Daily News Update Page 1

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There is Covid, Minerba Non-Tax State Revenue Reaches Rp28 T Ada Covid, Penerimaan Negara Bukan Pajak Minerba Capai Rp28 T Indo Tambangraya (ITMG) net profit fell 60.5% in the third quarter of 2020 Laba bersih Indo Tambangraya (ITMG) merosot 60,5% di kuartal III 2020 Bumi Resources Minerals Receives Rights Issue Approval Bumi Resources Minerals Dapat Persetujuan Rights Issue Losses Shrink, Timah Is Ready to Mine Profits in 2021 Kerugian Menyusut, Timah Siap Menambang Laba pada 2021 Domestic Coal Consumption Finally Reaches 100 Million Tons Konsumsi Batu Bara Domestik Akhirnya Tembus 100 Juta Ton After the Rights Issue, BRMS Spurred Gold and Silver Projects Setelah Rights Issue, BRMS Pacu Proyek Emas dan Perak Benefits of Coal Gasification in Indonesia, Attract Investments to Suppress Imports Manfaat Gasifikasi Batu Bara di Indonesia, Tarik Investasi hingga Tekan Impor Timah (TINS) Follows the Legal Process Regarding the Koba Tin Bankruptcy Report Timah (TINS) ikuti proses hukum soal kabar pailit Koba Tin This PTBA project is claimed to be losing Rp 5 trillion, how come? Proyek PTBA Ini Diklaim Bakal Rugi Rp5 Triliun, Kok Bisa? Coal Prices Are Still Continuously Raising, Will It Be Until When? Harga Batu Bara Masih Lanjut Naik, Mau sampai Kapan? Seven illegal gold miners apprehended in crackdown in West Aceh Thiess hires Indigenous trainees at Prominent Hill

CNBC Indonesia Kontan Dunia Energi Investor Daily CNBC Indonesia Bisnis Liputan6 Kontan Bisnis CNBC Indonesia Antara News Australian Mining

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Daily News Update Page 2

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The Philippines declares ‘no new coal plants’ but campaigners say it’s not enough Brazil’s Vale to avoid driving down global iron ore market Newmont leads mining companies ESG ranking Australia seaborne met coal remains under pressure following Chinese import ban

ZME Science Mining Global Mining.com S&P Global Platts

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Daily News Update Page 3

There is Covid, Mineral and Coal Non-Tax State Revenue Reaches

Rp28 T Anisatul Umah, CNBC Indonesia

NON-Tax State Revenues (PNBP) in the

mineral and coal (minerba) sector until October 2020 reached Rp. 27.47 trillion or 87.48% of the revised PNBP target this year.

The government has corrected the mineral and coal sector's PNBP target this year to Rp 31.4 trillion from the initial target of above Rp 40 trillion.

The Special Staff of the Minister of EMR for Mineral and Coal Management, Irwandy Arif, said that the 2020 PNBP revision was due to the impact of the Covid -19 pandemic.

"The target of state revenue (PNBP) in the mineral and coal sector after being corrected because Covid-19 fell to Rp. 31 trillion from previously above Rp. 40 trillion. So, there is a correction of 20%," he said in a discussion with the theme 'Prospects for the Mining Sector Amidst Global Economic Uncertainty' virtually, yesterday, Tuesday (10/11/2020).

According to him, although the achieve-ment is only around Rp. 27 trillion, he is optimistic that the target by the end of the year will be achieved. He said, while the temporary data until November 2020, PNBP had reached Rp 28 trillion.

"So, the possibility is achieved in accordance with the corrected target," he said optimistically.

Ada Covid, Penerimaan Negara Bukan Pajak Minerba Capai

Rp28 T Anisatul Umah, CNBC Indonesia

PENERIMAAN Negara Bukan Pajak

(PNBP) di sektor mineral dan batu bara

(minerba) hingga Oktober 2020 mencapai Rp 27,47 triliun atau 87,48% dari target

PNBP tahun ini yang telah direvisi.

Pemerintah telah mengoreksi target PNBP sektor minerba tahun ini menjadi Rp 31,4

triliun dari target awal di atas Rp 40 triliun.

Staf Khusus Menteri ESDM Bidang Tata

Kelola Mineral dan Batubara Irwandy Arif mengatakan, revisi PNBP tahun 2020 ini

akibat dampak dari pandemi Covid-19.

"Target penerimaan negara (PNBP) sektor

minerba setelah dikoreksi karena Covid-19 turun menjadi Rp 31 triliun ya dari tadinya

di atas Rp 40 triliun. Jadi, ada koreksi 20% ya," ungkapnya dalam sebuah diskusi

bertema 'Prospek Sektor Tambang di Tengah Ketidakpastian Ekonomi Global'

secara virtual, kemarin, Selasa (10/11/ 2020).

Menurutnya, meski capaian baru sekitar

Rp 27 triliun, namun pihaknya optimis target sampai akhir tahun bakal tercapai.

Dia mengatakan, data sementara sampai dengan November 2020 ini, PNBP sudah

mencapai Rp 28 triliun.

"Jadi, kemungkinan tercapai sesuai dengan target yang sudah dikoreksi ya," paparnya

optimis.

Daily News Update Page 4

Not only PNBP Minerba was affected by

Covid-19, investment in this sector was also

affected. Of the investment target based on

the 2020 Mining Work Plan and Budget

(RKAB) of US$ 7.75 billion, however, the

realization until October had only reached

US$ 2.89 billion.

This means that investment realization in

the mineral and coal mining sector until

October 2020 has only reached 37.3% of

this year's target. Irwandy said the Covid-19

pandemic was the main cause of the drop in

investment in the mineral and coal sector

this year.

"It has a big impact because several projects

were stopped due to Covid-19," he said.

This realization figure shows that invest-ment this year will also be lower than investment realization in 2019 which reached US$ 6.50 billion. According to him, last year's investment realization came from 39 percent of the mining services business license, 30 percent for infra-structure and machinery, 13 percent for intangible assets, buildings, ships, vehicles and heavy equip-ment 23 percent. (wia)

Tidak hanya PNBP Minerba yang ter-

dampak Covid-19, investasi di sektor ini

pun terdampak. Dari target investasi

berdasarkan Rencana Kerja dan Anggaran

Biaya (RKAB) Pertambangan 2020 ini

sebesar US$ 7,75 miliar, namun realisasi

hingga Oktober baru mencapai US$ 2,89

miliar.

Ini artinya, realisasi investasi sektor

pertambangan minerba hingga Oktober

2020 baru mencapai 37,3% dari target

tahun ini. Irwandy menyebut pandemi

Covid-19 menjadi sebab utama anjloknya

investasi sektor minerba pada tahun ini.

"Pengaruh besar karena beberapa projek

terhenti akibat Covid-19," tagasnya.

Angka realisasi tersebut menunjukkan

investasi pada tahun ini juga akan lebih

rendah dari realisasi investasi pada 2019

yang mencapai US$ 6,50 miliar. Realisasi

investasi pada tahun lalu itu menurutnya

berasal dari izin usaha jasa pertambangan

39%, prasarana dan mesin 30%, aktiva

tidak berwujud 13%, bangunan, kapal,

kendaraan dan alat-alat berat 23%. (wia)

Indo Tambangraya (ITMG) net profit fell 60.5% in the third

quarter of 2020 Reporter: Akhmad Suryahadi | Editor:

Khomarul Hidayat

THE PERFORMANCE of PT Indo Tambangraya Megah Tbk (ITMG) was under pressure during the first nine months of 2020. This coal mining issuer posted a net profit of...

Laba bersih Indo Tambangraya (ITMG) merosot 60,5% di

kuartal III 2020 Reporter: Akhmad Suryahadi | Editor:

Khomarul Hidayat

KINERJA PT Indo Tambangraya Megah Tbk (ITMG) mengalami tekanan sepanjang sembilan bulan pertama 2020. Emiten tambang batubara ini membukukan laba bersih senilai...

Daily News Update Page 5

This coal mining issuer posted a net profit of US$ 39.98 million in the third quarter of 2020. This profit fell to 60.5% from ITMG's net profit in same period last year which reached US$ 101.21 million.

The decrease in net profit is in line with the corrected revenue for ITMG. As of the third quarter, this Kompas100 Index constituent recorded a decrease in net income of up to 33.17% on an annual basis, from US$ 1.30 billion to US$ 871.88 million.

In detail, ITMG's revenue is still dominated by sales to the export market. Sales to Southeast Asia (except Indonesia), India and Pakistan reached US$ 295.78 million or 33% of total revenue. Followed by sales to Taiwan, China, Hong Kong, South Korea worth US$ 209.08 million, sales to the domestic market worth US$ 192.37 million.

Then, sales to the Japanese market posted a value of US$ 167.66 million and sales to the Australian market worth US$ 6.98 million.

However, ITMG recorded reductions in all lines of expenses and costs. In the line of cost of revenue, ITMG recorded a 31.38% decline from US$ 1.06 billion to US$ 732.05 million. Sales expenses were also observed to decline 22.38% from US$ 82.4 million to US$ 63.95 in the third quarter of 2020.

Not only that, general and administrative expenses also decreased by 35.25% to US$ 13.59 million.

As of September 30, 2020, ITMG's total assets reached US$ 1.18 billion consisting of liabilities worth US$ 316.34 million and equity worth US$ 863.44 million. Mean-while, ITMG's cash and cash equivalents position as of September 30, 2020 reached US$ 208.66 million, an increase of 31.06% from the cash and cash equivalents position on December 31, 2019 which was only US$ 159.20 million.

Emiten tambang batubara ini membukukan laba bersih senilai US$ 39,98 juta di kuartal ketiga 2020. Laba ini turun hingga 60,5% dari torehan laba bersih ITMG di periode sama tahun lalu yang mencapai US$ 101,21 juta.

