TABLE OF CONTENTS...mengevaluasi rencana investasi tahun ini dengan menurunkan panduan belanja modal menjadi US$ 200 juta-US$ 250 juta dan menentukan skala prioritas. ADRO akan berhati-hari

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TABLE OF CONTENTS

No. Title Media Source Page

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Government is helpless, nickel prices still do not comply with regulations Pemerintah Tak Berdaya, Harga Nikel Masih Tidak Sesuai Aturan Adaro Energy (ADRO) Predicts Coal Market is Still Challenging Adaro Energy (ADRO) memprediksi pasar batubara masih menantang Antam will work on the ex-Freeport Grasberg Gold Mine Antam akan Garap Tambang Emas Grasberg Eks Freeport Smelter owners are called still violating nickel HPM regulations Pemilik Smelter Disebut Masih Langgar Aturan HPM Nikel Gold Prices Are Still High, Prospects for Merdeka Copper (MDKA) Remain Shining Harga emas masih tinggi, prospek Merdeka Copper (MDKA) tetap bersinar Antam Is Called Losing, Erick Thohir's Defense Antam Disebut Merugi, Begini Pembelaan Erick Thohir GE plans to stop making coal-fired power plants With no electricity supply, Erick Thohir opens a tender for Antam's smelters Pasokan Listrik Kosong, Erick Thohir Buka Tender Bagi Smelter Milik Antam Hooray! A little more coal prices could touch US$ 60/ton Asik! Dikit Lagi Harga Batu Bara Bisa Sentuh US$ 60/ton Lho Freeport aims for Copper Mark at six sites World copper mine production declined by 1% in the first half of 2020 - International Copper Study Group Less than half the gold sent to big refiners comes from mines

Dunia Energi Kontan Investor Daily CNBC Indonesia Kontan Okezone The Jakarta Post Sindonews CNBC Indonesia Mining Weekly Kitco News Mining.com

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Newmont agrees to sell 11 royalties to Maverix for $90m US gas-to-coal switching to boost coal consumption, help trim stocks Texas Minerals consortium to produce rare earths from coal waste

Mining Technology S&P Global Platts Mining.com

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Government is helpless, nickel prices still do not comply with

regulations Rio Indrawan

THE GOVERNMENT is still powerless in

fixing the mineral trade governance, particularly nickel. This can be seen from the ineffectiveness of the government's decree on the domestic nickel price which has not yet been implemented.

Sugeng Suparwoto, Chairperson of Commission VII DPR, said that the Minerals Reference Price (HPM) mechanism for nickel minerals is not working so nickel producers are often forced to sell nickel below the formula price.

"We ask, urge the government that all parties comply with HPM. So far, according to the records of various parties, including the Indonesian Nickel Producers Association (APNI), it is not working,” said Sugeng when met at the DPR Building, Tuesday (22/9).

The Minister of EMR has issued Regulation of the Minister of EMR Number 11 of 2020 concerning the Third Amendment to the Regulation of the Minister of EMR Number 07 of 2017 concerning Procedures for Setting Benchmark Prices for Metal Mineral and Coal Sales which was promulgated on April 14, 2020.

The regulation states that HPM for metal is the lower limit price in calculating the obligation to pay production fees by the holders of Production Operation IUP and Production Operation IUPK.

This metal HPM is also a reference for selling prices for IUP and IUPK holders for the sale of nickel ore.

Pemerintah Tak Berdaya, Harga Nikel Masih Tidak Sesuai

Aturan Rio Indrawan

PEMERINTAH masih tidak berdaya dalam

membenahi tata kelola niaga mineral, khususnya nikel. Ini bisa dilihat dari tidak berjalannya ketetapan pemerintah tentang harga nikel dalam negeri yang masih belum berjalan.

Sugeng Suparwoto, Ketua Komisi VII DPR, mengatakan mekanisme penetapan Harga Patokan Mineral (HPM) untuk mineral nikel tidak berjalan sehingga para produsen nikel kerap kali dengan terpaksa harus menjual nikel dibawah harga sesuai formula.

“Kami meminta, mendesak pemerintah agar semua pihak mematuhi HPM. Selama ini menurut catatan berbagai pihak, termasuk Asosiasi Produsen Nikel Indonesia (APNI) enggak jalan,” kata Sugeng ditemui di Gedung DPR, Selasa (22/9).

Menteri ESDM telah menerbitkan Peraturan Menteri ESDM Nomor 11 tahun 2020 tentang Perubahan Ketiga atas Peraturan Menteri ESDM Nomor 07 tahun 2017 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batubara yang diundangkan pada 14 April 2020.

Regulasi tersebut menyebutkan, HPM logam merupakan harga batas bawah dalam penghitungan kewajiban pem-bayaran iuran produksi oleh pemegang IUP Operasi Produksi dan IUPK Operasi Produksi.

HPM logam ini juga menjadi acuan harga penjualan bagi pemegang IUP dan IUPK untuk penjualan bijih nikel.

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If the transaction price is lower than the

HPM for the metal, then the sale can be

made under the HPM with a maximum

difference of 3% from the HPM.

However, if the transaction price is higher

than the HPM, then the sales must follow

the transaction price above the HPM for

the metal.

The government has actually also formed a

supervisory team for the domestic nickel

trade system through the Decree of the

Coordinating Minister for Maritime Affairs

and Investment Number 108 of 2020

concerning a team to supervise the imple-

mentation of nickel HPM.

The supervision carried out by the

supervisory team, among others, was to

ensure that the price used in buying and

selling nickel ore was in accordance with

the HPM.

According to Sugeng, Commission VII will

explore this protracted issue. He admitted

that he was surprised by the government's

attitude that had not yet found a solution.

When met with nickel producers, the

government only gave a normative answer.

Even though the rules are made by the

government itself, when the implemen-

tation is not optimal, the government

cannot do much.

"We will follow up in the form of

surveillance. Later there will be an

agreement to form a special committee,

why not,” said Sugeng. (RI)

Apabila harga transaksi lebih rendah dari

HPM logam tersebut, maka penjualan

dapat dilakukan di bawah HPM dengan

selisih paling tinggi 3% dari HPM tersebut.

Namun jika harga transaksi lebih tinggi

dari HPM, maka penjualan wajib megikuti

harga transaksi di atas HPM logam

tersebut.

Pemerintah sebenarnya juga sudah mem-

bentuk tim pengawas tata niaga nikel

domestik melalui Keputusan Menteri

Koordinator Bidang Kemaritiman dan

Investasi Nomor 108 Tahun 2020 tentang

tim kerja pengawasan pelaksanaan HPM

nikel.

Pengawasan yang dilakukan tim pengawas

ini antara lain memastikan harga yang

digunakan dalam transaksi jual beli bijih

nikel sesuai HPM.

Menurut Sugeng, Komisi VII akan men-

dalami persoalan berlarut ini. Ia mengaku

heran dengan sikap pemerintah yang

belum juga menemukan jalan keluar.

Ketika dipertemukan dengan para

produsen nikel saja pemerintah hanya

memberikan jawaban normatif. Padahal

aturannya dibuat oleh pemerintah sendiri

tapi ketika implementasi tidak optimal

pemerintah justru tidak dapat berbuat

banyak.

“Kami akan tindaklanjuti dalam bentuk

pengawasan-pengawasan. Nanti ada

kesepakatan membentuk pansus kenapa

tidak,” kata Sugeng. (RI)

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Adaro Energy (ADRO) Predicts Coal Market is Still Challenging

Reporter: Benedicta Prima | Editor: Wahyu T. Rahmawati

IN THE last three days, the price of coal continued to strengthen until it almost reached the level of US$ 60 per ton. In the midst of this price increase, PT Adaro Energy Tbk (ADRO) continues to target coal production this year at 52 million to 54 million tons. Given that Adaro still sees coal price movements are still quite volatile.

"Although we stil l have to face this challenge for the next few moments, we still believe that the fundamentals of the coal and energy sector will remain solid in the long term, especially due to the support of development activities in Asian countries," said Head of Corporate Communication Febriati Nadira to Kontan. co.id, Tuesday (22/9).

