TABLE OF CONTENTS€¦ · Di bidang energi dan sumber daya mineral atau ESDM, UU Cipta Kerja juga mengatur soal hilirisasi batu bara. ... Apabila pemerintah tak kunjung menyusun dan

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Omnibus Law on Job Creation Ratified, There are Regulations for Downstream Coal & Oil and Gas Omnibus Law Ciptaker Disahkan, Ada Aturan Hilirisasi Batu Bara & Migas October 2020 Mining HPE Crawling Up HPE Tambang Oktober 2020 Merangkak Naik Developing the gold business, Bumi Resources Minerals (BRMS) holds a rights issue Kembangkan bisnis emas, Bumi Resources Minerals (BRMS) gelar rights issue Antam Becomes Top Choice, Stock Price Target Revised Up Antam Jadi Pilihan Teratas, Target Harga Saham Direvisi Naik Very Top! Coal Still Unwilling to Drop from US$ 60/ton Top Banget! Batu Bara Masih Ogah Melorot dari US$ 60/ton Nickel-producing Indonesia in early talks with Tesla on investment MICROMINE to reveal mining software latest at Diggers & Dealers US grabs stake in battery metals miner to fight Chinese control Copper output from world’s top ten producers declined by 3.7% in Q2 Super merger: Northern Star and Saracen to join forces

Katadata Neraca Kontan Investor Daily CNBC Indonesia Mining Weekly Int'l Mining Mining.com Mining Metal News Australian Mining

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Omnibus Law on Job Creation Ratified, There are

Regulations for Downstream Coal & Oil and Gas

Article 39 of the Job Creation Law states that business actors who increase the added value of coal can get royalty

charges of up to 0%. By Sorta Tobing

THE GOVERNMENT and Parliament

(DPR) have passed the Draft Omnibus Law on Job Creation this afternoon, Monday (5/10). As many as seven of the nine factions agreed to turn the bill into the Job Creation Law.

This regulation was issued to increase employment in the midst of increasingly competitive global competition. "The state needs to make efforts to fulfill citizens' rights to work and a decent living," reads the first explanation in the Job Creation Bill as written, Monday (5/10).

The broomstick law changes many things for the sake of ease of investment, such as business l icensing , employment, to taxation. What is now in the spotlight is the issue of severance pay, the elimination of sectoral minimum wages, to the role of community organizations in halal product certificates.

In the field of energy and mineral resources or ESDM, the Job Creation Law also regulates the issue of downstream coal. Article 39 states that business actors who increase the added value of coal can get royalty charges of up to 0%. This provision will be regulated in government regulations.

Omnibus Law Ciptaker Disahkan, Ada Aturan Hilirisasi

Batu Bara & Migas Pada pasal 39 UU Cipta Kerja

menyebutkan pelaku usaha yang melakukan peningkatan nilai tambah

batu bara bisa mendapatkan pengenaan

royalti hingga 0%. Oleh Sorta Tobing

PEMERINTAH dan DPR telah menge-

sahkan Rancangan Undang -Undang Omnibus Law Cipta Kerja pada siang tadi, Senin (5/10). Sebanyak tujuh dari sembilan fraksi sepakat menjadikan RUU itu menjadi Undang-Undang Cipta Kerja.

Aturan ini terbit untuk meningkatkan penyerapan tenaga kerja di tengah persaingan global yang semakin kompe-titif. "Negara perlu melakukan upaya memenuhi hak warga atas pekerjaan dan penghidupan yang layak," bunyi penjelasan pertama dalam RUU Cipta Kerja seperti ditulis, Senin (5/10).

UU sapu jagat itu merombak banyak hal demi kemudahan investasi seperti per-izinan usaha, ketenagakerjaan, hingga perpajakan. Yang sekarang menjadi sorotan adalah soal pesangon, peng-hapusan upah minimum sektoral, hingga peran organisasi masyarakat pada sertifikat produk halal.

Di bidang energi dan sumber daya mineral atau ESDM, UU Cipta Kerja juga mengatur soal hilirisasi batu bara. Dalam Pasal 39 menyebutkan pelaku usaha yang melaku-kan peningkatan nilai tambah batu bara bisa mendapatkan pengenaan royalti hingga 0%. Ketentuan ini akan diatur dalam peraturan pemerintah.

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Then, in the downstream sector of oil and natural gas (oil and gas), Article 46 states that supervision of the implementation of supply and distribution of fuel oil (BBM) and transportation of natural gas through pipes is carried out by the regulatory agency.

In addition to regulating, the agency's duties are also to determine the availability and distribution of fuel, national fuel reserves, utilization of fuel transportation and storage facilities, tariffs for transportation of natural gas through pipelines, prices for natural gas for households and small customers, and the operation of natural gas transmission and distribution.

The government and DPR agreed not to include several regulations regarding minerals and coal, aka mineral and coal, because there is already Law Number 3 of 2020 concerning Amendments to the Minerba Law.

In addition, the government through the Ministry of EMR has failed to include provisions regarding state-owned enter-prises or Special SOEs to carry out upstream oil and gas activities in the Job Creation Law. The rules will be included in the changes to the Oil and Gas Law which will be discussed in the future. This Special BUMN is planned to replace SKK Migas.

Regarding the Minerba Law and the Oil and Gas Bill

One of the highlights in the initial draft of the Omnibus Law on Job Creation was the matter of extending the coal management work agreement (PKP2B) into a special mining business permit (IUPK) without going through an auction mechanism. This article was later included in the new Minerba Law.

The ratification of the Minerba Law was fairly quick. The working committee was formed on February 13. Within three months...

Lalu, di bidang hilir minyak dan gas bumi (migas), pada pasal 46 tertulis pengawasan

pelaksanaan penyediaan dan pendistri-busian bahan bakar minyak (BBM) dan

pengangkutan gas bumi melalui pipa dilakukan oleh badan pengatur.

Selain mengatur, tugas badan ini juga

menetapkan ketersediaan dan distribusi BBM, cadangan BBM nasional, peman-

faatan fasilitas pengangkutan dan penyim-panan BBM, tarif pengangkutan gas bumi

melalui pipa, harga gas bumi rumah tangga dan pelanggan kecil, serta pengusahaan

transmisi dan distribusi gas bumi.

Pemerintah dan DPR sepakat tidak jadi memasukkan beberapa aturan soal mineral

dan batu bara alias minerba karena sudah ada UU Nomor 3 Tahun 2020 tentang

Perubahan UU Minerba.

Selain itu, pemerintah melalui Kemen-

terian ESDM urung memasukkan keten-tuan mengenai badan usaha milik negara

atau BUMN Khusus untuk melaksanakan kegiatan hulu migas dalam UU Cipta Kerja.

Aturannya akan masuk dalam perubahan UU Migas yang dibahas di masa men-

datang. BUMN Khusus ini rencananya akan menggantikan posisi SKK Migas.

Tentang UU Minerba dan RUU Migas

Salah satu yang menjadi sorotan dalam

draf awal Omnibus Law Cipta Kerja adalah soal perpanjangan perjanjian karya

pengelolaan batu bara (PKP2B) menjadi izin usaha pertambangan khusus (IUPK)

tanpa melalui mekanisme lelang. Pasal ini kemudian masuk dalam UU Minerba yang

baru.

Pengesahan UU Minerba terbilang kilat.

