Daily News Update Page 1

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Industrial recovery in East Asia boosted November HBA to US$ 55.71 per ton Pemulihan Industri di Asia Timur dongkrak HBA November ke US$ 55,71 per ton Until the third quarter of 2020, Adaro's coal production decreased by 7% Hingga Kuartal III 2020 Produksi Batu Bara Adaro Turun 7% BUMI's Subsidiary Receives Business License Extension for 10 Years Anak Usaha BUMI Dapat Perpanjangan Izin Usaha 10 Tahun 9 months loss, PT Timah believes it will be profitable at the end of the year Rugi 9 Bulan, PT Timah Pede di Akhir Tahun Bisa Untung The benchmark coal price (HBA) rose for 2 consecutive months, APBI: This is a positive sentiment Harga batubara acuan (HBA) naik 2 bulan beruntun, APBI: Ini sentimen positif This is the Challenge of Coal Entrepreneurs in the Era of Environmentally Friendly Energy Transition Ini Tantangan Pengusaha Batu Bara di Era Transisi Energi Ramah Lingkungan Officially Changing to IUPK, Arutmin Can Mine Coal Until 2040 Resmi Berubah Jadi IUPK, Arutmin Bisa Menambang Batu Bara Hingga 2040 Mining Industry Often Obstructed in Regions, What Should Government Do? Industri Tambang Sering Terhambat di Daerah, Pemerintah Harus Apa? The energy transition will make Indonesia's coal exports shrink Transisi energi bakal bikin ekspor batu bara RI menyusut Great! Coal Price On Fire, Reached US$ 61/Ton Top! Harga Batu Bara On Fire, Tembus US$ 61/ton

Kontan Dunia Energi Bisnis CNBC Indonesia Kontan Liputan6 Dunia Energi DetikFinance Kabar Bisnis CNBC Indonesia

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Daily News Update Page 2

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China's Lygend pushes back Indonesia nickel project to March 2021 Copper trading volumes rebound as speculators return Asia’s retreat from coal power gathers momentum China targets 20% share of new energy vehicle sales by 2025 Lynas ready for Mt Weld rare earth concentrate boost following dryer delivery Coal India’s e-auction sales nearly triple in October as demand rises Analysis: Australian met coal values collapse amid Chinese import halt

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Daily News Update Page 3

Industrial recovery in East Asia boosted November HBA to

US$55.71 per ton Reporter: Ridwan Nanda Mulyana | Editor:

Yudho Winarto

NOVEMBER 2020 Reference Coal Prices

(HBA) increased 9.23% compared to the

October 2020 HBA which was set at US$ 51 per ton. The Ministry of Energy and

Mineral Resources (MEMR) through the Directorate General of Mineral and Coal set

the November HBA at US$ 55.71 per ton.

The Head of the Communication Bureau, Public Information Services and

Cooperation (KLIK) of the Ministry of EMR, Agung Pribadi, said that the signal of

increasing coal market demand also boosted the increase in HBA. Mainly driven

by a recovery in demand from East Asia.

"Positive signals of (coal) market demand helped boost the HBA increase in November. Not to mention the increase in Chinese demand due to China's high domestic coal prices rather than import prices," Agung said in a written statement, Wednesday (4/11).

Agung added that the recovery of industries in Japan and South Korea also influenced the increase in global coal demand.

The increase in demand for coal in several countries caused an increase in the average monthly index for the compiler of the HBA, namely the Indonesia Coal Index (ICI), the Newcastle Export Index (NEX), the Globalcoal Newcastle Index (GCNC), and the Platts 5900.

Pemulihan Industri di Asia Timur dongkrak HBA November

ke US$55,71 per ton Reporter: Ridwan Nanda Mulyana | Editor:

Yudho Winarto

HARGA Batubara Acuan (HBA) November

2020 mengalami kenaikan 9,23% diban-dingankan dengan HBA Oktober 2020 yang ditetapkan US$ 51 per ton. Kementerian Energi dan Sumber Daya Mineral (ESDM) melalui Direktorat Jenderal Mineral dan Batubara menetapkan HBA November sebesar US$ 55,71 per ton.

Kepala Biro Komunikasi, Layanan Infor-masi Publik dan Kerja Sama (KLIK) Kemen-terian ESDM Agung Pribadi mengatakan, sinyalemen peningkatan permintaan pasar batubara ikut mendongkrak kenaikan HBA. Terutama didorong dari pemulihan per-mintaan dari Asia Timur.

"Sinyalemen positif atas permintaan pasar (batubara) ikut mendongkrak kenaikan HBA di bulan November. Belum lagi me-ningkatnya permintaan Tiongkok karena tingginya harga batubara domestik China ketimbang harga impor," kata Agung lewat keterangan tertulis, Rabu (4/11).

Agung menambahkan pulihnya industri di

Jepang dan Korea Selatan turut me-mengaruhi peningkatan permintaan batu-

bara global.

Naiknya permintaan batubara di beberapa negara menyebabkan naiknya rata-rata

indeks bulanan penyusun HBA, yakni Indonesia Coal Index (ICI), Newcastle

Export Index (NEX), Globalcoal Newcastle Index (GCNC), dan Platts 5900.

Daily News Update Page 4

Since Covid-19 was declared a global pandemic, the HBA movement has fluctuated. HBA had strengthened by 0.28% to US$ 67.08 per ton in March 2020 compared to February 2020 which was pegged at US$ 66.89 per ton.

Then, the HBA continued to weaken to US$ 65.77 per ton in April and US$ 61.11 per ton in May. Furthermore, in June 2020, the HBA fell to US$ 52.98 per ton, July US$ 52.16 per ton, and August US$ 50.34 per ton.

After falling again in September to US$ 49.42 per ton, the HBA strengthened again in October and November 2020.

Later, the reference price of US$ 55.71 per ton will be used directly in the sale and purchase of coal commodities (spot) during November 2020 at the point of delivery of free on board sales aboard a carrier vessel (FOB Vessel).

Semenjak Covid-19 ditetapkan sebagai pandemi global, pergerakan HBA meng-alami fluktuasi. HBA sempat menguat sebesar 0,28% ke angka US$ 67,08 per ton pada Maret 2020 dibandingkan Februari 2020 yang dipatok US$ 66,89 per ton.

Kemudian, HBA terus mengalami pele-mahan ke angka US$ 65,77 per ton pada April dan US$ 61,11 per ton pada Mei. Selanjutnya, pada Juni 2020, HBA turun ke angka US$ 52,98 per ton, Juli US$ 52,16 per ton, dan Agustus US$ 50,34 per ton.

Sempat turun lagi di bulan September menjadi US$ 49,42 per ton, HBA kembali menguat di bulan Oktober dan November 2020.

Nantinya, harga acuan sebesar US$ 55,71 per ton ini akan digunakan secara langsung dalam jual beli komoditas batubara (spot) selama bulan November 2020 pada titik serah penjualan secara Free on Board di atas kapal pengangkut (FOB Vessel).

Until the third quarter of 2020, Adaro's coal production

decreased by 7% Rio Indrawan

PT ADARO Energy Tbk (ADRO)'s coal produc-

tion as of September 2020 was recorded at 41.10 million tons or a 7% decrease compared to the same period in 2019 of 44.13 million tons. Sales volume also decreased by 9% to 40.76 million tons compared to the nine months of 2019 of 44.66 million tons.

Garibaldi Thohir, President Director and Chief Executive Officer (CEO) of Adaro, said that Adaro Energy's sales portfolio for nine months 2020 was dominated by E4700 and E4900 products, thanks to a solid demand for these types of coal.

Hingga Kuartal III 2020 Produksi Batu Bara Adaro Turun

7% Rio Indrawan

PRODUKSI batu bara PT Adaro Energy Tbk

(ADRO) hingga September 2020 tercatat 41,10 juta ton atau turun 7% dibanding periode yang sama 2019 sebesar 44,13 juta ton. Volume penjualan juga turun 9% menjadi 40,76 juta ton dibanding periode sembilan bulan 2019 sebesar 44,66 juta ton.

Garibaldi Thohir Presiden Direktur dan Chief Executive Officer (CEO) Adaro, mengungkap-kan portofolio penjualan Adaro Energy pada sembilan bulan 2020 didominasi produk E4700 dan E4900, berkat adanya permintaan yang solid untuk batu bara jenis-jenis tersebut.

Daily News Update Page 5

"The Southeast Asian market covers 48 percent of sales during the past nine years, with Indonesia and Malaysia covering the largest portion," said Garibaldi in a company report, Tuesday (3/11).

Adaro's next large coal market comes from East Asia with 24%, India and China with 13% each and other coal markets at 1%, such as New Zealand, Pakistan and several European countries.

According to Garibaldi, demand for coal, both metallurgical and thermal, is still depressed by the difficulty of economic recovery in the region because the severity and control of the COVID-19 pandemic is not congruent.

"The tightening of import quota restrictions by China and the slowdown that occurred due to the rainy season in India started earlier, pushed down demand for seaborne thermal coal on a y-o-y basis in the third quarter of 2020," he said.

China said the man who is familiar with Boy has implemented import quotas throughout this quarter, even though there is a significant arbitrage between domestic prices and import prices. As winter approaches, it remains unclear whether China will relax its quota restrictions which could allow for an increase in imported coal in the market. Imports from Japan and South Korea also weakened this quarter due to limited growth in electricity demand caused by the economic downturn.

"On the other hand, demand from Southeast Asia, especially Vietnam, strengthened in the first months of the third quarter of 2020, while other Southeast Asian countries were increasingly activating economic activity. Even though there was a year-on-year decline, there are signs of rebalancing in the third quarter of this year due to reduced supply,” said Garibaldi.

“Pasar Asia Tenggara meliputi 48% pen-jualan sepanjang sembilan tahun ini, dimana Indonesia dan Malaysia meliputi porsi yang terbesar,” kata Garibaldi dalam laporan perusahaan, Selasa (3/11).

