion. Then, the company posted a net loss of US$

87.17 million, changing from the position of net profit in the first half of 2019 of US$

80.7 million.

Bumi Resources Director & Corporate

Secretary Dileep Srivastava said the sharp

decline in coal prices was triggered by

unstable demand from China, India and

most of Asia. The Covid-19 pandemic is the

main factor causing this instability.

Volume Penjualan Bumi Resources Stabil

Farid Firdaus ([email protected])

PT BUMI Resources Tbk (BUMI) menjaga

penjualan batu bara sebanyak 41,2 juta ton hingga semester I-2020 atau relatif stabil

dibandingkan periode sama tahun lalu.

Sedangkan produksi perseroan mencapai

41 juta ton, naik 5% dari sebelumnya 39,1 juta ton.

Penjualan batu bara Bumi Resources terdiri atas penjualan dari anak usahanya,

PT Kaltim Prima Coal (KPC) sebesar 29,5 juta ton dan PT Arutmin Indonesia sebesar

11,6 juta ton. Namun, realisasi rata-ratat harga batu bara yang lebih rendah

menggerus keuntungan dan pendapatan Bumi Resources.

Realisasi harga penjualan batu bara hingga Juni 2020 mencapai US$ 46,9 per ton, lebih

rendah 12% dibandingkan periode sama tahun lalu US$ 53,2 per ton.

Alhasil, pendapatan Bumi Recources menurun 13% menjadi US$ 1,97 miliar

hingga semester I-2020 dibandingkan periode sama tahun lalu US$ 2,27 miliar.

Kemudian, perseroan membukukan rugi bersih US$ 87,17 juta, berubah dari posisi

laba bersih pada semester I-2019 sebesar US$ 80,7 juta.

Director & Corporate Secretary Bumi Resources Dileep Srivastava mengatakan,

realisasi harga batu bara yang turun tajam dipicu oleh permintaan yang tidak stabil

dari Tiongkok, India, dan sebagian besar Asia. Pandemi Covid-19 menjadi faktor

utama penyebab ketidakstabilan tersebut.

IMA-Daily Update Page 16

"However, the company can still generate operating income of US$ 132.7 million, despite the current state of the coal sector and the ongoing pandemic," he explained in an official statement, Tuesday (9/1).

Until the first semester of 2020, the company was able to reduce its cost of goods sold by 7% to US$ 1.73 billion from US$ 1.86 billion in the first semester of 2019.

Meanwhile, the operating margin to revenue was 6.7% from the previous position of 13.1%.

Meanwhile, the company's overburden removal rose 11 percent to 326.6 million bcm from the same period last year of 294.8 million bcm. Meanwhile, the company's total coal inventory by the end of June 2020 was 2.7 million tons, up 5% from the previous 2.6 million tons in the first half of 2019.

According to Dileep, although market uncertainty will still weigh on coal prices in the short term, he is optimistic that the coal industry will continue to develop in the future. This is mainly as a result of the development of coal projects in the downstream sector in the medium term.

This year, Bumi Resources continues to set a production target of around 85-89 million tons. The average sales price is predicted to be US$ 46-49 per ton, while production costs are US$ 32-34 per ton.

Currently, the company is waiting for official confirmation from the Ministry of Energy and Mineral Resources regarding the change in Arutmin's mining lease license from a coal mining concession work agreement (PKP2B) to a special mining business permit (IUPK). Editor: Gora Kunjana

([email protected])

“Kendati demikian, perseroan masih dapat menghasilkan pendapatan operasi sebesar US$ 132,7 juta, terlepas dari kondisi sektor batu bara saat ini dan pandemi yang masih berlanjut,” jelas dia dalam keterangan resmi, Selasa (1/9).

Hingga semester I-2020, perseroan mampu menurunkan beban pokok penjualan sebesar 7% menjadi US$ 1,73 miliar dari US$ 1,86 miliar pada semester I-2019.

Sedangkan margin operasi terhadap pen-dapatan sebesar 6,7% dari posisi sebelum-nya 13,1%.

Adapun overburden removal perseroan naik 11% menjadi 326,6 juta bcm dari periode yang sama tahun lalu sebesar 294,8 juta bcm. Sementara, total inventori batu bara perseroan hingga akhir Juni 2020 sebesar 2,7 juta ton, naik 5% dari sebelumnya sebesar 2,6 juta ton pada semester I-2019.

Menurut Dileep, meskipun ketidakpastian pasar masih membebani harga batu bara dalam jangka pendek, pihaknya optimistis industri batu bara terus berkembang ke depan. Hal ini terutama sebagai dampak perkembangan proyek batu bara sektor hilir secara jangka menengah.

Tahun ini, Bumi Resources tetap mematok target produksi di sekitar 85-89 juta ton. Harga rata-rata penjualan diprediksi US$ 46-49 per ton, sedangkan biaya produksi US$ 32-34 per ton.

Saat ini, perseroan tengah menunggu konfirmasi resmi dari Kementerian Energi dan Sumber Daya Mineral atas perubahan lisensi sewa tambang Arutmin dari per-janjian karya pengusahaan pertambangan batu bara (PKP2B) menjadi izin usaha pertambangan khusus (IUPK). Editor : Gora

Kunjana ([email protected])

IMA-Daily Update Page 17

HBA dropped below US$50 per tonne, the coal industry said

Reporter: Ridwan Nanda Mulyana | Editor: Tendi Mahadi

REFERENCE Coal Prices (HBA) in Septem-ber continued their downward trend in the last six months. The September HBA has also fallen below US$ 50 per tonne and touched its lowest level since 2016.

The Ministry of Energy and Mineral Resources (ESDM) set the HBA for September at US$ 49.42 per ton, or a decrease of US$ 0.92 per ton compared to the August HBA at US$ 50.34 per ton.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said, the HBA which continues to fall indicates that the coal market has not yet recovered. Mainly due to sluggish demand (demand) from China and India as the main markets.