In determining the selling price, Febriati said Adaro followed several indices, one of which was the reference coal price (HBA). Adaro also has volume contracts with customers who are predominantly power plants.

By the end of 2020, Adaro has also evaluated this year's investment plan by lowering the capital expenditure guide to US$ 200 million-US$ 250 million and determining the priority scale. ADRO will be careful and disciplined in issuing capital expenditures.

"Even if the capital expenditure is reduced, the company will continue the investment needed to support long-term growth and maintain operational excellence," she added.

Adaro Energy (ADRO) memprediksi pasar batubara masih menantang Reporter: Benedicta Prima | Editor: Wahyu

T. Rahmawati

DALAM tiga hari terakhir harga batubara terus mengalami penguatan hingga hampir menuju level US$ 60 per ton. Di tengah penguatan harga tersebut, PT Adaro Energy Tbk (ADRO) tetap menargetkan produksi batubara tahun ini 52 juta ton-54 juta ton. Mengingat Adaro masih melihat pergerakan harga batubara masih cukup fluktuatif.

"Walaupun masih harus menghadapi tantangan ini untuk beberapa saat ke depan, kami tetap yakin bahwa funda-mental sektor batubara dan energi di jangka panjang tetap kokoh, terutama karena dukungan aktivitas pembangunan di negara-negara Asia," kata Head of Corporate Communication Febriati Nadira kepada Kontan.co.id, Selasa (22/9).

Dalam menentukan harga jual, Febriati mengatakan Adaro mengikuti beberapa indeks salah satunya harga batubara acuan (HBA). Adaro juga telah memiliki kontrak volume dengan pelanggan yang mayoritas adalah pembangkit listrik.

Hingga akhir 2020, Adaro juga telah mengevaluasi rencana investasi tahun ini dengan menurunkan panduan belanja modal menjadi US$ 200 juta-US$ 250 juta dan menentukan skala prioritas. ADRO akan berhati-hari dan disiplin dalam mengeluarkan belanja modal.

"Walaupun belanja modal dikurangi, per-usahaan akan melanjutkan investasi yang dibutuhkan untuk mendukung pertum-buhan jangka panjang dan mempertahan-kan keunggulan operasional," imbuh dia.

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Antam will work on the ex-Freeport Grasberg Gold Mine

Thereis Kalla ([email protected])

PT ANEKA Tambang Tbk (ANTM) or

Antam has the potential to manage the former PT Freeport Indonesia gold mine in Grasberg Papua. This is in accordance with the order of the Minister of State-Owned Enterprises (SOEs) Erick Thohir, who has written to the Minister of EMR to give priority to managing the mine.

Erick said that his party is also coordinating with the Investment Coordinating Board (BKPM) so that the Ministry of EMR can prioritize SOEs companies to enter the management of the Grasberg mine.

"We sent a letter to MEMR, as a state-owned company, we hope that the allocations that have been given by freeport to the state prioritize SOEs to enter into management, so that we are not a trading company, but a gold mining company," said Erick in Commission VI Meeting DPR RI, Tuesday (22/9).

Erick added that the current condition of Antam has many employees, but does not have a gold mine. Moreover, the supply of gold in Indonesia is still quite large, and during this pandemic, the price of gold is very high.

These factors made Erick dare to order Antam to enter to manage the Grasberg gold mine.

In addition, to maximize Antam's performance, Erick has also made changes to the Board of Directors in order to meet the key performance indicators (KPI) that have been set. According to Erick,...

Antam akan Garap Tambang Emas Grasberg Eks Freeport

Thereis Kalla ([email protected])

PT ANEKA Tambang Tbk (ANTM) atau

Antam berpotensi mengelola tambang emas bekas PT Freeport Indonesia di Grasberg Papua. Hal tersebut sesuai dengan perintah Menteri Badan Usaha Milik Negara (BUMN) Erick Thohir, yang telah bersurat ke Menteri ESDM agar diberikan prioritas untuk menge-lola tambang tersebut.

Erick mengatakan, pihaknya juga berkoor-dinasi dengan Badan Koordinasi Penanaman Modal (BKPM) agar Kementerian ESDM dapat memprioritaskan perusahaan BUMN untuk masuk dalam pengelolaan tambang Grasberg.

“Kami kirim surat ke ESDM, sebagai perusaha-

an BUMN mengharapkan agar alokasi yang

sudah diberikan freeport ke negara, prioritas-

kan untuk diberikan BUMN untuk masuk dalam

pengelolaan, sehingga kita secara konkret Antam ini bukan trading company tapi per-

usahaan tambang emas,” jelas Erick dalam

Rapat Komisi VI DPR RI, Selasa (22/9).

Erick menambahkan, kondisi Antam saat ini memiliki pegawai yang banyak, tapi tidak memiliki tambang emas. Terlebih pasokan emas di Indonesia masih cukup besar, dan pada masa pandemi ini, harga emas menjadi sangat tinggi.

Adapun faktor-faktor tersebut yang membuat Erick berani untuk memerintahkan Antam agar masuk untuk mengelola tambang emas Grasberg.

Selain itu, untuk memaksimalkan kinerja Antam, perubahan jajaran Direksi juga telah dilakukan Erick, agar dapat memenuhi key performance indicator (KPI) yang telah di-tetapkan. Menurut Erick,...

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According to Erick, there are many things that can be improved in Antam's performance.

"Lastly, the human resources. Since the beginning, especially with the trend of KPI being added with dividends, from the start we assessed that the composition of the board of directors never thought like it or not," he said.

Previously, PT Pemeringkat Efek Indonesia (Pefindo) assigned an A rating with the prospect of being raised from negative to stable against PT Aneka Tambang Tbk (ANTM). Antam's gold sales focus on the domestic retail market is expected to result in a larger increase in profits for the company, following the increase in gold prices. This is also accompanied by the company's steps to reduce gold exports and focus on the domestic retail market that generates higher margins.

Pefindo explained, the rating reflects Antam's sizeable resources and reserves, and a strong position in the industry supported by diversified mining products and vertically integrated operational activities. However, the ratings are constrained by its high financial leverage and exposure to fluctuations in commodity prices.

On the other hand, Pefindo could raise Antam's rating, if its revenue and EBITDA were higher than projected and its financial leverage was at a conservative level.

The potential for a rating upgrade is also boosted if the company receives strong support from Inalum in the form of capital injection, shareholder loan or business synergy which substantially increases Antam's operating performance. Editor: Gora Kunjana ([email protected])

Menurut Erick, banyak hal yang dapat ditingkatkan dalam kinerja Antam.

“Terakhir, sumber daya manusianya. Sejak awal, apalagi dengan tren KPI ditambahkan dengan dividen maka sejak awal menilai komposisi direksi tidak pernah berpikir suka tidak suka,” ujarnya.

Adapun sebelumnya, PT Pemeringkat Efek Indonesia (Pefindo) menyematkan peringkat A dengan prospek dinaikkan dari negataif menjadi stabil terhadap PT Aneka Tambang Tbk (ANTM). Fokus penjualan emas Antam pada pasar retail domestik diharapkan berimbas pada peningkatan keuntungan yang lebih besar bagi perseroan, menyusul kenaikan harga emas. Hal tersebut juga diiringi langkah per-seroan untuk mengurangi ekspor emas dan fokus pada pasar ritel domestik yang menghasilkan margin lebih tinggi.

Pefindo menjelaskan, peringkat tersebut mencerminkan sumber daya dan cadangan Antam yang cukup besar, dan posisi yang kuat di industri yang didukung oleh produk pertambangan yang terdiver-sifikasi, dan kegiatan operasional yang terintegrasi secara vertikal. Namun, peringkat dibatasi oleh leverage keuangan yang tinggi dan paparan terhadap fluktuasi atas harga komoditas.

