IMA-Daily Update Page 1

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Down 11%, Indonesia's coal export volume until July 2020 was only 238 million tons Turun 11%, volume ekspor batubara Indonesia hingga Juli 2020 hanya 238 juta ton Antam's Potential Profit Leap Potensi Lompatan Laba Antam Anticipating Global Market, Minister of EMR Pushes Against Coal Downstreaming Antisipasi Pasar Global, Menteri ESDM Kembali Dorong Hilirisasi Batu Bara Claims to run coal downstreaming, Arutmin Indonesia: We hope there are incentives Klaim akan jalankan hilirisasi batubara, Arutmin Indonesia: Kami harap ada insentif BUMI & BRMS shares shot up, will they change directors? Saham BUMI & BRMS Melesat, Bakal Rombak Direksi Nih? Minister of EMR Asks Pertamina to Accelerate Coal Gasification Menteri ESDM Minta Pertamina Percepat Gasifikasi Batu Bara Luhut Called Jokowi to Lobby Chinese President Xi Jinping to Import Indonesian Coal Luhut Sebut Jokowi Lobi Presiden Cina Xi Jinping untuk Impor Batu Bara RI PTBA Disburses Rp 128 Billion, Builds Sports Hall & Public Facilities in South Sumatra PTBA Kucurkan Rp 128 M, Bangun GOR & Fasilitas Umum di Sumsel Arutmin-Tanah Bumbu Regency Signed PPM Program Cooperation Arutmin-Pemkab Tanbu Teken Kerjasama Program PPM Sihayo set to raise $40 million for Indonesian gold push

Kontan Investor Daily Bisnis Kontan CNBC Indonesia CNN Indonesia Tempo CNBC Indonesia Pro-Kalsel The West Australian

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Copper’s outlook buoyant as demand increases World’s gold miners wary of production ramp-up despite price surge South African mining production falls 9.1% year-on-year 10 Biggest Mining Companies

Mining Weekly Mining.com Mining Technology Investopedia

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Down 11%, Indonesia's coal export volume until July 2020

was only 238 million tons Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

THE CORONA virus pandemic has made

the realization of Indonesian coal exports plummet. Based on data from the Ministry of Energy and Mineral Resources (MEMR), the volume of coal exports until July 2020 was only 238 million tons with a value of US$ 10.13 billion.

According to EMR Minister Arifin Tasrfin, this number decreased by 11% compared to the realization of export volume in the January-July 2019 period which amounted to 266 million tons. Tweedledum and tweedledee, the value of coal exports also fell 22% compared to the same period last year which amounted to US$ 12.36 billion.

"The decline in coal export performance was due to the impact of the Covid-19 pandemic, which resulted in a decrease in coal demand in the global market," Arifin explained online in a series of 30 years of Perhapi events, Monday (14/9).

He described that the demand for coal in the Indonesian market fell 20% and South Korea fell 15%. "There are also policies from major coal importer countries such as India and China which prioritize domestic coal production," said Arifin.

Arifin added that the Covid-19 pandemic also had an impact on reducing national coal production. He said, this pandemic resulted in a decrease in coal price trends, a drop in global demand, and limited access and mobility.

Turun 11%, volume ekspor batubara Indonesia hingga Juli

2020 hanya 238 juta ton Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PANDEMI virus corona membuat realisasi

ekspor batubara Indonesia merosot tajam. Berdasarkan data Kementerian Energi dan Sumber Daya Mineral (ESDM), volume ekspor batubara hingga Juli 2020 hanya 238 juta ton dengan nilai US$ 10,13 miliar.

Menurut Menteri ESDM Arifin Tasrfin, jumlah tersebut turun 11% dibandingkan realisasi volume ekspor pada periode Januari-Juli 2019 yang sebesar 266 juta ton. Setali tiga uang, nilai ekspor batubara juga anjlok 22% dibandingkan periode yang sama tahun lalu yang sebesar US$ 12,36 miliar.

"Penurunan kinerja ekspor batubara di-sebabkan dampak pandemi Covid-19, yang mengakibatkan penurunan kebutuhan batubara di pasar global ," jelas Arifin secara daring dalam rangkaian acara 30 tahun Perhapi, Senin (14/9).

Dia menggambarkan, kebutuhan batubara di pasar Indonesia turun 20% dan Korea Selatan melorot 15%. "Juga adanya kebijakan negara importir utama batubara seperti India dan China yang lebih mem-prioritaskan batubara produksi dalam negerinya," ungkap Arifin.

Arifin menambahkan, pandemi Covid-19 juga berdampak terhadap penurunan produksi batubara nasional. Kata dia, pandemi ini mengakibatkan penurunan tren harga batubara, anjloknya permintaan secara global, serta keterbatasan akses dan mobilitas.

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As a result , the realization of coal production until last August fell 11% year

on year (yoy) to 362 million tons. Even though in the first eight months of 2019,

coal production reached 409 million tons.

Just so you know, the realization of production in the January-August 2020

period is equivalent to 66% of the national coal production target which is set at 550

million tons. Even so, the Ministry of EMR has not changed the outlook for national

coal production until the end of December 2020, which is still 550 million tons.

With pandemic conditions, a number of

coal mining companies with quality less than 4,000 kcal (gar) and not having long-

term contracts, prefer to reduce or stop production. This is because the production

cost is already higher than the selling price.

Just so you know, this September, the

Reference Coal Price (HBA) is set at US$ 49.42 per ton. This HBA value is the lowest

since 2009.

Alhasil, realisasi produksi batubara hingga bulan Agustus lalu turun 11% secara year on year (yoy) menjadi 362 juta ton. Padahal di delapan bulan pertama 2019, produksi batu-bara capai 409 juta ton.

Asal tahu saja, realisasi produksi di periode Januari-Agustus 2020 ini setara dengan 66% dari target produksi batubara nasional yang dipatok sebesar 550 juta ton. Meski begitu, Kementerian ESDM tidak mengubah outlook produksi batubara nasional hingga akhir Desember 2020, yakni tetap sebesar 550 juta ton.

Dengan kondisi pandemi, sejumlah per-usahaan tambang batubara dengan kualitas kurang dari 4.000 kkal (gar) dan tidak me-miliki kontrak jangka panjang, lebih memilih untuk mengurangi atau menghentikan produksi. Sebab, biaya produksi sudah lebih tinggi daripada harga jual.

Asal tahu saja, pada September ini, Harga Batubara Acuan (HBA) ditetapkan sebesar US$ 49,42 per ton. Nilai HBA ini menjadi yang terendah sejak sejak tahun 2009.

Antam's Potential Profit Leap Parluhutan Situmorang

THE RECOVERY of China's steel industry

and the increase in the average selling

price of world gold will encourage the strengthening of the financial performance

of PT Aneka Tambang Tbk (ANTM) or Antam this year. Meanwhile, the upward

trend in mining commodity selling prices and sales volume, which is expected to

increase, has the potential to boost the company's net profit in 2021, thereby

boosting its share price.

Potensi Lompatan Laba Antam Parluhutan Situmorang

PULIHNYA industri baja Tiongkok dan

kenaikan rata-rata harga jual emas dunia

bakal mendorong penguatan kinerja

keuangan PT Aneka Tambang Tbk (ANTM)

atau Antam tahun ini. Sedangkan tren

kenaikan harga jual komoditas tambang

dan volume penjualan yang diperkirakan

meningkat berpotensi melambungkan laba

bersih perseroan pada 2021, sehingga bisa

mendongkrak harga sahamnya.

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Samuel Sekuritas Indonesia analyst Dessy Lapagu revealed that the gold price is projected in the range of US$ 1,850-2,010 per oz this year.

Meanwhile, the realization of the average selling price in the first semester of 2020 reached US$ 1,650 per oz. In fact, the price of gold was above US$ 2,000 per oz in early August. Meanwhile, the nickel selling price is estimated to be at the level of US$ 13,000-14,300 per ton this year.

"The opportunity for an increase in Antam's commodity selling price has prompted us to revise upward ANTM's financial performance target and share price this year. ANTM is recommended to buy with a target price of Rp 960. This target is based on the DCF method,” wrote Dessy in her recent research.