Pasar besar batu bara Adaro berikutnya berasal dari Asia Timur sebanyak 24% lalu India dan China masing-masing 13% dan pasar batu bara lainnya sebanyak 1% seperti Selandia Baru, Pakistas dan beberapa negara Eropa.

Menurut Garibaldi, permintaan batu bara, baik metalurgi maupun termal masih ter-tekan oleh sulitnya pemulihan ekonomi di wilayah karena tingkat keparahan maupun penanggulangan pandemi COVID-19 tidak kongruen.

“Pengetatan pembatasan kuota impor oleh China dan perlambatan yang terjadi karena musim hujan di India mulai lebih awal mendorong pelemahan permintaan terhadap batu bara termal seaborne secara y-o-y di kuartal III 2020,” kata dia.

China kata pria yang akrab disama Boy itu menerapkan kuota impor di sepanjang kuartal ini walaupun terdapat arbitrase yang signifikan antara harga domestik dan harga impor. Mendekati musim dingin, masih belum tampak jelas apakah China akan melonggarkan pembatasan kuotanya yang dapat memungkinkan peningkatan batu bara impor di pasar. Impor dari Jepang dan Korea Selatan di kuartal ini juga melemah karena terbatasnya pertumbuhan permintaan listrik yang diakibatkan oleh penurunan ekonomi.

“Di sisi lain, permintaan dari Asia Tenggara, terutama Vietnam, menguat di bulan-bulan pertama kuartal III 2020, sementara negara Asia Tenggara lainnya semakin mengaktifkan aktivitas ekonomi. Walaupun terjadi penurunan secara year on year , mulai tampak tanda-tanda rebalancing pada kuartal III tahun ini yang terjadi berkat pengurangan suplai,” kata Garibaldi.

Daily News Update Page 6

He added that the metallurgical coal

market is more affected by Chinese

demand than the reduction in supply. The

onset of the pandemic in China made the

economy actually start moving, especially

for the rough steel industry.

At a time when steel production was high,

buyers from China were still seeking

volume from Australia to support

production despite China's tightening of

import bans and queues of metallurgical

coal ships at ports. On the other hand,

demand for metallurgical coal in other

steel producing countries is still weak.

Downstream demand in Japan and South

Korea was low, with crude steel

production dropping 21% in August and

2% year on year for each country.

“The rainy season in India in July and

August also hampers construction

activities and steel production, thus

encouraging a reduction in metallurgical

coal imports. However, purchasing activity

in India started to increase in September

for consumption after the rainy season,”

said Garibaldi. (RI)

Dia menambahkan untuk pasar batu bara

metalurgi lebih terpengaruh permintaan

China dibanding dengan pengurangan

suplai. Mulai meredanya pandemi di China

membuat ekonomi sebenarnya mulai ber-

gerak terutama untuk industri baja kasar.

Pada saat produksi bajanya tinggi, para

pembeli dari China masih mencari volume

dari Australia untuk menopang produksi

walaupun ada pengetatan larangan impor

oleh China dan antrian kapal batu bara

metalurgi di pelabuhan-pelabuhan. Di sisi

lain, permintaan batu bara metalurgi di

negara produsen baja lainnya masih lemah.

Permintaan hilir di Jepang dan Korea

Selatan rendah, dengan penurunan

produksi baja kasar Agustus 21% dan 2%

year on year untuk masing-masing negara.

“Musim hujan di India pada bulan Juli dan

Agustus juga menghambat aktivitas

konstruksi dan produksi baja, sehingga

mendorong pengurangan impor batu bara

metalurgi. Namun, aktivitas pembelian di

India mulai meningkat di bulan September

untuk konsumsi setelah musim hujan,”

kata Garibaldi. (RI)

BUMI's Subsidiary Receives Business License Extension for

10 Years Finna U. Ulfah

PT BUMI Resources Tbk's subsidiary, PT

Arutmin Indonesia, has received the first

extension of the Coal Mining Exploitation Work Agreement (PKP2B) in the form of a

Special Mining Business License or IUPK.

Anak Usaha BUMI Dapat Perpanjangan Izin Usaha 10

Tahun Finna U. Ulfah

ENTITAS anak usaha PT Bumi Resources

Tbk., PT Arutmin Indonesia, telah men-dapatkan perpanjangan pertama per-janjian Karya Pengusahaan Pertambangan Batubara (PKP2B) dalam bentuk Izin Usaha Pertambangan Khusus atau IUPK.

Daily News Update Page 7

This was decided by Decree of the Minister of Energy and Mineral Resources of the Republic of Indonesia No. 221K/33/MEM/ 2020 concerning Special Mining Business Permits as a Continuation of PT Arutmin Indonesia's Contract Operation/Extension Agreement issued on November 2, 2020.

The granting of this IUPK was carried out through the process of requesting an extension request by Arutmin to the Government by fulfilling all the require-ments stipulated in Law No. 3 of 2020 concerning Amendments to Law No. 4 of 2009 concerning Mineral and Coal and Government Regulation concerning the Implementation of Mineral and Coal Mining Business Activities and other implementing regulations.

The government has evaluated the adminis-trative, technical , environmental and financial aspects including Arutmin's good mining exploitation performance and considers the sustainability of its operations.

Companies can optimize the potential for coal reserves in the context of coal conser-vation from IUPK at the stage of production operations and national interests.

Bumi Resources President Director Saptari Hoedaja said that his party welcomed the certainty of IUPK status that had been obtained through the Minister of EMR Decree and the opportunity to strengthen its contribution to the national economy.

According to Saptari, granting this permit will have a good impact on the sustainability of company operations and also for state revenues.

"We are grateful to the Government for the answers to our hopes so far, and we will continue to contribute to the communities around the mining area," said Saptari as quoted from his official statement , Wednesday (4/11/2020).

Hal itu diputuskan melalui Keputusan Menteri Energi dan Sumber Daya Mineral Republik Indonesia No. 221K/33/MEM/2020 tentang Izin Usaha Pertambangan Khusus Sebagai Kelanjutan Operasi Kontrak/Perjanjian Perpanjangan PT Arutmin Indonesia yang diterbitkan pada 2 November 2020.

Pemberian IUPK ini dilakukan melalui proses mekanisme permohonan perpanjangan oleh Arutmin kepada Pemerintah dengan me-menuhi seluruh persyaratan yang ditentukan dalam Undang-Undang No. 3 tahun 2020 tentang Perubahan Atas Undang-Undang No. 4 tahun 2009 tentang Mineral dan Batubara dan Peraturan Pemerintah tentang Pelak-sanaan Kegiatan Usaha Pertambangan Mineral dan Batubara serta peraturan pelaksanaan lainnya.

Pemerintah telah melakukan evaluasi dari aspek administratif, teknis, lingkungan dan finansial termasuk kinerja pengusahaan pertambangan yang baik dari Arutmin serta mempertimbangkan keberlanjutan operasi.

Perusahaan dapat melakukan optimalisasi potensi cadangan batubara dalam rangka konservasi batubara dari IUPK pada tahap kegiatan operasi produksi maupun kepen-tingan nasional.

Presiden Direktur Bumi Resources Saptari Hoedaja menyampaikan bahwa pihaknya menyambut baik kepastian status IUPK yang telah diperoleh melalui SK Menteri ESDM dan peluang untuk memperkuat kontribusi bagi perekonomian nasional.

Menurut Saptari, pemberian izin ini akan berdampak baik bagi keberlangsungan operasional perusahaan dan juga bagi penerimaan negara.

“Kami berterima kasih kepada Pemerintah atas jawaban dari harapan kami selama ini, dan kami akan tetap berkontribusi bagi masyarakat di sekitar wilayah pertam-bangan,” ujar Saptari seperti dikutip dari keterangan resminya, Rabu (4/11/2020).

Daily News Update Page 8

Saptari also said that his party will continue to carry out a sustainable development program and a commitment to continue to comply with applicable laws and regulations with good mining governance practices.

Meanwhile, the issuer coded BUMI shares is granted an IUPK with a term of 10 years until November 1, 2030 and can be extended in accordance with the provisions of the laws and regulations. Editor: Hafiyyan

Saptari juga mengatakan bahwa pihaknya akan terus melakukan program pem-bangunan berkelanjutan dan komitmen untuk terus patuh pada peraturan dan hukum yang berlaku dengan praktik tata kelola pertambangan yang baik.

Adapun, emiten berkode saham BUMI itu mendapatkan IUPK dengan jangka waktu selama 10 tahun sampai dengan tanggal 1 November 2030 dan dapat diperpanjang sesuai dengan ketentuan peraturan perundang-undangan. Editor : Hafiyyan

9 months loss, PT Timah believes it will be profitable at

the end of the year Monica Wareza, CNBC Indonesia

PT TIMAH Tbk (TINS) targets that by the

end of this year the company will book profits after three quarters of this year the company continues to record losses. This target can be achieved in line with the decrease in company expenses so that cash flow improves.

Investor Relations Timah Listi Witanni said that the company's quarterly performance began to improve, although it still recorded losses. In the third quarter of this year, the company recorded a net loss of Rp 255.15 billion, down slightly from the previous quarter of Rp 390.07 billion.

"This year, Timah will focus on improving cash flow by reducing expenses. With a decrease in expenses and improved operating performance as indicated by an increase in operating cash flow, Timah continues to target positive projections in December," Listi told CNBC Indonesia, Wed. (4/11/2020).

Rugi 9 Bulan, PT Timah Pede di Akhir Tahun Bisa Untung Monica Wareza, CNBC Indonesia

PT TIMAH Tbk (TINS) menargetkan di akhir tahun ini perusahaan bakal mem-bukukan keuntungan setelah dalam tiga kuartal di tahun ini perusahaan terus men-catatkan kerugian. Target ini bisa dicapai seiring dengan terjadinya penurunan beban perusahaan sehingga cashflow membaik.

