TABLE OF CONTENTS · penalty mineral pengotor, seperti kadar Fe dan Mg yang melebihi standar. Ketiga, Permen ESDM tersebut juga menentukan, dalam melakukan pembelian bijih nikel,

IMA-Daily Update Page 1

TABLE OF CONTENTS

No. Title Media Source Page

1.

2.

3.

4.

5.

6.

7.

8.

9.

The Government Issues New Rules on Benchmark Mineral Prices Pemerintah Terbitkan Aturan Baru soal Patokan Harga Minerba

The plan to cut production does not necessarily directly affect the condition of the coal market Rencana pemangkasan produksi belum tentu langsung berdampak ke kondisi pasar batubara

Vale Indonesia (INCO) recorded an increase in nickel in matte production in semester I-2020 Vale Indonesia (INCO) catat kenaikan produksi nikel dalam matte di semester I-2020 The Government will Revoke Mining Company Business Licenses If Violating the Nickel Ore Trade Terms Pemerintah akan Cabut Izin Usaha Perusahaan Tambang Jika Langgar Ketentuan Jual Beli Bijih Nikel Government Claims Nickel HPM Gives Balanced Profit for Miners and Smelters Entrepreneurs Pemerintah Klaim HPM Nikel Beri Profit Seimbang untuk Penambang dan Pengusaha Smelter Supply of Excess Nickel Ore, ESDM Ministry Sure that the Absorption Will Be Balanced in 2022 Suplai bijih nikel berlebih, Kementerian ESDM yakin serapan bakal seimbang pada 2022 Mining Mineral Prices Rise During Pandemic Harga Mineral Tambang Naik Selama Pandemi

ESDM: This year the Government Targets 7,000 hectares of Mine Reclamation ESDM: Tahun ini Pemerintah Targetkan Reklamasi Tambang Seluas 7.000 Hektare

Following Copper, Tin is Ready to Pursue Its Highest Level This Year Susul Tembaga, Timah Siap Kejar Level Tertingginya Tahun Ini

Liputan6

Kontan

Kontan Dunia Energi Bisnis Kontan Liputan6

Dunia Tambang

Bisnis

3

5

7

8

10

12

14

16

18

IMA-Daily Update Page 2

10.

11.

12.

13.

14.

15.

16.

17.

18.

Down for 3 Days in a Row, Here's the Coal Fate Turun 3 Hari Beruntun, Begini Nasib Batu Bara Indonesia's H1 output of nickel products rises -official BHP meets production targets despite Covid-19 Vietnam coal consumption growth among world’s fastest Jiangxi Copper sells shares in First Quantum S&P: U.S. coal exports down 29% through May 2020 compared to 2019 South32 drives up Australia Manganese ore output Decline in Coal Concentrate Production US thermal coal production, demand on an upswing, some relief seen for producers by year-end: Platts Analytics

CNBC Indonesia Reuters Mining Weekly VN Express Mining.com IEEFA Australian Mining Financial Tribune S&P Global Platts

21

23

24

25

26

27

27

28

29

IMA-Daily Update Page 3

The Government Issues New Rules on Benchmark Mineral

Prices Tira Santia

THE MINISTRY of Energy and Mineral

Resources (ESDM) delivered 11 substances of Ministerial Regulation No. 11 of 2020, related to the third amendment to the Minister of ESDM Regulation (Permen) No. 7 of 2017 concerning the procedures for determining Mineral Benchmark Prices (HPM) and Coal Benchmark Prices (HPB).

"There are several main substances that are regulated in this Permen, the first rule is that the determination of HPM and HPB is determined by considering the inter-

national market, taking into account our need to increase added value, and considering the implementation of good mining principles," said Acting. Director General of Mineral and Coal Rida Mulyana, in a Virtual Press conference on Monday (7/20/2020).

Second, the HPM of nickel ore is set as the lower bound price. Transactions can be done below the price, with a difference of no more than 3 percent. To anticipate

differences in price quotations or impurity mineral penalties, such as levels of Fe and Mg that exceed the standard.

Third, the ESDM Ministerial Decree also determines that in purchasing nickel ore, other parties must refer to the HPM. Then, fourthly, the addition of tin price publications refers to the Jakarta future exchange from previously only the Indonesian Commodity and Derivatives

Exchange (ICDX).

Pemerintah Terbitkan Aturan Baru soal Patokan Harga

Minerba Tira Santia

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) menyampaikan 11 substansi Peraturan Menteri Nomor 11 tahun 2020, terkait perubahan ketiga atas Permen ESDM nomor 7 tahun 2017 tentang tata cara penetapan Harga Patokan Mineral (HPM) dan Harga Patokan Batu bara (HPB).

“Ada beberapa substansi pokok yang diatur dalam Permen ini, aturan yang pertama bahwa penetapan HPM dan HPB itu ditetapkan dengan mempertimbangkan pasar internasional, mempertimbangkan juga keperluan kita untuk melakukan peningkatan nilai tambah, dan memper-timbangkan pelaksanaan kaidah pertam-bangan yang baik,” kata Plt. Direktur Jenderal Mineral dan Batubara Rida Mulyana, dalam konferensi Pers Virtual, Senin (20/7/2020).

Kedua, HPM bijih nikel ditetapkan sebagai harga batas bawah. Transaksi dapat dilakukan di bawah harga, dengan selisih tidak lebih dari 3 persen. Untuk meng-antisipasi perbedaan kutipan harga atau penalty mineral pengotor, seperti kadar Fe dan Mg yang melebihi standar.

Ketiga, Permen ESDM tersebut juga menentukan, dalam melakukan pembelian bijih nikel, pihak lain wajib mengacu pada HPM. Lalu, keempat, penambahan publi-kasi harga timah mengacu pada Jakarta future exchange dari sebelumnya hanya Bursa Komoditi dan Derivatif Indonesia alias Indonesia Commodity and Derivative Exchange (ICDX).

IMA-Daily Update Page 4

Fifth, HPM and HPB formulations are

determined monthly by the Minister of

ESDM. Sixth, in the field verification of

quality and quantity must be carried out by

the implementing surveyor, who will issue

a verification report (LHV).

"Seventh, who appoints surveyors in this

Ministerial Regulation is the Director

General of Mineral and Coal, who will

designate surveyors as verifiers of mineral

and coal sales in the field," he said.

Eighth, domestic sales must appoint

surveyors as referees (umpire) if there are

differences in the results of analysis

between mineral quality between sellers

and buyers.

Ninth, the provisions of the HPM and HPB

formulas that are also regulated in this

candy can be reviewed every 6 months. "So

if for example we publish in February, the

next 6 months will be evaluated around

October," he said.

Tenth, sanctions for those who do not refer

to HPM and HPB. Sanctions in the form of

written warnings, suspension of activities,

up to the revocation of Mining Business

Permit (IUP).

Then administrative sanctions are imposed

on holders of IUP who sell under the HPM.

"Also to other parties who make purchases

under HPM, after coordinating with

relevant ministries such as the Ministry of

Industry," he said.

Finally, the eleventh, this Permen was

enacted by Law 30 days after it was

promulgated since April 14, 2020.

Kelima, formulasi HPM dan HPB pada saatnya ditetapkan perbulan melalui Kepmen ESDM. Keenam, dilapangan verifikasi kualitas dan kuantitasnya wajib dilakukan oleh surveyor pelaksana, yang akan menerbitkan laporan hasil verifikasi (LHV).

“Ketujuh, yang menunjuk surveyor dalam Permen ini adalah Dirjen Minerba, yang

akan menetapkan surveyor sebagai verifikator penjualan mineral dan batu bara di lapangan,” katanya.

Kedelapan, penjualan dalam negeri wajib

menunjuk surveyor sebagai wasit (umpire)

apabila terjadi perbedaan hasil analisa antara kualitas mineral antara penjual dan pembeli.

Kesembilan, ketentuan formula HPM dan HPB itu juga diatur dalam permen ini

dapat ditinjau setiap 6 bulan. “Jadi kalau misalkan kita terbitkan bulan Februari tambah 6 bulan evaluasinya sekitar bulan oktober,” ujarnya.

Kesepuluh, sanksi bagi yang tidak mengacu HPM dan HPB. Sanksi berupa peringatan

tertulis, penghentian sementara kegiatan, hingga pencabutan Izin Usaha Pertam-bangan (IUP).

Kemudian Sanksi administrasi dikenakan

kepada pemegang IUP yang melakukan penjualan di bawah HPM.

“Juga kepada pihak lain yang melakukan pembelian dibawah HPM, setelah koor-dinasi dengan Kementerian terkait seperti Kemenperin,” ujarnya.

Terakhir, kesebelas, Permen ini secara Undang-Undang diberlakukan terhitung 30 hari setelah diundangkan sejak 14 April 2020.

IMA-Daily Update Page 5

The plan to cut production does not necessarily directly affect the

condition of the coal market Reporter: Dimas Andi | Editor: Handoyo

THE PLAN to cut coal production proposed by the Indonesian Coal Mining Association (APBI) around 15%-20% of the initial plan this year is not considered to have a significant impact on the commodity market conditions.

Director of the Center for Indonesia Resources Strategic Studies (Ciruss) Budi Santoso said that natural coal production cuts were carried out as part of supply controls which would ultimately affect the movement of commodity prices. However,

it must be admitted that such a plan is not necessarily effective.

What's more, the big coal mining companies are estimated to still maintain production for the rest of this year. "The problem is, who wants to cut production," he told Kontan, Monday (7/20).

Indeed, on paper the opportunities for coal companies to adjust production targets remain open. The reason is coal demand

from a number of consumers has decreased significantly due to the Covid-19 pandemic. There is no guarantee that coal companies can exceed their production targets this year.

"If the impact of Covid-19 continues this year, coal mining companies must adjust production targets," said Budi.

He also admitted, if the production target of coal producers is lowered, it will affect the sale of these commodities. Then,...