"Yes, it is true, this is the lowest price level since 2016. This indicates that demand is still not improving, especially from China and India," Hendra told Kontan.co.id, Wednesday (2/9).

He explained that economic indicators in China as Indonesia's main coal export market have started to improve. However, demand for imports is still weak. This is due to the availability (stockpile) of the Bamboo Curtain Country which is sufficient while the production output is still strong.

"As the largest coal producer, China is very careful in loosening the import quota tap. Likewise India, imports have dropped dramatically because their economy is still depressed," said Hendra.

HBA terperosok ke bawah US$50 per ton, ini kata industri batubara

Reporter: Ridwan Nanda Mulyana | Editor: Tendi Mahadi

HARGA Batubara Acuan (HBA) bulan

September melanjutkan tren penurunan dalam enam bulan terakhir. HBA September pun sudah terperosok di bawah US$ 50 per ton dan menyentuh level terendah sejak 2016.

Kementerian Energi dan Sumber Daya Mineral (ESDM) menetapkan HBA Septem-ber sebesar US$ 49,42 per ton, atau turun US$ 0,92 per ton dibanding HBA Agustus yang sebesar US$ 50,34 per ton.

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan, HBA yang terus terperosok menandakan belum pulihnya pasar batu-bara. Terutama karena lesunya permintaan (demand) dari China dan India selaku pasar utama.

"Iya benar, ini level harga terendah sejak 2016. Menandakan demand masih belum membaik terutama dari Tiongkok dan India," kata Hendra kepada Kontan.co.id, Rabu (2/9).

Dia membeberkan, indikator ekonomi di China sebagai pasar ekspor batubara utama Indonesia memang sudah mulai membaik. Namun, permintaan impornya masih lemah. Hal itu disebabkan ketersediaan (stockpile) Negeri Tirai Bambu itu yang mencukupi sedangkan output produksinya masih kuat.

"Sebagai produsen batubara terbesar, Tiongkok sangat berhati-hati dalam me-longgarkan keran kuota impor. Demikian pula India, impor sangat turun drastis karena perekonomian mereka masih ter-tekan," sebut Hendra.

IMA-Daily Update Page 18

He said, it was still difficult to predict market conditions and coal prices for the remainder of this year. Because, there are still many uncertainties, especially in terms of handling the Covid-19 pandemic. Especially in China, India and other thermal coal importing countries.

Hendra hopes that demand and prices will improve in the fourth quarter. "Because November has entered winter. However, there are also concerns that the second wave of Covid-19 could change projections," he said.

What is clear, Hendra emphasized that this condition is very burdensome for some coal producers whose selling price for Free on Board (FOB) is already below the cost of production. "The point is, with prices at this level, more than half of the coal produced is below production costs," explained Hendra.

Even so, companies that already have long-term contracts must continue to produce and deliver coal according to the contract. "However, for the spot contract it depends on the respective companies," he concluded.

Separately, the Head of the Communication Bureau, Public Information Services and Cooperation (KLIK) of the Ministry of EMR, Agung Pribadi, acknowledged that since Covid-19 was declared a global pandemic throughout 2020, HBA has continued to be depressed. The HBA did gain 0.28% to US$ 67.08 per ton in March compared to February's US$ 66.89 per ton.

However, the HBA continued to weaken to US$ 65.77 per ton in April and US $ 61.11 per ton in May. Furthermore, in June it fell again to US$ 52.98 per ton and continued in July to US$ 52.16 per ton. In August, the HBA was pegged at US$ 50.34 per tonne and became US$ 49.42 in this September.

Kata dia, masih sulit memprediksikan kondisi pasar dan harga batubara di sisa tahun ini. Sebab, masih banyak ketidak-pastian khususnya dari sisi penanganan pandemi covid-19. Terutama di China, India dan negara-negara pengimpor batubara termal lainnya.

Hendra berharap, demand dan harga sudah bisa membaik pada periode Kuartal keempat. "Karena November sudah memasuki musim dingin. Tapi, masih ada juga kekhawatiran akan gelombang kedua covid-19 yang bisa mengubah proyeksi," ungkapnya.

Yang jelas, Hendra menegaskan bahwa kondisi ini sangat memberatkan sebagian produsen batubara yang bahkan harga jual Free on Board (FOB) sudah di bawah ongkos produksi. "Intinya, dengan harga di level ini, lebih dari separuh batubara yang diproduksi sudah di bawah ongkos produksi," terang Hendra.

Kendati begitu, perusahaan-perusahaan yang sudah memiliki kontrak jangka panjang tentu harus tetap memproduksi dan mengirimkan batubara sesuai kontrak. "Namun bagi kontrak spot itu tergantung dari perusahaan masing-masing," pungkasnya.

Terpisah, Kepala Biro Komunikasi, Layanan Informasi Publik dan Kerja Sama (KLIK) Kementerian ESDM Agung Pribadi mengakui bahwa sejak Covid-19 ditetapkan sebagai pandemi global sepanjang tahun 2020, HBA terus tertekan. HBA memang sempat menguat sebesar 0,28% pada angka US$ 67,08 per ton di bulan Maret dibanding bulan Februari yang US$ 66,89 per ton.

Namun HBA terus mengalami pelemahan ke angka US$ 65,77 per ton di bulan April dan US$ 61,11 per ton di bulan Mei. Selanjutnya di bulan Juni merosot lagi ke angka US$ 52,98 per ton dan berlanjut di Juli menjadi US$ 52,16 per ton. Pada bulan Agustus HBA dipatok US$ 50,34 per ton dan menjadi US$ 49,42 di September ini.

IMA-Daily Update Page 19

According to Agung, the main sentiment of

the HBA contraction was due to the

tightening of import policies in China and

India. This condition has resulted in an

abundance of coal reserves in the two

countries so that the need for coal imports

has decreased. "Covid-19 caused a decline

in coal imports by China by 20% and

demand from India has not yet recovered

after the lockdown," he explained.

