Daily News Update Page 1

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Aiming for US$ 5.98 billion in mining investment in 2021, see the strategy of the Ministry of ESDM Bidik investasi tambang US$ 5,98 miliar pada 2021, simak strategi Kementerian ESDM There is a rebuild furnace project, see the projected production of Vale Indonesia (INCO) this year Ada proyek rebuild furnace, simak proyeksi produksi Vale Indonesia (INCO) tahun ini Bumi Resources (BUMI) pays Tranche A worth US$ 334.8 million Bumi Resources (BUMI) Bayar Tranche A Senilai US$334,8 Juta Government Affirms Freeport Must Build New Smelter According to Target Pemerintah Tegaskan Freeport Harus Bangun Smelter Baru Sesuai Target Merdeka Copper Gold (MDKA) commodity reserves are limited, Pefindo assigns an idA rating Cadangan komoditas Merdeka Copper Gold (MDKA) terbatas, Pefindo tetapkan rating idA Government Promises Many Incentives for Coal Downstreaming Projects Pemerintah Janjikan Banyak Insentif Proyek Penghiliran Batu Bara United Tractors (UNTR) aims to sell 340,000 oz of gold in 2021, around 20% is hedged United Tractors (UNTR) bidik penjualan emas 340.000 oz di 2021, sekitar 20% dihedging Had Dropped, Coal Prices 'Raged' Again Back to US$ 85 Sempat Ambles, Harga Batu Bara 'Ngamuk' Lagi Balik ke US$ 85 Government Opportunities to Increase Coal Export Quota Pemerintah Berpeluang Tambah Kuota Ekspor Batu Bara

Kontan Kontan Bisnis Dunia Energi Kontan Bisnis Kontan CNBC Indonesia Dunia Energi

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Daily News Update Page 2

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Nickel prices are still racing, says Vale Indonesia (INCO) Harga nikel masih ngebut, ini kata Vale Indonesia (INCO) Global gold production in Q2 2020 was lowest in seven years Baru Gold receives approval for PT Tambang Mas Sangihe work plan China's tin output down 6.4% in 2020 on Myanmar disruption - Antaike India's coal import drops 17 per cent in April-November: mjunction Scientists use microwave oven to turn coal into graphite

Kontan Kitco News Global Mining Review Reuters Business Line Mining.com

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Daily News Update Page 3

Aiming for US$5.98 billion in mining investment in 2021, see the strategy of the Ministry of

ESDM Reporter: Ridwan Nanda Mulyana | Editor:

Herlina Kartika Dewi

THE DIRECTORATE General of Mineral

and Coal (Ditjen Minerba) of the Ministry of Energy and Mineral Resources (ESDM) has set a mining sector investment target of US$ 5.98 billion for 2021.

The Director General of Mineral and Coal at the Ministry of ESDM Ridwan Djamaluddin explained that the mining investment target in 2021 will come from 248 companies. In detail, the investment comes from 21 companies with Contract of Work (KK) status, 48 companies with PKP2B status and 3 Mining Business Permits (IUP) BUMN.

In addition, there are 2 companies with IUPK status, 30 Coal Center IUPs, 18 Mineral Center IUPs, 7 IUP OPK for Refining Processing, 77 regional IUPs, and 35 Mining Service Business Permits (IUJP) companies.

Ridwan conveyed that the strategy that will be carried out to achieve mineral and coal investment in 2021 is to spur mining downstream projects.

"The 2021 strategy closely monitors the construction of smelters and imposes sanctions on companies that fail to meet the targets set," he told Kontan.co.id, Sunday (10/1).

In addition, the government will also intensify facilities for resolving licensing constraints, such as the Borrow and Use of Forest Areas (IPPPKH).

Bidik investasi tambang US$5,98 miliar pada 2021, simak strategi Kementerian

ESDM Reporter: Ridwan Nanda Mulyana | Editor:

Herlina Kartika Dewi

DIREKTORAT Jenderal Mineral dan

Batubara (Ditjen Minerba) Kementerian Energi dan Sumber Daya Mineral (ESDM) mematok target investasi sektor tambang senilai US$ 5,98 miliar untuk tahun 2021.

Direktur Jenderal Minerba Kementerian ESDM Ridwan Djamaluddin menjelaskan, target investasi tambang di 2021 itu berasal dari 248 perusahaan. Rincinya, investasi berasal dari 21 perusahaan yang berstatus Kontrak Karya (KK), 48 perusahaan dengan status PKP2B dan 3 Izin Usaha Pertambangan (IUP) BUMN.

Selain itu, ada 2 perusahaan yang berstatus IUPK, 30 IUP Pusat Batubara, 18 IUP Pusat Mineral, 17 IUP OPK Olah Murni, 77 IUP daerah, dan 35 perusahaan Izin Usaha Jasa Pertambangan (IUJP).

Ridwan menyampaikan, strategi yang akan dijalankan untuk meraih investasi minerba di 2021 ialah dengan memacu proyek hilirisasi pertambangan.

"Strategi 2021 memonitor secara ketat pembangunan smelter dan memberikan sanksi kepada perusahaan yang tidak bisa memenuhi target yang ditetapkan," katanya kepada Kontan.co.id , Minggu (10/1).

Selain itu, pemerintah juga bakal meng-intensifkan fasilitas penyelesaian kendala perizinan, seperti Izin Pinjam Pakai Kawasan Hutan (IPPPKH).

Daily News Update Page 4

A strategy to spur investment is also carried out through the preparation of mining areas auction. ESDM Ministry's Minerba Development Director Muhammad Wafid Agung said that last year the auction for mining areas had indeed been postponed again.

The reason for postponing mining area tenders in 2019 and 2020 is due to a revision of the calculation of Information Data Compensation (KDI) and the moratorium after the issuance of Law Number 3 of 2020 or the new Minerba Law.

The Directorate General of Mineral and Coal has conducted an evaluation for the determination of 17 mining blocks (WIUP) and Special WIUP (WIUPK). Consists of 14 WIUP and 3 WIUPK. However, the 17 mining blocks cannot yet be determined because they are waiting for a derivative regulation from the new Minerba Law to be issued.

In planning the auction for mining areas in 2021, there are 8 WIUP blocks that are in the final evaluation process to be determined.

"However, the determination process is still waiting for the PP (Government Regulation) derived from Law No. 3/2020 to be issued," said Wafid.

For information, mining investment in 2020 was recorded at only US$ 3.7 billion or 47.75% of the 2020 target of US$ 7.75 billion.

According to Ridwan Djamaluddin, the investment achievement of US$ 3.7 billion was based on cumulative data conducted on January 7, 2021. He said the number would increase along with the data collection that was still continuing.

"This number will continue to grow because the end of 2020 data will be collected on January 18, 2021," said Ridwan.

Strategi untuk memacu investasi juga dilakukan melalui persiapan lelang wilayah tambang. Direktur Bina Program Minerba Kementerian ESDM Muhammad Wafid Agung mengatakan bahwa pada tahun lalu lelang wilayah tambang memang kembali ditunda.

Alasan dilakukan penundaan lelang wilayah tambang pada 2019 dan 2020 karena adanya revisi terhadap peng-hitungan Kompensasi Data Informasi (KDI) serta moratorium setelah terbitnya Undang-Undang Nomor 3 Tahun 2020 atau UU Minerba yang baru.

Ditjen Minerba telah melakukan evaluasi untuk penetapan Wilayah Izin Usaha Pertambangan (WIUP) dan WIUP Khusus (WIUPK) sebanyak 17 blok tambang. Terdiri dari 14 WIUP dan 3 WIUPK. Namun, 17 blok tambang tersebut belum dapat ditetapkan karena menunggu aturan turunan dari UU Minerba baru diterbitkan.

Dalam perencanaan lelang wilayah tambang pada tahun 2021, ada 8 blok WIUP yang sedang dalam proses evaluasi akhir untuk ditetapkan. "Tetapi, proses penetapan tersebut masih menunggu PP (Peraturan Pemerintah) turunan UU No. 3/2020 diterbitkan," kata Wafid.

Sebagai informasi, investasi tambang pada tahun 2020 tercatat hanya sebesar US$ 3,7 miliar atau 47,75% dari target tahun 2020 yang sebesar US$ 7,75 miliar.

