Daily News Update Page 1

TABLE OF CONTENTS

No. Title Media Source Page

1.

2.

3.

4.

5.

6.

7.

8.

9.

Most of Mining HPE Decreased Sebagian Besar HPE Tambang Menurun Lifted by nickel prices, Vale Indonesia (INCO) net profit soared 47,800% Terkerek harga nikel, laba bersih Vale Indonesia (INCO) meroket 47.800% Next year's coal production target is considered too optimistic Target Produksi Batu Bara Tahun Depan Dinilai Terlalu Optimistis During the Pandemic, Antam Successfully Optimized its Positive Performance Record Selama Pandemi, Antam Berhasil Optimalkan Catatan Kinerja Positif Counting Days, What is the Fate of the Mining Contract Extension of BUMI's Subsidiaries? Menghitung Hari, Bagaimana Nasib Perpanjangan Kontrak Tambang Anak Usaha BUMI? Chaotic Nickel, Smelter Agrees to Use Registered Surveyor at MEMR Kisruh Nikel, Smelter Setuju Pakai Surveyor Terdaftar di ESDM Gold Mine Will Be a Driver for the Performance of United Tractors (UNTR) Next Year Tambang emas akan jadi pendorong kinerja United Tractors (UNTR) tahun depan Vale Indonesia (INCO) Ready to Increase Production at the End of the Year Vale Indonesia (INCO) Siap Genjot Produksi di Akhir Tahun APBI: Coal exports are still dominant because domestic absorption is not significant APBI: Ekspor batubara masih dominan lantaran serapan di dalam negeri belum signifikan

Investor Daily Kontan Bisnis Liputan6 Bisnis CNBC Indonesia Kontan Bisnis Kontan

3

5

7

9

11

13

15

17

20

Daily News Update Page 2

10.

11.

12.

13.

14.

15.

16.

17.

Nearly to US$ 60/ton, Coal Prices Even Dropped Nyaris ke US$60/ton, Harga Batu Bara Malah Ambles Vale nearly doubles net profit as output recovers Metso Outotec wins order for a large iron ore pelletizing plant in China First Quantum ups copper production 10% Asian thermal coal demand to reach a billion tonnes a year Metso Outotec to discontinue North Bay operations as part of consumable wear parts restructuring Core sector shrinks less in Sept on higher coal output Australia’s ANZ bank to exit coal lending business by 2030

CNBC Indonesia Mining.com Metal Mining News Kitco News Australian Mining Int'l Mining MSN IEEFA

24

26

26

27

28

28

29

30

Daily News Update Page 3

Most of Mining HPE Decreased Sanya Dinda

(sanya.susanti@beritasatumedia.com)

INTERNATIONAL price fluctuations affect

the determination of the export benchmark price (HPE) of mining products subject to

export duty (BK) for the November 2020 period. Compared to the HPE for the

October 2020 period, most commodities experienced a decline in HPE. This

provision is stipulated in the Regulation of the Minister of Trade No. 85 of 2020, 23

October 2020.

“The HPE of mining products for the period of November 2020 that experienced

fluctuations, including washed bauxite, manganese concentrate, ilmenite and

bauxite, experienced an increase compared to the previous month. The prices of

several mining product commodities have increased due to increasing world

demand,” said the Director General of Foreign Trade at the Ministry of Trade,

Didi Sumedi, in an official statement, Thursday (29/10).

Didi added, copper concentrate, iron

concentrate, laterite iron (gutite, hematite, magnetite), lead concentrate, zinc

concentrate, iron sand concentrate, and rutile concentrate have decreased due to

the unstable industry as a result of the Covid-19 pandemic.

A number of mining products subject to BK are copper concentrate, iron concentrate,

laterite iron concentrate, iron sand concentrate, iron sand concentrate pellet,

manganese concentrate, lead concentrate, zinc concentrate, ilmenite concentrate,

rutile concentrate, and washed bauxite.

Sebagian Besar HPE Tambang Menurun Sanya Dinda

(sanya.susanti@beritasatumedia.com)

FLUKTUASI harga internasional me-mengaruhi penetapan harga patokan ekspor (HPE) produk pertambangan yang dikenakan bea keluar (BK) periode November 2020. Dibandingkan dengan HPE periode Oktober 2020, sebagian besar komoditas mengalami penurunan HPE. Ketentuan ini ditetapkan dalam Peraturan Menteri Perdagangan No. 85 Tahun 2020, tanggal 23 Oktober 2020.

“HPE produk pertambangan periode November 2020 yang mengalami fluktuasi, di antaranya komoditas konsentrat mangan, konsentrat ilmenit, dan bauksit yang telah dilakukan pencucian (washed bauxite) mengalami kenaikan dibandingkan periode bulan lalu. Harga beberapa komo-ditas produk pertambangan mengalami kenaikan dikarenakan adanya permintaan dunia yang meningkat,” kata Direktur Jenderal Perdagangan Luar Negeri Kemen-terian Perdagangan, Didi Sumedi, dalam keterangan resmi, Kamis (29/10).

Didi menambahkan, komoditas konsentrat tembaga, konsentrat besi, besi laterit (gutit, hematit, magnetit), konsentrat timbale, konsentrat seng, konsentrat pasir besi, dan konsentrat rutil mengalami penurunan dikarenakan industri belum stabil sebagai dampak pandemi Covid-19.

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

Daily News Update Page 4

HPE base price calculations for iron concentrate, laterite iron concentrate, iron sand concentrate, manganese concentrate, ilmenite concentrate and rutile concentrate are sourced from Asian Metal and Iron Ore Fine Australian. Meanwhile, copper concentrate, iron sand concentrate pellet, lead concentrate, zinc concentrate, and bauxite are sourced from the London Metal Exchange (LME).

Compared to the previous period, mining

products that experienced an average price increase in the November 2020 period

were manganese concentrate (Mn ≥ 49%) with an average price of US$ 213.63/WE or

an increase of 1.04%, ilmenite concentrate ( TiO2 ≥ 45%) with an average price of US$

289.35/WE or an increase of 1.96% and washed bauxite (Al2O3 ≥ 42%) with an

average price of US$ 23.88/WE or rose 1.12%.

Meanwhile, the product that decreased compared to the previous HPE was copper

concentrate (Cu ≥ 15%) with an average price of US$ 2,850.77/WE or a decrease of

1.77%, iron concentrates (hematite, magnetite) (Fe ≥ 62% and ≤ 1 percent

TiO2) with an average price of US$ 103.10/WE or down 6.40%, laterite iron

concentrates (gutite, hematite, magnetite) with levels (Fe ≥ 50% and (Al2O3 + SiO2) ≥

10%) with an average price of US$ 52.68/ WE or down 6.40%, lead concentrate (Pb ≥

56 percent) with an average price of US$ 740.22/WE or down 6.64%, concentrate

zinc (Zn ≥ 51%) with an average price of US$ 597.68/WE or a decrease of 7.05%;

iron sand concentrate (lamella magnetite-ilmenite) (Fe ≥ 56%) with an average price

of US$ 61.56/WE or a decrease of 6.40%, and rutile concentrate (TiO2 ≥ 90%) with

an average price of US$ 848.44/WE or down 0.89%.

Perhitungan harga dasar HPE untuk komo-ditas konsentrat besi, konsentrat besi laterit, konsentrat pasir besi, konsentrat mangan, konsentrat ilmenit, dan konsentrat rutil bersumber dari Asian Metal dan Iron Ore Fine Australian. Sedangkan konsentrat tembaga, pellet konsentrat pasir besi, konsentrat timbal, konsentrat seng, dan bauksit bersumber dari London Metal Exchange (LME).

Dibanding periode sebelumnya, produk pertambangan yang mengalami kenaikan harga rata-rata pada periode November 2020 adalah konsentrat mangan (Mn ≥ 49%) dengan harga rata-rata sebesar US$ 213,63/WE atau naik sebesar 1,04%, konsentrat ilmenit (TiO2 ≥ 45%) dengan harga rata-rata US$ 289,35/WE atau naik 1,96% dan bauksit yang telah dilakukan pencucian (washed bauxite) (Al2O3 ≥ 42%) dengan harga rata-rata US$ 23,88/ WE atau naik 1,12%.

Sedangkan produk yang mengalami penurunan dibandingkan dengan HPE periode sebelumnya adalah konsentrat tembaga (Cu ≥ 15%) dengan harga rata-rata sebesar US$ 2.850,77/WE atau turun sebesar 1,77%, konsentrat besi (hematit, magnetit) (Fe ≥ 62% dan ≤ 1 persen TiO2) dengan harga rata-rata USD 103,10/WE atau turun 6,40%, konsentrat besi laterit (gutit, hematit, magnetit) dengan kadar (Fe ≥ 50% dan (Al2O3 + SiO2) ≥ 10%) dengan harga rata-rata US$ 52,68/WE atau turun 6,40%, konsentrat timbal (Pb ≥ 56 persen) dengan harga rata-rata US$ 740,22/WE atau turun 6,64%, konsentrat seng (Zn ≥ 51%) dengan harga rata-rata US$ 597,68/WE atau turun 7,05%; konsentrat pasir besi (lamela magnetit-ilmenit) (Fe ≥ 56%) dengan harga rata-rata US$ 61,56/WE atau turun sebesar 6,40%, dan konsentrat rutil (TiO2 ≥ 90%) dengan harga rata-rata US$ 848,44/WE atau turun 0,89%.

Daily News Update Page 5

Meanwhile, iron sand concentrate (lamella magnetite-ilmenite) pellets (Fe ≥ 54) with an average price of US$ 117.98/WE did not change.

According to Didi, the HPE for the November 2020 period was determined after paying attention to various written inputs and coordination from various related agencies. Editor: Gora Kunjana

Sementara itu, pellet konsentrat pasir besi (lamela magnetit-ilmenit) (Fe ≥ 54) dengan harga rata-rata US$ 117,98/WE tidak mengalami perubahan.

Menurut Didi, HPE periode November 2020 ini ditetapkan setelah memper-hatikan berbagai masukan tertulis dan koordinasi dari berbagai instansi terkait. Editor : Gora Kunjana

Lifted by nickel prices, Vale Indonesia (INCO) net profit

soared 47,800% Reporter: Akhmad Suryahadi | Editor:

Khomarul Hidayat

PT VALE Indonesia Tbk (INCO) has

successfully achieved great performance. Quoting the financial report published Thursday (29/10), this nickel producer company posted a net profit of US$ 76.64 million or an annual increase of 47,800% from the net profit in the same period the previous year which was only US$ 160,000.