Investor Relation Timah Listi Witanni mengatakan kinerja perusahaan secara kuartalan mulai membaik meski masih men-catatkan kerugian. Tercatat pada kuartal ketiga tahun ini rugi bersih perusahaan mencapai Rp 255,15 miliar, turun tipis dari kuartal sebelumnya sebesar Rp 390,07 miliar.

"Tahun ini Timah fokus memperbaiki cashflow dengan mengurangi beban. Dengan penu-runan beban dan perbaikan kinerja operasi yang ditunjukkan dengan meningkatnya cashflow operasi, Timah tetap menargetkan proyeksi di Desember positif," kata Listi kepada CNBC Indonesia, Rabu (4/11/2020).

Daily News Update Page 9

In terms of production, until the third quarter there was a decline due to the impact of Covid-19 which hampered operations, because the company has mines onshore and offshore.

In addition, world tin commodity prices this year are also lower than last year's average prices.

In its official statement, the company stated that refined tin production in the third quarter of 2020 was 37,588 tonnes, down 35.37% from 58,157 tonnes. Sales volume also decreased by 9.49% to 45,548 tonnes from 50,326 tonnes.

Meanwhile, the average selling price so far this year is down 21.73% with an average selling price of US$ 16,832 from US$ 19,083.

However, this year the company has improved in terms of Gross Profit Margin (GPM) of 6.40% from 3.13% previously. Net Profit Margin (NPM) increased from -4.89% to -2.15%.

EBITDA in the third quarter of 2020 amounted to Rp 850.36 billion, an increase compared to the second quarter of 2020 which amounted to Rp 338.72 billion.

From the financial side, recorded operating cash flow of Rp 4.84 trillion, an increase compared to the second quarter of 2020 of Rp 3.17 trillion.

However, the company is still optimistic about the performance until the end of the year considering tin demand in the third quarter of this year rose 8.07 percent to 85.7 Kiloton from the previous quarter which was 79.3 Kiloton.

The tin deficit in the third quarter of 2020 is expected to make tin prices continue to improve and has the potential to return to their original prices in early 2021. (hoi/hoi)

Dari segi produksi, sampai kuartal ketiga lalu mengalami penurunan akibat dampak Covid-19 yang membuat operasional ter-hambat, lantaran perusahaan memiliki tambang di onshore dan offshore.

Selain itu, harga komoditas timah dunia sepanjang tahun ini juga lebih rendah dibanding dengan rata-rata harga tahun lalu.

Dalam keterangan resminya, perusahaan menyebutkan produksi logam timah pada kuartal III-2020 sebesar 37.588 ton atau turun sebesar 35,37% dari posisi 58.157 ton. Volume penjualan juga mengalami penurunan sebesar 9,49% menjadi 45.548 ton dari 50.326 ton.

Sedangkan harga jual rata-rata sepanjang tahun ini melemah 21,73% dengan rata-rata harga jual sebesar US$ 16.832 dari US$ 19.083.

Namun demikian, tahun ini perusahaan telah mengalami perbaikan dari sisi Gross Profit Margin (GPM) sebesar 6,40% dari sebelumnya 3,13%. Net Profit Margin (NPM) meningkat dari sebelumnya -4,89% menjadi -2,15%.

EBITDA pada kuartal III-2020 sebesar Rp 850,36 miliar meningkat jika dibandingkan kuartal II-2020 yang sebesar Rp 338,72 miliar.

Dari sisi keuangan, tercatat cashflow operasi sebesar Rp 4,84 triliun, naik dibandingkan kuartal II-2020 sebesar Rp 3,17 triliun.

Namun demikian, perusahaan masih optimistis dengan kinerja hingga akhir tahun nanti mengingat permintaan logam timah pada kuartal ketiga tahun ini, naik 8,07% menjadi 85,7 Kiloton dari kuartal sebelumnya yang sebesar 79,3 Kiloton.

Defisit logam timah pada kuartal III-2020 diperkirakan akan membuat harga logam timah terus membaik dan berpotensi kembali ke harga semula pada awal tahun 2021. (hoi/hoi)

Daily News Update Page 10

The benchmark coal price (HBA) rose for 2 consecutive months,

APBI: This is a positive sentiment

Reporter: Ridwan Nanda Mulyana | Editor: Yudho Winarto

TOWARDS the end of the year, Reference

Coal Prices (HBA) warmed up again. After having fallen in a row for 6 months, the HBA has again climbed in the last two months.

The Ministry of Energy and Mineral Resources (MEMR) through the Directorate General of Mineral and Coal set the November HBA at US$ 55.71 per ton. That figure is up 9.23% compared to the October 2020 HBA which was set at US$ 51 per ton.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said the increase was partly due to increased imports from China as winter entered. Coal business players also welcome this HBA increase.

"More precisely, prices have started to rebound because, among others, demand in winter has increased, and imports from China have started to increase. Yes, the sentiment is positive," Hendra told Kontan.co.id, Thursday (5/11).

Even so, Hendra emphasized that the HBA increase cannot be said to have fully recovered to the level in 2019. Moreover, the economic condition is still shrouded in uncertainty due to the Covid-19 pandemic which has not been completely resolved.

Coal business actors also hope that the demand for coal imports from China can continue to increase.

Harga batubara acuan (HBA) naik 2 bulan beruntun, APBI:

Ini sentimen positif Reporter: Ridwan Nanda Mulyana | Editor:

Yudho Winarto

MENJELANG akhir tahun, Harga Batubara

Acuan (HBA) kembali menghangat. Setelah sempat turun beruntun selama 6 bulan, HBA kembali menanjak dalam dua bulan terakhir.

Kementerian Energi dan Sumber Daya Mineral (ESDM) melalui Direktorat Jenderal Mineral dan Batubara menetap-kan HBA November sebesar US$ 55,71 per ton. Angka itu naik 9,23% dibandingan dengan HBA Oktober 2020 yang ditetap-kan US$ 51 per ton.

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan, kenaikan tersebut antara lain disebabkan oleh meningkatnya impor dari China saat memasuki musim dingin. Pelaku usaha batubara pun menyambut baik kenaikan HBA ini.

"Lebih tepatnya harga mulai rebound karena antara lain demand di musim dingin meningkat, dan impor dari Tiongkok mulai meningkat. Iya, sentimen positif," kata Hendra kepada Kontan.co.id, Kamis (5/11).

Kendati begitu, Hendra menekankan bahwa kenaikan HBA ini belum bisa dikatakan sepenuhnya pulih ke level tahun 2019. Apalagi, kondisi ekonomi masih diselimuti ketidakpastian akibat pandemi Covid-19 belum sepenuhnya teratasi.

Pelaku usaha batubara pun berharap permintaan impor batubara dari China bisa terus meningkat.

Daily News Update Page 11

"But at this time it cannot be said that it has recovered to the 2019 level because, among others, the uncertainty caused by the pandemic. We really hope that China will increase its coal imports from Indonesia," Hendra concluded.

Separately, the Head of the Communication Bureau, Public Information Services and Cooperation (KLIK) of the Ministry of EMR, Agung Pribadi, said that the signal of increasing coal market demand also boosted the increase in HBA. Mainly driven by a recovery in demand from East Asia.

"Positive signals of (coal) market demand helped boost the HBA increase in November. Not to mention the increase in Chinese demand due to the high price of domestic Chinese coal rather than import prices," said Agung.

Agung added that the recovery of industries in Japan and South Korea also influenced the increase in global coal demand.

The increase in demand for coal in several countries caused an increase in the average monthly index for the compiler of the HBA, namely the Indonesia Coal Index (ICI), the Newcastle Export Index (NEX), the Globalcoal Newcastle Index (GCNC), and the Platts 5900.

Since Covid-19 was declared a global pandemic, the HBA movement has fluctuated. HBA had strengthened by 0.28% to US$ 67.08 per ton in March 2020 compared to February 2020 which was pegged at US$ 66.89 per ton.

Then, the HBA continued to weaken to US$ 65.77 per ton in April and US$ 61.11 per ton in May. Furthermore, in June 2020, the HBA fell to US$ 52.98 per ton, July US$ 52.16 per ton, and August US$ 50.34 per ton. After falling again in September to US$ 49.42 per ton, the HBA strengthened again in October and November 2020.

"Tapi saat ini belum bisa dikatakan pulih ke level 2019 karena antara lain uncertainty akibat Pandemi. Kami sangat berharap Tiongkok meningkatkan impor batubaranya dari Indonesia," pungkas Hendra.

Terpisah, Kepala Biro Komunikasi, Layanan Informasi Publik dan Kerja Sama (KLIK) Kementerian ESDM Agung Pribadi menga-takan, sinyalemen peningkatan permintaan pasar batubara ikut mendongkrak kenaikan HBA. Terutama didorong dari pemulihan permintaan dari Asia Timur.

"Sinyalemen positif atas permintaan pasar (batubara) ikut mendongkrak kenaikan HBA di bulan November. Belum lagi me-ningkatnya permintaan Tiongkok karena tingginya harga batubara domestik China ketimbang harga impor," kata Agung.

Agung menambahkan pulihnya industri di Jepang dan Korea Selatan turut mem-pengaruhi peningkatan permintaan batu-bara global.

Naiknya permintaan batubara di beberapa negara menyebabkan naiknya rata-rata indeks bulanan penyusun HBA, yakni Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), dan Platts 5900.

Semenjak Covid-19 ditetapkan sebagai pandemi global, pergerakan HBA meng-alami fluktuasi. HBA sempat menguat sebesar 0,28% ke angka US$ 67,08 per ton pada Maret 2020 dibandingkan Februari 2020 yang dipatok US$ 66,89 per ton.

Kemudian, HBA terus mengalami pele-mahan ke angka US$ 65,77 per ton pada April dan US$ 61,11 per ton pada Mei. Selanjutnya, pada Juni 2020, HBA turun ke angka US$ 52,98 per ton, Juli US$ 52,16 per ton, dan Agustus US$ 50,34 per ton. Sempat turun lagi di bulan September menjadi US$ 49,42 per ton, HBA kembali menguat di bulan Oktober dan November 2020.