Menurut Ridwan Djamaluddin, capaian investasi US$ 3,7 miliar itu berdasarkan data kumulatif yang dilakukan pada 7 Januari 2021. Kata dia, jumlahnya akan bertambah seiring dengan koleksi data yang masih berlanjut.

"Jumlah tersebut akan terus bertambah karena data akhir 2020 akan terkoleksi pada tanggal 18 Januari 2021," sebut Ridwan.

Daily News Update Page 5

To be sure, the investment realization of US$ 3.7 billion was the lowest, at least in the last five years. In 2015, the realization of mineral and coal investment was recorded at US$ 5.26 billion. A year later it was up to US$ 7.28 billion.

In 2017, mining investment fell to US$ 6.13 billion. In 2018 it reached its highest point at the level of US$ 7.48. Then in 2019 mineral and coal investment fell to US$ 6.5 billion.

Contacted separately, Chairman of the Indonesian Geological Experts Association (IAGI) Sukmandaru Prihatmoko assessed that the minimal realization of mineral and coal investment last year occurred due to the transition period of the Minerba Law from Law no. 4/2009 to Law no. 3/2020. Moreover, the regulations derived from the new Minerba Law have not yet been published.

"So that investors may also wait and see, especially those who want to invest in new projects," said Sukmandaru.

Furthermore, he said that the auction of mining areas is also important to stimulate investment and exploration. This is because Indonesia is deemed to need new target areas to find additional deposits in various mining commodities.

Sukmandaru said investors need legal certainty and investment and the value of KDI must be ensured to be competitive in order to attract investors. He also emphasized the need for the issuance of Government Regulations (PP) and derivative regulations of the Minerba Law.

"So PP and its derivative regulations need to be accelerated, so that the new Minerba Law can be implemented immediately. Auction (mining areas) is one way to attract investors, especially in the exploration sector," said Sukmandaru.

Yang pasti, realisasi investasi US$ 3,7 miliar tersebut menjadi yang terendah, paling tidak dalam lima tahun terakhir. Pada tahun 2015, realisasi investasi minerba tercatat sebesar US$ 5,26 miliar. Setahun kemudian naik menjadi US$ 7,28 miliar.

Pada tahun 2017, investasi tambang turun ke angka US$ 6,13 miliar. Pada tahun 2018 mencapai titik tertinggi di level US$ 7,48. Lalu pada 2019 investasi minerba merosot ke angka US$ 6,5 miliar.

Dihubungi terpisah, Ketua Umum Ikatan

Ahli Geologi Indonesia (IAGI) Sukmandaru Prihatmoko menilai, minimnya realisasi

investasi minerba tahun lalu terjadi lantaran masa transisi UU Minerba dari UU

No. 4/2009 ke UU No. 3/2020. Apalagi, aturan turunan dari UU Minerba baru itu

belum juga terbit.

"Sehingga mungkin para investor juga wait

and see, terutama bagi yang mau investasi di proyek baru," kata Sukmandaru.

Lebih lanjut, dia menyebut lelang wilayah tambang juga penting untuk meng-

gairahkan investasi dan juga eksplorasi. Sebab, Indonesia dinilai perlu target-target

area baru untuk menemukan tambahan deposit di berbagai komoditas tambang.

Sukmandaru bilang, investor memerlukan kepastian hukum dan investasi serta nilai

KDI yang harus dipastikan kompetitif agar bisa menarik investor. Dia juga menekan-

kan perlunya penerbitan Peraturan Pemerintah (PP) dan aturan turunan UU

Minerba.

"Jadi PP dan regulasi turunannya perlu

dipercepat, sehingga UU Minerba baru bisa segera diimplementasikan. Lelang (wilayah

tambang) adalah salah satu cara untuk menarik investor terutama di bidang

eksplorasi," jelas Sukmandaru.

Daily News Update Page 6

He is of the view, even though the conditions in 2021 are still overshadowed by the Covid-19 pandemic, investor interest is stil l possible to capture. Provided, the mining area auction is attractive with the determination of the area to be auctioned based on its potential, geological data and commodity priority.

"Even though the conditions are difficult, investor interest is still there. Regional priorities and types of commodities must be carried out properly, with an objective balance between the position of investors and the state," said Sukmandaru.

Dia berpandangan, meski kondisi 2021 masih dibayangi pandemi covid-19, namun minat investor masih mungkin untuk dijaring. Asalkan, lelang wilayah tambang tersebut menarik dengan adanya penentuan wilayah yang akan dilelang berdasarkan potensi, data geologi serta prioritas komoditasnya.

"Walaupun kondisi memang sulit, tapi minat investor masih ada. Prioritas wilayah dan jenis komoditas harus dilakukan dengan baik, dengan objektif berimbang antara kepantingan investor dan negara," pungkas Sukmandaru.

There is a rebuild furnace project, see the projected

production of Vale Indonesia (INCO) this year

Reporter: Akhmad Suryahadi | Editor: Anna Suci Perwitasari

PT VALE Indonesia Tbk (INCO)'s plan to

start a rebuild furnace 4 project this year is

predicted to affect the company's nickel production. Just so you know, the 4 rebuild

furnace project will take place from May to November 2021.

INCO Chief Financial Officer Bernardus Irmanto said the nickel production volume

this year will be lower than 70,000 tonnes due to all the rebuild activities for 5

months. "The figures will be announced later," he told Kontan.co.id, Friday (8/1).

As an illustration, Vale Indonesia produced 19,477 metric tons (MT) of nickel in matte

during the third quarter of 2020. This realization was 4% higher than...

Ada proyek rebuild furnace, simak proyeksi produksi Vale

Indonesia (INCO) tahun ini Reporter: Akhmad Suryahadi | Editor:

Anna Suci Perwitasari

RENCANA PT Vale Indonesia Tbk (INCO)

yang akan memulai proyek pembangunan ulang tungku (rebuild furnace) 4 pada tahun ini diprediksi akan mempengaruhi produksi nikel perusahaan. Asal tahu saja, proyek rebuild furnace 4 tersebut akan berlangsung pada Mei hingga November 2021.

Chief Financial Officer INCO Bernardus Irmanto mengatakan, volume produksi nikel di tahun ini akan lebih rendah dari 70.000 ton karena semua kegiatan rebuild selama 5 bulan. “Angkanya akan diumumkan kemudian,” kata dia kepada Kontan.co.id, Jumat (8/1).

Sebagai gambaran, Vale Indonesia mem-produksi 19.477 metrik ton (MT) nikel dalam matte sepanjang triwulan ketiga tahun 2020. Realisasi ini 4% lebih tinggi dibandingkan...

Daily News Update Page 7

This realization was 4% higher than the production volume produced in the second

quarter of 2020 which was only 18,701 MT.

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.

Last year, INCO, a member of the

Kompas100 index, targeted a production volume of 73,700 metric tons. So, for this

year , INCO is preparing a capital expenditure (capex) allocation of around

US$ 130 million. Bernardus explained that most of the capex was intended for furnace

rebuild 4, mining infrastructure develop-ment, and rejuvenation of equipment. The

entire allocation of capital expenditures will be funded from the company's internal

cash.

Meanwhile last year, the company's capex

absorption was in the range of US$ 120 million as planned.

For this year, INCO is also still focusing on

two projects, namely completing the final investment decision (FID) requirements

for the Pomalaa and Bahodopi projects.

To maintain performance in 2021, Bernardus said efficiency measures had

been taken by INCO. Specifically, the unit operating costs in 2020 will be below US$

7,000 per tonne.

"This is a good achievement and one of its

contributions is from the efficiency measures that we have planned," he

concluded.

Realisasi ini 4% lebih tinggi dibandingkan dengan volume produksi yang dihasilkan

pada kuartal kedua 2020 yang hanya 18.701 MT.

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.

Tahun lalu, INCO, anggota indeks Kompas-100 ini, menargetkan volume produksi

sebesar 73.700 metrik ton.

Nah, untuk tahun ini, INCO menyiapkan

alokasi belanja modal atau capital expenditure (capex) Sekitar US$ 130 juta.

Bernardus merinci, sebagian besar capex ini ditujukan untuk rebuild furnace 4,

pengembangan infrastruktur tambang, dan peremajaan alat. Keseluruhan alokasi

belanja modal akan didanai dari kas internal perusahaan.

Sementara tahun lalu, penyerapan capex perusahaan ada di kisaran US$ 120 juta

seperti yang direncanakan.