Profits skyrocketed because INCO's revenue rose 12.7% from the previous US$ 506.46 million to US$ 571.02 million in the third quarter of 2020. INCO recorded a shipment volume of 19,954 metric tons (MT) with revenues of US$ 210.6 million in the third quarter.

Meanwhile, the realized nickel price in the third quarter was 13% higher than the realized price in the second quarter. Nicolas Kanter, President Director and CEO of Vale Indonesia, said this slick performance was a result of shining nickel prices.

Terkerek harga nikel, laba bersih Vale Indonesia (INCO)

meroket 47.800% Reporter: Akhmad Suryahadi | Editor:

Khomarul Hidayat

KINERJA ciamik berhasil ditorehkan oleh

PT Vale Indonesia Tbk (INCO). Mengutip laporan keuangan yang diterbitkan Kamis (29/10), emiten produsen nikel ini mem-bukukan laba bersih senilai US$ 76,64 juta atau melesat hingga 47.800% secara tahunan, dari laba bersih pada periode sama tahun sebelumnya yang hanya US$ 160.000.

Laba meroket lantaran pendapatan INCO naik 12,7% dari sebelumnya US$ 506,46 juta menjadi US$ 571,02 juta di kuartal ketiga 2020. INCO mencatat volume pengiriman sebesar 19.954 metrik ton (MT) dengan pendapatan sebesar US$ 210,6 juta pada triwulan ketiga.

Sementara itu, harga realisasi nikel pada triwulan ketiga lebih tinggi 13% di-bandingkan harga realisasi pada triwulan kedua. Nicolas Kanter, Presiden Direktur dan CEO Vale Indonesia menyebut, kinerja apik ini sebagai akibat dari bersinarnya harga komoditas nikel.

Daily News Update Page 6

"We managed to control our cost of revenue in a sustainable manner this quarter and at the same time, we also benefited from the increase in nickel prices," wrote Nico in an official statement, Thursday (29/10). It was noted that INCO's cost of revenue in the third quarter edged up by 0.4% of the cost of revenue issued in the second quarter.

This brilliant performance boosted the cash and cash equivalents position of the Kompas100 index constituents. As for Vale Indonesia's cash and cash equivalents as of September 30, 2020, amounted to US$ 361.4 million, an increase of US$ 72.7 million from the balance on June 30, 2020. This increase was mainly due to higher receipts from customers.

"PT Vale will continue to exercise careful control over expenditures to maintain cash availability," said Nico.

INCO spent around US$ 34.8 million for capital expenditure (capex) in the third quarter of 2020. Thus, the accumulative capital expenditure reached US$ 104.5 million.

As an illustration, INCO has produced 19,477 metric tons (MT) of nickel in matte during the third quarter of 2020.

This realization was 4% higher than the production volume generated in the second quarter of 2020 which was only 18,701 MT. Meanwhile, if accumulated, Vale Indonesia's nickel production in the first nine months of 2020 reached 55,792 MT, or 10% higher than production in the same period the previous year which was only 50,531 MT.

Going forward, INCO will remain focused on various cost-saving initiatives to maintain long-term competitiveness without compromising the main values that are upheld, namely the safety of life and the preservation of the earth.

“Kami berhasil mengendalikan beban pokok pendapatan kami secara berkelanjutan pada triwulan ini dan di saat yang bersamaan, kami juga diuntungkan dari kenaikan harga nikel,” tulis Nico dalam keterangan resmi, Kamis (29/10). Tercatat, beban pokok pen-dapatan INCO pada kuartal ketiga naik tipis sebesar 0,4% dari beban pokok pendapatan yang dikeluarkan pada kuartal kedua.

Kinerja yang cemerlang ini mendorong posisi kas dan setara kas konstituen indeks Kompas100 ini. Adapun kas dan setara kas Vale Indonesia pada 30 September 2020 sebesar US$ 361,4 juta, naik sebesar US$ 72,7 juta dari saldo pada 30 Juni 2020. Kenaikan ini terutama disebabkan oleh penerimaan yang lebih tinggi dari para pelanggan.

“PT Vale akan terus melakukan kontrol yang hati-hati atas pengeluaran untuk menjaga ketersediaan kas,” kata Nico.

INCO mengeluarkan sekitar US$ 34,8 juta untuk belanja modal (capex) pada triwulan ketiga 2020. Sehingga, pengeluaran belanja modal secata akumulatif mencapai US$ 104,5 juta.

Sebagai gambaran, INCO telah memproduksi 19.477 metrik ton (MT) nikel dalam matte sepanjang triwulan ketiga tahun 2020.

Realisasi ini 4% lebih tinggi dibandingkan dengan volume produksi yang dihasilkan pada kuartal kedua 2020 yang hanya 18.701 MT. Sementara jika diakumulasikan, produksi nikel Vale Indonesia pada sembilan bulan pertama 2020 mencapai 55.792 MT, atau 10% lebih tinggi dibandingkan dengan produksi pada periode yang sama tahun sebelumnya yang hanya 50.531 MT.

Ke depan, INCO akan tetap fokus pada berbagai inisiatif penghematan biaya untuk mempertahankan daya saing dalam jangka panjang tanpa mengkompromikan nilai utama yang dijunjung yakni keselamatan jiwa dan kelestarian bumi.

Daily News Update Page 7

Next year's coal production

target is considered too optimistic

Denis Riantiza Meilanova

THE MINISTRY of Energy and Mineral

Resources (MEMR) projects that domestic coal production will be at the level of 609 million tons in 2021.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that the target was too optimistic. This is because the condition of global coal demand is still weak.

"It seems too optimistic because of the market, maybe demand will not improve," he told Bisnis recently.

According to him, there are stil l uncertainty factors that overshadow the global coal market until next year due to the Covid-19 pandemic. The recovery in demand for coal will depend on how coal importing countries are able to control the spread of Covid-19.

He is worried that high coal production amidst weakening demand will further depress coal prices in the market.

"In the future, we see that production is still high. This means that the potential price will be even more depressed. Demand will definitely recover, but it may be difficult to return to pre-pandemic levels," said Hendra.

Since Covid-19 was declared a global pandemic, the reference coal price (HBA) had strengthened by 0.28 percent to US$ 67.08 per ton in March 2020 compared to February 2020 which was pegged at US$ 66.89 per ton.

Target Produksi Batu Bara

Tahun Depan Dinilai Terlalu Optimistis

Denis Riantiza Meilanova

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) memproyeksikan produksi batu bara dalam negeri berada pada level 609 juta ton pada 2021.

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia menilai target tersebut terlalu optimistis. Hal ini mengingat kondisi permintaan batu bara global masih lemah.

"Nampaknya terlalu optimistis karena pasar, mungkin demand belum akan membaik," ujarnya kepada Bisnis, belum lama ini.

Menurutnya, masih ada faktor ketidak-pastian yang membayangi pasar batu bara global hingga tahun depan akibat pandemi Covid-19. Pulihnya permintaan batu bara akan sangat bergantung pada bagaimana negara-negara importir batu bara mampu mengendalikan penyebaran Covid-19.

Dia khawatir tinggi produksi batu bara di tengah permintaan yang melemah akan semakin menekan harga batu bara di pasaran.

"Ke depan kami melihat, jika produksi masih tinggi. Ini berarti potensi harga makin tertekan makin besar. Demand akan recover pasti, tapi mungkin sulit untuk bisa kembali ke level sebelum pandemi," kata Hendra.

Semenjak Covid-19 ditetapkan sebagai pandemi global, harga batu bara acuan (HBA) sempat menguat sebesar 0,28 persen ke angka US$67,08 per ton pada Maret 2020 dibandingkan Februari 2020 yang dipatok US$66,89 per ton.

Daily News Update Page 8

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, HBA fell to US$ 52.98 per ton, July to US$ 52.16 per ton, August to US$ 50.34 per ton, and September to US$ 49.42 per ton.

In October 2020, the HBA slightly increased by 3.2 percent compared to the HBA in September 2020 to US$ 51.00 per ton.

Meanwhile, PT Bukit Asam Tbk. (PTBA) has not set a projected coal production next year. PTBA Corporate Secretary Apollonius Andwie C said that the company is still monitoring global market developments.

"For the projected coal production next year, we are currently doing calculations taking into account global market conditions," said Apollonius when contacted by Bisnis, recently.

He also hopes that the HBA increase in October can be a good signal for price increases in the following periods.

"One of the triggers for this price hike is the increase in demand from China. As we all know that currently the authorities in the bamboo curtain country are releasing policies to loosen import policies which have been subject to restrictions in the past few months," he said.

Previously, the Director General of Mineral and Coal at the Ministry of EMR Ridwan Djamaluddin said that next year's coal production volume is projected to reach 609 million tons with the need for the domestic market obligation (DMO) expected to increase to 168.13 million tons.

This year, coal production is targeted to reach 550 million tons with a DMO requirement of 155 million tons. Editor: Hadijah Alaydrus

Kemudian, HBA terus mengalami pelemahan 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, Agustus USD50,34 per ton, dan September menjadi US$49,42 per ton.

Pada Oktober 2020, HBA sedikit mengalami kenaikan sebesar 3,2 persen dibandingkan HBA September 2020 menjadi US$51,00 per ton.

Sementara itu, PT Bukit Asam Tbk. (PTBA) belum menetapkan proyeksi produksi batu bara tahun depan. Sekretaris Perusahaan PTBA Apollonius Andwie C mengatakan bahwa perseroan masih memantau perkem-bangan pasar global.

"Untuk proyeksi produksi batu bara tahun depan, saat ini kami masih melakukan kalkulasi dengan mempertimbangkan kondisi market global," kata Apollonius ketika dihubungi Bisnis, belum lama ini.

Dia juga berharap kenaikan HBA pada Oktober dapat menjadi sinyalemen yang baik untuk peningkatan harga pada periode-periode selanjutnya.

"Pemicu kenaikan harga ini salah satunya disebabkan oleh peningkatan demand dari China. Sebagaimana kita ketahui bahwa saat ini otoritas di negeri tirai bambu merilis kebijakan untuk melonggarkan kebijakan impor yang beberapa bulan ke belakang dilakukan pembatasan," katanya.