Daily News Update Page 12

Later, the reference price of US$ 55.71 per ton will be used directly in the sale and purchase of coal commodities (spot) during November 2020 at the point of delivery of free on board sales aboard a carrier vessel (FOB Vessel).

Nantinya, harga acuan sebesar US$ 55,71 per ton ini akan digunakan secara langsung dalam jual beli komoditas batubara (spot) selama bulan November 2020 pada titik serah penjualan secara Free on Board di atas kapal pengangkut (FOB Vessel).

This is the Challenge of Coal Entrepreneurs in the Era of

Environmentally Friendly Energy Transition

DIRECTOR of PT Adaro Power, Adrian Lembong said that the Indonesian sector has begun to transition energy users from fossil energy to new renewable energy (EBT). The reason is that these fossil energy reserves are still sufficient for the next 68 years.

"Until a certain time, we are rich in resources. We have energy reserves for up to 68 years and this is not fully used. We plan well, the important thing is to be competitive," said Adrian in Jakarta, Wednesday (4/11).

The abundance of natural wealth in Indonesia makes all energy in Indonesia demanded to be completely cheap. Especially coal products, the community demands that this product from coal must always be affordable.

In the end, coal power producers and the government must rack their brains so that the selling price to the public is affordable. Subsidies eventually become a middle way between entrepreneurs and the community.

Because, as producers, coal entrepreneurs are actually only managers of government-owned assets.

Ini Tantangan Pengusaha Batu Bara di Era Transisi Energi

Ramah Lingkungan

DIREKTUR PT Adaro Power , Adrian

Lembong mengatakan sektor Indonesia mulai melakukan transisi pengguna energi

dari energi fosil ke energi baru terbarukan (EBT). Alasannya, cadangan energi fosil ini

masih cukup hingga 68 tahun mendatang.

"Sampai batas waktu tertentu kita kaya

sumberdaya. Kita punya cadangan energi

sampai 68 tahun ini juga tidak dipakai full.

Kita rencanakan secara baik, yang penting

kompetitif," kata Adrian di Jakarta, Rabu,

(4/11).

Melimpahnya kekayaan alam di Indonesia

membuat semua energi yang ada di

Indonesia dituntut serba murah. Terutama

produk hasil batubara, masyarakat

menuntut produk dari batubara ini harus

selalu terjangkau.

Pada akhirnya para produsen listrik batu

bara dan pemerintah harus memutar otak

agar harga jual ke masyarakat terjangkau.

Subsidi pun akhirnya menjadi jalan tengah

antara para pengusaha dan masyarakat.

Sebab, sebagai produsen, para pengusaha

batubara sebenarnya hanya pengelola dari

aset milik pemerintah.

Daily News Update Page 13

"We, as a coal producer, follow the govern-ment's implementation, we are the managers of government assets, we have a cooperation agreement," he said.

However, on the other hand, as a coal energy entrepreneur, he must be competitive with other energy sources. One of them is a new and renewable energy source (EBT). It's just that in Indonesia EBT is still considered more expensive than fossil energy.

New and Renewable Energy (EBT)

On the other hand, EBT is more friendly to the environment. Various countries are als o start ing to make energy transit ions. No exception to Indonesia, which has recently focused on the development of renewable energy-based power plants.

So, what coal companies need to do now is starting to adapt. This trend is not a threat to coal entrepreneurs. On the contrary, it becomes a new challenge in order to be able to compete more competitively or adapt to the situation.

"This is a challenge for all (coal) companies, so we have to anticipate changes and face changes. If the environment changes, we and our employees must also change," he said. Reporter: Anisyah Al Faqir, Source: Merdeka.com

"Kita sebagai produen batubara, mengikuti implemtasi pemerintah, kami ini pengelola aset pemerintah, kami ini punya perjanjian kerja sama," kata dia.

Namun, di sisi lain, sebagai pengusaha energi batubara ini harus kompetitif dengan sumber energi lainnya. Salah satunya sumber energi baru terbarukan (EBT). Hanya saja di Indonesia EBT masih dianggap lebih mahal ketimbang energi fosil.

Energi Baru Terbarukan (EBT)

Sisi lain, EBT lebih ramah terhadap ling-kungan. Berbagai negara juga mulai melaku-kan transisi energi. Tak terkecuali dengan Indonesia yang belakangan juga fokus pada pembangunan pembangkit listrik berbasis EBT.

Maka, yang perlu dilakukan perusahaan batu-bara saat ini mulai beradaptasi. Tren ini bukan ancaman bagi para pengusaha batubara. Sebaliknya menjadi tantangan baru agar bisa bersaing lebih kompetitif atau menyesuaikan diri dengan keadaan.

"Ini tantangan buat semua perusahaan (batu-bara), makanya kita harus antisipasi per-ubahan dan menghadapi perubahan. Kalau lingkungan berubah, kita dan karyawan juga harus berubah," kata dia. Reporter: Anisyah Al Faqir, Sumber: Merdeka.com

Officially Changing to IUPK, Arutmin Can Mine Coal Until

2040 Rio Indrawan

PT ARUTMIN Indonesia finally officially

obtained a Special Mining Business Permit (IUPK) as well as received two extensions in the form of IUPK as a continuation of contract operations/agreements for a maximum period of 10 years. Arutmin was previously a PKP2B company.

Resmi Berubah Jadi IUPK, Arutmin Bisa Menambang Batu

Bara Hingga 2040 Rio Indrawan

PT ARUTMIN Indonesia akhirnya resmi mem-

peroleh Izin Usaha Pertambangan Khusus (IUPK) sekaligus mendapatkan dua kali perpan-jangan dalam bentuk IUPK sebagai kelanjutan operas i kontrak/perjanjian masing-masing untuk jangka waktu paling lama 10 tahun. Arutmin sebelumnya adalah perusahaan PKP2B.

Daily News Update Page 14

Ridwan Djamaluddin, Director General of Mineral and Coal (Minerba) at the Ministry of Energy and Mineral Resources (ESDM) confirmed the contract extension that had been granted. "It's true (extending the contract and turning it into an IUPK)," Ridwan told Dunia Energi, Thursday (5/11).

Unfortunately, Ridwan does not want to reveal how much land Arutmin manages after receiving a contract extension. Even so, with the coal downstream roadmap that must be carried out by a company that received a contract extension and turned into an IUPK.

Ridwan previously emphasized that PKP2B wishing to continue to become IUPK must carry out the development and/or utilization of coal in the country.

Meanwhile, the Minister of EMR in granting IUPK as a continuation of operations considers a number of things. Namely the sustainability of operations, optimization of potential reserves in the context of conservation, as well as national interests.

Applications for the continuation of contract/agreement operations are submitted to the Minister of EMR no later than 5 years and no later than 1 year before the KK and PKP2B expire.

"The Minister can reject the application for IUPK extension if the KK and PKP2B do not show good mining exploitation performance," said Ridwan.

Arutmin submitted a request for extension through the letter of the President Director of PT Arutmin Indonesia Number 1036/AI/X/2019 dated 24 October 2019. Arutmin controlled a land concession of 57,107 hectares (ha) with the contract period ending on November 1, 2020.

Ridwan Djamaluddin Dirjen Mineral dan Batu baran(Minerba) Kementerian Energi

dan Sumber Daya Mineral (ESDM) mem-benarkan perpanjangan kontrak yang telah

diberikan. “Benar (perpanjang kontrak dan berubah jadi IUPK),” kata Ridwan kepada

Dunia Energi, Kamis (5/11).

Sayangnya Ridwan belum mau meng-ungkap berapa luas lahan yang dikelola

Arutmin setelah mendapat perpanjangan kontrak. Pun demikian dengan roadmap

hilirisasi batu bara yang harus dijalankan oleh perusahaan yang mendapat per-

panjangan kontrak dam berubah jadi IUPK.

Ridwan sebelumnya menegaskan bagi PKP2B yang ingin berlanjut menjadi IUPK

wajib melaksanakan pengembangan dan/ atau pemanfaatan batu bara di dalam

negeri.

Sementara itu, Menteri ESDM dalam mem-

berikan IUPK sebagai kelanjutan operasi mempertimbangkan sejumlah hal. Yakni

keberlanjutan operasi, optimalisasi potensi cadangan dalam rangka konservasi, serta

kepentingan nasional.

Permohonan kelanjutan operasi kontrak/ perjanjian diajukan kepada Menteri ESDM

paling cepat 5 tahun dan paling lambat 1 tahun sebelum KK dan PKP2B berakhir.

“Menteri dapat menolak permohonan

perpanjangan IUPK apabila KK dan PKP2B tidak menunjukkan kinerja pengusahaan

pertambangan yang baik,” tegas Ridwan

Arutmin mengajukan permohonan per-

panjangan melalui Surat Presiden Direktur PT Arutmin Indonesia Nomor 1036/

AI/X/2019 tanggal 24 Oktober 2019. Arutmin menguasai konsesi lahan seluas

57.107 hektare (ha) dengan masa kontrak-nya berakhir pada 1 November 2020 lalu.

Daily News Update Page 15

Apart from Arutmin, there are two other companies that have submitted a change of

status to be able to get a contract extension, they are PT Kaltim Prima Coal

(KPC) and PT Multi Harapan Utama.

KPC submitted an extension through the Letter of the President Director of PT KPC

Number L-188/BOD-MD1.7.5/III/2020 dated March 30, 2020. Meanwhile, PT

Multi Harapan Utama (MHU) submitted an extension through the Letter of the

President Director of PT MHU number 262/OL/MHU-BOD/VI/2020 dated 29 June

2020.