Penurunan laba bersih ini sejalan dengan terkoreksinya pendapatan ITMG. Per kuartal ketiga, konstituen Indeks Kompas100 ini mencatatkan penurunan pendapatan bersih hingga 33,17% secara tahunan, dari US$ 1,30 miliar menjadi US$ 871,88 juta.

Secara rinci, pendapatan ITMG masih di-dominasi hasil penjualan ke pasar ekspor. Penjualan ke Asia Tenggara (kecuali Indonesia), India, dan Pakistan mencapai US$ 295,78 juta atau 33% dari total pendapatan. Disusul penjualan ke Taiwan, Cina, Hong Kong, Korea Selatan senilai US$ 209,08 juta, penjualan ke pasar domestik senilai US$ 192,37 juta.

Kemudian, penjualan ke pasar Jepang membukukan nilai US$ 167,66 juta dan penjualan ke pasar Australia senilai US$ 6,98 juta.

Namun, ITMG mencatatkan penurunan di semua lini beban dan biaya. Di lini beban pokok pendapatan, ITMG mencatatkan penurunan sebesar 31,38% dari US$ 1,06 miliar menjadi US$ 732,05 juta. Beban penjualan juga terpantau turun 22,38% dari US$ 82,4 juta menjadi US$ 63,95 di kuartal ketiga 2020.

Tidak hanya itu, beban umum dan administrasi juga turun 35,25% menjadi US$ 13,59 juta.

Per 30 September 2020, jumlah aset ITMG mencapai US$ 1,18 miliar yang terdiri atas liabilitas senilai US$ 316,34 juta dan ekuitas senilai US$ 863,44 juta. Adapun posisi kas dan setara kas ITMG per 30 September 2020 mencapai US$ 208,66 juta atau naik 31,06% dari posisi kas dan setara kas 31 Desember 2019 yang hanya US$ 159,20 juta.

Daily News Update Page 6

Bumi Resources Minerals Receives Rights Issue Approval

Yurika

THE EXTRAORDINARY General Meeting

of Shareholders (EGMS) of PT Bumi Resources Minerals Tbk (BRMS) approved the plan to increase capital with pre-emptive rights (PMHMETD/Rights Issue). This is in line with the company's plan to issue a maximum of 24,000,000,000 new Series B shares (and a maximum of 24,500,000,000 new shares for series II warrants, depending on the exercise).

"More than 99% of registered and present shareholders have agreed," said Herwin W Hidayat, Director & Investor Relations of BRMS, after the EGMS which was held at Hotel JS Luwansa Jakarta, Wednesday (11/11).

Herwin said that the proceeds from the implementation of the eights issue will be used, among others, for business develop-ment which includes the construction of a new factory with a production capacity of 4,000 tons of gold ore per day. This factory is needed to process gold & silver ore into dore bullion from several prospects in the Poboya block, Palu (Sulawesi). Rights issue funds will also be allocated for the construction of supporting facilities for mining operations and purchasing mining equipment; detailed drilling work related to the potential addition of gold and silver ore reserves from the prospect at the Palu mine project, as well as the potential for additional reserves of copper, gold and silver ore from the prospect at the Gorontalo mining project; settlement of invoices and company business units for operational activities and business unit development, including preparation for...

Bumi Resources Minerals Dapat Persetujuan Rights Issue

Yurika

RAPAT Umum Pemegang Saham Luar Biasa (RUPSLB) PT Bumi Resources Minerals Tbk (BRMS) menyetujui rencana Penambahan Modal Dengan Hak Memesan Efek Terlebih Dahulu (PMHMETD/Rights Issue). Hal ini sejalan dengan rencana perusahaan untuk menerbitkan sebanyak - banyaknya 24.000.000.000 lembar saham baru Seri B (dan sebanyak-banyaknya 24.500.000.000 lembar saham baru untuk waran seri II, tergantung dari pelaksanaannya).

“Lebih dari 99% pemegang saham yang terdaftar dan hadir telah menyetujui ya,” ungkap Herwin W Hidayat, Direktur & Investor Relations BRMS, usai RUPSLB yang diselenggarakan di Hotel JS Luwansa Jakarta, Rabu (11/11).

Herwin mengatakan, dana hasil dari pelaksanaan eights issue nantinya akan digunakan antara lain untuk pengembangan usaha yang meliputi pembangunan pabrik baru dengan kapasitas produksi 4.000 ton bijih emas per hari. Pabrik ini diperlukan untuk mengolah bijih emas & perak menjadi dore bullion dari beberapa prospek di blok Poboya, Palu (Sulawesi). Dana rights issue juga akan dialokasikan untuk pembangunan fasilitas pendukung operasional tambang dan pembelian peralatan penambangan; pekerjaan pengeboran detail terkait dengan potensi penambahan cadangan bijih emas dan perak dari prospek di proyek tambang Palu, serta potensi penambahan cadangan bijih tembaga, emas, perak dari prospek di proyek tambang Gorontalo; pelunasan tagihan dan unit usaha perusahaan dalam rangka kegiatan operasional dan pengem-bangan unit usaha, termasuk diantaranya persiapan...

Daily News Update Page 7

including preparation for implementation construction and operation of the first

factory with a capacity of 500 tons of gold ore per day (which has been operating

since February 2020) which has been paid in advance by PT Bumi Resources Tbk

(BUMI).

The proceeds from the rights issue are also

earmarked for working capital financing for operational activities related to the

gold and silver mining project in Palu (operated by a subsidiary of BRMS, namely

PT Citra Palu Minerals) and a copper, gold and silver mining project in Gorontalo

(operated by a subsidiary. BRMS, namely PT Gorontalo Minerals).

Bumi Resources Minerals EGMS also approved changes to the Company's capital

structure. With the approval of the rights issue transaction plan, the Company's

issued capital will increase by a maximum of 24,000,000,000 shares (and a maximum

of 24,500,000,000 shares from share-holders exercising their rights over the

warrants attached to the new shares issued by the company in rights issue

transaction).

"Shareholders also approved the agenda

for changes to the composition of the company's management," said Herwin.

Composition of the Management of the Company after the EGMS:

Board of Commissioners

- President Commissioner: Saptari Hoedaja

- Independent Commissioner: Gories Mere

- Independent Commissioner: Winston Jusuf

- Commissioner: Nalinkant A. Rathod

- Commissioner: Adika Nuraga Bakrie

- Commissioner: Adhika Andrayudha Bakrie

termasuk diantaranya persiapan pelak-sanaan konstruksi dan pengoperasian

pabrik pertama dengan kapasitas 500 ton bijih emas per hari (yang telah beroperasi

sejak Februari 2020) yang telah di-bayarkan terlebih dahulu oleh PT Bumi

Resources Tbk (BUMI).

Dana hasil right issue juga diperuntukkan

pada pembiayaan modal kerja untuk kegiatan operasional terkait dengan

proyek tambang emas dan perak di Palu (dioperasikan oleh anak usaha BRMS, yaitu

PT Citra Palu Minerals) dan proyek tambang tembaga, emas, perak di

Gorontalo (dioperasikan oleh anak usaha BRMS, yaitu PT Gorontalo Minerals).

RUPSLB Bumi Resources Minerals juga menyetujui perubahan struktur per-modalan Perusahaan. Dengan disetujuinya rencana transaksi rights issue maka Modal Ditempatkan Perusahaan akan meningkat sebanyak - banyaknya 24.000.000.000 lembar saham (dan sebanyak-banyaknya 24.500.000.000 lembar saham yang ber-asal dari pemegang saham yang melak-sanakan haknya atas waran yang melekat pada saham baru yang diterbitkan oleh perusahaan dalam transaksi rights issue tersebut).

“Pemegang saham juga menyetujui agenda

perubahan susunan pengurus perusaha-an,” tandas Herwin.

Susunan Pengurus Perusahaan usai RUPSLB:

Dewan Komisaris

– Komisaris Utama: Saptari Hoedaja

– Komisaris Independen: Gories Mere

– Komisaris Independen: Winston Jusuf

– Komisaris: Nalinkant A. Rathod

– Komisaris: Adika Nuraga Bakrie

– Komisaris: Adhika Andrayudha Bakrie

Daily News Update Page 8

Board of Directors

- President Director: Suseno Kramadibrata

- Independent Director: Febriansyah Marzuki

- Director: Fuad Helmy

- Director: Muhammad Sulthon

- Director: Adika Aryasthana Bakrie - Director: Herwin Wahyu Hidayat. (RA)

Dewan Direksi

- Direktur Utama: Suseno Kramadibrata

- Direktur Independen: Febriansyah Marzuki

- Direktur: Fuad Helmy

- Direktur: Muhammad Sulthon

- Direktur: Adika Aryasthana Bakrie - Direktur: Herwin Wahyu Hidayat. (RA)

Losses Shrink, Timah Is Ready to Mine Profits in 2021

Parluhutan Situmorang

THE INCREASE in the selling price of tin commodity in the last few months will have a positive impact on the financial performance of PT Timah Tbk (TINS) by the end of this year. The increase in prices is expected to continue in line with the global economic recovery, particularly in China.

With these conditions, Timah is believed to be able to reduce this year's net loss to Rp 343 billion compared to last year's realization which recorded a net loss of Rp 614 bill ion. Meanwhile, revenue is estimated to fall to Rp 15.49 trillion from Rp 19.3 trillion.

BRI Danareksa Sekuritas analyst Stefanus Darmagiri revealed that the selling price of tin had risen 35.6% from the lowest level in March 2020 or when the Covid-19 outbreak spread. In fact, the current tin selling price has increased by 5.3% compared to the same period last year. The increase was in line with the Chinese economy recovering.

"The selling price of tin was already above US$ 18,000 per ton in October 2020 compared to the average selling price in the third quarter of 2020 which was US$ 17,691 per ton. With the expectation that...