Panitia kerjanya terbentuk pada 13 Februari lalu. Dalam waktu tiga bulan...

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Within three months the majority of the DPR factions agreed to make it a law. Only the Democratic Faction rejected it and asked for a re-discussion.

The government is currently drafting three derivative regulations from the law. The three government regulations or PPs respectively concern the implementation of mining business activities, mining areas, and supervision of reclamation and post-mining.

Protests also emerged because the judicial review process of the Minerba Law was also ongoing at the Constitutional Court. Publish What You Pay Indonesia researcher Aryanto Nugroho argues that the derivative RPP being discussed by the government is laden with polemics.

One of the problematic articles is related to permit applications and changes to contract extensions from PKP2B to IUPK. He suspects that the discussion of the RPP is being rushed to facilitate PKP2B, which contracts will expire in the near future.

The government should wait for the outcome of the Constitutional Court's decision on the Minerba Law before discussing and stipulating its derivative PP. "It would be wise for the government not to rush this PP," he said.

For the revision of the Oil and Gas Law, the government and the DPR have not yet discussed it. In fact, this law has entered the 2020 national legislation program (Prolegnas). At the end of last August, the Chairman of the DPR Energy Commission, Sugeng Suparwoto, said the government had not submitted an inventory of problems or DIM.

If the government does not compile and submit the Oil and Gas Bill DIM, the DPR will submit the academic manuscript to the government. This condition will make...

Dalam waktu tiga bulan mayoritas fraksi DPR lalu sepakat membuatnya menjadi undang-undang. Hanya Fraksi Demokrat yang menolaknya dan meminta pem-bahasan ulang.

Pemerintah saat ini sedang menyusun tiga aturan turunan dari undang-undang itu. Ketiga peraturan pemerintah atau PP ini masing-masing tentang pelaksanaan kegiatan usaha pertambangan, wilayah pertambangan, serta pengawasan reklamasi dan pascatambang.

Protes pun bermunculan karena proses uji materi UU Minerba sedang berlangsung pula di Mahkamah Konstitusi. Peneliti Publish What You Pay Indonesia Aryanto Nugroho berpendapat RPP turunan yang tengah dibahas oleh pemerintah sarat dengan polemik.

Salah satu pasal yang bermasalah adalah terkait permohonan izin dan perubahan perpanjangan kontrak dari PKP2B menjadi IUPK. Dia menduga pembahasan RPP tersebut dikebut guna memfasilitasi PKP2B yang akan habis kontraknya dalam waktu dekat.

Pemerintah sebaiknya menunggu hasil putusan MK atas UU Minerba sebelum membahas dan menetapkan PP turunannya. "Alangkah lebih bijak pemerintah tidak buru-buru mengeluarkan PP ini," kata dia.

Untuk revisi UU Migas, pemerintah dan DPR belum melakukan pembahasan. Padahal, undang-undang ini telah masuk program legislasi nasional (Prolegnas) 2020. Pada akhir Agustus lalu, Ketua Komisi Energi DPR Sugeng Suparwoto mengatakan pemerintah belum menyerahkan daftar inventarisasi masalah atau DIM.

Apabila pemerintah tak kunjung menyusun dan menyerahkan DIM RUU Migas, maka DPR akan menyerahkan naskah akademik-nya ke pemerintah. Kondisi ini akan membuat...

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This condition will make the revision of the Oil and Gas Law no longer an initiative of the DPR but a government initiative. Later, the DPR will prepare and compile DIM. Reporter: Verda Nano Setiawan, Editor: Sorta Tobing

Kondisi ini akan membuat revisi UU Migas tidak lagi menjadi insiatif DPR tapi menjadi inisiatif pemerintah. Nantinya, DPR yang akan menyiapkan dan menyusun DIM. Reporter: Verda Nano Setiawan, Editor: Sorta Tobing

October 2020 Mining HPE

Crawling Up

UNTIL the end of September 2020, the prices of several mining product commo-dities showed a positive trend amid the Covid-19 pandemic. This is because the prices of several mining product commo-dities have increased quite significantly due to increased world demand.

This condition affects the export benchmark price (HPE) for mining products subject to export duty (BK) for the October 2020 period.

This provision is stipulated in the Regulation of the Minister of Trade Number 76 of 2020 on September 30, 2020. "HPE of mining products for the period of October 2020 has fluctuated, including copper concentrate commodity, iron concentrate, laterite iron concentrate, lead concentrate, zinc concentrate, iron sand concentrate, and iron concentrate. ilmenite, and bauxite that have been washed have increased compared to the previous month period. The prices of several mining product commodities have begun to increase due to increased world demand,” explained the Director General of Foreign Trade, Didi Sumedi.

Didi added that the manganese concentrate commodity has decreased in price due to excess supply and decreased market demand in manganese refining plants in China. In addition,...

HPE Tambang Oktober 2020

Merangkak Naik

HINGGA menuju periode akhir September 2020, harga beberapa komoditas produk pertambangan menunjukkan tren positif di tengah pandemi Covid-19. Hal ini disebabkan harga beberapa komoditas produk pertam-bangan mengalami kenaikan yang cukup signifikan karena adanya permintaan dunia yang meningkat.

Kondisi ini memengaruhi harga penetapan Harga Patokan Ekspor (HPE) produk pertam-bangan yang dikenakan bea keluar (BK) untuk periode Oktober 2020.

Ketentuan ini ditetapkan dalam Peraturan Menteri Perdagangan Nomor 76 Tahun 2020 pada 30 September 2020. “HPE produk pertam-bangan periode Oktober 2020 mengalami fluktuasi, antara lain komoditas konsentrat tembaga, konsentrat besi, konsentrat besi laterit, konsentrat timbal, konsentrat seng, konsentrat pasir besi, konsentrat ilmenite, dan bauksit yang telah dilakukan pencucian meng-alami kenaikan dibandingkan periode bulan lalu. Harga beberapa komoditas produk pertam-bangan mulai mengalami kenaikan karena per-mintaan dunia yang meningkat,” jelas Direktur Jenderal Perdagangan Luar Negeri Didi Sumedi.

Didi menambahkan, komoditas konsentrat mangan mengalami penurunan harga karena kelebihan pasokan dan penurunan per-mintaan pasar di pabrik pemurnian mangan di China. Di samping itu,...

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In addition, rutile concentrate experienced a decline in price due to the decreasing demand for this commodity in the steel industry.

A number of mining products subject to BK are copper concentrate, iron concentrate, laterite iron concentrate, iron sand concentrate, iron sand concentrate pellet, manganese concentrate, lead concentrate, zinc concentrate, ilmenite concentrate, rutile concentrate, and washed bauxite.

HPE base price calculations for iron concentrate, laterite iron concentrate, iron sand concentrate, manganese concentrate, ilmenite concentrate and rutile concen-trate are sourced from Asian Metal and Iron Ore Fine Australian.

Meanwhile, copper concentrate, iron sand concentrate pellets, lead concentrate, zinc concentrate, and bauxite are sourced from the London Metal Exchange (LME). Compared to the previous period, mining products that experienced an average price increase in the October 2020 period were copper concentrate (Cu ≥ 15%) with an average price of USD 2,903.62/WE or an increase of 1.91% and iron concentrate (hematite, magnetite) (Fe ≥ 62% and ≤ 1% TiO2) with an average price of USD 110.14/WE or an increase of 10.48%.

