IMA-Daily Update Page 1

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India & China Excess Stock, Indonesian HBA July 2020 US$52/Ton India & China Kelebihan Stok, HBA RI Juli 2020 US$52/Ton

Efficiency, Aneka Tambang (ANTM) successfully pressed ferronickel production cash costs Efisiensi, Aneka Tambang (ANTM) sukses tekan biaya tunai produksi feronikel

Indonesian coal miners to cut 50 million tons of production due to weak prices Judicial Review of Minerba Law Will Be Filed Next Week Gugatan Uji Materiel UU Minerba Bakal Diajukan Pekan Depan The excess coal supply, Adaro Energy has not planned to cut the 2020 production target Pasokan batubara berlebih, Adaro Energy belum berencana pangkas target produksi 2020 PLN Immediately Builds Temporary Plant for Antam's Ferronickel Smelter Power Supply PLN Segera Bangun Pembangkit Sementara untuk Pasok Listrik Smelter Feronikel Antam Mining investment to fall short by 40 percent this year: Energy ministry Coal exports to India fell, this was anticipated by the Ministry of ESDM Ekspor batubara ke India turun, begini langkah antisipasi Kementerian ESDM

PT Timah Tbk (TINS) released 100% of Indometal Corporation shares to Mind ID PT Timah Tbk (TINS) melepas 100% saham Indometal Corporation ke Mind ID

Covid-19 Effects, Copper Manufacturer in Chile Stops Temporary Operation Akibat Covid-19, Produsen Tembaga di Chili Setop Operasi Sementara

Attention! Indonesia's Reference Coal Price Lowest in 4 Years Perhatian! Harga Batu Bara Acuan RI Terendah dalam 4 Tahun

CNBC Indonesia

Kontan

The Jakarta Post Bisnis Kontan Dunia Energi The Jakarta Post Kontan

Kontan

Bisnis

CNBC Indonesia

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Rio Tinto braces for massive Oyu Tolgoi cost blowout China's Shenhua stops selling spot domestic coal for July: sources Endeavour becomes West Africa’s top gold miner Codelco warns more restrictions on copper mines would be 'catastrophic' - report US coal exports drop to 3.5-year low in May: Census GlobalData: Global iron ore consumption to drop by 2.8% Carrying coals to Germany: Imports still vital despite sagging demand

Australian Mining S&P Global Platts Mining.com Mining Weekly S&P Global Platts

Global Mining Review Deutsche Welle

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IMA-Daily Update Page 3

India & China Excess Stock, Indonesian HBA July 2020

US$52/Ton Anisatul Umah, CNBC Indonesia

COAL Price Reference (HBA) in July back down to US$ 52.16 per ton, edged down 1.54% compared to June of US$ 52.98 per ton. Same with the previous month, the decline is caused by the lack of uptake on the global market demand for Indonesian coal supply.

Head of the Bureau of Communication, Public Information Services and Cooperation (KLIK), the Ministry of Energy and Mineral Resources (ESDM) Agung Pribadi said the most significant factor behind the decline was coal stockpiles in India and China were fairly high.

"The two countries were prioritizing domestic (coal) supplies first," Agung said in his official statement on Friday (03/07/ 2020).

Furthermore, he said, the reduction in coal supply from Indonesia could not be separated from the strong influence of the Covid-19 impact which limited the economic movements of each country.

In the midst of a pandemic, according to Agung, there is a tendency to shift to alternative domestic energy sources.

He confirmed, the HBA experienced a downward trend since the Word Health Organization (WHO) established Covid-19 as a pandemic in mid-March.

HBA had gained 0.28 percent at US$ 67.08 per ton in March compared with February of US$ 66.89 per ton.

India & China Kelebihan Stok, HBA RI Juli 2020 US$52/Ton

Anisatul Umah, CNBC Indonesia

HARGA Batu Bara Acuan (HBA) bulan Juli

kembali turun ke posisi US$ 52,16 per ton, turun tipis 1,54% dibandingkan bulan Juni US$ 52,98 per ton. Sama dengan bulan sebelumnya, penurunan ini diakibatkan oleh minimnya serapan pasar global terhadap permintaan pasokan batu bara Indonesia.

Kepala Biro Komunikasi, Layanan Infor-masi Publik dan Kerja Sama (KLIK) Kementerian Energi dan Sumber Daya Mineral (ESDM) Agung Pribadi mengatakan faktor paling signifikan di balik penurunan itu adalah stok batu bara di India dan China terbilang tinggi.

"Dua negara tadi sedang mengutamakan terlebih dahulu pasokan (batu bara) dalam negeri," kata Agung dalam keterangan resmi-nya, Jumat, (03/07/2020).

Lebih lanjut, dia mengatakan, pengurangan suplai batu bara dari Indonesia, tidak lepas dari adanya pengaruh kuat dari dampak Covid-19 yang membatasi pergerakan eko-nomi masing-masing negara.

Di tengah pandemi, menurut Agung, ada kecenderungan peralihan ke sumber energi alternatif dalam negeri.

Ia membenarkan, HBA mengalami tren penurunan sejak Word Health Organization (WHO) menetapkan Covid-19 ditetapkan sebagai pandemi pada pertengahan Maret lalu.

HBA sempat menguat sebesar 0,28 persen pada angka US$ 67,08 per ton di bulan Maret dibanding bulan Februari US$ 66,89 per ton.

IMA-Daily Update Page 4

Then, the HBA weakened to US$ 65.77 per ton in April and May dropped to US$ 61.11 per ton. This HBA position is the lowest price since 2016 when the HBA in February 2016 touched US$ 50.92 per ton.

HBA itself is obtained from the average Indonesian Coal Index (ICI), Newcastle Export Index (NEX), Global Coal Newcastle Index (GCNC), and Platts 5900 in the previous month. The quality is equal to 6322 kcal calories per kilogram of GAR.

Later, this price will be used directly in the sale and purchase of coal commodities (spot) for one month at the point of sale for Free on Board on a shipping vessel (FOB Veseel).

Previously, the Ministry of E SDM had estimated that the HBA at the end of 2020 would be in the range of US$ 59-61 per ton. This was conveyed by the Director of Mineral and Coal Revenue at the Ministry of ESDM, Johnson Pakpahan.

"The price of Indonesian coal at the end of 2020 is estimated to be around US$ 59 - US$ 61 per ton. End of 2021 reaches US$ 66 per ton, and by the end of 2022 US$ 69 per ton," he said in a virtual discussion, Friday (06/05/2020). (miq/miq)

Kemudian, HBA mengalami pelemahan ke US$ 65,77 per ton di bulan April dan Mei kembali anjlok ke posisi US$ 61,11 per ton. Posisi HBA ini merupakan harga terendah sejak tahun 2016 dimana saat itu HBA bulan Februari 2016 pernah menyentuh angka US$ 50,92 per ton.

HBA sendiri diperoleh dari rata-rata indeks Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), dan Platts 5900 pada bulan sebelum-nya. Kualitas yang disetarakan pada kalori 6322 kcal per kilogram GAR.

Nantinya, harga ini akan digunakan secara langsung dalam jual beli komoditas batu bara (spot) selama satu bulan pada titik serah penjualan secara Free on Board di atas kapal pengangkut (FOB Veseel).

Sebelumnya, Kementerian ESDM pernah mem-perkirakan HBA pada akhir tahun 2020 berada di kisaran US$ 59-61 per ton. Hal tersebut di-sampaikan oleh Direktur Penerimaan Minerba Kementerian ESDM Johnson Pakpahan.

"Harga batu bara Indonesia pada akhir tahun 2020 diperkirakan berkisar US$ 59 - US$ 61 per ton. Akhir tahun 2021 mencapai US$ 66 per ton, dan akhir tahun 2022 sebesar US$ 69 per ton," ungkapnya dalam diskusi virtual, Jumat (05/06/2020). (miq/miq)

Efficiency, Aneka Tambang (ANTM) successfully pressed

ferronickel production cash costs Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

THE TRANSITION to a new era of normalcy

seemed positively welcomed by PT Aneka Tambang Tbk (ANTM) because it was believed to be able to lift the company's performance in the remainder of 2020. To help improve performance,...

Efisiensi, Aneka Tambang (ANTM) sukses tekan biaya

tunai produksi feronikel Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

MASA transisi menuju era kenormalan baru

tampak disambut positif oleh PT Aneka Tambang Tbk (ANTM) karena diyakini dapat mengangkat kinerja perusahaan tersebut di sisa tahun 2020. Untuk membantu perbaikan kinerja,...

IMA-Daily Update Page 5

To help improve performance, ANTM's management tried to reduce various expenses, including production cash costs.