Kerugian Menyusut, Timah Siap Menambang Laba pada 2021

Parluhutan Situmorang

KENAIKAN harga jual komoditas timah dalam beberapa bulan terakhir bakal berdampak positi f terhadap kinerja keuangan PT Timah Tbk (TINS) hingga akhir tahun ini. Kenaikan harga tersebut diperkirakan berlanjut sejalan dengan pemulihan ekonomi global , khususnya Tiongkok.

Dengan kondisi tersebut, Timah diyakini mampu menurunkan rugi bersih tahun ini menjadi Rp 343 miliar dibandingkan realisasi tahun lalu yang mencatat rugi bersih sebesar Rp 614 miliar. Sedangkan pendapatan diperkirakan turun menjadi Rp 15,49 triliun dari Rp 19,3 triliun.

Analis BRI Danareksa Sekuritas Stefanus Darmagiri mengungkapkan, harga jual komoditas timah telah naik 35,6% dari level terendah pada Maret 2020 atau saat wabah Covid-19 meluas. Bahkan, harga jual timah saat ini telah naik 5,3% diban-dingkan periode sama tahun lalu. Kenaikan seiring pulihnya ekonomi Tiongkok.

“Harga jual timah sudah di atas US$ 18.000 per ton pada Oktober 2020 dibandingkan rata-rata harga jual hingga kuartal III-2020 yang sebesar US$ 17.691 per ton. Dengan ekspektasi...

Daily News Update Page 9

With the expectation that the selling price will continue to rise, Timah is expected to be able to print a net profit in the fourth quarter of this year,”wrote Stefanus in his research recently.

Therefore, he maintained the recommen-dation to buy TINS shares with a target price of Rp 950. The target price reflects the net profit in the fourth quarter, so that the company's net loss this year has shrunk compared to last year's realization. Next year, Timah is projected to reap a net profit of Rp 109 billion, the highest in the last three years.

Regarding the realization of financial performance until the third quarter of 2020, Timah is considered to have met expectations. Although, the sales volume and price of tin in the first half of 2020 decreased.

“The company's net loss is equivalent to 74 percent of our estimate. Meanwhile, the achievement of income is equivalent to 77%,” explained Stefanus.

Timah recorded a decrease in net loss to Rp 255.16 billion in the third quarter of 2020 compared to the second quarter of 2020 which amounted to Rp 390.07 billion. However, the net loss until the third quarter of 2020 was still greater than the same period last year which was valued at Rp 175.78 billion.

Finance Director Timah Wibisono said the decline in third quarter net loss compared to the second quarter of this year was supported by an increase in gross profit to Rp 760.02 billion as of September. The increase is 204% compared to June this year amounting to Rp 249.94 billion.

"The increase in gross profit has a positive effect on the company's gross profit margin (GPM) from 3.13% in the second quarter of 2020 to 6.4% in the third quarter of 2020. In addition,...

Dengan ekspektasi berlanjutnya kenaikan harga jual, Timah diperkirakan mampu cetak keuntungan bersih pada kuartal IV tahun ini,” tulis Stefanus dalam risetnya, baru-baru ini.

Sebab itu, dia mempertahankan rekomen-dasi beli saham TINS dengan target harga Rp 950. Target harga tersebut merefleksi-kan perolehan laba bersih pada kuartal IV, sehingga rugi bersih perseroan sepanjang tahun ini menyusut dibandingkan realisasi tahun lalu. Tahun depan, Timah di-proyeksikan meraup laba bersih Rp 109 miliar atau tertinggi dalam tiga tahun terakhir.

Terkait realisasi kinerja keuangan hingga kuartal III- 2020, Timah dianggap telah sesuai ekspektasi. Meskipun, volume pen-jualan dan harga timah pada semester I-2020 turun.

“Realisasi rugi bersih perseroan setara dengan 74% dari perkiraan kami. Sedang-kan pencapaian pendapatan setara dengan 77%,” jelas Stefanus.

Timah mencatatkan penurunan rugi bersih menjadi Rp 255,16 miliar hingga kuartal III-2020 dibandingkan hingga kuartal II-2020 yang sebesar Rp 390,07 miliar. Namun, rugi bersih hingga kuartal III-2020 masih lebih besar dibandingkan periode sama tahun lalu yang senilai Rp 175,78 miliar.

Direktur Keuangan Timah Wibisono mengatakan, penurunan rugi bersih kuartal III dibandingkan kuartal II tahun ini ditopang oleh peningkatan laba kotor menjadi Rp 760,02 miliar hingga September. Peningkatannya sebesar 204% dibandingkan hingga Juni tahunini senilai Rp 249,94 miliar.

“Peningkatan laba kotor ini berpengaruh positif terhadap gross profit margin (GPM) perseroan dari 3,13% pada kuartal II- 2020 menjadi 6,4% pada kuartal III-2020. Selain itu,...

Daily News Update Page 10

In addition, the net profit margin (NPM) also improved from -4.89% to 2.15% previously," explained Wibisono in an official statement.

In contrast to the increasing gross profit, the company recorded a decline in revenue of 18.42 percent to Rp 11.88 trillion compared to last year's Rp 14.56 trillion. Meanwhile, cost of revenue decreased by 17.88% to Rp.11.12 trillion from the end of 2019 which reached Rp.13.53 trillion. Until the third quarter of 2020, Timah recorded a cash flow of Rp 4.84 trillion, up 52.68% compared to the second quarter of 2020 which amounted to Rp 3.17 trillion.

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

According to Wibisono, the increase in operating cash flow and EBITDA is an indicator of the company's financial health, so that Timah is able to pay part of its short-term obligations and bond debt. The position of Timah's short-term bank debt until the third quarter of 2020 was Rp 4.74 trillion or a 46.1% decrease compared to the end of 2019 which reached Rp 8.79 trillion.

Production

From the production side, the company recorded tin ore production of 34,592 tons until the third quarter of 2020, a decrease of 47.44% from the end of 2019 which reached 65,819 tons. Of this achievement, around 74.56% came from land mining, the remaining 25.44% came from marine mining.

"Meanwhile, tin production in the third quarter of 2020 amounted to 37,588 tons, down 35.37% from the end of 2019 which reached 58,157 tons," said Wibisono.

Selain itu, net profit margin (NPM) juga membaik dari sebelumnya -4,89% menjadi 2,15%,” jelas Wibisono dalam keterangan resmi.

Berbeda dengan laba kotor yang mening-kat, perseroan mencatatkan penurunan pendapatan sebesar 18,42% menjadi Rp 11,88 triliun dibandingkan akhir tahun lalu Rp 14,56 triliun. Sedangkan beban pokok pendapatan turun 17,88% menjadi Rp 11,12 triliun dari akhir 2019 yang men-capai Rp 13,53 triliun. Hingga kuartal III-2020, Timah mencatat cash flow sebesar Rp 4,84 triliun, naik 52,68% dibandingkan kuartal II-2020 yang sebesar Rp 3,17 triliun.

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

Menurut Wibisono, peningkatan cash flow operasi dan EBITDA merupakan indicator sehatnya finansial perusahaan, sehingga Timah mampu membayar sebagian kewajiban jangka pendek dan utang obligasi. Adapun posisi utang bank jangka pendek Timah sampai kuartal III-2020 sebesar Rp 4,74 triliun atau turun 46,1% dibandingkan akhir 2019 yang mencapai Rp 8,79 triliun.

Produksi

Dari sisi produksi, perseroan mencatat produksi bijih timah sebanyak 34.592 ton sampai kuartal III-2020 atau turun sebesar 47,44% dari akhir 2019 yang mencapai 65.819 ton. Dari pencapaian tersebut, sekitar 74,56% berasal dari penambangan darat, sisanya 25,44% berasal dari penambangan laut.

“Sementara itu, produksi logam timah pada kuartal III- 2020 sebesar 37.588 ton atau turun 35,37% dari akhir 2019 yang men-capai 58.157 ton,” ungkap Wibisono.

Daily News Update Page 11

The sales of refined tin in that period amounted to 45,548 tonnes or a decrease of 9.49% from the end of 2019 which reached 50,326 tonnes.

Nevertheless, he revealed, refined tin demand in the third quarter of 2020 increased by 8.07% to 85.7 kilotons compared to the previous quarter of 79.3 kilotons.

He emphasized that tin sales were influenced by domestic and export sales. In the third quarter of 2020, Timah recorded tin exports at 98%, while the rest was for the domestic market.

"Timah's export destinations until the third quarter of 2020 are Asia, 68%, Europe 15%, and America 15%," he said.

Meanwhile, the average selling price of refined tin until the third quarter of 2020 was US$ 16,832, down 21.73% from the end of 2019 which reached US$ 19,083. According to Wibisono, the tin deficit in the third quarter of 2020 could have a positive impact on refined tin prices and will return to their original prices in early 2021.

Transform

Going forward, Timah will continue to transform into an innovative and environ-mentally friendly company in exploiting tin in its operational areas. Mining is carried out through Good Mining Practice (GMP) procedures with the principle of effective and cost-friendly mining method in tin mining. Exploration continues to be carried out to support the sustainability of Timah's business going forward. Bangka Belitung will still be the main location for tin mining because of its large potential.

"The potential for tin reserves in Bangka Belitung is still large, especially for the primary type which is found in many new locations, which continue to be explored. This new reserve will be...

Adapun penjualan logam timah pada periode tersebut sebesar 45.548 ton atau turun sebesar 9,49% dari akhir 2019 yang mencapai 50.326 ton.

Kendati demikian, dia mengungkapkan, permintaan logam timah pada kuartal III- 2020 meningkat 8,07% menjadi 85,7 kiloton dibandingkan kuartal sebelumnya sebanyak 79,3 kiloton.

Dia menegaskan, penjualan logam timah ini dipengaruhi oleh penjualan domestik dan ekspor. Pada kuartal III-2020, Timah men-catatkan ekspor timah sebesar 98%, sedang-kan sisanya untuk pasar domestik.