Untuk tahun ini, INCO juga masih berfokus

pada dua proyek, yaitu menyelesaikan persyaratan final investment decision

(FID) untuk proyek Pomalaa dan Bahodopi.

Untuk menjaga kinerja di 2021, Bernardus

berujar langkah-langkah efisiensi telah dilakukan oleh INCO. Secara spesifik, unit

biaya operasi di tahun 2020 berada di bawah angka US$ 7.000 per ton.

“Hal itu merupakan pencapaian yang baik dan salah satu kontribusinya adalah dari

langkah efisiensi yang sudah kami canangkan,” pungkas dia.

Daily News Update Page 8

Bumi Resources (BUMI) pays Tranche A worth US$334.8

million Finna U. Ulfah

PT BUMI Resources Tbk. has paid a total of

US$ 334.8 million on the principal and coupons of Tranche A until Friday (8/1/2021).

Bumi Resources Director & Corporate Secretary Dileep Srivastava said that it had processed the twelfth payment worth US$ 3.2 million on Friday (8/1/2021). That amount represents the loan interest for Tranche A.

"By making the twelfth quarterly payment today, the company has currently paid a total of US$ 334.8 million in cash," Srivastava said as quoted from his official statement, Friday (8/1/2021).

Dileep explained that the amount consisted of Tranche A principal worth US$ 195.8 million. The remaining US$ 139 million represents interest including accrued interest and unpaid interest or back interest.

He said the next payment for Tranche A will be due in April 2021. The PIK Coupon from April 11, 2018 to October 16, 2020 for Tranche B and C has also started to be capitalized.

Previously, BUMI processed the payment of the eleventh Tranche A worth US$ 3.8 million on October 16, 2020, this amount represented the loan interest for Tranche A.

The amount consists of the principal of Tranche A worth US$ 195.8 million. The remaining US$ 135.8 million represents interest, including accrued interest and unpaid interest or back interest.

Bumi Resources (BUMI) Bayar Tranche A Senilai US$334,8

Juta Finna U. Ulfah

PT BUMI Resources Tbk. telah melakukan

pembayaran total US$334,8 juta atas pokok dan kupon Tranche A hingga Jumat (8/1/2021).

Director & Corporate Secretary Bumi Resources Dileep Srivastava mengatakan telah memproses pembayaran keduabelas senilai US$3,2 juta pada Jumat (8/1/2021). Jumlah itu mewakili bunga pinjaman untuk Tranche A.

“Dengan dilakukannya pembayaran triwulanan keduabelas hari ini, perseroan saat ini telah membayar keseluruhan sebesar US$334,8 juta secara tunai atau cash,” ujar Srivastava dikutip dari kete-rangan resminya, Jumat (8/1/2021).

Dileep menjelaskan bahwa jumlah itu terdiri atas pokok Tranche A senilai US$195,8 juta. Sisanya, US$139juta merupakan bunga termasuk bunga akrual dan bunga yang belum dibayar atau back interest.

Dia mengatakan pembayaran berikutnya atas Tranche A akan jatuh tempo pada April 2021. Kupon PIK dari tanggal 11 April 2018 hingga 16 Oktober 2020 atas Tranche B dan C juga sudah mulai dikapitalisasi.

Sebelumnya, BUMI memproses pembayaran kesebelas Tranche A senilai US$3,8 juta pada 16 Oktober 2020 lalu, Jumlah itu mewakili bunga pinjaman untuk Tranche A.

Jumlah itu terdiri atas pokok Tranche A senilai US$195,8 juta. Sisanya, US$135,8 juta merupakan bunga termasuk bunga akrual dan bunga yang belum dibayar atau back interest.

Daily News Update Page 9

On the stock exchange floor, at the close of trading Friday (8/1/2021) the shares of

the issuer coded BUMI parked at the level of Rp78 per share, up 6.85 percent. Editor:

Aprianto Cahyo Nugroho

Di lantai bursa, pada penutupan perda-gangan Jumat (8/1/2021) saham emiten

berkode BUMI itu parkir di level Rp78 per saham, naik 6,85 persen. Editor : Aprianto

Cahyo Nugroho

Government Affirms Freeport

Must Build New Smelter According to Target

Rio Indrawan

THE GOVERNMENT asserts that it will not

change its view of PT Freeport Indonesia's

obligation to build a copper processing and refining facility or smelter.

Ridwan Djamaluddin, Director General of Mineral and Coal at the Ministry of Energy

and Mineral Resources (ESDM), said that until now the government still will not

approve the extension of the proposed development time for Freeport Indonesia.

The government has not formally answered Freeport's request, but in

principle the government stil l asks Freeport to build a smelter.

"We haven't answered yet. Our verbal answers, do it as much as possible until it

is finished. We have not agreed to resign," said Ridwan to Dunia Energi at the

Ministry of ESDM, recently.

The ESDM Ministry has also received

information on a potential Freeport smelter construction partner. However, the

company from the United States has not provided official information.

"There are talks but no formalities," said Ridwan.

Pemerintah Tegaskan Freeport

Harus Bangun Smelter Baru Sesuai Target

Rio Indrawan

PEMERINTAH menegaskan belum akan

mengubah pandangan terhadap kewajiban PT Freeport Indonesia untuk membangun fasilitas pengolahan dan pemurnian tembaga atau smelter.

Ridwan Djamaluddin, Direktur Jenderal Mineral dan Batu Bara Kementerian Energi dan Sumber Daya Mineral (ESDM), menga-takan sampai sekarang pemerintah masih tetap tidak akan memberikan persetujuan perpanjangan waktu pembangunan yang diusulkan Freeport Indonesia.

Secara formal pemerintah memang belum menjawab permintaan Freeport, namun secara prinsip pemerintah tetap meminta Freeport membangun smelter.

“Belum kami jawab. Jawaban lisan kami, kerjakan dulu semaksimal mungkin sampai jadi. Kami belum mengiyakan untuk mundur,” kata Ridwan kepada Dunia Energi di Kementerian ESDM, belum lama ini.

Kementerian ESDM juga sudah menerima informasi potensi adanya mitra pem-bangunan smelter Freeport. Tapi laki-lagi perusahaan asal Amerika Serikat itu belum memberikan informasi resmi.

“Pembicaraan ada tapi formalitas belum ada,” tukas Ridwan.

Daily News Update Page 10

In addition, the government also asked Freeport to continue building a new smelter according to the agreement when the government granted a contract extension permit and wanted to change from a Contract of Work (KK) to a Special Mining Business License (IUPK). "Still have to build a new one," said Ridwan.

The smelter expansion is carried out by increasing PT Smelting's capacity by 30%, from one million dry metric tons (dmt) to 1.3 million dmt. This expansion is targeted to be completed in 2023, the year Freeport is supposed to complete the construction of a new copper smelter at JIIPE, Gresik, East Java. (RI)

Selain itu, pemerintah juga meminta Freeport tetap membangun smelter baru sesuai kesepakatan saat pemerintah memberikan izin perpanjang kontrak dan mau berubah dari Kontrak Karya (KK) menjadi Izin Usaha Pertambangan Khusus (IUPK). “Tetap harus bangun baru,” tegas Ridwan.

Ekspansi smelter dilakukan dengan me-nambah kapasitas PT Smelting sebanyak 30%, dari satu juta dry metric ton (dmt) menjadi 1,3 juta dmt. Ekspansi ini ditarget-kan rampung pada 2023, tahun dimana Freeport seharusnya menyelesaikan pem-bangunan smelter tembaga baru di JIIPE, Gresik, Jawa Timur. (RI)

Merdeka Copper Gold (MDKA) commodity reserves are limited, Pefindo assigns an idA rating

Reporter: Avanty Nurdiana | Editor: Avanty Nurdiana

PT MERDEKA Copper Gold Tbk (MDKA)

received an idA rating from PT Pemeringkat Efek Indonesia (Pefindo). The

rating is affirmed from the previous rating and applies to Continuous Bonds I Year

2020. Not only that, Pefindo also provides a stable prospect for Merdeka Copper Gold.

Pefindo in a January 8, 2021 release

explained, idA's rating has a strong ability compared to other Indonesian obligors to

meet its long-term financial commitments. However, the obligor's ability is affected by

adverse changes in economic conditions and conditions than obligor with a higher

rating.