Rencana pemangkasan produksi belum tentu langsung berdampak

ke kondisi pasar batubara Reporter: Dimas Andi | Editor: Handoyo

RENCANA pemangkasan produksi batubara yang diusulkan oleh Asosiasi Pertambangan Batubara Indonesia (APBI) sekitar 15%-20% dari rencana awal pada tahun ini dinilai belum tentu berdampak signifikan terhadap kondisi pasar komoditas tersebut.

Direktur Centre for Indonesia Resources Strategic Studies (Ciruss) Budi Santoso menyampaikan, pemangkasan produksi batubara wajar dilakukan sebagai bagian dari kontrol suplai yang pada akhirnya akan berpengaruh pada pergerakan harga komoditas ini. Namun, harus diakui rencana demikian belum tentu efektif.

Terlebih lagi, para perusahaan tambang batubara besar diperkirakan masih tetap mempertahankan produksinya di sisa tahun ini. “Permasalahannya, siapa yang produksi-nya mau dipotong,” kata dia kepada Kontan, Senin (20/7).

Memang, di atas kertas peluang bagi perusaha-an-perusahaan batubara untuk menyesuaikan target produksi tetap terbuka. Pasalnya, permintaan batubara dari sejumlah konsumen mengalami penurunan signifikan akibat pandemi Covid-19. Tidak ada jaminan pula perusahaan batubara bisa melampaui target produksinya di tahun ini.

“Kalau dampak Covid-19 terus berlangsung setahun ini, perusahaan tambang batubara harus menyesuaikan target produksi,” ungkap Budi.

Ia pun mengaku, jikalau target produksi dari para produsen batubara diturunkan, maka akan berpengaruh pada penjualan komoditas tersebut. Lantas,...

IMA-Daily Update Page 6

Then, the realization of non-tax state

revenue (PNBP) obtained from coal sales

will directly decrease. The government

inevitably has to anticipate the potential

reduction in the PNBP.

Previously, APBI Executive Director

Hendra Sinadia stated, basically each coal

producer had different policies in view of

the current market conditions. There are

companies that intend to reduc e

production and there are companies that

still maintain targets or even raise

production targets for the rest of the year.

"We indeed appealed so, but in the end we

did not have the strength to force

companies to make adjustments to

production targets," he said, Sunday

(7/19).

What is clear, APBI believes is the

production cutback strategy is expected to

reduce prices that continue to fall due to

the widening of oversupply or oversupply

of coal.

According to the APBI study, the estimated

coal production in 2020 is around 595

million tons, but this prediction has

dropped to 530 million tons in June 2020.

APBI views that national production

control is still needed with additional

production cuts of up to 50 million tons, so

that national coal production becomes

around 480 million tons to create a balance

of demand and supply in the market.

Lantas, realisasi penerimaan negara bukan pajak (PNBP) yang diperoleh dari penjualan batubara secara langsung akan turun. Pemerintah mau tidak mau harus mengantisipasi potensi penurunan PNBP tersebut.

Sebelumnya, Direkur Eksekutif APBI Hendra Sinadia menyatakan, pada dasar-nya setiap produsen batubara memiliki

kebijakan yang berbeda-beda dalam memandang kondisi pasar terkini. Ada perusahaan yang berniat menurunkan produksi dan ada pula perusahaan yang tetap mempertahankan target atau bahkan menaikkan target produksi di sisa tahun ini.

“Kami memang mengimbau demikian, tapi pada akhirnya kami tidak punya kekuatan untuk memaksa perusahaan untuk melakukan penyesuaian target produksi,”

ujarnya, Minggu (19/7).

Yang jelas, APBI berpendapat strategi pemangkasan produksi diharapkan dapat menekan harga yang terus turun karena semakin melebarnya oversupply atau kelebihan pasokan batubara.

Menurut kajian APBI, perkiraan produksi batubara di tahun 2020 sekitar 595 juta ton, namun prediksi ini telah turun menjadi 530 juta ton di Juni 2020. APBI

memandang masih diperlukan pengen-dalian produksi nasional dengan adanya tambahan pemangkasan produksi sampai 50 juta ton, sehingga produksi batubara nasional menjadi sekitar 480 juta ton agar tercipta keseimbangan permintaan dan penawaran di pasar.

IMA-Daily Update Page 7

Vale Indonesia (INCO) recorded an increase in nickel in matte production in semester I-2020 Reporter: Dimas Andi | Editor: Khomarul

Hidayat

MINERAL mining company PT Vale Indonesia Tbk (INCO) announced it had produced nickel in matte totaling 18,701 metric tons in the second quarter of 2020. With these results, the total nickel production in INCO matte up to semester I-2020 has reached 36,315 metric tons.

In the information disclosure of the Indonesia Stock Exchange (BEI), CEO and President Director of Vale Indonesia Nico Kanter said, the production volume in the second quarter of 2020 was 6% higher (qoq) compared to the production volume realized in the first quarter of 2020 amounted to 17,614 metric tons.

Likewise, nickel in matte production in semester I-2020 which was 18% (yoy) higher than the realization of semester I-2019 production of 30,711 metric tons. This is due to the shorter shutdown period in semester one of 2020.

In the first semester of last year, INCO conducted a longer planned shutdown for activities related to Larona Canal Lining.

"With this achievement we are confident that we can maintain our production levels in 2020," explained Nico Kanter in a written statement, Monday (7/20).

In Kontan's notes, the company, which was only acquired by a portion of its shares by MIND ID, targets the production of nickel in matte to reach 71,000 metric tons by the end of the year.

Vale Indonesia (INCO) catat kenaikan produksi nikel dalam

matte di semester I-2020 Reporter: Dimas Andi | Editor: Khomarul

Hidayat

PERUSAHAAN tambang mineral PT Vale Indonesia Tbk (INCO) mengumumkan telah memproduksi nikel dalam matte sebanyak 18.701 metrik ton pada kuartal II-2020. Dengan hasil tersebut, total produksi nikel dalam matte INCO hingga semester I-2020 telah mencapai 36.315 metrik ton.

Dalam keterbukaan informasi Bursa Efek Indonesia (BEI), CEO dan Presiden Direktur Vale Indonesia Nico Kanter menyebut, volume produksi di kuartal II-2020 lebih tinggi 6% (qoq) dibandingkan volume produksi yang direalisasikan di kuartal I-2020 sebesar 17.614 metrik ton.

Begitu pula dengan produksi nikel dalam matte di semester I-2020 yang 18% (yoy) lebih tinggi dibandingkan realisasi produksi semester I-2019 sebesar 30.711 metrik ton. Hal ini disebabkan oleh periode shutdown yang lebih pendek di semester satu tahun 2020.

Pada semester pertama tahun lalu, INCO melakukan shutdown terencana yang lebih panjang untuk kegiatan-kegiatan terkait dengan Larona Canal Lining.

“Dengan pencapaian ini kami yakin dapat mempertahankan tingkat produksi kami pada tahun 2020,” jelas Nico Kanter dalam keterangan tertulis, Senin (20/7).

Dalam catatan Kontan, perusahaan yang baru diakuisisi sebagian sahamnya oleh MIND ID ini menargetkan produksi nikel dalam matte sebesar 71.000 metrik ton hingga akhir tahun nanti.

IMA-Daily Update Page 8

The Government will Revoke Mining Company Business

Licenses If Violating the Nickel Ore Trade Terms

Rio Indrawan

TO ensure the application of the ESDM Ministerial Regulation (Permen) No. 11 of 2020 governing the domestic nickel ore trading system. The government will form a task force (Satgas) to ensure the sale and purchase of nickel ore from the miners to the smelter.

Yunus Saefulhak, Director of Development and Mineral Exploitation of the Ministry of ESDM, said that the task force is targeted to be formed soon and starting next month, it can carry out its duties in supervising nickel ore transactions at smelters to refer to the Mineral Benchmark Prices (HPM). The government insists it will impose sanctions on those who violate the provisions in the sale and purchase of minerals, mainly nickel.

"Oh yes, (next month) it will be able to run and be firm. Maybe next month these sanctions will come out," Yunus said in a virtual press conference on Monday (7/20).

The government will impose sanctions starting with a written warning, temporary suspension of part or all business activities, and/or revocation of licenses.

Yunus said the task force consisted of the Ministry of ESDM, the Ministry of Industry and also the Investment Coordinating Board (BKPM). Coordination with the Ministry of Industry is one of the main keys because there are smelters whose permits are issued in the form of Industrial Business Licenses (IUI) issued by the Ministry of Industry.

Pemerintah akan Cabut Izin Usaha Perusahaan Tambang Jika Langgar Ketentuan Jual

Beli Bijih Nikel Rio Indrawan

GUNA memastikan penerapan aturan

Peraturan Menteri (Permen) ESDM Nomor 11 tahun 2020 yang mengatur tata niaga bijih nikel dalam negeri. Pemerintah akan membentuk satuan tugas (Satgas) guna memastikan transaksi jual-beli bijih nikel dari para penambang ke smelter.

Yunus Saefulhak, Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM, mengungkapkan satgas ditargetkan segera terbentuk dan mulai bulan depan sudah bisa menjalankan tugasnya dalam mengawasi transaksi bijih nikel di smelter agar meng-acu pada Harga Patokan Mineral (HPM). Pemerintah menegaskan akan memberi sanksi kepada pihak yang melanggar ketentuan dalam transaksi jual beli mineral utamanya nikel.

“Oh iya, (bulan depan) sudah bisa berjalan dan tegas. Mungkin baru bulan depan akan keluar sanksi-sanksi tersebut,” kata Yunus dalam konferensi pers virtual, Senin (20/7).

Pemerintah akan memberikan sanksi mulai dari peringatan tertulis, penghentian semen-tara sebagian atau seluruh kegiatan usaha, dan/atau pencabutan izin.

Yunus mengatakan satgas terdiri dari pihak Kementerian ESDM, Kementerian Perindus-trian dan juga Badan Koordinasi Penanaman Modal (BKPM). Koordinasi dengan pihak Kemenperin menjadi salah satu kunci utama lantaran ada smelter yang perizinannya terbit dalam bentuk Izin Usaha Industri (IUI) yang diterbitkan Kemenperin.