ANTM's Senior Vice President Corporate Secretary Kunto Hendrapawoko said, as the new phase of normalcy came, economic conditions and global commodity demand slowly rose in the second quarter-2020.

ANTM also continues to strive to improve the achievement of production and sales of the company's main commodities, so that it is expected to be able to record better performance in semester one and beyond.

Quoting the previous news, ANTM achieved sales of Rp 5.20 trillion with export sales contribution of Rp 1.37 trillion in the first quarter of 2020. Unfortunately, ANTM had to bear a net loss of Rp 281.84 billion due to foreign exchange losses of Rp 382 billion.

Kunto continued, to maintain performance in the midst of the corona virus pandemic, ANTM tried to reduce costs. The company is also claimed to be one of the low-cost global ferronickel producers.

It was noted, the cash cost of unaudited ferronickel production for this state-owned company was US$ 3.35 per pound during cumulative operations in the first 5 months of 2020. "This achievement shows a 15% decrease in ANTM cash costs compared to the average unaudited ferronickel cash cost ANTM in 2019 amounted to US$ 3.95 per pound," he said, Thursday (2/7).

Not only that, the cash costs of ANTM ferronickel in the first 5 months of 2020 are also lower than the average cash cost of global ferronickel producers which reaches US$ 4.85 per pound. This fact is based on the second quarter of 2020 study by Wood Mackenzie.

Untuk membantu perbaikan kinerja, manajemen ANTM berusaha mengurangi berbagai pengeluaran, termasuk biaya tunai produksi.

Senior Vice President Corporate Secretary ANTM Kunto Hendrapawoko mengatakan, seiring datangnya fase kenormalan baru, kondisi perekonomian dan permintaan komoditas global perlahan bangkit pada kuartal II-2020.

ANTM pun terus berupaya untuk mening-katkan capaian produksi dan penjualan komoditas utama perusahaan, sehingga diharapkan dapat mencatatkan kinerja yang lebih baik di semester satu dan seterusnya.

Mengutip berita sebelumnya, ANTM meraih penjualan sebesar Rp 5,20 triliun dengan kontribusi penjualan ekspor sebesar Rp 1,37 triliun pada kuartal I-2020. Sayangnya, ANTM harus menanggung rugi bersih sebesar Rp 281,84 miliar yang diakibatkan kerugian selisih kurs sebesar Rp 382 miliar.

Kunto melanjutkan, untuk mempertahankan kinerja di tengah pandemi virus corona, ANTM berusaha menekan biaya penge-luaran. Perusahaan ini pun diklaim sebagai salah satu produsen feronikel global ber-biaya rendah.

Tercatat, biaya tunai produksi unaudited feronikel perusahaan pelat merah ini sebesar US$ 3,35 per pon sepanjang operasi kumulatif di 5 bulan pertama tahun 2020. “Capaian ini memperlihatkan adanya penurunan biaya tunai ANTM sebesar 15% jika dibandingkan biaya tunai rata-rata unaudited feronikel ANTM di tahun 2019 sebesar US$ 3,95 per pon,” ungkap dia, Kamis (2/7).

Tak hanya itu, biaya tunai feronikel ANTM di 5 bulan pertama 2020 juga lebih rendah dari rata-rata biaya tunai produsen feronikel global yang mencapai US$ 4,85 per pon. Fakta tersebut berdasarkan studi triwulan kedua tahun 2020 oleh Wood Mackenzie.

IMA-Daily Update Page 6

Meanwhile, ANTM management is providing capital expenditure (capex) funds of around Rp 1.5 trillion this year. The capex will mainly be used for capital needs of subsidiaries, development projects, exploration, and routine invest-ment.

Kunto said, his party always evaluates all investment opportunities that exist today

and opportunities that exist in the future. "This is in line with ANTM's efforts to continue to grow and provide positive returns to shareholders and stakeholders," he concluded.

Sementara itu, manajemen ANTM menye-diakan dana belanja modal atau capital expenditure (capex) sekitar Rp 1,5 triliun pada tahun ini. Capex tersebut utamanya akan digunakan untuk kebutuhan modal anak usaha, proyek pengembangan, eksplo-rasi, hingga investasi rutin.

Kunto bilang, pihaknya senantiasa meng-evaluasi seluruh kesempatan investasi yang ada saat ini maupun peluang yang ada di masa depan. “Hal ini sejalan dengan upaya ANTM untuk terus tumbuh dan memberikan imbal hasil yang positif kepada para peme-gang saham dan pemangku kepentingan,” pungkas dia.

Indonesian coal miners to cut 50 million tons of production due to weak prices

Norman Harsono | The Jakarta Post

MINERS in Indonesia, the world’s top coal exporting country, have decided to cut domestic production by 50 million tons this year in their bid to increase global coal prices, which have been falling during the health crisis.

The Indonesian Coal Mining Association (APBI) has forecast coal production to fall short by 11 percent to 530 million metric tons this year. However, members are planning to further lower production to 480 million tons due to weak prices, the APBI announced on Wednesday.

Indonesia’s benchmark coal price (HBA) hit US$52,98 per ton in June, the lowest price in the last four years, according to Energy and Mineral Resources Ministry data.

“The [low price] trend will continue amid concerns over a possible second wave of COVID-19,” wrote APBI chairman Pandu Sjahrir in a statement on Wednesday.

A possible second wave is expected to lower coal demand in major coal exporting markets such as China, Japan, India and South Korea. Coal is mainly used to generate electricity, the demand of which will sink as factories and businesses close shop during COVID-19 lockdowns.

As the world’s largest coal producer, dry fuel makes up 14 percent of Indonesian exports, Statistics Indonesia (BPS) data show. Exports cooled 28.95 percent year-on-year (yoy) in May to $10.53 billion, the lowest since July 2016, partially due to falling coal exports.

“This will of course have an impact on government revenue and national production targets,” the association stated.

IMA-Daily Update Page 7

The energy ministry expects to earn Rp 35.93 trillion in non-tax state revenue (PNBP) from coal and mineral miners this year, 41 percent of which had been achieved as of early June. The mining sector is a major contributor to state coffers in Indonesia.

The revenue target assumes that Indonesia will produce 550 million tons of coal this year. Forty-two percent of the target had been met as of May.

“If we compare the numbers, it feels like the 550 [million tons] target can be met,” energy ministry coal director Sujatmiko said on Tuesday, a day before the APBI’s announcement.

He was not immediately available for comment over the announced production cut.

The government and coal miners were focusing on redirecting sales into South Asian and Southeast Asian markets to make up for lost sales in China and India, he added, during a webinar hosted by green energy nonprofit CERAH.

“Expecting these countries to fill in the shortage to China is, of course, not a short-term or long-term plan. We cannot even expect much from 2020. But these are new markets we can secure,” said APBI executive director Hendra Sinadia at the webinar.

A recent report calculated that only six of 11 big coal companies in Indonesia can remain profitable given that coal prices have lingered at around $50 per ton in 2020.

The unprofitable or “cash flow negative” companies are PT Bumi Resources, PT ABM Investama, PT Bukit Asam, PT Toba Bara Sejahtra and PT Harum Energy and Geo Energy Resources Ltd, according to the report by the Institute for Energy Economics and Finance Analysis (IEEFA).

However, PT Bumi Resources, Indonesia’s most productive coal miner, did not plan to cut production levels, said Bumi corporate secretary Dileep Srivastava.

He noted the company could produce between 88 million and 95 million tons of coal this year.

“Our production and sales are on track at normal levels presently, in spite of the present challenges,” he said.

Judicial Review of Minerba Law Will Be Filed Next Week

Yanita Petriella

SUBMISSION of judical review of Law Number 3 Year 2020 concerning amend-ment to Law Number 4 of 2009 concerning Mineral and Coal Mining will be carried out next week.

Gugatan Uji Materiel UU Minerba Bakal Diajukan Pekan Depan

Yanita Petriella

PENGAJUAN gugatan uji materiel atau judical review UU Nomor 3 Tahun 2020 tentang perubahan UU Nomor 4 tahun 2009 tentang Pertambangan Mineral dan Batubara akan dilakukan pada pekan depan.

IMA-Daily Update Page 8

Executive Director of the Center for the

Study of the Energy and Mining Law

(Pushep) Bisman Bhaktiar said that the

Minerba Law can only be judicial review in

the Constitutional Court (MK) both

formally related to issues of the formation

process and materially related to content

that is considered contrary to the 1945

Constitution.

"Filing the lawsuit is done formally first.

That is because of the limited time for

formal testing which is 45 days after the

law was enacted," he told Bisnis on

Thursday (2/7/2020).

According to him, formally related to carry

over could be the entrance to submit the

judicial review to the Constitutional Court

and of course there are other things that

could be the reason for the request.