Di sisi lain, Pefindo dapat menaikkan peringkat Antam, apabila capaian penda-patan dan EBITDA lebih tinggi dari proyeksi, dan leverage keuangannya berada pada level yang konservatif.

Potensi kenaikan peringkat juga didorong jika perusahaan menerima dukungan yang kuat dari Inalum dalam bentuk injeksi modal, pinjaman shareholder loan atau sinergi bisnis yang secara substansial menaikkan kinerja operasi Antam. Editor : Gora Kunjana ([email protected])

IMA-Daily Update Page 8

Smelter owners are called still violating nickel HPM regulations

Anisatul Umah, CNBC Indonesia

THE GOVERNMENT has issued a

regulation regarding the Mineral Reference Price (HPM) which must be used as the benchmark for the buying and selling price of domestic nickel. This regulation is contained in the Minister of EMR Regulation No.11 of 2020 concerning Procedures for Setting Benchmark Prices for Metal Mineral and Coal Sales. But unfortunately this rule has not been enforced.

This was conveyed by the Chairman of Commission VII DPR RI Sugeng Suparwoto to reporters on Tuesday (22/09/2020).

Therefore, Sugeng said Commission VII urged all parties to comply with the stipulated regulations.

"We ask all parties to urge the government to comply with the HPM. So far, according to the records of various parties, including the Indonesian Nickel Miners Association (APNI) again, this regulation has not worked," he told reporters at the Indonesian Parliament Building, Tuesday, 22/09/2020).

Sugeng said that his party would follow up on this in the form of surveillance measures. If needed, he added, a cross-commission meeting would be held, involving Commission VII, Commission III relating to the law, and Commission XI relating to state revenues.

In fact, Sugeng said it was possible to form a special committee (Pansus).

Pemilik Smelter Disebut Masih Langgar Aturan HPM Nikel

Anisatul Umah, CNBC Indonesia

PEMERINTAH telah menerbitkan aturan

mengenai Harga Patokan Mineral (HPM) yang harus dijadikan patokan harga jual beli nikel domestik. Aturan tersebut ter-tuang di dalam Peraturan Menteri ESDM No.11 tahun 2020 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batu bara. Namun sayangnya aturan ini belum ditegakkan.

Hal itu disampaikan Ketua Komisi VII DPR RI Sugeng Suparwoto kepada wartawan pada Selasa (22/09/2020).

Oleh karena itu, Sugeng mengatakan Komisi VII mendesak kepada seluruh pihak agar bisa mematuhi paraturan yang sudah ditetapkan.

"Kita meminta kepada semua pihak, men-desak pemerintah agar semua pihak mematuhi HPM. Selama ini menurut catatan berbagai pihak, termasuk lagi-lagi Asosiasi Penambang Nikel Indonesia (APNI) peraturan ini tidak jalan," paparnya kepada wartawan di Gedung Parlemen RI, Selasa, (22/09/2020).

Sugeng mengatakan pihaknya akan menindaklanjuti hal ini dalam bentuk tindakan pengawasan. Jika dibutuhkan, imbuhnya, maka akan dilakukan rapat lintas komisi, yakni melibatkan Komisi VII, Komisi III berkaitan dengan hukum, dan Komisi XI berkaitan dengan pendapatan negara.

Bahkan, Sugeng mengatakan tidak me-nutup kemungkinan untuk pembentukan panitia khusus (Pansus).

IMA-Daily Update Page 9

"That is precisely what (the Ministerial Regulation already exists). So we agreed to follow up in the form of surveillance. If there is an agreement, forming a Special Committee, why not," he said.

Apart from the HPM issue, Commission VII also highlighted the obligation of smelters to absorb nickel with low nickel ore content.

"The point is that the Minerba Panja asks or urges the government to comply with the regulations that have been outlined, for example there is a regulation that smelters are obliged to absorb nickel ore below 1.7%," he explained.

Sugeng said that APNI said that if the smelter only absorbs nickel ore with a grade of over 1.8%, even recently someone asked for a grade of 2%. Then regarding the surveyors used by the smelters, according to him, they should come from the government. However, in practice, he added, many still use surveyors other than those provided by the government.

"We urge the government to comply with or carry out the function of law enforce-ment against the existing regulations," he said.

As is known, the Minister of EMR has issued Regulation of the Minister of EMR No.11 of 2020 concerning the Third Amendment to the Minister of EMR Regulation No. 07 of 2017 concerning Procedures for Setting Benchmark Prices for Metal Mineral and Coal Sales which was promulgated on April 14, 2020.

This regulation states that HPM for metal is the lower limit price in calculating the obligation to pay production fees by the holders of Production Operation IUP and Production Operation IUPK. This metal HPM is also a reference for selling prices for IUP and IUPK holders for the sale of nickel ore.

"Justru itulah (Permen sudah ada). Maka kami sepakat akan tindaklanjuti dalam bentuk pengawasan-pengawasan. Kalau nanti ada kesepakatan, membentuk Pansus, kenapa tidak," tuturnya.

Selain masalah HPM, Komisi VII juga menyoroti kewajiban smelter untuk menyerap nikel dengan kadar bijih nikel rendah.

"Intinya adalah Panja Minerba meminta atau mendesak pemerintah agar seluruh pihak mematuhi peraturan-peraturan yang sudah digariskan, misalnya ada sebuah peraturan bahwa smelter berkewajiban menyerap bijih nikel di bawah 1,7%," jelasnya.

Sugeng mengatakan pihak APNI menyam-paikan jika pihak smelter hanya menyerap bijih nikel dengan kadar di atas 1,8%, bahkan terakhir ada yang meminta dengan kadar 2%. Lalu terkait surveyor yang dipakai oleh smelter, menurutnya semestinya berasal dari pemerintah. Akan tetapi dalam praktiknya, imbuhnya, masih banyak yang menggunakan surveyor di luar dari yang disediakan pemerintah.

"Kami mendesak pemerintah agar mematuhi atau menjalankan fungsi law enforcement (penegakan hukum) terhadap peraturan yang ada," ujarnya.

Seperti diketahui, Menteri ESDM telah menerbitkan Peraturan Menteri ESDM No.11 tahun 2020 tentang Perubahan Ketiga atas Peraturan Menteri ESDM No.07 tahun 2017 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batu bara yang diundangkan pada 14 April 2020.

Regulasi ini menyebutkan bahwa HPM logam merupakan harga batas bawah dalam penghitungan kewajiban pembayaran iuran produksi oleh pemegang IUP Operasi Produksi dan IUPK Operasi Produksi. HPM logam ini juga menjadi acuan harga penjualan bagi pemegang IUP dan IUPK untuk penjualan bijih nikel.

IMA-Daily Update Page 10

However, if the transaction price is lower than the HPM for the metal, then the sale can be made under the HPM with a maximum difference of 3% from the HPM. However, if the transaction price is higher than the HPM, then the sales must follow the transaction price above the HPM for the metal.

This regulation is valid for 30 days after its enactment. This means that it will be effective since May 14, 2020.

Previously, the Director of Mineral Development and Business of the Ministry of EMR Yunus Saefulhak said the HPM set by the government was below the international market price. The aim is to develop investment in the domestic smelter sector. However, it does not mean that the price is too low because this is to protect the sustainability of the miners' business and profitability.

"Yes, US$ 30-32 per tonne is fair enough because it has paid attention to the management of good mining practice," he said at the EMR Ministry Office, Friday (07/08/2020). (wia)

Namun apabila harga transaksi lebih rendah dari HPM logam tersebut, maka penjualan dapat dilakukan di bawah HPM dengan selisih paling tinggi 3% dari HPM tersebut. Namun apabila harga transaksi lebih tinggi dari HPM, maka penjualan wajib mengikuti harga transaksi di atas HPM logam tersebut.

Peraturan ini berlaku 30 hari sejak di-undangkannya. Artinya, mulai berlaku efektif sejak 14 Mei 2020.