Despite the potential to benefit from the increase in selling prices for gold and nickel, Antam will face a decline in production and sales volume of these two commodities. The decline was influenced by regional restrictions due to the Covid-19 pandemic which impacted the company's commodity sales in the domestic and export markets.

"We are projecting a decline in gold revenue of around 16.1% this year, but we are expected to jump 19.4% next year. The adoption of new habits in the second half of this year is expected to boost the company's gold sales volume. We estimate the increase in the company's gold sales volume this year will reach 21,500-23,700 kilograms with an average selling price of US$ 1,850-2,010 in 2020-2021,” he explained.

The ferronickel sales volume is estimated to grow by 15-10% in 2020-2021. The increasing trend can be seen from the company's sales in the second quarter of this year. This increase is supported by...

Analis Samuel Sekuritas Indonesia Dessy Lapagu mengungkapkan, harga emas di-proyeksikan pada kisaran US$ 1.850-2.010 per oz sepanjang tahun ini.

Sedangkan realisasi rata-rata harga jual pada semester I-2020 mencapai US$ 1.650 per oz. Bahkan, harga emas sempat berada di atas US$ 2.000 per oz pada awal Agustus. Sedangkan harga jual nikel diper-kirakan berada di level US$ 13.000- 14.300 per ton sepanjang tahun ini.

“Peluang kenaikan harga jual komoditas Antam mendorong kami untuk merevisi naik target kinerja keuangan dan harga saham ANTM tahun ini. ANTM direko-mendasikan beli dengan target harga Rp 960. Target ini berdasarkan metode DCF,” tulis Dessy dalam risetnya, baru-baru ini.

Meski berpotensi mendapatkan berkah dari kenaikan harga jual emas dan nikel, Antam akan menghadapi penurunan volume produksi dan penjualan kedua komoditas tersebut . Penurunan di-pengaruhi oleh pembatasan wilayah akibat pandemic Covid-19 yang berimbas ter-hadap penjualan komoditas perseroan di pasar domestic dan ekspor.

“Kami memproyeksikan penurunan pen-dapatan emas sekitar 16,1% tahun ini, namun diharapkan melonjak 19,4% tahun depan. Adanya adopsi kebiasaan baru pada paruh kedua tahun ini diharapkan men-dongkrak volume penjualan emas per-seroan. Kami memperkirakan peningkatan volume penjualan emas perseroan tahun ini mencapai 21.500-23.700 kilogram dengan rata-rata harga jual US$ 1.850-2.010 pada 2020-2021,” jelas dia.

Adapun volume penjualan feronikel di-perkirakan bertumbuh sebesar 15-10% pada 2020-2021. Tren peningkatan terlihat dari penjualan perseroan pada kuartal II tahun ini. Peningkatan tersebut didukung oleh...

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This increase is supported by the recovery of steel mills in China which could have an impact on the increase in the volume of demand and the selling price of these products. Dessy estimates that Antam's ferronickel sales volume in 2020-2021 will range from 30,100 - 33,100 tonnes, an increase compared to last year's sales which reached 26,212 tonnes. This prompted Samuel Sekuritas to revise Antam's financial performance targets for 2020-2022.

The company's net profit projection this year has been revised up from Rp 142 billion to Rp 161 billion compared to last year's Rp 194 billion. Meanwhile, the revenue projection has been revised down from Rp 29.8 trillion to Rp 25.54 trillion compared to the 2019 achievement of Rp 32.71 trillion. Likewise, the estimated net profit in 2021 has been revised upward from Rp 220 billion to Rp 271 billion.

In contrast, the company's revenue target was revised down from the original projection of Rp 31.87 trillion to Rp 30.16 trillion.

The upward revision of Antam's net profit projection is expected to raise ANTM's price in the next 12 months. Samuel Sekuritas revised ANTM's recommen-dation from hold to buy with the target price being increased from Rp 670 to Rp 960. The target takes into account the company's efficiency factor which has an impact on expectations of an increase in profit margins.

Meanwhile, Danareksa Sekuritas analyst Stefanus Darmagiri said Antam is believed to be able to increase ferronickel production volume by 5 percent to 27 thousand tons this year. The increase was supported by increased utilization of Pomalaa's ferronickel plant. This is expected to sustain financial performance this year. Antam also intends to...

Peningkatan tersebut didukung oleh pulihnya pabrik baja di Tiongkok yang bisa berdampak pada kenaikan volume permintaan dan harga jual produk tersebut. Dessy memperkirakan volume penjualan feronikel Antam pada 2020-2021 berkisar 30.100-33.100 Tni, naik dibandingkan penjualan tahun lalu yang mencapai 26.212 Tni. Hal tersebut men-dorong Samuel Sekuritas merevisi naik target kinerja keuangan Antam tahun 2020-2022.

Proyeksi laba bersih perseroan tahun ini direvisi naik dari Rp 142 miliar menjadi Rp 161 miliar dibandingkan raihan tahun lalu Rp 194 miliar. Sedangkan proyeksi pen-dapatan direvisi turun dari Rp 29,8 triliun menjadi Rp 25,54 triliun dibandingkan raihan tahun 2019 senilai Rp 32,71 triliun. Begitu juga dengan perkiraan laba bersih tahun 2021 direvisi naik dari Rp 220 miliar menjadi Rp 271 miliar.

Sebaliknya, target pendapatan perseroan direvisi turun dari proyeksi semula Rp 31,87 triliun menjadi Rp 30,16 triliun.

Revisi naik proyeksi laba bersih Antam tersebut diharapkan mengerek harga ANTM dalam 12 bulan ke depan. Samuel Sekuritas merevisi rekomendasi ANTM dari hold menjadi beli dengan target harga dinaikkan dari Rp 670 menjadi Rp 960. Target tersebut mempertimbangkan faktor efisiensi perseroan yang berdampak terhadap ekspektasi peningkatan margin keuntungan.

Sementara itu, analis Danareksa Sekuritas Stefanus Darmagiri mengungkapkan, Antam diyakini mampu untuk men-dongkrak volume produksi feronikel sebesar 5% menjadi 27 ribu ton tahun ini. Peningkatan didukung oleh kenaikan utilisasi pabrik feronikel Pomalaa. Hal tersebut diharapkan menopang kinerja keuangan sepanjang tahun ini. Antam juga berniat untuk...

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Antam also intends to boost nickel ore sales volume for the domestic market, in line with the ban on nickel ore exports. Meanwhile, the company's nickel ore production volume is estimated to continue to decline by 60 percent to 4.2 million tons this year.

This year's gold sales volume is estimated to drop to 17-18 thousand kilograms compared to the original estimate of 32 thousand kilograms.

"With a focus on sales of the domestic market and the impact of social restrictions, the company's gold sales volume is expected to decline this year," Stefanus explained in his research.

Apart from these factors, he estimates that the increase in the average selling price of gold will support Antam's financial performance this year. Based on data, the price of gold touched a level above US$ 2,000 per troy ounce in August, before finally dropping to a level of US$ 1,980 per troy ounce. The price increase is expected to boost the company's net profit this year compared to last year's acquisition.

"We estimate that solid nickel selling price and continued strengthening of gold selling price will strengthen Antam's financial performance in the third quarter of this year. However, the lowering of the gold sales volume target was due to the company's focus on strengthening domestic gold sales after social restrictions were an obstacle to this year's performance," said Stefanus.

Danareksa Sekuritas has revised up Antam's average selling price of gold from US$ 1,400 to US$ 1,700 per troy ounce this year. However, the estimated sales volume of this commodity has been cut from 32 thousand kg to 18 thousand kg. The company's gold production volume is maintained at 18 kg this year.

Antam juga berniat untuk mendongkrak volume penjualan bijih nikel untuk pasar domestik, seiring dengan pelarangan eskpor bijih nikel tersebut. Sedangkan volume produksi bijih nikel perseroan diperkirakan tetap turun sebanyak 60% menjadi 4,2 juta ton tahun ini.

Adapun volume penjualan emas tahun ini diperkirakan turun menjadi 17-18 ribu kilogram dibandingkan perkiraan semula sebanyak 32 ribu kilogram.

“Dengan fokus penjualan pasar domestik dan dampak pembatasan sosial, volume penjualan emas perseroan diperkirakan turun sepanjang tahun ini,” jelas Stefanus dalam risetnya.