"Currently the coalition is preparing its

petition, while the material can be about

PKP2B [coal mining concession work

agreement] guarantees, withdrawal of

authority to the center and others, but

because the request for time judicial

review is not limited so that it can follow,"

he said.

Meanwhile, the draft is currently being

prepared for submitting a judicial review

to the Constitutional Court because it will

be submitted next week.

"Friends prepare the judicial review, but

for the time being focus on the formal test

because it is related to the deadline,"

Bisman said. Editor: Zufrizal

Direktur Eksekutif Pusat Studi Hukum

Energi dan Pertambangan (Pushep)

Bisman Bhaktiar mengatakan bahwa UU

Minerba baru bisa dilakukan uji materiel di

Makamah Konstitusi (MK) baik secara

formal terkait dengan permasalahan

proses pembentukan maupun secara

materiil terkait isi yang dianggap ber-

tentangan dengan UUD 1945.

"Pengajuan gugatan UU ini dilakukan

secara formil terlebih dahulu. Hal itu

dikarenakan terbatasnya waktu untuk

dilakukan uji formil yakni 45 hari setelah

UU ini diundangkan," ujarnya kepada

Bisnis, Kamis (2/7/2020).

Menurutnya, secara formal terkait dengan

carry over bisa menjadi pintu masuk untuk

mengajukan uji materiel ke MK dan

tentunya ada hal-hal lain yang bisa menjadi

alasan permohonan.

"Saat ini koalisi sedang menyiapkan per-

mohonannya, sedangkan secara materiel

bisa tentang jaminan PKP2B [perjanjian

karya pengusahaan pertambangan batu

bara], penarikan kewenangan ke pusat dan

lain-lain, tetapi karena permohonan uji

materiel waktu tidak dibatasi sehingga bisa

menyusul," katanya.

Adapun, saat ini disiapkan draf untuk

pengajuan uji materiel ke MK karena akan

diajukan pada pekan depan.

"Teman-teman menyiapkan uji materiel,

tetapi sementara fokus ke uji formil karena

terkait batas waktu," ucap Bisman. Editor :

Zufrizal

IMA-Daily Update Page 9

The excess coal supply, Adaro Energy has not planned to cut

the 2020 production target Reporter: Nur Qolbi | Editor: Herlina

Kartika Dewi

THE INDONESIAN Coal Mining Association

(APBI) announced, coal producers plan to cut coal production in 2020 by 15%-20%. This was done to maintain producer profitability in the midst of the Covid-19 pandemic which led to excess supply and reduced demand.

Even so, PT Adaro Energy Tbk (ADRO) has not planned to cut production targets for 2020. "Until now there has been no change in production guidelines," said PT Adaro Energy Tbk's Head of Corporate Communication Febriati Nadira when contacted by Kontan.co.id, Thursday (2/7).

Until the end of 2020, ADRO targets to produce 54 million tons - 58 million tons of coal. ADRO also hopes to book operational EBITDA of between US$ 900 million and US$ 1.2 billion.

Febriati said that coal price fluctuations in the market could not be controlled by the company. "For this reason, we focus on efforts to improve operational excellence and control costs and efficiency to maintain solid performance," she said.

According to Febriati, Adaro Energy has an integrated and efficient business model that has proven successful in dealing with the coal market cycle. In addition, she believes, the pillars of non-coal will continue to provide a stable contribution to Adaro Energy as well as balancing coal volatility.

Pasokan batubara berlebih, Adaro Energy belum berencana pangkas target produksi 2020

Reporter: Nur Qolbi | Editor: Herlina Kartika Dewi

ASOSIASI Pertambangan Batubara Indonesia (APBI) mengumumkan, produsen batubara berencana untuk memangkas produksi batubara tahun 2020 hingga 15%-20%. Hal ini dilakukan untuk menjaga profitabilitas produsen di tengah pandemi Covid-19 yang menimbulkan adanya kelebihan pasokan dan penurunan permintaan.

Meskipun begitu, PT Adaro Energy Tbk (ADRO) belum berencana memotong target produksi tahun 2020. "Sampai saat ini belum ada perubahan panduan produksi," kata Head of Corporate Communication PT Adaro Energy Tbk Febriati Nadira saat dihubungi Kontan.co.id, Kamis (2/7).

Hingga akhir tahun 2020, ADRO menargetkan dapat menghasilkan 54 juta ton-58 juta ton batubara. ADRO juga berharap bisa mem-bukukan EBITDA operasional antara US$ 900 juta-US$ 1,2 miliar.

Febriati menyampaikan, fluktuasi harga jual batubara di pasar tidak dapat dikontrol oleh perusahaan. "Untuk itu, kami fokus terhadap upaya peningkatan keunggulan operasional dan pengendalian biaya dan efisiensi untuk mem-pertahankan kinerja yang solid," tutur dia.

Menurut Febriati, Adaro Energy memiliki model bisnis yang terintegrasi dan efisien yang telah terbukti sukses dalam menghadapi siklus pasar batubara. Di samping itu, ia yakin, pilar-pilar non-batubara akan terus mem-berikan kontribusi yang stabil kepada Adaro Energy serta menjadi penyeimbang volatilitas batubara.

IMA-Daily Update Page 10

"One of our strategies is through diversification of the mining business by entering the coking coal business," said Febriati.

Based on Kontan.co.id records, ADRO coal sales in the first quarter of 2020 rose 8% year on year (yoy) to 14.39 million tons. The sales volume includes 0.31 million tons of hard coking coal from the AMC Lampunut mine and 0.16 million tons of thermal coal from Mustika Indah Permai.

The majority of ADRO coal sales in the first quarter of 2020 were directed to the Southeast Asian region with a share of 47% of the total sales volume. Followed by East Asia with 22%, India 19%, and China 10%. Indonesia and Malaysia are the two biggest ADRO markets in Southeast Asia.

However, ADRO's income in the first three months of this year dropped 11% yoy to US$ 750 million. This was caused by a 17% decline in the average selling price of coal.

"Salah satu strategi kami adalah melalui diversifikasi bisnis pertambangan dengan masuk ke bisnis coking coal (batubara kokas)," ucap Febriati.

Berdasarkan catatan Kontan.co.id, penjualan batubara ADRO pada kuartal I-2020 naik 8% secara year on year (yoy) menjadi 14,39 juta ton. Volume penjualan tersebut sudah ter-masuk 0,31 juta ton batubara kokas keras dari tambang Lampunut AMC dan 0,16 juta ton batubara termal dari Mustika Indah Permai.

Mayoritas penjualan batubara ADRO pada kuartal I-2020 ditujukan ke kawasan Asia Tenggara dengan porsi 47% dari total volume penjualan. Disusul oleh Asia Timur sebanyak 22%, India 19%, dan China 10%. Indonesia dan Malaysia menjadi dua pasar terbesar ADRO di Asia Tenggara.

Akan tetapi, pedapatan ADRO pada tiga bulan pertama tahun ini turun 11% yoy menjadi US$ 750 juta. Hal ini disebabkan oleh penurunan harga jual rata-rata batu-bara sebanyak 17%.

PLN Immediately Builds Temporary Plant for Antam's

Ferronickel Smelter Power Supply

Rio Indrawan

PT PLN (Persero) insists it is ready to provide power plants as a source of electricity for the operation of the ferronickel smelter owned by PT Aneka Tambang Tbk (ANTM) in East Halmahera. Zulkifli Zaini, President Director of PLN, said that discussions with Antam as the smelter project owner had been carried out. PLN is committed to providing power plants that will be built near the smelter.

PLN Segera Bangun Pembangkit Sementara untuk Pasok Listrik

Smelter Feronikel Antam Rio Indrawan

PT PLN (Persero) menegaskan siap menyediakan pembangkit listrik sebagai sumber kelistrikan untuk pengoperasian pabrik pengolahan dan pemurnian (smelter) feronikel milik PT Aneka Tambang Tbk (ANTM) di Halmahera Timur. Zulkifli Zaini, Direktur Utama PLN, mengatakan pembicaraan dengan Antam selaku pemilik proyek smelter telah di-lakukan. PLN berkomitmen untuk menye-diakan pembangkit listrik yang akan di-bangun dekat smelter.

IMA-Daily Update Page 11

"We have committed to supply it on time. The plant (construction) is close to the smelter," said Zulkifli in Jakarta, Thursday (2/7).

According to Zulkifli, in order for the smelter to be operational soon, PLN will build a temporary power plant that can be completed at least within the next two years. Unfortunately he did not want to disclose what kind of power plant that will be built by PLN later. "As I recall, there was a temporary generator for two years later, a permanent generator. Now we are preparing," said Zulkifli.