Sebelumnya, Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengatakan HPM yang ditetapkan pemerintah berada di bawah harga pasar internasional. Tujuannya yaitu untuk mengembangkan investasi di bidang smelter di dalam negeri. Namun tidak juga berarti harga terlalu rendah karena ini untuk melindungi keberlanjutan usaha dan profitabilitas penambang.

"Ya US$ 30-32 per ton itu sudah cukup adil karena sudah memperhatikan yang nama-nya pengelolaan good mining practice," tuturnya di Kantor Kementerian ESDM, Jumat, (07/08/2020). (wia)

Gold Prices Are Still High, Prospects for Merdeka Copper

(MDKA) Remain Shining Reporter: Hikma Dirgantara | Editor:

Wahyu T. Rahmawati

SAFE haven assets such as gold have benefited from the corona virus pandemic and the global economic slowdown. Since the Covid-19 case broke out, the golden sheen has never dimmed, it even recorded a record high last August. Inevitably,...

Harga emas masih tinggi, prospek Merdeka Copper

(MDKA) tetap bersinar Reporter: Hikma Dirgantara | Editor:

Wahyu T. Rahmawati

ASET safe haven seperti emas justru di-untungkan dengan adanya pandemi virus corona dan perlambatan ekonomi dunia. Semenjak kasus covid -19 merebak, kemilau emas tak pernah redup, bahkan sempat mencatatkan rekor tertingginya pada Agustus silam. Tak pelak,...

IMA-Daily Update Page 11

Inevitably, gold producers such as PT Merdeka Copper Gold Tbk (MDKA) benefit from this situation.

Panin Sekuritas analyst Juan Oktavianus assessed that the prospect of gold prices in the future will still be high. This will then become a positive catalyst that can boost MDKA's performance in the second half of this year. What's more, the contribution of gold is still the main contributor to the sales of MDKA.

"Gold is still the main contributor for MDKA, around 70% of the total. Therefore, we see that the gold price is still at a high enough level, of course it will have a positive impact on MDKA's performance through MDKA gold average selling prices (ASP),"said Juan to Kontan.co.id, Tuesday (22/9).

Referring to MDKA's financial report, in the first semester of 2020 this issuer posted total revenue of US$ 198.8 million or an increase of 3.7% year on year (yoy). MDKA's net profit reached US$ 38.3 million or decreased 9.4% yoy.

Ciptadana Sekuritas analyst Thomas Radityo in his research on August 24, 2020 wrote, MDKA's revenue increase was supported by gold sales performance, which in terms of ASP, aka the average selling price, increased by 24.8% yoy. However, the increase in selling costs by 16.4% and operational expenditures (opex) of 48.1% exceeded revenue growth.

"In terms of net profit, MDKA has only met 36.5% of our projection. However, these gains are stil l in -line as MDKA's performance will improve in the second half of this year. This is in line with the forecast for higher gold ASP and improving copper prices in the upcoming fourth quarter of 2020,” wrote Radityo.

Tak pelak, produsen emas seperti PT Merdeka Copper Gold Tbk (MDKA) di-untungkan dengan situasi ini.

Analis Panin Sekuritas Juan Oktavianus menilai prospek harga emas ke depan masih akan tetap tinggi. Hal ini lantas akan menjadi katalis positif yang bisa men-dongkrak kinerja MDKA pada separuh kedua tahun ini. Terlebih lagi, kontribusi emas masih jadi penyumbang utama dalam penjualan MDKA.

“Emas masih menjadi kontributor utama MDKA sekitar 70% dari keseluruhan. Oleh karena itu, kami melihat dengan harga emas yang masih di level cukup tinggi, tentu akan berdampak positif terhadap kinerja MDKA melalui average selling prices (ASP) emas MDKA,” kata Juan kepada Kontan.co.id, Selasa (22/9).

Merujuk laporan keuangan MDKA, pada semester I-2020 emiten ini membukukan total pendapatan sebesar US$ 198,8 juta atau naik 3,7% secara year on year (yoy). Laba bersih MDKA mencapai US$ 38,3 juta atau turun 9,4% yoy.

Analis Ciptadana Sekuritas Thomas Radityo dalam risetnya pada 24 Agustus 2020 menuliskan, kenaikan pendapatan MDKA ditopang oleh performa penjualan emas yang dari segi ASP alias harga jual rata-rata naik sebesar 24,8% yoy. Kendati demikian, kenaikan biaya penjualan sebesar 16,4% dan operational expenditures (opex) sebesar 48,1% telah melampaui pertumbuhan pendapatan.

“Dari segi perolehan laba bersih, MDKA baru memenuhi 36,5% dari proyeksi kami. Kendati demikian, perolehan tersebut masih in-line seiring kinerja MDKA yang akan membaik pada paruh kedua tahun ini. Hal tersebut seiring dengan perkiraan ASP emas yang lebih tinggi dan harga tembaga yang membaik pada kuartal IV-2020 mendatang,” tulis Radityo.

IMA-Daily Update Page 12

Meanwhile, Sucor Sekuritas analyst Hasan Barakwan said MDKA had succeeded in producing 108,823 ounces of gold in the first half of this year. MDKA set a target of gold production of 165,000 ounces-185,000 ounces this year. Thus, MDKA is said to be able to show opti mal performance amid the current situation after successfully meeting 60.4% of their maximum target.

"MDKA has also benefited from the increase in gold prices this year. Although MDKA has hedged 84,506 ounces of gold at a price of US$ 1,425, they managed to record a higher realization price in the first half of 2020, namely US$ 1,642 per troi ounce or up 24.9% yoy," Hasan said in his research, 3 September.

Furthermore, Hasan said, with the threat of inflation that haunts the shiny prestige of gold as a safe haven asset will still be pursued. In addition, the corona virus pandemic has resulted in significant disruption of the gold supply, which fell 15.2% yoy to 1,034 tonnes in the second quarter of 2020. Hasan said this level was the lowest quarterly since the first quarter of 2010.

"With falling gold production in mines and recycled gold, while demand remains high has made gold prices rise. We are sure that in the future the outlook for the yellow one will still be strong so that it will be a positive catalyst for MDKA," Hasan continued.

One of the other positive catalysts mentioned by Thomas comes from the projection of the success of the third stage feasibility research process of the Morowali Acid Iron Metal (AIM) project. Even though it was delayed due to the pandemic, by the fourth quarter of 2020 the process could be completed. Thus, the project will be able to start early next year.

Sementara itu, analis Sucor Sekuritas Hasan Barakwan menyebut MDKA sudah berhasil memproduksi emas sebanyak 108.823 ons pada paruh pertama tahun ini. MDKA mematok target produksi emas sebanyak 165.000 ons–185.000 ons pada tahun ini. Dengan demikian, MDKA disebut mampu menunjukkan kinerja optimal di tengah situasi saat ini setelah berhasil memenuhi 60,4% dari target maksimal mereka.

“MDKA juga diuntungkan dengan kenaikan harga emas sepanjang tahun ini. Meski MDKA telah melakukan lindung nilai ter-hadap 84.506 ons emasnya dengan harga US$ 1.425, mereka berhasil membukukan realisasi harga yang lebih tinggi pada semester I-2020 yakni US$ 1.642 per ons troi atau naik 24,9% yoy,” ujar Hasan dalam risetnya 3 September lalu.

Lebih lanjut, Hasan mengatakan, dengan ancaman inflasi yang menghantui, pamor mengkilap emas sebagai aset safe haven masih akan tetap diburu. Selain itu, pandemi virus corona telah mengakibatkan disrupsi yang signifikan terhadap pasokan emas yang turun 15,2% secara yoy menjadi 1.034 ton pada kuartal II-2020. Hasan menyebut level ini merupakan yang terendah secara kuartalan sejak kuartal I-2010 silam.

“Dengan jatuhnya produksi emas di tambang dan emas recycled, sementara per-mintaan tetap tinggi telah membuat harga emas meningkat. Kami yakin ke depan outlook untuk si kuning ini masih akan tetap kuat sehingga jadi katalis positif untuk MDKA,” sambung Hasan.