Selain faktor tersebut, dia memperkirakan kenaikan rata-rata harga jual emas akan menopang kinerja keuangan Antam tahun ini. Berdasarkan data, harga emas sempat menyentuh level di atas US$ 2.000 per troy ounce pada Agustus, sebelum akhirnya turun ke level US$ 1.980 per troy once. Penguatan harga tersebut diperkirakan dapat mendongkrak laba bersih perseroan tahun ini dibandingkan perolehan tahun lalu.

“Kami memperkirakan solidnya harga jual nikel dan berlanjutnya penguatan harga jual emas akan memperkuat kinerja keuangan Antam pada kuartal III tahun ini. Namun, penurunan target volume pen-jualan emas akibat fokus perseroan mem-perkuat penjualan emas di dalam negeri setelah pembatasan sosial menjadi peng-hambat kinerja tahun ini,” ungkap Stefanus.

Danareksa Sekuritas merevisi naik rata-rata harga jual emas Antam dari US$ 1.400 menjadi US$ 1.700 per troy ounce tahun ini. Namun, perkiraan volume penjualan komoditas ini dipangkas dari 32 ribu kg menjadi 18 ribu kg. Volume produksi emas perseroan dipertahankan sebanyak 18 kg tahun ini.

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The revision of the target price increase for gold has prompted Danareksa Sekuritas to revise Antam's financial performance this year. The net profit target was revised up from Rp 235 billion to Rp 293 billion.

Meanwhile, the revenue estimate was revised down from Rp 27.9 trillion to Rp 21.44 trillion. The revision of the target net profit increase made Danareksa Sekuritas increase the ANTM target price to Rp 900 with a recommendation to maintain a buy.

As of the first semester of 2020, Antam posted a net profit of Rp. 85 billion, down from Rp. 428 billion in the same period last year. Meanwhile, income decreased from Rp 14.42 tril l ion. Editor: Gora Kunjana (gora_kunjana@investor.co.id)

Revisi naik target harga jual emas tersebut mendorong Danareksa Sekuritas untuk merevisi kinerja keuangan Antam tahun ini. Target laba bersih direvisi naik dari Rp 235 miliar menjadi Rp 293 miliar.

Sedangkan estimasi pendapatan direvisi turun dari Rp 27,9 triliun menjadi Rp 21,44 triliun. Revisi naik target laba bersih mem-buat Danareksa Sekuritas menaikkan target harga ANTM menjadi Rp 900 dengan reko-mendasi dipertahankan beli.

Hingga semester I-2020, Antam mem-bukukan laba bersih senilai Rp 85 miliar, turun dibandingkan periode sama tahun lalu mencapai Rp 428 miliar. Sedangkan pen-dapatan turun dari Rp 14,42 triliun. Editor : Gora Kunjana (gora_kunjana@investor.co.id)

Anticipating Global Market, Minister of EMR Pushes Against

Coal Downstreaming Denis Riantiza Meilanova

MINISTER of Energy and Mineral

Resources (MEMR) Arifin Tasrif encourages coal companies to realize their coal downstream plans in order to anticipate changes in global market demand in the future.

Arifin said that national coal production is still export-oriented, so there is a risk of price fluctuations and the impact of changes in global markets.

"Prioritizing domestic interests, one of which is through optimizing the use of low quality coal and downstream efforts, is expected to become a new paradigm for the national coal mining industry in the future," said Arifin at the 5th Save Indonesian Coal 2020 event, Monday (14/9/2020).

Antisipasi Pasar Global, Menteri ESDM Kembali Dorong

Hilirisasi Batu Bara Denis Riantiza Meilanova

MENTERI Energi dan Sumber Daya Mineral

(ESDM) Arifin Tasrif mendorong perusahaan batu bara untuk merealisasikan rencana hilirisasi batu bara guna mengantisipasi perubahan permintaan pasar global di masa depan.

Arifin menuturkan, produksi batu bara nasional masih berorientasi ekspor sehingga berisiko terhadap fluktuasi harga dan dampak perubahan pasar global.

"Pengutamaan kepentingan dalam negeri salah satunya melalui optimalisasi pemanfaatan batu bara kualitas rendah dan upaya hilirisasi di-harapkan menjadi paradigma baru industri pertambangan batu bara nasional di masa yang akan datang," ujar Arifin dalam acara The 5th Save Indonesian Coal 2020, Senin (14/9/ 2020).

IMA-Daily Update Page 9

Furthermore, Arifin said that there have been several plans to realize the added value of coal. The government is targeting additional three coal upgrading facilities at PT ZJG Resources Technology Indonesia in 2024.2026 and 2028 with a capacity of 1.5 million tons per year respectively.

Then there is a plan to gasify coal into dimethyl ether (DME) by PT Bukit Asam Tbk (PTBA) in 2024 and a plan to gasify coal into methanol by PT Kaltim Prima Coal. The government is also targeting additional briquette factories by PTBA in 2026 and 2028 with a capacity of 20,000 per year.

In addition, it is also targeted to add two chocolate making facilities at PT Megah Energi Khatulistiwa in 2026 and 2028 with a capacity of approximately 1 million tons.

As for Arifin's explanation, the demand for coal in the global market this year is projected to fall by 51.4 million tons compared to last year or only reaching 978.5 million tons. Meanwhile, global coal supply is estimated to reach 996.9 million tons, so it is estimated that there will be an excess supply of around 18.34 million tons. The decline in coal demand in the global market is the impact of the Covid-19 pandemic.

Meanwhile, the Advisory Board of the Indonesian Mining Experts Association (Perhapi) Jeffrey Mulyono believes there is nothing that can be done to respond to falling demand for coal in the global market in the short term. However, to anticipate the decline in demand in the long term, according to him, the downstreaming of coal needs to be encouraged.

"I think in the short term, if we are asked to fight the falling demand, it seems we can't do anything. But in the long term...

Lebih lanjut, Arifin menyebutkan telah terdapat beberapa rencana realisasi nilai tambah batu bara. Pemerintah menarget-kan terdapat penambahan tiga fasilitas coal upgrading di PT ZJG Resources Technology Indonesia pada 2024,2026, dan 2028 dengan kapasitas masing-masing 1,5 juta ton per tahun.

Kemudian terdapat rencana gasifikasi batu bara menjadi dimethyl ether (DME) oleh PT Bukit Asam Tbk (PTBA) pada 2024 dan rencana gasifikasi batu bara menjadi methanol oleh PT Kaltim Prima Coal. Pemerintah juga menargetkan terdapat penambahan pabrik briket oleh PTBA pada 2026 dan 2028 dengan kapasitas 20.000 per tahun.

Selain itu, juga ditargetkan penambahan dua fasilitas cokes making di PT Megah Energi Khatulistiwa pada 2026 dan 2028 dengan kapasitas kurang lebih 1 juta ton.

Adapun dalam paparan Arifin, permintaan batu bara di pasar global tahun ini di-proyeksikan turun 51,4 juta ton dibanding-kan tahun lalu atau hanya mencapai 978,5 juta ton. Sedangkan suplai batu bara global diperkirakan mencapai 996,9 juta ton sehingga diperkirakan akan terjadi kelebihan pasok sekitar 18,34 juta ton. Penurunan permintaan batu bara di pasar global ini sebagai dampak pandemi Covid-19.

Sementara itu, Dewan Penasehat Perhim-punan Ahli Pertambangan Indones ia (Perhapi) Jeffrey Mulyono berpendapat tidak ada yang bisa dilakukan untuk merespon turunnya permintaan batu bara di pasar global dalam jangka waktu pendek. Namun untuk mengantisipasi penurunan permin-taan dalam jangka waktu panjang, menurut-nya, hilirisasi batu bara perlu didorong.

"Saya kira untuk jangka pendek, kalau disuruh melawan demand yang turun rasanya kita tidak bisa apa-apa. Tapi untuk jangka panjang...