Antam's ferronickel smelter construction is in the spotlight because it has not yet operated, even though the construction of the factory has been completed since last year. The main problem is that there is no supply of electricity flowing to support the smelters. The state loss was in front of the eye because there was a State Capital Inclusion (PMN) of Rp. 3.5 trillion which was poured into the mineral downstream project.

Antam's ferronickel smelter should be operating (Commissioning Operation Date/COD) in 2019. The smelter power plant was built using the IPP bridging power plant (electricity purchase to third party) electricity supply scheme built by PT BGP and should be completed in July 2019. It's just that the company failed to provide the electricity needed because there were financial problems.

Dana Amin, President Director of Antam, said that in the smelter construction planning there are main points that may not be the main focus, namely risk management in power plant construction. All projects are purely under the supervision of Antam's management, including the provision of power plants through a tender process. That way,...

“Kami sudah komit untuk menyuplai itu sesuai waktunya. Pembangkit (bangun-nya), kan dekat dengan smelter,” kata Zulkifli di Jakarta, Kamis (2/7).

Menurut Zulkifli, agar smelter bisa segera beroperasi maka PLN akan membangun pembangkit listrik sementara yang bisa selesai dibangun paling tidak dalam jangka waktu dua tahun ke depan. Sayangnya dia belum mau beberkan pembangkit jenis apa yang akan dibangun PLN nanti. “Seingat saya ada pembangkit sementara untuk dua tahun kemudian pembangkit tetap. Sekarang lagi persiapan,” ungkap Zulkifli.

Pembangunan smelter feronikel Antam menjadi sorotan lantaran tidak kunjung beroperasi., Padahal konstruksi pabrik sudah selesai sejak tahun lalu. Masalah utamanya adalah tidak ada pasokan listrik yang mengalir untuk menghidupi mesin-mesin pabrik smelter. Kerugian negara pun di depan mata lantaran ada Penyertaan Modal Negara (PMN) sebesar Rp3,5 triliun yang digelontorkan untuk proyek hilirisasi mineral tersebut.

Smelter feronikel Antam seharusnya ber-operasi (Commissioning Operation Date/ COD) pada 2019. Pembangkit listrik smelter dibangun dengan menggunakan skema suplai pasokan listrik bridging power plant IPP (pembelian listrik ke pihak ke III) yang dibangun PT BGP dan harusnya selesai pada Juli 2019. Hanya saja perusahaan tersebut gagal menyediakan listrik yang dibutuhkan lantaran ada masalah keuangan.

Dana Amin, Direktur Utama Antam, menga-takan dalam perencanaan pembangunan smelter ada poin utama yang kemungkinan tidak menjadi fokus utama yakni mana-jemen risiko dalam pembangunan pem-bangkit listrik. Seluruh proyek murni dibawah pengawasan manajemen Antam, termasuk dalam penyediaan pembangkit listrik melalui proses tender. Dengan begitu,...

IMA-Daily Update Page 12

That way, two constructions namely the smelter and the construction of the power plant go hand in hand. The smelter construction was carried out by PT Wijaya Karya Tbk and the plant was worked on by PT BGP and the consortium.

"The planning between the smlter and the power plant in a common sense must be equalized. but in terms of risk management miss when building electricity generators," Dana said. (RI)

Dengan begitu, dua konstruksi yakni smelter dan konstruksi pembangkit listrik-nya yang berjalan beriringan. Konstruksi smelter dikerjakan PT Wijaya Karya Tbk dan pembangkit digarap PT BGP dan konsorsium.

“Secara perencaanaan antara smlter dan pembangkit listrik secara common sense pasti disamakan. namun dari sisi risk management miss saat pembangunan pem-bangkit listirknya,” kata Dana. (RI)

Mining investment to fall short by 40 percent this year: Energy ministry

Norman Harsono | The Jakarta Post

INVESTMENT in the mining industry is expected to fall short by US$4.74 billion this year, 40

percent of the initial target, as a result of delays in several smelter projects, the Energy and Mineral Resources (ESDM) Ministry has said.

Lockdowns at various levels applied in many countries around the world to contain the spread of COVID-19 have disrupted material and labor supplies for the projects, adding more issues to developers’ financial problems, said the ministry’s coal director, Sujatmiko.

“Smelter construction will only resume in July 2020,” he said during a webinar hosted by Cerah Foundation on Tuesday.

Prior to the COVID-19 pandemic, the energy ministry expected four new smelters to start operations this year.

However, only two smelters – a ferronickel smelter and lead bullion smelter – are slated for completion in 2020, energy ministry mineral director Yunus Saefulhak told The Jakarta Post on Wednesday.

The remaining two smelters – a nickel pig iron (NPI) smelter and a ferromanganese smelter – have had their expected operational dates pushed back to 2021 from 2020.

“We have to be realistic. We will help those facilities that proceed with their development,” he said, adding that his office continued to find investors and electricity suppliers, among other things, for the delayed smelter projects.

The pandemic-led investment shortfalls have added further delays to Indonesia’s ambitious smelter-development plan, which is part of a larger plan to transform the mineral-rich country from a commodity-driven economy to an industrial economy.

IMA-Daily Update Page 13

Among the bigger smelter projects facing delays are those being developed by state-owned mining holding company MIND ID, officially PT Indonesia Asahan Aluminium (Inalum), and its subsidiaries.

“Our partners cannot operate [normally] so that automatically means there will be delays whether we like it or not,” said MIND ID president director Orias Petrus Moerdak on Tuesday.

Six downstream mining projects under MIND ID

Some of the projects are expected to fully resume in October, added Orias, who was speaking before House of Representatives lawmakers in Jakarta. Meanwhile, the other projects resumed early work this month.

MIND ID subsidiary PT Aneka Tambang (Antam), a diversified miner, has put on hold a 98 percent complete $289 million ferronickel smelter in East Halmahera, Maluku, because of a lack of electricity.

Antam president director Dana Amin said the miner initially enlisted private consortium BGP to develop a power plant for the smelter but ended the deal because of “financial problems”.

“There was a lack of risk management,” he said.

Meanwhile, fellow subsidiary PT Timah, a tin miner, has brought in construction equipment to the site of its $80 million tin smelter in West Bangka, Bangka Belitung province.

“They are still waiting for an opportunity for the contractors to enter Bangka,” said Orias, adding that developers were focused on designing the facility in the meantime.

PT Freeport Indonesia, a gold and copper miner, has requested a one-year delay in the completion deadline of its $3 billion smelter in Gresik, East Java, to 2023.

Coal exports to India fell, this was anticipated by the Ministry

of ESDM Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

THE GOVERNMENT through the Ministry of Energy and Mineral Resources (ESDM) is observing the downward trend in coal demand from India.

Director of Coal Development and Business of the Ministry of ESDM Sujatmiko admitted, during January to May 2020, Indonesian coal exports to India only reached 70% of the realization in the same period last year.

Ekspor batubara ke India turun, begini langkah antisipasi

Kementerian ESDM Reporter: Dimas Andi | Editor: Anna Suci

Perwitasari

PEMERINTAH melalui Kementerian Energi dan Sumber Daya Mineral (ESDM) men-cermati tren penurunan permintaan batu-bara dari India.

Direktur Pembinaan dan Pengusahaan Batu-bara Kementerian ESDM Sujatmiko mengaku, selama Januari hingga Mei 2020, ekspor batu-bara Indonesia ke India baru mencapai 70% dari realisasi di periode yang sama tahun lalu.

IMA-Daily Update Page 14

"The Ministry of ESDM has made contact with various coal stakeholders and buyers in India," he said in a webinar, Thursday (2/7).

Beyond that, the government is also preparing a short-term strategy to anticipate slowing coal demand from India. One of them is by exploring new coal markets such as Bangladesh, Pakistan, Sri

Lanka, and Brunei Darussalam.

In addition, the government is trying to

improve the ability of coal absorption in the domestic market. For example, by selling coal to mineral smelter companies.

"The need for coking coal is quite high for mineral processing smelters," he added.

The use of coal as briquettes is also being studied in depth by the Ministry of ESDM. Moreover, briquettes have the potential to

sell well and are used by SMEs.

The government's long-term strategy is to strengthen the coal downstream program. Sujatmiko said the government was encouraging companies in the Coal Mining Business Contract Agreement (PKP2B) to

build smelters and intensify the down-stream coal industry.

"Coal-derived products are expected to

develop in Indonesia so that they have

added value," he explained.

Just for the record, Deputy Chairman of the Indonesian Coal Mining Association (APBI) Mochamad Kurnia Ariawan explained, the volume of Indonesian coal exports to India last year reached 122.3 million tons or 27% of the total national coal exports.