Salah satu katalis positif lain disebut Thomas datang dari proyeksi keberhasilan proses penelitian feasibility tahap tiga ter-hadap proyek Morowali Acid Iron Metal (AIM). Meski sempat tertunda akibat pandemi, pada kuartal IV-2020 proses ter-sebut sudah dapat dirampungkan. Dengan demikian, proyek tersebut akan dapat dapat segera dimulai pada awal tahun depan.

IMA-Daily Update Page 13

Thomas also estimates MDKA's revenue this year will reach US$ 435 million. Meanwhile, the net profit will pocket US$ 105 million.

Meanwhile, Juan assessed that the latest news regarding a natural accident in the form of a landslide at the location of the Tujuh Bukit gold mine, Banyuwangi, owned by MDKA, which caused operations to stop, needed further attention. He also cannot comment further because he needs to see and get the latest updates on the impact of the accident. "So for the performance projections and recommen-dations for MDKA shares, we will make adjustments when we receive an update on the decline in production after yesterday's accident," added Juan.

Prior to the landslide inci dent, Juan recommended buying MDKA shares with a target price of Rp 1,660 per share. Meanwhile, Thomas and Hasan both recommended buying MDKA shares at a price of Rp 2,800 and Rp 2,240 per share. On Tuesday (22/9), MDKA's share price was stagnant at Rp 1,570 per share.

Thomas pun memperkirakan pendapatan MDKA pada tahun ini akan mencapai US$ 435 juta. Sementara untuk laba bersihnya akan mengantongi US$ 105 juta.

Sementara Juan menilai kabar terbaru mengenai adanya kecelakaan alam berupa tanah longsor di lokasi tambang emas Tujuh Bukit, Banyuwangi milik MDKA yang menyebabkan operasional terhenti perlu diperhatikan lebih jauh. Ia pun belum bisa memberi komentar lebih jauh karena perlu melihat dan mendapatkan update terbaru dari dampak kecelakaan tersebut. “Jadi untuk proyeksi kinerja dan rekomendasi saham MDKA, kami akan sesuaikan ketika kami telah mendapat update tentang penurunan produksi pasca kecelakaan kemarin,” tambah Juan.

Sebelum adanya kejadian longsor tersebut, Juan merekomendasikan untuk beli saham MDKA dengan target harga Rp 1.660 per saham. Sementara Thomas dan Hasan sama-sama merekomendasikan untuk beli saham MDKA dengan harga Rp 2.800 dan Rp 2.240 per saham. Selasa (22/9), harga saham MDKA stagnan di Rp 1.570 per saham.

Antam Is Called Losing, Erick Thohir's Defense

Suparjo Ramalan, Journalist

MINISTER of State-Owned Enterprises (SOEs) Erick Thohir noted that the State Capital Participation (PMN) received by PT Aneka Tambang (Persero) Tbk or Antam in 2016 had not been fully utilized. Although the funds are allocated for a number of National Strategy Projects (PSN), particularly the construction of a ferro-nickel plant.

Antam Disebut Merugi, Begini Pembelaan Erick Thohir

Suparjo Ramalan, Jurnalis

MENTERI Badan Usaha Milik Negara (BUMN) Erick Thohir mencatat, Penyertaan Modal Negara (PMN) yang diterima PT Aneka Tambang (Persero) Tbk atau Antam pada 2016 silam belum di-manfaatkan secara maksimal. Meski dana itu dialokasikan bagi sejumlah Proyek Strategi Nasional (PSN), khususnya pem-bangunan pabrik feronikel.

IMA-Daily Update Page 14

Erick's statement is a rebuttal or response to a question raised by a member of the DPR Commission, Anton Sukartono Suratto. In his question, Anton commented on the construction of Antam's ferronickel plant in East Halmahera, North Maluku.

Where, in the construction of a factory that was included as a National Strategic Project (PSN) with a budget of Rp. 5.3 trillion through State Capital Participation (PMN) financing in 2016. Anton assessed that the project did not provide benefits for Antam, and even tended to lose money.

"The project has not yielded any profit for Antam, even Antam tends to lose. PMN for Antam in 2016, Antam loses how does Mr. Erik? What can SOEs do so that risk management can be carried out properly," said Anto in a joint working meeting with the Minister of BUMN virtual, Jakarta, Tuesday (22/9/2020).

In addition to responding to the question by arguing that PMN is not being used properly, Erick Thohir also explained that the Key Performance Indicators (KPI) of state-owned companies tend to decline or are not maximally implemented. Even so, from the real data obtained, Erick assessed that KPI Anta has the potential to be improved at this time.

The issue of the power plan or the power

to move the company's business wheels is another problem. This means that when the KPI is already in trouble, it will actually affect the company's power plan readiness.

"If we look at the KPIs that were delivered,

from the start we saw that there were many things that could be improved in the process that occurred at Antam. Therefore, from the start with real data, how could the PMN given not run optimally because of its

power plan. not ready yet," said Erick.

Pernyataan Erick tersebut merupakan sanggahan atau respon terhadap pertanyaan yang diutarakan anggota Komisi DPR, Anton Sukartono Suratto. Dalam pertanyaannya, Anton menyentil perihal pembangunan pabrik feronikel di Halmahera Timur, Maluku Utara milik Antam.

Di mana, dalam pembangunan pabrik yang masuk sebagai Proyek Strategi Nasional (PSN) dengan anggaran mencapai Rp5,3 triliun melalui pembiayaan Penyertaan Modal Negara (PMN) pada tahun 2016. Anton menilai, proyek itu tidak memberikan keuntungan bagi Antam, bahkan cenderung merugi.

"Proyek itu belum menghasilkan keuntungan bagi Antam, bahkan Antam cenderung rugi. PMN untuk Antam tahun 2016, Antam rugi bagaimana Pak Erik? Apa yang bisa dilakukan oleh BUMN agar manajemen risiko bisa dilakukan dengan baik," ujar Anto dalam rapat kerja bersama Menteri BUMN secara virtual, Jakarta, Selasa (22/9/2020).

Selain menanggapi pertanyaan itu dengan argumentasi bahwa PMN tidak dimanfaatkan secara baik, Erick Thohir juga menjelaskan bahwa, Key Performance Indicators (KPI) perseroan plat merah pun cenderun g menurun atau tidak maksimal dijalankan. Meski begitu, dari data riil yang diperoleh, Erick menilai KPI Anta berpotensi untuk bisa diperbaiki saat ini.

Persoalan power plan atau kekuatan untuk menggerakkan roda bisnis perusahaan pun menjadi masalah lain. Artinya, ketika KPI sudah bermasalah maka hal itu justru ber-pengaruh pada kesiapan power plan perseroan.

"Kalau kita lihat KPI yang disampaikan, sejak awal kita melihat bahwa proses yang terjadi di Antam ini banyak hal-hal yang bisa di-tingkatkan. Karena itu sejak awal dengan data data yang riil, bagaimana PMN yang diberikan ternyata tidak bisa berjalan maksimal karena power plan nya belum siap," kata Erick.

IMA-Daily Update Page 15

Because of that, Erick included Antam as part of the transformation map that was carried out by his party for a number of SOEs. "That is why it is included in our map number 4 how the process of investment cannot be a bass project, but a business process that must be carried out together so that what is called SOEs synergy can run," he said.

As a step towards reforming Antam, Erick has also done overhaul of its board of directors. In fact, he is currently proposing that the funds allocated from PT Freeport Indonesia to the state be managed by the Ministry of SOE. The management of these funds is to boost the company's performance in the mining and quarrying sector.

From the records compiled, Antam's biggest contribution to 2015's revenue was sales of gold and ferronickel. Gold contributed Rp7.31 trillion or 70% of total sales, while ferronickel was Rp 2.72 trillion or 26%.

Meanwhile in 2016, Antam allocated a capital expenditure (Capex) of around Rp 2 trillion. The funds will be used for factory expansion. The capex funds will be used for the construction of three main ANTM projects, namely the Anode Slime project, the Mempawah Smelter Grade Alumina (SGA) project, and the East Halmahera Ferronickel Plant Construction Project (P3FH).