IMA-Daily Update Page 10

But in the long term it can be converted into a downstream coal industry. If the downstream industry is advanced, it will be easy for us to play a balance between one and the other," he said. Editor: Hadijah Alaydrus

Tapi untuk jangka panjang bisa di-konversikan jadi downstream industri batu bara. Kalau industri downstream maju maka mudah bagi kita untuk bermain keseimbangan antara satu dan yang lain," katanya. Editor : Hadijah Alaydrus

Claims to run coal down-streaming, Arutmin Indonesia: We hope there are incentives

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

PT ARUTMIN Indonesia hopes to

immediately receive certainty regarding the extension of the Coal Mining Exploitation Work Agreement (PKP2B). That way, the subsidiary of PT Bumi Resources Tbk (BUMI) can change its status to a Special Mining Business License (IUPK) as a continuation of contract/ agreement operations.

General Manager of Legal & External Affairs Arutmin Indonesia Ezra Sibarani claims that his party is ready to carry out the required obligations if the government later grants a license extension and changes its status to IUPK for the continuation of contract operations. Meanwhile, one of the obligations required by the government is increasing the added value or downstreaming of coal.

In relation to this obligation, Arutmin plans to develop coal through gasification. He said, economic and technical studies had been made.

However, to support investment and economic feasibility, Ezra said that his party still needed incentives in the form of fiscal and non-fiscal.

Klaim akan jalankan hilirisasi batubara, Arutmin Indonesia:

Kami harap ada insentif Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PT ARUTMIN Indonesia berharap segera

mendapat kepastian terkait perpanjangan

Perjanjian Karya Pengusahaan Pertam-bangan Batubara (PKP2B). Dengan begitu,

anak usaha PT Bumi Resources Tbk (BUMI) tersebut bisa berubah status menjadi Izin

Usaha Pertambangan Khusus (IUPK) sebagai kelanjutan operasi kontrak/perjanjian.

General Manager Legal & External Affairs Arutmin Indonesia Ezra Sibarani mengklaim,

pihaknya siap menjalankan kewajiban yang disyaratkan jika nantinya pemerintah mem-

berikan perpanjangan izin dan alih status menjadi IUPK kelanjutan operasi kontrak.

Adapun, salah satu kewajiban yang di-syaratkan pemerintah ialah peningkatan

nilai tambah atau hilirisasi batubara.

Terkait dengan kewajiban tersebut, Arutmin

berencana melakukan pengembangan batu-bara melalui gasifikasi. Kata dia, kajian

ekonomi dan teknis sudah dibuat.

Namun untuk menyokong kelayakan investasi dan keekonomian, Ezra menyebut

pihaknya masih membutuhkan insentif berupa fiskal maupun non-fiskal.

IMA-Daily Update Page 11

"Indeed, we need both fiscal and non-fiscal incentives to ensure that the project runs well," Ezra told Kontan.co.id, Monday (14/9).

He added that Arutmin is still waiting for certainty on the extension of the permit and also the details of the implementation rules from the government regarding the increase in added value of coal. Ezra hopes that in this coal gasification project the government can provide a number of incentives such as tax incentives, royalties and ease of operating permits.

"We are still waiting. Hopefully there can be royalty incentives related to coal used for gasification projects, tax incentives and ease of licensing related to operations," Ezra continued.

Meanwhile, from the corporate side, Ezra considers that the increase in added value of coal is quite promising. Moreover, coal companies also cannot control the market and coal price trends that fluctuate rapidly.

"In my opinion, the prospects for the future are quite good, because we also need to make development efforts. Moreover, seeing the coal price trend which is quite volatile," he explained.

Just so you know, Arutmin Indonesia's coal downstream project will go to its parent company, namely Bumi Resources and also the Bakrie Group. As is known, the Bakrie Group, through PT Bakrie Capital Indonesia, has collaborated with PT Ithaca Resources and Air Products to build a coal production facility for methanol in East Kalimantan.

The consortium targets the coal to methanol project to operate in 2024. In the project, which is estimated to cost an investment of up to US$ 2 billion, BUMI has the potential to supply up to 6 million tonnes of coal per year.

"Memang kami membutuhkan insentif baik fiskal maupun non-fiskal untuk memastikan proyek tersebut berjalan dengan baik," kata Ezra kepada Kontan.co.id, Senin (14/9).

Dia menambahkan, Arutmin masih me-nunggu kepastian perpanjangan izin dan juga detail aturan pelaksanaan dari peme-rintah terkait peningkatan nilai tambah batubara tersebut. Ezra berharap dalam proyek gasifikasi batubara ini pemerintah bisa menyediakan sejumlah insentif seperti insentif perpajakan, royalti dan kemudahan izin operasi.

"Kami masih menunggu. Harapannya bisa ada insentif royalti terkait batubara yang digunakan untuk proyek gasifikasi, insentif pajak dan kemudahan perizinan terkait operasi," sambung Ezra.

Adapun, dari sisi korporasi Ezra menilai bahwa peningkatan nilai tambah batubara cukup menjanjikan. Terlebih, perusahaan batubara juga tidak bisa mengontrol pasar dan tren harga batubara yang berfluktuasi dengan kencang.

"Prospek ke depannya menurut saya cukup baik, karena kita juga perlu melakukan upaya pengembangan. Apalagi melihat tren harga batubara yang cukup fluktuatif," terangnya.

Asal tahu saja, proyek hilirisasi batubara Arutmin Indonesia akan menginduk ke induk usahanya, yakni Bumi Resources dan juga Bakrie Group. Seperti diketahui, Group Bakrie melalui PT Bakrie Capital Indonesia telah menjalin kerjasama dengan PT Ithaca Resources dan Air Product untuk mem-bangun fasilitas produksi batubara menjadi metanol di Kalimantan Timur.

Konsorsium tersebut menargetkan proyek batubara menjadi metanol itu bisa beroperasi pada 2024. Dalam proyek yang diestimasikan menelan biaya investasi hingga US$ 2 miliar tersebut, BUMI berpotensi memasok kebu-tuhan batubara hingga 6 juta ton per tahun.

IMA-Daily Update Page 12

Meanwhile, in the draft PP draft regarding the implementation of mineral and coal mining business activities obtained by Kontan.co.id, Article 115 of the regulation states that IUPK holders as a continuation of contract/agreement operations for coal mining commodities are required to carry out development and/or utilization of coal in the country.

Article 116 further explains that coal development and/or utilization activities are in the form of: (a) coal development, including: (1) coking, (2) coal liquefaction, and (3) coal gasification. gasification) including undergorund coal gasification. Meanwhile, (b) the use of coal through the construction of a new PLTU at the mouth of the mine for the public interest.

However, further provisions regarding the development and/or utilization of coal, including the procedures for evaluation and approval of plans, will be regulated in a Ministerial Regulation.

Adapun, dalam draft Rancangan PP tentang pelaksanaan kegiatan usaha pertambangan minerba yang didapat Kontan.co.id, Pasal 115 beleid tersebut menyebutkan bahwa pemegang IUPK sebagai kelanjutan operasi kontrak/perjanjian untuk komoditas tambang batubara wajib melaksanakan kegiatan pengembangan dan/atau peman-faatan batubara di dalam negeri.

Pasal 116 lebih lanjut menerangkan bahwa kegiatan pengembangan dan/atau peman-faatan batubara berupa: (a) pengembangan batubara, meliputi: (1) pembuatan kokas (coking), (2) pencairan batubara ( coal liquefaction), dan (3) gasifikasi batubara (coal gasification) termasuk undergorund coal gasification. Sedangkan, (b) pemanfaatan batu-bara melalui pembangunan sendiri PLTU baru di mulut tambang untuk kepentingan umum.

Namun, ketentuan lebih lanjut mengenai kegiatan pengembangan dan/atau peman-faatan batubara, termasuk mengenai tata cara evaluasi dan pemberian persetujuan rencana, akan diatur dalam Peraturan Menteri.

BUMI & BRMS shares shot up,

will they change directors? Tri Putra, CNBC Indonesia

THE DOMESTIC stock market was excited

in today's trading because in the midst of the Composite Stock Price Index (JCI) which was still corrected quite badly, namely 0.63%, shares of PT Bumi Resources Tbk (BUMI) returned to competition after sleeping for a while. Today BUMI has managed to rise from its lowest level of Rp 50/unit, flying 4% to Rp 52/unit.