There are also laterite iron concentrates (gutite, hematite, magnetite) with levels (Fe ≥ 50% and (Al2O3 + SiO2) ≥ 10%) with an average price of USD 56.28/WE or an increase of 10.48%; lead concentrate (Pb ≥ 56%) with an average price of USD 792.89/WE or an increase of 2.79%.

Then, zinc concentrate (Zn ≥ 51%) with an average price of USD 643.04/WE or an increase of 16.82%; iron sand concentrate (lamella magnetite-ilmenite) (Fe ≥ 56%) with an average price of USD 65.77/WE or an increase of 10.48%.

Di samping itu, konsentrat rutil mengalami penurunan harga karena permintaan komo-ditas tersebut pada industri baja yang mengalami penurunan.

Sejumlah produk pertambangan yang di-kenakan BK adalah konsentrat tembaga, konsentrat besi, konsentrat besi laterit, konsentrat pasir besi, pellet konsentrat pasir besi, konsentrat mangan, konsentrat timbal, konsentrat seng, konsentrat ilmenit, konsen-trat rutil, dan bauksit yang telah dilakukan pencucian.

Perhitungan harga dasar HPE untuk komo-ditas konsentrat besi, konsentrat besi laterit, konsentrat pasir besi, konsentrat mangan, konsentrat ilmenit, dan konsentrat rutil bersumber dari Asian Metal dan Iron Ore Fine Australian.

Sementara itu, konsentrat tembaga, pellet konsentrat pasir besi, konsentrat timbal, konsentrat seng, dan bauksit bersumber dari London Metal Exchange (LME). Dibanding-kan periode sebelumnya, produk pertam-bangan yang mengalami kenaikan harga rata-rata pada periode Oktober 2020 adalah konsentrat tembaga (Cu ≥ 15%) dengan harga rata-rata sebesar USD 2.903,62/WE atau naik sebesar 1,91% dan konsentrat besi (hematit, magnetit) (Fe ≥ 62% dan ≤ 1% TiO2) dengan harga rata-rata sebesar USD 110,14/WE atau naik sebesar 10,48%.

Ada pula konsentrat besi laterit (gutit, hematit, magnetit) dengan kadar (Fe ≥ 50% dan (Al2O3 + SiO2) ≥ 10%) dengan harga rata-rata sebesar USD 56,28/WE atau naik sebesar 10,48%; konsentrat timbal (Pb ≥ 56%) dengan harga rata-rata sebesar USD 792,89/WE atau naik sebesar 2,79%.

Lalu, konsentrat seng (Zn ≥ 51%) dengan harga rata-rata sebesar USD 643,04/WE atau naik sebesar 16,82%; konsentrat pasir besi (lamela magnetit- ilmenit) (Fe ≥ 56%) dengan harga rata-rata sebesar USD 65,77/ WE atau naik sebesar 10,48%.

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Then, ilmenite concentrate (TiO2 ≥ 45%) with an average price of USD 283.80/WE or an increase of 2.89%; and washed bauxite (Al2O3 ≥ 42%) with an average price of USD 23.62/WE or an increase of 2.97%.

Meanwhile, the products that experienced a decline compared to the previous HPE were manganese concentrate (Mn ≥ 49%) with an average price of USD 211.43/WE or a decrease of 0.70% and rutile concentrate (TiO2 ≥ 90%) at an average price an average of USD 856.09/WE or decreased by 0.03%.

"Concentrated iron sand pellets (lamella magnetite-ilmenite) (Fe ≥ 54) with an average price of USD 117.98/WE did not change," explained Didi.

According to Didi, "the determination of the HPE for the October 2020 period was determined after taking into account various written inputs and coordination from various related agencies such as Regulation of the Minister of Trade Number 76 of 2020 concerning Determination of Export Benchmark Prices for Mining Products Subject to Export Duty."

Previously, in the end of August 2020, the prices of several mining product commodities showed a positive trend amid the Covid-19 pandemic.

In fact, Deputy Minister of Trade, Jerry Sambuaga also acknowledged that his party would focus its attention on several Indonesian mineral and coal trade regulations, including the Minister of EMR Regulation number 11 of 2019 concerning the Second Amendment to the Regulation of the Minister of EMR Number 25 of 2018 concerning Mineral Mining Business Coal (Minerba).

Kemudian, konsentrat ilmenit (TiO2 ≥ 45%) dengan harga rata-rata sebesar USD 283,80/WE atau naik sebesar 2,89%; dan bauksit yang telah dilakukan pencucian (washed bauxite) (Al2O3 ≥ 42%) dengan harga rata-rata sebesar USD 23,62/WE atau naik sebesar 2,97%.

Sementara itu, produk yang mengalami penurunan dibandingkan HPE periode sebelumnya adalah konsentrat mangan (Mn ≥ 49%) dengan harga rata-rata sebesar USD 211,43/WE atau turun sebesar 0,70% dan konsentrat rutil (TiO2 ≥ 90%) dengan harga rata-rata sebesar USD 856,09/WE atau turun sebesar 0,03%.

“Adapun pellet konsentrat pasir besi (lamela magnetit-ilmenit) (Fe ≥ 54) dengan harga rata-rata USD 117,98/WE tidak mengalami perubahan,” jelas Didi.

Menurut Didi, “penetapan HPE periode Oktober 2020 ini ditetapkan setelah mem-perhatikan berbagai masukan tertulis dan koordinasi dari berbagai instansi terkait seperti Peraturan Menteri Perdagangan Nomor 76 Tahun 2020 tentang Penetapan Harga Patokan Ekspor Atas Produk Pertambangan Yang Dikenakan Bea Keluar.”

Sebelumnya, pada periode akhir Agustus 2020, harga beberapa komoditas produk pertambangan menunjukkan tren yang positif di tengah pandemi Covid-19.

Bahkan, Wakil Menteri Perdagangan, Jerry Sambuaga juga mengakui bahwa pihaknya akan menitik beratkan perhatiannya pada beberapa aturan perdagangan mineral dan batubara Indonesia, diantaranya adalah Peraturan Menteri ESDM nomor 11 tahun 2019 tentang Perubahan Kedua Atas Peraturan Menteri ESDM Nomor 25 tahun 2018 tentang Pengusahaan Pertambangan Mineral dan Batubara (Minerba).

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Developing the gold business, Bumi Resources Minerals

(BRMS) holds a rights issue Reporter: Akhmad Suryahadi | Editor:

Anna Suci Perwitasari

PT BUMI Resources Minerals (BRMS) Tbk

plans to increase its capital with pre-emptive rights (PMHMETD) aka rights issue. In a disclosure of information on the Indonesia Stock Exchange website, Monday (5/10), BRMS intends to issue a maximum of 24 billion series B new shares with a nominal value of Rp 50 and 24.5 billion series II warrants.

The implementation and settlement of this corporate action will be carried out within a timeframe deemed appropriate and reasonable by BRMS. However, it is not more than 12 months from the date of receipt of the approval of the extra-ordinary general meeting of shareholders (EGMS) and is subject to the PMHMETD Effective Statement by the Financial Services Authority (OJK). This subsidiary of PT Bumi Resources Tbk (BUMI) will hold an EGMS on Wednesday (11/11).