He explained that slime anode is a by-product of copper processing. Antam will process the slime anode, which has been exported abroad, into gold domestically. The investment value for the factory in Gresik, East Java is around USD40 million.

The total funds that ANTM managed to obtain from this corporate action reached Rp 5.37 trillion. Later,...

Karena itu, Erick memasukan Antam sebagai bagian dari peta transformasi yang dilakukan pihaknya terhadap sejumlah BUMN. "Itulah kenapa masuk dalam peta nomor 4 kita bagaimana proses daripada investasi itu tidak bisa projek bass, tetapi proses bisnis yang harus dijalankan secara bersama sehingga yang dinamakan sinergi-nya BUMN bisa berjalan," katanya.

Sebagai langkah pembaharuan Antam, Erick juga sudah melakukan perombakan struktur direksinya. Bahkan, saat ini dia mengajukan agar dana dialokasikan dari PT Freeport Indonesia kepada negara akan kelola oleh Kementerian BUMN. Penge-lolaan dana tersebut guna mendorong kinerja perseroan di sektor pertambangan dan penggalian.

Dari catatan yang dihimpun, Kontributor terbesar pendapatan Antam sepanjang 2015 adalah penjualan emas dan feronikel. Emas menyumbang Rp7,31 triliun atau 70% dari total penjualan, sedangkan feronikel sebanyak Rp2,72 triliun atau 26%.

Sementara pada 2016, Antam mengalokasi-kan dana belanja modal atau capital expenditure (Capex) sekitar Rp2 triliun. Dana tersebut akan digunakan untuk ekspansi pabrik. Dana capex akan diguna-kan untuk pembangunan tiga proyek utama ANTM, yakni proyek Anode Slime, Smelter Grade Alumina (SGA) Mempawah, dan Proyek Pembangunan Pabrik Feronikel Halmahera Timur (P3FH).

Dijelaskan, anode slime adalah produk sampingan pengolahan tembaga. Anode slime yang selama ini diekspor ke luar negeri, bakal diolah menjadi emas di dalam negeri oleh Antam. Nilai investasi pabrik di Gresik, Jawa Timur itu berkisar USD40 juta.

Total dana yang berhasil diperoleh ANTM dari aksi korporasi itu mencapai Rp5,37 triliun. Nantinya,...

IMA-Daily Update Page 16

Later, the ferronickel production capacity

of the East Halmahera factory will be

13,500-15,000 tons of nickel in ferronickel

(TNi) per year. All PMN funds are used for

the construction of the factory. (kmj)

Nantinya, kapasitas produksi feronikel

pabrik Halmahera Timur sebesar 13.500-

15.000 ton nikel dalam feronikel (TNi) per

tahun. Seluruh dana PMN digunakan untuk

pembangunan pabrik tersebut. (kmj)

GE plans to stop making coal-fired power plants Reuters

GENERAL Electric Co said on Monday it plans to stop making coal-fired power plants, as the

United States industrial conglomerate focuses more on renewable sources of power

generation.

The company said the exit from the business could include divestitures, site closings and job

cuts, while it works with its customers to complete existing obligations.

GE has said in the past it would focus less on fossil fuels and more on renewable energy,

reflecting a growing acceptance of clean power sources by utilities.

“GE’s exit from building new coal-fired power — after decades as a leader in this space — is

an acknowledgement that growth in the energy sector will no longer be in coal,” said Kathy

Hipple, a financial analyst at Institute for Energy Economics and Financial Analysis. “The

market will ultimately reward GE for exiting new coal builds.”

The move also makes GE’s portfolio more ESG (environment, social and governance) centric,

according to Wolfe Research analyst Nigel Coe, with the coal and steam equipment business

being relatively small at about US$1 billion of its annual revenues.

Shares of the company that also makes aircraft engines tumbled about 9 percent on Monday,

which analysts said was unrelated to the announcement.

Industrial peers Honeywell and 3M Co were down about 6 percent, as Wall Street's main

indexes hit their lowest in nearly seven weeks over concerns about fresh coronavirus-driven

lockdowns.

IMA-Daily Update Page 17

With no electricity supply, Erick Thohir opens a tender for

Antam's smelters Suparjo Ramalan

THE MINISTRY of State-Owned

Enterprises (SOEs) decided to hold a tender or procure electricity for the ferronickel smelter factory owned by PT Aneka Tambang Tbk (ANTM) in East Halmahera, North Maluku.

SOE Minister Erick Thohir said that currently there are 36 companies that registered in the tender when it opened today, Tuesday (22/9/2020). In fact, the 36 companies consist of state-owned companies and private parties.

"God willing, there will be a solution, whether it is through a tender that has been opened today (Tuesday). Antam has 36 enthusiasts, both from SOEs itself and from the private sector to supply (electricity)," said Erick in a joint working meeting. DPR Commission VI, Jakarta.

Erick said, in the tender process to supply electricity in this ferronickel smelter project, every tender participant or company was able to apply for electricity at a low price. "Of course the price is the cheapest, we want the price if I'm not mistaken under what is being offered, which is currently very expensive," said Erick.

To note, the smelter factory operational schedule is hampered because it does not have electricity supply. Mind ID Orias President Director Petrus Moedak said that his party was in discussion with PT PLN (Persero) so that it could supply electricity to the FeNi smelter.

Pasokan Listrik Kosong, Erick Thohir Buka Tender Bagi

Smelter Milik Antam Suparjo Ramalan

KEMENTERIAN Badan Usaha Milik

Negara (BUMN) memutuskan untuk meng-adakan tender atau pengadaan listrik bagi pabrik smelter feronikel milik PT Aneka Tambang Tbk (ANTM) di Halmahera Timur, Maluku Utara.

Menteri BUMN Erick Thohir mengatakan, saat ini sudah ada 36 perusahaan yang mendaftarkan diri dalam tender saat dibuka pada hari ini, Selasa (22/9/2020). Bahkan, ke-36 perusahaan itu terdiri dari perseroan plat merah dan pihak swasta.

"Insya Allah, nanti ada solusi apakah itu melalui tender yang sudah dibuka hari ini (Selasa), Antam ada 36 peminat baik dari BUMN sendiri, maupun dari swasta untuk melakukan supply (listrik) itu," ujar Erick dalam rapat kerja (raker) bersama Komisi VI DPR, Jakarta.

Erick bilang, dalam proses tender untuk memasok listrik di proyek smelter feronikel ini, setiap peserta tender atau perusahaan mampu mengajukan listrik dengan harga murah. "Tentu harga yang termurah, kita mau harganya itu kalau tidak salah di bawah yang ditawarkan, yang sekarang sangat mahal itu," kata Erick.

Untuk diketahui, jadwal operasional pabrik smelter ini terhambat lantaran belum memiliki pasokan listrik. Direktur Utama Mind ID Orias Petrus Moedak menyebut-kan, pihaknya tengah melakukan pem-bahasan dengan PT PLN (Persero) agar bisa memasok listrik ke smelter FeNi.

IMA-Daily Update Page 18

"We are waiting for an answer from PLN. If it is not possible, we will look for other sources for electricity generation," said Orias.

Meanwhile, Antam's management continues to focus on the construction of the ferronickel ferronickel plant construction project. Work on the smelter with a capacity of 13,500 tons of nickel in ferronickel per year is almost complete. In fact, Antam noted that the achievement of construction completion had reached 98 percent in the first semester of this year. (akr)

"Kami menunggu jawaban dari PLN. Bila tidak memungkinkan kami akan mencari dari sumber lain untuk pembangkit listrik," kata Orias.