Saham BUMI & BRMS Melesat,

Bakal Rombak Direksi Nih? Tri Putra, CNBC Indonesia

JAGAT bursa domestik berhasil dibuat

heboh pada perdagangan hari ini pasalnya di tengah Indeks Harga Saham Gabungan

(IHSG) yang masih terkoreksi cukup parah yakni 0,63%, saham PT Bumi Resources

Tbk (BUMI) kembali berlaga setelah tertidur sejenak. Hari ini BUMI berhasil

bangkit dari level terendahnya yakni Rp 50/unit terbang 4% ke level Rp 52/unit.

IMA-Daily Update Page 13

Not only its parent company, BUMI's subsidiary, PT Bumi Resources Minerals Tbk (BRMS), also managed to accelerate in today's trade. It is observed that today's BRMS price has increased by 14.55% to the level of Rp 63/unit.

Market players have succeeded in responding positively to the increase in coal prices, which will certainly have a positive impact on coal issuers such as BUMI.

Last week, the benchmark coal price in the ICE Newcastle (Australia) market skyrocketed 7.44% on a point-to-point basis. In today's trade, although the price is still below US$ 60/ton, to be precise at US$ 53.8/ton.

In addition, market players also responded to BUMI's Extraordinary General Meeting of Shareholders (EGMS) which will be held tomorrow (16/9/20) at JS Luwansa Hotel at 14:00.

In the disclosure of information submitted to the Indonesia Stock Exchange (IDX), the agenda and agenda of the EGMS are changes and re-determination of the composition of the Company's Directors and Board of Comm..

"This agenda item is related to the resignation of the President Commissioner and the re-establishment of the composition of the Company's Board of Directors and Board of Commissioners," said the announcement. CNBC INDONESIA RESEARCH TEAM (trp/trp)

Tidak hanya induknya, anak usaha BUMI yakni PT Bumi Resources Minerals Tbk (BRMS) juga berhasil melesat pada perda-gangan hari ini. Terpantau harga BRMS hari ini naik 14,55% ke level Rp 63/unit.

Para pelaku pasar berhasil merespons positif kenaikan harga batu legam yang tentunya akan berdampak positif bagi emiten batu bara seperti BUMI.

Pekan lalu, harga batu bara acuan di pasar ICE Newcastle (Australia) meroket 7,44% secara point-to-point. Pada perdagangan hari ini meskipun harga masih di bawah US$ 60/ton, tepatnya di US$ 53,8/ton.

Selain itu pelaku pasar juga merespons Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) BUMI yang akan diberlangsukan besok (16/9/20) di JS Luwansa Hotel pada Jam 14:00.

Dalam keterbukaan informasi yang di-sampaikan ke Bursa Efek Indonesia (BEI), agenda dan mata acara RUPSLB adalah perubahan dan penetapan kembali susunan Direksi dan Dewan Komisaris Perseroan.

"Mata acara ini terkait dengan adanya pengunduran diri Presiden Komisaris dan penetapan kembali susunan anggota Direksi dan Dewan Komisaris Perseroan," sebut pengumuman tersebut. TIM RISET CNBC INDONESIA (trp/trp)

Minister of EMR Asks Pertamina to Accelerate Coal Gasification

MINISTER of Energy and Mineral Resources (MEMR) Arifin Tasrif asked PT Pertamina (Persero) to accelerate the coal gasification project with PT Bukit Asam (Persero) or PTBA in order to immediately suppress imports of Indonesian LPG.

Menteri ESDM Minta Pertamina Percepat Gasifikasi Batu Bara

MENTERI Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif meminta PT Pertamina (Persero) mempercepat proyek gasifikasi batu bara bersama PT Bukit Asam (Persero) atau PTBA agar dapat segera menekan impor LPG Indonesia.

IMA-Daily Update Page 14

The gasification project initiated by the two companies is also an effort to

downstream coal. Later, the gasification project can produce synthesis gas (syngas)

to Dimethyl Ether (DME) as a substitute for household Liquified Petroleum Gas (LPG).

"Pertamina and Bukit Asam are currently

carrying out a project to produce a substitute for LPG, Dimethyl Ether (DME).

This is generated from low-calorie coal processing. It is hoped that in the future it

can be carried out massively," he said in a Primetime News discussion on Metro TV,

Monday (14/9).

It is known, previously Pertamina and Bukit Asam signed a downstream

cooperation agreement on March 20, 2020.

Through this cooperation, Bukit Asam will

later process low-calorie coal into methanol to be supplied to Pertamina for

the purposes of the Pertamina Gasoline A20 program.

Bukit Asam will carry out the down-

streaming of coal into methanol in its mining area to then supply 1 million tons

per year to Pertamina.

The plan is that the downstream production will begin in the middle to the

end of 2024. Previously, the two companies will jointly conduct a project

development study and a feasibility study.

The downstreaming of coal to ethanol,

Arifin continued, will also support the government's program to reduce imports

of gasoline or premium gasoline.

"This also reflects that national energy security comes from local raw materials,"

he said. (hrf/sfr)

Proyek gasifikasi yang digagas dua per-usahaan tersebut juga merupakan upaya hilirisasi batu bara. Nantinya, proyek gasifikasi dapat menghasilkan synthesis gas (syngas) hingga Dimethyl Eter (DME) sebagai substitusi Liquified Petroleum Gas (LPG/elpiji) rumah tangga

"Pertamina dan Bukit Asam sedang melak-sanakan suatu projek untuk menghasilkan substitusi LPG, Dimethyl Eter (DME). Ini dihasilkan dari pemrosesan batu bara berkalori rendah. Diharapkan ke depannya bisa masif dilakukan," ujarnya dalam diskusi Primetime News di Metro TV, Senin (14/9).

Diketahui, sebelumnya Pertamina dan Bukit Asam menandatangani perjanjian kerja sama hilirisasi pada 20 Maret 2020.

Melalui kerja sama ini, nantinya Bukit Asam akan mengolah batu bara kalori rendah menjadi methanol untuk dipasok ke Pertamina guna keperluan program Pertamina Gasoline A20.

Bukit Asam akan melakukan hilirisasi batu bara menjadi methanol di area wilayah tambangnya untuk kemudian menyuplai sebanyak 1 juta ton per tahun ke Pertamina.

Rencananya, produksi hilirisasi ini akan dimulai pada pertengahan hingga akhir 2024. Sebelumnya, kedua perusahaan ini akan bersama-sama untuk melakukan kajian pengembangan proyek serta studi kelayakan (feasibility study).

Hilirisasi batu bara menjadi ,ethanol ini, lanjut Arifin, juga akan mendukung program pemerintah untuk mengurangi impor gasoline atau bensin Premium.

"Ini juga mencerminkan bahwa ketahanan energi nasional bersumber dari bahan-bahan baku yang didapat di lokal," tandas-nya. (hrf/sfr)

IMA-Daily Update Page 15

Luhut Called Jokowi to Lobby Chinese President Xi Jinping to

Import Indonesian Coal Reporter: Bisnis.com, Editor: Kodrat Setiawan

COORDINATING Minister for Maritime

Affairs and Investment Luhut B. Pandjaitan revealed that President Joko Widodo or Jokowi has lobbied Chinese President Xi Jinping to import coal from Indonesia.

According to Luhut, China has reduced coal imports from the global market by around 300 million tons. The import reduction is because the Bamboo Curtain country prioritizes the use of domestic coal production.

"The President has spoken with President Xi Jinping regarding this matter. The President asked President Xi Jinping if possible, maybe it is still importing from us, maybe 100 million (tons) or how much so that it can later build our coal industry production," Luhut said in a statement. The 5th Save Indonesian Coal 2020 event, Monday, 14 September 2020.

However, Luhut did not explain further how the Chinese government responded to President Jokowi's request.

China is Indonesia's main coal export destination country. Based on data from the Indonesian Coal Mining Association (APBI), around 33 percent of Indonesia's total coal exports last year went to China, about 27 percent to India, and the rest to other Asian countries.

Meanwhile, during January-July 2020, Indonesia's coal export volume was recorded to reach 238 million tons, down 11 percent compared to the realization in the same period last year which reached 266 million tons. Of this total, 83.01 million tonnes were exported to China.