Cadangan komoditas Merdeka Copper Gold (MDKA) terbatas, Pefindo tetapkan rating idA Reporter: Avanty Nurdiana | Editor:

Avanty Nurdiana

PT MERDEKA Copper Gold Tbk (MDKA) mendapat rating idA dari PT Pemeringkat Efek Indonesia (Pefindo). Peringkat ter-sebut ditegaskan dari peringkat sebelum-nya dan berlaku untuk Obligasi Berke-lanjutan I Tahun 2020. Tak hanya itu, Pefindo juga memberi prospek stabil untuk Merdeka Copper Gold.

Pefindo dalam rilis 8 Januari 2021 men-jelaskan, peringkat idA memiliki kemam-puan yang kuat dibandingkan obligor Indonesia lainnya untuk memenuhi komitmen keuangan jangka panjangnya. Walaupun demikian, kemampuan obligor terpengaruh perubahan buruk keadaan dan kondisi ekonomi dibandingkan obligor dengan peringkat lebih tinggi.

Daily News Update Page 11

The rating reflects MDKA's low cash cost, potential for higher revenue from the Acid Iron Metal (AIM) project, and high demand for gold. However, the ratings are constrained by its limited mining resources, exposure to fluctuations in commodity prices and unfavorable weather, as well as the risk of developing mining in new areas.

Pefindo analyst Christyanto Wijaya and Samgar Effember in a release on Friday (8/1) explained that the MDKA rating could be raised if it was able to increase the mine's profile by increasing gold and copper reserves as well as the progress of the better AIM project development. This must also be followed by a conservative capital structure and strong cash flow protection while maintaining good profitability margins.

However, Pefindo said, the rating could be lowered if MDKA financed capital expenditures with a large amount of debt, causing the capital structure to become heavier in debt. This is indicated by a debt to EBITDA ratio of greater than 3.0x on a sustainable basis without being accompanied by a stronger business profile.

"A significant decline in gold prices could also lead to a rating downgrade because it could have a negative impact on MDKA's financial profile," explained Christyanto and Samgar. In addition, MDKA has long-term projects located in Pani and Banyuwangi (the Tujuh Bukit Copper project).

Both projects require significant capital expenditures. "We have not considered the planned capital expenditure and potential revenue from the project in MDKA's financial projections," explained Christyanto and Samgar. MDKA has two mining operations located in Tujuh Bukit, Banyuwangi for gold mining and Wetar Island, Maluku for copper mining.

Peringkat tersebut mencerminkan biaya tunai (cas h cost) MDKA yang rendah, potensi perolehan pendapatan yang lebih tinggi dari proyek Acid Iron Metal (AIM), serta per-mintaan emas yang tinggi. Namun, peringkat tersebut dibatasi oleh sumber daya tambang yang terbatas, eksposur terhadap fluktuasi harga komoditas dan cuaca yang tidak menguntungkan, serta risiko pengembangan tambang di daerah baru.

Christyanto Wijaya dan Samgar Effember analis Pefindo dalam rilis pada Jumat (8/1) menjelaskan, peringkat MDKA dapat dinaikkan jika mampu meningkatkan profil tambang dengan memperbesar cadangan emas dan tembaga serta progres perkembangan proyek AIM yang lebih baik. Hal tersebut juga harus diikuti oleh struktur permodalan yang konservatif dan perlindungan arus kas yang kuat dengan tetap mempertahankan margin profitabilitas yang baik.

Tapi Pefindo menyebut, peringkat dapat diturunkan jika MDKA membiayai belanja modal dengan utang dalam jumlah yang besar sehingga menyebabkan struktur permodalan menjadi lebih berat utang. Ini yang ditandai oleh rasio utang terhadap EBITDA lebih besar dari 3,0x secara berkelanjutan tanpa disertai oleh profil bisnis yang lebih kuat.

"Penurunan signifikan pada harga emas juga dapat menyebabkan penurunan peringkat karena dapat memberikan dampak negatif kepada profil keuangan MDKA," jelas Christyanto dan Samgar. Sebagai tambahan, MDKA mempunyai proyek jangka panjang yang terletak di Pani dan Banyuwangi (proyek Tembaga Tujuh Bukit).

Kedua proyek tersebut membutuhkan belanja modal dalam jumlah signifikan. "Kami belum mempertimbangkan rencana belanja modal dan potensi pendapatan dari proyek tersebut dalam proyeksi keuangan MDKA," terang Christyanto dan Samgar. MDKA mempunyai dua operasional tambang yang terletak di Tujuh Bukit, Banyuwangi untuk pertambangan emas dan Pulau Wetar, Maluku untuk pertam-bangan tembaga.

Daily News Update Page 12

As of September 30, 2020, the Company's shareholders were PT Saratoga Investama Sedaya (19.13%), PT Mitra Daya Mustika (13.47%), Garibaldi Thohir (8.20%), PT Suwarna Arta Mandiri (6.33%), Local Govern-ment of Banyuwangi Regency (5.23%), and others including the public (47.64%).

Per 30 September 2020, pemegang saham Perusahaan adalah PT Saratoga Investama Sedaya (19,13%), PT Mitra Daya Mustika (13,47%), Garibaldi Thohir (8,20%), PT Suwarna Arta Mandiri (6,33%), Pemda Kabupaten Banyuwangi (5,23%), dan lainnya termasuk publik (47,64%).

Government Promises Many

Incentives for Coal Downstreaming Projects

Denis Riantiza Meilanova

THE MINISTRY of Energy and Mineral

Resources (ESDM) has prepared a myriad of incentives to encourage the coal down-stream program, which is the govern-ment's main target.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that he would provide various incentives for the coal downstream project so that the down-stream sector could be economical and competitive, so that it would grow.

"We provide many incentives so that downstream [coal] can be economical and competitive," said Arifin, quoted from a press release, Sunday (10/1/2021).

One of the downstream projects currently underway is gasification of low-calorie coal into dimethyl ether (DME) which will be used to substitute liquefied petroleum gas (LPG).

If this gasification project develops, said Arifin, it is hoped that it will significantly reduce the LPG import figure because DME products can be used as a substitute for LPG. Moreover, LPG imports from year to year continue to increase in line with the increasing demand for LPG in the country.

Pemerintah Janjikan Banyak

Insentif Proyek Penghiliran Batu Bara

Denis Riantiza Meilanova

KEMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) menyiapkan segudang insentif untuk mendorong program hiliri-sasi batu bara yang menjadi sasaran utama pemerintah.

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif menuturkan bakal memberikan berbagai insentif untuk proyek hilirisasi batu bara agar sektor hilir ini bisa ekonomis dan kompetitif, sehingga semakin berkembang.

"Banyak insentif yang kami berikan supaya hilir [batu bara] ini bisa ekonomis dan kompetitif," ujar Arifin, dikutip dari siaran pers, Minggu (10/1/2021).

Salah satu proyek hilirisasi yang tengah dilakukan adalah gasifikasi batu bara kalori rendah menjadi dimethyl ether (DME) yang nantinya digunakan untuk substitusi liquefied petroleum gas (LPG).

Apabila proyek gasifikasi ini berkembang, kata Arifin, diharapkan akan signifikan menekan angka impor LPG karena produk DME bisa menjadi substitusi LPG. Apalagi impor LPG dari tahun ke tahun terus me-ningkat seiring dengan semakin bertam-bahnya permintaan LPG di Tanah Air.

Daily News Update Page 13

"Because the downstream utilization of coal can be used as a substitute for LPG. If it is possible to substitute for LPG, then this can secure a large amount of foreign exchange. The use of LPG every year continues to increase and we have coal to produce DME," he said.

PTBA stated that it is ready to realize the coal gasification project into dimethyl ether (DME), after signing a commitment to work with Air Products and PT Pertamina on Thursday (10/12/2020) night.

"PTBA as a pioneer of coal gasification is ready to carry out the mandate of Presidential Decree No. 109/2020 for the development of downstream coal into DME to reduce LPG imports," said Bukit Asam Corporate Secretary Apollonius Andwie C. to Bisnis, Sunday (13/12/2020).

Apollonius explained that so far there has been no change in targets, and construction is expected to start in Semester I/2020. The project will be located in Tanjung Enim, South Sumatra with an operating target in the second quarter of 2024.

Meanwhile, professionals in the mining sector have of ficially formed the Indonesian Metallurgical Professional Association (APMI) to support the spirit of mineral and coal downstreaming.

History records the progress of human civilization marked by the use of metals as a material to support life. In addition, the progress of a country is marked by the progress of metal-based industries.