IMA-Daily Update Page 9

The Task Force will provide the results of supervision or recommendations while a warning to sanctions will be issued by the licensor.

"Those who have the authority to give warnings and sanctions are actually institutions that give their licenses. Like the OPK IUP, processing and refining is upon us, mining IUP means in the ESDM. If it is IUI, it will be at the Ministry of Industry," Yunus explained.

The sale and purchase price of nickel ore with reference to this HPM is a fairer formulation for miners and smelters. Establishment of HPM in ESDM Regulation No. 11/2020 has considered Reference Mineral Prices (HMA) which apply internationally.

The price of nickel ore that refers to the HPM must be above the Production Cost Price (HPP) of the miners. Thus, it still provides profit margins for miners and smelter entrepreneurs.

Yunus explained that the average nickel HPP was in the range of US$ 20 - US$ 22 per ton. With an average price of ore at the level of US$ 28 - US$ 30 per ton, Yunus said, miners still have a profit margin of around 34%, while for smelters around 33%.

"This has considered both parties, both miners and smelters. That means (domestic nickel price refers to HPM) in the middle position," Yunus said.

The government ensures that the price of nickel ore that refers to the HPM must be above the Production Cost Price (HPP) of the miners. Thus, miners and smelter entrepreneurs still enjoy profit margins. (RI)

Satgas akan memberikan hasil pengawasan atau rekomendasi sedangkan peringatan hingga sanksi akan dikeluarkan oleh pemberi izin.

“Yang punya kewenangan memberikan peringatan dan sanksi sesungguhnya institusi yang memberikan izinnya. Seperti IUP OPK pengolahan dan pemurnian di kita, IUP penambang berarti ESDM. Kalau dari IUI maka Kemenperin,” jelas Yunus.

Harga jual-beli bijih nikel dengan mengacu pada HPM ini merupakan formulasi yang lebih adil bagi penambang maupun smelter. Penetapan HPM pada Permen ESDM No. 11/2020 telah mempertim-bangkan Harga Mineral Acuan (HMA) yang berlaku secara internasional.

Harga bijih nikel yang mengacu pada HPM pasti di atas Harga Pokok Produksi (HPP) dari penambang. Sehingga, tetap mem-berikan margin keuntungan bagi penam-bang maupun pengusaha smelter.

Yunus menjelaskan bahwa HPP nikel rata-rata berkisar di angka US$ 20 – US$ 22 per ton. Dengan harga rata-rata bijih di level US$ 28 – US$ 30 per ton, kata Yunus, penambang masih memiliki margin profit sekitar 34%, sedangkan untuk smelter sekitar 33%.

“Ini sudah mempertimbangkan kedua belah pihak, baik penambang maupun smelter. Itu artinya (harga nikel domestik mengacu pada HPM) sudah ada di posisi yang tengah,” kata Yunus.

Pemerintah memastikan, harga bijih nikel yang mengacu pada HPM pasti di atas Harga Pokok Produksi (HPP) dari penambang. Sehingga, penambang maupun pengusaha smelter tetap masih menikmati margin keuntungan. (RI)

IMA-Daily Update Page 10

Government Claims Nickel HPM Gives Balanced Profit for Miners

and Smelters Entrepreneurs Denis Riantiza Meilanova

THE MINISTRY of Energy and Mineral

Resources (ESDM) claims the formula for calculating the sale and purchase price of nickel ore with a benchmark mineral price (HPM) is able to provide a balanced profit margin for miners and smelter entre-preneurs.

Acting Director General of Mineral and Coal of the Ministry of ESDM Rida Mulyana said that the determination of HPM was always below the sales price of nickel ore on the international market in order to improve the economics of domestic smelters.

On the other hand, HPM is set above the cost of production (HPP) of nickel ore to provide profit for nickel miners.

But in reality, there are still sales under the HPM, even under the HPP because the domestic market is depressed due to higher supply than demand.

Therefore, the government also issued the Minister of ESDM Regulation (Permen) No. 11 of 2020 concerning the Third Amend-ment to the Ministry of ESDM No. 7 of 2017 concerning Procedures for Determining Benchmarks of Metal Minerals and Coal Benchmarks.

The Permen stipulates that holders of Metal Mineral Production Operation IUPs, especially those producing nickel ore, must refer to Metal HPM in selling nickel ore produced.

The obligation to refer to Metal HPM also applies to the sale of nickel ore produced to affiliates.

Pemerintah Klaim HPM Nikel Beri Profit Seimbang untuk Penambang

dan Pengusaha Smelter Denis Riantiza Meilanova

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) mengklaim formula peng-hitungan harga jual beli bijih nikel dengan harga patokan mineral (HPM) mampu memberikan profit margin yang seimbang bagi penambang dan pengusaha smelter.

Plt Direktur Jenderal Minerba Kementerian ESDM Rida Mulyana mengatakan bahwa penetapan HPM selalu di bawah harga penjualan bijih nikel di pasar internasional guna meningkatkan keekonomian smelter dalam negeri.

Di sisi lain, HPM ditetapkan di atas harga pokok produksi (HPP) bijih nikel untuk memberikan profit bagi penambang nikel.

Namun dalam realitasnya, masih terdapat penjualan di bawah HPM, bahkan di bawah HPP karena pasar domestik tertekan akibat suplai lebih tinggi dari demand.

Oleh karena itu, pemerintah pun mener-bitkan Peraturan Menteri ESDM Nomor 11 Tahun 2020 tentang perubahan Ketiga atas Peraturan MESDM Nomor 7 Tahun 2017 tentang Tata Cara Penetapan Harga Patokan Mineral Logam dan Harga Patokan Batu-bara.

Dalam Permen tersebut diatur bahwa pemegang IUP Operasi Produksi Mineral Logam terutama yang memproduksi bijih nikel, wajib mengacu pada HPM Logam dalam melakukan penjualan bijih nikel yang diproduksi.

Kewajiban untuk mengacu pada HPM Logam juga berlaku untuk penjualan bijih nikel yang diproduksi kepada afiliasinya.

IMA-Daily Update Page 11

"This is how to find balance, justice for smelters who want the lowest possible prices. But on the other hand, we must ensure that nickel mining activities provide sufficient margin for mining," Rida said in a virtual press conference on Monday (7/20/2020).

ESDM Ministry's Mineral Exploiting Development Director Yunus Saefulhak added that currently the price of nickel ore sales under HPM or HPP, which is around US$ 20 per ton, could provide a profit margin of around 41 percent for smelter entrepreneurs.

Meanwhile, the profit margin obtained by mining entrepreneurs is minus 2 percent. He said he was worried that the lack of profits obtained by mining entrepreneurs would make environmental management neglected because there were cost reductions in the sector.

Another case, when sales refer to HPM. Yunus said that when the sales were based on HPM, the profit margins obtained by smelters and miners would be balanced.

"When according to HPM with a correction factor of 19 percent, the average price is around US$ 33.22 per ton with current price fluctuations. So if it's like this, the profit margin of the smelter can be 33 percent, mining is 34 percent. That means in the middle," said Yunus.

The nickel metal HPM listed in ESDM Regulation No. 11 of 2020 applies as the floor price in calculating the obligation to pay production dues for Production Operation IUP holders and is a reference for determining sales prices for Mineral Production Operation IUP holders calculated based on the HPM formulation and refer to the HMA issued by the Minister of ESDM every month.

"Ini bagaimana mencari keseimbangan, keadilan untuk smelter yang ingin harga serendah-rendahnya. Tapi di sisi lain, kami harus menjamin aktivitas penambangan nikel memberikan margin yang cukup bagi penambangan," ujar Rida dalam konferensi pers virtual, Senin (20/7/2020).

Direktur Pembinaan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak me-nambahkan bahwa saat ini dengan harga penjualan bijih nikel di bawah HPM atau HPP, yakni sekitar US$20 per ton, dapat memberikan profit margin sekitar 41 persen bagi pengusaha smelter.

Sementara itu, profit margin yang diperoleh pengusaha tambang minus 2 persen. Pihaknya khawatir minimnya profit yang diperoleh pengusaha tambang akan mem-buat pengelolaan lingkungan terabaikan karena ada pengurangan biaya di sektor tersebut.

Lain halnya, bila penjualan mengacu pada HPM. Yunus menuturkan bahwa ketika penjualan sesuai HPM maka profit margin yang diperoleh pengusaha smelter dan penambang akan seimbang.

"Ketika sesuai HPM dengan corection factor 19 persen, maka harga rata-ratanya sekitar US$33,22 per ton dengan fluktuasi harga sekarang. Maka kalau seperti ini, profit margin smelter bisa 33 persen, tambang 34 persen. Artinya di tengah-tengah," kata Yunus.

Adapun HPM logam nikel yang tercantum dalam Permen ESDM Nomor 11 Tahun 2020 berlaku sebagai harga batas bawah (floor price) dalam penghitungan kewajiban pembayaran iuran produksi bagi pemegang IUP Operasi Produksi dan merupakan acuan penetapan harga penjualan bagi pemegang IUP Operasi Produksi Mineral yang dihitung berdasarkan formulasi HPM dan mengacu kepada HMA yang diterbitkan oleh Menteri ESDM setiap bulannya.

IMA-Daily Update Page 12

Yunus said that sales could be done under the HPM, but with a difference of not more than 3 percent. Editor: David Eka Issetiabudi

Yunus menuturkan penjualan boleh dilaku-kan di bawah HPM, namun dengan selisih tidak lebih dari 3 persen. Editor : David Eka Issetiabudi

Supply of Excess Nickel Ore, ESDM Ministry Sure that the

Absorption Will Be Balanced in 2022

Reporter: Ridwan Nanda Mulyana | Editor: Khomarul Hidayat

THE MINISTRY of Energy and Mineral Resources (ESDM) notes that the production or supply of nickel ore in the country is still far higher than the input capacity of smelter plants currently in Indonesia.

ESDM Ministry's Director of Mineral Development and Business Yunus Saefulhak said, this happened because there were still many nickel smelters that were not yet operational. From the target of 29 nickel smelters until 2022, there are only 11 smelters operating while the rest are still in the construction stage.