For information, the HBA itself is obtained

from the average index of the Indonesia

Coal Index (ICI), Newcastle Export Index

(NEX), Globalcoal Newcastle Index (GCNC),

and Platts 5900 in the previous month. The

equivalent quality of calories is 6322 kcal

per kilogram of GAR.

Later, this reference price will be used

directly in the sale and purchase of coal

commodities (spot) for one month at the

point of delivery of free on board sales on a

carrier vessel (FOB Vessel).

Menurut Agung, sentimen utama dari

kontraksi HBA disebabkan oleh pengetatan

kebijakan impor Tiongkok dan India.

Kondisi ini berujung pada cadangan batu-

bara di kedua negara tersebut melimpah

sehingga kebutuhan impor batubara

menurun. "Covid-19 menyebabkan penu-

runan impor batubara oleh Tiongkok

sebesar 20% dan belum pulihnya permin-

taan dari India pasca-lockdown," jelasnya.

Sebagai informasi, HBA sendiri diperoleh

dari rata-rata indeks Indonesia Coal Index

(ICI), Newcastle Export Index (NEX),

Globalcoal Newcastle Index (GCNC), dan

Platts 5900 pada bulan sebelumnya.

Kualitas yang disetarakan pada kalori 6322

kcal per kilogram GAR.

Nantinya, harga acuan ini akan digunakan

secara langsung dalam jual beli komoditas

batubara (spot) selama satu bulan pada

titik serah penjualan secara Free on Board

di atas kapal pengangkut (FOB Vessel).

Encourage youth around the mine to become Entrepreneurs

and support the Village through

optimization of BUMDes Author: Editors

ONE of the biggest 'shortcomings' of PT

Nusa Halmahera Minerals (NHM) when it was still owned by a foreign company was the lack of company support for the community in developing local potential. For more than 20 years, the community has only been 'lulled into' with the help of corporate social responsibility (CSR).

Dorong Pemuda Lingkar Tambang Jadi Entrepreneur dan

Dukung Desa Lewat

Optimalisasi BUMDes Penulis: Redaksi

SALAH satu ‘kekurangan’ terbesar PT

Nusa Halmahera Minerals (NHM) saat masih dimiliki perusahaan asing, yakni tidak adanya dukungan perusahaan ter-hadap masyarakat dalam mengembangkan potensi lokal. Selama lebih dari 20 tahun, masyarakat hanya ‘dininabobokan’ dengan bantuan corporate social responsibility (CSR).

IMA-Daily Update Page 20

In fact, as a company, apart from being obliged to have a Community Development and Empowerment (PPM) program, it must also be involved in helping the community to grow and develop to be more independent.

"PT NHM currently adheres to the Minister of EMR Regulation No. 41/2016 on PPM. It is not just a Master Plan for Community Development and Empowerment (PPM), but also to further encourage the economy, education, socio-culture, health and the environment around the mine, bo th individually and collectively," said Amin Anwar, representative of PT Indotan Halmahera Bangkit - parent of PT NHM.

According to him, since the beginning, the President Director (Presdir) of PT NHM has emphasized that the presence of the company must be able to improve the welfare of the community around the company. This is done by providing full support to the community to develop their potential.

"One of them is through the need for food from NHM. The community can be a food supplier. Moreover, the mining circle is rich in fishery/marine and agricultural potential . It also has potential in the livestock sector," he said.

"So, through meetings with the subdistrict head and the village head forum, including youth and students, we open up opportunities to 'market' to the community. Here, new jobs will be created immediately. Apart from that, Village-Owned Enterprises (BUMDes) will also be productive," he explained.

Not only that, continued Amin, PT NHM will also prepare various kinds of skills training for youth. This training will be the main capital for young people to become independent entrepreneurs.

Padahal, sebagai perusahaan selain ber-kewajiban memiliki program Pengem-bangan dan Pemberdayaan Masyarakat (PPM), tapi juga harus turut terlibat untuk membantu masyarakat agar bisa tumbuh dan berkembang menjadi lebih mandiri.

“PT NHM saat ini benar-benar berpedoman pada Permen ESDM No 41 Tahun 2016 tentang PPM. Itu tidak sekadar Rencana Induk Pengembangan dan Pemberdayaan Masyarakat (PPM), tapi juga untuk lebih mendorong perekonomian, pendidikan, sosial budaya, kesehatan, dan lingkungan hidup di sekitar tambang, baik secara individu maupun secara kolektif,” kata Amin Anwar, perwakilan PT Indotan Halmahera Bangkit - induk dari PT NHM.

Menurutnya, sejak awal, Presiden Direktur (Presdir) PT NHM sudah menekankan, bahwa kehadiran perusahaan harus mampu meningkatkan kesejahteraan masyarakat di sekitar perusahaan. Caranya, dengan mem-berikan dukungan penuh kepada masya-rakat untuk mengembangkan potensinya.

“Salah satunya melalui kebutuhan NHM akan pangan. Masyarakat bisa menjadi penyuplai bahan pangan. Apalagi lingkar tambang kaya akan potensi perikanan/ kelautan dan pertanian. Juga memiliki potensi dalam sektor peternakan,” ujarnya.

“Nah, lewat pertemuan dengan camat dan forum kepala desa, termasuk pemuda dan mahasiswa, kami membuka peluang ‘pasar’ kepada masyarakat. Di sini akan secara langsung tercipta lapangan pekerjaan baru. Selain itu Badan Usaha Milik Desa (BUMDes) juga akan produktif,” terangnya.

Tidak hanya itu, lanjut Amin, PT NHM juga akan menyiapkan berbagai macam pelatihan keterampilan bagi pemuda. Pelatihan ini akan menjadi modal utama bagi pemuda untuk menjadi entrepreneur-entrepreneur mandiri.

IMA-Daily Update Page 21

"In essence, PT NHM will do its utmost to help improve the welfare of the community

around the mine," he explained.