This amount is only less than China, which is Indonesia's largest coal ex port destination country of 147.2 million tons or 33% of the total national coal exports.

“Kementerian ESDM sudah melakukan kontak dengan berbagai stakeholder batu-bara dan pembeli di India,” ujar dia dalam sebuah webinar, Kamis (2/7).

Di luar itu, pemerintah juga menyiapkan strategi jangka pendek guna mengantisipasi perlambatan permintaan batubara dari India. Salah satunya dengan menjajaki pasar batubara baru seperti Banglades, Pakistan, Sri Lanka, hingga Brunei Darussalam.

Selain itu, pemerintah berusaha untuk me-ningkatkan kemampuan penyerapan batu-bara di pasar domestik. Misalnya dengan menjual batubara ke perusahaan-perusaha-an smelter mineral. “Kebutuhan batubara kokas cukup tinggi bagi smelter pengolah mineral,” imbuh dia.

Pemanfaatan batubara sebagai briket juga tengah dikaji secara mendalam oleh Kemen-terian ESDM. Terlebih lagi, briket berpotensi laris manis dimanfaatkan oleh para pelaku UMKM.

Adapun strategi jangka panjang pemerintah adalah memperkuat program hilirisasi batu-bara. Sujatmiko menyebut, pemerintah men-dorong perusahaan-perusahaan Perjanjian Kontrak Pengusahaan Pertambangan Batu-bara (PKP2B) untuk membangun smelter dan menggencarkan industri hilir batubara.

“Produk turunan batubara diharapkan bisa berkembang di Indonesia sehingga punya nilai tambah,” terang dia.

Sekadar catatan, Wakil Ketua Asosiasi Pertambangan Batubara Indonesia (APBI) Mochamad Kurnia Ariawan menjelaskan, volume ekspor batubara Indonesia ke India pada tahun lalu mencapai 122,3 juta ton atau 27% dari total ekspor batubara nasional.

Jumlah ini hanya kalah dari China yang menjadi negara tujuan ekspor batubara terbesar Indonesia sebesar 147,2 juta ton atau 33% dari total ekspor batubara nasional.

IMA-Daily Update Page 15

He also noted, during the period 2017 to 2019, there was an increase in coal exports to India around 10%-11% per year. However, as the corona virus spreads around the world, coal demand from India has begun to shrink by around 20% throughout 2020.

Indonesian Ambassador to India and Bhutan Sidharto Reza Suryodipuro added, in addition to the corona virus pandemic, the decline in exports was also caused by Indian government policies that encourage the use of domestic coal.

To make this happen, there is a privatization policy for coal mines whose implementation is the auction of 41 coal mines in India.

Ia juga mencatat, selama periode 2017 hingga 2019, terdapat kenaikan ekspor batubara ke India sekitar 10%-11% per tahun. Namun, seiring mewabahnya virus corona di seluruh dunia, permintaan batu-bara dari India mulai menyusut sekitar 20% sepanjang 2020 berjalan.

Duta Besar Indonesia untuk India dan Bhutan Sidharto Reza Suryodipuro menam-bahkan, selain pandemi virus corona, penu-runan ekspor juga disebabkan kebijakan pemerintah India yang mendorong peman-faatan batubara hasil produksi dalam negeri.

Guna mewujudkannya, terdapat kebijakan privatisasi tambang batubara yang imple-mentasinya adalah pelelangan terhadap 41 tambang batubara di India.

PT Timah Tbk (TINS) released 100% of Indometal Corporation

shares to Mind ID Reporter | Editor: Titis Nurdiana

PT TIMAH Tbk (TINS) released PT

Indometal Corporation (Asia Pacific) Pte Ltd (IMAP) to PT Inalum or MIND ID, a holding of a State -Owned Enterprise

(BUMN) in the mining sector.

Timah released 50,000 shares or 100% shares of its grandchildren (IMAP) worth US$ 398,500 to MIND ID. Transactions were carried out on 29 June 2020. "This corporate action is aimed at realizing a strategic initiative by focusing on the commercial function of MIND ID," said Corporate Secretary of PT Timah Abdullah Umar in the disclosure of com pany information, (1/7).

PT Timah Tbk (TINS) melepas 100% saham Indometal Corporation ke Mind ID

Reporter | Editor: Titis Nurdiana

PT TIMAH Tbk (TINS) melepas PT

Indometal Corporation (Asia Pasific) Pte Ltd (IMAP) kepada PT Inalum atau MIND ID, holding Badan Usaha Milik Negara

(BUMN) di sektor pertambangan.

Timah melepas 50.000 unit saham atau 100% saham cucu usahanya (IMAP) senilai US$ 398.500 ke MIND ID. Transaksi dilakukan pada 29 Juni 2020 lalu. “Aksi korporasi ini demi mewujudkan inisiatif strategis dengan memusatkan fungsi komersial MIND ID,” ujar Sekretaris Perusahaan PT Timah Abdullah Umar dalam keterbukaan informasi perusahaan, (1/7).

IMA-Daily Update Page 16

The strategic location of IMAP in inter-national distribution channel countries will increase the transaction volume of MIND ID mining commodities, so that opportunities as global market leaders can be achieved.

Abdullah further revealed, IMAP will become an integrated marketing agency that has a strategic role in supporting the increase in the business scale of companies under the MIND ID.

MIND ID integrates the marketing of mining commodities such as gold, tin, nickel, ferronickel, bauxite, aluminum, and coal so that they can become the first hand one-stop market for MIND ID consumers.

Quoted from the disclosure of information in KONTAN Daily, as the granddaughter of Timah company, IMAP was established November 29, 2018 based on the laws of Singapore. The company, which is a marketing agent, is 100% owned by a subsidiary of PT Timah namely Indometal (London) Limited, which has been operating in London since 1988.

Until the first quarter of 2020, PT Timah recorded 15,217 tons of tin ore production, consisting of 84% from land mining, while 16% came from sea mining.

The metal production volume reached 14,133 Mton with a metal sales volume of 17,553 Mton.

In the same period, TINS's consolidated revenue reached Rp 4.4 trillion, up 5% compared to the first quarter of 2020, which was Rp 4.2 trillion. Refined tin sales contributed Rp 4.2 trillion, tin solder and tin chemical respectively Rp 9.3 billion and Rp 102.4 billion.

Changes in market conditions due to the corona pandemic or Covid-19 require Timah to adapt by implementing a number of efficiency strategies, including reducing operational expenditure by up to 30%.

Lokasi strategis IMAP di negara jalur distribusi internasional akan meningkatkan volume transaksi komoditas tambang MIND ID, sehingga peluang sebagai pemimpin pasar tingkat global bisa tercapai.

Lebih lanjut Abdullah mengungkapkan, IMAP akan menjadi integrated marketing agency yang memiliki peran strategis dalam men-dukung peningkatan skala bisnis perusahaan-perusahaan yang bernaung di bawah MIND ID.

MIND ID melakukan integrasi pemasaran komoditas tambang seperti emas, timah, nikel, feronikel, bauksit, aluminium, dan batubara sehingga bisa menjadi first hand one-stop market bagi konsumen MIND ID.

Dikutip dari keterbukaan informasi di Harian KONTAN, sebagai cucu perusahaan Timah, IMAP berdiri 29 November 2018 berdasarkan hukum negara Singapura. Perusahaan yang menjadi agen pemasaran tersebut, 100% dimiliki anak perusahaan PT Timah yaitu Indometal (London) Limited yang beroperasi di London sejak tahun 1988.

Hingga kuartal I-2020, PT Timah mencatat-kan produksi bijih timah sebesar 15.217 ton yang terdiri atas 84% berasal dari penam-bangan darat, sedangkan 16% berasal dari penambangan laut.

Adapun volume produksi logam mencapai 14.133 Mton dengan volume penjualan logam sebesar 17.553 Mton.

Pada periode yang sama, pendapatan konso-lidasian TINS mencapai Rp 4,4 triliun naik 5% dibandingkan kuartal I 2020 sebesar Rp 4,2 triliun. Penjualan logam timah berkontribusi Rp 4,2 triliun, tin solder dan tin chemical masing-masing sebesar Rp 9,3 miliar dan Rp 102,4 miliar.

Perubahan kondisi pasar akibat pandemi corona atau Covid-19 mengharuskan Timah beradaptasi dengan melakukan sejumlah strategi efisiensi , antara lain mengurangi operational expenditure sampai dengan 30%.

IMA-Daily Update Page 17

"While capital expenditure is prioritized to support the achievement of production targets," Abdullah said.

“Sedangkan capital expenditure diprioritas-kan untuk mendukung pencapaian target produksi,” ujar Abdullah.