Quoting the prospectus given, the proceeds from the righs issue will be used for three main things. First, for business develop-ment which includes the construction of a factory with a production capacity of 4,000 tons per day, processing of gold and silver ore from the operation of the Hill Reef prospect in Palu.

The proceeds from the rights issue are also likely to be used for the construction of mining support facilities and the purchase of mining equipment.

Kembangkan bisnis emas, Bumi Resources Minerals (BRMS)

gelar rights issue Reporter: Akhmad Suryahadi | Editor:

Anna Suci Perwitasari

PT BUMI Resources Minerals (BRMS) Tbk

berencana melakukan penambahan modal dengan hak memesan efek terlebih dahulu

(PMHMETD) alias rights issue . Dalam keterbukaan informasi di laman Bursa Efek

Indonesia, Senin (5/10), BRMS berniat menerbitkan maksimal 24 miliar saham

baru seri B dengan nominal Rp 50 dan 24,5 miliar waran seri II.

Adapun pelaksanaan dan penyelesaian aksi

korporasi ini akan dilakukan dalam jangka waktu yang dianggap tepat dan wajar oleh

BRMS. Namun, tidak lebih dari 12 bulan sejak tanggal penerimaan persetujuan

rapat umum pemegang saham luar biasa (RUPSLB) dan tunduk pada Pernyataan

Efektif PMHMETD oleh Otoritas Jasa Keuangan (OJK). Anak usaha PT Bumi

Resources Tbk (BUMI) ini akan menggelar RUPSLB pada Rabu (11/11) mendatang.

Mengutip prospektus yang diberikan, dana

hasil righs issue ini akan digunakan untuk tiga hal utama. Pertama, untuk pengem-

bangan usaha yang meliputi pembangunan pabrik dengan kapasitas produksi 4.000

ton per hari, pengolahan bijih emas dan perak dari kegiatan operasi prospek Hill

Reef di Palu.

Dana hasil rights issue juga kemungkinan

akan digunakan untuk pembangunan fasilitas pendukung tambang dan pem-

belian peralatan penambangan.

IMA-Daily Update Page 9

In addition, business development is also being carried out for detailed drilling

related to additional gold and silver ore reserves from prospects in Palu as well as

additional reserves of copper, gold and silver ores from prospects in Gorontalo.

Second, the settlement of business invoices

related to the construction of a gold and silver ore processing plant with a

production capacity of 500 tons per day from the River Reef prospect operation in

Palu and the development of the gold and silver ore prospect in Motomboto,

Gorontalo which has been paid by BUMI.

Third, working capital financing for

operational activities related to the gold and silver mining project operated by PT

Citra Palu Minerals (CPM) and the copper, gold and silver mining project operated by

PT Gorontalo Minerals.

BRMS estimates that this Preemptive

Rights plan will have a positive impact on the company. This is because it can

increase gold and silver production from operations in Palu, and increase gold, silver

and copper ore reserves from BRMS operations in Gorontalo and Palu.

"This is expected to have a positive impact

on the company's financial performance and strengthen the company's operational

performance and capital structure. In the end, this plan is expected to increase the

return on investment value for all company shareholders," wrote the management of

BRMS.

However, this corporate action has an

influence on shareholders who do not exercise their rights, namely that there will

be a dilution, although it has not been explained how much effect the dilution will

have.

Selain itu, pengembangan usaha juga di-lakukan untuk pengeboran detail terkait penambahan cadangan bijih emas dan perak dari prospek di Palu serta penam-bahan cadangan bijih tembaga, emas dan perak dari prospek di Gorontalo.

Kedua, pelunasan tagihan usaha terkait pelaksanaan konstruksi pabrik pengolahan bijih emas dan perak dengan kapasitas produksi 500 ton per hari dari kegiatan operasi prospek River Reef di Palu dan pengembangan prospek bijih emas dan perak di Motomboto, Gorontalo yang telah dibayarkan oleh BUMI.

Ketiga, pembiayaan modal kerja untuk kegiatan operasional terkait dengan proyek tambang emas dan perak yang dioperasikan oleh PT Citra Palu Minerals (CPM) dan proyek tambang tembaga, emas dan perak yang dioperasikan oleh PT Gorontalo Minerals.

BRMS memperkirakan bahwa rencana HMETD ini akan berdampak positif bagi perusahaan. Sebab dapat meningkatkan produksi emas dan perak dari kegiatan operasi di Palu, dan menambah cadangan bijih emas, perak dan tembaga dari kegiatan operasi BRMS di Gorontalo dan Palu.

“Hal tersebut diharapkan dapat ber-dampak positif terhadap kinerja keuangan perusahaan serta memperkuat kinerja operasional dan struktur permodalan perusahaan. Pada akhirnya rencana ini diharapkan dapat meningkatkan imbal hasil nilai investasi bagi seluruh pemegang saham perusahaan,” tulis manajemen BRMS.

Hanya saja, aksi korporasi ini memberikan pengaruh kepada pemegang saham yang tidak mengeksekusi haknya, yakni akan terjadi dilusi, meski belum dijelaskan berapa besar efek dilusi yang terjadi.

IMA-Daily Update Page 10

Meanwhile, during the first six months of

this year, BRMS managed to book a net

profit of US$ 955,388. This number is up

2.4% year-on-year (YoY).

From the topline side, BRMS generated

revenues of US$ 2.55 million, down 13.9%

on an annual basis. A total of US$ 408,319

or around 16% of BRMS revenue comes

from the sale of gold products produced by

its subsidiary, namely PT Citra Hammer

Minerals (CPM) in Poboya, Palu, Central

Sulawesi.

As for the January-June 2020 period, the

production facility owned by BRMS in

Poboya has produced and delivered 25.25

kilograms (kg) of dore bullion to the

Logam Mulia refining facility (smelter)

operated by PT Aneka Tambang Tbk

(ANTM) in Jakarta. The production facility

in Poboya has the capacity to process up to

500 tons of gold ore per day.

At the close of trading Monday (5/10),

BRMS shares closed down 1.75% to the

level of Rp 56 per share.

Sementara itu, di sepanjang enam bulan pertama tahun ini, BRMS berhasil mem-bukukan laba bersih sebesar US$ 955.388. Jumlah tersebut naik 2,4% secara year-on-year (YoY).

Dari sisi topline, BRMS mencetak penda-patan senilai US$ 2,55 juta, turun 13,9% secara tahunan. Sebanyak US$ 408.319 atau sekitar 16% pendapatan BRMS berasal dari penjualan produk emas yang dihasilkan oleh anak perusahaan, yakni PT Citra palu Minerals (CPM) di Poboya, Palu, Sulawesi Tengah.

Adapun dari periode Januari-Juni 2020, fasilitas produksi milik BRMS di Poboya telah memproduksi dan mengirimkan 25,25 kilogram (kg) dore bullion ke fasilitas pemurnian (smelter) Logam Mulia yang dioperasikan oleh PT Aneka Tambang Tbk (ANTM) di Jakarta. Adapun Fasilitas produksi di Poboya tersebut memiliki kapasitas untuk mengolah sampai dengan 500 ton bijih emas per hari.

Pada penutupan perdagangan Senin (5/10), saham BRMS ditutup melemah 1,75% ke level Rp 56 per saham.