Sebelumnya, Direktur Jenderal Mineral dan Batubara Kementerian ESDM Ridwan Djamaluddin mengatakan bahwa volume produksi batu bara tahun depan diproyeksi mencapai 609 juta ton dengan kebutuhan domestic market obligation (DMO) diper-kirakan meningkat menjadi 168,13 juta ton.

Tahun ini, produksi batu bara ditargetkan mencapai 550 juta ton dengan kebutuhan DMO sebesar 155 juta ton. Editor : Hadijah Alaydrus

Daily News Update Page 9

During the Pandemic, Antam

Successfully Optimized its Positive Performance Record

Stella Maris

PT ANEKA Tambang Tbk (Antam)

continued to record positive unaudited financial performance by posting a net profit of Rp 835.77 billion during the pandemic period. That was said by Antam's Corporate Secretary, Kunto Hendrapawoko.

"Antam continues to innovate in the field of production and sales with a focus on increasing the added value of products. The company also optimizes production and sales levels in the midst of adapting to new habits, as well as managing costs accurately and efficiently," said Kunto.

In the first nine months of 2020, Antam recorded an operating profit of Rp1.44 trillion, up 16% compared to the same period in 2019. Antam also recorded EBITDA of 2.14 trillion. Kunto explained that Antam's solid performance was supported by stable operations.

"We will maximize our operating performance and increase sales so that it will lead to optimal operating cash costs," he explained.

In the disclosure of information, gold is still the largest contributor to Antam's sales, valued at Rp 12.98 trillion or 72% of total sales of Rp 18.04 trillion. The company, which has gold mines in Pongkor and Cibaliung, recorded a gold sales volume of 14,882 kg with a production volume of 1,280 kg.

According to Kunto, market adaptation is the key to increasing the growth of the gold business, especially precious metals. This year,...

Selama Pandemi, Antam

Berhasil Optimalkan Catatan Kinerja Positif

Stella Maris

PT ANEKA Tambang Tbk (Antam) tetap

mencatatkan kinerja keuangan unaudited yang positif dengan membukukan laba bersih Rp835,77 miliar selama masa pandemi. Demikian dikatakan Sekretaris Perusahaan Antam, Kunto Hendrapawoko.

"Antam terus melakukan inovasi dalam bidang produksi dan penjualan dengan fokus pada peningkatan nilai tambah produk. Perusahaan juga mengoptimalkan tingkat produksi dan penjualan di tengan adaptasi kebiasaan baru, serta mengelola biaya dengantepat dan efisien," ujar Kunto.

Pada periode sembilan bulan pertama 2020, Antam mencatat laba usaha Rp1,44 triliun, naik 16% dibandingkan periode yang sama pada 2019. Antam juga mencatatkan EBITDA sebesar 2,14 triliun. Kunto me-maparkan, performa solid Antam didukung oleh kestabilan operasi.

"Kami maksimalkan kinerja operasi dan tingkatkan penjualan sehingga berujung pada biaya tunai operasional yang optimal," paparnya.

Dalam keterbukaan informasi, komoditas emas masih menjadi penyumbang terbesar penjualan Antam senilai Rp12,98 triliun atau 72% dari total penjualan sebesar Rp18,04 triliun. Perusahaan yang memiliki tambang emas di Pongkor dan Cibaliung ini mencatatkan volume penjualan emas sebesar 14.882 kg dengan volume produksi sebesar 1.280 kg.

Menurut Kunto, adaptasi pasar menjadi kunci meningkatnya pertumbuhan bisnis emas khususnya logam mulia. Di tahun ini,...

Daily News Update Page 10

This year, Antam is focusing on the domestic market and implementing online transactions to meet the needs of the community.

"With a focus on domestic sales, in the third quarter of 2020, Antam booked an operating profit of Rp558.51 for the precious metal operating segment, growing 186% compared to the second quarter period of Rp195.49 billion," said Kunto.

In the nickel commodity segment, Antam recorded ferronickel sales of 19,507 tonnes of nickel in ferronickel (TNi) with a production volume of 19,133 TNI. Ferronickel sales were the second largest contributor to Antam's total sales during the first nine months of 2020.

Kunto explained that by managing the cash costs of ferronickel production, Antam will strengthen its position as one of the low cost global ferronickel producers. Even as of September 2020, Antam's ferronickel cash cost was recorded at USD3.34 per pound of nickel.

"The amount is 15% more efficient than the company's average ferronickel cash cost in 2019 amounting to USD 3.95 pounds," he explained.

For nickel ore, Kunto said that this year the company will focus on the domestic market. As of September 2020, Antam has recorded 2.86 million wet metric tons (wmt) of nickel ore which is used as raw material for Antam's ferronickel plant and sales to domestic customers.

ANTM is also optimistic that the ESDM ministry's determination of benchmark prices for domestic minerals will provide a more competitive level of domestic mineral selling prices.

"This opens up opportunities to increase the reach of domestic nickel ore marketing in line with the positive outlook for the absorption of domestic nickel ore," he said.

Di tahun ini, Antam fokus dipasar domestik dan menerapkan transaksi online untuk memenuhi kebutuhan masyarakat.

"Dengan fokus penjualan di dalam negeri, pada kuartal ketiga 2020 ini Antam mem-bukukan laba usaha sebesar Rp558,51 untuk segmen operasi logam mulia, tumbuh 186% dibandingkan periode kuartal dua lalu sebesar Rp195,49 miliar,” ungkap Kunto.

Di segmen komoditas nikel, Antam mencatat penjualan feronikel sebesar 19.507 ton nikel dalam feronikel (TNi) dengan volume produksi sebesar 19.133 TNI. Penjualan feronikel merupakan kontributor terbesar kedua dari total penjualan Antam selama periode sembilan bulan pertama tahun 2020.

Kunto menjelaskan, dengan pengelolaan biaya tunai produksi feronikel yang di-lakukan, Antam memperkokoh posisi sebagai salah satu produsen feronikel global ber-biaya rendah. Bahkan hinga September 2020, cash cost feronikel Antam tercatat USD3,34 per pon nikel.

"Jumlah yang lebih ef isien 15% di -bandingkan biaya tunai rata-rata feronikel perusahaan tahun 2019 sebesar USD3,95 pon," jelasnya.

Untuk komoditas bijih nikel , Kunto menyebut perusahaannyatahun ini akan fokus pada pasar domestik. Tercatat pada hingga September 2020, Antam mem-produksi 2,86 juta wet metric ton (wmt) bijih nikel yang digunakan untuk bahan baku pabrik feronikel Antam dan penjualan kepada pelanggan domestik.

ANTM juga optimis penetapan Harga Patokan Mineral dalam negeri oleh kemen-terian ESDM, akanmemberikan tingkat harga jual mineral dalam negeri yang lebih kompetitif.

"Ini membuka peluang untuk meningkatkan jangkauan pemasaran bijih nikel di dalam negeri seiring outlook positif penyerapan bijih nikel domestik," ujarnya.

Daily News Update Page 11

Meanwhile, for bauxite, Antam recorded a production volume of 1.30 million wmt to support the production of the Tayan Chemical Grade Alumina Factory and sales to third parties.

In addition to market adaptation and operational adjustments, in the midst of the Pandemic Antam has also implemented health protocols with strict supervision to maintain the company's operations.

"Positive performance throughout the first nine months of 2020 is inseparable from the implementation of appropriate and consistent health protocols in mine work areas, processing plants and offices to maintain the health of workers in carrying out Covid-19-free work activities," concluded Kunto.

Sementara itu pada komoditas bauksit, Antam mencatatkan volume produksi sebesar 1,30 juta wmt untuk mendukung produksi Pabrik Chemical Grade Alumina Tayan dan penjualan kepada pihak ketiga.

Selain adaptasi pasar dan penyesuaian operasi, di tengah Pandemi Antam juga melaksanakan protokol kesehatan dengan pengawasan yang ketat untukmenjaga keberlangsungan operasional perusahaan.

"Kinerja positif sepanjang sembilan bulan pertama tahun 2020 tidak terlepas dari penerapan protokol kesehatan yang tepat dan konsisten di area kerja tambang, pabrik pengolahan dan perkantoran guna menjaga kesehatan pekerja dalam me-lakukan aktivitas pekerjaan bebas Covid-19," tutup Kunto.

Counting Days, What is the Fate of the Mining Contract Extension

of BUMI's Subsidiaries? Finna U. Ulfah

THE DEADLINE for the coal mining

exploitation work agreement or PKP2B of PT Arutmin Indonesia, a subsidiary of PT Bumi Resources Tbk., is just a few days away.

However, the issuer coded BUMI shares has not yet held the certainty of contract extension. To note, the contract period for PT Arutmin Indonesia (Arutmin) PKP2B will expire on November 1, 2020.

Bumi Resources Director and Corporate Secretary Dileep Srivastava said that the company had proposed an extension of the operational contract to become a Special Mining Business License (IUPK) in accordance with the provisions of the Coal Mineral Law (UU Minerba) which was passed this year.

Menghitung Hari, Bagaimana Nasib Perpanjangan Kontrak Tambang Anak Usaha BUMI?

Finna U. Ulfah

TENGGAT waktu masa perjanjian karya peng-usahaan pertambangan batu bara atau PKP2B PT Arutmin Indonesia, entitas anak usaha PT Bumi Resources Tbk., tinggal menghitung hari.

Namun, kepastian perpanjangan kontrak belum juga digenggam emiten berkode saham BUMI itu. Untuk diketahui, masa kontrak PKP2B PT Arutmin Indonesia (Arutmin) akan habis pada 1 November 2020.

Direktur sekaligus Sekretaris Perusahaan Bumi Resources Dileep Srivastava mengatakan bahwa perseroan telah mengajukan perpan-jangan kontrak operasional menjadi Izin Usaha Pertambangan Khusus (IUPK) sesuai keten-tuan Undang-Undang Mineral Batu Bara (UU Minerba) yang telah disahkan tahun ini.

Daily News Update Page 12

"We are still waiting for the final official decision from the authorities," said Dileep to Bisnis, Thursday (29/10/2020).

Apart from Arutmin, BUMI is also waiting for the confirmation of a contract extension from another subsidiary, PT Kaltim Prima Coal (KPC), whose contract period will be completed on December 31, 2021.