KPC's contract will expire on December 31,

2021. KPC controls a concession area of 84,938 ha.

Multi Harapan Utama controls a 39,972 ha land use concession whose contract will

expire on April 1, 2022. (RI)

Selain Arutmin sudah ada dua perusahaan lainnya yang mengajukan perubahan status untuk bisa mendapatkan perpan-jangan kontrak, mereka adalah PT Kaltim Prima Coal (KPC) dan PT Multi Harapan Utama.

KPC mengajukan perpanjangan melalui Surat Presiden Direktur PT KPC Nomor L-188/BOD-MD1.7.5/III/2020 tanggal 30 Maret 2020. Sementara PT Multi Harapan Utama (MHU) mengajukan perpanjangan melalui Surat Presiden Direktur PT MHU nomor 262/OL/MHU-BOD/VI/2020 tanggal 29 Juni 2020.

Kontrak KPC sendiri akan berakhir pada 31 Desember tahun 2021. KPC menguasai konsesi lahan seluas 84.938 ha.

Multi Harapan Utama menguasai konsesi penggunaan lahan seluas 39.972 ha yang kontraknya akan habis pada 1 April 2022. (RI)

Mining Industry Often

Obstructed in Regions, What Should Government Do? Detikcom team - detikFinance

REALIZATION of investment in the

mining sector often faces obstacles in the regions. The most common obstacle faced is rejection from the local community when mining business activities are to be carried out.

One of them is what happened in the tin mining in Bangka Belitung. The turmoil of tin mining in Babel is due to the intersection of interests between the mining and non-mining sectors.

Industri Tambang Sering

Terhambat di Daerah, Pemerintah Harus Apa?

Tim detikcom - detikFinance

REALISASI investasi sektor pertambangan seringkali mengalami hambatan di daerah. Hambatan paling umum yang dihadapi adalah penolakan dari masyarakat lokal ketika kegiatan usaha tambang itu bakal dilaksanakan.

Salah satunya seperti yang terjadi di pertambangan timah di Bangka Belitung. Gejolak pertambangan timah di Babel, lantaran adanya irisan kepentingan antar sektor pertambangan dengan non pertambangan.

Daily News Update Page 16

Mining Practitioner, Ferry P Siahaan explained that mining companies that

already have a license should be able to carry out their mining activities, both

exploration and production operations, which include sales and transportation.

According to him, refusal to mine in mining areas is something that often happens and

in fact continues. According to him, the state as the licensor cannot help but

anticipate rejection should be the responsibility of the state.

"The assertiveness of the government in implementing regulations is an important

thing, especially with regard to business permits that have been issued," he said.

He continued, if the refusal to violate the law, then this is the authority of the Police

to resolve. However, if the refusal is not in violation of the law, then it becomes the

authority of the regional government, in this case the Service and the Central

Government, which has the authority to conduct outreach to parties in turmoil.

"This rejection there is a difference in interests between mining and other

sectors. This understanding must be straightened out, the task of rectifying this

is the duty of the state. Basically, companies are contractors that carry out

mining for state assets. The state must not be free from conflicts arising out of permits

issued by themselves," he said.

The community, he said, is also part of the

state that must be protected and given understanding, and that task lies with the

government apparatus.

Where the hospitality given must rely on

the applicable laws and regulations and no one may carry out their interests in a way

that violates the law.

Praktisi Pertambangan, Ferry P Siahaan men-jelaskan, harusnya perusahaan tambang yang sudah memiliki izin dapat menjalankan aktivitas pertambangannya baik eksplorasi maupun operasi produksi yang di dalamnya penjualan dan pengangkutan.

Menurutnya, penolakan tambang di wilayah pertambangan merupakan hal yang kerap terjadi dan faktanya terus berlangsung. Menurutnya, negara sebagai pemberi izin tidak bisa lepas tangan, bahkan antisipasi penolakan harusnya menjadi tanggungjawab negara.

"Ketegasan Pemerintah dalam melaksanakan regulasi adalah hal yang penting, khususnya terhadap izin usaha yang sudah diterbitkan," katanya.

Ia melanjutkan, jika penolakan melanggar hukum, maka ini menjadi kewenangan Polri untuk menyelesaikan. Namun, apabila penolakan yang tidak bersifat melanggar hukum maka menjadi kewenangan pemerintah daerah dalam hal ini Dinas maupun Pemerintah Pusat yang memiliki kewenangan untuk melakukan sosialisasi kepada pihak yang bergejolak.

"Penolakan ini kan ada perbedaan kepen-tingan antara pertambangan dan sektor lainnya. Pemahaman ini harus diluruskan, tugas untuk meluruskan ini adalah tugas negara. Karena pada dasaranya, perusahaan adalah kontraktor yang melakukan penam-bangan atas aset negara. Negara tidak boleh lepas tangan atas konflik yang timbul dari izin yang diterbitkan oleh mereka sendiri," katanya.

Masyarakat, kata dia juga bagian dari negara yang harus dilindungi dan diberikan pemahaman, dan tugas itu ada pada aparatur pemerintahan.

Dimana pemamahan yang diberikan harus bersandar pada para peraturan Undang-undang yang berlaku dan tidak boleh ada yang melaksanakan kepentingannya dengan cara melanggar hukum.

Daily News Update Page 17

Refusing a company that works according to its license is the same as going against the prevailing rules. If the community does not agree, it can be done with regulations, for example taking legal action to cancel a permit that has been issued.

"The law must be enforced by the state, and usually this refusal is due to differences in interests, especially economic interests, both between the fishing and mining and fishing and tourism sectors, or between companies and the government, causing conflicts. Actually conflicts can be resolved according to the prevailing regulations," explained this Unsri Faculty of Law Alumni.

Furthermore, he explained that the act of obstructing the activities of a mining company that has a mining business license (IUP) according to Article 162 of Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba) could be punished with a maximum of one year in prison or a maximum fine of Rp. 1 billion.

"To take action against perpetrators whose actions are considered to obstruct mining activities that have met the provisions, law enforcers do not need to wait for a report because such acts are considered ordinary offenses," he explained. (dna/dna)

Menolak perusahaan yang bekerja sesuai dengan izin yang dimiliki sama halnya dengan melawan aturan yang berlaku. Jika masyarakat tidak setuju bisa dilakukan dengan aturan, misalnya melakukan upaya hukum untuk membatalkan izin yang telah diterbitkan.

"Hukum harus ditegakkan oleh negara, dan biasanya penolakan ini karena perbedaan kepentingan, khususnya kepentingan ekonomi, baik antar sektor nelayan dengan pertambangan dengan nelayan dan pari-wisata atau antara perusahaan dengan pemerintah, sehingga menimbulkan konflik. Sebetulnya konflik bisa diselesaikan merujuk pada aturan yang berlaku," jelas Alumni Fakultas Hukum Unsri ini.

Lebih lanjut, Ia menjelaskan perbuatan menghalangi aktivitas perusahaan tambang yang memiliki izin usaha pertambangan (IUP) menurut Pasal 162 Undang-undang Nomor 4 tahun 2009 tentang Pertambangan Mineral dan Batu Bara (Minerba) bisa dipidana paling lama satu tahun kurungan atau denda paling banyak Rp 1 miliar.

"Untuk menindak pelaku yang perbuatannya dinilai menghalangi-halangi aktivitas penam-bangan yang telah memenuhi ketentuan, penegak hukum tidak perlu menunggu ada laporan karena perbuatan tersebut termasuk delik biasa," jelasnya. (dna/dna)

The energy transition will make Indonesia's coal exports shrink

THE DEMAND for Indonesian coal from

abroad is expected to decrease in the future. The reason is that...

Transisi energi bakal bikin ekspor batu bara RI menyusut

PERMINTAAN batu bara Indonesia dari

luar negeri diperkirakan bakal berkurang di masa depan. Penyebabnya,...

Daily News Update Page 18

The reason is that various countries have started to switch to using new and renewable energy (EBT) to produce electrical energy in their countries.

This was expressed by the Manager of the Energy Transformation Program, IESR, Jannata Giwangkara at the Launching of the Study Series Report on the Indonesian Energy Transition Road Map, Jakarta, Wednesday (4/11/2020). "The projection of energy demand in Indonesia will decline," he said.

Furthermore, Jannata explained, as a coal exporting country, Indonesia would lose its market because export destination countries began to switch to energy other than fossil. This was done in order to preserve the environment so that they began to switch to low-carbon energy sources.

"Several destination countries have started to make the transition to low-carbon EBT," he said.

Several countries that are starting to make an energy transition include Japan, Vietnam, the Philippines and Korea. The decline in demand for coal exports will also affect a number of areas in Indonesia that live from this industry.

There are at least 5 districts in 4 provinces that will be disrupted because they rely on the coal sector as regional income. From the 2018 data, Kutai Kartanegara in East Kalimantan, the contribution of coal to GDP was 32 percent and as much as 65 percent from mining and quarrying. The value of the contribution given was Rp 160.59 billion.

Stil l in East Kalimantan, East Kutai contributed Rp. 123.5 billion from mining, quarrying and coal contributions. Mean-while in Paser, the contribution of mining and excavation is 75 percent and coal is 70 percent with a value of Rp 48.2 billion.

Penyebabnya, berbagai negara saat ini sudah mulai beralih menggunakan energi baru terbarukan (EBT) untuk meng-hasilkan energi listrik di negaranya.

Hal itu diungkapkan Manager Program Transformasi Energi, IESR, Jannata Giwangkara dalam Peluncuran Laporan Seri Studi Peta Jalan Transisi Energi Indonesia, Jakarta, Rabu, (4/11/2020). "Proyeksi permintaan energi di Indonesia akan mengalami penurunan," katanya.

Lebih lanjut Jannata menjelaskan, sebagai negara eksportir batu bara, Indonesia akan kehilangan pasar lantaran negara tujuan ekspor mulai beralih pada energi selain fosil. Ini dilakukan dalam rangka menjaga kelestarian lingkungan sehingga mereka mulai beralih pada sumber energi yang rendah karbon.