Antam Becomes Top Choice, Stock Price Target Revised Up

Parluhutan Situmorang

THE TREND of rising gold prices until the

end of this year in line with the slowdown in global economic recovery will have a positive impact on PT Aneka Tambang Tbk (ANTM) or Antam. Meanwhile, the increase in the number of smelters in the country will boost the sales volume of the company's nickel ore in the future.

Antam Jadi Pilihan Teratas, Target Harga Saham Direvisi Naik

Parluhutan Situmorang

TREN kenaikan harga emas hingga akhir

tahun ini seiring perlambatan pemulihan ekonomi global akan berdampak positif terhadap PT Aneka Tambang Tbk (ANTM) atau Antam. Sedangkan penambahan jumlah smelter di dalam negeri bakal mendorong peningkatan volume penjualan bijih nikel perseroan ke depan.

IMA-Daily Update Page 11

Meanwhile, the average gold price tends to stay at the level of US$ 1,850 per troy ounce. This has prompted Mirae Asset Sekuritas Indonesia to revise Antam's financial performance targets this year. The securities company also gave a positive outlook on Antam's nickel business.

Mirae Asset Sekuritas Indonesia analyst Andy Wibowo Gunawan revealed, although unemployment data in the United States (US) as of August 2020 fell, the Governor of the Fed Jerome Powell said that the US economic recovery due to the Covid-19 pandemic still needed a long way to go. This increases the likelihood that the Fed's benchmark interest rate will remain low for a long time.

This sentiment can benefit gold price movements. Because of this, the forecast for the slow and long-running recovery in the US economy has prompted Mirae Asset Sekuritas to revise up its gold price assumption this year to US$ 1,850 per troy ounce.

Meanwhile, next year it is revised to US$ 1,800 per troy ounce. The selling price of nickel, even though Indonesia's nickel pig iron (NPI) production tends to decline, ferronickel production is projected to grow. This increase is in line with the addition of eight new smelters last year.

"The addition will certainly support the strengthening of nickel ore demand, which will directly act as a positive catalyst for Antam as the largest nickel ore producer in Indonesia," Andy wrote in his latest research.

The increase in nickel ore demand is predicted to continue in line with the long-term target of the Government of Indonesia regarding the development of 52 smelters by 2024.

Adapun rata-rata harga emas cenderung bertahan pada level US$ 1.850 per troy ounce. Hal itu mendorong Mirae Asset Sekuritas Indonesia merevisi naik target kinerja keuangan Antam sepanjang tahun ini. Perusahaan efek tersebut juga mem-berikan pandangan positif terhadap bisnis nikel Antam.

Analis Mirae Asset Sekuritas Indonesia Andy Wibowo Gunawan mengungkapkan, meskipun data pengangguran di Amerika Serikat (AS) per Agustus 2020 turun, Gubernur The Fed Jerome Powell menye-butkan bahwa pemulihan ekonomi AS akibat pandemi Covid-19 masih mem-butuhkan jalan panjang. Hal itu mem-perbesar kemungkinan tetap rendahnya suku bunga acuan The Fed dalam waktu yang lama.

Sentimen tersebut bisa menguntungkan pergerakan harga emas. Sebab itu, per-kiraan pemulihan ekonomi AS yang berjalan lambat dan membutuhkan waktu lama mendorong Mirae Asset Sekuritas merevisi naik asumsi harga emas tahun ini menjadi US$ 1.850 per troy ounce.

Sedangkan tahun depan direvisi menjadi US$ 1.800 per troy ounce. harga jual nikel, meskipun produksi nickel pig iron (NPI) Indonesia cenderung turun, namun produksi feronikel diproyeksi bertumbuh. Pening-katan tersebut sejalan dengan penambahan delapan smelter baru tahun lalu.

“Penambahan itu tentu bisa menopang penguatan permintaan bijih nikel yang secara langsung menjadi katalis positif terhadap Antam sebagai produsen bijih nikel terbesar di Indonesia,” tulis Andy dalam riset terbaru.

Peningkatan permintaan bijih nikel di-prediksi berlanjut seiring dengan target Pemerintah Indonesia dalam jangka panjang terkait pengembangan sebanyak 52 smelter hingga 2024.

IMA-Daily Update Page 12

To achieve this target, it requires the addition of at least 29 smelters. Meanwhile, the upward trend in gold prices prompted Mirae to revise Antam's net profit target to Rp 249 billion this year compared to the previous estimate of Rp 208 billion.

The revenue target was also increased from Rp 25.35 trillion to Rp 28.57 trillion. Meanwhile, the projected global gold selling price this year has been revised from US$ 1,700 per troy ounce to US$ 1,850 per troy ounce.

Likewise, Antam's revenue target in 2021 has been revised upward from Rp 28.73 trillion to Rp 32.22 trillion. The estimated net profit was also increased from Rp 310 billion to Rp 386 billion. Meanwhile, the prediction of global gold price will be increased from US$ 1,750 per troy ounce to US$ 1,800 per troy ounce.

With these various factors, Mirae Asset Sekuritas raised its target price for ANTM's share from Rp 655 to Rp 960. ANTM is the top choice for this sector, as it is supported by diversification and the size of the company's nickel reserves.

Meanwhile, NH Korindo Sekuritas Indonesia analyst Meilki Darmawan in his research revealed a different analysis. According to him, Antam will face tough challenges this year, even though the price of gold has tended to increase in recent months.

The impact of the Covid-19 pandemic is still a major obstacle to the company's financial performance this year. The increase in financial burden also allegedly made it difficult for Antam to increase its profits this year. However, sales of gold are expected to support financial performance, in line with the increase in selling prices and lower exploration costs.

Untuk mencapai target tersebut, dibutuh-kan penambahan setidaknya 29 smelter. Sementara itu, tren kenaikan harga emas mendorong Mirae merevisi naik target laba bersih Antam menjadi Rp 249 miliar tahun ini dibandingkan perkiraan sebelumnya Rp 208 miliar.

Target pendapatan juga dinaikkan dari Rp 25,35 triliun menjadi Rp 28,57 triliun. Sedangkan proyeksi harga jual emas global tahun ini direvisi dari US$ 1.700 per troy ounce menjadi US$ 1.850 per troy ounce.

Begitu juga dengan target pendapatan Antam tahun 2021 direvisi naik dari Rp 28,73 triliun menjadi Rp 32,22 triliun. Perkiraan laba bersih juga dinaikkan dari Rp 310 miliar menjadi Rp 386 miliar. Sedangkan prediksi harga emas globa dinaikkan dari US$ 1.750 per troy ounce menjadi US$ 1.800 per troy ounce.

Dengan berbagai faktor tersebut, Mirae Asset Sekuritas menaikkan target harga saham ANTM dari Rp 655 menjadi Rp 960. ANTM menjadi pilihan teratas untuk sektor ini, karena didukung oleh diversifikasi dan besarnya cadangan nikel perseroan.

Sementara itu, analis NH Korindo Sekuritas Indonesia Meilki Darmawan dalam riset-nya mengungkapkan analisis berbeda. Menurut dia, Antam akan menghadapi tantangan berat tahun ini, meskipun harga emas cenderung meningkat dalam bebe-rapa bulan terakhir.