Meanwhile, the certainty of the extension is a determining factor in the company's work plan. Production activities have the potential to be stopped if there is no certainty.

As of June 2020, BUMI's production volume has reached 41 million tons, up 5 percent from 39.1 million tons in the same period last year. The company's overburden removal rose 11 percent to 326.6 million bcm from the same period last year of 294.8 million bcm.

Meanwhile, the sales volume for semester I/2020 was still stable at 41.2 million tons, consisting of sales from KPC of 29.5 million tons and Arutmin of 11.6 million tons.

On the other hand, based on data from the Ministry of Energy and Mineral Resources, there are seven giant first generation mines that will extend the PKP2B contract to IUPK-OP.

Apart from the two BUMI subsidiaries, the mine belongs to PT Adaro Indonesia, a subsidiary of PT Adaro Energy Tbk. (ADRO), will expire its contract on October 1, 2022.

Furthermore, the mine of PT Kideco Jaya Agung, a subsidiary of PT Indika Energy Tbk. (INDY) whose contract period will expire on March 13, 2023.

Then there is the PT Multi Harapan Utama (MHU) mine whose contract will expire on April 1, 2022, the PT Berau Coal mine expires its contract on April 26, 2025, and PT Kendilo Coal Indonesia (KCI) which expires on September 13, 2021. Editor: Hafiyyan

“Kami masih menunggu keputusan resmi akhir dari pihak berwenang,” papar Dileep kepada Bisnis, Kamis (29/10/2020).

Selain Arutmin, BUMI juga tengah menanti kepastian perpanjangan kontrak dari entitas anak usaha lainnya, PT Kaltim Prima Coal (KPC), yang masa kontraknya rampung pada 31 Desember 2021.

Adapun, kepastian perpanjangan itu menjadi penentu dalam rencana kerja perseroan. Kegiatan produksi pun berpotensi dihenti-kan jika belum terdapat kepastian.

Hingga Juni 2020, volume produksi BUMI sudah mencapai 41 juta ton, naik 5 persen dari 39,1 juta ton pada periode yang sama tahun lalu. Overburden removal perseroan naik 11 persen menjadi 326,6 juta bcm dari periode yang sama tahun lalu sebesar 294,8 juta bcm.

Sementara itu, volume penjualan semester I/2020 masih stabil di angka 41,2 juta ton yang terdiri atas penjualan dari KPC sebesar 29,5 juta ton dan Arutmin sebesar 11,6 juta ton.

Di sisi lain, berdasarkan data Kementerian Energi dan Sumber Daya Mineral, ada tujuh tambang raksasa generasi pertama yang akan memperpanjang kontrak PKP2B ke IUPK-OP.

Selain dua anak usaha BUMI itu, tambang milik PT Adaro Indonesia, entitas anak usaha PT Adaro Energy Tbk. (ADRO), akan habis masa kontraknya pada 1 Oktober 2022.

Selanjutnya tambang PT Kideco Jaya Agung, entitas anak usaha PT Indika Energy Tbk. (INDY) yang masa kontraknya bakal habis pada 13 Maret 2023.

Lalu ada tambang PT Multi Harapan Utama (MHU) yang bakal habis kontraknya pada 1 April 2022, tambang PT Berau Coal habis kontrak pada 26 April 2025, dan PT Kendilo Coal Indonesia (KCI) yang habis kontrak pada 13 September 2021. Editor : Hafiyyan

Daily News Update Page 13

Chaotic Nickel, Smelter Agrees to Use Registered Surveyor at

MEMR Anisatul Umah, CNBC Indonesia

THE GOVERNMENT has regulated the

nickel trading system through Ministerial Regulation No. 11 of 2020 concerning Procedures for Setting Benchmark Prices for Metal Mineral and Coal Sales. This regulation stipulates that the Mineral Reference Price (HPM) for metals becomes the reference price for nickel ore sales for nickel miners to domestic smelters.

But unfortunately, in its application, up to now there are stil l 40% of smelter entrepreneurs violating HPM regulations. The dispute over the nickel ore price eventually became a dispute between the miners and the smelter company.

The lower selling price of nickel ore compared to HPM was also related to the metal content in the nickel ore received by the smelter.

Most smelters in Indonesia only buy nickel with a high grade of over 1.7%. However, when received at the smelter, after being checked again by the surveyor from the smelter, the level received was said to be lower than the desired level, so the smelter paid a certain discount.

To mediate this problem, the Director of Mineral Development and Business of the Ministry of EMR Yunus Saefulhak said that about two weeks ago the Director General of Mineral and Coal, the Ministry of EMR issued a circular instructing that surveyors who verify nickel content must be registered with the Ministry of EMR first.

Kisruh Nikel, Smelter Setuju Pakai Surveyor Terdaftar di

ESDM Anisatul Umah, CNBC Indonesia

PEMERINTAH telah mengatur tata niaga nikel melalui Peraturan Menteri No. 11 tahun 2020 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batu Bara. Dalam peraturan ini diatur bahwa Harga Patokan Mineral (HPM) logam menjadi acuan harga penjualan bijih nikel bagi penambang nikel ke perusahaan smelter di dalam negeri.

Namun sayangnya, dalam penerapannya hingga saat ini masih ada 40% pengusaha smelter melanggar aturan HPM. Perselisihan harga bijih nikel ini akhirnya menjadi sengketa antara penambang dan perusahaan smelter.

Lebih rendahnya harga jual bijih nikel dibandingkan HPM tersebut karena juga terkait dengan kadar logam dalam bijih nikel yang diterima pihak smelter.

Kebanyakan smelter di Indonesia hanya mem-beli nikel dengan kadar tinggi di atas 1,7%. Namun, saat diterima di smelter, setelah dicek kembali oleh surveyor dari pihak smelter, kadar yang diterima disebutkan lebih rendah dibandingkan kadar yang diinginkan, sehingga pihak smelter membayar dengan potongan harga tertentu.

Untuk menengahi masalah ini, Direktur Pem-binaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengatakan sekitar dua minggu lalu Direktur Jenderal Mineral dan Batu Bara Kementerian ESDM telah menerbitkan surat edaran yang menginstruksikan bahwa surveyor yang melakukan verifikasi kadar nikel harus terdaftar di Kementerian ESDM terlebih dahulu.

Daily News Update Page 14

"The use of surveyors must be surveyors who are registered with MEMR. For those who are not registered with MEMR, they cannot verify the quality and quantity of nickel," he said in an interview with CNBC Indonesia, Wednesday (28/10/2020).

Yunus said that his party had invited and brought together surveyors with the smelter. After this meeting, according to him, the smelter company finally agreed and would comply with the regulation. Initially, he added, smelter companies did not agree and still wanted to use certain surveyors that they appointed.

"Now they have replaced all surveyors according to those registered with us. So, there is no longer any difference in surveyor data regarding nickel content produced by mines," said Yunus.

The problems that occurred before, added Yunus, were because they used unregistered surveyors.

"Surveyors who are not registered are used by smelters, eventually reducing the content or levels as well as the volume, well, the danger is that it will be different, eventually a dispute like that occurs," he said.

Then, because the goods have already been sent to the smelter and the results of the surveyor stated that the nickel content is lower, then like it or not, the miners will sell nickel which is claimed to have a lower grade to the smelter, so this also affects the nickel selling price.

"If that happens, the mine eventually loses, because the goods have arrived at the smelter, then not recognized that much, so I want to or not want to be sold, cook to be transported back again. But now we have used an independent surveyor registered with the Ministry of EMR," he said.

"Penggunaan surveyor itu harus surveyor yang sudah terdaftar di ESDM. Bagi yang tidak terdaftar di ESDM, tidak dapat melakukan verifikasi terkait dengan kualitas dan kuantitas nikel," ungkapnya dalam wawancara bersama CNBC Indonesia, Rabu (28/10/2020).

Yunus mengatakan pihaknya pun telah mengundang dan mempertemukan para surveyor dengan pihak smelter. Setelah pertemuan ini menurutnya perusahaan smelter pun akhirnya menyetujui dan akan patuh terhadap peraturan tersebut. Mulanya, imbuhnya, perusahaan smelter tidak sepakat dan masih menginginkan menggunakan surveyor tertentu yang pihaknya tunjuk.

"Sekarang mereka sudah ganti semua surveyor sesuai yang terdaftar di kita. Jadi, tidak ada lagi perbedaan data surveyor tentang kadar nikel yang dihasilkan tambang," jelas Yunus.

Permasalahan yang terjadi sebelumnya, imbuh Yunus, karena menggunakan surveyor yang tidak terdaftar.

"Surveyor yang tidak terdaftar dipakai oleh smelter, akhirnya menurunkan kandungan atau kadar dan sekaligus volume, wah itu bahaya kan jadi berbeda, akhirnya terjadi dispute seperti itu," tuturnya.

Kemudian, karena barang terlanjur di kirim ke smelter dan hasil dari surveyor menyebutkan kadar nikelnya lebih rendah, maka mau tidak mau penambang menjual nikel yang diklaim memiliki kadar lebih rendah kepada smelter, sehingga ini juga memengaruhi harga jual nikel.

"Kalau itu ter jadi ya akhirnya kalah tambangnya, karena barangnya sudah sampai ke smelter, kemudian tidak diakui segitu, ya mau tidak mau dijual juga, masak diangkut balik lagi. Tapi sekarang sudah gunakan surveyor yang independent dan terdaftar di Kementerian ESDM," tegasnya.

Daily News Update Page 15

Previously, the Secretary General of the

Indonesian Nickel Miners Association

(APNI) Meidy Katrin Lengkey expressed

his hope that surveyors could be fair and

impartial in conducting analyzes.

For this reason, the Association

recommends that the sampling process

should be immediately divided into four

parts, namely for surveyors, sellers, buyers

and duplicates in the event of a dispute.

"Surveyors, as the miners' life end, must

also be fair in conducting analysis," she

explained. (wia)

Sebelumnya, Sekretaris Jenderal Asosiasi

Penambang Nikel Indonesia (APNI) Meidy

Katrin Lengkey menyampaikan harapan-

nya agar pihak surveyor bisa adil dan tidak

memihak dalam melakukan analisa.

Untuk itu, Asosiasi menyarankan agar

dalam pengambilan sampel harus langsung

dibagi menjadi empat bagian yaitu untuk

surveyor, penjual, pembeli dan duplikat

jika terjadi dispute.