"Beberapa negara tujuan sudah mulai melakukan transisi ke EBT yang rendah karbon," kata dia.

Beberapa negara yang mulai melakukan transisi energi diantaranya, Jepang, Vietnam, Filipina dan Korea. Penurunan permintaan ekspor batu bara ini juga akan berdampak bagi sejumlah wilayah di Indonesia yang hidup dari industri ini.

Setidaknya ada 5 kabupaten di 4 provinsi yang akan terganggu lantaran mengandalkan sektor batu bara sebagai pendapatan daerah. Dari data tahun 2018, Kutai Kartanegara di Kalimantan Timur, kontribusi batu bara terhadap PDB sebesar 32 persen dan sebanyak 65 persen dari peryambangan dan penggalian. Adapun nilai kontribusi yang diberikan sebesar Rp 160,59 miliar.

Masih di Kalimantan Timur, Kutai Timur menyumbang Rp 123,5 miliar dari kontribusi pertambangan, penggalian dan batu bara. Semntara di Paser, kontribusi pertambangan dan penggalian sebesar 75 persen dan batu bara 70 persen dengan nilai Rp 48,2 miliar.

Daily News Update Page 19

In Balangan, South Kalimantan, the coal, mining and excavation sectors contributed to the region amounting to Rp 10.75 billion. Meanwhile, in Muara Enim, South Sumatra, the same sector contributed Rp 52.72 billion to the region.

Furthermore, Jannata said that the decline in demand for coal would threaten at least 100,000 workers in the coal sector.

"The decline in demand for coal will result in unemployment of more than 100 thousand direct workers in Indonesia," said Jannata.

So it is hoped that the local government will start looking for other alternatives as a source of regional income. For example, starting to look for economic sources from the tourism sector and so on.

"If there is a reduction, we must prepare. This is what we see and need to anticipate and mitigate in preparation for the energy transition scenario," concluded Jannata. kbc10

Di Balangan, Kalimantan Selatan, sektor batu bara, pertambangan dan penggalian berkontribusi ke daerah sebesar Rp 10,75 miliar. Sedangkan di Muara Enim, Sumatera Selatan sektor yang sama berkontribusi ke daerah sebesar Rp 52,72 miliar.

Lebih jauh Jannata mengatakan penurunan permintaan batu bara ini akan mengancam setidaknya 100 ribu orang pekerja di sektor batu bara.

"Penurunan permintaan batu bara ini akan menimbulkan pengangguran lebih dari 100 ribu pekerja langsung di Indonesia," kata Jannata.

Sehingga diharapkan pemerintah daerah setempat untuk mulai mencari alternatif lain sebagai sumber pendapatan daerah. Misalnya mulai mencari sumber ekonomi dari sektor pariwisata dan sebagainya.

"Kalau ada penurunan ini harus bersiap. Ini juga yang kita lihat dan perlu antisipasi dan mitigasi untuk persiapan skenario transisi energi," pungkas Jannata. kbc10

Great! Coal Price On Fire,

Reached US$ 61/Ton Tirta Citradi, CNBC Indonesia

THE PRICE of coal futures contracts

continues to strengthen. However, in trading yesterday Wednesday (4/11/ 2020), the price of the gemstone slightly strengthened.

The contract price for the most active Newcastle thermal coal contract rose 0.33% and has now reached above US$ 61/ton. Coal prices began to rally since the second week of October after having corrected sharply.

Top! Harga Batu Bara On Fire,

Tembus US$ 61/ton Tirta Citradi, CNBC Indonesia

HARGA kontrak berjangka batu bara

masih terus menguat. Namun pada perda-

gangan kemarin Rabu (4/11/2020), harga

batu legam tersebut menguat tipis.

Harga kontrak teraktif batu bara termal

Newcastle naik 0,33% dan kini sudah

tembus ke atas US$ 61/ton. Harga batu

bara mulai reli sejak minggu kedua bulan

Oktober pasca terkoreksi tajam.

Daily News Update Page 20

The Covid-19 pandemic has decreased the demand for coal, especially for the electric power sector, in the industrial and commercial segments, as well as for other industrial sectors. The weakening of demand caused the price to drop significantly.

The producers whose finances were disrupted also chose to cut production volumes. As Covid-19 infections begin to subside, many countries are loosening restrictions.

This resulted in an increase in commodity prices. Unlike the prices of other commodities which have started to creep up since June, the price of coal has only recently risen.

One of the triggers for the increase in Newcastle thermal coal prices was the very high increase in China's domestic coal prices due to tight supplies in the country.

The import quota policy and rumors that China is boycotting Australia's imported coal products (seaborne) have made the market disconnected.

China has a green zone policy regarding the range of coal prices that must be maintained.

The green zone is defined in the range of RMB 500 - RMB 570 per tonne. The price range was chosen so that it would not be too high so that it would erode the profits of utility companies that use coal as fuel. In addition, prices are also set so that there is no low level that can torment the miners.

It's just that the price of China's Qinhuangdao thermal coal, which is the reference price, has already exceeded that level. After falling two weeks ago, last week China's domestic coal price rose 1.5% to RMB 616/ton.

Pandemi Covid-19 membuat permintaan batu bara terutama untuk sektor tenaga listrik segmen industri dan komersial serta sektor industri lain mengalami penurunan. Pelemahan permintaan mem-buat harganya drop secara signifikan.

Para produsen yang keuangannya ter-ganggu pun memilih untuk memangkas volume produksi. Di saat infeksi Covid-19 mulai mereda, banyak negara yang melonggarkan pembatasan.

Hal ini berakibat pada naiknya harga komoditas. Berbeda dengan harga komo-ditas lain yang sudah mulai merangkak naik sejak Juni, harga batu bara baru naik belakangan.

Salah satu pemicu naiknya harga batu bara termal Newcastle adalah kenaikan harga batu bara domestik China yang sangat tinggi akibat ketatnya pasokan di negara tersebut.

Kebijakan kuota impor dan rumor bahwa China memboikot produk batu bara impor Australia (seaborne) membuat pasar men-jadi terdiskoneksi.

China memiliki kebijakan zona hijau atau green zone terkait rentang harga batu bara yang harus dijaga.

Zona hijau ditetapkan di rentang RMB 500 - RMB 570 per ton. Rentang harga tersebut dipilih agar tidak terlalu tinggi sehingga menggerus laba perusahaan utilitas pengguna batu bara sebagai bahan bakar. Selain itu harga juga dipatok agar tidak kerendahan yang dapat menyengsarakan para penambang.

Hanya saja harga batu bara termal China Qinhuangdao yang jadi acuan harganya sudah melampaui level tersebut. Usai turun dua minggu lalu, pekan kemarin harga batu bara domestik China kembali naik 1,5% ke RMB 616/ton.

Daily News Update Page 21

This means that the difference against the upper limit of the green zone is RMB 46/ton. If converted to the US dollar exchange rate, the value is equivalent to US$ 6.81/ton. However, when compared to the price of imported coal, especially for the Newcastle thermal coal class, the difference is more than US$ 35/ton.

Obviously this is a very fantastic difference. Under normal conditions, China will prefer imported coal to meet its domestic needs. It's just that the existence of an import quota policy limits this.

Regarding the rumors circulating regarding the Chinese government asking industry players not to buy Australian coal products, the Chinese government through its foreign minister spoke up. According to the Chinese foreign minister, the govern-ment did not ask industry players. These actions are purely on the initiative of entrepreneurs.

On the other hand, the focus of market players is also on the US election which is now in the vote counting phase. For the time being Democrat's Biden has been far ahead of his Republican rival Trump and incumbent.

Biden temporarily got 71.9 million popular votes and 264 electoral votes leaving his rival Donald Trump with 68.5 million popular votes and 214 electoral votes, according to the Associated Press.

Joe Biden's victory will greatly affect US energy policy. Biden is known for his policies against fossil fuels. On various campaign occasions, he has voiced anti-fracking so that there will be no more coal power plants.

However, Biden's victory did not necessarily make the fossil energy market shake. This is because the composition of the congress must also be considered. Based on the survey,...

Artinya selisih terhadap batas atas zona hijau sebesar RMB 46/ton. Jika dikonversi ke kurs dolar AS nilainya setara dengan US$ 6,81/ton. Namun jika dibandingkan dengan harga batu bara impor terutama untuk kelas batu bara termal Newcastle selisihnya men-capai lebih US$ 35/ton.

Jelas ini selisih yang sangat fantastis. Dalam kondisi normal China akan lebih memilih batu bara impor untuk memenuhi kebutuhan domestiknya. Hanya saja adanya kebijakan kuota impor membatasi hal tersebut.

Soal rumor yang beredar terkait pemerintah China yang meminta para pelaku industri tak membeli produk batu bara Australia, pemerintah China melalui menteri luar negerinya angkat bicara. Menurut Menlu China, pemerintah tidak meminta kepada pelaku industri. Tindakan tersebut murni atas inisiatif para pengusaha.

Di sisi lain fokus pelaku pasar juga ke pemilu AS yang sekarang sedang dalam fase penghitungan suara. Untuk sementara waktu Biden dari Demokrat unggul jauh dari rivalnya Trump dari Republik yang sekaligus petahana.

Biden untuk sementara waktu mendapat 71,9 juta suara populer dan 264 suara elektoral meninggalkan rivalnya Donald Trump dengan 68,5 juta suara populer dan 214 suara elektoral, melansir Associated Press.

Kemenangan Joe Biden akan sangat ber-pengaruh terhadap kebijakan energi AS. Biden dikenal dengan kebijakannya yang kontra terhadap bahan bakar fosil. Dalam berbagai kesempatan kampanye, ia menyuarakan anti-fracking hingga tak akan ada pembangkit listrik batu bara lagi.

Namun kemenangan Biden tak serta merta membuat pasar energi fosil goyang. Pasalnya komposisi kongres juga harus diperhatikan. Berdasarkan survei...