Covid-19 Effects, Copper Manufacturer in Chile Stops

Temporary Operation Pandu Gumilar

BHP Group announced a temporary reduction in copper production in Chile due to the effects of the corona virus pandemic (Covid-19). Chile is one of the largest copper producers in the world.

Launching from Bloomberg, reduced production due to unions in Chile is pushing for safer conditions because more workers have fallen i ll amid the corona virus pandemic.

Covid-19 infections began to explode in Chile six weeks ago, in a brand-new BHP policy saying the company would significantly reduce activity and cut its workforce.

The decision has sparked fears of investors for fear that other copper producers cannot maintain production at a high level amid the spread of the virus.

In trading in Sydney, BHP shares fell 0.9 percent at 10:53 local time while the Australian composite stock index rose 0.5 percent. BHP Group's Cerro Colorado mine in Chile produced 71,700 tons last year, smaller than the mining company Escondida, which produced 1.2 million tons.

The move follows the decision of Chilean state-owned Codelco to stop smelting copper in Chuquicamata. Supply concerns have pushed prices back to above US$ 6,000 per ton on the London Metal Exchange.

Akibat Covid-19, Produsen Tembaga di Chili Setop Operasi

Sementara Pandu Gumilar

BHP Group mengumumkan pengurangan sementara produksi tembaga di Chili akibat dampak pandemi virus corona (Covid-19). Chili adalah salah satu produsen tembaga terbesar di dunia.

Melansir dari Bloomberg , pengurangan produksi akibat serikat pekerja di Chili mendorong kondisi yang lebih aman karena lebih banyak pekerja jatuh sakit di tengah pandemi virus corona.

Infeksi Covid-19 mulai meledak di Chili enam minggu lalu, dalam kebijakan anyar BHP mengatakan perseroan akan secara signifi-kan mengurangi kegiatan dan memangkas tenaga kerja.

Keputusan itu telah memicu kekhawatiran para investor karena khawatir penghasil tembaga lain tidak dapat mempertahankan produksi pada tingkat yang tinggi di tengah penyebaran virus.

Dalam perdagangan di Sydney, saham BHP turun 0,9 persen pada 10:53 waktu setempat sedang-kan indeks saham gabungan Australia naik 0,5 persen. Tambang Cerro Colorado milik BHP Group di Chili memproduksi 71.700 ton tahun lalu, lebih kecil dari Escondida perusahaan tambang, yang menghasilkan 1,2 juta ton.

Langkah itu mengikuti keputusan perusahaan milik negara Chili, Codelco untuk berhenti melebur tembaga di Chuquicamata. Kekhawa-tiran pasokan telah mendorong harga kembali ke atas US$6.000 per ton di London Metal Exchange.

IMA-Daily Update Page 18

On Thursday (2/7/2020) exactly three months copper prices rose by as much as 0.6 percent to US$ 6,099.50, with the benchmark now almost erasing year-to-date losses.

On the other hand, there was an increase in labor tension. A union group rallied asking the government to stop mining operations for 14 working days and quarantine.

They chose not to include the request in a letter to the mining ministry to seek stricter safety rules and greater transparency.

To date, the copper mining industry continues to operate with a reduction in staff and delaying activities such as maintenance and removal of land in preparation for future output. But with Chile becoming the center of a new virus, authorities have tightened restrictions on the movement of the people.

On Wednesday, seven unions representing around 80 percent of mine workers and contractors asked the government to set up a task force to increase protection.

Hundreds of sick workers and nine deaths are proof that the sustainability of operations takes priority over safety, they said in a letter to the minister. Editor: Rivki Maulana

Pada hari Kamis, (2/7/2020) tepat tiga bulan harga tembaga naik sebanyak 0,6 persen men-jadi US$ 6.099,50, dengan patokan sekarang hampir menghapus kerugian tahun-ke-tanggal.

Di sisi lain, terjadi peningkatan ketegangan tenaga kerja. Sebuah kelompok serikat pekerja berunjuk rasa meminta pemerintah untuk menghentikan operasi tambang selama 14 hari kerja dan melakukan karantina.

Mereka memilih tidak memasukkan permintaan itu dalam surat ke kementerian pertambangan untuk mencari aturan keselamatan yang lebih ketat dan transparansi yang lebih besar.

Hingga saat ini, industri pertambangan tembaga terus beroperasi dengan pengurangan staf dan menunda kegiatan seperti pemeliharaan dan pemindahan tanah dalam persiapan untuk output di masa depan. Tetapi dengan Chili menjadi pusat virus baru, pihak berwenang telah memperketat pembatasan pada per-gerakan masyarakat.

Pada hari Rabu, tujuh serikat buruh mewakili sekitar 80% pekerja tambang dan kontraktor meminta pemerintah untuk mendirikan gugus tugas untuk meningkatkan perlindungan.

Ratusan pekerja yang sakit dan sembilan kematian adalah bukti bahwa kesinambungan operasi lebih diprioritaskan daripada kese-lamatan, kata mereka dalam surat kepada menteri. Editor : Rivki Maulana

Attention! Indonesia's Reference Coal Price Lowest in 4 Years

THE STRENGTHENING of the price of crude oil also brings blessings to the price of coal. But bad news came from within the country, the reference coal price (HBA) in July was set lower than the previous month.

Perhatian! Harga Batu Bara Acuan RI Terendah dalam 4 Tahun

MENGUATNYA harga minyak mentah turut membawa berkah bagi harga batu bara. Namun kabar kurang mengenakkan datang dari dalam negeri, harga batu bara acuan (HBA) bulan Juli dipatok lebih rendah dari bulan sebelumnya.

IMA-Daily Update Page 19

Yesterday (2/7/2020), Newcastle coal prices for busy contracts traded yesterday shot 2.83% to US$ 54.5/ton. Understandably previously the price of coal was depressed. But with the strengthening of crude oil prices yesterday helped hoist coal prices.

Crude oil and coal are primary energy sources. Relaxation of the lockdown and opening of the economy have made public mobility improved. This raises the hope that demand for fuel for both transportation and industry will gradually increase.

Despite significant gains yesterday, the market is still overshadowed by a variety of risks. The surge in Covid-19 cases globally was recorded at more than 218.6 thousand in a day on July 1, 2020. This is the highest record ever recorded since the outbreak.

Responding to this phenomenon, WHO recommends that lockdown be re-applied in countries with a significant increase in the number of cases. Leicester and Beijing which experienced a surge in cases have implemented local lockdowns.

If the lockdown is increasingly escalated, what is feared is the demand for coal, especially for the commercial and indus-trial sectors, is increasingly depressed. Yet when the economy began to reopen the market was still relatively lethargic.

China and India which are the biggest coal consumers in the world began to focus on absorbing domestic coal supply and reducing its imports. Even though China and India are coal export destinations for Indonesia.

Weak demand for coal across the sea (seaborne), made Indonesia as one of the producers decided to cut production. On Wednesday (1/7/2020) the Indonesian coal mining business association (APBI) asked its members to cut output by 15% - 20% from the initial target.

Kemarin (2/7/2020), harga batu bara New-castle untuk kontrak yang ramai diperjual-belikan kemarin melesat 2,83% ke US$ 54,5/ton. Maklum sebelumnya harga batu bara sempat tertekan. Namun dengan menguatnya harga minyak mentah kemarin turut mengerek naik harga batu bara.

Minyak mentah dan batu bara merupakan sumber energi primer. Relaksasi lockdown dan pembukaan ekonomi membuat mobilitas publik membaik. Hal ini memunculkan adanya harapan bahwa permintaan terhadap bahan bakar baik untuk transportasi dan industri ber-angsur naik.

Meski menguat signifikan kemarin, pasar masih dibayangi oleh berbagai risiko. Lonjakan kasus Covid-19 secara global tercatat mencapai lebih dari 218,6 ribu dalam sehari pada 1 Juli 2020. Ini merupakan rekor pertambahan ter-tinggi yang pernah tercatat sejak merebak.

Merespons fenomena ini, WHO menyarankan agar lockdown kembali diterapkan di negara-negara dengan peningkatan jumlah kasus yang signifikan. Leicester dan Beijing yang mengalami lonjakan kasus sudah me-nerapkan lockdown lokal.

Jika lockdown semakin tereskalasi maka yang ditakutkan adalah permintaan terhadap batu bara terutama untuk sektor komersial dan industri semakin tertekan. Padahal ketika ekonomi mulai dibuka kembali pasar masih tergolong lesu.

China dan India yang merupakan konsumen batu bara terbesar di dunia mulai fokus untuk menyerap pasokan batu bara domestik dan mengurangi impornya. Padahal China dan India merupakan negara destinasi ekspor batu bara bagi Indonesia.