"Surveyor sebagai ujung nyawa penam-

bang juga harus fair dalam melakukan

analisa," paparnya. (wia)

Gold Mine Will Be a Driver for the Performance of United

Tractors (UNTR) Next Year Reporter: Akhmad Suryahadi | Editor:

Herlina Kartika Dewi

THE PERFORMANCE of PT United

Tractors Tbk (UNTR) during the first nine

months of 2020 was under pressure. This

business entity PT Astra International Tbk

(ASII) posted a net income of Rp 46.46

trillion, a decrease of 29.17% from the

same period the previous year. Even so,

analysts believe the Martabe gold mine will

be UNTR's savior next year.

The decrease in net income also made the

profit after tax attributable to the owners

of the parent entity of UNTR in the third

quarter of 2020 only Rp 5.33 trillion, down

38% from the same period the previous

year which amounted to Rp 8.64 trillion.

Tambang emas akan jadi pendorong kinerja United

Tractors (UNTR) tahun depan Reporter: Akhmad Suryahadi | Editor:

Herlina Kartika Dewi

KINERJA PT United Tractors Tbk (UNTR)

sepanjang sembilan bulan pertama 2020 mengalami tekanan. Entitas usaha PT Astra

International Tbk (ASII) ini ini mem-bukukan pendapatan bersih Rp 46,46

triliun, turun 29,17% dari periode yang sama tahun sebelumnya. Meski begitu,

analis meyakini tambang emas Martabe akan menjadi juru selamat UNTR di tahun

depan.

Turunnya pendapatan bersih juga mem-buat laba setelah pajak yang diatribusikan

kepada pemilik entitas induk UNTR di kuartal III-2020 hanya Rp 5,33 triliun,

turun 38% dari periode yang sama tahun sebelumnya yang sebesar Rp 8,64 triliun.

Daily News Update Page 16

In their research, Mirae Asset Sekuritas Indonesia analysts Hariyanto Wijaya and Emma Fauni assessed that the profit booked by UNTR in the third quarter of 2020 was lower than estimated, which was Rp 1.2 trillion (-57.1% on an annual basis, -42.9% on an annual basis. quarterly). UNTR revenue for the first nine months of 2020 represented 65.7% and 72.1% of expectations and consensus, respectively.

Hariyanto and Emma believe that United Tractors' weak revenue is mainly due to a combination of weak coal prices and restrictions on mining production capacity amid the Covid-19 pandemic.

Previously, United Tractors Corporate Secretary Sara K. Loebis said that the decline in UNTR's performance in the first nine months of 2020 was caused by the spread of the corona virus which ultimately weakened the price of coal commodities. In fact, Sara said, before the pandemic occurred, the price of black gold had already weakened.

"So, both have a negative impact on sales of heavy equipment and mining activities," said Sara when confirmed by Kontan.co.id, Monday (26/10).

However, Mirae Asset believes the Martabe gold mine will be the savior for UNTR next year. This is because, at this time, UNTR is considered to have not benefited from the increase in gold prices because around 70% of its gold sales volume has been hedged until January 2021.

This has resulted in the average selling price of gold until the third quarter of 2020 only around 85% of the average gold price.

The UNTR selling price of gold is at the level of US$ 1,482 per ounce compared to the average spot price of gold per September 2020, which reached US$ 1,736 per ounce and the spot price of gold is US$ 1,904 per ounce.

Dalam risetnya, Analis Mirae Asset Sekuritas Indonesia Hariyanto Wijaya dan Emma Fauni menilai laba yang dibukukan UNTR pada kuartal III-2020 lebih rendah dari perkiraan, yakni sebesar Rp 1,2 triliun (-57,1% secara tahunan, -42,9% secara kuartalan). Penda-patan UNTR pada sembilan bulan pertama 2020 mewakili masing-masing 65,7% dan 72,1% dari ekspektasi dan konsensus.

Hariyanto dan Emma meyakini, lemahnya pendapatan United Tractors terutama di-sebabkan oleh kombinasi dari harga batu-bara yang lemah dan pembatasan kapasitas produksi pertambangan di tengah pandemi Covid-19.

Sebelumnya, Sekretaris Perusahaan United Tractors Sara K. Loebis menyebut, turunnya kinerja UNTR pada sembilan bulan pertama 2020 disebabkan oleh penyebaran virus corona yang pada akhirnya melemahkan harga komoditas batubara. Bahkan, Sara menyebut, sebelum pandemi terjadi, harga emas hitam ini sudah kadung melemah.

“Jadi, keduanya memberi dampak negatif ke penjualan alat berat maupun kegiatan penambangan,” terang Sara saat dikonfir-masi Kontan.co.id, Senin (26/10).

Namun, Mirae Asset meyakini tambang emas Martabe akan menjadi juru selamat UNTR di tahun depan. Sebab, saat ini UNTR dinilai belum menikmati untung dari kenaikan harga emas karena sekitar 70% dari volume penjualan emasnya telah dihedging hingga Januari 2021.

Hal ini mengakibatkan harga jual rata-rata emas hingga kuartal ketiga 2020 hanya berada di sekitar 85% terhadap harga emas rata-rata.

Adapun harga jual emas UNTR berada di level US$ 1.482 per ounce dibandingkan dengan rata-rata harga spot emas per September 2020 yakni mencapai US$ 1.736 per ounce dan harga spot emas US$ 1.904 per ounce.

Daily News Update Page 17

"UNTR at least started enjoying a profitable gold price from February 2021 onwards," wrote Hariyanto and Emma in their research, Tuesday (27/10).

The corona pandemic phenomenon is currently considered to have curbed UNTR's gold production because the issuer who lives in the Kompas100 Index has imple-mented restrictions on gold production capacity during the pandemic.

As of September 2020, total sales from the Martabe gold mine reached 256,000 ounces of gold, a decrease of 16% on an annual basis.

Thus, the gold mining business unit's net income decreased by 6% to Rp 5.5 trillion. The gold business contributed 11.9% and 34.2% to income and profit before tax, respectively.

Mirae Asset Sekuritas Indonesia maintains the recommendation for trading buy shares of UNTR, only with a lower target price of Rp 25,500 (from the previous Rp 26,000).

The risk of this recommendation is a pandemic that has the potential to spread longer than expected, which could limit gold and coal production as well as coal prices which have the potential to weaken.

“UNTR setidaknya mulai menikmati harga emas yang menguntungkan mulai Februari 2021 dan seterusnya,” tulis Hariyanto dan Emma dalam riset, Selasa (27/10).

Adapun fenomena pandemi corona saat ini dinilai telah mengekang produksi emas UNTR karena emiten penghuni Indeks Kompas100 ini menerapkan pembatasan kapasitas produksi emas selama pandemi.

Sampai September 2020, total penjualan dari tambang emas Martabe mencapai 256.000 ons emas atau turun sebesar 16% secara tahunan.

Sehingga, pendapatan bersih unit usaha pertambangan emas turun sebesar 6% men-jadi Rp 5,5 triliun. Bisnis emas menyumbang masing-masing sebesar 11,9% dan 34,2% pada pendapatan dan laba sebelum pajak.

Mirae Asset Sekuritas Indonesia memper-tahankan rekomendasi trading buy saham UNTR hanya saja dengan target harga yang lebih rendah yakni Rp 25.500 (dari sebelum-nya Rp 26.000).

Adapun risiko dari rekomendasi ini adalah pandemi yang berpotensi menyebar lebih lama dari perkiraan yang bisa membatasi produksi emas dan batubara serta harga batu-

bara yang berpotensi semakin melemah.

Vale Indonesia (INCO) Ready to Increase Production at the End

of the Year Finna U. Ulfah

THE MINERAL mining company, PT Vale

Indonesia Tbk., will boost production in the fourth quarter of 2020 in an effort to maintain impressive performance growth until the end of the year.

Vale Indonesia (INCO) Siap Genjot Produksi di Akhir Tahun

Finna U. Ulfah

EMITEN pertambangan mineral, PT Vale

Indonesia Tbk., akan menggenjot produksi

pada kuartal IV/2020 sebagai upaya untuk

mempertahankan pertumbuhan kinerja

yang impresif hingga akhir tahun.

Daily News Update Page 18

Director of Vale Indonesia Bernardus Irmanto said that the company will optimize production by the end of the year so that it can achieve the 2020 production guidance target of 73,000 tons to 74,000 tons.

To note, the production target is actually higher than the performance guidance set earlier this year. Previously, the issuer coded INCO shares targeted this year's production to be not much different from last year's production realization of 71,025 tons.

However, INCO has revised up its production target because the company has the potential to book a higher production volume in line with the delay in the furnace 4 renovation project this year.

"We will optimize production to reach the target of 73,000 -74,000 tons, and also maintain operating costs in order to get good financial performance until the end of the year," said Irmanto to Bisnis, Thursday (29/10/2020).

Meanwhile, in the third quarter of 2020 INCO managed to book a profit for the current period of US$ 76.64 million, a fantastic growth of 47,800 percent compared to the third quarter of 2019 of US$ 160,000.

Meanwhile, INCO posted revenue growth of 12.74 percent to US$ 571.02 million in the third quarter of 2020 from the realization of US$ 506.46 million in the third quarter of 2019.

Irmanto explained that there were three main factors that supported this performance, namely a fairly good operational performance, an increase in nickel prices, and lower prices for oil and coal commodities than the company's estimates until September 2020.

Direktur Vale Indonesia Bernardus Irmanto mengatakan bahwa perseroan akan mengoptimalkan produksi hingga akhir tahun sehingga dapat mencapai target panduan produksi 2020 sebesar 73.000 ton hingga 74.000 ton.

Untuk diketahui, target produksi tersebut sesungguhnya lebih tinggi daripada panduan kinerja yang telah ditetapkan pada awal tahun ini. Sebelumnya, emiten berkode saham INCO menargetkan produksi tahun ini tidak jauh berbeda dari realisasi produksi tahun lalu sebesar 71.025 ton.

Namun, INCO merevisi naik t arget produksi karena perseroan berpotensi membukukan volume produksi lebih tinggi seiring dengan penundaan proyek pere-majaan furnace 4 pada tahun ini.