“Destinasi ekspor Timah sampai dengan kuartal III-2020 adalah benua Asia 68%, Eropa 15%, dan Amerika 15%,” ucap dia.

Sementara itu, rata-rata harga jual logam timah hingga kuartal III-2020 sebesar US$ 16.832 atau turun 21,73% dari akhir 2019 yang mencapai US$ 19.083. Menurut Wibisono, defisit logam timah pada kuartal III-2020 bisa berdampak positif pada harga logam timah dan akan kembali ke harga semula pada awal 2021.

Bertransformasi

Ke depan, Timah terus bertransformasi menjadi perusahaan yang inovatif dan ramah lingkungan dalam mengeksploitasi timah di wilayah operasionalnya. Penam-bangan dilakukan melalui prosedur Good Mining Practice (GMP) dengan yang ber-prinsip effective and costfriendly mining method dalam penambangan timah. Eksplo-rasi terus dilakukan untuk mendukung keberlangsungan bisnis Timah ke depannya. Bangka Belitung masih akan menjadi lokasi utama penambangan timah karena potensi-nya yang diprediksi cukup besar.

“Potensi cadangan timah di Bangka Belitung masih besar, terutama untuk tipe primer yang banyak ditemukan di berbagai lokasi baru yang terus dilakukan eksplorasinya. Cadangan baru ini akan menjadi...

Daily News Update Page 12

This new reserve will be a hope for the sustainability of the tin business in the future," said Wibisono.

Timah is exploring a loan of US$ 100 million to the company's shareholders, PT Indonesia Asahan Aluminum (Inalum) or the Mining Industry Indonesia (MIND ID). The shareholder loan will be used to refinance bank loans related to working capital.

The company proposes that the share-holder loan interest is below 2.5% and the loan tenor is one year with a renewable period. The company hopes that MIND ID will grant the loan proposal before the end of 2020.

"We are trying to replace some of our working capital loan debt in US dollars into shareholder loans. This is a natural hedge strategy. That way, if there is a high fluctuation in the exchange rate, the impact will not be so big on profit and loss," said Wibisono.

He emphasized that shareholder loans have the potential to make the company's short-term debt risk profile better. The company has bank debt worth Rp. 6.6 trillion as of early November. Of that amount, the company's dollar debt reaches US$ 126 million. The company's creditors come from domestic and foreign banks. The debt to be exchanged for shareholder loans has an interest rate of around 2.55-3%. If the shareholder loan is granted according to the proposal, Timah will have a lower interest expense on the US dollar loan.

In addition, the company can maintain a healthy net debt to EBITDA. The company will not take out new loans, outside of the commitments that have been previously made. The company has already drawn a loan of around...

Cadangan baru ini akan menjadi harapan akan keberlangsungan bisnis pertimahan di masa depan,” kata Wibisono.

Timah tengah menjajaki pinjaman sebesar US$ 100 juta kepada pemegang saham perseroan, PT Indonesia Asahan Aluminium (Inalum) atau Mining Industry Indonesia (MIND ID). Shareholder loan tersebut akan dipakai untuk membiayai kembali (refinancing) utang bank terkait modal kerja.

Perseroan mengusulkan bunga share-holder loan tersebut di bawah 2,5% dan tenor pinjaman selama satu tahun dengan periode yang dapat diperbarui. Perseroan berharap MIND ID mengabulkan proposal pinjaman tersebut sebelum akhir 2020.

“Kami berupaya mengganti sebagian utang kredit modal kerja dalam dolar Amerika Serikat (AS) menjadi shareholder loan. Ini strategi natural hedge. Dengan begitu, kalau ada gejolak yang tinggi terhadap nilai tukar, imbasnya tida begitu besar terhadap profit and loss,” ungkap Wibisono.

Dia menegaskan, shareholder loan ber-potensi membuat profil risiko utang jangka pendek perseroan lebih baik. Perseroan memiliki utang bank senilai Rp 6,6 triliun hingga awal November. Dari jumlah itu, utang dolar perseroan mencapai US$ 126 juta. Kreditur perseroan berasal dari bank domestik dan luar negeri. Adapun utang yang akan ditukar dengan shareholder loan memiliki tingkat bunga sekitar 2,55-3%. Jika shareholder loan dikabulkan sesuai proposal, Timah akan memiliki beban bunga yang lebih rendah pada pinjaman dolar AS.

Selain itu, perseroan bisa menjaga net debt to EBITDA tetap sehat. Perseroan tidak akan mengambil pinjaman baru, di luar komitmen yang sudah diraih sebelumnya. Perseroan sudah menarik pinjaman sekitar...

Daily News Update Page 13

The company has already drawn a loan of around US$ 30 million for the expansion of the ausmelt furnace smelter in Muntok, Bangka Belitung. Overall smelter construc-tion work has reached 30.5% and is targeted for completion in January 2022. PT Wijaya Karya Tbk (WIKA) acts as the smelter contractor. Editor: Gora Kunjana (gora_kunjana@investor.co.id)

Perseroan sudah menarik pinjaman sekitar US$ 30 juta untuk ekspansi smelter ausmelt furnace di Muntok, Bangka Belitung. Pekerjaan konstruksi smelter secara keseluruhan telah mencapai 30,5% dan ditargetkan selesai pada Januari 2022. PT Wijaya Karya Tbk (WIKA) bertindak sebagai kontraktor smelter tersebut. Editor : Gora Kunjana (gora_kunjana@investor.co.id)

Domestic Coal Consumption

Finally Reaches 100 Million Tons

Anisatul Umah, CNBC Indonesia

THE REALIZATION of domestic coal

consumption until October 2020 reached 108.45 million tons or 69.97% of this year's domestic market obligation (DMO) target of 155 million tons.

This was conveyed by the Special Staff of the Minister of EMR for Mineral and Coal Management Irwandy Arif in a discussion about mining, yesterday, Tuesday (10/11/ 2020).

He said, the utilization of coal in 2020 is targeted to be mostly used for PLN, amounting to 109 million tons or 70% of the total target of domestic coal utilization. However, until October 2020 the absorption was only 87.83 million tons or 80.57%.

Meanwhile, in terms of percentage, the biggest consumption achievement was for the briquette industry, reaching 500 percent to 0.05 million tons from this year's consumption target of 0.01 million tons.

Konsumsi Batu Bara Domestik

Akhirnya Tembus 100 Juta Ton Anisatul Umah, CNBC Indonesia

REALISASI konsumsi batu bara di dalam

negeri sampai Oktober 2020 mencapai

sebesar 108,45 juta ton atau 69,97% dari target konsumsi domestik (domestic

market obligation/DMO) tahun ini sebesar 155 juta ton.

Hal tersebut disampaikan Staf Khusus

Menteri ESDM Bidang Tata Kelola Mineral dan Batubara Irwandy Arif dalam sebuah

diskusi tentang pertambangan, kemarin, Selasa (10/11/2020).

Dia menyebutkan, pemanfaatan batu bara

pada 2020 ditargetkan paling banyak di-gunakan untuk PLN yakni sebesar 109 juta

ton atau 70% dari total target pemanfaatan batu bara dalam negeri. Namun, sampai

Oktober 2020 penyerapannya baru 87,83 juta ton atau 80,57%.

Sementara dari sisi persentase, capaian konsumsi terbesar yaitu untuk industri

briket yakni mencapai 500% menjadi 0,05 juta ton dari target konsumsi tahun ini

0,01 juta ton.

Daily News Update Page 14

Meanwhile, in other industries, coal

consumption has decreased substantially.

He said, for the type of paper industry, for

example, this year's consumption target

was 6.64 million tons, but until October it

had only reached 1.02 million tons. Then,

coal consumption for textiles, from the

target of 6.54 million tons, has only

reached 0.20 million tons.

"Other industries have decreased a lot,

meaning that it needs to be encouraged so

that this industry will re-absorb DMO. If

you look at developments, coal consump-

tion for our industry has decreased

somewhat in 2020," he explained.

Although domestic coal consumption is

still far from the target, on the other hand,

Indonesia's Reference Coal Price (HBA) for

November 2020 rose 9.23% to US$ 55.71

per ton from US$ 51 per ton in October

2020.

Agung Pribadi, the head of the Communi-

cations Bureau, Public Information

Services and Cooperation (KLIK) Ministry

of Energy and Mineral Resources (ESDM),

previously said that the increase in HBA

this November was triggered by the

increasing demand for coal from China.

"The November HBA was US$ 55.71. The

increase in the November HBA was caused

by the increase in coal demand (imports)

from China because China's domestic coal

prices were higher than imported coal

prices," said Agung when contacted on

Wednesday (04/11/2020). (wia)

Sedangkan di industri lain, konsumsi batu

bara berkurang banyak. Dia menyebutkan,

untuk jenis industri kertas misalnya, dari

target konsumsi tahun ini 6,64 juta ton,

tapi hingga Oktober baru tercapai 1,02 juta

ton. Lalu, konsumsi batu bara untuk tekstil,

dari target 6,54 juta ton, baru tercapai 0,20

juta ton.

"Industri lain berkurang banyak, artinya

perlu digalakkan lagi agar industri ini

kembali menyerap DMO. Kalau lihat

perkembangan, konsumsi batu bara untuk

industri kita agak turun di 2020,"

paparnya.

Meski konsumsi batu bara domestik masih

jauh dari target, tapi di sisi lain Harga

Batubara Acuan (HBA) Indonesia untuk

November 2020 naik 9,23% menjadi US$

55,71 per ton dari US$ 51 per ton pada

Oktober 2020.

Agung Pribadi, Kepala Biro Komunikasi,

Layanan Informasi Publik dan Kerja Sama

(KLIK) Kementerian Energi dan Sumber

Daya Mineral (ESDM), sebelumnya

mengatakan bahwa peningkatan HBA

November ini dipicu karena meningkatnya

permintaan batu bara dari China.