Yunus gives an illustration, the smelter input capacity in Indonesia is only able to absorb around 30 million tons of ore. While the production capacity of nickel ore can reach around 60 million tons a year.

Meanwhile, nickel ore absorbed averaged 1.8%, or by mixing low grade 1.5%-1.6% nickel ore with a content of 2%.

"This smelter can absorb up to about 30 million tons of input capacity. Then our production is around 60 million tons. Supply and demand are not balanced? Indeed,...

Suplai bijih nikel berlebih, Kementerian ESDM yakin

serapan bakal seimbang pada 2022

Reporter: Ridwan Nanda Mulyana | Editor: Khomarul Hidayat

KEMENTERIAN Energi dan Sumber Daya Mineral (ESDM) mencatat produksi atau pasokan bijih nikel dalam negeri masih jauh lebih tinggi dibanding kapasitas input pabrik pengolahan dan pemurnian (smelter) yang saat ini ada di Indonesia.

Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengatakan, hal itu terjadi lantaran masih banyak smelter nikel yang belum beroperasi. Dari target 29 smelter nikel hingga tahun 2022, baru ada 11 smelter yang beroperasi sedangkan sisanya masih di tahap pem-bangunan.

Yunus memberikan gambaran, kapasitas input smelter yang ada di Indonesia mampu hanya mampu menyerap sekitar 30 juta ton bijih. Sedangkan kapasitas produksi bijih nikel bisa mencapai sekitar 60 juta ton dalam setahun.

Adapun, bijih nikel yang diserap rata-rata yang berkadar 1,8%, atau dengan pencam-puran antara bijih nikel kadar rendah 1,5%-1,6% dengan yang memiliki kandungan 2%.

"Smelter ini bisa menyerap sampai sekitar 30 juta ton kapasitas inputnya. Kemudian produksi kita itu sekitar 60-an juta ton. Supply dan demand enggak seimbang? Memang,...

IMA-Daily Update Page 13

Indeed, we are planning the development of the next smelter," Yunus said in a virtual press conference held on Monday (20/7).

According to him, the smelter construction target by 2022 will increase input capacity, so that nickel ore processing can be accommodated domestically. Included with a smelter that can process low grade nickel ore with a content of 1.5%.

Yunus said, the low grade nickel ore would be processed using hydrometallurgical technology, aka HPAL. This smelter will later process the ore into nickel sulfate and cobalt sulfate.

"Now the development is quite good, there is a progress of around 40%," he said.

He said, if the smelters could operate in 2022, there would be an additional input capacity of around 29 million tons. If totaled with the current capacity, it can accommodate domestic nickel ore supplies.

"I think later the balance will occur when in 2022 between mining production and input capacity rather than the smelter," Yunus said.

He said this was also the government's consideration to speed up the ban on the export of low grade nickel ore, which took effect on January 1, 2020. That way, nickel ore reserves and production will be maintained to anticipate the need for input smelters which will be operational in 2022.

"So the government indeed banned nickel exports in order to anticipate the capacity of the smelters that were being built," Yunus added.

Referring to data from the Directorate General of Mineral and Coal the Ministry of ESDM, the realization of nickel ore production last year was 60.95 million tons, skyrocketing from the realization in 2018 which was only 22.14 million tons.

Memang kita sedang merencanakan pengem-bangan smelter berikutnya," kata Yunus dalam konferensi pers virtual yang digelar Senin (20/7).

Menurutnya, target pembangunan smelter hingga tahun 2022 bakal menambah kapasitas input, sehingga pengolahan bijih nikel bisa tertampung di dalam negeri. Termasuk dengan smelter yang dapat mengolah bijih nikel kadar rendah dengan kandungan 1,5%.

Yunus bilang, bijih nikel kadar rendah itu bakal diolah dengan menggunakan teknologi hidrometalurgi alias HPAL. Smelter ini lah yang nantinya akan mengolah bijih menjadi nikel sulfat dan kobalt sulfat.

"Sekarang perkembangannya cukup lumayan, progresnya ada yang 40% sekian," ungkapnya.

Kata dia, jika smelter-smelter tersebut bisa ber-operasi pada tahun 2022, maka akan ada tambahan kapasitas input sekitar 29 juta ton. Jika ditotal dengan kapasitas yang ada sekarang, maka dapat menampung pasokan bijih nikel dari dalam negeri.

"Saya kira nanti keseimbangan akan terjadi ketika tahun 2022 antara produksi tambang dan kapasitas input daripada smelternya," sebut Yunus.

Dia mengatakan, hal ini juga yang menjadi pertimbangan pemerintah untuk memper-cepat larangan ekspor bijih nikel kadar rendah yang mulai berlaku sejak 1 Januari 2020 lalu. Dengan begitu, cadangan dan produksi bijih nikel bakal terjaga untuk mengantisipasi kebutuhan input smelter-smelter yang akan beroperasi pada tahun 2022.

"Jadi memang pemerintah melarang ekspor nikel dalam rangka mengantisipasi kapasitas smelter-smelter yang sedang dibangun," imbuh Yunus.

Merujuk data dari Ditjen Minerba Kementerian ESDM, realisasi produksi bijih nikel tahun lalu tercatat sebanyak 60,95 juta ton, meroket dari realisasi tahun 2018 yang hanya sebesar 22,14 juta ton.

IMA-Daily Update Page 14

Nickel ore exports last year also rose to 30.19 tons compared to 2018 which amounted to 20.07 million tons.

According to Bambang Gatot Ariono, Director General of Minerba at the Ministry of ESDM at the time, the increase in nickel ore production and exports last year was only situational as a psychological effect of accelerating the ban on exports of low grade nickel ore. Meanwhile for this year, Bambang predicts nickel ore production will again be around 30 million tons.

"The increase in 2019 is indeed situational, psychological because the government implements an export ban. My calculation (nickel ore production) to supply domestic needs is around 30 million tons," Gatot said at a press conference, March 12, 2020.

Ekspor bijih nikel pada tahun lalu juga tercatat naik menjadi 30,19 ton dibanding tahun 2018 yang sebanyak 20,07 juta ton.

Menurut Bambang Gatot Ariono, Dirjen Minerba Kementerian ESDM saat itu, kenaikan produksi dan ekspor bijih nikel di tahun lalu hanya situasional sebagai efek psikologis atas percepatan larangan ekspor bijih nikel kadar rendah. Sementara untuk tahun ini, Bambang memprediksi produksi bijih nikel akan kembali berkisar di angka 30-an juta ton.

"Kenaikan di 2019 itu memang situasional, psikologis karena pemerintah menerapkan larangan ekspor. Perhitungan saya (produksi bijih nikel) untuk memasok kebutuhan di dalam negeri sekitar 30-an juta ton," kata Gatot dalam konferensi pers, 12 Maret 2020 lalu.

Mining Mineral Prices Rise During Pandemic

Tira Santia

THE MINISTRY of Energy and Mineral Resources (ESDM) sets the Mineral Reference Price (HPM), which is contained in Ministerial Regulation number 11 of 2020. The existence of this rule is to maintain the price of minerals in the country.

The Director of Mineral Development and Business, Directorate General of Mineral and Coal, ESDM Ministry Yunus Saefulhak, said commodity prices in general had increased in June 2020.

"If we look at May the Nickel price is USD 12,135.32 per dmt, and in June it rose to USD 12,703.27 per dmt, tending to increase by 4.68 percent," Yunus said at the HPM Development press conference on Monday (7/20/2020).

Harga Mineral Tambang Naik Selama Pandemi

Tira Santia

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) menetapkan Harga Patokan Mineral (HPM), yang tertuang dalam Peraturan Menteri nomor 11 tahun 2020. Adanya aturan ini untuk menjaga harga mineral dalam negeri.

Direktur Pembinaan dan Pengusahaan Mineral Ditjen Minerba Kementerian ESDM Yunus Saefulhak, mengatakan harga komo-ditas secara umum mengalami pening-katan pada Juni 2020.

“Kalau kita lihat bulan Mei Nikel itu harganya USD 12.135,32 per dmt, dan Juni kemudian naik menjadi USD 12.703,27 per dmt, cenderung naik perubahannya 4,68 persen,” kata Yunus dalam konferensi pers Perkembangan HPM, Senin (20/7/2020).

IMA-Daily Update Page 15

Likewise with tin in May, USD 15,408.53 per dmt, June to USD 16,806.27 per dmt, the change was 9.07 percent.

Aluminum, May, USD 1,459.79 per dmt, June to USD 1,564.02 per dmt, a change of 7.14 percent. Then, copper USD 5,233.82 per dmt to USD 5,742.39 per dmt the change was 9.72 percent.

While for gold, it was USD 1,716.38 per Ounce to USD 1,732.22 per Ounce, the change was 0.92 percent. Finally, silver in May was USD 16.23 per Ounce to USD 17.72 per Ounce, a change of 9.16 percent.

"When compared with prices in May 2020. A significant increase of 9 percent occurred in tin and copper commodities," he said.

Of course, please note that after calculating the average mineral price is still below the international price of 30 percent. This aims to encourage the investment climate of smelters to build processing and refining facilities in Indonesia.

"We are trying hard to enforce these rules both at the mine and smelter holders," he concluded.

ESDM Geology Agency and Trinitan Metals Test Low Cost Nickel Down-stream

Previously, the Geological Agency of the Ministry of Energy and Mineral Resources (ESDM) collaborated with PT Trinitan Metals & Minerals Tbk (TMM) to test low grade nickel ore using the latest technology.

Head of Mineral, Coal and Geothermal Resources (PSDMBP) Bandung Geological Agency Iman K Sinulingga said, the STAL technology presented by Trinitan Metals & Minerals has the potential to add value to national mineral resources and be a solution for processing low grade nickel.

Begitu juga dengan timah pada Mei USD 15.408,53 per dmt, Juni menjadi USD 16.806,27 per dmt, perubahannya 9,07 persen.