Daily News Update Page 22

Based on the survey, it is likely that Republicans will still control the Senate

while Democrats will control the lower house (House) and the executive branch.

The split in the congress will still make it

difficult for Biden to pass the policy if he is elected as the number one person in Uncle

Sam's superpower.

In the future, apart from the uncertainty of

China's import policy, coal prices are still overshadowed by the second wave of

Covid-19 infections in various countries, especially Europe.

The re-emergence of lockdowns and other forms of restriction of various scales in

France, England, Spain, Germany, Italy, Norway and Hungary is a serious threat

that makes the prospect of the black stone grim. CNBC INDONESIA RESEARCH TEAM

(twg/twg)

Berdasarkan survei kemungkinan besar Partai Republik masih akan menguasai Senat sementara Demokrat akan menguasai majelis rendah (House) dan lembaga eksekutif.

Terpecahnya kongres akan membuat Biden masih saja sulit untuk meloloskan kebijakan tersebut apabila ia terpilih menjadi orang nomor wahid di Negeri Adikuasa Paman Sam.

Ke depan selain adanya ketidakpastian kebijakan impor China, harga batu bara juga masih dibayangi oleh gelombang kedua infeksi Covid-19 di berbagai negara terutama Eropa.

Kembali maraknya lockdown dan bentuk pembatasan lain dengan berbagai skala di Prancis, Inggris, Spanyol, Jerman, Italia, Norwegia hingga Hungaria menjadi ancaman serius yang membuat prospek batu legam jadi suram. TIM RISET CNBC I NDONESIA (twg/twg)

China's Lygend pushes back Indonesia nickel project to March 2021 By Min Zhang and Shivani Singh

CHINA's Lygend Resources & Technology Co Ltd will not begin operating a nickel smelter at

a project planned for eastern Indonesia until March 2021, a six-month delay, after the coronavirus slowed work, an executive said on Wednesday.

"If there was no pandemic our products would have been delivered to customers already," Liu Feng, the company's vice general manager, told the China International Nickel and Cobalt Conference in Nanjing. Located on the island of Obi, the Lygend plant is one of a number of Chinese-backed high-pressure acid leach (HPAL) projects for processing nickel ore in Indonesia that have caught the attention of the global market since 2018 because of their low budgets and ambitious start-up targets.

The HPAL process will produce mixed hydroxide precipitate (MHP), an intermediate product containing both nickel and cobalt. Lygend and Indonesian partner Harita Group also plan to produce nickel and cobalt sulphate, chemicals used electric-vehicle batteries, on Obi. Their project was expected to be the first of the Indonesian HPAL ventures to start production but coronavirus-related travel restrictions have made it difficult for Chinese firms to send key workers overseas this year.

Daily News Update Page 23

Lygend had previously said start-up would occur in the third quarter of 2020 but now envisages a test run of its equipment next spring before MHP is delivered to Chinese customers from May, Liu said. Customers include China's GEM Co Ltd . Liu said Lygend is aiming to reach annual capacity of 30,000-37,000 tonnes of MHP in the second half of 2021.

The Obi partners have not yet decided how to dispose of their tailings - the crushed remnants of mineral ore - but that will not delay the project, he added.

Separately, Lygend and Harita aim to put into production another Indonesian project that will make 80,000-85,000 tonnes per year of nickel pig iron, a raw material for stainless steel production, in March to May 2022, Liu said.

(Reporting by Min Zhang and Shivani Singh; writing by Tom Daly and Mai Nguyen; Editing by Christian Schmollinger)

Copper trading volumes rebound as speculators return By: Reuters

COPPER volumes on world exchanges are climbing again as a buoyant economic recovery

from Covid-19 in top metals consumer China spurred speculators to pile back into the market.

Copper is widely used by speculators and funds as a proxy for the health of the global economy due to its wide range of uses from construction to manufacturing.

Copper trading activity slumped in the immediate aftermath of the coronavirus pandemic as funds and speculators fled from high volatility.

But as stimulus spending in China boosted demand, the price of LME benchmark copper futures soared 61% from its March lows in the early days of the Covid-19 pandemic to a 28-month peak last month of $7 034/t.

Copper has since pared some of the gains, but is still up more than 50% since March and many traders are betting it will resume its rally.

In China, copper volumes on the Shanghai Futures Exchange more than doubled in September after surging by 78% the month earlier. ShFE attracts huge numbers of small retail speculators as well as hedge funds and industrial players.

On the CME, which is favoured by macro hedge funds and other speculators who prefer its cash-settled contracts, copper volumes surged by 29% in September after several months of lacklustre figures.

The strong copper volumes on the CME, the world's biggest futures exchange operator, outperformed many other sectors such as equities and rates, where weakness led to a 35% plunge in third-quarter profit.

On the London Metal Exchange, the world's biggest market for industrial metals, volumes were not as strong, partly because speculative trading is balanced with physical hedging activity, which the pandemic dampened.

Daily News Update Page 24

"If you're not sure how many fridge freezers you're going to sell, or cars that you're going to produce, that naturally clouded the amount that you're going to put in the hedge book," said analyst Oliver Nugent at Citi.

LME copper volumes rose by 5% in September, benefiting from some speculative buying, while overall volumes slumped by 26%.

The closure of the LME open-outcry ring plus the build-up of inventories in non-LME warehouses may have also contributed to overall weaker LME volumes, analysts and traders said.

Asia’s retreat from coal power gathers momentum This year has seen 56 global banks, insurers, pension funds and asset managers boost

coal exit policies

By Tim Buckley

THE WRITING is on the wall for coal, and increasingly oil and gas. Financial markets got that

message loud and clear when China pledged net zero emissions before 2060, and then Japan and South Korea committed to doing the same by 2050.

Fossil-fuel exporters hoping that imported coal would dominate in Asian markets long after other parts of the world switched to cheaper domestic renewables may be sorely disappointed given the recent turn of events. This past month alone has seen a wave of declarations from Asian countries, financial institutions and companies signaling moves away from coal.

In the wake of China’s, Japan’s and South Korea’s net-zero emissions pledges, the Philippines announced a moratorium on new coal-fired power plants, while Thailand’s new power development plan revealed a pivot away from coal, targeting just a 5% capacity share by 2030.

Meanwhile, the success of Myanmar’s 1.06-gigawatt solar tender could put that country on the same path as Vietnam in an accelerated pivot from imported to lower-cost domestic renewables.

South Korea’s biggest electricity distribution company KEPCO and Japan’s biggest power generation company JERA promised to end construction of new coal power plants. And JERA has said it will close all its existing subcritical and supercritical coal plants by 2030 as part of its own commitment to net zero emissions.

The Korea Development Bank, the second-largest public financier of coal in the world, is reportedly set to curtail its investment in coal, acknowledging the need and growing opportunities for accelerated action to meet the Paris Agreement. This followed Japan Bank for International Cooperation’s (JBIC) announcement in April that it would no longer provide subsidized finance for new coal-fired power plants.

Daily News Update Page 25

Japan’s biggest banking group MUFG is reportedly preparing a more comprehensive coal exit strategy, following on from Mitsui & Co, which said it will sell all its equity stakes in coal-fired power plants by 2030.

South Korea’s Shinhan Financial Group committed to net zero, following the September 2020 announcement by KB Financial to cease coal finance.

These recent announcements add to the momentum of global capital’s flight from coal. This year so far has seen 56 global banks, insurers, pension funds and asset managers announce new or expanded coal exit policies – 143 globally significant financial institutions in total.

This year also saw another accelerating trend similar to coal exits: financial institutions pledging to divest from the highest risk fossil oil and gas developers, to reduce greenhouse-gas emissions in line with the goals of the Paris Agreement.

It is no coincidence that Exxon Mobil has destroyed US$150 billion, or more than 50% of its shareholder wealth, just to-date in 2020. This marks an acceleration of the trend that has seen its market capitalization shrink by a staggering $350 billion since 2000. One could fairly ask if the board needs to re-evaluate its generosity to, and patience with, current leadership.

Global capital is adopting the moral high ground on environmental, social and governance (ESG), but mainly because it is the economically sensible thing to do. Its fiduciary duty is to manage risk, and there is no bigger risk than the financial risks of climate change.

BlackRock’s own financial analysis back in April 2019 highlighted this. Although in hindsight, BlackRock will undoubtedly look back on 2020 and wonder why it didn’t show more climate leadership conviction in implementing their “A Fundamental Reshaping of Finance” policy statement.

Divesting from thermal coal provided a very morally aligned decision, given that Peabody Energy is down 85% in 2020 to date (the year is far from over given the rate of coal-exit announcements being seen).

Australia’s Whitehaven Coal is faring relatively better, down only 60% so far, although the chairman’s admission of a debt covenant breach does suggest some financial distress.

Shares in the world’s largest coal company, Coal India Ltd, is down 50% to date, again reflective of the point made by the International Energy Agency (IEA) last month, that solar is now the new king.

But with the whole fossil-fuel sector still the global laggards this year, engagement with dinosaurs is proving a very costly outcome of BlackRock’s patience with climate-science deniers. Meanwhile, renewable-energy stocks, particularly in the embryonic green hydrogen space, are going gangbusters.

The Institute for Energy Economics and Financial Analysis (IEEFA) has tracked more than 50 significant global financial institutions with exit policies from high-risk investments in oil-sands exploration and/or drilling for oil and gas in the Arctic – almost half of these policies were announced in 2020.

To IEEFA, this is a precursor to the whole re-evaluation of the longevity of fossil gas, previously touted as a transition or bridging fuel, particularly in light of the new satellite data on methane leakages that shows on a 30-year view that liquefied natural gas (LNG) is a higher-emissions source of fuel than coal power. Fossil gas has had its VW moment in 2020.

Daily News Update Page 26

These announcements make new coal plants harder to finance as the rapidly rising stranded asset risk is incorporated in financial group policies.