In addition, from H Ribert's meeting with students, PT NHM will continue to provide

educational funding assistance and outstanding scholarships. Meanwhile,

regarding the construction of student dormitories, PT. NHM prefers to provide

direct assistance to each student for boarding money (house contract).

As previously reported, the new NHM, under the command of H Robert Nitiyudo,

gave new enthusiasm to the community. Moreover, so far, NHM has done a lot of

good, such as distributing aid to the community due to the Covid-19 pandemic.

"The current NHM is indeed great. Their concern for the community has been seen

through the distribution of aid to the community. Not only in the vicinity of the

mine or in Halut Regency, but all regencies/cities in North Sumatra were

also given assistance," said Rido, who was entrusted as the Head of the Malifut

District Heads Forum, Wednesday (2/9).

Rido, who is also the Head of Sosol Village, assesses that when compared to the past

and present NHM, it is very different. The NHM in H Robert's hands is very good at

the moment. "If I have an assessment of the meeting time in Jakarta, NHM and the

current owner have good intentions. Pak Haji (H Robert) wants when there is a

problem sit together and discuss it carefully and find a solution,” he explained.

Not only that, continued Rido, the programs that are being presented by PT

NHM at this time are in fact have a direct contact with the community and can make

the community prosperous.

“Intinya, PT NHM akan berupaya maksimal untuk membantu meningkatkan kesejah-teraan masyarakat di lingkar tambang menjadi lebih baik,” terangnya.

Selain itu, dari pertemuan H Ribert dengan mahasiswa, PT NHM akan terus mem-berikan bantuan dana pendidikan dan beasiswa berprestasi. Sementara itu, mengenai pembangunan asrama maha-siswa, PT NHM lebih memilih memberikan bantuan langsung kepada setiap masing-masing mahasiswa untuk uang kost (kontrak rumah).

Sebagaimana diberitakan sebelumnya, NHM baru di bawah komando H Robert Nitiyudo, memberikan semangat baru bagi masyarakat. Apalagi selama ini, NHM sudah sangat banyak berbuat kebaikan, seperti distribusi bantuan bagi masyarakat akibat pandemi covid-19.

“NHM saat ini memang hebat. Kepedulian mereka kepada masyarakat sudah terlihat melalui penyaluran bantuan-bantuan kepada masyarakat. Tidak hanya di lingkar tambang atau di Kabupaten Halut tetapi seluruh Kabupaten/Kota di Malut pun ikut diberikan bantuan,” kata Rido yang dipercayakan sebagai Ketua Forum Kades Kecamatan Malifut, Rabu (2/9).

Rido yang juga Kades Sosol ini menilai, bila dibandingkan NHM yang dulu dan sekarang, sangat jauh berbeda. NHM di tangan H Robert sangat bagus saat ini. “Kalau saya punya penilaian waktu per-temuan di Jakarta itu, NHM dan pemilik yang sekarang punya niat baik. Pak Haji (H Robert) ingin ketika ada masalah duduk bersama dibicarakan baik-baik dan men-cari solusi-nya,” terangnya.

Tak hanya itu lanjut Rido, program-program yang di sajikan PT NHM saat ini ternyata sangat bersentuhan langsung ke masyarakat dan bisa membuat masyarakat sejahtera.

IMA-Daily Update Page 22

"This is the first time that the NHM program is open to the public. Not only health, education, and agricultural programs, but indigenous people also pay attention to their fate," he said.

A similar sentiment was conveyed by Iskandar H. Karim, Head of the Village Head Forum, Kao Teluk District. He considered that PT. The current NHM is more transparent and responds quickly when there are problems. Even at the highest level of leadership, they directly intervened in solving problems. "Indeed, I also salute the President Director of PT NHM H Robert. He as the highest leader can adjust or meet the community directly. It's different from the previous one which was difficult to find," he said.

However, Iskandar did not want to comment much on the results of the meeting some time ago. According to him, it would be wiser if the program had started running. "For the moment, I cannot comment much. Because torang (us) have not followed up on the points that have been agreed upon," he said.

Separately, the chairman of the Boeng Indigenous Youth Institute (Lepa Boeng)

Mesak Habari appreciated PT NHM for giving a positive response to all elements

in the area surrounding the mine. "We need to give our appreciation for this good

intention," said Mesak.

Even so, Mesak hopes that PT NHM's plan to facilitate all the needs of young people

around the mine in farming can later be strengthened by a written recommen-

dation as a legal force. "We are still waiting for follow-up from the company. Because,

this is their program that was delivered during a meeting with young people

around the mine," said Mesak.

“Baru kali ini program NHM terbuka ke masyarakat . Bukan h anya program kesehatan, pendidikan, dan pertanian, tapi masyarakat adat pun ikut diperhatikan nasibnya,”ujarnya.

Senada disampaikan Ketua Forum Kades Kecamatan Kao Teluk, Iskandar H. Karim. Ia menilai PT. NHM yang sekarang lebih transparan dan cepat respon ketika ada permasalahan. Bahkan setingkat pimpinan tertinggi mereka ikut turun tangan secara langsung selesaikan masalah. ”Memang saya juga salut dengan Presdir PT NHM H Robert. Beliau sebagai pimpinan tertinggi bisa menyesuaikan atau bertemu dengan masyarakat secara langsung. Beda dengan sebelumnya yang sulit ditemui,” tuturnya.

Namun Iskandar belum mau berkomentar banyak soal hasil pertemuan beberapa waktu lalu. Menurutnya, akan lebih arif jika program sudah mulai berjalan. “Untuk semenatra saya belum bisa komentar banyak. Karena torang (kami) belum tindak lanjut poin-poin yang sudah di-sepakati,” ungkapnya.

Terpisah, Ketua Lembaga Pemuda Adat Boeng (Lepa Boeng) Mesak Habari mem-berikan apresiasi terhadap PT NHM karena memberikan respon positif terhadap semua elemen yang berada di wilayah lingkar tambang. “Niat baik itu perlu kami berikan apresiasi,” kata Mesak.