The industry can grow and develop, one of which is determined by professional human resources in the metallurgical field. It was on this basis that the Indonesian Metallurgical Professional Association (APMI) was formed.

"Karena pemanfaatan hilirisasi batu bara itu bisa menjadi substitusi LPG. Kalau bisa substitusi LPG, maka ini bisa amankan devisa cukup besar. Pemakaian LPG tiap tahun terus meningkat dan kita punya batubara untuk memproduksi DME," katanya.

PTBA menyatakan siap merealisasikan proyek gasifikasi batu bara menjadi dimetil eter (DME), setelah menandatangani komitmen kerja sama dengan Air Product dan PT Pertamina pada Kamis (10/12/ 2020) malam.

“PTBA sebagai pioneer gasifikasi batu bara siap menjalankan amanat Perpres Nomor 109 Tahun 2020 untuk pengembangan hilirisasi batu bara menjadi DME untuk menekan impor LPG,” ujar Sekretaris Perusahaan Bukit Asam Apollonius Andwie C. kepada Bisnis, Minggu (13/12/2020).

Apollonius menjelaskan bahwa sejauh ini tidak ada perubahan target, dan konstruksi diperkirakan mulai pada Semester I/2020. Proyek itu nantinya akan berlokasi di Tanjung Enim, Sumatera Selatan dengan target operasi pada kuartal II/2024.

Sementara itu, para profesional di sektor pertambangan resmi membentuk Asosiasi Profesi Metalurgi Indonesia (APMI) guna mendukung semangat hilirisasi mineral dan batu bara.

Sejarah mencatat kemajuan peradaban manusia ditandai dengan pemanfaatan logam sebagai material pendukung kehidupan. Selain itu, kemajuan suatu negara ditandai dengan kemajuan industri berbasis logam.

Industri tersebut bisa tumbuh dan ber-kembang salah satunya ditentukan oleh SDM yang profesional dalam bidang metalurgi. Atas dasar pemikiran itulah Asosiasi Profesi Metalurgi Indonesia (APMI) dibentuk.

Daily News Update Page 14

"APMI is expected to become a unifying forum for professionals in the metallurgical sector so that it can increase the nation's competitiveness in the form of contributions of metallurgical expertise to the develop-ment of metal-based industries," said Chairman of the APMI Formation Team Helminton Sitanggang at the APMI Declaration, Tuesday (22/12/2020). Editor: Fatkhul Maskur

"APMI diharapkan bisa menjadi wadah pemersatu para profesional di sektor metalurgi sehingga mampu meningkatkan daya saing bangsa dalam bentuk sumbangsih keahlian metalurgi kepada pembangunan industri berbasis logam," ujar Ketua Tim Formatur APMI Helminton Sitanggang dalam acara Deklarasi APMI, Selasa (22/12/2020). Editor : Fatkhul Maskur

United Tractors (UNTR) aims to sell 340,000 oz of gold in 2021,

around 20% is hedged Reporter: Akhmad Suryahadi | Editor:

Herlina Kartika Dewi

PT UNITED Tractors Tbk (UNTR) is

targeting to sell 340,000 ounces of gold this year.

Even though the realization of last year's gold sales has not been fully completed, United Tractors Corporate Secretary Sara K. Loebis estimates that sales in the gold mining segment will reach 318,000 ounces-320,000 ounces.

UNTR will conduct hedging renewal (hedging) of 20% of sales volume this year. This is because the fluctuation (movement) of gold prices is considered difficult to predict.

"Regarding the fluctuation of gold prices, it is difficult to predict. That is why hedging is being prepared,” said Sara to Kontan.co.id, Sunday (10/1).

In their research, Mirae Asset Sekuritas Indonesia analysts Hariyanto Wijaya and Emma A. Fauni made UNTR's stock one of its top eight picks this month.

United Tractors (UNTR) bidik penjualan emas 340.000 oz di 2021, sekitar 20% dihedging Reporter: Akhmad Suryahadi | Editor:

Herlina Kartika Dewi

PT UNITED Tractors Tbk (UNTR) me-

nargetkan menjual 340.000 ounces emas tahun ini. Meski realisasi penjualan emas tahun lalu belum sepenuhnya rampung, Sekretaris Perusahaan United Tractors Sara K. Loebis mengestimasi angka penjualan di segmen tambang emas mencapai 318.000 ounces-320.000 ounces.

UNTR akan melakukan pembaruan lindung nilai (hedging) terhadap 20% dari volume penjualan tahun ini. Hal tersebut karena fluktuasi (pergerakan) harga emas yang dinilai sulit diperkirakan.

“Mengenai fluktuasi harga emas, sulit diperkirakan. Itu sebabnya disiapkan hedging,” ujar Sara kepada Kontan.co.id, Minggu (10/1).

Dalam risetnya, Analis Mirae Asset Sekuritas Indonesia Hariyanto Wijaya dan Emma A. Fauni menjadikan saham UNTR sebagai satu dari delapan top picks-nya bulan ini.

Daily News Update Page 15

UNTR shares are attractive because current market players have not fully considered the positive impact of the realization of a higher gold price on UNTR's revenue this year.

Mirae Asset said, UNTR should enjoy a much higher realization of the gold price in 2021. This is because hedging the gold price at around 70% of UNTR's sales volume will end soon in February 2021.

This means, from March 2021 onwards, the subsidiary of PT Astra International Tbk (ASII) will only hedge the price of gold at around 20% of its gold sales volume.

As an illustration, UNTR recorded a sales volume of gold through the Martabe Gold Mine of 21,000 ounces in November 2020. This figure decreased slightly by 4.54% from sales in October 2020 of 22,000 ounces.

Meanwhile, if accumulated, UNTR's 11-month gold sales amounted to 299,000 Gold Equivalent Ounces (GEOs), or decreased by 22.7% from sales figures in the same period the previous year, namely 386,900 GEOs.

This year, the UNTR disbursed a capital expenditure (capex) of around US$ 290 million for this year. Next year's capex allocation will all come from the company's internal cash.

In detail, around 50% of the capex will be used for the mining contractor segment, namely for replacing obsolete heavy equipment.

About 40 percent of the gold mining segment, amounting to US$ 120 million, will be used for processing plant develop-ment and operation improvements. The rest is a regular capex for maintenance.

Saham UNTR atraktif karena pelaku pasar saat ini dinilai belum sepenuhnya memper-hitungkan dampak positif dari realisasi harga emas yang lebih tinggi pada pendapatan UNTR tahun ini.

Mirae Asset mengatakan, UNTR seharusnya akan menikmati realisasi harga emas yang jauh lebih tinggi pada tahun 2021. Sebab, lindung nilai (hedging) atas harga emas pada sekitar 70% dari volume penjualan UNTR, akan segera berakhir pada Februari 2021.

Ini berarti, mulai Maret 2021 dan seterusnya, anak usaha PT Astra International Tbk (ASII) tersebut hanya akan melakukan lindung nilai terhadap harga emas pada sekitar 20% dari volume penjualan emasnya.

Sebagai gambaran, UNTR mencatatkan volume penjualan emas lewat Tambang emas Martabe sebesar 21.000 ounces pada November 2020. Angka ini menurun tipis 4,54% dari angka penjualan di Oktober 2020 yang sebesar 22.000 ounces.

Sementara jika diakumulasikan, penjualan emas UNTR sepanjang 11 bulan sebesar 299.000 Gold Equivalent Ounces (GEOs), atau menurun 22,7% dari angka penjualan di periode yang sama tahun sebelumnya yakni 386.900 GEOs.

Tahun ini, UNTR tersebut menggelontorkan belanja modal atau capital expenditure (capex) sekitar US$ 290 juta untuk tahun ini. Alokasi capex tahun depan seluruhnya berasal dari dana internal kas perusahaan.

Secara rinci, sekitar 50% dari belanja modal akan digunakan untuk segmen kontraktor pertambangan, yakni untuk pergantian alat berat yang sudah usang.

Sekitar 40% untuk segmen pertambangan emas, yakni sebesar US$ 120 juta, yang akan digunakan untuk pengembangan processing plant dan operation improvement. Sisanya merupakan regular capex untuk peme-liharaan.

Daily News Update Page 16

Had Dropped, Coal Prices 'Raged' Again Back to US$85

Tirta Citradi, CNBC Indonesia

ENTERING the beginning of the new year

2021, the price of the Newcastle thermal coal futures contract has fallen sharply. However, it didn't take long for the price of the jet stone to rise again.