Sementara itu, manajemen Antam terus fokus pada konstruksi proyek pem-bangunan pabrik feronikel feronikel. Pengerjaan smelter berkapasitas 13.500 ton nikel dalam feronikel per tahun tersebut hampir rampung. Bahkan, pihak Antam mencatat capaian penyelesaian konstruksi sudah mencapai 98% pada semester I tahun ini. (akr)

Hooray! A little more coal prices could touch US$60/ton

Tirta Citradi, CNBC Indonesia

CHINA's domestic coal price which is already classified as high has made Panda Country start thinking about importing its coal from outside in order to get a cheaper price. This is a positive catalyst for the Newcastle thermal coal price.

In yesterday's trade Tuesday (22/9/2020) the price of Newcastle thermal coal for actively traded contracts rose 0.6% to US$ 59.15/ton. The coal price is now approaching the psychological level of US$ 60/ton.

China's domestic thermal coal prices Qinhuangdao are already too high, so this has triggered a behavior called arbitrage or looking for the same goods by taking advantage of price differences in different markets.

Argus Media reports that the spread between Australian and Chinese thermal coal prices has touched its highest level this month.

Asik! Dikit Lagi Harga Batubara Bisa Sentuh US$60/ton Lho

Tirta Citradi, CNBC Indonesia

HARGA batu bara domestik China yang sudah

tergolong tinggi membuat Negeri Panda mulai berpikir untuk mengimpor batu baranya dari luar agar mendapat harga yang lebih murah. Hal ini menjadi katalis positif bagi harga batu bara termal Newcastle.

Pada perdagangan kemarin Selasa (22/9/ 2020) harga batu bara termal Newcastle untuk kontrak yang aktif diperdagangkan menguat 0,6% ke US$ 59,15/ton. Harga batu bara kini sudah mendekati level psikologis US$ 60/ton.

Harga batu bara termal domestik China Qinhuangdao sudah terlampau tinggi sehingga hal ini memicu terjadinya perilaku yang disebut arbitrage atau mencari barang yang sama dengan memanfaatkan per-bedaan harga di pasar yang berbeda.

Argus Media melaporkan selisih (spread) antara harga batu bara termal Australia dan China telah menyentuh level tertingginya di bulan ini.

IMA-Daily Update Page 19

The price of thermal coal for a calorific value of 5,500 Kcal/kg imported from Australia touched the level of US$ 39.35/ton, lower than the domestic price of Chinese coal for the same caloric value on 11 September.

This makes Chinese consumers and buyers of coal import from Australia because it is more profitable. Chinese demand has recovered in the past two weeks as market players expect Beijing to lift restrictions.

According to Argus Media, Chinese importers ordered large quantities of Australian cargoes that will load coal for November and December which they expect to be cleared at Chinese ports in January when the quota system is put in place until 2021.

At least four Capesize and Panamax-type cargoes containing 5,500 Kcal/kg calorie coal for November delivery from Australia traded at US$ 39-40.5/tonne fob Newcastle last week, with prices at which transactions were carried out rose over time. Most of this cargo was likely destined for China.

China's interest in seaborne coal may remain strong in the coming weeks, as there are signs that customs authorities are likely to ease import restrictions.

Authorities at the ports of Guangzhou and Fuzhou in southern China's Guangdong and Fujian provinces are each looking at how much stocks of imported coal are waiting for customs at the ports.

The move could signal a possible easing of import restrictions, while the Guangzhou port could remove 1.5 million tonnes of imported coal hoarded, market players said. CNBC INDONESIA RESEARCH TEAM

(twg/twg)

Harga batu bara termal untuk nilai kalori 5.500 Kcal/kg yang diimpor dari Australia sempat menyentuh level US$ 39,35/ton lebih rendah dari harga batu bara domestik China untuk nilai kalori yang sama 11 September lalu.

Hal ini membuat para konsumen dan pembeli batu bara China mengimpor dari Australia karena lebih menguntungkan. Permintaan China telah pulih dalam dua minggu terakhir karena pelaku pasar memperkirakan Beijing akan mencabut pembatasan.

Melansir Argus Media, importir China me-mesan sejumlah besar kargo Australia yang akan memuat batu bara untuk bulan Novem-ber dan Desember yang mereka perkirakan akan dibersihkan di pelabuhan China pada bulan Januari ketika sistem kuota diber-lakukan hingga 2021.

Setidaknya empat kargo tipe Capesize dan Panamax yang memuat batu bara berkalori 5.500 Kcal/kg untuk pengiriman bulan November dari Australia diperdagangkan pada US$ 39-40,5/ton fob Newcastle minggu lalu, dengan harga di mana transaksi dilakukan naik seiring berjalannya waktu. Sebagian besar kargo ini kemungkinan besar ditujukan ke China.

Minat China terhadap batu bara lintas laut (seaborne) dapat tetap kuat dalam beberapa minggu mendatang, karena ada tanda-tanda bahwa otoritas bea cukai tampaknya akan melonggarkan pembatasan impor.

Pihak berwenang di pelabuhan Guangzhou dan Fuzhou di provinsi Guangdong dan Fujian di China selatan masing-masing sedang melihat berapa banyak stok batu bara impor yang menunggu untuk bea cukai di pelabuhan.

Langkah tersebut dapat menandakan ke-mungkinan pelonggaran pembatasan impor, sementara pelabuhan Guangzhou dapat menghapus 1,5 juta ton batu bara impor yang ditimbun, kata pelaku pasar. TIM RISET CNBC INDONESIA (twg/twg)

IMA-Daily Update Page 20

Freeport aims for Copper Mark at six sites By: Creamer Media Reporter

US copper major Freeport-McMoRan has announced its commitment to the Copper Mark - an

assurance framework that demonstrates the industry’s responsible production practices and contribution to the United Nations Sustainable Development Goals.

It is the first and only framework developed specifically for the copper industry and enables each site to demonstrate to customers, investors and other stakeholders their responsible production performance.

Freeport-McMoRan has started the process for six of its operating sites and has future plans to validate all its operating sites against the Copper Mark requirements.

Last month, Rio Tinto’s Kennecott copper operation, in Utah, became the first to be awarded the Copper Mark.

“Our focus on responsible production is critical to establish and maintain acceptance from our stakeholders. The Copper Mark demonstrates our responsible production practices to downstream markets, helping to meet our customers’ responsible sourcing objectives,” said

Freeport-McMoRan president and CEO Richard Adkerson.

Copper plays an essential role in the technologies necessary to develop and deliver clean energy and to support the global transition to a low-carbon economy. As the energy transition continues, copper use is expected to increase from the use of electric vehicles and their charging stations and renewable energy technologies, such as solar and wind, and their necessary connections to grids.

“As one of the world's largest copper producers, we understand we play a critical role in this transition, and we remain dedicated to supplying the global economy with responsibly produced copper,” said Adkerson.

To receive the Copper Mark, copper producers must be assessed independently against a comprehensive set of environmental, social and governance criteria on a site-by-site basis.

The framework currently is focused on copper producers at the beginning of the supply chain, but it intends to develop criteria for fabricators and component producers in the coming years with the goal of establishing a chain of custody for downstream companies, such as automobile and electronics producers.

The Copper Mark was originally founded and developed by the International Copper Association, to which Freeport-McMoRan is a member, in conjunction with various stakeholders.

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World copper mine production declined by 1% in the first half of 2020 - International Copper Study Group

WORLD copper mine production declined by 1% in the first half of 2020, with concentrate production declining by 1.2% and solvent extraction-electrowinning (SX-EW) falling by 0.4%, said International Copper Study Group.

"World mine production is estimated to have declined by 4% in April-May as these two months were the most affected by the COVID-19 related global lockdown that resulted in temporary mine shutdowns/reduced production levels. However, world mine production started to recover in May as lockdown measures eased and June output reached the same level as June 2019," wrote the group in its September update.

The group noted that stoppages in Peru due to the COVID-19 pandemic, which were combined with operational and weather issues, affected a few major mines and led to a 20% decline in mine output over the first half of 2020 including a significant decline of 38% in April-May compared to the same period of 2019.

"However, as the Peruvian mining industry started to recover the extent of the reduction narrowed to 9% in June, compared to the same month in 2019."

The group noted that mine production also declined in Australia, Canada, Mexico, Mongolia, and the United States.