Alumunium, Mei USD 1.459,79 per dmt, Juni menjadi USD 1.564,02 per dmt, perubahannya 7,14 persen. Lalu, tembaga USD 5.233,82 per dmt menjadi USD 5.742,39 per dmt per-ubahannya 9,72 persen.

Sementara untuk emas USD 1.716,38 per Ounce menjadi USD 1.732,22 per Ounce, perubahannya 0,92 persen. Terakhir, perak pada Mei USD 16,23 per Ounce menjadi USD 17,72 per Ounce, perubahannya 9,16 persen.

“Jika dibandingkan dengan harga pada Mei 2020. Peningkatan yang cukup besar men-capai 9 persen terjadi pada komoditas Timah dan Tembaga,” ujarnya.

Tentunya, perlu diketahui bahwa setelah dihitung secara rata-rata harga mineral itu masih di bawah harga internasional yaitu 30 persen. Hal ini bertujuan untuk mendorong iklim investasi para pelaku smelter agar membangun fasilitas pengolahan dan pemurnian di Indonesia.

“Kita sedang berusaha keras untuk dilaku-kannya penegakan aturan ini baik pada tambang maupun kepada pemegang smelter,” pungkasnya.

Badan Geologi ESDM dan Trinitan Metals Uji Hilirisasi Nikel Berbiaya Rendah

Sebelumnya, Badan Geologi Kementerian Energi Sumber Daya Mineral (ESDM) meng-gandeng PT Trinitan Metals & Minerals Tbk (TMM) menguji bijih nikel kadar rendah menggunakan teknologi terkini.

Kepala Pusat Sumber Daya Mineral Batubara dan Panas Bumi (PSDMBP) Badan Geologi Bandung Iman K Sinulingga mengatakan, teknologi STAL yang dihadirkan Trinitan Metals & Minerals berpotensi memberikan nilai tambah bagi sumber daya mineral nasional dan menjadi solusi untuk peng-olahan nikel kadar rendah.

IMA-Daily Update Page 16

For information, STAL Technology is a Trinitan Metals & Minerals-based Hydrometallurgical metal processing and refining technology that is claimed to be able to process low grade nickel into first class pure nickel with competitive invest-ment and operational costs.

"I think this is an extraordinary break-through. Moreover, this is the work of the nation's children. As we know we have 9.4 billion tons of nickel resources, most of which have low levels of less than 1.7 petden. For example STAL (Technology) can process our nickel (which) is of low level, which is certainly extraordinary. We from the Ministry of ESDM are certainly very supportive," said Iman, in Jakarta, Monday (7/20/2020).

Director of PT Trinitan Metals & Minerals Tbk, Widodo Sucipto explained, in the validity test conducted later, TMM will submit the data characteristics of feed ore used in previous experiments and STAL unit experiment parameters to the team formed by the ESDM Geological Agency.

The method will then be validated using a sample of about 2 tons of low-grade laterite nickel ore that will be taken from the ESDM Geological Agency test site in Southeast Sulawesi in 2019.

Sebagai informasi, STAL Technology meru-pakan teknologi pengolahan dan pemurnian logam berbasis Hidrometalurgi milik Trinitan Metals & Minerals yang diklaim mampu mengolah nikel kadar rendah men-jadi logam nikel murni kelas satu dengan biaya investasi maupun operasional yang bersaing.

"Saya pikir ini suatu terobosan yang luar biasa. Apalagi ini karya anak bangsa. Seperti yang kita tahu kita mempunyai sumber daya nikel sebanyak 9,4 miliar ton, yang di dalamnya sebagian besar berkadar rendah kurang dari 1,7 petden. Kalau misalnya STAL (Technology) ini bisa mengolah nikel kita (yang) berkadar rendah tentu sangat luar biasa. Kami dari Kementerian ESDM tentu sangat mendukung,” kata Iman, di Jakarta, Senin (20/7/2020).

Direktur PT Trinitan Metals & Minerals Tbk, Widodo Sucipto menjelaskan, dalam uji validitas yang dilakukan nanti, TMM akan menyerahkan data karakteristik bijih umpan yang digunakan pada percobaan terdahulu dan parameter percobaan unit STAL kepada tim yang dibentuk Badan Geologi ESDM.

Metode tersebut kemudian akan divalidasi menggunakan sample bijih nikel laterit ber-kadar rendah sekitar 2 ton yang akan diambil dari lokasi uji petik Badan Geologi ESDM di Sulawesi Tenggara tahun 2019.

ESDM: This year the Government Targets 7,000 hectares of Mine

Reclamation

RECLAMATION of mining land has become one of the crucial issues that has become one of the focus of the current government.

ESDM: Tahun ini Pemerintah Targetkan Reklamasi Tambang

Seluas 7.000 Hektare

REKLAMASI lahan tambang menjadi salah satu isu krusial yang menjadi salah satu fokus pemerintah saat ini.

IMA-Daily Update Page 17

The government, in this case the Ministry of Energy and Mineral Resources (ESDM) set a target for the realization of mining land reclamation this year covering an area of 7,000 hectares. When compared with the realization of reclamation in the previous year, the target set by ESDM this year is indeed smaller. In the previous year, namely 2019, the realization of

mining land reclamation reached 8,295 ha. Of the total realization, an area of 6,545 ha is the reclamation of the central govern-ment mining permits and 1,080 ha for the reclamation of mining permits from the governor.

Acting Director of Mineral and Coal Technical and Environmental of the Ministry of ESDM Sujatmiko explained that from the total mine reclamation target of 7,000 hectares consists of reclamation of

ex-mining land from holders of KK/ PKP2B/IUP central government permit (minister) covering 6,000 ha. While the area of 1,000 ha is the reclamation target of the regional Mining Business Permit (IUP) issued by the governor.

In addition, the government, in this case the Ministry of Energy and Mineral Resources (ESDM), also planned to be able to convert ex-mining land into new renewable energy sources. Where will

later apply the concept of energy back to energy. The government currently has three types of mapped utilization, namely the development of biofuels, solar power plants or photovoltaics and for the development of biomass.

Furthermore, Sujatmiko also explained that the target set by the government in relation to the reclamation activity was based on the company's reclamation plan document data. He also explained that...

Pemerintah dalam hal ini Kementerian

Energi dan Sumber Daya Mineral (ESDM)

mematok target realisasi reklamasi lahan

tambang pada tahun ini seluas 7.000 hektar.

Jika dibandingkan dengan realisasi

reklamasi pada tahun sebelumnya, target

yang dipatok ESDM tahun ini memang lebih

kecil. Pada tahun sebelumnya yaitu tahun

2019, realisasi reklamasi lahan tambang

mencapai 8.295 ha. Dari total realisasi

tersebut, seluas 6.545 ha merupakan

reklamasi izin tambang pemerintah pusat

dan 1.080 ha untuk reklamasi izin tambang

dari gubernur.

Pelaksana Tugas Direktur Teknik dan

Lingkungan Mineral dan Batubara

Kementerian ESDM Sujatmiko menjelaskan

bahwa dari total target reklamasi tambang

seluas 7.000 hektare tersebut terdiri dari

reklamasi bekas lahan tambang dari para

pemegang izin KK/PKP2B/IUP pemerintah

pusat (menteri) seluas 6.000 ha. Sedang-

kan seluas 1.000 ha merupakan target

reklamasi dari Izin Usaha Pertambangan

(IUP) daerah yang diterbitkan gubernur.

Selain itu, pemerintah yang dalam hal ini Kementerian Energi dan Sumber Daya Mineral (ESDM) juga mencanangkan untuk dapat mengubah lahan bekas tambang menjadi lahan sumber energi baru ter-barukan. Dimana nantinya akan me -nerapkan konsep energy back to energy. Pemerintah pada saat ini memiliki tiga jenis pemanfaatan yang sudah dipetakan yaitu pengembangan biofuel, Pembangkit Listrik Tenaga Surya (PLTS) atau Photovoltaic dan untuk pengembangan biomassa.

Lebih lanjut, Sujatmiko pun menjelaskan jika target yang dipatok pemerintah terkait dnegan kegiatan reklamasi mengacu pada data dokumen rencana reklamasi per-usahaan. Dirinya pun menjelaskan bahwa...

IMA-Daily Update Page 18

He also explained that the government was quite optimistic that the realization of mining land reclamation could reach the target set could be even higher. The government is now making reclamation one of the important considerations in evaluating the extension of a company's mining permit and becoming an evaluation material every year when the company submits the RKAB. Author: Lia Ade Putri, Editor: Faris Primayudha

Dirinya pun menjelaskan bahwa pemerintah cukup optimis bahwa realisasi reklamasi lahan tambang dapat mencapai target yang dipatok bahkan dapat lebih tinggi. Pemerintah pun kini menjadikan reklamasi sebagai salah satu pertimbangan penting dalam evaluasi perpanjangan izin tambang perusahaan dan menjadi bahan evaluasi setiap tahun saat perusahaan mengajukan RKAB. Author: Lia Ade Putri, Editor: Faris Primayudha

Following Copper, Tin is Ready to Pursue Its Highest Level This Year

Finna U. Ulfah

THE PRICE of tin managed to return to the

level of US$ 17,000 per ton, getting closer to the highest level this year in line with the strengthening of copper and projected rising demand.

Based on Bloomberg data, at the close of trading on Friday (7/17/2020) the price of tin on the LME exchange parked at US$ 17,330 per ton, corrected 0.23 percent or 40 points.

Tin prices have risen 30.79 percent from their lowest level at the end of March 2020 at US$ 13,250 per ton. Meanwhile, throughout the year 2020, tin has moved to strengthen 0.9 percent.

Tin is a base metal besides copper which has succeeded in eliminating losses due to market turmoil along with Covid-19 and moving in the green zone on a year to date basis.

In fact, other basic metals suc h as aluminum, nickel and zinc are still trapped in the red zone throughout the year 2020.

Susul Tembaga, Timah Siap Kejar Level Tertingginya Tahun Ini

Finna U. Ulfah

HARGA timah berhasil kembali ke level US$17.000 per ton, semakin mendekati level tertinggi pada tahun ini seiring dengan penguatan tembaga dan proyeksi permintaan yang naik.