In the period 28 December 2020 - 6 January 2021, the price of contracts that were actively traded on the futures exchange fell 11.5%. However, in the last two trading days last week the coal price shot up 11.9%.

It is as if the revenge of the coal price has returned to the range of its highest level in the last one and a half years. In the last week, coal prices were recorded to have strengthened by 4.05%.

For information, the coal contract used as a reference here is a futures contract that refers to coal at the Port of Newcastle Australia. This contract expires on February 26, 2021.

The increase in coal prices is inseparable from the tight domestic supply of China coupled with the increase in demand for electricity. Finally, China's domestic coal prices shot up sharply.

The Qinhuangdao reference thermal coal price of 5,500 Kcal/kg in China surpassed RMB 788/ton last week and has already exceeded the target range set by the Chinese Government at RMB 500 - 570 per ton.

Lack of domestic coal supply makes electricity production insufficient for his needs. As a result,...

Sempat Ambles, Harga Batubara 'Ngamuk' Lagi Balik ke US$85

Tirta Citradi, CNBC Indonesia

MEMASUKI awal tahun baru 2021, harga

kontrak futures (berjangka) batu bara termal Newcastle merosot tajam. Namun tak butuh waktu lama harga si batu legam kembali mengalami kenaikan.

Pada periode 28 Desember 2020 - 6 Januari 2021, harga kontrak yang aktif di-transaksikan di bursa berjangka tersebut turun 11,5%. Namun dalam dua hari terakhir perdagangan pekan lalu harga batu bara melesat 11,9%.

Seolah balas dendam harga batu bara kembali ke rentang level tertingginya dalam satu setengah tahun terakhir. Dalam sepekan terakhir harga batu bara masih tercatat menguat 4,05%.

Sebagai informasi, kontrak batu bara yang digunakan sebagai acuan di sini merupakan kontrak berjangka yang mengacu pada batu bara di Pelabuhan Newcastle Australia. Kontrak ini berakhir pada 26 Februari 2021.

Kenaikan harga batu bara tak terlepas dari ketatnya pasokan domestik China yang dibarengi dengan kenaikan permintaan listrik. Akhirnya harga batu bara domestik China melesat tajam.

Harga batu bara termal acuan Qinhuangdao 5.500 Kcal/kg di China tembus RMB 788/ton pekan lalu dan sudah melampaui rentang target yang ditetapkan oleh Pemerintah China di RMB 500 - 570 per ton.

Kurangnya pasokan batu bara domestik membuat produksi listrik tidak mencukupi kebutuhannya. Alhasil,...

Daily News Update Page 17

As a result, the Chinese government has had to limit the use of electricity outside of

peak hours for factories since mid-December by carrying out blackouts.

A week-long blackout in various regions

has been imposed in Shenzhen, China's technology capital, which has the highest

per capita gross domestic product in the country. East Jiangsu Province has also

imposed electricity restrictions.

As a result this affects industry and households. Many residents felt cold

because of the blackout and many businessmen failed to meet the target

because the factory was shut down during production hours.

Even though China has asked local coal producers to increase their production and

relax their coal import policy, the price of the jet rock in Panda Country still doesn't

want to go down.

The increase in Chinese demand, coupled with cuts in coal production in producing

countries, has caused coal prices to skyrocket amid the fractured bilateral

relations between Australia and China.

Even though it was hit by a pandemic storm, coal production in 2020 turned out

to be above the target set by the govern-ment of 550 million tons, namely reaching

557.54 million tons.

Seeing the realization of coal production by

the end of 2020 and the current high coal price, it is possible that coal production in

2021 could also exceed the target set by the government of 550 million tons. CNBC

INDONESIA RESEARCH TEAM (twg/twg)

Alhasil pemerintah China harus membatasi penggunaan listrik di luar jam sibuk untuk pabrik sejak pertengahan Desember dengan melakukan pemadaman.

Pemadaman listrik selama seminggu di berbagai daerah telah diberlakukan di Shenzhen, ibu kota teknologi China, yang memiliki produk domestik bruto per kapita tertinggi di negara itu. Provinsi Jiangsu Timur juga memberlakukan pembatasan listrik.

Alhasil ini mempengaruhi industri dan rumah tangga. Banyak warga yang merasakan kedinginan karena listrik padam dan banyak pengusaha gagal memenuhi target karena pabrik mati saat jam produksi.

Kendati China sudah meminta produsen batu bara lokal untuk meningkatkan produksinya serta melakukan relaksasi kebijakan impor batu baranya harga si batu legam di Negeri Panda masih belum mau turun.

Kenaikan permintaan China yang dibarengi dengan pemangkasan produksi batu bara di negara produsen membuat harga batu bara melesat tajam di tengah retaknya hubungan bilateral antara Australia dengan China.

Meski dihantam badai pandemi, produksi batu bara tahun 2020 ternyata bisa di atas target yang dipatok pemerintah sebesar 550 juta ton, yakni mencapai 557,54 juta ton.

Melihat realisasi produksi batu bara hingga akhir 2020 dan harga batu bara yang tinggi saat ini, tak menutup kemungkinan produksi batu bara pada 2021 ini juga bisa melampaui target yang ditetapkan peme-rintah sebesar 550 juta ton. TIM RISET CNBC INDONESIA (twg/twg)

Daily News Update Page 18

Government Opportunities to Increase Coal Export Quota

Rio Indrawan

THE GOVERNMENT admits that it will not be rigid and open to evaluating coal export policies in line with the increase in coal prices in early 2021.

Arifin Tasrif, Minister of Energy and Mineral Resources (ESDM), said that if the coal price trend continues to rise, there is a possibility that production and export quotas will be added.

"If the price trend is good, we will evaluate again for the export policy," said Arifin at the Ministry of ESDM, Thursday (7/1).

For this year, the government has set a coal production target of 550 million tons or the same as last year's target. It's just that last year the realization of production was slightly above the target of 558 million tons. For the Domestic Market Obligation (DMO) target, this year's domestic absorption is targeted at 137.5 million tons. Meanwhile last year the realization of coal DMO reached 132 million tons.

The government, said Arifin, will still prioritize domestic coal needs.

"Then if you look at the proposition, the DMO is still smaller than the target. Electricity is also in the energy sector, the industrial sector also has weaknesses. So, we prioritize domestic needs to be met first," said Arifin.

The reference coal price (HBA) in January 2021 jumped US$ 16.19 per ton to US$ 75.84 per ton or rose 27.14% compared to the HBA in December 2020 of US$ 59.65 per ton. The main factor in the significant increase in coal is the resumption of industrial activity in China.

Pemerintah Berpeluang Tambah Kuota Ekspor Batu Bara

Rio Indrawan

PEMERINTAH mengaku tidak akan kaku dan terbuka untuk mengevaluasi kebijakan ekspor batu bara seiring kenaikan harga batu bara pada awal 2021 ini.

Arifin Tasrif, Menteri Energi dan Sumber Daya Mineral (ESDM), mengatakan jika tren harga batu bara terus naik maka tidak tertutup kemungkinan kuota produksi dan ekspor akan ditambah.

“Kalau tren harga bagus, ya kami evaluasi lagi untuk kebijakan ekspor,” kata Arifin di Kementerian ESDM, Kamis (7/1).

Untuk tahun ini pemerintah mematok target produksi batu bara sebesar 550 juta ton atau sama seperti target tahun lalu. Hanya saja tahun lalu realisasi produksi tipis diatas target yakni 558 juta ton. Untuk target Domestic Market Obligation (DMO) atau serapan dalam negeri tahun ini ditargetkan sebesar 137,5 juta ton. Sementara tahun lalu realisasi DMO batu bara mencapai 132 juta ton.

Pemerintah kata Arifin tetap akan mem-prioritaskan kebutuhan batu bara dalam negeri.

“Kemudian kalau liat dari proposisinya DMO masih lebih kecil dari target. Listrik juga kan di sektor energi, sektor industri juga ada kelemahan. Nah, kami prioritaskan kebutuhan dalam negeri harus dipenuhi dulu,” ungkap Arifin.

Harga batu bara acuan (HBA) Januari 2021 melonjak US$16,19 per ton menjadi US$75,84 per ton atau naik 27,14% dibanding HBA pada Desember 2020 sebesar US$59,65 per ton. Faktor utama kenaikan batu bara secara siginifkan lantaran kembali beraktifitasnya industri di China.