"HBA November sebesar US$ 55,71.

Kenaikan HBA November disebabkan oleh

meningkatnya permintaan (impor) batu

bara dari Tiongkok karena harga batu bara

domestik Tiongkok lebih tinggi daripada

harga batu bara impor," jelas Agung saat

dihubungi pada Rabu (04/11/2020). (wia)

Daily News Update Page 15

After the Rights Issue, BRMS Spurred Gold and Silver Projects

Finna U. Ulfah

A SUBSIDIARY of PT Bumi Resources Tbk.

in the metal mining sector, PT Bumi

Resources Minerals Tbk. (BRMS), is ready to spur operations after exercising pre-

emptive rights (HMETD) or rights issue.

BRMS has received the approval of conducting a rights issue at the extra-

ordinary general meeting of shareholders (EGMS) on Wednesday (11/11/2020) in

Jakarta.

Bumi Resources Minerals Director and Investor Relations Herwin Hidayat

explained that more than 99 percent of the shareholders (or their representatives)

registered and attending the EGMS have approved the company's plan to issue a

maximum of 24 billion new Series B shares and a maximum of 24.5 billion. new shares

for series II warrants, depending on the exercise.

"All the funds raised from the action will be

used by BRMS for business development, bil l settlement and working capital

financing ," he explained in an official statement.

The business development includes the

construction of a gold and silver factory with a production capacity of 4,000 tons

per day in Palu, construction of additional supporting facilities, purchasing mining

equipment, and detailed drilling related to the addition of gold and silver ore reserves

in Palu, as well as additional reserves of copper, gold and silver ore in Gorontalo.

Setelah Rights Issue, BRMS Pacu Proyek Emas dan Perak

Finna U. Ulfah

ANAK usaha PT Bumi Resources Tbk. di

bidang pertambangan logam, PT Bumi Resources Minerals Tbk. (BRMS), siap memacu operasional setelah melakukan hak memesan efek terlebih dahulu (HMETD) atau rights issue.

BRMS sudah sudah mendapatkan restu

melakukan rights issue dalam rapat umum pemegang saham luar biasa (RUPSLB)

pada Rabu (11/11/2020) di Jakarta.

Direktur dan Investor Relations Bumi Resources Minerals Herwin Hidayat men-jelaskan bahwa lebih dari 99 persen pemegang saham (atau perwakilannya) yang terdaftar dan hadir dalam RUPSLB telah menyetujui rencana perseroan untuk menerbitkan sebanyak-banyaknya 24 miliar saham baru Seri B dan sebanyak-banyaknya 24,5 miliar saham baru untuk waran seri II, tergantung dari pelaksana-annya.

"Seluruh dana yang dihimpun dari aksi tersebut akan digunakan BRMS untuk

pengembangan usaha, pelunasan tagihan, dan pembiataan modal kerja," paparnya

dalam keterangan resmi.

Pengembangan usaha itu meliputi pem-bangunan pabrik emas dan perak kapasitas

produksi 4.000 ton per hari di Palu, pem-bangunan fasilitas pendukung tambahan,

pembelian peralatan penambangan, dan pengeboran detail terkait penambahan

cadangan bijih emas dan perak di Palu, serta penambahan cadangan bijih tembaga,

emas, dan perak di Gorontalo.

Daily News Update Page 16

In addition, the funds will be used to pay off business invoices related to the construction of a gold and silver ore processing plant with a production capacity of 500 tons per day from the operation of the River Reef prospect in Palu and the development of the gold and silver ore prospect in Motomboto, Gorontalo which has been paid by the parent company, PT Bumi Resources, Tbk (BUMI).

Then, the funds will also be used to finance working capital for operational activities related to the gold and silver mining project operated by PT Citra Palu Minerals and the copper, gold and silver mining project operated by PT Gorontalo Minerals.

Meanwhile, the construction of two additional gold ore processing plants with a larger capacity will have an impact on increasing gold production, increasing sales and increasing corporate profits.

Not only that, the drilling work in an effort to increase the reserves and resources of gold ore using the proceeds from the rights issue is expected to have an impact on the longer productive mine life. Editor: Hafiyyan

Selain itu, dana akan digunakan pelunasan tagihan usaha terkait pelaksanaan kons-truksi pabrik pengolahan bijih emas dan perak dengan kapasitas produksi 500 ton per hari dari kegiatan operasi prospek River Reef di Palu dan pengembangan prospek bijih emas dan perak di Motomboto, Gorontalo yang telah dibayarkan oleh induk usaha, PT Bumi Resources, Tbk (BUMI).

Kemudian, dana juga akan digunakan untuk pembiayaan modal kerja untuk kegiatan operasional terkait dengan proyek tambang emas dan perak yang dioperasikan oleh PT Citra Palu Minerals dan proyek tambang tembaga, emas dan perak yang dioperasikan oleh PT Gorontalo Minerals.

Adapun, pembangunan dua tambahan pabrik pengolahan bijih emas dengan kapasitas yang lebih besar akan berdampak terhadap peningkatan produksi emas, kenaikan pen-jualan, dan kenaikan laba perusahaan.

Tidak hanya itu, pekerjaan pengeboran dalam usaha untuk menambah jumlah cadangan dan sumber daya bijih emas meng-gunakan dana hasil rights issue itu diharap-kan dapat berdampak terhadap umur tambang produktif yang semakin panjang. Editor : Hafiyyan

Benefits of Coal Gasification in

Indonesia, Attract Investments to Suppress Imports

Pipit Ika Ramadhani

THE GOVERNMENT continues to encourage

downstream efforts and accelerate the increase in added value of coal. One of them is the coal processing program into dimethyl ether (DME) or coal gasification to be used as an alternative to LPG, whose import figures continue to swell every year.

Manfaat Gasifikasi Batu Bara di

Indonesia, Tarik Investasi hingga Tekan Impor

Pipit Ika Ramadhani

UPAYA hilirisasi dan percepatan pening-katan nilai tambah batu bara terus didorong oleh pemerintah. Salah satunya adalah program pemrosesan batu bara menjadi dimethyl ether (DME) atau gasifikasi batu bara untuk digunakan sebagai alternatif pengganti LPG yang angka impornya terus membengkak setiap tahun.

Daily News Update Page 17

Based on data from the Ministry of Energy and Mineral Resources, LPG imports in

2020 have reached 77.63 percent of the total national need of 8.81 million tons.

Without efforts to downstream coal, the ratio of LPG imports could increase to

83.55 percent of the total demand for 11.98 million tons in 2024.

Bukit Asam Corporate Secretary

Apollonius Andwie C explained, PT Bukit Asam Tbk (PTBA) as a pioneer in

developing the coal downstream business continues to prove and carry out its

commitment to maintaining national energy security.

"PTBA's commitment is reflected in the seriousness of the development of down-

stream coal with plans to build a coal gasification plant into a DME located in

Tanjung Enim, South Sumatra," he explained in a written statement, Wednes-

day (11/11/2020).

PTBA targets a gasification project

development cooperation business agreement to be signed in November 2020

together with PT Pertamina (Persero) and Air Products and Chemicals, Inc. (USA) as

an investor.

Preparation for the construction of the Coal to DME project will begin in early

2021 and the factory is targeted to operate in the second quarter of 2024. This

downstream project has also been approved by President Joko Widodo as

part of the Priority Project as stipulated in Presidential Regulation No. 18/2020.

In line with President Joko Widodo's vision, this downstream utilization

program and increased coal value added can certainly provide a number of benefits

and positive impacts for Indonesia.

Berdasar data Kementerian Energi dan Sumber Daya Mineral, impor LPG pada

2020 telah mencapai 77,63 persen dari total kebutuhan nasional sebanyak 8,81

juta ton. Tanpa upaya hilirisasi batu bara, rasio angka impor LPG bisa naik menjadi

83,55 persen dari total kebutuhan 11,98 juta ton di 2024.

Sekretaris Perusahaan Bukit Asam

Apollonius Andwie C menjelaskan, PT Bukit Asam Tbk (PTBA) sebagai pionir

pengembangan usaha hilirisasi batu bara terus membuktikan dan menjalankan

komitmennya menjaga ketahanan energi nasional.

"Komitmen PTBA tercermin dari keseriusan pengembangan hilirisasi batu

bara dengan rencana pembangunan pabrik gasifikasi batu bara menjadi DME yang

berlokasi di Tanjung Enim, Sumatera Selatan," jelas dia dalam keterangan ter-

tulisnya, Rabu (11/11/2020).

PTBA menargetkan kesepakatan bisnis

kerja sama pengembangan proyek gasifikasi dapat ditanda- tangani pada

November 2020 bersama dengan PT Pertamina (Persero) dan Air Products and

Chemicals, Inc. (USA) sebagai investor.

Persiapan konstruksi proyek Coal to DME ini akan dimulai pada awal tahun 2021 dan ditargetkan pabrik beroperasi pada Triwulan-II tahun 2024. Proyek hilirisasi ini juga telah disetujui oleh Presiden Joko Widodo sebagai bagian dari Proyek Prioritas sebagaimana tertuang dalam Peraturan Presiden Nomor 18 Tahun 2020.

Sejalan dengan visi Presiden Joko Widodo, program pemanfaatan hilirisasi dan peningkatan nilai tambah batu bara ini tentunya bisa memberikan sejumlah manfaat dan dampak positif bagi Indonesia.

Daily News Update Page 18

Benefits of DME

The following are some of the benefits and added values of the coal downstream project into a DME:

- Development of a coal gasification project into a DME will bring in an investment of USD 2.1 billion or equivalent to Rp 32 trillion to Indonesia so that it can increase economic growth

- The construction of the factory will utilize PTBA's potential low-calorie coal reserves

of 180 million tonnes for 30 years

- The coal gasification plant will process as

much as 6 million tons of coal per year to be processed into 1.4 million tons of DME.