Meski demikian, Mesak berharap, rencana PT NHM untuk memfalisitasi seluruh keperluan pemuda-pemudi l ingkar tambang dalam bertani nantinya bisa diperkuat dengan rekomendasi tertulis sabagai kekuatan hukum. “Kami masih menunggu tindak lanjut dari pihak perusahan. Sebab, ini program mereka yang disampaikan saat pertemuan dengan pemuda-pemudi lingkar tambang,” sebut Mesak.

IMA-Daily Update Page 23

How about students? Rovin Djinimangale,

one of the student representatives said

that the presence of PT NHM with various

programs seems to have a concern for the

welfare of the community. Even now,

educational programs are very helpful for

generations around the mine in their

studies. "Various programs through CSR

really help people l iving in areas

surrounding the mine, especially in

educational programs," said Rovin. (dit/fir)

Bagaimana dengan mahasiswa? Rovin Djinimangale, salah satu perwakilan maha-siswa menuturkan, bahwa kehadiran PT NHM dengan berbagai program terlihat memiliki kepedulian untuk mensejah-terakan masyarakat. Bahkan saat ini program bidang pendidikan sangat mem-bantu generasi-generasi lingkar tambang dalam berstudi. “Berbagai program lewat CSR sangat membantu masyarakat yang berada di wilayah lingkar tambang, khusus di program pendidikan,” tutur Rovin. (dit/fir)

Demand Begins to Recover, Mining Sector Credit Grows Two

Digits Ni Putu Eka Wiratmini

INCREASED product demand and

utilization led to a double digit increase in lending to the mining sector in July 2020.

As of July 2020, credit for the mining sector has stretched with a growth per July 2020 of 11.29 percent. This realization was higher than the position in June 2020 which was 7.69 percent.

Financial Services Authority (OJK) Expert Staff, Ryan Kiryanto, said that countries importing mining products from Indonesia have opened a lockdown so that demand for these commodities has increased.

This condition made the productive sector the largest contributor to credit growth as of July 2020, which amounted to 1.53 percent.

Other productive sectors that also recorded credit growth as of July 2020 were construction at 3.08 percent and processing at 1.66 percent.

Permintaan Mulai Pulih, Kredit Sektor Tambang Tumbuh Dua

Digit Ni Putu Eka Wiratmini

PERMINTAAN produk dan utilisasi yang

meningkat telah membuat kenaikan double digit penyaluran kredit ke sektor pertam-bangan pada Juli 2020.

Per Juli 2020, kredit sektor pertambangan telah menggeliat dengan pertumbuhan per Juli 2020 adalah sebesar 11,29 persen. Realisasi ini lebih tinggi dari posisi Juni 2020 yang sebesar 7,69 persen.

Staf Ahli Otoritas Jasa Keuangan (OJK) Ryan Kiryanto mengatakan negara pengimpor produk pertambangan dari Indonesia telah membuka lockdown sehingga permintaan komoditas tersebut pun meningkat.

Kondisi ini membuat sektor produktif men-jadi penyumbang terbesar pertumbuhan kredit per Juli 2020 sebesar 1,53 persen.

Sektor produktif lain yang juga mencatatkan pertumbuhan kredit per Juli 2020 adalah konstruksi sebesar 3,08 persen dan peng-olahan yang sebesar 1,66 persen.

IMA-Daily Update Page 24

Realization of credit in the manufacturing sector in the position of July 2020 showed an increase compared to the position of June which was at the level of 1.23 percent. However, the realization of the construction sector credit was actually lower than the position in June 2020 was 4.41 percent.

"In terms of credit, the growing sector is a productive sector, there is a mining sector that is stretching," he said in a live streaming of the OJK press statement, Wednesday (2/9/2020).

In terms of types of credit usage, investment credit grew quite significantly as of July 2020, namely by 5.92 percent. Followed by the consumer sector, which grew 1.45 percent, and working capital credit which corrected 0.86 percent.

According to him, decreased consumption due to social restrictions has resulted in low consumption credit. Currently, OJK is trying to encourage the growth of working capital loans rather than other loans.

"The need for working capital has not been expected because they tend to ask for investment credit rather than working capital credit," he said. Editor: Annisa Sulistyo

Rini

Realiasi kredit sektor pengolahan pada posisi Juli 2020 menunjukkan peningkatan dibandingkan posisi Juni yang berada pada level 1,23 persen. Hanya saja, kredit sektor konstruksi realisasinya justru lebih rendah dari posisi Juni 2020 yang sebesar 4,41 persen.

"Secara sektoral kredit yang tumbuh itu sektor produktif, ada sektor pertambangan yang menggeliat," katanya dalam live streaming keterangan pers OJK, Rabu (2/9/2020).

Dari segi jenis penggunaan kredit, kredit investasi tumbuh cukup signifikan per Juli 2020 yakni sebesar 5,92 persen. Diikuti sektor konusmi yang tumbuh 1,45 persen, dan kredit modal kerja yang terkoreksi 0,86 persen.

Menurutnya, konsumsi yang menurun akibat pembatasan sosial telah meng-akibatkan rendahnya kredit konsumsi. Saat ini, OJK berupaya mendorong pertum-buhan kredit modal kerja daripada kredit lainnya.

"Kebutuhan modal kerja belum diharapkan karena mereka cenderung meminta kredit investasi daripada kredit modal kerja," katanya. Editor : Annisa Sulistyo Rini

Pressed Coal, Could Drop Again to Below US$ 50/ton

Tirta Citradi, CNBC Indonesia

THE PRICE of Newcastle thermal coal for

the contract which is actively traded yesterday closed down considerably. The

price of coal has fallen back to US$ 50/ton.

Batu Bara Tertekan, Bisa Turun di Bawah US$ 50/ton Lagi Nih

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal Newcastle untuk kontrak yang aktif diperdagangkan kemarin ditutup anjlok cukup dalam. Harga batu bara kembali turun menuju level US$ 50/ton.