But it’s also becoming apparent that globally significant financial institutions are starting to turn their backs on the wider fossil fuels sector, as IEEFA’s tracker of exit policies on oil sands and Arctic drilling shows.

Perhaps not very surprising considering the collapse in value in 2020 of fossil fuel companies due to a triple whammy of a cyclical downturn, Covid-19 and structural headwinds.

And this is making possible what seemed impossible less than a year ago: for the world to get back on track to meet its climate targets to limit global warming to 1.5-2.0 degrees Celsius above pre-industrial levels.

We can only hope this momentum continues to build, given how rapidly the cascading tipping points are occurring in our natural environment. Technology, policy and finance advances mean we will win this war, but the question is, can we win it before time runs out?

Tim Buckley is director of energy finance studies, Australia/South Asia, at IEEFA.

China targets 20% share of new energy vehicle sales by 2025 Carl A. Williams - The Northern Miner

THE CHINESE government has launched a new energy vehicle (NEV) industry development

plan that will see NEV sales account for 20% of the country’s total vehicle sales by 2025.

The plan, which covers the period from 2021 to 2035, will also see battery-electric vehicles dominating new vehicle sales by 2035. By that time, China’s goal is to have all of its public transport running on electric power.

Announced on Nov. 2, the industry plan also aims to lower the average power consumption of electric vehicles to 12 kilowatt-hours (kWh) per 100 km by 2025, from today’s average of 15 kWh per 100 kilometres.

Colin Hamilton of BMO Capital Markets commented in a research note that the document “also encourages supply chains to be kept onshore while striving for technological innovation.”

Natalie Scott-Gray, senior metals analyst with StoneX, said the announcement “has solidified the bullish sentiment towards the future use of key ‘green metals’ being utilized in electric vehicles,” which include copper used in electric wiring, aluminum for light-weighting, and lithium, nickel, and cobalt used in lithium-ion batteries.

China will also implement preferential tax policies for NEVs and provide financial support for building charging points as well as creating preferential policies for parking and charging NEVs.

Daily News Update Page 27

The plan is also designed to accelerate the development and application of automotive operating systems, build an efficient battery recycling system, and speed up infrastructure development, including power and hydrogen recharging stations and battery replacement facilities.

Several major cities in China have already taken the lead in developing NEV infrastructure. Shanghai plans to add 100,000-200,000 public and private NEV charging points over the next three years.

China will also introduce new safety standards for NEVs from Jan. 1, 2021, to bring standards closer in line with Western countries and allow Chinese battery makers to adopt a larger market share abroad.

Lynas ready for Mt Weld rare earth concentrate boost following dryer

delivery Posted by Daniel Gleeson

LYNAS has taken delivery of a 14-m long, industrial scale dryer at its Mt Weld rare earth

operations, in Western Australia.

The use of the dryer is expected to further improve operational efficiency in the production of rare earth concentrate, it said.

“Lynas’ high grade, long life resource at Mt Weld in Western Australia is a key source of competitive advantage and the team is continually investing to enhance operations and ensure sustainable development of the resource,” the company said. “The fired kiln dryer will treat Mt Weld filtered concentrate and replace manual drying of the concentrate in the sun, making the process faster and more cost effective.”

Reducing the moisture levels before shipping creates a number of benefits for the business, including:

Lower concentrate freight costs;

Improved materials handling as the need to handle the product multiple times is eliminated; and

Increased productivity as the use of the dryer will reduce the time spent manually drying the product.

The Mt Weld concentrator is a flotation plant designed to process 240,000 t/y of ore to produce up to 66,000 t/y of concentrate containing 26,500 t of rare earth oxides.

Lynas VP of Upstream, Kam Leung, commented: “The use of the dryer at Mt Weld will provide a number of benefits to the Mt Weld operations, including less handling and lower transport costs. It will also result in an improved product for processing and increase opportunities for team members to focus on other projects.

Daily News Update Page 28

“We are looking forward to seeing the benefits of reduced moisture levels and to continuing to improve our operations in line with our ongoing commitment to sustainable production.”

Coal India’s e-auction sales nearly triple in October as demand rises By: PTI

STATE-owned CIL’s e-auction sales nearly tripled to 16.8 million tonnes (MTs) in October,

amid a strong demand resumption for coal from the power sector.

The quantity of coal booked under CIL’s e-auctions stood at 5.8 MT in the corresponding month of the previous fiscal.

The steep growth of 190 per cent, or an increase of 11 MT, during October, bodes well for Coal India Ltd (CIL) as it signals a strong demand resumption for coal after the COVID-led hiatus, the PSU said in a statement.

Volume booking in e-auctions for the first seven months of the ongoing fiscal stood at 59 MT, up 28 MT and translating into a growth of 90 per cent.

For a comparable period, last year, CIL booked 31 MT, it said.

The auction sale in October, in addition to the four prevailing windows, included a new auction outlet called special spot for coal importers, under which 1.6 MT of coal was booked.

In a first, CIL has introduced this category meant exclusively for coal importers to contain imports from abroad.

“This opened an additional avenue for our coal companies to step up their sales,” a senior executive of the company said.

Coal that went under the auction hammer during last month fetched CIL 13 per cent increase over the notified price.

With the onset of the COVID-19 pandemic, CIL has brought down the reserve price close to zero during the first half of the present fiscal. It was only in October, as a bellwether, CIL introduced an add-on ranging from zero to a maximum of 10 per cent over the notified price to test the market trend.

“From November onward we have reverted back to the pre-COVID status where subsidiaries of CIL will determine their own add-ons. Gauging the response, we are confident of stable auction sales and increased premiums in the ensuing months,” the executive said.

In a clear indication of growing demand from the power sector, CIL’s special forward auction, meant specifically for this sector, booked 6.5 MT in October accounting for 38.7 per cent of the total booked quantity of the auction.

Compared to the two MT booked in September, the growth has zoomed up to 225 per cent in October.

Daily News Update Page 29

Unstructured coal markets composed of consumers and traders having no direct access for purchase of coal have shown healthy appetite in volume bookings as is evident from the spot auction and special spot auction applicable to all buyers of coal.

These two auctions with a booking of 5.4 MT constituted 32 per cent of October auction sales. Compared to 2.4 MT booked under these auctions in September the growth is 125 per cent.

E-auction booking during the first seven months of the current fiscal ending October fetched a premium of 10 per cent over the notified price.

During April-October non-power sector consumers in exclusive e-auction booked 12 MT more coal at 16.8 MT.

Propelled by the recent demand, power sector’s progressive booking ending October was 16.5 MT, under special forward e-auction – an increase of 3.6 MT or 28 per cent growth compared to 12.9 MT ending October last fiscal.

CIL accounts for over 80 per cent of domestic coal output.

Analysis: Australian met coal values collapse amid Chinese import

halt Author: Jeffery Lu, Editor: Norazlina Jumaat

CHINA's halt on Australian metallurgical coal imports has resulted in higher prices for non-

Australian met coals and shifted the traditional price differential relationships between coals of different origins.

With no relaxation of the import ban expected until next year, market participants anticipate Australian met coal values will remain weaker relative to other origins in the near term.

Non-Australian met coals have been trading at higher levels, driving up benchmark indices on a CFR China basis. S&P Global Platts assessed Premium Low

Vol hard coking coal $14/mt, or 11%, higher week on week to $137/mt CFR China as of Nov. 2.

Daily News Update Page 30

During the week ended Oct. 30, a number of non-Australian coal transactions took place. These included two cargoes of Elkview, Canadian premium hard coking coal, at $135-$137/mt CFR China. Views on tradeable prices for Canadian HCC Wolverine were reported at a small premium over the benchmark Platts HCC 64 Mid Vol.

At the same time, Australian premium hard coking coals, such as Peak Downs and Goonyella, were assessed $15/mt and $23/mt, respectively, below PLV CFR China. In addition, generic hard coking coals, such as Australia's Lake Vermont, were assessed as tradable at $14/mt below HCC 64 Mid Vol as of Nov. 2.

Based on Platts data, Australian met coal brand relativities, including Peak Downs, Goonyella and Lake Vermont, have been trading at around 101%, 97% and 91% relative to the benchmark since January 2016. This compares with 89%, 83% and 74%, respectively, as of Nov. 2.

There was also evidence that non-Australian origin pulverized coal injection, or PCI, has also seen an uplift relative to its Australian peers. This likely reflected a lagged impact of the restrictions imposed by China in early October. As a result, Platts' assessments for Low-Vol PCI and Mid-Tier PCI all saw their CFR China value rise above FOB Australia net-forward values, for the first time since these assessments were launched.

Seaborne met coal supply has tightened since China moved to temporarily halt Australian coal imports in early October. While Chinese steelmakers have been obliged to quickly seek alternative supply, spot availability of alternative origins has been low. Alternative seaborne origins such as Canada, the US, Mozambique and Russia are mostly overbooked, or in short supply. In addition, it takes around 45 days to ship coal from the US to northern China, which would result in late December or January arrivals, and 21 days from Canada. For Chinese buyers seeking spot cargoes to cover immediate needs, this is too long to wait.

Chinese end-users are facing a growing dilemma at the moment. On the one hand, a strengthening domestic and Mongolian coal price could provide economic incentives for Chinese steelmakers to import coals with the remaining import quota available. On the other hand, political uncertainties between Australia and China may lead to the scenario that the import quota may not be reset at the start of next year.

This has led to the painful reality that the import price arbitrage, currently assessed at $53.50/mt, could not be taken advantage of by Chinese buyers. Platts assessed the CFR China equivalent of Shanxi PLV at $190.50/mt for the week ended Oct. 30, much higher than the Platts PLV CFR China assessment of $137/mt for the same week.

Market participants said they anticipate continued import restrictions to be imposed on Australian coals in the near term.

"It is still anyone's guess if and when Australian coals will be permitted to enter the country," a trader source said, adding that a best-case scenario would be to see import quotas reset by January 2021.

But this depended on the relationship between the two countries at that point, he added.