Luhut Sebut Jokowi Lobi Presiden Cina Xi Jinping untuk Impor Batu

Bara RI Reporter: Bisnis.com, Editor: Kodrat Setiawan

MENTERI Koordinator Bidang Kemaritiman

dan Investasi Luhut B. Pandjaitan meng-ungkapkan Presiden Joko Widodo atau Jokowi telah melobi Presiden Cina Xi Jinping untuk mengimpor batu bara dari Indonesia.

Menurut Luhut, Cina telah mengurangi impor batu bara dari pasar global sekitar 300 juta ton. Pengurangan impor ini karena Negeri Tirai Bambu itu lebih memprioritaskan pemanfaatan batu bara produksi dalam negerinya.

"Presiden sudah bicara dengan Presiden Xi Jinping mengenai masalah ini. Presiden minta kepada ke Presiden Xi Jinping kalau boleh mungkin masih impor dari kita, mungkin 100 juta (ton) atau berapa sehingga itu nanti bisa membangun produksi industri batu bara kita," ujar Luhut dalam acara The 5th Save Indonesian Coal 2020, Senin, 14 September 2020.

Namun, Luhut tak menjelaskan lebih lanjut bagaimana respons pemerintah Cina terkait permintaan Presiden Jokowi tersebut.

Cina merupakan negara tujuan ekspor batu bara utama Indonesia. Berdasarkan data Asosiasi Pertambangan Batubara Indonesia (APBI), sekitar 33 persen dari total ekspor batu bara Indonesia tahun lalu ditujukan ke Cina, sekitar 27 persen ke India, dan sisanya ke negara-negara Asia lainnya.

Sedangkan sepanjang Januari-Juli 2020, volume ekspor batu bara Indonesia tercatat mencapai mencapai 238 juta ton atau turun 11 persen dibandingkan realisasi pada periode yang sama tahun lalu yang mencapai 266 juta ton. Dari jumlah tersebut, sebanyak 83,01 juta ton dieskpor ke Cina.

IMA-Daily Update Page 16

Previously, APBI Executive Director Hendra Sinadia said that the coal industry is now in a survival mode or mode of survival amidst the challenges of the downward trend in coal prices and demand.

He said, as a result of the Covid-19 pandemic, global coal demand is projected to have a significant correction of up to 100 million tons. The biggest correction in demand came from the two main coal importing countries, namely China and India.

"This is the biggest historical decline in history according to some analysts," said Hendra in early September. BISNIS

Sebelumnya, Direktur Eksekutif APBI Hendra Sinadia mengatakan bahwa industri batu bara kini berada dalam survival mode atau mode bertahan hidup di tengah tantangan tren penurunan harga dan permintaan batu bara.

Dia menuturkan, sebagai dampak pandemi Covid-19 permintaan batu bara global diproyeksikan terkoreksi signifikan hingga 100 juta ton. Koreksi permintaan terbesar berasal dari dua negara utama pengimpor batu bara, yakni Cina dan India.

"Ini historical penurunan terbesar sepanjang sejarah menurut beberapa analis," kata Hendra pada awal September lalu. BISNIS

PTBA Disburses Rp 128 Billion, Builds Sports Hall & Public

Facilities in South Sumatra

PT BUKIT Asam Tbk (PTBA) has allocated

Rp 128 billion to build a new sports building, repair the Jakabaring Sport City venue, and construct public facilities and duty-support vehicles in South Sumatra Province.

This fund allocation is included in PTBA's Corporate Social Responsibility (CSR) program which is supported and signed by the Governor of South Sumatra, Herman Deru. This Cooperation Program will run from 2019 until completion of construction in 2021.

There are 11 new stadiums/sports buildings with project values ranging from Rp. 4 billion to Rp. 10 billion per building.

PTBA Kucurkan Rp 128 M, Bangun GOR & Fasilitas Umum

di Sumsel

PT BUKIT Asam Tbk (PTBA) mengalokasikan

dana sebesar Rp 128 miliar untuk mem-bangun gedung olahraga baru, perbaikan venue Jakabaring Sport City, dan pem-bangunan fasilitas umum serta kendaraan pendukung tugas di Provinsi Sumatra Selatan.

Alokasi dana ini masuk dalam program Corporate Social Responsibility (CSR) PTBA yang didukung dan telah ditandatangani oleh Gubernur Sumatra Selatan Herman Deru. Program Kerjasama ini berlangsung sejak 2019 sampai selesai pembangunan pada 2021 mendatang.

Terdapat sebanyak 11 Stadion/Gedung Olahraga baru dengan nilai proyek mulai dari Rp 4 miliar sampai Rp 10 miliar per gedung.

IMA-Daily Update Page 17

GORs are scattered in various districts/ cities in South Sumatra, starting from; Empat Lawang Regency, Pagar Alam City, East OKU Regency, Prabumulih City, Ogan Ilir Regency, Musi Rawas Regency and others.

From the CSR fund, PTBA allocated Rp 4.82 billion to improve sports facilities and venues in Jakabaring Sport City. There are 5 venues that were repaired, namely athletic venue, aquatic venue, tennis court venue, GOR Ranau, and Jakabaring Sport City shelter.

In the health facilities sector, PTBA has allocated Rp 5 billion for the construction of an Emergency Room (IGD) building and its equipment at the Siti Khodijah Islamic Hospital.

Apart from the construction of a sports hall and public facilities, PTBA also provided assistance in the form of providing fire fighting equipment worth Rp. 4.9 billion to the South Sumatra Civil Service Police Unit. Equipment consists of fire-fighting cars and vehicles, hoses and nozzles, jackets and helmets, among others.

There was also assistance in the form of procurement of street corridor lights, procurement of fire fighting equipment for Palembang City, and procurement of official vehicles.

PTBA Corporate Secretary Apollonius Andwie C explained that the Rp. 128 billion CSR program is a form of PTBA's commitment to building harmonious relationships in a sustainable environment and providing the widest possible benefits for the community.

South Sumatra Governor Herman Deru said that PTBA has had a big commitment and contribution to development in South Sumatra. "Hopefully it can continue in the future," he said. (dob/dob)

GOR tersebar di berbagai Kabupaten/Kota di Sumatra Selatan mulai dari; Kabupaten Empat Lawang, Kota Pagar Alam, Kabutapen OKU Timur, Kota Prabumulih, Kabupaten Ogan Ilir, Kabupaten Musi Rawas dan lainnya.

Dari dana CSR tersebut, PTBA meng-alokasikan Rp 4,82 miliar untuk memper-baiki fasilitas dan venue-venue olahraga di Jakabaring Sport City. Terdapat 5 venue yang diperbaiki yakni venue atletic, venue aquatic, venue tenis lapangan, GOR Ranau, dan shelter Jakabaring Sport City.

Di sektor fasilitas kesehatan, PTBA meng-alokasikan Rp 5 miliar untuk pem-bangunan gedung Instalasi Gawat Darurat (IGD) beserta peralatannya di RS Islam Siti Khodijah.

Selain pembangunan GOR dan fasilitas umum, PTBA juga memberikan bantuan berupa penyediaan set peralatan pemadam kebakaran senilai Rp 4,9 miliar kepada Satuan Polisi Pamong Praja Sumatra Selatan. Peralatan terdiri dari mobil dan kendaraan pemadaman, selang dan nozzle, jaket dan helm, serta lainnya.

Terdapat juga bantuan berupa pengadaan lampu koridor jalan, pengadaan peralatan pemadaman kebakaran untuk Kota Palembang, dan pengadaan kendaraan dinas.

Sekretaris Perusahaan PTBA Apollonius Andwie C menjelaskan program CSR senilai Rp 128 miliar ini merupakan wujud komitmen PTBA untuk membangun hubungan harmonis di tengah lingkungan yang lestari dan memberi manfaat seluas-luasnya untuk masyarakat.

Gubernur Sumatra Selatan Herman Deru mengatakan PTBA selama ini memiliki komitmen dan kontribusi yang besar untuk pembangunan di Sumatra Selatan. "Semoga dapat berlanjut ke depannya," ujarnya. (dob/dob)

IMA-Daily Update Page 18

Arutmin-Tanah Bumbu Regency Signed PPM Program

Cooperation

COAL mining company PT Arutmin

Indonesia Tambang Satui signed a joint agreement with the Tanah Bumbu Regency Government (Pemkab) on Monday (13/9).