"In Chile, the world's biggest copper mine producing country, output increased by 2.6%, recovering from production constraints in early 2019 (production was down by 2.5% in 1st Half of 2019)."

In the Democratic Republic of Congo (DRC), the group noted that mine production increased by 5% as output from ramp-up mines more than offset the temporary closure of the Mutanda mine in December 2019. In Indonesia, production grew by 18% as output levels improved following the transition of the country’s major two copper mines to different ore zones in 2019.

Less than half the gold sent to big refiners comes from mines Reuters

LESS than half the gold processed by major refiners in 2018 came from large industrial mines, the London Bullion Market Association said on Tuesday, publishing data revealing for the first time the origin of bullion moving through its system.

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The LBMA said refiners it accredits, which dominate the industry and supply the world’s biggest banks, jewellers and manufacturers, processed 4,836 tonnes of gold in 2018 — an amount worth around $300 billion at current prices.

It said 2,127 tonnes came from large industrial mines, 26 tonnes was supplied by small and artisanal mines, and 2,683 tonnes was recycled gold such as jewellery, bars and coins returned to the market to be melted and refashioned.

The disclosure was part of the LBMA’s first annual report on the implementation of its responsible sourcing guidelines, which aim to stop gold whose production is linked to human rights abuses, crime or environmental damage from entering the supply chain.

Artisanal and recycled gold is riskier than that from large mines because it often passes through many different hands and its origins can be difficult or impossible to trace.

The LBMA says its refiners process more than 90% of gold from large industrial mines, but they take only a tiny fraction of the roughly 550 tonnes produced by artisanal and small scale miners each year.

The bulk of this gold is processed by refiners outside the LBMA system who are often less concerned with its origin. It can then move through the market labelled as recycled gold.

The LBMA said in the report it is aware of the risks of recycled gold and as well as developing its own rules is working with authorities in countries with large refining industries to improve regulation. (By Peter Hobson; Editing by Emelia Sithole-Matarise)

Newmont agrees to sell 11 royalties to Maverix for $90m

US gold and copper producer Newmont has signed a definitive agreement to sell a portfolio of 11 pre-production royalties to precious metals royalty and streaming company Maverix Metals.

Valued at a total consideration of $90m, the deal includes one mine under construction, four projects in development and a further six exploration assets.

The consideration will include $15m in cash, 12 million Maverix common shares, and up to $15m in contingency payments which is payable upon the completion of certain milestones.

Newmont Corporation president and CEO Tom Palmer said: “This transaction further strengthens our strategic partnership with Maverix and generates additional value for our respective shareholders.

“We remain focused on continuing to optimize our portfolio and look forward to realising further value through our position in Maverix.”

Newmont’s stake in Maverix will rise from 26% to 32% following the completion of the transaction, which is expected to close in the fourth quarter this year.

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The key assets Maverix will pick up include a 2% net smelter return (NSR) on Orla Mining-operated Camino Rojo gold mine that is currently under construction in Zacatecas, Mexico.

Maverix’s portfolio comprises over 100 royalties across 18 countries, with assets primarily located in Australia, the Americas and Mexico.

Maverix CEO Dan O’Flaherty said: “This transaction marks another important milestone in our continued growth at Maverix. The acquisition of these high quality royalties enhances our existing portfolio and adds to our already robust pipeline of development assets.

“We want to thank Newmont for continuing to entrust the Maverix team with unlocking additional value from their royalty assets.”

In May 2018, Newmont Mining signed an agreement to divest its royalty portfolio to Maverix Metals.

US gas-to-coal switching to boost coal consumption, help trim stocks

DESPITE a long-term trend of coal power plant closures, and dented energy demand more recently due to the coronavirus crisis, upside for coal has been materializing in the US as gas-fired generators reacted to higher prices in the summer months and coal regained some market share lost in 2019.

S&P Global Platts Analytics expects coal generation and production to ramp up through the rest of 2020.

Platts Analytics projects the combination of seasonal demand patterns, recovering power demand and increasing electricity and gas prices will drive an increase in US coal consumption in the generation sector of 5-15 million st through the end of 2020, compared with 2019.

Though still below 2019 levels in absolute terms, around 3 million st of additional coal consumption has been added from the apparent switch back from gas generation in August of 7-10 aGW. By the end of the year, the continued gas-to-coal switching and overall market improvements are expected to drive monthly coal consumption above 2019 levels.

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Coal generation had dropped to approximately 18% of total US generation during the first six months of 2020 from approximately 24% during the same period in 2019, losing share to natural gas and solar and wind generation. Platts Analytics expects this to improve to approximately 20% through the end of 2020 as coal generation improves.

Natural gas is expected to maintain an approximate 38-39% share of total generation, which represents an improvement over the course of this year compared to the 34% contributed through the first half of 2019, based on Platts Analytics data. Meanwhile, renewables have been steadily improving their share of total US generation from just under 8% in 2017 to approximately 11% this year.

Coal consumption increases are forecast in the MISO, PJM, SERC, ERCOT, and WECC power markets through the end of the year as forecast short-term coal prices remain competitive for generators compared with forecast gas prices.

This is particularly noticeable in MISO and PJM, where typical coal blends include coal from the Illinois Basin, the Powder River Basin and Central Appalachia. This blending will allow typical coal generators to remain competitive with various gas generators even as coal prices strengthen compared with recent levels.

Improving consumption is also driving a drawdown in US coal stocks. This supports a more bullish view for coal production as deliveries recover from the coronavirus pandemic-induced lows and coal stockpiles across the regions return to early 2020 levels from mid-year peaks.

Platts Analytics expects US stocks to have receded to around 120 million st through September, from the recent peak above 154 million st. We expect further fluctuation to around 134 million st before ending the year near where it began at around 129 million st. While these stock levels represent three-year highs, they are not record highs, and utilities are able to manage higher stock levels in the current market environment.

Texas Minerals consortium to produce rare earths from coal waste MINING.COM Staff Writer

THE US Department of Energy’s National Energy Technical Laboratory announced that it has selected a Texas Mineral Resources-led consortium to receive an award of up to $1 million targeting the production of rare earths in Pennsylvania.

Besides Texas Mineral Resources (OTCQB: TMRC), the project includes Penn State, Jeddo Coal Company and H22OS. The consortium’s objective is to install a self-contained, modular and portable pilot plant at a Jeddo Coal site in Pennsylvania capable of producing 1-3 tonnes of rare earth oxides derived from coal byproducts from anthracite coal.

The project will start on October 1, 2020, with a three-month conceptual design phase and the ultimate objective of completing a feasibility study.

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“This grant is a significant step forward toward creating the first of these operations in the Pennsylvania region. The potential to profitably produce scandium and other rare earth minerals from Pennsylvania anthracite coal byproducts holds great promise,” Anthony Marchese, chairman of TMRC, said in a media statement.

“Creating value from byproducts is an environmental goal shared by all citizens, especially when considering the strategic nature of the minerals at hand.”

According to Marchese, this is the third U.S. government award relating to the production of rare earth minerals in which his company has participated.

Back in 2016, TMRC announced it had successfully completed a demonstration-of-concept project funded by the U.S. Defense Logistics Agency’s Strategic Materials Division to separate and refine specific high-purity rare earth elements using continuous ion exchange and continuous ion chromatography processing method.

Later on, in 2019, a consortium including Texas Mineral Resources consortium successfully completed a U.S. Department of Energy Office of Fossil Energy grant to produce multiple separated rare earth minerals from Pennsylvania coal mining waste material.

The Sierra Blanca-based company is also using the method employed in both U.S. government-grant initiatives to process rare earths and additional critical minerals from the Round Top project in Texas, which is being developed by TMRC’s funding and its partner USA Rare Earth, LLC.

Successful completion of the DOE grant is consistent with a commercial supply chain in which final separation of the mixed REE concentrate into individual high purity rare earth oxides would be accomplished at USA Rare Earth’s processing facility using CIX/CIC processing methodology.