This product is able to help reduce LPG imports by more than 1 million tons per

year

- The reduction in LPG imports can save

the country's foreign exchange reserves by Rp. 8.7 trillion per year or Rp. 261 trillion

for 30 years.

In addition to bringing a number of benefits that have been mentioned above, downstream coal certainly also has a multiplier effect or a sustainable effect for Indonesia.

Among others are:

- Multiplier effect in the form of direct benefits to the government in the amount of Rp. 800 billion per year or Rp. 24 trillion for 30 years

- Trade balance savings of approximately Rp 5.5 trillion per year or Rp 165 trillion for 30 years

- Empowerment of national industries by involving local workers and absorbing a total workforce of 10,570 people during the construction phase and 7,976 people during the operation period.

Manfaat DME

Berikut adalah sejumlah manfaat dan nilai tambah dari proyek hilirisasi batu bara menjadi DME:

- Pembangunan proyek gasifikasi batu bara menjadi DME akan mendatangkan investasi sebesar USD 2,1 miliar atau setara dengan Rp 32 triliun ke Indonesia sehingga dapat meningkatkan pertumbuhan ekonomi

- Pembangunan pabrik akan memanfaatkan cadangan batu bara kalori rendah PTBA yang berpotensi tidak dapat di jual sebanyak 180 juta ton selama 30 tahun

- Pabrik gasifikasi batu bara akan mengolah sebanyak 6 juta ton batu bara per tahun untuk diproses menjadi 1,4 juta ton DME. Produk ini mampu membantu mengurangi impor LPG sebanyak lebih dari 1 juta ton per tahun

- Pengurangan impor LPG tersebut dapat menghemat cadangan devisa negara sebesar Rp 8,7 triliun per tahun atau Rp 261 triliun selama 30 tahun.

Selain membawa sejumlah manfaat yang sudah disebutkan di atas, hilirisasi batu bara tentunya juga memiliki multiplier effect atau efek berkesinambungan bagi Indonesia.

Di antaranya adalah:

- Multiplier effect berupa manfaat langsung yang diperoleh pemerintah senilai Rp 800 miliar per tahun atau Rp 24 triliun selama 30 tahun

- Penghematan neraca perdagangan sebesar kurang lebih Rp 5,5 triliun per tahun atau senilai Rp 165 triliun selama 30 tahun

- Pemberdayaan industri nasional dengan melibatkan tenaga lokal dan penyerapan jumlah tenaga kerja sebanyak 10.570 orang saat tahap konstruksi dan 7.976 orang selama masa operasi.

Daily News Update Page 19

Timah (TINS) Follows the Legal Process Regarding the Koba Tin

Bankruptcy Report Reporter: Dimas Andi | Editor: Khomarul

Hidayat

PT TIMAH Tbk (TINS) chose to follow the legal process related to the problem that had entangled Koba Tin. TINS still has to deal with the issue of having a 25% stake in the tin mine owned by PT Koba Tin. The Koba Tin Contract of Work (KK) has ended since 2013 and is now reportedly bankrupt.

For information, apart from being owned by TINS, 75% of Koba Tin shares are owned by Malaysia Smelting Group. Koba Tin has a tin mining area of 41,510 hectares (Ha). The Koba Tin Contract of Work was valid from October 16, 1971 to March 2013.

Amid the news of Koba Tin 's bankruptcy, this company actually still has a number of obligations, such as post-mining activities and creditors' payments. The fate of TINS' 25% stake in Koba Tin is also still confusing over this problem.

The management of TINS does not say much about the development of the case that is currently surrounding Koba Tin. Timah Corporate Secretary Muhammad Zulkarnaen only said that his party has the attitude to hand over the problems faced by Koba Tin to the authorities, including the commercial court. Basically TINS always strives to respect the applicable legal process.

"We remain consistent with following the legal process because this has been handled by the curator," said Zulkarnaen, Wednesday (11/11).

Timah (TINS) ikuti proses hukum soal kabar pailit Koba Tin

Reporter: Dimas Andi | Editor: Khomarul Hidayat

PT TIMAH Tbk (TINS) memilih mengikuti

proses hukum terkait masalah yang membelit Koba Tin. TINS masih harus berurusan dengan masalah kepemilikan saham 25% di tambang timah milik PT Koba Tin. Kontrak Karya (KK) Koba Tin sudah berakhir sejak 2013 lalu dan kini dikabarkan pailit.

Sebagai informasi, selain dimiliki oleh TINS, 75% saham Koba Tin dimiliki oleh Malaysia Smelting Group. Koba Tin memiliki area pertambangan timah seluas 41.510 hektare (Ha). Kontrak Karya Koba Tin berlaku sejak 16 Oktober 1971 sampai Maret 2013 silam.

Di tengah kabar pailitnya Koba Tin, perusahaan ini sebenarnya masih memiliki sejumlah kewajiban seperti kegiatan pasca tambang dan pembayaran kreditur. Nasib 25% saham TINS di Koba Tin juga masih simpang siur seiring masalah tersebut.

Manajemen TINS tidak banyak bicara mengenai perkembangan kasus yang membelit Koba Tin saat ini. Sekretaris Perusahaan Timah Muhammad Zulkarnaen hanya bilang, pihaknya punya sikap untuk menyerahkan masalah yang dihadapi Koba Tin kepada pihak berwajib, termasuk pengadilan niaga. Pada dasarnya TINS selalu berupaya menghormati proses hukum yang berlaku.

“Kami tetap konsisten dengan mengikuti proses hukum karena ini sudah ditangani oleh kurator,” kata Zulkarnaen, Rabu (11/11).

Daily News Update Page 20

The Director General of Mineral and Coal at the Ministry of EMR Ridwan Djamaluddin and the Special Staff of the Ministry of SOE Arya Sinulingga have not answered Kontan's questions regarding the attitude and role of these two ministries in overcoming this problem.

In the previous news, EMR Ministry's Mineral and Coal Development Director Muhammad Wafid said that even though the Koba Tin tin mine has a termination status, a number of obligations held by this company still have to be resolved.

Regarding the former Koba Tin mining area, Wafid confirmed that the tin mine has been designated as a State Reserve Area (WPN). However, there was no further explanation regarding the potential to auction off the former Koba Tin mine. This is because the local government of Bangka Belitung is proposing adjustments for spatial needs.

"The area is designated as WPN, but is in the process of proposing changes to the mining area by the Babel Government. In accordance with the needs and adjustments to the Babel layout," said Wafid on 20 June 2020.

Direktur Jenderal Mineral dan Batu Bara Kementerian ESDM Ridwan Djamaluddin maupun Staf Khusus Kementerian BUMN Arya Sinulingga belum menjawab pertanyaan Kontan perihal sikap dan peran kedua kementerian ini dalam meng-atasi masalah tersebut.

Dalam berita sebelumnya, Direktur Bina Program Minerba Kementerian ESDM Muhammad Wafid menyampaikan, kendati tambang timah Koba Tin berstatus ter-minasi, sejumlah kewajiban yang dimiliki oleh perusahaan ini masih harus dituntas-kan.

Terkait eks wilayah pertambangan Koba Tin, Wafid mengonfirmasi, tambang timah tersebut sudah ditetapkan sebagai Wilayah Pencadangan Negara (WPN). Namun, tidak dijelaskan lebih lanjut perihal potensi untuk melelang eks tambang Koba Tin tersebut. Ini mengingat pemerintah daerah Bangka Belitung sedang mengusulkan penyesuaian untuk kebutuhan tata ruang.

“Wilayahnya ditetapkan sebagai WPN, namun dalam proses usulan perubahan wilayah pertambangan oleh Pemda Babel. Sesuai dengan kebutuhan dan penyesuaian tata ruang Babel,” ungkap Wafid pada 20 Juni 2020 lalu.

This PTBA project is claimed to

be losing Rp 5 trillion, how come?

Denis Riantiza Meilanova

THE COAL gasification project developed by PT Bukit Asam (Persero) Tbk. in Sumatra it is estimated that this could cause losses of up to Rp 5 trillion or around US$ 377 million. This is the finding of...

Proyek PTBA Ini Diklaim Bakal

Rugi Rp5 Triliun, Kok Bisa? Denis Riantiza Meilanova

PROYEK gasifikasi batu bara yang

dikembangkan oleh PT Bukit Asam (Persero) Tbk. di Sumatra diperkirakan

dapat menyebabkan kerugian hingga Rp5 triliun atau sekitar US$377 juta. Hal ini

merupakan temuan dalam...

Daily News Update Page 21

This is the finding of a recent study released by the international study institute, the Institute for Energy Economics and Financial Analysis (IEEFA).

IEEFA Financial Researcher and Analyst Ghee Peh reminded that in connection with the economic contraction due to the Covid-19 crisis, it is not the right step to provide subsidies to energy projects that do not make economic sense.

"The price of coal is currently below breakeven for almost all Indonesian coal companies listed on the stock exchange," said Ghee Peh in a press release, Wednesday (11/11/2020).

"Given the current situation, it will be difficult to justify providing subsidies and government support for a coal gasification project which will only incur financial losses," he said further.

The company's gasification project with the issuer code PTBA will produce methanol and will be developed to produce dimethyl ether (DME). The plan is for DME to be used to replace LPG imported by Indonesia.

IEEFA estimates that the project could incur a loss of Rp 5 trillion or US$ 377 million annually after deducting all operating and financing costs. This could erode the savings gained from reducing LPG imports by up to Rp266.7 billion or US$ 19 million.

Ghee Peh considered replacing LPG with DME did not make economic sense. “Our calculations show that the production costs of DME will be double the cost of importing LPG. The total cost of building a DME production facility is Rp 6.5 million per ton or US$ 470 per ton, almost double the cost that Indonesia has spent on importing LPG, which so far is mostly used for household needs,” he said.