The signing of the collaboration was carried out by the Head of Mining Engineering of PT Arutmin Indonesia Satui Mine Cipto Prayitno and the Regent of Tanah Bumbu H Sudian Noor.

The scope of this agreement covers Community Development and Empower-ment (PPM) in the fields of Education, Health, Economy and Socio-Culture.

Cipto Prayitno conveyed that this joint agreement was aimed at the interests of the community around the mine in Satui District so that it could improve the quality of education, health and community welfare and could encourage the realization of a more independent community economy in Satui.

On this occasion, the Regent of Tanah Bumbu also expressed his appreciation for PT Arutmin Indonesia Satui Mine through its PPM program. Where the community around the mine will receive training in the field of education so that it can improve the quality of human resources and can encourage the improvement of the economy of the community around the Satui mine.

"We will continue to evaluate this collective agreement so that it can provide benefits for the entire community," he concluded. (mat/ema)

Arutmin-Pemkab Tanbu Teken Kerjasama Program PPM

PERUSAHAAN pertambangan batu bara

PT Arutmin Indonesia Tambang Satui melakukan penandatanganan kesepakatan bersama dengan Pemerintah Kabupaten (Pemkab) Tanah Bumbu, Senin (13/9) tadi.

Penandatanganan kerjasama tersebut dilakukan oleh Kepala Teknik Tambang PT Arutmin Indonesia Tambang Satui Cipto Prayitno dan Bupati Tanah Bumbu H Sudian Noor.

Ruang lingkup perjanjian ini meliputi Pengembangan dan Pemberdayaan Masyarakat (PPM) dalam Bidang Pendidikan, Kesehatan, Ekonomi dan Sosial Budaya.

Cipto Prayitno meyampaikan, kesepakatan bersama ini bertujuan untuk kepentingan masyarakat lingkar tambang di Kecamatan Satui sehingga dapat meningkatkan kualitas pendidikan, kesehatan dan kesejahteraan masyarakat serta dapat mendorong terwujudnya perekonomian masyarakat yang lebih mandiri di Satui.

Dalam kesempatan ini juga Bupati Tanah Bumbu memberikan apresiasi terhadap PT Arutmin Indonesia Tambang Satui melalui program PPM-nya. Dimana masyarakat yang berada disekitar tambang nantinya akan mendapatkan pelatihan - pelatihan dalam bidang pendidikan sehingga dapat meningkatkan kualitas SDM serta dapat mendorong peningkatan perekonomian masyarakat di sekitar tambang Satui.

“Kami akan terus melakukan evaluasi dari kesepakatan bersama ini sehingga dapat memberi nilai manfaat bagi seluruh masyarakat,” tutupnya. (mat/ema)

IMA-Daily Update Page 19

Sihayo set to raise $40 million for Indonesian gold push Matt Birney

ASX-listed Indonesian gold hopeful, Sihayo Gold, is close to wrapping up a massive $40

million capital raise that will see it emerge debt-free and cashed up to fund an aggressive exploration program at its underexplored tenure in the world-class gold setting of North Sumatra. The cash injection will also allow the Brisbane-based company to step up plans for the potential US$144 million development of its namesake 1.5-million-ounce “starter” gold project.

The $40 million raise will be game changing for the $65 million market-capped Sihayo Gold.

It will give the ASX-listed junior deep enough pockets to bankroll a systematic exploration program at the Sihayo project in Indonesia, which will include testing of the exciting, drill-ready Hutabargot Julu prospect, and some early capital works at the advanced starter project.

Sihayo Gold has been buoyed by the recent issuing of an exploration forestry permit that clears the way for it to get the drill rods turning for the remainder of 2020, with an anticipated start date of as soon as next month. The company boasts an enviable land position under what is known as Indonesia’s “Seventh Generation Contract of Work” tenement system.

Total land held by Sihayo Gold in the project region is now 66,200 hectares. It comprises the Sihayo project area in the north block and Pungkut in the south block – with a multitude of gold prospects along the Sihayo gold belt straddling the auriferous Trans Sumatran fault strands.

The Sihayo gold belt, which hosts the Sihayo starter project gold resources, is a 15 km-long north-west-south-east-trending mineralised corridor of Permian calcareous volcano-sedimentary rocks and associated intrusions. The company says the rocks are highly prospective for sediment-hosted gold, epithermal gold-silver veins and porphyry-related gold and copper mineralisation.

Sporadic exploration undertaken over the past three decades by various parties identified numerous sediment-hosted gold, epithermal gold and potential porphyry-style copper-gold mineralised prospects within Sihayo Gold’s COW. Consequently, the company has a large pipeline of potential prospects including several “walk-up drill targets” which are yet to be tested.

Prime exploration gold targets the company has earmarked for drilling in the short term include along strike oxide mineralisation, near-mine extensions to the optimised pit shell for Sihayo and the epithermal gold-silver prospect, Hutabargot Julu, which the company says is potentially analogous to the multimillion-ounce Martabe gold and silver mine 75km north-west of the Sihayo project area.

Sihayo Gold recently appointed new Executive Chairman, Colin Moorhead, who has extensive experience in the Indonesian mining industry, to head up its operations. Fellow seasoned campaigners Rod Crowther, Gavin Caudle and Boyke Abidin join Moorhead on the board.

IMA-Daily Update Page 20

The company received a significant boost last week with confirmation it had received an exploration permit from the Indonesian Government, paving the way for the drill rigs to be mobilised.

Sihayo Gold already has an ace up its sleeve in the form of its 1.5Moz namesake project that has been the subject of a recently completed definitive feasibility study showing some very robust economics for a proposed gold operation.

The proposed Sihayo starter operation has an estimated CAPEX of US$144 million and, based on the DFS assumptions, is forecast to produce a total of 635,000 ounces of gold over an initial mine life of eight years.

Sihayo is also tipped to deliver an impressive EBITDA of US$746 million over that period – or $93 million a year on average – from projected gross sales of US$1.19 billion, assuming a gold price of $US1,890 an ounce over the life of mine. All-in sustaining costs have been estimated at just US$716/oz and the capital payback period at just over 2 years.

Latest stated JORC ore reserves at Sihayo stand at 12 million tonnes grading 2.1 grams per tonne gold for 840,000 ounces of contained gold within total mineral resources of 24Mt at 2.0 g/t for 1.5Moz of contained gold.

DFS figures are based on 100 per cent of the project, which is held under an Indonesian joint venture company, PT Sorikmas Mining, which in turn is 75 per cent owned by Sihayo Gold and 25 per cent owned by partly state-owned mining group, PT Aneka Tambang, with Sihayo Gold operating the project. Aneka Tambang has been loan carried since inception and is only entitled to 5 per cent of free cash from operations until debts are repaid, which means Sihayo will have 95 per cent of the free cash flows for the foreseeable future.

Sihayo lies south-east of and near the venerated Martabe mine, which has produced 1.9Moz of gold since 2012 and was purchased for a whopping US$1.2 billion by Indonesian interests two years ago. Martabe hosts estimated resources of 7.8Moz of gold and 64Moz of silver.

In the next 12 months or so, Sihayo Gold aims to get cracking on the early capital works at the Sihayo project including building site access roads and bridges in the forested terrain of the Barisan Mountains, final permitting approvals and detailed mine and tailings storage design.

Indonesian copper-gold miner, PT Merdeka Copper Gold, who was formed in 2015, will emerge as a strategic shareholder in Sihayo Gold at the conclusion of all elements of the capital raise next month.

PT Merdeka Copper Gold will have skin in the game on two fronts, both as a 7.1 per cent shareholder and as the contracted project developer of Sihayo through subsidiary PT Merdeka Mining Services, who managed the Sihayo exploration and resource definition drill-out process while PT Merdeka Copper Gold oversaw the DFS.

Moorhead, formerly Executive General Manager Minerals with Newcrest Mining and a former Chief Geologist at Newcrest’s Gosowong gold-silver mine in Indonesia, was the first Chief Executive Officer of PT Merdeka Copper Gold, a position he held until August 2018. He remained on the Merdeka board until July last year and is currently also the Non-Executive Chairman at Xanadu Mines and a Director of Aeris Resources and the unlisted Coda Minerals.