Berdasarkan data Bloomberg, pada penu-tupan perdagangan Jumat (17/7/2020) harga timah di bursa LME parkir di posisi US$17.330 per ton, terkoreksi 0,23 persen atau 40 poin.

Harga timah telah naik 30,79 persen dari level terendahnya pada akhir Maret 2020 di posisi US$13.250 per ton. Sementara itu, sepanjang tahun berjalan 2020 timah telah bergerak menguat 0,9 persen.

Timah menjadi logam dasar selain tembaga yang telah berhasil menghilangkan kerugiannya akibat gejolak pasar seiring dengan Covid-19 dan bergerak di zona hijau secara year to date.

Padahal, logam dasar lainnya seperti aluminium, nikel, dan seng masih ter-perangkap di zona merah sepanjang tahun berjalan 2020.

IMA-Daily Update Page 19

In addition, the price of tin is getting closer to the highest level ever achieved in January this year at the position of US$ 17,850 per ton.

International Tin Association Market Analyst James Willoughby said that tin prices in general had led to an upward track throughout July. In the past month alone, tin prices have moved 2.01 percent.

He explained that the price of tin was partly struck by the extraordinary increase in prices of copper and other base metals.

"The increase was also supported by data from China as a major consumer of metals in the world, which was released positively, although the latest data allows for a slight correction of tin prices," James said as quoted from his research publication, Monday (7/20/2020).

Similarly, Capital Futures Analyst Wahyu Laksono said that China's demand for tin had returned strongly enough during the Covid-19 pandemic. In fact, it seems that the pandemic has brought its own blessings on commodities which are the main raw material for electronic goods.

During the Covid-19 pandemic, the need for electronic goods grew in line with work-at-home policies by many companies around the world, especially China, to limit the spread of Covid-19.

China's exports of computers and related goods have climbed significantly in recent months.

In addition, the demand for tin in the world also seems to be recovering along with the increasing volume of exports from the world's largest tin producer, Indonesia. Indonesia's tin exports for the June 2020 period managed to increase 32 percent from the previous month to 5,781.6 tons.

Selain itu, harga timah pun semakin dekat dengan level tertinggi yang pernah diraih pada medio Januari tahun ini di posisi US$17.850 per ton.

Market Analyst International Tin Association James Willoughby mengatakan bahwa harga timah secara umum telah mengarah kepada jalur kenaikan sepanjang Juli. Dalam satu bulan terakhir saja, harga timah telah bergerak niak 2,01 persen.

Dia menjelaskan bahwa harga timah ikut tersambar dari kenaikan luar biasa dari harga tembaga dan logam dasar lainnya.

“Kenaikan itu juga didukung oleh data-data China sebagai konsumen utama logam di dunia, yang dirilis positif, walaupun data terbaru memungkinkan adanya koreksi sedikit dari harga timah,” ujar James seperti dikutip dari publikasi risetnya, Senin (20/7/2020).

Senada, Analis Capital Futures Wahyu Laksono mengatakan bahwa permintaan China untuk timah telah kembali dengan cukup kuat saat pandemi Covid-19. Bahkan, tampaknya pandemi itu telah membawa berkah tersendiri terhadap komoditas yang menjadi bahan baku utama barang-barang elektronik itu.

Saat pandemi Covid-19, kebutuhan akan barang-barang elektronik semakin besar seiring dengan kebijakan kerja dari rumah oleh banyak perusahaan di seluruh dunia, terutama China, untuk membatasi penye-baran Covid-19.

Ekspor China untuk komputer dan barang-barang terkait telah menanjak cukup signifikan dalam beberapa bulan terakhir.

Selain itu, permintaan timah di dunia juga tampak memulih seiring dengan meningkat-nya volume ekspor dari produsen timah terbesar dunia, Indonesia. Ekspor timah Indonesia untuk periode Juni 2020 berhasil naik 32 persen dari bulan sebelumnya menjadi sebesar 5.781,6 ton.

IMA-Daily Update Page 20

That figure has been far better compared to the volume of Indonesia's tin exports which had corrected up to 39.2 percent month to month for the period March 2020.

Meanwhile, all Indonesia's export destination countries have shown increased demand. Sales to China for the June period rose significantly by 118.16 percent to 1,866 tons compared to the previous month at 866.8 tons.

Not only that, from Singapore, Korea, and Japan also recorded an increase in sales in the June period.

"Meanwhile, the Covid-19 pandemic is actually suppressing production because tin mines are limiting operations and some are even closed down, so that all of them have consequences for the threat of a deficit," Wahyu told Bisnis on Monday (7/20/2020).

Supply Deficit

Wahyu projects that the supply deficit will occur next year so that tin will be on track to increase by the end of 2020 and 2021. Tin is also projected to outperform all other base metals, even copper.

In the long run, the actual demand for tin is also very bright. Business operators estimate demand for refined tin will increase to 100,000 tons per year. In fact, the figure is equivalent to one third of the current amount of tin production each year.

Not to mention the projections for the next 10 years that tin mining production will only increase by around 20,000 tons. Thus, the prospect of a supply deficit is in sight.

Many business actors, such as the Rio Tinto Group, said that of all tin metal will be the metal most affected by the development of new technological innovations, more than lithium, cobalt, silver, and graphite.

Angka itu telah jauh lebih baik dibandingkan dengan volume ekspor timah Indonesia yang sempat terkoreksi hingga 39,2 persen secara month to month untuk periode Maret 2020.

Adapun, semua negara tujuan ekspor Indonesia telah menunjukkan kenaikan per-mintaan. Penjualan ke China untuk periode Juni naik signifikan yaitu 118,16 persen menjadi sebesar 1.866 ton daripada bulan

sebelumnya sebesar 866,8 ton.

Tidak hanya itu, dari Singapura, Korea, dan Jepang juga mencatatkan kenaikan penjualan pada periode Juni.

“Sementara itu, pandemi Covid-19 justru menekan produksi karena tambang timah membatasi operasional dan bahkan ada yang ditutup, sehingga semua berkonsekuensi kepada ancaman defisit,” ujar Wahyu kepada Bisnis, Senin (20/7/2020).

Defisit Pasokan

Wahyu memproyeksi defisit pasokan akan terjadi pada tahun depan sehingga timah akan berada di jalur kenaikan pada akhir 2020 dan 2021. Timah pun diproyeksi akan mengungguli semua kinerja logam dasar lainnya, tembaga sekalipun.

Dalam jangka panjang, sesungguhnya permin-taan timah juga sangat cerah. Pelaku usaha memperkirakan permintaan timah rafinasi naik hingga 100.000 ton per tahun. Padahal, angka itu setara dengan sepertiga dari jumlah produksi timah tiap tahunnya saat ini.

Belum lagi dengan proyeksi 10 tahun ke depan bahwa produksi tambang timah hanya akan meningkat sekitar 20.000 ton. Dengan demikian, prospek defisit pasokan berada di depan mata.

Banyak pelaku usaha, seperti Rio Tinto Group, mengatakan bahwa dari semua logam timah akan menjadi logam yang paling terkena dampak dari perkembangan inovasi teknologi baru, lebih dari lithium, kobalt, perak, dan grafit.

IMA-Daily Update Page 21

Not to mention, batteries in electric vehicles that also need tin so that the sector is expected to grow substantially over the next decade.

"In fact, in recent months, there have been reports from Chinese universities that explain how tin can increase the output of solar power tools, and other studies that show how tin can improve the performance of lithium-ion batteries and water treatment technology," Wahyu said.

The price of tin has the potential to continue to strengthen to the level of US$ 18,000 per ton in the short term. If the level is successfully passed by tin, then the metal has the potential to enter the consolidation space as happened in 2016-2019, in the range of US$ 18,000 per ton to US$ 22,000 per ton.

In more detail, in the third quarter tin prices are believed to move in the range of US$ 16,000 per ton to US$ 19,000 per ton, while during the second half of this year it moved in the range of US$ 16,000 per ton to US$ 21,000 per ton. Editor: Aprianto Cahyo Nugroho

Belum lagi, baterai dalam kendaraan listrik yang juga membutuhkan timah sehingga sektor itu diperkirakan akan tumbuh secara substansial selama dekade berikutnya.

“Bahkan, dalam beberapa bulan terakhir, telah ada laporan dari universitas China yang menjelaskan bagaimana timah dapat me-ningkatkan output alat tenaga surya, dan penelitian lain yang menunjukkan bagaimana timah dapat meningkatkan kinerja baterai lithium-ion dan teknologi pengolahan air,” papar Wahyu.

Harga timah memiliki potensi untuk me-lanjutkan penguatannya ke level US$18.000 per ton dalam jangka pendek. Jika level tersebut berhasil dilewati oleh timah, maka logam itu berpotensi masuk ruang konsoli-dasi seperti yang terjadi sepanjang 2016-2019 yaitu di kisaran US$18.000 per ton hingga US$22.000 per ton.

Lebih rinci, pada kuartal ketiga harga timah diyakini bergerak di kisaran US$16.000 per ton hingga US$19.000 per ton, sedangkan sepanjang paruh kedua tahun ini bergerak di kisaran US$16.000 per ton hingga US$21.000 per ton. Editor : Aprianto Cahyo Nugroho

Down for 3 Days in a Row, Here's the Coal Fate Tirta Citradi, CNBC Indonesia

NEWCASTLE's benchmark thermal coal price closed lower again in yesterday's trade. In three consecutive trading days, coal prices are always closed with a correction.

Monday (7/20/2020) coal prices for busy contracts fell 1.1% to US$ 53.9/ton. In the period 16-20 July 2020, coal prices have corrected 2.88%.

Turun 3 Hari Beruntun, Begini Nasib Batu Bara

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal acuan Newcastle

kembali ditutup melemah pada perdagangan kemarin. Dalam tiga hari perdagangan beruntun, harga batu bara selalu ditutup dengan koreksi.