Hal ini merupakan temuan dalam studi terbaru yang dirilis lembaga kajian inter-nasional Institute for Energy Economics and Financial Analysis (IEEFA).

Peneliti dan Analis Keuangan IEEFA Ghee Peh mengingatkan bahwa terkait dengan kontraksi ekonomi akibat krisis Covid-19, maka bukan langkah yang tepat memberikan subsidi kepada proyek energi yang secara ekonomi tidak masuk akal.

“Harga batu bara saat ini berada di bawah breakeven bagi hampir semua perusahaan batu bara Indonesia yang terdaftar di bursa saham,” ujar Ghee Peh melalui siaran pers, Rabu (11/11/2020).

“Mengingat situasi saat ini, maka akan sulit untuk membenarkan pemberian subsidi dan dukungan pemerintah pada proyek gasifikasi batu bara yang hanya akan mendatangkan kerugian finansial,” katanya lebih lanjut.

Proyek gasifikasi perusahaan dengan kode emiten PTBA tersebut akan memproduksi methanol dan akan dikembangkan untuk mem-produksi dimethyl ether (DME). Rencananya, DME digunakan untuk menggantikan LPG yang diimpor Indonesia.

IEEFA memperkirakan bahwa proyek ini dapat menyebabkan kerugian Rp5 triliun atau US$377 juta setiap tahun setelah mengu-rangi semua biaya operasi dan pembiayaan. Ini dapat menggerus penghematan yang didapatkan dari mengurangi impor LPG hingga Rp266,7 miliar atau US$19 juta.

Ghee Peh menilai menggantikan LPG dengan DME tidak masuk akal secara ekonomi. “Perhitungan kami menunjukkan bahwa biaya produksi DME akan dua kali lipat dari biaya impor LPG. Total biaya membangun fasilitas produksi DME adalah Rp6,5 juta per ton atau US$470 per ton, hampir dua kali lipat dari biaya yang Indonesia keluarkan untuk mengimpor LPG yang sejauh ini paling banyak digunakan untuk kebutuhan rumah tangga,” katanya.

Daily News Update Page 22

According to him, the Indonesian govern-ment is currently burdened with the recovery of the national economy as well as the relief requests submitted by the coal industry. "It is not wise if the burden is added to the obligation to support a project that will only cause losses." Editor: Rio Sandy Pradana

Menurutnya, Pemerintah Indonesia saat ini sudah dibebankan dengan pemulihan eko-nomi nasional serta permintaan keringanan yang diajukan oleh industri batu bara. “Rasanya tidak bijak apabila beban tersebut ditambah dengan keharusan untuk men-dukung proyek yang hanya akan menyebab-kan kerugian.” Editor : Rio Sandy Pradana

Coal Prices Are Still Continuously Raising, Will It Be

Until When? Tirta Citradi, CNBC Indonesia

THE PRICE of Newcastle thermal coal for

contracts that are actively transacted on the futures exchange continues its strengthening trend yesterday, Wednesday (11/11/2020) even though it is only slightly.

The price of the Newcastle coal futures contract closed slightly higher by 0.08% to US$ 62.45/ton and became the highest level since the last seven months to be precise since 6 April.

The recent increase in prices has occurred in line with improving investor risk appetite due to good news coming from the Covid-19 vaccine candidate. One vaccine developer who is already in the final phase reports an initial analysis of the results of his third phase clinical trial.

The developer is Pfizer in collaboration with BioNTech. The developed vaccine candidate is claimed to have an efficacy rate of more than 90%. This is still preliminary analysis and the road to global vaccine distribution still has a long way to go.

Harga Batu Bara Masih Lanjut Naik, Mau sampai Kapan?

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal Newcastle untuk

kontrak yang aktif ditransaksikan di bursa

berjangka masih melanjutkan tren penguatannya kemarin, Rabu (11/11/

2020) meski hanya tipis saja.

Harga kontrak futures (berjangka) batu

bara Newcastle ditutup menguat sangat tipis sebesar 0,08% ke US$ 62,45/ton dan

menjadi level tertinggi sejak tujuh bulan terakhir tepatnya sejak 6 April silam.

Kenaikan harga belakangan ini terjadi seiring dengan risk appetite investor yang

membaik akibat kabar gembira yang datang dari kandidat vaksin Covid-19.

Salah satu pengembang vaksin yang sudah berada di fase akhir melaporkan analisa

awal hasil uji klinis tahap ketiganya.

Pengembang tersebut adalah Pfizer yang berkolaborasi dengan BioNTech. Kandidat

vaksin yang dikembangkan diklaim memiliki tingkat keampuhan lebih dari

90%. Ini masih analisa awal dan jalan menuju ke distribusi vaksin secara global

masih panjang.

Daily News Update Page 23

However, this good news is at least able to increase the optimism of many people that

the economy will recover soon.

When the economy recovers, it is hoped that electricity consumption will increase

and the manufacturing sector will move again so that it can boost coal demand,

which this year has been sluggish due to the lockdown to deal with the Covid-19

pandemic.

Good news also comes from the western world, namely the United States (US). The

US government agency (EIA) predicts the US power sector will consume 546 million

tonnes (495 million metric tons) of coal by 2021, up from the expected 443 million

this year.

The agency raised its coal burn estimates

for 2020 and 2021 by 10 million tonnes and 24 million tonnes, respectively,

compared with last month's report. The coal share of total generation in the US is

expected to increase to 25% in 2021 from 20% this year.

In the future, the arrival of winter and the

adoption of a new import quota policy has the potential to push up prices.

"In the medium term, we still have a

positive perception of the price of coal. Global demand will gradually increase,

coupled with reduced production, will balance prices," said Toby Hassel, Refinitiv

Analyst.

Although the medium-term prospect of

coal prices is considered positive, in the short term, coal is overshadowed by a

correction, considering that the price has shot high in less than a month. CNBC

INDONESIA RESEARCH TEAM (twg/twg)

Namun kabar baik ini setidaknya mampu meningkatkan optimisme banyak orang bahwa ekonomi akan segera pulih kembali.

Ketika ekonomi pulih diharapkan konsumsi listrik meningkat dan sektor industri manufaktur kembali bergerak sehingga bisa mendongkrak permintaan batu bara yang tahun ini lesu akibat lockdown untuk menangani pandemi Covid-19.

Kabar baik juga datang dari dunia barat yakni Amerika Serikat (AS). Lembaga pemerintah AS (EIA) memprediksi sektor tenaga listrik AS bakal mengkonsumsi 546 juta ton (495 juta metrik ton) batu bara pada tahun 2021, naik dari yang di-harapkan 443 juta tahun ini.

Badan tersebut menaikkan perkiraan pembakaran batu bara tahun 2020 dan 2021 masing-masing sebesar 10 juta ton dan 24 juta ton dibandingkan dengan laporan bulan lalu. Pangsa batu bara dari total pembangkitan di AS diharapkan naik menjadi 25% pada 2021 dari 20% tahun ini.

Ke depan, seiring dengan masuknya musim dingin dan penetapan baru kebijakan kuota impor berpotensi akan membuat harga terdongkrak.

"Dalam jangka menengah, kami masih berpersepsi positif terhadap harga batu bara. Permintaan global lambat laun akan meningkat, yang dibarengi dengan pengu-rangan produksi, akan menyeimbangkan harga," sebut Toby Hassel, Analis Refinitiv.

Meski prospek jangka menengah harga batu bara dinilai positif tetapi dalam jangka pendek batu bara dibayangi oleh koreksi mengingat harganya sudah melesat tinggi hanya dalam kurun waktu kurang dari satu bulan. TIM RISET CNBC INDONESIA

(twg/twg)

Daily News Update Page 24

Seven illegal gold miners apprehended in crackdown in West Aceh Reporter: Teuku DI, Rahmad Nasution; Editor: Fardah Assegaf

THE WEST Aceh police cracked down on seven traditional gold miners and shut down two

illegal gold mining pits in the sub-districts of Sungai Mas and Pante Ceureumen, West Aceh District, Aceh, early this week.

The police officers also confiscated two excavators from the mining pits, Head of the West Aceh Police Precinct's Criminal Investigation Unit Adjunct Sen. Coms Parmohonan Harahap stated in Meulaboh on Monday evening (Nov 9).

Three of the seven suspects were arrested in the Reungeut neighborhood area of Pante Ceureumen Sub-district, while four others were apprehended in Lancong Village, Sungai Mas Sub-district, Harahap revealed.

The police investigators continue to interrogate the suspects to blow the lid off the financiers behind the illegal gold mining activities that were causal to environmental degradation, he noted.

Environmental damage, resulting in landslides and flash floods in various parts of Indonesia, has oftentimes been attributable to illegal mining activities.

In this context, President Joko Widodo (Jokowi) underscored the criticality of curbing illegal gold mining activities to help prevent the recurrence of natural disasters in future.

During his visit to Banjar Irigasi Village in Lebak Gedong Sub-district, Lebak District, Banten Province, on January 7, 2020, President Jokowi had instructed the local authority to end illegal gold mining.

The head of state contended that illegal mining activities had fueled deforestation in Banten Province and should be thwarted to prevent a relapse of flash floods in future.

Early this year, the Banten Provincial Police had undertaken sustained efforts to curtail illegal gold mining activities, including by shutting down 10 pits found within the Mount Halimun Salak National Park (TNGHS) area, Lebak, Banten.

According to Head of the Banten Provincial Police's Operational Bureau Sen. Coms. Aminudin Roemtaat, members of Banten's anti-illegal gold mining task force, comprising military and police personnel as well as representatives of several related agencies in the province, had closed the illegal mining pits.