“Kami akan mengoptimalkan produksi untuk bisa mencapai target 73.000 -74.000 ton, dan juga menjaga biaya operasi supaya mendapatkan kinerja keuangan yang baik hingga akhir tahun,” ujar Irmanto kepada Bisnis, Kamis (29/10/2020).

Adapun, pada kuartal III/2020 INCO ber-hasil membukukan laba periode berjalan US$76,64 juta, tumbuh fantastis 47.800 persen dibandingkan dengan periode kuartal III/2019 sebesar US$160.000.

Sementara itu, INCO membukukan pertumbuhan pendapatan 12,74 persen menjadi US$571,02 juta pada kuartal III/2020 dari realisasi US$506,46 juta pada kuartal III/2019.

Irmanto menjelaskan bahwa terdapat tiga faktor utama yang mendukung kinerja tersebut, yaitu kinerja operasional yang cukup baik, kenaikan harga nikel, dan rendahnya harga komoditas minyak dan batu bara daripada estimasi perseroan hingga September 2020.

Daily News Update Page 19

INCO noted that the realized price in the

third quarter of 2020 was 13 percent

higher than the realized price in the second

quarter of 2020. INCO shipped 19,954

tonnes with revenues of US$ 210.6 million

in the July-September 2020 period.

In addition, cost of revenue in the third

quarter of 2020 was suppressed and only

slightly increased by 0.4 percent of the cost

of revenue issued in the second quarter of

2020.

Meanwhile, the increase in energy

consumption in the third quarter of this

year in line with higher nickel in matte

production compared to the previous

quarter was successfully offset by lower

energy prices.

INCO noted that consumption of HSFO,

diesel and coal increased by 15 percent, 3

percent and 7 percent on a quarter-on-

quarter (qoq) basis, respectively, while

energy prices decreased by 7 percent, 28

percent, and 6 percent respectively.

Irmanto estimates that nickel prices will

remain at the current level, although the

price increase is considered not driven by

market fundamentals.

"Hopefully positive sentiment is still

dominant in the market, related to electric

car batteries and also some government

policies related to the same subject," said

Irmanto. Editor: Hafiyyan

INCO mencatat harga realisasi pada kuartal

III/2020 lebih tinggi 13 persen diban-

dingkan harga realisasi harga pada kuartal

II/2020. INCO mengirim sebesar 19.954

ton dengan pendapatan sebesar US$210,6

juta pada periode Juli-September 2020.

Selain itu, beban pokok pendapatan pada

pada kuartal III/2020 ditekan dan hanya

naik tipis sebesar 0,4 persen dari beban

pokok pendapatan yang dikeluarkan pada

kuartal II/2020.

Adapun, kenaikan konsumsi energi pada

kuartal ketiga tahun ini seiring dengan

produksi nikel dalam matte yang lebih

tinggi dibandingkan dengan kuartal

sebelumnya berhasil diimbangi dengan

penurunan harga energi.

INCO mencatat konsumsi HSFO, diesel, dan

batubara naik masing-masing sebesar 15

persen, 3 persen, dan 7 persen secara

quarter on quarter (qoq), sedangkan untuk

harga masing-masing energi mengalami

penurunan sebesar 7 persen, 28 persen,

dan 6 persen.

Irmanto memperkirakan harga nikel dapat

bertahan di level saat ini, kendati kenaikan

harga itu dinilai tidak didorong faktor

fundamental pasar.

“Mudah-mudahan sentimen positif masih

dominan di pasar, terkait baterai mobil

listrik dan juga beberapa kebijakan

pemerintah terkait subject yang sama,”

papar Irmanto. Editor : Hafiyyan

Daily News Update Page 20

APBI: Coal exports are still dominant because domestic absorption is not significant

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

PRESIDENT Joko Widodo (Jokowi) high-

lighted the issue of coal governance at the Limited Meeting of the Acceleration of increasing the value of coal mines on Friday (23/10). Jokowi highlighted the slow downstreaming of coal. In fact, the president wants coal exports as a raw commodity to be stopped immediately.

"I want solutions to solve the slowness in the development of this coal derivative industry. Because we have been exporting raw coal for a long time, I think it must be ended," said Jokowi.

When referring to the General Plan for National Energy (RUEN), Jokowi's bluff should not only be a wind. This is because, in less than three decades, Indonesia's coal exports should have been stopped.

In Presidential Regulation (Perpres) Number 22 of 2017 concerning RUEN, it is stated that the portion of coal exports will be gradually reduced. In the regulation signed by President Jokowi on March 2, 2017, coal exports will be stopped by no later than 2046, when domestic demand reaches more than 400 million tons.

Responding to this, the Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that the export portion was still very dominant, reaching 75% of the total coal produced nationally.

Hendra said that the very dominant coal export occurred because the increase in domestic coal absorption had not grown significantly. As a result,...

APBI: Ekspor batubara masih dominan lantaran serapan di

dalam negeri belum signifikan Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

PRESIDEN Joko Widodo (Jokowi) menyoroti

soal tata kelola batubara dalam Rapat Terbatas Percepatan peningkatan nilai tambang batu-bara pada Jum'at (23/10). Jokowi menyoroti lambatnya hilirisasi batubara. Padahal, presiden ingin ekspor batubara sebagai komo-ditas mentah bisa segera dihentikan.

"Saya ingin agar dicarikan solusi mengatasi kelambanan pengembangan industri turunan batubara ini. Karena kita sudah lama sekali, mengekspor batubara mentah, sehingga saya kira memang harus segera diakhiri," tegas Jokowi.

Jika merujuk pada Rencana Umum Energi Nasional (RUEN), gertakan Jokowi tersebut semestinya tak hanya jadi angin lalu. Pasalnya, tak sampai tiga dekade ke depan, ekspor batu-bara Indonesia memang seharusnya sudah bisa dihentikan.

Dalam Peraturan Presiden (Perpres) Nomor 22 Tahun 2017 tentang RUEN, disebutkan bahwa porsi ekspor batubara akan dikurangi secara bertahap. Dalam aturan yang ditandatangani Presiden Jokowi pada 2 Maret 2017 itu, ekspor batubara akan dihentikan paling lambat pada tahun 2046, saat kebutuhan domestik mencapai lebih dari 400 juta ton.

Menanggapi hal tersebut, Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan bahwa porsi ekspor masih sangat dominan, yakni mencapai 75% dari total batubara yang diproduksi secara nasional.

Hendra bilang, ekspor batubara yang sangat dominan itu terjadi lantaran peningkatan serapan batubara dalam negeri belum tumbuh signifikan. Alhasil,...

Daily News Update Page 21

As a result, APBI is waiting for further decisions from the government regarding the export policy and the domestic use of coal.

"We leave it to the government regarding the policy whether coal will be used entirely domestically or can still be exported," Hendra told Kontan.co.id, Sunday (25/10).

What is clear, Hendra revealed that the potential for coal export demand is still potential for the next 3 decades. Although demand from China and India as well as in East Asian countries is projected to gradually decrease, developing countries such as Southeast Asia and South Asia are still considered promising.

"The need for coal is still quite significant and from a geographical point of view Indonesia is very profitable to supply to these areas," continued Hendra.

Unfortunately, the Directorate General of Mineral and Coal (Minerba) of the Ministry of EMR has yet to provide a response regarding the downstream policies and coal exports.

Even so, the Special Staff of the Minister of EMR for the acceleration of mineral and coal governance, Irwandy Arief, said that the portion of Indonesia's coal exports could be reduced even though it was not significant. He said, exports would stop automatically if the demand for coal for PLTU and downstream had reached the national production level.

However, related to the cessation of exports, Irwandy said that the develop-ment of the coal market must also be a factor to be considered. "At RUEN we are asked to stop exports, among others, if domestic demand has reached 400 million tons, or stop exports will be suspended in 2046. We don't know yet because coal development is very dynamic," said Irwandy.

Alhasil, APBI pun menunggu keputusan lebih lanjut dari pemerintah terkait kebijakan ekspor dan pemanfaatan batubara di dalam negeri.

"Kami serahkan ke pemerintah mengenai kebijakan apakah batubara akan digunakan seluruhnya dalam negeri atau masih bisa diekspor," kata Hendra kepada Kontan.co.id, Minggu (25/10).

Yang jelas, Hendra mengungkapkan bahwa potensi permintaan ekspor batubara masih potensial hingga 3 dekade ke depan. Meski permintaan dari China dan India maupun di negara-negara Asia Timur diproyeksi ber-kurang secara bertahap, namun untuk negara-negara berkembang seperti di Asia Tenggara dan Asia Selatan dinilai masih menjanjikan.

"Kebutuhan batubara masih cukup signifikan dan dari segi geografis posisi Indonesia sangat diuntungkan untuk memasok ke wilayah-wilayah tersebut," sambung Hendra.

Sayangnya, pihak Direktorat Jenderal Mineral dan Batubara (Minerba) Kemen-terian ESDM masih belum memberikan tanggapan terkait dengan kebijakan hilirisasi maupun ekspor batubara.

Meski begitu, Staf Khusus Menteri ESDM bidang percepatan tata kelola minerba, Irwandy Arief menyampaikan bahwa porsi ekspor batubara Indonesia bisa berkurang meski belum signifikan. Kata dia, ekspor akan berhenti dengan sendirinya bila kebutuhan batubara untuk PLTU dan hilirisasi sudah dapat mencapai tingkat produksi nasional.

Namun terkait dengan penghentian ekspor, Irwandy mengatakan bahwa perkembangan pasar batubara juga mesti menjadi faktor yang dipertimbangkan. "Di RUEN diminta stop ekspor antara lain bila kebutuhan dalam negeri sudah mencapai 400 juta ton, atau stop ekspor di tahan 2046. Kami belum tahu karena perkembangan batubara sangat dinamis," sebut Irwandy.

Daily News Update Page 22

Meanwhile, Chairman of the Indonesian Mining and Energy Forum, Singgih Widagdo, revealed that coal exports which continue to be dominant cannot be separated from the inability of the government, in this case the Ministry of EMR in controlling the level of national coal production.

Singgih said, since 2015 Indonesia's total coal production has exceeded the limit in the RUEN. "The maximum is 400 million tons (in RUEN), and in 2015 it has reached 461 million tons. So the problem that occurs is the government's inability to manage national production from the start," explained Singgih.