Daily News Update Page 19

Agung Pribadi, the Head of the Communi-cation Bureau for Public Information Services and Cooperation at the Ministry of Energy and Mineral Resources (ESDM), said that the Bamboo Curtain country has an important role in influencing coal prices because it is the main market for Indonesian coal after India. "Moreover, currently there is a tension in trade relations between China and Australia. This sentiment is what strengthens," said Agung.

Derivative factors of supply are influenced by season (weather), mining engineering, supplier country policies, to technicalities in the supply chain such as trains, barges, and loading terminals.

The derivative factor of demand is influenced by the demand for electricity which decreases in correlation with industrial conditions, import policies, and competition with other energy commodities, such as LNG, nuclear and hydro. (RI)

Agung Pribadi, Kepala Biro Komunikasi Layanan Informasi Publik dan Kerja sama Kementerian Energi dan Sumber Daya Mineral (ESDM), mengungkapkan negeri Tirai Bambu memiliki peran penting dalam memengaruhi harga batu bara karena menjadi pasar utama batu bara Indonesia setelah India. “Apalagi saat ini terjadi ketegangan hubungan perdagangan antara Tiongkok dengan Australia. Sentimen ini yang makin memperkuat,” ungkap Agung.

Faktor turunan supply dipengaruhi season (cuaca), teknis tambang, kebijakan negara supplier, hingga teknis di supply chain seperti kereta, tongkang, maupun loading terminal.

Untuk faktor turunan demand dipengaruhi kebutuhan listrik yang turun berkorelasi dengan kondisi industri, kebijakan impor, dan kompetisi dengan komoditas energi lain, seperti LNG, nuklir, dan hidro. (RI)

Nickel prices are still racing,

says Vale Indonesia (INCO) Reporter: Akhmad Suryahadi | Editor:

Wahyu T. Rahmawati

THE BEGINNING of 2021 is a good start

for nickel. Launching Bloomberg, as of Thursday (7/1), the nickel price on the London Metal Exchange (LME) for a three-month delivery contract is at the level of US$ 18,109 per ton. This is the highest price for nickel since October 2014.

Finance Director of PT Vale Indonesia Tbk (INCO), Bernardus Irmanto, assessed that the increase in nickel prices that occurred in recent days was unexpected. Bernardus continued,...

Harga nikel masih ngebut, ini

kata Vale Indonesia (INCO) Reporter: Akhmad Suryahadi | Editor:

Wahyu T. Rahmawati

AWAL tahun 2021 menjadi awal yang baik

bagi komoditas nikel. Melansir Bloomberg, per Kamis (7/1), harga nikel di bursa London Metal Exchange (LME) untuk kontrak pengiriman tiga bulanan berada di level US$ 18.109 per ton. Ini merupakan harga tertinggi nikel sejak Oktober 2014.

Direktur Keuangan PT Vale Indonesia Tbk (INCO) Bernardus Irmanto menilai, kenaikan harga nikel yang terjadi beberapa hari ini memang di luar dugaan. Bernardus melanjutkan,...

Daily News Update Page 20

Bernardus continued, if you look at the nickel inventory at LME, it actually doesn't move much.

"In my opinion, it is still temporary due to the encouragement of positive market sentiment caused by some news that is positively perceived by the market," said Bernardus to Kontan.co.id, Saturday (9/1).

The number of catalysts referred to is the large number of reports on electric vehicles (EV), the appreciation of the dollar exchange rate, and also concerns about the stability of nickel supply due to increased fault activity in Morowali.

As an illustration, Vale Indonesia's nickel production in the first nine months of 2020 reached 55,792 tons, or 10% higher than production in the same period the previous year which was only 50,531 tons.

Meanwhile, INCO's nickel production volume this year will be lower than 70,000 tons due to furnace 4 rebuilding activities for five months. "The numbers will be announced later," said Bernardus.

Previously, NH Korindo Sekuritas Indonesia analyst Maryoki Pajri Alhusnah assessed that global nickel price movements were more driven by the economic recovery factor in China. China also plans to increase nickel consumption for electric vehicles and stainless steel. In addition, the limitation on nickel ore exports, which is still being enforced by the Indonesian government, is also a positive catalyst for nickel prices.

Furthermore, the 18,000 ton drop in nickel inventories on the Shanghai Futures Exchange also boosted nickel prices. Even if it is seen from the supply at LME, nickel inventory is stil l quite high, namely 240,000 tons.

Bernardus melanjutkan, jika melihat inventory (persediaan) nikel di LME pun sebenarnya tidak banyak bergerak.

“Menurut saya, sifatnya masih temporary karena dorongan sentimen positif pasar yang disebabkan beberapa berita yang dipersepsikan secara positif oleh pasar,” ujar Bernardus kepada Kontan.co.id, Sabtu (9/1).

Adapun sejumlah katalis yang dimaksud seperti banyaknya pemberitaan mengenai kendaraan listrik atau electric vehicles (EV), apresiasi nilai tukar dolar, dan juga kekhawatiran mengenai stabilitas suplai nikel karena meningkatnya aktivitas patahan di Morowali.

Sebagai gambaran, produksi nikel Vale Indonesia pada sembilan bulan pertama 2020 mencapai 55.792 ton, atau 10% lebih tinggi dibandingkan dengan produksi pada periode yang sama tahun sebelumnya yang hanya 50.531 ton. Adapun volume produksi nikel INCO tahun ini akan lebih rendah dari 70.000 ton karena adanya kegiatan pembangunan kembali furnace 4 selama lima bulan. “Angkanya akan diumumkan kemudian,” ujar Bernardus.

Sebelumnya, Analis NH Korindo Sekuritas Indonesia Maryoki Pajri Alhusnah menilai, pergerakan harga nikel global lebih terdorong oleh faktor perbaikan ekonomi China. China juga berencana untuk meningkatkan konsumsi ni kel untuk kendaraan listrik dan stainless steel. Selain itu, pembatasan ekspor bijih nikel yang masih diberlakukan Pemerintah Indonesia juga menjadi katalis positif untuk harga nikel.

Lebih lanjut, turunnya persediaan nikel di Shanghai Futures Exchange sebesar 18.000 ton juga mendorong kenaikan harga nikel. Meskipun jika dilihat dari persediaan di LME, persediaan nikel masih cukup tinggi yakni 240.000 ton.

Daily News Update Page 21

Maryoki assessed that the increase in nickel prices was also driven by expectations that

demand for electric vehicles will increase. This is demonstrated by stimulus programs

in many countries, including support for electric vehicles to offset the economic

impact of the pandemic.

China, for example, is extending its subsidy

policy until 2022 and several European

Union (EU) countries have increased

subsidies for electric vehicles, as well as

tighter emission targets. "For the develop-

ment of electric cars in Indonesia, currently

it still affects the domestic market, not to

mention global nickel prices. Because this

development project is still limited to a

Memorandum of Understanding (MoU) and

plans, there is no certainty when it will be

implemented,” explained Maryoki when

contacted by Kontan.co.id, Friday (8/1).

However, if the development of this electric

car project occurs in the near future, it will

certainly be a positive catalyst for nickel.

NH Korindo Sekuritas Indonesia hopes that

nickel prices will be in the range of US$

16,000-US$ 17,000 per ton this year.

Maryoki menilai, kenaikan harga nikel juga didorong oleh ekspektasi permintaan

kendaraan listrik yang akan naik. Hal ini ditunjukkan dengan program stimulus di

banyak negara, termasuk dukungan kendaraan listrik untuk mengimbangi

dampak ekonomi dari pandemi.

China misalnya, memperpanjang kebijakan

subsidi hingga 2022 dan beberapa negara Uni Eropa (UE) telah meningkatkan subsidi

untuk kendaraan listrik, serta target emisi yang lebih ketat. “Untuk pengembangan

mobil listrik di Indonesia, untuk saat ini masih mempengaruhi market domestik

saja, belum ke harga nikel global. Karena proyek pengembangan ini juga masih

sebatas Memorandum of Understanding (MoU) dan rencana, belum ada kepastian

kapan akan dilaksanakan,” terang Maryoki saat dihubungi Kontan.co.id, Jumat (8/1).