During that time, members of the task force had conducted land patrols by visiting the blocks of Cimari, Cirotan, Cidandak, Gunung Leutik, Muara Tilu, Bunung Masigit, Pasir Wiru, Sopal, Cigadang, Ciburuluk, Ciawitali, Cikatumburi, Pasir Ipis, Ciburiling, Cikopo, and Cimadur.

Roemtaat pointed out that some of the sealed pits were found in the area of Citorek track, adding that the total number of illegal pits may reach "hundreds" and are located in areas, with challenging terrain.

Daily News Update Page 25

Flash floods that hit Lebak District on January 1, 2020, claimed 10 lives and damaged 19 schools in six districts in addition to wrecking 1,410 houses. EDITED BY INE

Thiess hires Indigenous trainees at Prominent Hill Vanessa Zhou

THIESS has strengthened its workforce at OZ Minerals’ Prominent Hill copper-gold mine in

South Australia with the addition of three Aboriginal Australian trainees over the past 12 months.

Thiess had already been providing full mining services at the mine for 13 years until the end of the open pit mine life in 2018, when a subsequent run of mine (ROM) and stockpile rehandling tender provided an opportunity to extend the work to reduce the impact of the project’s closure.

Under the current $112 million, five-year agreement with OZ Minerals, Thiess continues to deliver its services alongside its Indigenous-owned sub-contractor Anangu Mining while training local Antakirinja Matu-Yankunytatjara people.

The training focusses on increasing Anangu’s plant and equipment fleet, labour skills and commercial capabilities.

“I’ve been pleasantly surprised by the diversity of the workforce and their focus on ensuring we achieve long-term, secure employment,” program participant Gabrielle Miller said.

“This opportunity has also provided a steady income stream that benefits me, my family and the wider community.”

Thiess began its work at Prominent Hill in 2005 to provide early feasibility works.

The Philippines declares ‘no new coal plants’ but campaigners say it’s not enough

The plan won't apply to coal projects already in the works, however.

By Fermin Koop

FOLLOWING a reassessment of the country’s energy system, the Philippines declared a

moratorium on new coal-fired plants. The move halts applications for new plants but doesn’t extend to previously approved projects already in the pipeline, a decision questioned by environmental organizations.

Daily News Update Page 26

“While we have initially embraced a technology-neutral policy, our periodic assessment of our country’s energy requirements is paving the way for innovative adaptations in our policy

direction,” said Energy Secretary Alfonso Cusi in a statement, previously questioned for not pursuing carbon-free power generation.

The government hasn’t yet identified the power plants that would be affected by the

moratorium. But a network of anti-coal groups said in a statement that the ban would mean the cancellation of over 13GW of new coal plants. The move will help the government have a

“more flexible” power supply mix, said Cusi.

As in other countries, coal is seen as a baseload energy resource in the Philippines, sufficiently cost-effective to provide a constant stream of power. It accounts for 44.5% of the

total energy mix, with 28 coal-fired power plants operating throughout the country. This has long been questioned by environmental organizations.

The reliance on coal for electricity generation has led to regular power outages and increasing disruptions in the energy sector. The pandemic exacerbated the issue. Climate predictions of

more frequent and intense extreme weather events such as typhoons also point to the need for a more flexible energy system.

“The decision is an admission of what we have long been saying about coal: that it is

environmentally destructive, incompatible with climate goals, and unable to power our economy sustainably and reliably,” said in a statement Gerry Arances, executive director of

the Center for Energy, Ecology, and Development (CEED).

Before the new plan, the government had approved new 22 coal plants, which would increase coal’s share in the energy matrix to 53%. This goes against the Philippines’ decarbonization

commitments under the Paris Agreement on climate change.

Still, these new plants will move forward as the ban only applies to proposed projects that

haven’t yet been assessed and approved by the government. Coal projects that have been granted environmental compliance certificates and other permits from local governments in

the areas where they’re based are also not included in the ban.

“The significance of the announcement will be ultimately judged by what the moratorium actually covers,” Lidy Nacpil from the Asian People’s Movement on Debt and Development

(APMDD), said in a statement. “The energy department must enforce a moratorium on all coal power developments, including all coal power projects in the pipeline.”

Looking ahead, the government hopes to grow renewables in the energy mix and reduce the

high cost of electricity, taking advantage of the dropping costs of clean energy. They also want to encourage foreign investments in large scale geothermal projects, announcing more

flexible rules on foreign ownership limits.

Daily News Update Page 27

Brazil’s Vale to avoid driving down global iron ore market CFO states that miner will place caution before capacity as it looks to press forward with

its recovery from deadly 2019 dam catastrophe

Dominic Ellis

BRAZILIAN miner Vale SA will place caution before capacity as it seeks to avoid driving

down the iron ore market and presses forward with its recovery from a deadly dam break in 2019.

Speaking at an interview during the Reuters Commodity Trading Summit, Luciano Siani, chief financial officer for Vale, says that the miner is prepared to raise its capacity using safer and less polluting methods to 450 million tonnes in about five years – almost 50 percent more than forecast production for 2020.

"We are going to be responsible and we are not going to overflow the markets with iron ore," he adds, asserting that the miner would not use full capacity if an expected surge in manufacturing-driven Asian demand does not materialise.

“The intent is not to oversupply the markets towards 450 (million tonnes). It is to have the capacity available to meet the market if the need be,” Siani explains.

As the only global iron ore miner with sizeable plans to expand capacity, Vale’s production decisions affect prices of steel products around the world. Its path to growth includes new mines in the north of Brazil, as well as reviving production at some of its older mines in the country’s traditional mining heartland of Minas Gerais.

In the third quarter of this year, the miner briefly recovered its status as top global producer after raising output slightly above its Australian competitor, Rio Tinto, the Reuters report points out.

The Australian firm overtook Vale after a deadly dam burst in the city of Brumadinho in 2019 left 270 people dead and obliged the Brazilian miner to shut down other risky dams holding mining waste.

“Everyone understands that the big swing factor in supply is Vale,” Siani says. “The good news is that the capacity is here, the mines are here, the processing plants are here, the railways are here.”

Although Vale reported losses last year following expenses related to the Brumadinho disaster, revenue continued to rise. A reduction in world supply after Vale shaved around a quarter from its production target for 2019 helped to fuel a surge in iron ore prices, which hit a six-year high in mid-September, Reuters says.

The mining firm says that it aims to eventually neutralise its indirect greenhouse gas emissions – it is expected to announce its first targets for ‘Scope 3’, which refers to emissions anywhere upstream or downstream the supply chain, as soon as next month.

Daily News Update Page 28

Furthmore, Siani asserts that Environmental, Social and Governance (ESG) targets will be key

moving forwards for Vale, as it looks to recover credibility with investors. By the time it

reaches 400 million tonnes in about two years, the company expects to be a benchmark in

safety and to eliminate the share discount over its peers, he adds.

“ESG plays a big part of what Vale intends to be in three years’ time, it is not all about

production,” he concludes.

Newmont leads mining companies ESG ranking Bloomberg News

WITH heavy industries in a race to prove their environmental and social credentials to

increasingly demanding investors, mining took a small step backward last quarter.

ESG perceptions of mining deteriorated slightly, with the most negativity coming from

community relations and human rights, according to a report by London-based Alva that

assigns scores based on publicly available content from social media to NGO research. The

most positive issues for the sector were energy management and greenhouse-gas emissions.

Newmont (NYSE: NEM) led the industry with an ESG score of +19 after the gold powerhouse

ratified an agreement with the Cedros community in Mexico.

Companies around the world, particularly raw-material producers, are stepping up

sustainability efforts amid heightened scrutiny by the general public and investors.

At the other end of the 20-company ranking was Rio Tinto Group, which scored -79

after explosions that damaged two Aboriginal Australian sites

ESG and value-focused exchange traded funds had record net inflows of $18.8 billion in the

third quarter, with flows on track to more than double for all of 2020, according to Bloomberg

Intelligence. Those focused on climate change might accelerate from the record pace, with

potential boosts from the European Green Deal and a Joe Biden presidency in the U.S., BI

analyst Shaheen Contractor said.

“There was a notion of ESG being a risk to be mitigated,” Alastair Pickering, co-founder and

chief strategy officer at Alva, said in a telephone interview. “Now we’re seeing very clearly the

signal shifting, whereby different stakeholders are expecting companies to be actively

involved in healing, rather than just not doing harm.” (By James Attwood)

Daily News Update Page 29

Australia seaborne met coal remains under pressure following

Chinese import ban Author: Jun Kai Heng, Editor: Jonathan Fox

CONTINUED oversupply pressured the Australian coking coal price amid ongoing Chinese

import restrictions.

S&P Global Platts assessed the Premium Low-Vol HCC index at $104.75/mt FOB Australia Nov. 10, up 25 cents/mt on the day from a four-year low.

Sources pointed to expectations of increasing diversion of Australian coking coal sales away from China, with continued uncertainty over the lifting of import restrictions in January.

While market participants predicted that Indian end-users would benefit from the increased supply of Australian coking coal, a mismatch between cargoes on offer and specific end-user demand has led to a flattening of spreads between premium medium volatile and premium low volatile matter coal brands.

The brand relativity between Saraji and Goonyella coal was assessed at parity in the FOB Australia market, compared with a $7/mt spread in the CFR China market.

Limited spot demand from Indian end-users for premium low-vol coking coal was a major factor behind the unusual change in brand relativities, market participants said.

Indian spot demand was largely directed toward premium mid-vol coking coal brands, amid an increasing number of offers for China-bound premium low-vol coal cargoes, several traders said.

Shipment data seen by Platts showed a sharp increase in Indian imports of Australian coking coal in September at over 3.5 million mt, from 2.2 million mt in August.

Market participants indicated that this was on the back of a recovery in Indian steel production after an easing of COVID-19 lockdown measures.

With US and Canadian coals fetching even higher prices in the Chinese market, import reliance on Australian coking coal could increase, an international trader said.