Dampak pandemic Covid-19 masih men-jadi hambatan besar bagi kinerja keuangan perseroan tahun ini. Peningkatan beban keuangan juga disinyalir mempersulit Antam untuk menaikkan keuntungan sepanjang tahun ini. Meski demikian, penjualan komoditas emas diharapkan menjadi penopang kinerja keuangan, seiring dengan kenaikan harga jual dan penurunan biaya eksplorasi.

IMA-Daily Update Page 13

NH Korindo Sekuritas has revised down Antam's financial performance target this year. The revision is in line with the cut in production and sales targets for Antam's mining commodities this year. The company's gold sales have been cut from 20,874 kilograms (kg) to 19,888 kg. Likewise, ferronickel sales have been cut from 27,917 tonnes to 26,588 tonnes.

Meanwhile, the projected average selling price of gold this year is expected to increase to Rp 991 million per kg and ferronickel to reach Rp 165 million per ton.

Antam's net profit target for this year has been revised down from Rp 889 billion to Rp 16 billion compared to last year's realization of Rp 194 billion.

Meanwhile, the revenue estimate was revised down from Rp 36.45 trillion to Rp 25.03 trillion compared to the 2019 achievement of Rp 32.71 trillion.

However, NH Korindo Sekuritas maintains its recommendation to buy ANTM shares with a target price of Rp 850. The target price reflects the increasing trend of gold prices, the company's market expansion to Europe, and the development of the downstream industry which is expected to increase the value of the company's products.

The target price also reflects Antam's EV/

EBITDA estimate of 17.8 times the current price, which reflects an EV/EBITDA of

around 15.7 times.

Previously, Director of Mining Industry

Indonesia (MIND ID) Orias Petrus Moedak said, MIND ID was prepared to delegate the

management of the Wabu Block gold mine in Papua to Antam. The initial stage of

cooperation with the local government will be executed in the near future.

NH Korindo Sekuritas merevisi turun target kinerja keuangan Antam tahun ini. Revisi itu sejalan dengan pemangkasan target produksi dan penjualan komoditas tambang Antam tahun ini. Penjualan emas perseroan dipangkas dari semula 20.874 kilogram (kg) menjadi 19.888 kg. Begitu juga dengan penjualan feronikel dipangkas dari 27.917 Tni menjadi 26.588 Tni.

Sedangkan proyeksi rata-rata harga jual emas tahun ini diharapkan meningkat menjadi Rp 991 juta per kg dan feronikel mencapai Rp 165 juta per Tni.

Adapun target laba bersih Antam tahun ini direvisi turun dari Rp 889 miliar menjadi Rp 16 miliar dibandingkan realisasi tahun lalu senilai Rp 194 miliar.

Sedangkan perkiraan pendapatan direvisi turun dari Rp 36,45 triliun menjadi Rp 25,03 triliun dibandingkan pencapaian tahun 2019 senilai Rp 32,71 triliun.

Namun, NH Korindo Sekuritas tetap mempertahankan rekomendasi beli saham ANTM dengan target harga Rp 850. Target harga tersebut merefleksikan tren peningkatan harga emas, ekspansi pasar perseroan ke Eropa, dan pembangunan industri hilir yang diharapkan mening-katkan nilai produk perseroan.

Target harga tersebut juga mencerminkan perkiraan EV/EBITDA Antam sebesar 17,8 kali dibandingkan harga sekarang yang baru mencerminkan EV/EBITDA sekitar 15,7 kali.

Sebelumnya, Direktur Utama Mining Industry Indonesia (MIND ID) Orias Petrus Moedak mengatakan, MIND ID bersiap mendelegasikan pengelolaan tambang emas Blok Wabu di Papua kepada Antam. Kerja sama tahap awal dengan pemerintah setempat akan dieksekusi dalam waktu dekat.

IMA-Daily Update Page 14

According to him, the local government has handed over the management of the Wabu Block to MIND ID. As a follow-up, his party handed over this task to Antam, a subsidiary of MIND ID. Then, MIND ID together with the local government will inaugurate the initial phase of cooperation.

"There is a letter from the governor to hand over the gold mine to MIND ID. Because the expert in the gold sector is Antam, we will submit it to Antam to be followed up,” he explained.

The Wabu block was the result of PT Freeport Indonesia's return to the government in 2015. At that time, Freeport agreed to reduce its working area to 90,360 hectares (ha) from the original 212,950 ha. The reduction of the working area aims to reach an agreement for Freeport to continue operations in the form of a special mining business permit (IUPK).

During the repayment process, Freeport once stated that the Wabu Block had the potential of up to around 4.3 million ores with quite good gold quality, namely 2.47 grams per tonne. Editor: Gora Kunjana

([email protected])

Menurut dia, pemerintah daerah setempat telah menyerahkan pengelolaan Blok Wabu kepada MIND ID. Sebagai bentuk tindak lanjut, pihaknya menyerahkan tugas ini ke Antam, anak usaha MIND ID. Kemudian, MIND ID bersama pemerintah daerah akan meresmikan kerja sama tahap awal.

“Ada surat dari gubernur untuk menyerah-kan tambang emas kepada MIND ID. Karena yang ahli di bidang emas itu adalah Antam, maka kami serahkan ke Antam untuk ditindaklanjuti,” jelas dia.

Blok Wabu merupakan hasil pengembalian PT Freeport Indonesia kepada pemerintah yang dilakukan pada 2015. Ketika itu, Freeport sepakat mengurangi wilayah kerjanya menjadi 90.360 hektare (ha) dari semula 212.950 ha. Pengecilan wilayah kerja bertujuan untuk mencapai kesepakatan bagi Freeport untuk meraih kelanjutan operasi berupa izin usaha pertambangan khusus (IUPK).

Saat proses pengembalian, Freeport pernah menyatakan, Blok Wabu memiliki potensi hingga sekitar 4,3 juta ore dengan kualitas emas yang cukup bagus yakni 2,47 gram per ton. Editor : Gora Kunjana (gora_kunjana@

investor.co.id)

Very Top! Coal Still Unwilling to Drop from US$ 60/ton Tirta Citradi, CNBC Indonesia

THE PRICE of Newcastle thermal coal still

does not want to drop. On Monday's trading session (5/10), the price of the jet rock for the actively traded contract closed higher.

Top Banget! Batu Bara Masih Ogah Melorot dari US$ 60/ton

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal Newcastle masih

belum mau melorot ternyata. Pada perda-gangan Senin kemarin (5/10), harga batu legam untuk kontrak yang aktif ditran-saksikan itu kembali ditutup menguat.

IMA-Daily Update Page 15

Coal prices rose 1.56% to US$ 61.8/ton. Whereas previously the coal price had dropped to US$ 60.85/ton. The coal price rally started from the second week of September after touching its lowest level at US$ 49.9/ton on 7 September 2020.

There are various triggers why the price of coal has started to creep up. First and foremost is China's tight domestic coal supply.

This has resulted in the country's bench-mark coal price strengthening significantly, even higher than the target price range that has been set.

At the end of last week, Qinhuangdao thermal coal prices for 5,500 Kcal/Kg rose 2.9% to RMB 612/ton or the equivalent of US$ 90.13/ton. This price is considered expensive because it is above the 'green zone' in the range of RMB 500 - RMB 570 per ton.

The green zone is an informal target for the Chinese authorities to maintain the business sustainability of its coal miners and the margins of utility companies. With domestic coal prices already high, many are interested in buying imported coal because the price is cheaper.