Namun, jika pengembangan proyek mobil listrik ini terjadi dalam waktu dekat,

tentunya akan menjadi katalis positif untuk komoditas nikel. NH Korindo

Sekuritas Indonesia berekspektasi bahwa harga nikel akan berada pada rentang US$

16.000-US$ 17.000 per ton tahun ini.

Global gold production in Q2 2020 was lowest in seven years By Vladimir Basov

BATTERED by the pandemic, global gold production fell by 12% in Q2 2020, to the lowest

level since 2013. Carlin operation in the United States was the world’s largest gold mine by production.

The world’s gold mining industry faced unprecedented challenges this year caused by Covid-19 related suspensions that were major factors behind a noticeable production drop recorded in several regions. North America, South America and Africa felt the greatest impact.

Daily News Update Page 22

Kitco previously reported that Canada produced 1,160 koz of gold in Q2 2020. This was significantly less (-22%) than 1,482 koz mined in Q2 2019. Gold production in Quebec in Q2 2020 declined by a record 32% over Q2 2019 and output of yellow metal in Ontario decreased by 17%.

Now it is a good time to look at the holistic picture of the state of the gold mining industry in Q2 2020 and review the performance of the most remarkable mines worldwide.

Based on quarterly reported corporate data, it is estimated that the world’s gold mining sector produced 13.76 Moz of gold in Q2 2020, which is 12% less than a year before (15.71 Moz in Q2 2019).

Quarterly global gold output, koz.

Therefore, Q2 2020 was the worst quarter for the world’s gold mining industry in seven years.

Barrick’s Carlin complex in Nevada was the largest gold mining operation in the world during Q2 2020, with gold output amounted to 382 koz. 105% growth in production over Q2 2019 was mainly due to the formation of a joint venture between Barrick and Newmont in Nevada on July 1, 2019.

With 308 koz of gold mined in Q2 2020, Polyus’ gigantic Olimpiada operation was the largest gold producing center in Russia and second largest gold mine worldwide. Total gold output (refined and concentrate) declined by 12% compared to Q2 2019 (351 koz).

With 237 koz of gold mined in June Quarter 2020, Newcrest’s Cadia East mine was the largest gold producing center in Australia and third biggest operation in the world.

Another Barrick’s Cortez operation sits fourth with 215 koz of gold produced in Q2 2020.

Daily News Update Page 23

Another Newcrest’s Lihir mine in Papua New Guinea is fifth with 207 koz produced in Q2 2020.

Seven out of the top ten largest gold mines have faced a decline in production.

On the bright side, many gold miners have posted record gold output growth in Q3 2020 as they were eager to make up for production lost during suspensions.

The complete list is below.

The world’s top 10 largest gold mines in Q2 2020.

Baru Gold receives approval for PT Tambang Mas Sangihe work plan Published by Jessica Casey, Editorial Assistant

BARU Gold Corp. has announced that the work plan and budget, Rencana Kerja & Angaran

Belanja (RKAB), for PT Tambang Mas Sangihe (TMS) for 2021 has been formally approved by the Ministry of Energy and Mineral Resources.

The RKAB includes planning and proposed expenditures for construction, mining, production, community programmes, environmental rehabilitation, and geological and geotechnical investigations for 2021.

The RKAB is a formal annual requirement for all mining concessions in Indonesia, whether in the exploration or production phase, and the approval is a prerequisite to any activities being carried out in that particular year.

Daily News Update Page 24

Baru Gold CEO, Terry Filbert, commented: “The company wishes to thank the Ministry of Energy and Mineral Resources for their very prompt approval of the 2021 RKAB. While the company awaits the upgrade of our licence to production status, this approval demonstrates strong support and commitment to the development of the project by the Indonesian government.”

The company has also announced that it has granted an aggregate amount of 3 125 000 stock options to officers, directors, employees and consultants of the company in accordance with the provisions of the company's stock option plan. The grant of the options is subject to the approval of the TSX Venture Exchange. Each option entitles the holder to purchase one common share of the company at an exercise price of CAN$0.155 for a 5-year period.

China's tin output down 6.4% in 2020 on Myanmar disruption - Antaike

CHINA's refined tin output fell 6.4% in 2020, research house Antaike said on Friday, in a year

in which shipments of raw material tin concentrate from key supplier Myanmar were disrupted by efforts to stop the spread of the coronavirus.

The Myanmar-China border crossing was closed again on Tuesday as the first cases of a new, more transmissble variant of the virus started to emerge, leaving only bonded concentrate inventories available, Antaike said.

December refined tin production in the research house's survey of 20 Chinese smelters was up 14% from the previous month at 16,640 tonnes after completion of maintenance at China Tin Group.

Because of a lack of raw material supply, smelters in China, the world's biggest producer of refined tin, have no plans to raise output this month, so January production will remain stable or decrease, Antaike said.

London tin prices touched $21,360 a tonne on Tuesday, the highest level since April 2019, and are currently at $21,130. (Reporting by Tom Daly Editing by David Goodman )

India's coal import drops 17 per cent in April-November: mjunction PTI New Delhi

THE COUNTRY had imported 248 million tonne of coal in 2019-20

India's coal import declined by 17 per cent to 137.16 million tonne (MT) in the April-November period of the current fiscal.

Daily News Update Page 25

The country had imported 165.35 MT of coal in the year-ago period, according to provisional compilation by mjunction, based on monitoring of vessels’ positions and data received from shipping companies.

mjunction, a joint venture between Tata Steel and SAIL, is a B2B e-commerce company that also publishes research reports on coal and steel verticals.

The country's coal import in November also dropped to 20.35 MT from 21.72 MT in the corresponding month of previous fiscal, it said.

"India’s coal and coke imports during November 2020 through the major and non-major ports are estimated to have decreased by 6.3 per cent over November 2019," it said.

Of the total imports during November, non-coking coal was at 13.77 MT, against 15.32 MT imported in the same month last year. Coking coal imports were at 4.28 MT, up from 4.09 MT in November last fiscal.

During April-November period, non-coking coal import was at 91.44 MT as compared to 114.05 MT during the same period of the previous fiscal. Coking coal imports were recorded at 28.18 MT, lower than 32.72 MT imported during the same period a year ago.

"Coal demand from utilities witnessed a modest easing following the festive season, leading to an increase in coal stockpile in the system in December. This coupled with the recent surge in seaborne thermal coal prices in the international markets is expected to restrict the volumes, going forward," Vinaya Varma, MD and CEO, mjunction services said while commenting on the coal import trend.

Coal India, which accounts for over 80 per cent of domestic coal output, is aiming at substituting imported dry fuel of 80-85 million tonne with more domestic supplies in the current fiscal.

The miner has asked power plants in the coastal areas to submit proposals for a gradual increase of its supplies to these units to reduce foreign exchange outgo.

The country had imported 248 million tonne of coal in 2019-20, resulting in an outflow of around Rs 1 lakh crore of foreign exchange.

Scientists use microwave oven to turn coal into graphite Valentina Ruiz Leotaud

AN INTERNATIONAL team of researchers demonstrated that pulverized coal powder can be

converted into high-value nano-graphite in just 15 minutes.

In a study published in the journal Nano-Structures & Nano-Objects, the scientists explain how they created an environment in a microwave oven to successfully convert raw coal powder into nano-graphite, which is used as a lubricant and in items ranging from fire extinguishers to lithium-ion batteries.

Daily News Update Page 26

This “one-step method with metal-assisted microwave treatment” is a new approach that, in their view, could represent a simple and relatively inexpensive coal-conversion technology to make good use of Wyoming’s Powder River Basin coal.

According to the team led by TeYu Chien from the University of Wyoming, while previous research has shown that microwaves can be used to reduce the moisture content of coal and remove sulphur and other minerals, most such methods require a specific chemical pretreatment of the coal. In their experiment, however, the only treatment performed was to grind raw Powder River Basin coal into powder.

That powder was then placed on copper foil and sealed in glass containers with a gas mixture of argon and hydrogen, before being placed in a microwave oven.

“By cutting the copper foil into a fork shape, sparks were induced by the microwave radiation, generating an extremely high temperature of more than 1,800 degrees Fahrenheit within a few seconds,” Chris Masi, lead author of the paper, said in a media statement.

The high temperatures, then, transformed the coal powder into polycrystalline graphite, with the copper foil and hydrogen gas also contributing to the process.

The group – which also includes researchers from New York, Nepal and China – believes that this new method of coal conversion could be refined and performed at a larger scale to yield both higher quality and quantity of nano-graphite materials.