Senin (20/7/2020) harga batu bara untuk kontrak yang ramai diperdagangkan turun 1,1% ke US$ 53,9/ton. Pada periode 16 - 20 Juli 2020, harga batu bara telah terkoreksi 2,88%.

IMA-Daily Update Page 22

Until now the market is still waiting for clarity about China's decision to loosen its import policy because the price of domestic coal is too expensive and has significantly eroded the margins of utility companies.

On the other hand pressure continues to arrive from various directions such as cases of Coronavirus Disease 2019 (Covid-19) infection which continues to increase globally, especially in the United States (US) and India.

India as the second largest coal-consuming country after China again reported an increase in cases of Covid-19 infection. Now India has become the country with the third highest number of cases after the United States (US) and Brazil.

The high surge in cases in India came after the country with a population of more than 1.3 billion was loosened in May. Lockdown in various states planned to end on July 31.

But with this significant increase in cases, many regions actually tightened restrictions. Hampered mobility makes the Indian economy threatened to experience a deep contraction.

Citing Argus Media, analysts expect the Indian economy to contract by -7.5%. Another projection made by the Inter-national Monetary Fund (IMF) predicts the Indian economy will be minus 4.5% this year.

This contraction in the Indian economy is clearly a threat to import demand for crude oil, liquefied natural gas/LNG, coal and various other commodities.

Turning to Europe, coal consumption still tends to be seasonally low for the rest of the year, unless there is a significant recovery in energy demand or gas prices. High efficiency German coal-fired power plants are not competitive with gas-fired plants.

Sampai saat ini pasar masih menunggu kejelasan seputar keputusan China untuk melonggarkan kebijakan impornya lantaran harga batu bara domestik sudah terlampau mahal dan menggerus margin perusahaan utilitas secara signifikan.

Di sisi lain tekanan terus berdatangan dari berbagai arah seperti kasus infeksi Corona-virus Disease 2019 (Covid-19) yang terus bertambah secara global terutama di Amerika Serikat (AS) dan India.

India sebagai negara konsumen batu bara terbesar kedua setelah China kembali melaporkan adanya kenaikan kasus infeksi Covid-19. Kini India telah menjadi negara dengan jumlah kasus terbanyak ketiga setelah Amerika Serikat (AS) dan Brazil.

Lonjakan kasus yang tinggi di India terjadi setelah negara dengan penduduk mencapai lebih dari 1,3 miliar itu melonggarkan lock-down pada Mei lalu. Lockdown di berbagai negara bagian rencananya akan berakhir pada 31 Juli.

Namun dengan kenaikan kasus yang signifikan ini, banyak wilayah yang justru mengetatkan pembatasan. Mobilitas yang terhambat membuat perekonomian India terancam mengalami kontraksi yang dalam.

Mengutip Argus Media, analis memperkirakan ekonomi India bakal terkontraksi hingga -7,5%. Proyeksi lain yang dilakukan oleh Dana Moneter Internasional (IMF) memprediksi ekonomi India bakal minus 4,5% tahun ini.

Kontraksi pada perekonomian India ini jelas menjadi ancaman bagi permintaan impor untuk minyak mentah, gas alam cair/LNG, batu bara dan berbagai komoditas yang lainnya.

Beralih ke Eropa, konsumsi batu bara masih cenderung rendah secara musiman untuk sisa tahun ini, kecuali terjadi pemulihan per-mintaan energi atau harga gas yang signifikan. Efisiensi tinggi pembangkit listrik tenaga batu bara Jerman tidak kompetitif dengan pem-bangkit berbahan bakar gas.

IMA-Daily Update Page 23

Based on the recent EU gas and coal prices, the transition of coal fuel to gas will be a limiting factor for coal demand in the medium term.

Weaker imports in 2020 have caused coal stockpiles in the ARA region to fall by around 1 million tons from the highest level of more than 7 million tons in July 2019, while low prices prevented suppliers

from Russia, Colombia and the US from exporting to the region.

EU imports from Russia fell 9.3 million tons in January-May to 13.1 million tons, with US, Colombia and Indonesia supplies falling by 1.5 million tons, 2.2 million tons, and 2.4 million tons. Imports to the Netherlands accounted for 7.3 million tons or 35% of the decline, with Spain contributing 3.9 million tons and Germany

2.8 million tons.

This weakening demand has made coal prices very low and made global coal producers suffer. These producers eventually have to choose to cut production to boost prices. CNBC INDONESIA

RESEARCH TEAM (twg/twg)

Berdasarkan harga gas dan batu bara Uni Eropa baru-baru ini, peralihan bahan bakar batu bara ke gas akan menjadi faktor pembatas untuk permintaan batubara dalam jangka menengah.

Impor yang lebih lemah pada tahun 2020 telah membuat stok batu bara di wilayah ARA turun sekitar 1 juta ton dari level tertinggi lebih dari 7 juta ton pada Juli 2019, sementara harga yang rendah menghalangi pemasok dari Rusia, Kolombia, dan AS untuk mengekspor ke wilayah tersebut.

Impor UE dari Rusia turun 9,3 juta ton pada tahun Januari-Mei menjadi 13,1 juta ton, dengan pasokan AS, Kolombia, dan Indonesia turun masing-masing 1,5 juta ton, 2,2 juta ton, dan 2,4 juta ton. Impor ke Belanda menyumbang 7,3 juta ton atau 35% dari penurunan, dengan Spanyol menyumbang 3,9 juta ton dan Jerman 2,8 juta ton.

Pelemahan permintaan ini membuat harga batu bara menjadi sangat rendah dan membuat produsen batu bara global menderita. Para produsen ini pada akhirnya harus memilih memangkas produksinya untuk mendongkrak harga. TIM RISET CNBC

INDONESIA (twg/twg)

Indonesia's H1 output of nickel products rises -official

MAJOR nickel miner Indonesia produced 666,696 tonnes of ferronickel in January-June period, Yunus Saefulhak, director of mineral at Energy and Mineral Resources Ministry said on Monday.

Indonesia also produced 418,955 tonnes of nickel pig iron (NPI) in January-June, Saefulhak said. Both ferronickel and NPI are products made from nickel ore that are used in making stainless steel.

In comparison, in January-June last year, Indonesia produced 517,261 tonnes of ferronickel and 364,451 tonnes of NPI, according to ministry website.

IMA-Daily Update Page 24

Indonesia exported 517,077 tonnes of ferronickel and 136,192 tonnes of NPI in the first half this year, he added, while around 177,462 tonnes of ferronickel and 175,700 tonnes of NPI were sold to domestic industries.

(Reporting by Wilda Asmarini Additional reporting by Bernadette Christina Munthe Writing by Fransiska Nangoy Editing by Louise Heavens)

BHP meets production targets despite Covid-19 By: Esmarie Iannucci, Creamer Media Senior Deputy Editor: Australasia

MAJOR BHP on Tuesday announced that it had met its full year production targets for iron-ore, metallurgical coal and its operated copper and energy coal assets, despite impacts from the Covid-19 pandemic.

“BHP safely delivered a strong operational performance in the 2020 financial year, achieving record production in a number of our operations and an improved cost base. This performance, achieved in the face of Covid-19 and other challenges, is a result of the outstanding effort of our people and the support of our communities, governments, customers and suppliers,” said BHP CEO Mike Henry.

Iron-ore production from the Pilbara reached record highs in the full year, wit BHP producing 248-million tonnes in the full year ended June, up by 4% on the previous corresponding period, while quarterly production reached 67-million tonnes, up 11% on the March quarter.

The miner noted that the higher production volumes reflected record quarterly production at Mining Area C and at Yandi, as well as strong supply chain performance coupled with wet weather impacts in the previous quarter.

Petroleum production for the full year was down 10% to 109-million barrels of oil equivalent, but up 5% in the June quarter, to 26-million barrels of oil equivalent.

Petroleum production for the full year was marginally below guidance as a result of lower than expected gas demands due to the impacts of the Covid-19 pandemic. BHP reported that increased production at Bass Strait, due to higher seasonal demand, partially offset the lower volumes at the Atlantis operation, due to planned maintenance and preparation work for Phase 3 project commissioning, and lower demand in Trinidad and Tobago.

Copper production for the full year was up 2% on the previous corresponding period, to 1.72-million tonnes, while quarterly production was down 3% on the March quarter, to 414 000 t.

Higher production at the Escondida operation, in Chile, and the Olympic Dam operation, in South Australia, was offset by lower production at the Antamina operation, in Peru, where operations were temporarily suspended owing to the pandemic.

Meanwhile, BHP reported that metallurgical coal production for the full year was down 3%, to 41-million tonnes, but up by 26% in the quarter to 12-million tonnes, while energy coal production in the full year was down 16% to 23-million tonnes, and down 2% in the June quarter to 6-million tonnes.

IMA-Daily Update Page 25

Nickel production for the full year also declined by 8%, to 80 000 t, but increased by 14% in the June quarter, to 24 000 t, with higher volumes reported following the ramp back up to full capacity at the Kwinana refinery and the Kalgoorlie smelter, in Western Australia, during the prior quarter.

“Our diversified portfolio of high quality assets, together with our strong balance sheet, make us resilient to the ongoing uncertainty in the markets for our commodities,” said Henry.

“We expect to continue to generate solid cash flows through the cycle and we remain confident in the outlook for demand for our products over the medium- to long-term. We continue to focus on becoming even safer, delivering exceptional operational performance, maintaining disciplined capital allocation, creating and securing more options in future facing commodities, and building social value.

“We have learned new ways of working, both internally and with others, through the Covid-19 pandemic. We will seek to embed these in a way that helps to reinforce these priorities,” he added.

Vietnam coal consumption growth among world’s fastest By Dat Nguyen

VIETNAM posted the highest growth in coal consumption among the top 10 global consumers last year, a report found.

The country consumed 2.07 exajoules of electricity from coal last year, up 30.2 percent year-on-year, according to the "BP Statistical Review of World Energy 2020" report by energy firm BP.

This makes Vietnam the 10th largest consumer of coal in the world behind China, India and the U.S. at the top.