Furthermore, the Executive Director of the Institute for Essential Services Reform (IESR) Fabby Tumiwa said that the increase in the volume level of coal production and exports also occurred because the government wanted to increase revenue from both production tax revenue, export foreign exchange and Non-Tax State Revenue (PNBP).

"In the last five years, coal production is targeted to continue increasing because export results are used to fill the current account deficit. Coal entrepreneurs are also good at increasing exports," said Fabby.

Therefore, Fabby emphasized that the government is deemed necessary to re-map coal production targets. According to him, stopping coal exports should not be just a discourse.

Referring to the International Energy Agency's (IEA) Net Zero Emission scenario in the World Energy Outlook (WEO) 2020, the demand for coal for electricity generation will decrease 66% in the 2019-2030 period. As a result, RUEN's target to stop coal exports by 2046 should not be a mere fabrication.

Sementara itu, Ketua Indonesian Mining and Energy Forum Singgih Widagdo meng-ungkapkan, ekspor batubara yang terus dominan tak lepas dari ketidakmampuan pemerintah yang dalam hal ini Kemen-terian ESDM dalam mengendalikan tingkat produksi batubara nasional.

Singgih mengatakan, sejak 2015 total produksi batubara Indonesia telah me-lampaui batasan yang ada dalam RUEN. "Maksimal 400 juta ton (dalam RUEN), dan di tahun 2015 telah mencapai 461 juta ton. Jadi masalah yang terjadi adalah ketidak-mampuan Pemerintah mengelola produksi nasional sejak awal," terang Singgih.

Lebih jauh, Direktur Eksekutif Institute for Essential Services Reform (IESR) Fabby Tumiwa mengatakan bahwa kenaikan tingkat volume produksi dan ekspor batubara juga terjadi karena pemerintah ingin meningkatkan pendapatan baik dari penerimaan pajak produksi, devisa ekspor maupun Penerimaan Negara Bukan Pajak (PNBP).

"Dalam lima tahun terakhir produksi batu-bara ditargetkan naik terus karena hasil ekspor dipakai menambal defisit neraca transaksi berjalan. Pengusaha batubara juga aji mumpung meningkatkan ekspor," kata Fabby.

Oleh sebab itu, Fabby menekankan bahwa pemerintah dinilai perlu melakukan pemetaan ulang target produksi batubara. Menurutnya, penghentian ekspor batubara seharusnya bukan sekadar wacana.

Merujuk pada skenario International Energy Agency's (IEA) Net Zero Emission di World Energy Outlook (WEO) 2020, permintaan batubara untuk pembangkitan listrik akan turun 66% di kurun waktu 2019-2030. Alhasil, target RUEN untuk menghentikan ekspor batubara selambat-lambatnya tahun 2046 semestinya bukan isapan jempol belaka.

Daily News Update Page 23

"With the current condition, exports could

stop before that because export demand

has dropped dramatically," said Fabby.

Kontan.co.id previously informed that in

the last five years, an increase in coal

production has always been accompanied

by a surge in export volume. In 2015, the

volume of coal exports was recorded at

367 million tonnes with a value of US$ 16

billion.

In 2016, coal export volume edged up to

370 million tonnes with a value of US$ 15

billion. A year later, the export volume of

this black gold rose again to 389 million

tons. Followed by an upward trend in

prices, the value of coal exports in 2017

reached US$ 20 billion.

In 2018, the volume of coal exports from

Indonesia reached 429 million tons with a

value of US$ 24 billion. Last year, the

export volume touched 455 million tons

with a value of US$ 22 billion.

Looking at these data, in the last five years,

the volume of coal exports has consistently

increased. As for the export value, it

depends on coal price movements at that

time.

Meanwhile, the projected coal export this

year is at 395 million tons. Starting next

year, although coal production is projected

to increase, the EMR Ministry is targeting

export volume to no longer skyrocket.

Starting in 2021, the government is

targeting the volume of coal exports to

stagnate at 441 million tons, at least until

2024.

"Dengan kondisi sekarang bisa saja ekspor berhenti sebelum itu karena memang per-mintaan ekspor menurun drastis," sebut Fabby.

Pada pemberitaan Kontan.co.id sebelum-nya diinformasikan bahwa dalam lima

tahun terakhir, peningkatan produksi batu-bara selalu beriringan dengan lonjakan

volume ekspor. Pada tahun 2015, volume ekspor batubara tercatat 367 juta ton

dengan nilai sebesar US$ 16 miliar.

Pada 2016, volume ekspor batubara naik tipis menjadi 370 juta ton dengan nilai US$

15 miliar. Setahun kemudian, volume ekspor emas hitam ini menanjak lagi men-

jadi 389 juta ton. Diikuti oleh tren kenaikan harga, nilai ekspor batubara

tahun 2017 mencapai US$ 20 miliar.

Pada 2018, volume ekspor batubara dari

Indonesia mencapai 429 juta ton dengan nilai US$ 24 miliar. Pada tahun lalu, volume

ekspor sudah menyentuh 455 juta ton dengan nilai US$ 22 miliar.

Melihat data tersebut, dalam lima tahun

terakhir, volume ekspor batubara kon-sisten mengalami peningkatan. Sedangkan

untuk nilai ekspor, tergantung dari per-gerakan harga batubara saat itu.

Adapun, proyeksi ekspor batubara pada

tahun ini sebesar 395 juta ton. Mulai tahun depan, meski produksi batubara dipro-

yeksikan meningkat, namun Kementerian ESDM menargetkan volume ekspor tak lagi

meroket.

Mulai tahun 2021 nanti, pemerintah me-

nargetkan volume ekspor batubara bisa stagnan sebesar 441 juta ton, paling tidak

hingga tahun 2024.

Daily News Update Page 24

Nearly to US$ 60/ton, Coal Prices Even Dropped

Tirta Citradi, CNBC Indonesia

NEWCASTLE coal futures prices closed

drop in trading yesterday, Thursday (29/10/2020). The price of coal which has risen high and the rampant re-imple-mentation of the lockdown has corrected the jet rock.

Newcastle coal futures prices closed down 0.76% to US$ 58.9/ton after approaching the psychological level of US$ 60/ton. Despite weakening, coal prices are still recorded to have strengthened 0.6% this week.

The price of coal had touched the level of US$ 59.35/ton and was the highest price in the last two weeks. After that the price began to be corrected due to profit taking by traders.

On the other hand, the surge in Covid-19 cases globally, especially in Europe, has made restrictions on public mobility (lock-down) re-enforced.

France announced that it would implement a national lockdown again. Meanwhile, Germany has taken a softer path by closing restaurants, bars, cinemas and other entertainment venues starting November 2.

The massive scale lockdown has made electricity consumption, especially from the industrial and commercial sectors, drop. Global electricity supply is still dominated by coal-fired power plants.

The decline in demand for electricity in the end also causes the need for coal to drop. As a result, the price of this fossil fuel commodity also dragged down.

Nyaris ke US$60/ton, Harga Batu Bara Malah Ambles

Tirta Citradi, CNBC Indonesia

HARGA batu bara berjangka Newcastle

ditutup drop pada perdagangan kemarin, Kamis (29/10/2020). Harga batu bara yang sudah naik tinggi serta maraknya aksi penerapan kembali lockdown membuat batu legam tersebut terkoreksi.

Harga batu bara Newcastle berjangka ditutup melemah 0,76% ke US$ 58,9/ton usai mendekati level psikologis US$ 60/ton. Meskipun melemah, harga batu bara masih tercatat menguat 0,6% sepanjang minggu ini.

Harga batu bara sempat menyentuh level US$ 59,35/ton dan merupakan harga ter-tinggi dalam dua pekan terakhir. Setelah itu harga mulai terkoreksi akibat adanya aksi profit taking para trader.

Di sisi lain lonjakan kasus Covid-19 secara global terutama di Benua Eropa membuat pembatasan mobilitas publik (lockdown) kembali mulai digalakkan.

Prancis mengumumkan bakal menerapkan lockdown nasional lagi. Sementara Jerman menempuh jalan yang lebih lunak dengan menutup restoran, bar, bioskop hingga tempat hiburan lain mulai 2 November nanti.

Lockdown yang skalanya masif membuat konsumsi listrik terutama dari sektor industri dan komersial drop. Pasokan listrik global masih banyak didominasi oleh pembangkit yang menggunakan bahan bakar batu bara.

Penurunan permintaan listrik pada akhirnya juga membuat kebutuhan akan batu bara drop. Alhasil harga komoditas bahan bakar fosil ini juga ikut terkerek turun.

Daily News Update Page 25

Coal imports in the Asian region are still relatively weak. In Japan, imports of

thermal coal for the September period were reported to have decreased by 7%

(yoy) to 8.5 million tonnes. During the nine months this year, Sakura State's coal

imports dropped to the lowest level in the last seven years.

In January-September, the Japanese

Ministry of Finance reported that the import of jet rock was 78.5 million tons,

lower than the 82.5 million tons in the same period last year.

Shipments to confirmed destinations in

China fell significantly in September and remained under pressure in October, but

all major ports showed more than 1 million deliveries to unconfirmed destinations in

either month.

It could be an increase from previous

months and shipments that will eventually reach China or shipments that will be

resold because they were unable to enter China following Beijing's instructions.

As is well known, rumors have recently

circulated that major steel producers and power companies have been asked to stop

importing Australian coal.

The threat of slower Chinese demand for Australian thermal coal for the remainder

of the year, following exports of 3.9 million tonnes/month in November-December

2019 and relatively low liquefied natural gas (LNG) prices in East Asia may still limit

potential price increases coal in the near future. CNBC INDONESIA RESEARCH TEAM

(twg/twg)

Impor batu bara di kawasan Asia terbilang masih lemah. Di Jepang, impor batu bara

termal periode September dilaporkan turun 7% (yoy) menjadi 8,5 juta ton.

Sepanjang sembilan bulan tahun ini, impor batu bara Negeri Sakura drop ke level

terendah sejak tujuh tahun terakhir.

Pada Januari-September Kementerian

Keuangan Jepang melaporkan impor batu legam tersebut sebesar 78,5 juta ton, lebih

rendah dari periode yang sama tahun lalu sebanyak 82,5 juta ton.

Pengiriman dengan tujuan yang telah di-konfirmasi di China turun secara signifikan

pada bulan September dan tetap tertekan pada bulan Oktober, tetapi semua

pelabuhan utama menunjukkan lebih dari 1 juta pengiriman ke tujuan yang belum

dikonfirmasi dalam kedua bulan tersebut.