IMA-Daily Update Page 25

On Wednesday (2/9/2020), the price of Newcastle thermal coal dropped 1.7% to

US$ 51.7 per ton. In the last month, the lowest coal price was recorded at US$

48/ton and the highest was at US$ 54/ton.

Based on the tracking data of the Refinitiv vessel, last month's imports of thermal coal

and coke reached 12.2 million tons. Until the end of August, India's coal imports

were estimated to reach 12.7 million tons for the maximum figure.

The decline in India's import volume is inseparable from the implementation of a national lockdown that was adopted by the country last March to control the spread of the corona virus in the second most populous country in the world as well as the second largest importer after China.

India's coal import volume in July was also at 12 million tons, which means it is not too different from the import volume in August. India's coal imports were the worst recorded in June with total imports of only 8.8 million tonnes.

Although there was improvement in July,

imports still fell 17% (yoy) compared to the same period last year. August coal

imports also plunged 24% (yoy) to below 16 million tonnes last year, reported

Reuters.

For the first eight months of this year, India's coal imports were recorded at

113.96 million tonnes or 18.9% lower than the same period last year. This clearly has

a significant impact on suppliers of imported coal from India, namely

Indonesia and Australia.

There is little good news, however. This

time the good news is from Europe. European coal-fired power stations posted

a moderate recovery in August.

Pada Rabu (2/9/2020), harga batu bara termal Newcastle anjlok 1,7% ke US$ 51,7 per ton. Dalam sebulan terakhir harga batu bara terendah tercatat di US$ 48/ton dan tertinggi di US$ 54/ton.

Berdasarkan data pelacakan kapal Refinitiv, impor batu bara termal maupun kokas India pada bulan lalu tercatat men-capai 12,2 juta ton. Hingga akhir Agustus impor batu bara India diperkirakan men-capai 12,7 juta ton untuk angka maksimal-nya.

Penurunan volume impor India ini tak terlepas dari penerapan lockdown nasional yang ditempuh oleh negara tersebut pada Maret lalu untuk mengendalikan penye-baran virus corona di negara terpadat kedua di dunia sekaligus importir kedua terbesar setelah China.

Volume impor batu bara India di bulan Juli juga berada di angka 12 juta ton yang artinya tidak terlalu berbeda dengan volume impor Agustus. Impor batu bara India tercatat paling parah di bulan Juni dengan total impor hanya 8,8 juta ton saja.

Meski ada perbaikan di bulan Juli, tetapi impornya masih turun 17% (yoy) di-bandingkan dengan periode yang sama tahun lalu. Impor batu bara Agustus pun anjlok 24% (yoy) di bawah 16 juta ton tahun lalu, melansir Reuters.

Untuk delapan bulan pertama tahun ini, impor batu bara India tercatat mencapai 113,96 juta ton atau 18,9% lebih rendah dibanding periode yang sama tahun lalu. Hal ini jelas berdampak signifikan ter-hadap para pemasok batu bara impor India yakni Indonesia dan Australia.

Namun sedikit ada kabar baik. Kali ini kabar baiknya dari Eropa. Pembangkit listrik berbahan bakar batu bara Eropa mencatatkan ter jadinya pemulihan moderat pada bulan Agustus.

IMA-Daily Update Page 26

Additionally the prospect of winter coal

burning has improved in recent weeks.

Argus' analysis shows that coal burning

from September to December will only

drop slightly from the previous year.

To quote Argus Media, aggregate coal-fired

power plants in Germany, France, Spain

and the UK were 2.4TWh last month, the

highest since March. This represents a

decrease in year-on-year output of 35.9%,

but is one of the smallest monthly declines

in the past two years. RESEARCH TEAM CNBC

INDONESIA (twg/twg)

Selain itu prospek pembakaran batu bara musim dingin telah membaik dalam beberapa pekan terakhir. Analisis Argus menunjukkan bahwa pembakaran batu bara September-Desember hanya akan turun sedikit dari tahun sebelumnya.

Mengutip Argus Media, pembangkit listrik berbahan bakar batu bara agregat di Jerman, Prancis, Spanyol dan Inggris adalah 2,4TWh bulan lalu, tertinggi sejak Maret. Ini menunjukkan penurunan output tahun ke tahun sebesar 35,9%, tetapi merupakan salah satu penurunan bulanan terkecil dalam dua tahun terakhir. TIM RISET CNBC INDONESIA (twg/twg)

PT Borneo Alumina Indonesia appointed Progesys a part of PMC consortium for 1MTPA Smelter Grade Alumina Refinery Project

News Provided By Progesys

PT BORNEO Alumina Indonesia (PT BAI) appointed in mid-2019 a consortium, formed of

three companies, for the Project Management Consultancy (PMC) of the development and

execution of a One Million Tonne Per Annum (MTPA) smelter grade alumina refinery, a 2x40,000 normal cubic meter per hour (Nm3/hr) coal gasification plant and a 3x25 megawatt

(MW) coal-fired power plant.

Within the Project Management Consultancy (PMC) consortium there is Progesys, a Canadian company with international presence, managing the alumina refinery scope; Black & Veatch, a

global engineering firm, managing the power and coal gasification scope and JAYA CM supporting the project with site construction engineers and quality inspectors.

“The PT Borneo Alumina Indonesia SGAR project in West Kalimantan is a strategic project

and a major investment adding value to the PT ANTAM Bauxite Mining operations and PT INALUM Aluminum Smelting operations, and we are proud to be contributing to this

important project. Progesys is providing project management, engineering, and transition to operations expertise to PT BAI since mid-2019 and is looking forward to continuing to deliver

on project objectives,” says Riad Faour, CEO of Progesys.

The PMC consortium is responsible for evaluating the EPC engineering, procurement and

construction works and monitoring major equipment supply. It will also manage risks and oversee site construction and commissioning.