This increase in interest also boosted the price of seaborne coal. Although China began to strictly impose import quotas in the second and third quarters, with tight supplies there is a possibility that some regions will begin to loosen them. Moreover, entering the year-end period, the import quota policy will be renewed.

At the same time, ahead of the Christmas holidays and the year-end new year Australian miners decided to stop their operations. However, exports continue to run by utilizing the available stock, so that even though production decreases, supply is still maintained.

Harga batu bara naik 1,56% ke US$ 61,8/ton. Padahal sebelumnya harga batu bara sempat ambles ke US$ 60,85/ton. Reli harga batu bara mulai berawal dari minggu kedua bulan September lalu pasca menyentuh level terendahnya di US$ 49,9/ton di 7 September 2020.

Ada berbagai faktor pemicu mengapa harga batu bara mulai merangkak naik. Pertama dan yang paling utama adalah ketatnya pasokan batu bara domestik China.

Hal ini membuat harga batu bara patokan negara tersebut menguat signifikan bahkan lebih tinggi dari rentang harga target yang sudah dipatok.

Harga batu bara termal Qinhuangdao untuk kalori 5.500 Kcal/Kg pada akhir pekan lalu menguat 2,9% ke RMB 612/ton atau setara dengan US$ 90,13/ton. Harga tersebut ter-golong kemahalan karena sudah berada di atas 'green zone' di rentang RMB 500-RMB 570 per ton.

Green zone merupakan target informal otoritas China untuk tetap menjaga keberlanjutan bisnis para penambang batu baranya serta margin perusahaan utilitas. Dengan harga batu bara domestik yang sudah mahal, maka banyak yang tertarik untuk membeli batu bara impor karena harganya lebih murah.

Kenaikan minat ini juga turut mendongkrak harga batu bara lintas laut (seaborne). Meski China mulai ketat menerapkan kuota impor pada kuartal kedua dan ketiga, tetapi dengan ketatnya pasokan ada kemungkinan beberapa wilayah mulai melonggarkannya. Apalagi memasuki periode akhir tahun kebijakan kuota impor akan diperbarui.

Pada saat yang sama, menjelang libur natal dan tahun baru akhir tahun para penambang Australia memutuskan untuk menghentikan aktivitas operasinya. Namun eskpor tetap berjalan dengan memanfaatkan stok yang tersedia, sehingga meski produksinya turun pasokan masih tetap terjaga.

IMA-Daily Update Page 16

Another factor that has the potential to boost coal prices in the future is the La Nina phenomenon, which causes wet weather and can disrupt the supply chain for metallurgical coal (coke), which is widely used for steel production. La Nina is also expected to have an impact on the supply of thermal coal.

The threat of supply disruption accompanied by improving demand, especially from China, has the potential to cause coal prices to strengthen, especially at the end of this year and early next year. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Faktor lain yang berpotensi mendongkrak harga batu bara ke depan adalah fenomena La Nina yang menyebabkan cuaca yang basah dan bisa mendisrupsi rantai pasok batu bara metalurgi (kokas) yang banyak dimanfaatkan untuk produksi baja. La Nina juga diperkirakan bakal berdampak pada pasokan batu bara termal.

Adanya ancaman disrupsi pasokan disertai dengan membaiknya permintaan terutama dari China berpotensi menyebabkan harga batu bara mengalami penguatan terutama di akhir tahun ini dan awal tahun depan. TIM RISET CNBC INDONESIA (twg/twg)

Nickel-producing Indonesia in early talks with Tesla on investment By: Reuters

INDONESIA's government is in early discussions with electric vehicles (EV) maker Tesla Inc

about a potential investment in the Southeast Asia country, a major producer of nickel, an official said.

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

It has stopped exports of unprocessed nickel ore to support investment in its domestic industries.

Ayodhia Kalake, a senior official at the Coordinating Ministry for Maritime and Investment, said Tesla had reached out to the government informally about a possible venture, but he did not specify what it had in mind.

"It was still an early discussion and was not detailed yet," Ayodhia said in a statement on Monday.

"We need further discussion with Tesla," he said, adding that Indonesia has a number of incentives for investment in EVs.

Tesla did not immediately respond to a Reuters email seeking confirmation.

Indonesia last month said it had secured a deal to build a lithium battery plant in the country with South Korean LG Chem Ltd and China's Contemporary Amperex Technology Ltd (CATL).

Tesla is looking to ramp up production of trucks and solar projects and its boss Elon Musk earlier this year urged miners to produce more nickel and offered "giant", long-term contracts if mined "efficiently and in an environmentally sensitive way".

IMA-Daily Update Page 17

While EVs are expected to help reduce global carbon emission, activists are concerned that production of EV parts and increased mining may damage the environment.

An Indonesian nickel smelting project being built by China's Tsingshan Group and partners to

produce battery-grade chemicals withdrew a request to dispose of waste in the ocean, a government official said on Friday.

MICROMINE to reveal mining software latest at Diggers & Dealers Posted by Daniel Gleeson

MICROMINE is set to reveal a host of new features to its flagship products at this year’s

Diggers & Dealers Mining Forum, in Kalgoorlie, Western Australia, as the mining software leader lifts the lid on its latest software innovations.

“This year, we are excited to be providing on-site demonstrations of our upcoming release of

Micromine 2021,” Adam Brew, MICROMINE Australia Manager, said. “Our principal Micromine consultant will provide an early pre-release insight to the new features which

have been added to our core product, as well as a new user interface, designed to enrich the daily experience for users and improve how they drive outcomes from the software.”

MICROMINE will also be showcasing the updates made to its flagship mine production and fleet tracking solution, Pitram, with an interactive presentation on its booth, it said. Pitram 5,

the latest release coming at the end of this year, positions itself at the “core of your mine’s ecosystem”, delivering more value from its machine-learning capabilities, materials

management, shift planning and data validation, the company said.

A technical team will be demonstrating the company’s software solutions, which also includes Geobank, and answering questions at the event, taking place on October 12-14.

“As a WA-founded company, it is great to unveil our latest achievements on home turf,” David

Bartlett, Principal Micromine Consultant, said. “Visitors won’t be disappointed as we’ll be showcasing our latest releases. We’ve got a surprise up our sleeves too – with a sneak peek of

something new coming later this year but you have to visit the stand for an invitation to find out more.

“We’ve been exhibiting at Diggers & Dealers for over a decade and it’s a great opportunity for the industry to see first-hand the next generation tools being developed using advanced

technology to optimise their operations and profitability.”

MICROMINE now has offices in 18 of the world’s mining capitals, and its software is being used by miners and explorers on 2,000 sites in 90 countries around the world, according to

the company.

IMA-Daily Update Page 18

“While COVID-19 has meant a lot of changes to the global mining and exploration industry, the industry is steaming ahead in Western Australia and we are excited to be part of this showcase for Australian innovation and achievement,” Chris Higgins, Pitram Strategy Manager, said. “It’s a great opportunity for all the key players in the industry to come together to network, share their news and insights and experience the latest products and innovations, including the latest technologies coming from MICROMINE.”

MICROMINE will be demonstrating the latest version of its 3D modelling and mine design solution – Micromine 2021 – with new and improved tools for modelling, estimation, design, optimisation and scheduling, it said.