Lemahnya permintaan batu bara lintas laut (seaborne), membuat Indonesia sebagai salah satu produsen memutuskan untuk melakukan pemangkasan produksi. Pada Rabu (1/7/2020) asosiasi pengusaha tambang batu bara RI (APBI) meminta anggotanya untuk memangkas output sebesar 15% - 20% dari target awal.

IMA-Daily Update Page 20

For information, Indonesia is targeting coal production this year to reach 550 million tons. Weakening demand and high coal stockpiles in various countries made HBA lower.

Reuters reported, Indonesia's HBA for July was pegged at US$ 52.16/ton lower than in May at US$ 52.98/ton. This is the lowest price since June 2016 or the lowest in the last four years.

At the same time, Japan and South Korea's imports are also predicted to be low. Especially with the abundant supply of natural gas and cheap prices will tend to make the two countries switch to gas. So that the price of coal that shot up is still prone to correction. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Sebagai informasi, Indonesia menargetkan produksi batu bara tahun ini sebanyak 550 juta ton. Pelemahan permintaan dan tinggi-nya stok batu bara di berbagai negara mem-buat HBA dipatok lebih rendah.

Reuters melaporkan, HBA RI untuk bulan Juli dipatok di US$ 52,16/ton lebih rendah dari bulan Mei di US$ 52,98/ton. Ini menjadi harga terendah sejak bulan Juni 2016 atau terendah dalam empat tahun terakhir.

Bersamaan dengan itu, impor Jepang dan Korea Selatan juga diprediksi akan rendah. Apalagi dengan melimpahnya pasokan gas alam serta murahnya harga akan cenderung membuat kedua negara itu beralih ke gas. Sehingga harga batu bara yang melesat memang masih rawan terkena koreksi. TIM RISET CNBC INDONESIA (twg/twg)

Rio Tinto braces for massive Oyu Tolgoi cost blowout Vanessa Zhou

RIO Tinto has recommended a new underground mine design for the Oyu Tolgoi copper-gold operation in Mongolia, bumping up its development capital by $1.3–$1.8 billion.

This concerns Panel 0 of the Hugo Dummett North underground mine at Oyu Tolgoi, with the updated feasibility study (FS) validating the caving method of mining.

The design will cause a delay of 21 to 29 months for Oyu Tolgoi’s first sustainable production compared with the original FS guidance in 2016.

Rio Tinto originally flagged a $5.3 billion development capital for Oyu Tolgoi.

When the underground mine is complete, Oyu Tolgoi will be the world’s third largest copper mine.

According to Rio Tinto chief executive of copper and diamonds, Arnaud Soirat, the amended design is a positive step in the development of the underground mine as it will unlock the most valuable part of Oyu Tolgoi.

“We remain focussed on delivering the underground project safely and within the guidance ranges we have announced on both cost and schedule,” Soirat said.

Rio Tinto flagged some stability risks associated with the original mine design last year.

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The updated design retains two in-situ rock pillars on either side of Panel 0 for geotechnical stability instead of within the mining area.

Rio Tinto will also shift the material contained in the pillars from ore reserves to mineral resources, to be recoverable at a later stage.

Optimisation of mine designs for Panels 1 and 2 is ongoing, which may result in further movements in reclassifications of ore reserves and mineral resources.

Mining zone is sub-blocked into Panel 0, Panel 1 and Panel 2 to reduce risk and increase productivity.

The Hugo Dummett deposit is a typical copper-gold porphyry system with associated high sulphidisation mineralisation.

Rio Tinto owns 33.5 per cent of Hugo Dummett North and 29.5 per cent of Hugo Dummett North extension.

Once in production, ore will be processed through the existing crushing, milling and flotation circuit to produce a copper concentrate with gold and silver as byproduct.

Oyu Tolgoi is jointly owned by Rio Tinto and the government of Mongolia.

China's Shenhua stops selling spot domestic coal for July: sources Author: Jenny Ma, Editor: Daniel Lalor

CHINESE coal miner Shenhua has temporarily stopped offering cargoes in the spot market, citing a supply shortage, sources said July 2, citing a company notification to buyers.

Strong demand for Chinese coal and Shenhua's obligation to supply under long-term contracts were cited as reasons for the supply tightness, the sources said, adding the move has boosted Chinese domestic coal prices.

Followed the announcement, no offers for spot cargoes of Chinese coal were heard from Shenhua, traders in China said.

"Demand for Chinese coal is too good, hence ports are congested," a Singapore-based trader said.

A shortage of ships in northern China meant Qinhuangdao port stocks rose despite improved demand, sources said.

"Most recently, even Chinese domestic coal supply is short as buyers compete for coal, driving up Chinese domestic coal prices," a south China-based trader said.

Chinese domestic coal offer prices for 5,500 kcal/kg NAR grade inched up to Yuan 578-Yuan 583/mt FOB Qinhuangdao [$81.8-$82.5/mt] July 2, up Yuan 5/mt day on day.

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Meanwhile, a south China-based trader said a large proportion of Chinese domestic coal were fixed on a medium- to long-term basis between Chinese miners and utilities, meaning the impact on market prices could be moderate.

Endeavour becomes West Africa’s top gold miner Cecilia Jamasmie

CANADA’s Endeavour Mining (TSX:EDV) said on Thursday it had completed the C$1 billion

($732 million) acquisition of smaller rival Semafo, which has created West Africa’s top gold producer.

With the merger completed, Semafo’s president and chief executive Benoit Desormeaux has assumed the role of Endeavour’s new president.

Semafo’s chief financial officer, Martin Milette, was set to be group CFO, but he has informed Endeavour that, for personal reasons, he won’t be able to relocate to London.

Henri de Joux, executive VP of people and information technology at Endeavour, will act as interim CFO, the company said.

The deal, announced in March, has brought together six mines with strong cash flows into one portfolio. Combined reserves stand at 10.5 million ounces, and measured and indicated resources, 20.7 million ounces.

Guidance update

Endeavour, which has seen its share price rise by more than 60% since it announced it was acquiring Semafo, said it expected to produced more than one million ounces of gold this year.

The company expects to generate C$750 million of operating cash flow this year, which will help boost its balance sheet.

The West Africa-focused miner will update its 2020 production and cost guidance, incorporating Semafo’s operations in its second-quarter financial and operating results, scheduled to be published in early August.

Endeavour and Semafo had previously worked as industry partners. In 2019, they began a dialogue to evaluate the merits of a business combination, but were unable to reach a deal. Talks resumed earlier this year.

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Codelco warns more restrictions on copper mines would be 'catastrophic' - report

By: Reuters

CHILE's State-run Codelco, the world´s top copper producer, warned on Thursday any move to ramp up restrictions on its mines amid the coronavirus outbreak would be "catastrophic" for the country, the company´s chief executive said in an interview in a local daily newspaper.

CEO Octavio Araneda said the miner, which turns over all its profits to government coffers, had acted quickly and proactively to contain the virus, despite increasing criticism from unions and politicians in recent weeks.

"Once the pandemic is past, every peso we generate will help to lift our country tomorrow," Araneda said in the interview.

The mining giant said in April and May it had held output and shipments of copper steady despite the growing crisis. But the exploding pandemic in the South American nation has boosted the company´s infection tally and led to calls for further restrictions.

Union groups say at least 2 300 of Codelco's workers have been infected. Araneda downplayed the figures, saying they were on par with the rest of the industry.

"Let´s look at this in context: We have almost 70 000 staff, between our own workers and contractors, that´s why the numbers are high," he said.

Araneda touted safety measures the company has taken, including longer shift rotations at its flagship El Teniente mine and temporarily shutting down its Chuquicamata smelter and refinery. He said the company was working with as much as a 50% reduction in staff.

The move to shut down the Chuquicamata smelter would cost the miner $7-million a month, Araneda said, and force it to ship copper concentrate instead of cathode.

That would boost total costs in the division by about 5%, he said in the interview.

US coal exports drop to 3.5-year low in May: Census Author: Tyler Godwin, Editor: Richard Rubin

US coal exports tumbled to a 3.5-year low 4.28 million mt in May, as metallurgical and bituminous coal both saw declines, while subbituminous exports rose on the month, according to US Census Bureau data released July 2.

May coal exports were down 13.9% from 4.97 million mt in April and the lowest since 3.88 million mt was exported in September 2016.

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Thermal exports fell to 1.58 million mt in May, down 14.6% from April and 54.2% lower year on year.

Year-to-date thermal exports are at 10.96 million mt, down 35.6% from the first five months of 2019 and the lowest since 5.58 million mt was exported in 2016.