IMA-Daily Update Page 27

Progesys, with its head office in Quebec, Canada, provides complete project management, engineering, and transition to operations services to clients worldwide, including Asia, since 2010. Progesys provides services to the mining and metals, hydrocarbons, pulp and paper, energy, life sciences, and infrastructure and transportation industries.

Black & Veatch is headquartered in Overland Park, Kansas. It is a global engineering, procurement, construction (EPC) and consulting company specializing in infrastructure development in power, oil and gas, water, telecommunications, government, mining, data centers, smart cities and banking and finance markets.

JAYA CM is an Indonesian construction management company.

China's GEM to buy nickel chemicals from rivals in Indonesia

CHINA's GEM Co Ltd , pursuing a high-profile nickel project in Indonesia, said on Wednesday

it had signed a deal to buy battery-grade nickel chemicals from a rival plant in the Southeast Asian country. The nickel market is banking on Chinese investment in Indonesian high-pressure acid leach (HPAL) projects to supply electric vehicle battery materials. However, travel curbs in place due to the coronavirus are putting ambitious start-up timeframes in doubt.

Battery recycling firm GEM will buy between 74,400 and 178,560 tonnes of nickel materials from a HPAL project on the island of Obi over eight years from 2021, it said in a filing to the Shenzhen Stock Exchange. The project on Obi is a joint venture between China's Ningbo Lygend and Indonesian firm Harita to produce nickel sulphate and cobalt sulphate for use in electric vehicle batteries and intermediate mixed hydroxide precipitate.

Obi is due to start production this quarter, Lygend said in July. The deal will see GEM buy between 9,300 to 22,320 tonnes of nickel and 1,162 to 2,790 tonnes of cobalt a year from Obi. Lygend "will make every effort to ensure that the project enters commercial operation before June 30, 2021," GEM said. GEM, with partners including Tsingshan Holding Group, had been due to start trial production at its own HPAL project on the Indonesian island of Sulawesi last month. (Reporting by Tom Daly; Editing by Pratima Desai and Elaine Hardcastle)

Ivanhoe expects first copper at Kakula in less than a year Cecilia Jamasmie

CANADA’s Ivanhoe Mines (TSX:IVN) expects to begin producing copper at its Kakula project

in the Democratic Republic of Congo in less than a year, as total underground development to date has surpassed the 20 km mark – about 6 km ahead of schedule.

IMA-Daily Update Page 28

Kakula, the first mine planned at the Kamoa-Kakula concession, is initially forecast to

generate 3.8 million tonnes of ore a year at an average feed grade “well in excess of 6%

copper” over the first five years of operation.

The Vancouver-based miner aims to issue an independent definitive feasibility study for the

development of the six-million-tonne-a-year Kakula mine later this month.

It also expects to issue a prefeasibility study, including mining the 1.6-million tonnes a year

from the Kansoko mine, in order to “take full advantage of an expanded plant capacity of 7.6-

million tonnes a year at Kakula.”

Ivanhoe’s co-chairperson Robert Friedland, who made his fortune from the Voisey’s Bay

nickel project in Canada in the 1990s, has been working on Kamoa-Kakula for ten years.

The mining veteran believes the project, being developed in partnership with China’s Zijin

Mining Group, will become the world’s second-largest copper mine.

World’s “greenest” copper

Ivanhoe said it will soon announce the appointment of an environmental consultant to audit

Kamoa-Kakula’s greenhouse-gas intensity metrics.

The firm’s report would provide environmental, social and governance investors with

independent and transparent verification of the project’s contribution towards Ivanhoe’s goal

of producing the world’s greenest copper, the miner said.

It also noted it was in “detailed discussions with a number of parties” about marketing and

smelting its copper concentrates.

Last month, the company struck a strategic partnership with China Nonferrous Metal Mining

(CNMC) to explore opportunities, including exploration and smelting, in Africa.

In January, CNMC opened Congo’s first large-scale copper smelter, the Lualaba Copper

Smelter, 45km from the Kamoa-Kakula copper joint venture in the country’s southern

copperbelt.

Kamoa-Kakula is a strategic partnership between Ivanhoe Mines (39.6%), Zijin Mining Group

(39.6%), Crystal River Global Limited (0.8%) and the DRC government (20%).

The company is exploring for new copper discoveries on its wholly-owned Western Foreland

exploration licenses, adjacent to the Kamoa-Kakula mining license.

Ivanhoe is also advancing the Platreef palladium-platinum-nickel-copper-gold-rhodium

discovery in South Africa and upgrading its historic Kipushi zinc-copper-silver-lead-

germanium mine, also in the DRC.

IMA-Daily Update Page 29

Australian gold miners see production rise 10% in June quarter - Surbiton Associates

By Neils Christensen

THE GLOBAL COVID-19 pandemic hasn't been enough to stop the massive momentum

propelling the Australian mining sector, which saw another quarter of strong production, according to the latest data from Melbourne-based gold mining consultants Surbiton Associates Pty. Ltd.

In a report published this week, the firm said that Australian miners produced 85 tonnes of gold between April and June, a 10% increase from the 77 tonnes produced in the first quarter.

For the fiscal year ending in June, the analysts said that Australian companies produced 328 tonnes, a record for any 12-month period.

The company said that the output is worth almost $25 billion in Australian dollars, at the average gold price for the financial year.

"I cannot recall so much interest in gold since the modern boom began almost 40 years ago," said Dr. Sandra Close, a director of Surbiton Associates. "There is a high level of activity overall, from investment, increased capital raisings and initial public offerings, to greater exploration and drilling and a scramble to peg new ground."

Not only did Australian mining companies see an increase in production in the second quarter, but Close also noted that it came during what is traditionally a seasonally slow period.

"Almost all operations have increased output in the June quarter," Close said.

Along with higher gold production, Australian gold producers are also enjoying rising gold prices. In early August, the London Bullion Market Association gold price PM fix reported an all-time high gold price of US$2,067 per ounce. On the same day, spot gold, priced in Australian dollars, rose to a record high of A$2,868 per ounce.