Bisa jadi ini merupakan peningkatan dari

bulan-bulan sebelumnya dan pengiriman yang pada akhirnya akan sampai ke China

atau pengiriman yang akan dijual kembali karena mereka tidak dapat masuk ke China

karena mengikuti instruksi Beijing.

Seperti yang diketahui bersama, bela-

kangan beredar rumor bahwa produsen baja utama dan perusahaan listrik diminta

berhenti mengimpor batubara Australia.

Ancaman permintaan China yang lebih

lambat untuk batu bara termal Australia di sisa tahun ini, menyusul ekspor 3,9 juta

ton/bulan pada November-Desember 2019 dan harga gas alam cair (LNG) yang relatif

rendah di Asia Timur mungkin masih membatasi potensi kenaikan harga batu

bara dalam waktu dekat. TIM RISET CNBC

INDONESIA (twg/twg)

Daily News Update Page 26

Vale nearly doubles net profit as output recovers Reuters

VALE on Wednesday reported its third-quarter net profit nearly doubled from the same

period a year ago, as the company boosted iron ore production and inventories following a deadly dam disaster in January 2019.

Net profit for the three months through September climbed to $2.9 billion from $1.6 billion a year earlier, though it still fell well short of a Refinitiv estimate of $3.6 billion.

Results were driven by a 26% increase in prices for iron ore and a 20% increase on ore sales volumes, Vale said.

The world’s second-largest producer of the key steelmaking ingredient earlier this month reported a 31% recovery in iron ore output compared to the second quarter. Its best result in two years – 88.7 million metric tons – came as a number of mines that were halted after the Brumadinho dam collapse ramped up production or came on line.

Vale posted adjusted earnings before interest, taxes, depreciation and amortization of $6.1 billion for the third quarter, up from $4.6 billion in the year-ago period, in line with estimates.

The price for average-grade iron ore rose to $118 in the quarter, from $102 a year ago, after Chinese demand was boosted by government measures to stimulate the industry amid the coronavirus pandemic, the miner said. Supply chain disruptions also led to higher prices during the quarter.

China’s crude steel production hit a record daily high in September and has been running at high levels since May, with consumption lifted by the country’s infrastructure and manufacturing sectors.

Iron ore futures hit a four-week low this week, as China’s portside inventory piled up to its highest levels since February and worries about future domestic demand for the raw material weighed on sentiment.

The miner said it has updated its estimate for capital expenditure in 2020 from $4.6 billion to $4.2 billion. (By Sabrina Valle, Gram Slattery and Roberto Samora; Editing by Christian Plumb and Kenneth Maxwell)

Metso Outotec wins order for a large iron ore pelletizing plant in China Published by Simon Matthis

METSO Outotec has signed a contract with Beijing Shougang International Engineering

Technology Co. Ltd on the delivery of new environmentally sound technology for Zenith’s (Zhong Tian) iron ore pelletizing plant to be built in Nantong, China. The order value is not disclosed. The contract has been booked into Metso Outotec’s Q3 2020 orders received.

Daily News Update Page 27

Metso Outotec's scope of delivery covers the engineering and design of the indurating system,

engineering of the process gas fan system, supply of proprietary equipment, instrumentation

and control systems, as well as supervisory services and technical training. The core of the

plant is Metso Outotec’s traveling grate pellet indurating furnace, which has a grate area of

432 m².

“We are very pleased to have been awarded this contract. The plant, which will be the fifth

large iron ore pelletizing plant delivered by Metso Outotec in China, is based on our

environmentally sound traveling grate technology,” says Tobias Stefan, Vice President,

Ferrous & Heat Transfer business line at Metso Outotec.

Pellet production at the Zhong Tian plant is estimated to start by the end of 2021. Metso

Outotec’s traveling grate technology produces uniform pellets and ensures high performance

and quality with low investment and operating costs, as well as decreased energy

consumption and emissions.

First Quantum ups copper production 10%

FIRST Quantum (TSX:FM) reported earnings of $64 million ($0.09 per share) in Q3,

Thursday.

Cash flows from operating activities was $452 million ($0.66 per share).

Cobre Panama has resumed normal operations after COVID-19 shutdowns. The company said

its net debt position is starting to decline, down $113 million to $7.54 billion as of September

30, 2020.

The realized price for copper was $2.64 per lb for the quarter, 6% higher than the same

period in 2019.

Copper production was up. The company produced 211,396 tonnes of total copper in the

quarter, 10% higher than the same period in 2019, due to record production at both Sentine

and Cobre Panama.

The all-in sustaining cost was $1.48 per lb and cash cost of copper production of $1.07 per lb

for the third quarter of 2020, a $0.38 per lb and $0.29 per lb decrease, respectively, compared

to the same period in 2019.

Daily News Update Page 28

Asian thermal coal demand to reach a billion tonnes a year Nickolas Zakharia

THE MINERALS Council of Australia (MCA) has stressed that Australia must adapt to

emissions-reducing technology to meet growing seaborne thermal coal demand in the Asia Pacific region.

The MCA, which released a thermal coal demand report on behalf of Commodity Insights, expects Asian thermal coal imports to grow by more than 270 million tonnes to 1.1 billion per annum by 2030

This forecast that factors in technology costs and the steps countries are taking to respond to climate change.

MCA chief executive officer Tania Constable said the report challenged local coal miners to work towards reducing emissions by implanting technologies including carbon capture, utilisation and storage.

“Australian thermal coal is amongst the highest quality in the world, enabling more energy to be produced with less (carbon dioxide) emitted per (kilowatt hour) of electricity produced than most alternative sources,” she said.

“It is critically important to achieve global net zero emissions, and there are clearly challenges ahead in the Asia-Pacific region in relation to emissions reduction, requiring consideration of low-emissions technologies such as CCUS, renewables, gas and nuclear power to meet Paris Agreement goals.”

To deliver lower levels of carbon dioxide, the MCA’s climate action plan has focussed on implementing low emissions technology to mine sites in Australia.

“As the world recovers from COVID-19 and works towards a zero net emissions future, Australian minerals companies will play a central role in providing the resources needed to grow sustainably in coming decades,” Constable said.

Australia’s thermal coal exports of thermal and metallurgical coal reached $54.6 billion in 2019-20 – 11.5 per cent of Australia’s total export revenue.

Metso Outotec to discontinue North Bay operations as part of

consumable wear parts restructuring Posted by Daniel Gleeso

METSO Outotec is developing its global rubber and poly-met supply chain by restructuring

its consumables wear parts manufacturing operations in North America, leading to the closure of its factory operations in North Bay, Canada.

Daily News Update Page 29

Production will be ramped down by the end of the first half of 2021, with the closure affecting a total of around 65 employees.

Metso Outotec says it will use the existing North and Central American manufacturing

footprint in order to serve customers.

Sami Takaluoma, President, Consumables business area at Metso Outotec, said: “We are continuously developing our global supply footprint to ensure sustainable and profitable

growth. To close a factory is a hard but necessary decision, and we realise that it will have implications on our employees. We will work to support them through the transition.”

The North Bay unit produces rubber and poly-met wear parts used in the mining industry.

Metso Outotec is a leading provider of rubber and poly-met mill lining with an extensive service network in all main mining markets. The company currently operates 11 factories

manufacturing synthetic solutions globally.

Core sector shrinks less in Sept on higher coal output ©Provided by The Times of India

THE CONTRACTION in eight core industries moderated sharply to 0.8% in September,

compared to 7.3% in August, on the back of a robust rebound in coal production, which was

aided by a turnaround in electricity and steel. The low base — with a 5% contraction seen in September 2019 — also helped, economists said.

Coal production jumped over 21%, signalling demand from power and other industries using

the fuel to blast their furnaces. And, the evidence was there in power generation, which grew 3.7% in September, after falling for six straight months. Similarly, steel output rose 0.9% as

most part of the manufacturing sector seemed to be getting back on rail.

Fertiliser, which had been the sole segment reporting growth during the gloomy period since the March-end nationwide lockdown, saw a 0.3% fall in production, while cement, crude oil,

refinery products and natural gas remained in the red. Cement has seen lower output for seven straight months, indicating that construction activity — from real estate to highways —

hasn’t come back to pre-Covid levels. In case of crude and natural gas, output has been down for at least 13 months, pointing to systemic issues with the two crucial sectors, where India

imports bulk of its requirements.

“The sharp improvement in the core sector output is encouraging and collates well with the

higher consumer spending seen in early October. IIP growth for this month may be -2-5%,” CARE Ratings said.

Daily News Update Page 30

Australia’s ANZ bank to exit coal lending business by 2030 Argus Media:

AUSTRALIAN bank ANZ will exit all lending to companies with exposure to thermal coal

either through extraction or power plants by 2030, as part of its new lending criteria to support the 2015 Paris climate agreement target of net-zero greenhouse gas (GHG) emissions by 2050.

ANZ, which is one of four banks that dominate the banking sector in Australia, will no longer finance any firms that have more than 10pc of their total revenue from thermal coal activities, the bank said.

The Melbourne-based bank will only lend to renewable projects and low-carbon gas projects by 2030 and will discuss with its customers that have more than 50pc of their revenue from thermal coal about diversification strategies by 2025. “We will cap limits to customers that do not meet this expectation and reduce our exposure over time,” ANZ said.

The tightening of the lending criteria to the thermal coal industry follows ANZ’s previous stance unveiled last year of lending only to new customers that have less than 50pc of their revenue from thermal coal and not financing the construction of any new conventional coal-fired power plants. It also marks a shift from when the bank first unveiled its thermal coal lending policy in 2015, when it said it would consider financing new coal-fired power stations only if advanced technology and higher-quality thermal coal were used.

ANZ was the last of Australia’s four largest banks to commit to exiting lending to thermal coal activities, with fellow Australian bank Westpac pledging to neither lend money nor invest in the thermal coal mining industry from 2030.

Australia is the world’s second-largest exporter of thermal coal. The sector faces more headwinds now that Australia’s four largest banks will no longer lend for new thermal coal mine developments or expansions of existing mines. Australia’s three largest coal customers have also all committed to net-zero emissions by 2050 for Japan and South Korea and 2060 for China. These three countries took around three-quarters of Australia’s thermal coal exports in calendar 2019. [Kevin Morrison]