Also being showcased is Geobank 2020 – revealing how enhancements to the popular geological data management software are adding value to geologists and mining engineers by making data management simpler and more efficient.

US grabs stake in battery metals miner to fight Chinese control Cecilia Jamasmie

THE US government is taking a $25 million equity stake in Dublin-based battery metals miner TechMet, as part of a push by President Donald Trump to reduce the country’s reliance on supply chains dominated by China.

The backing from the $60 billion US International Development Finance Corporation (DFC) will help TechMet develop a nickel and cobalt mine in Brazil. Both metals are key in the production of the batteries that power electric cars and cell phones.

TechMet’s Brazilian Nickel project, in the north-eastern state of Piauí, is estimated to hold as much as 72 million tonnes of nickel and cobalt.

“Investments in critical materials for advanced technology support development and advance US foreign policy,” Adam Boehler, chief executive officer of the government agency, said in a statement.

The move follows last week’s executive order declaring a “state of emergency” in the US mining industry. The directive, which seeks pushing a local battery metals industry forward, also called for a report evaluating possible measures such as tariffs, quotas, or other trade restrictions targeting China and “other non-market foreign adversaries.”

Washington has expressed concern that China’s control of rare earths supply could be used as a tactic against US companies that depend on those elements.

Breaking China’s hold

China produces roughly two thirds of the world’s lithium-ion batteries and has taken steps to secure critical metals for them, particularly in Africa and Latin America.

The US is trying to fight back, with the Pentagon promising to fund domestic mining of the essential materials, while also investing in projects abroad.

IMA-Daily Update Page 19

Washington has also created the DFC to provide an alternative to Chinese overseas finance in Asia, Africa and Latin America.

The backing to TechMet marks the first time the US government has invested directly in a metals and mining company, the company’s chief executive, Brian Menell, said.

TechMet was founded in 2017 by South African mining veteran Brian Menell, a former executive at Anglovaal and De Beers.

The company has a tin and tungsten mine in Rwanda, a rare earths mine in Burundi, and a lithium-ion battery project in Canada. It also produces vanadium, a crucial metal for manufacturing nuclear reactors and military aircraft.

The US is not alone in its quest to reduce reliance on foreign producers. In September, the European Union stepped up its efforts to become less dependent on imported raw materials, including rare earths and, for the first time, lithium.

Copper output from world’s top ten producers declined by 3.7% in Q2 Published by Simon Matthis

LOCKDOWNS across Chile, Peru and Mexico, including the closure of some of the world’s

largest copper mines, were a key factor behind a 3.7% collective decline in copper output from the world’s top ten producers in Q2 2020, from 2.7 million tonnes (Mt) to 2.6Mt. Overall production of copper is forecast to drop by 1.5% in 2020, falling to 20.3Mt, according to GlobalData, a leading data and analytics company.

The largest decline in Q2 was observed from Glencore, where production fell by 13.9% year-on-year (YOY) due to lower ore grades and disruptions caused by the COVID-19 outbreak - particularly at the Antamina mine, which also reduced BHP’s output.

IMA-Daily Update Page 20

Vinneth Bajaj, Senior Mining Analyst at GlobalData, comments: “Lower ore grades at BHP’s Pampa Norte (Spence and Cerro Colorado mines), Antofagasta‘s Centinela Concentrates and lower rates at KGHM’s Robinson and Franke mines were key factors behind the declines in the other major producers output during the second quarter.”

Major operating mines that were closed as a result of the COVID-19 pandemic for significant periods in Q2 were Chuquicamata, Cobre Panama, Antamina, Las Bambas and Cerro Verde. Development work was also halted at the Los Pelambres and El Teniente mines.

Overall global copper production is expected to fall by 1.5% in 2020, with steeper declines in Chile and Peru. While Chile was initially relatively unaffected at the start of the quarter, with Codelco having just to halt on-site construction activities at Chuquicamata and El Teniente, rising cases led to mounting pressure from workers and the temporary shutdown of Chuquicamata at the end of June. Overall, production in Chile is expected to decline by 2.3% in 2020.

Bajaj adds: “Although operating activities in Peru resumed at the end of May, COVID-19 restrictions have disrupted the momentum of several copper mines, including the Las Bambas, Constancia, Toromocho and Cerro Verde, with production in Peru set to decline by 7.2% in 2020.”

Super merger: Northern Star and Saracen to join forces Salomae Haselgrove

SUPER Pit joint owners Northern Star and Saracen Mineral Holdings are set to combine,

having agreed to a merger-of-equals worth $16 billion.

The proposed merger will create a new top 10 global gold major with a world-class portfolio and three large-scale production centres in Kalgoorlie and Yandal in Western Australia, as

well as in North America.

For the first time in its 125-year history, Kalgoorlie’s famous Golden Mile will be consolidated

under one owner as a result of the Northern Star and Saracen merger.

Northern Star executive chair Bill Beament will chair the merged company, while Saracen

managing director Raleigh Finlayson will be managing director. Northern Star chief executive officer Stuart Tonkin will continue his role in the merged company, as will Saracen chief

financial officer Morgan Ball.

The merged board will comprise five Northern Star directors, including Beament, and four

Saracen directors, including Finlayson.

Saracen’s board of directors has unanimously recommended that its shareholders vote in

favour of the merger-of-equals.

IMA-Daily Update Page 21

“The benefits which will flow to Saracen shareholders from this merger are significant,” Finlayson said. “This is one of the most logical and strategic merger and acquisition (M&A) transactions the mining industry has seen.

“The savings, synergies and growth opportunities it will generate make the transaction extremely compelling. In short, it is a unique opportunity for Saracen shareholders unlikely to be replicated via any other avenue.”

Beament also commented on the value of the merger, stating that it would “create an abundance of value for both Northern Star and Saracen shareholders”.

“Northern Star has only ever pursued growth when it will create value for shareholders,” he said. “This is significant value-creating M&A.”

“Our position as joint venture partners at Kalgoorlie Consolidated Gold Mines (KCGM), the close proximity of the majority of the combined company’s assets and a host of other synergies makes this a unique opportunity exclusive to Saracen and Northern Star shareholders.”

Northern Star operates two concentrated centres in Western Australia, including the Super Pit and the East Kundana joint venture. It also holds the Pogo mine in the Tintina gold province in Alaska, where it produced 159,344 ounces in 2019.

Saracen owns three operations within 300 kilometres of Kalgoorlie: Carouse Dam, Thunderbox and its 50 per cent stake in the Super Pit.

The two gold miners first joined forces at the Super Pit late last year when they purchased Newmont and Barrick Gold’s stakes in KCGM.

Since the acquisition, the Super Pit guided Saracen to record production seven months later, with the company producing 520,414 ounces across its operations in the 2020 financial year.

Northern Star has also reaped the rewards of the acquisition, selling 115,825 ounces of gold from the Super Pit during the 2020 financial year, contributing to its record 900,388 ounces of gold sold.

Under the proposed deal, Northern Star will acquire 100 per cent of the shares in Saracen, with Saracen shareholders to receive 0.37 Northern Star shares for each share they hold.

If approved, Northern Star shareholders would own 64 per cent of the combined entity and Saracen shareholders the remaining 36 per cent.

The first court hearing for the merger will take place in December with the implementation date scheduled for February 2021.