"Producers seemed to be taking advantage of the rising gold price to treat some lower grade stockpiles in the March quarter," said Close.

Although there is a lot of optimism in the marketplace, Close also warned investors that they need to temper their expectations.

"As usual, whenever gold prices rise appreciably, forecasts begin to appear and recently prices of US$3,000 or even US$4,000 per ounce have been bandied about," Close said. "These 'forecasts' are no more than guesses or perhaps, hopes. I have said it often and shall say it again – no one can really predict the future."

IMA-Daily Update Page 30

Codelco sees copper production drop in July, private mines up

CHILE’s state-owned copper miner Codelco saw a 4.4% drop in year-on-year production in

July as the coronavirus hit its peak in the nation and forced the company to scale back

staffing, slow projects and switch off a smelter.

Codelco produced 133,300 tonnes of copper in July, up 2.3% over the first seven months of

2020 compared to the previous year, while production at Escondida mine owned by BHP rose 3.8% in July to 100,900 tonnes, and production from Collahuasi mine, majority-owned by

Anglo American and Glencore, rose 22.8% in July to 58,100 tonnes.

(Reporting by Fabian Cambero, writing by Aislinn Laing, editing by Chris Reese)

Coal India reports first rise in monthly shipments since February By: Bloomberg

COAL India reported the first increase in monthly shipments since February, after demand

for the fuel picked up with easing of restrictions aimed at controlling the coronavirus pandemic.

The company shipped 44.34-million tons of coal in August, 9.3% more than a year earlier. Output rose 7% to 37.2-millions tons, the first increase in five months, company filing shows.

The demand for electricity has been rising since offices, factories and other commercial establishments resumed work after weeks of strict lockdown, which led to a record slump in the country’s quarterly gross domestic product. While an increase in energy consumption offers early signs of recovery, rapidly rising infection cases pose a threat.

Power plants, which consume nearly 80% of Coal India’s sales, have seen their inventories slide from record levels earlier this year. That may prompt buyers to replenish their stockpiles, according to Rupesh Sankhe, vice president at Elara Capital India Pvt. in Mumbai.

“Coal India is aggressively pushing its sales to make the best of the demand revival, “ Sankhe said. “Its own stockpiles have swollen substantially and it is under pressure to bring that down.”

The company is also bracing for the future and plans to spend 1.22-trillion rupees ($16.7-billion) in about 500 projects related to coal evacuation infrastructure, exploration and clean coal technologies, coal minister Pralhad Joshi said in a separate statement.

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Mining outdoes nation-wide economic performance Vanessa Zhou

THE MINING industry has bucked the national trend with an increase in output during the

June quarter, according to Minister for Resources, Water and Northern Australia Keith Pitt. This is a 1.1 per cent rise compared to the same period last year.

“Encouragingly, mining investment also rose by 1.3 per cent on the previous quarter, and up by almost 8 per cent on the previous year, which is a good indication of the confidence in the Australian resources sector, despite the impact of COVID-19,” Pitt said.

Meanwhile, Western Australia experienced its strongest growth in seven years during the 2019-20 year while battling with the global COVID-19 pandemic.

Its was the only state in Australia to experience growth in its domestic economy (1.1 per cent ), and this was attributed to hard border policy and its response to COVID-19.

It delivered a 9.3 per cent increase in business investment, which was guided by the mining sector as it continued operating throughout the pandemic.

Western Australia’s Treasurer Ben Wyatt, crediting the state’s border policy, said it had allowed the state to open up its domestic economy sooner and allow businesses to restart and Western Australians to get back to work.

“Constantly changing the rules to deal with outbreaks is bad for business confidence and, in turn bad, for the economy as we have seen in states with open borders,” he said.

“The McGowan Government is taking action with its $5.5 billion recovery plan to return our economy to its pre-COVID growth trajectory as quickly as possible, to support WA businesses and get Western Australians back to work.”

New South Wales and Victoria’s economy both contracted by around 8.5 per cent, compared with a 6 per cent contraction in Western Australia’s state final demand.

US House lawmakers seek to reduce dependence on China for rare earths

US lawmakers have launched a bipartisan bill aimed at reducing the country’s reliance on

China for rare earth elements, which are viewed as critical to the defence, telecommuni-cations and renewable energy sectors.

Rare earth elements are used as critical components across several industries, ranging from electric vehicles to smartphones.

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They are also vital for satellites, missile guidance systems, missile defence systems and more – fuelling concerns over China’s control over the materials.

The latest legislation was co-authored by Republican Lance Gooden and Democrat Vicente Gonzalez. It is similar to the legislation introduced in May this year by Republican Senator Ted Cruz, Bloomberg reported.

According to the news agency, the move would give tax incentives for mining companies as well as other firms involved in the reclaiming and recycling of critical minerals and metals from the US deposits.

USA Rare Earth CEO Pini Althaus was quoted by the news agency as stating: “The tax incentive seeks to level the playing field with regard to the subsidies China provides from mine to magnet.

“It would significantly improve the bottom line of any domestic rare earth project.”

Republicans Will Hurd, Pete Olson, Roger Williams and Randy Weber, as well as Democrat Henry Cuellar are the co-sponsors of the bipartisan bill.

As trade relations between the US and China deteriorate further, the US House of Representatives launched a bipartisan caucus in July to boost the production of strategically important minerals.

Recently, the US Department of Energy (DoE) announced its plans to provide $20m in financing for basic research, which is aimed at ensuring the continued availability of rare earth elements in the US.

Last month, Russia planned a $1.5bn investment in rare earth minerals. Both Russia and the US are trying to reduce their reliance on China for rare earths.

In July, rare earths miner Lynas signed a contract with the Pentagon to start initial design work for rare earth separation facility in Texas, US.

Lynas expects to complete the design work for the facility in FY2021.