Vietnam’s coal consumption has been rising each year since 2012. The growth rate of 30.2 percent is over two times the average 12.3 percent annually recorded in the 2008-2018 period, the report stated.

Among ASEAN countries, Vietnam ranks second to Indonesian consumption, it added.

Vietnam’s coal imports surged to a record high in the first half of the year, showing its rising reliance on coal-fired power plants despite the government trying to boost renewables and liquefied natural gas as alternative power sources.

The country this month received its first coal shipment from the U.S., paving the way for further imports amid rising demand to produce electricity.

In a plan it is drafting, the Ministry of Industry and Trade has ruled out building coal-fired power plants after 2030, when it will prioritize renewables and liquefied natural gas.

IMA-Daily Update Page 26

Jiangxi Copper sells shares in First Quantum Northern Miner Staff

JIANGXI Copper sold 1.2 million shares in First Quantum Minerals (TSX: FM; LSE: FQM) last

week according to SEDI filings, BMO reports.

The Chinese company bought its equity stake in the miner in December 2019.

BMO analyst Jackie Przybylowski said the move did not come as a surprise.

“We have seen the relationship between First Quantum and Jiangxi strained since late last year,” the analyst said in a research note to clients.

“On the Q1/2020 earnings call Tristan Pascall, Group Director Strategy, referred to Jiangxi as a “donkey” in context of negotiations between the two groups, which suggested to us that the relationship had not improved.”

The mining analyst noted that First Quantum’s partnership with Jiangxi “was initially intended to fund an expansion at Kansanshi while continuing to allocate operating cash flows towards debt repayment.

However, the actual necessity of a smelter expansion and the timing of when this would be required is unclear. Management had promised to put out a technical report on the smelter expansion in March, but that has been delayed until tentatively sometime later this year.”

Przybylowski said one consequence of Jiangxi’s move is a “lower probability that First Quantum is taken out” and “with Jiangxi no longer involved, the ‘takeout premium’ that can sometimes boost the First Quantum share price should be lowered.”

Nevertheless, she is maintaining her ‘outperform’ rating on the company and her one-year price target of C$12.50 per share. (At presstime in Toronto First Quantum’s shares were trading at C$13.18 within a 52-week range of C$4.72 and C$14.12.)

In a worst-case scenario in which First Quantum is unable to finance an expansion of its smelter, she said, production growth from Cobre Panama “would serve to offset the declines in Zambia.”

Cobre Panama, which began production in 2019, is one of the largest new copper mines globally. The operation, about 120 km west of Panama City, includes two open-pit mines, a processing facility, two 150 megawatt power stations and a port.

In the first quarter of the year, First Quantum reported consolidated copper production of 195,285 tonnes, a 43% year-on-year increase, including a contribution of 56,240 tonnes from Cobre Panama.

Its Kansanshi smelter in Zambia processed 329,946 dry tonnes of copper concentrate, produced 80,280 tonnes of copper anode and 315,000 tonnes of sulphuric acid.

IMA-Daily Update Page 27

S&P: U.S. coal exports down 29% through May 2020 compared to 2019

THE U.S. coal sector is taking another beating as exports to two key markets, Asia and Europe, plunged in the first five months of this year.

U.S. exports between January to May totaled 27.6 million tonnes, falling 29.0% from the amount shipped over the same months last year, S&P Global Market Intelligence data show. Of the total, the U.S. shipped 12.4 million tonnes to countries in Asia, down 11.5%, and 8.9 million tonnes to European countries, which also fell 36.3% from the prior year.

About 80.2% of the coal exported for steelmaking from the U.S. during the first quarter went to countries in Asia and Europe, data from the U.S. Energy Information Administration shows. However, global steel production has been down about 5% this year through May with steep declines in North America, the European Union and South America, Moody’s analysts add.

Among the 20 largest destinations for U.S. coal exports year-to-date, 15 showed year-over-year declines. Shipments to India, where the U.S. shipped the most tonnes through May, fell by 14.0% from the same period a year ago. Meanwhile, other countries such as South Korea, China, Turkey, Singapore, and the Dominican Republic saw year-on-year increases.

The downturn in U.S. coal exports could stretch through the end of 2020. In its most recent “Short-Term Energy Outlook” released in early July, the EIA projected that coal exports will fall 32% to 63 million tons this year before recovering and growing by 7% in 2021.

U.S. metallurgical coal exports for the calendar year 2020, for instance, are expected to drop by about 10 million tonnes from 2019 levels, according to Jim Truman, Wood Mackenzie’s director for global metallurgical coal markets. “Reductions shouldn’t be too surprising, as the U.S. is the classic swing supplier to the seaborne metallurgical coal markets and overall trade is down, as well as prices,” Truman told S&P Global Market Intelligence in a July 14 email, adding that China and India will be “the most important drivers to the recovery of total seaborne trade.” [Robert Vergara and Stephanie Tsao]

South32 drives up Australia Manganese ore output Nickolas Zakharia

SOUTH32 has delivered record production at the Australia Manganese operation in the 2020 financial year, pushing it to above average sales in the June quarter.

Its production of saleable ore increased by 20 per cent in the June quarter due to a ramp up in shipments that were previously stalled by COVID-19.

IMA-Daily Update Page 28

The company produced 854,000 wet metric tonnes of Australia Manganese ore in the June quarter and sold 928,000 wet metric tonnes.

South32 took advantage of favourable market conditions to ramp up its June quarter sales, and was selling its Australia Manganese product at an average 7 per cent discount to the high-grade, 44 per cent manganese lump ore index in the 2020 financial year.

Overall Australia Manganese ore production for the 2020 financial year was up by 4 per cent, from 3.35 million to 3.47 million wet metric tonnes, while its ore sales remained the same.

South32 has a 60 per cent interest in its Australia Manganese operations, which include the Groote Eylandt Mining Company operation (GEMCO) in the Gulf of Carpentaria, Queensland and Tasmanian Electro Metallurgical Company (TEMCO) operation in Tasmania.

However, both South32’s Australia Manganese alloy production and sales took a nosedive, dropping by 29 per cent and 23 per cent in the 2020 financial year, respectively, due to one of the company’s furnaces at TEMCO remaining offline.

South32 chief executive Graham Kerr said the company had seen strong demand during COVID-19’s ongoing global impact.

“Despite the health crisis, we delivered a strong operating result, highlighted by annual production records at Brazil Alumina, Hillside Aluminium and Australia Manganese ore,” he said.

“We have continued to see good demand for our products, with sales exceeding production at the majority of our operations.

“With uncertainty remaining in global markets we continue to manage our financial position to ensure we retain the right balance of flexibility, efficiency and prudence.

“Looking forward we remain focussed on reducing controllable costs, managing counterparty and supply chain risk and optimising working capital to ensure the business remains resilient during a potentially extended period of volatility and lower commodity prices.”

South32 also noted that its Cannington silver and lead mine in Queensland exceeded its 2020 financial year guidance by 8 per cent.

South32 also returned to a three long wall configuration at Illwarra Metallurgical Coal in New South Wales in late April as the company aims to enhance its long-term value.

Decline in Coal Concentrate Production

IRAN’s two major coal producers had a total output of 176,760 tons of coal concentrates during the first quarter of the current fiscal year (March 20-June 20), the Iranian Mines and Mining Industries Development and Renovation Organization's latest data show.

The figure indicates a 3.6% decline compared with the similar period of last year.

IMA-Daily Update Page 29

According to IMIDRO, Tabas Parvadeh Coal Company and Central Alborz Coal Company extracted a total of 396,626 tons of coal during the period under review, registering a 16.3% year-on-year decrease.

The two major giants produced a total of 664,568 tons of coal concentrates in the last Iranian year that ended on March 19, 2020, registering a 9.22% decline compared to the year before.

Tabas Parvadeh Coal Company accounted for 567,535 tons of the total output and Central Alborz Coal Company for the remaining 97,033 tons.

They also extracted a total of 1.58 million tons of coal during the year under review to register a 9.37% decrease year-on-year.

Tabas Parvadeh accounted for 1.46 million tons of the total figure while Central Alborz accounted for 124,720 tons. The two companies extracted 116,361 tons of coal during the month.

Iranian coal mines, with about 1.15 billion tons of combined reserves, have the capacity to produce up to 3 million tons of coal concentrate annually.

US thermal coal production, demand on an upswing, some relief seen for producers by year-end: Platts Analytics

Author: Olivia Kalb, Editor: Keiron Greenhalgh

FOLLOWING shutdowns driven by the coronavirus pandemic in March and April, US thermal coal production and demand began to increase in June, providing optimism over long-term relief for coal producers, according to S&P Global Platts Analytics.

US production increased in June for a second consecutive month, according to Platts Analytics. "However, as a number of states implement fresh lockdowns due to the coronavirus pandemic, we are cautious production will continue to improve in the short-term," it said in a July 20 report.

Platts Analytics increased its US domestic coal output forecast by 83 million st to 620 million st for 2020 as production has started to recover from the lows of April and May. "It is estimated all basins are showing a recovery in production in June," according Platts Analytics' International Forecast, published earlier in July.

As the decline in domestic coal demand from utilities narrows, dropping to 15% down year on year in June compared with 30% in May, prices will rise.

"We believe US coal producers are currently producing on operating costs alone at the moment, meaning producer margins are very thin, or in some cases in the [Northern Appalachian] basin, are in negative territory," Platts Analytics said in its forecast. "We believe this is unsustainable for coal producers and, as coal demand from utilities returns, this will help support an increase in coal prices."

IMA-Daily Update Page 30

Additionally, utilities are believed to have deferred deliveries in the second quarter, which will have to made up for in the third and fourth quarters as a number of them are annual supply agreements.

Currently, however, the increase in production has impacted stockpiles, boosting inventories alongside lower coal burn in power generation. According to the report, stockpiles were an estimated 153 million st as of June 18, up 48 million st year on year.

That said, by the end of the year, Platts Analytics projects a return to near pre-pandemic load trends, calling for a 20% year-on-year increase in coal-fired generation, followed by further growth in the first quarter of 2021," the forecast said.