The top originating ports for thermal coal this year are Baltimore at 3.86 million mt and Seattle at 2.51 million mt, compared with 5.45 million mt and 1.35 million mt, respectively, a year ago. Norfolk, Virginia, and New Orleans, also shipped out 1.52 million and 1.44 million mt, compared with 1.42 million mt and 5.24 million mt in the first five months of 2019.

Bituminous exports were at 1.07 million mt in May, down 26.3% from April and 67.6% from a year ago.

Egypt received the largest volume of bituminous coal at 288,429 mt in May, compared with zero in April and 334,355 mt in the year-ago month.

Rounding out the top three were the Dominican Republic and Japan, which took deliveries of 172,200 mt and 133,127 mt of bituminous coal in May, compared with 245,000 mt and 308,909 mt, respectively, in April.

India, the largest importer of bituminous coal, did not receive any US coal in May, the first time in over nine years.

Subbituminous exports were at 455,964 mt in May, up 20.8% from April and up nearly fourfold than a year ago.

South Korea received an eight-month high 455,590 mt of subbituminous coal, up from 256,985 mt in April and 45,523 mt in the year-ago month. After receiving 75,961 mt and 44,648 mt in April, respectively, Japan and Mexico did not import any subbituminous coal in May.

Year-to-date bituminous exports are down 41.7% on the year at 8.71 million mt, while subbituminous exports are at 2.13 million mt, up 10%, respectively.

For the year, the top bituminous coal export destinations are India, at 3.6 million mt compared with 4.45 million mt in the year-ago period; Dominican Republic, at 883,832 mt compared with 257,581 mt; Japan, at 776,182 mt compared with 1.75 million mt; South Korea, at 728,796 mt compared with 439,322 million mt; and the Netherlands, at 661,631 mt compared with 2.32 million mt.

The top importing countries of US subbituminous coal for the first five months are South Korea, at 1.73 million mt compared with 1.01 million mt last year; Mexico, at 203,112 compared with 642,163 mt; and Japan, at 151,664 mt, compared with zero in the first five months.

Met coal exports fall 13.4% on month

Metallurgical coal exports fell to 2.71 million mt in May, down 13.4% from 3.13 million mt in April and 43.7% lower year on year. It was the lowest monthly exports for met coal since 2.57 million mt in September 2016.

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Turkey took delivery of 295,199 mt in May, down from 534,280 mt in April and 318,880 mt in the year-ago month. Canada imported 293,332 mt in May, up from 307,164 mt in April, while Brazil and the Netherlands took delivery of 275,876 mt and 271,127 mt, respectively, compared with 366,157 mt and 166,688 mt in April.

Year-to-date met exports are at 16.42 million mt, down 24% from the same period a year ago.

For the year, the top metallurgical coal export destinations are Brazil, at 4.12 million mt compared with 5.34 million mt in the year-ago period; India, at 2.38 million mt compared with 2.94 million mt; the Netherlands at 1.96 million mt compared with 4.06 million mt; South Korea, at 1.61 million mt compared with 1.12 million mt; and Ukraine, at 1.6 million mt, compared with 2.19 million mt a year ago.

GlobalData: Global iron ore consumption to drop by 2.8% Published by John Williams, Editorial Assistant

THE IMPACT of COVID-19 on the mining industry has been strained by the struggling global automotive industry, which consumes approximately 17% of iron ore globally. Global light vehicle sales fell by 24% in 1Q20, then 47.5% in April and 33.8% in May.

Although sales were boosted by improvements in China in May, where light vehicle sales rose by 8.1% y/y, over the second quarter global sales are expected to drop by 34%. Slow demand in the automotive space will have a knock-on effect and reduce demand for iron ore, says GlobalData, a leading data and analytics company.

Vinneth Bajaj, Senior Mining Analyst at GlobalData, comments: “COVID-19 is expected to significantly impact global iron ore consumption, which is projected to drop by 2.8% to reach 2034.6 million t in 2020. This drop reflects how the market has been directly affected by COVID-19, with workers unable to get to sites and severe disruption to the delivery of key

materials and equipment, as well as the impact of widespread disruption to economic activity.

Due to the likely drop in investment, with planned projects in commercial and industrial buildings sectors potentially being put on hold or cancelled, GlobalData expects the global construction output to contract by 2.8% in 2020.

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Bajaj concluded: “Only once the virus is under control can the industry rebound and global demand return. In the long-term, it is expected that global iron ore consumption will grow at a compound annual growth rate (CAGR) of 1.3% over the forecast-period (2021 - 2024), to reach 2193.8 million t in 2024 – supported by a strong demand for growth in India and China, alongside continuous development across Russia, Japan, South Korea and Brazil.

Carrying coals to Germany: Imports still vital despite sagging demand In line with a government program, Germany will shutter its coal-powered plants to

drastically reduce CO2 emissions. But until this coal exit is completed in 2038, Europe's powerhouse will need more imports.

ENERGY generation in Germany by burning lignite and hard coal has decreased significantly in the past couple of years. The government's resolve to exit coal as an energy source by 2038 as part of a larger climate protection program is bound to accelerate this trend.

The country is also phasing out nuclear energy, meaning that renewables — wind and solar in particular — will have to assume an ever increasing role in providing the nation with the energy it needs to keep playing in the top league of industrialized nations.

But a complete coal exit is almost two decades away. Right now, coal-based energy generation in Germany still accounts for roughly a quarter of the total energy produced.

What's relevant in this context is that hard coal mining has already been stopped in the country. The last mine at Bottrop in western Germany closed as early as December 2018.

The same fate is eventually awaiting the coal-fired power plants. Under the current coal exit scheme, all remaining coal-powered stations will shut down by 2038.

The controversial opening in May of a new such power plant, Datteln 4, in the German state of North Rhine-Westphalia, is viewed as a bad joke by environmentalists, but will not change the overall strategy that envisages eventually cutting the nation's CO2 emissions by a quarter within the next 18 years (Germany aims to cut all greenhouse gas emissions to 55% of its 1990 levels by 2030).

With all hard coal mines closed, where does Germany get its coal from then?

The German Coal Importers Association (VDKi) provides some interesting insights. While there's been a lot of debates about Germany (and the rest of the EU) being too dependent on Russian gas supplies, you hardly hear anything about Russia having been Germany's main supplier of hard coal for years on end.

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Last year, Germany's hard coal imports from Russia (including steam and coking coal) made up 45% of all shipments from abroad. Another 19% came from the US, with fellow EU nations combined and Australia sharing third position at 11% each. All in all, Germany imported 40.2 million tons of hard coal in 2019, down from 47.1 million tons a year earlier.

As long as these coal imports exist, Germany will only be relocating some of its environmental footprint abroad. Of all the nations where Germany gets hard coal from, two countries seem particularly problematic — Russia and Colombia. Reports by the media and environmental pressure groups suggest that safety, environmental and social standards in the mines there leave much to be desired.

Mining companies in Russia are often targeted by the country's Ecodefense campaigners and others, who claim that the firms in question are hardly ever held accountable for any environmental damage and do not have to pay any fines.

In Colombia, there have been reports about forceful relocations of locals to make way for coal mines without being offered adequate compensation.

That hasn't kept Germany from importing coal from these countries. The rationale behind this is the far lower price per ton for imports from nations where mining is a lot easier and cost-efficient than it used to be in western Germany's hard coal areas. This means that even coal from faraway Australia is a bargain for Germany despite the extremely long transport routes and the resulting shipping costs involved.

Will Germany's coal imports be in free fall as of now?

According to VDKi statistics, hard coal imports dropped by around 15% already in 2019 year on year, equaling a reduction of 7 million tons. In the same period, imports of coking coal went down by 7% and imports of steam coal by 17%. That's a remarkable dip if seen against the backdrop of a renewed uptick in global trade in hard coal in 2019 (+0.7%) and a 2% increase in global hard coal production in the same year (7.2 billion tons).

It's important to note that electricity generation from hard coal in Germany

decreased by a staggering 31% during the period under review. Even more indicative of the road ahead is the 50% drop in energy generation from hard coal within just three years.

The reason behind this is not just the surge of power generation from renewable sources. Coal has also been losing a battle with the more cost-efficient natural gas and been facing a disadvantage as the CO2 price has increased under the EU's emissions certificate trading scheme.

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While the role of hard coal (and lignite for that matter) in energy generation for households will become smaller and smaller by the year and already is almost irrelevant for heating, it will keep its importance for the iron- and steel-producing sectors for a longer time. But eventually, these industries will have to switch to something greener, too.

The German government has just rallied behind a multibillion-euro program by Economy Minister Peter Altmaier to let those sectors become green-hydrogen-powered industries before the coal exit is completed.