IMA-Daily Update Page 21

He led PT Merdeka Copper Gold through the US$137 million financing, building and commissioning of the very successful Tujuh Bukit gold-copper mine in East Java that poured first gold in 2017 and achieved payback in a stunning 12 months without serious safety or environmental incident.

PT Merdeka Copper Gold has a market cap of about US$3 billion and a track record of developing, operating and financing gold projects in Indonesia.

Other key shareholders who speak for about 63 per cent of Sihayo Gold’s stock – Provident Minerals, PT Saratoga Investama Sedaya, Goldstar Asia Mining Resources and Asian Metal Mining Developments – have also thrown their collective weight behind the company, participating in the non-renounceable entitlement offer component of the equity raising.

Sihayo Gold’s shareholders have deep regulatory and domestic relationships in Indonesia from many years of experience in obtaining mining permits throughout the country, something that cannot be overstated.

If Sihayo Gold can successfully navigate Indonesia’s approvals processes courtesy of its heavyweight board, the project looks well capable of doing all the talking from there.

All eyes will be on the initial set of results from drilling at Hutabargot Julu.

Copper’s outlook buoyant as demand increases By: Natasha Odendaal, Creamer Media Senior Deputy Editor

FITCH Solutions Country Risk and Industry Research has adjusted its 2020 copper price

forecast upwards from $5 900/t predicted in March to $6 000/t as demand is supported by the Chinese government’s stimulus and recovery in global economic activity.

In its outlook for copper prices update, the average price forecast for 2021 has also been raised to $6 300/t from $6 100/t.

However, some volatility in sentiment is still expected as investors react to the latest economic indicator releases, Covid-19 news and the upcoming US Presidential election outcome in November 2020, the group said in an update to the market.

Over the long term, the firm expects prices to remain elevated owing to persistent deficits in the copper market driven by increased demand from the power, construction and autos industries.

Fitch Solutions Country Risk and Industry Research’s bullish March forecast, on the back of an expectation for a strong rebound in Chinese demand owing to government stimulus, has “played out well” over the past six months.

While the country risk team continues to maintain the view that the global economic recovery will be bumpy and uneven, thus extending into 2021, Chinese stimulus alongside domestic industry activity will bolster copper demand over the next few quarters.

IMA-Daily Update Page 22

“China has substantially increased refined copper imports in order to keep up with demand from domestic industries,” Fitch Solutions Country Risk and Industry Research said, noting

that continued recovery in the global economy will also reinforce copper demand growth in 2021 as well as maintain a supportive environment for bullish sentiment in the market.

“We continue to expect concentrate production to ramp up over the coming quarter and

expect significant growth in copper mine output over 2021. Barring another round of lockdown measures, most copper mine operations will be able to produce at capacity.”

Further, new copper mining operations are starting to come on line, such as Freeport

McMoRan's Lone Star project in the US and BHP's Spence Growth Option in Chile, which will add additional supply to the market.

“As concentrate output increases, this will allow smelters to raise treatment charges, feeding into greater capacity use and higher refined output growth. Ultimately, we expect this trend

will be strongest in the back half of our forecast period,” the company noted.

Meanwhile, over the long term to 2029, Fitch Solutions Country Risk and Industry Research expects copper market to remain in a deficit as consumption growth remains strong, driving

prices higher over the coming years.

“The uptick in consumption will be led by copper's main end-use sectors of automotive, infrastructure and power,” the firm commented.

Overall, the average global copper consumption is forecast at a growth of 2.2%, outpacing the average production growth of 1.7% year-on-year over the period from 2021 to 2025.

“We expect China will retain its position as the top driver of consumption growth over our

forecast period, constituting approximately 52% to 53% of global consumption, as the country's expanding power and construction sectors will offer further support to copper

demand.”

Nonetheless, we expect rising mineral production from new mining projects to feed into greater refined production growth, relieving tightness in the market over the coming decade.

However, volatility in the short term will primarily stem from the US presidential election which could unnerve some investors depending on the outcome, while the possibility of

increased tensions between the US and China ahead of the elections could also weigh on investor sentiment, cooling down the price rally ahead.

Copper demand could also be undermined in a worst case scenario where a second wave of

coronavirus infections leads to the re-imposition of lockdown measures.

“Should this happen again on a broad scale in a key consuming market such as China, we would expect a significant contraction in copper demand placing downward pressure on

prices once more,” it concluded.

IMA-Daily Update Page 23

World’s gold miners wary of production ramp-up despite price surge Reuters

THE WORLD’s top gold miners are retrenching after covid-19 related shutdowns despite

record prices for the yellow metal, with cost-conscious executives prioritizing investor returns over production growth.

Gold prices have jumped 30% this year to roughly $2,000 an ounce as central banks dial-up stimulus measures in response to the coronavirus pandemic.

That has fuelled a cash surge for miners, with top- and mid-tier producers holding roughly $5 billion in cash as of June 30, according to Scotiabank estimates.

But interviews with executives, analysts and fund managers show miners are hesitant to spend on pricey projects and tap marginal deposits that require sizeable capital and take

years to break even.

Seven out of 10 of the global gold miners, including Newmont , the world’s biggest gold miner,

Canada’s Barrick and South Africa’s Gold Fields, have cut planned output for the year by 7%, citing coronavirus-related shutdowns, regulatory filings show.

The caution is a reversal from the 2011 gold price boom, which prompted buyers to overspend on acquisitions and led to billions in impairments when prices crashed in

subsequent years.

Companies which have won back investor favor are fearful of making similar mistakes.

“The real trap in the gold industry in the past was chasing volume,” Newmont Chief Executive Officer Tom Palmer told Reuters.

Newmont’s budget this year is $1.3 billion, about half levels seen in the previous cycle.

Gold Fields said it wasn’t rushing to change cut-off grades, the minimum grade that can be

economically mined, despite the higher price.

“It’s not easy to just turn the ship in a different direction,” Gold Fields CEO Nick Holland told

Reuters, referring to boosting output with the higher price.

Barrick’s long-term price assumption remains unchanged at $1,200, underpinning a growing

dividend and debt reduction, CEO Mark Bristow said.

“No one made any real money” in the last cycle, he said at the Mines and Money Online

Connect virtual conference last week.

Growth vs returns

The spot price of gold has climbed more than 500% over the last 20 years, according to Refinitiv data. Global gold output, including from mines and recycling, rose 22%, according to

World Gold Council data.

IMA-Daily Update Page 24

Miners have hiked dividends on the back of those stronger prices, with Barrick raising its quarterly payout 14% last month and Newmont boosting its payout 79% in April. Scotiabank analysts expect the industry’s dividend growth to continue into 2021.

“Companies still need to take a very conservative approach,” said Joe Foster of Van Eck Associates Corp, which holds shares in Barrick and Newmont and expects gold prices to eventually hit $3,000.

Investors have even threatened to dump shares of companies that don’t prioritize payouts.

“If we get to the point where growth versus returns becomes a decision point, we’ll back the companies paying returns,” said Mark Burridge at Baker Steel Capital Managers, which hold shares in Kirkland Lake Gold, Kinross Gold and others.

(By Jeff Lewis, Arunima Kumar and Tanisha Heiberg; Editing by Ernest Scheyder and Alistair Bell)

South African mining production falls 9.1% year-on-year JP Casey

STATISTICS South Africa has announced that the country’s mining production fell 9.1% in

July this year, compared to 2019, with a 44.9% collapse in “other non-metallic minerals,” those excluding coal and gold, underlining the decline.

The sector has struggled this year, with the Covid-19 pandemic and resulting lockdown measures disrupting many traditional working habits in the mining industry, resulting in five consecutive months of declining production. In July, Minerals Council CEO Roger Baxter claimed that the pandemic could trigger a decline in total mining output of up to 25%, significantly more than the 10% fall he predicted in May, reflecting an increasingly pessimistic outlook within South African mining.

However, Statistics South Africa reported a number of positive results, which could trigger optimism in the sector’s long-term future. While production fell year-on-year, seasonally-adjusted mining production actually increased by 20.2% between June and July this year, with total mineral sales increasing by 11.3% year-on-year in July. This was driven in part by a 40.9% increase in sales of “other non-metallic minerals,” suggesting that a decline in mineral production does not necessarily lead to a decline in sales, and therefore does not pose a risk to the entire mining supply chain at large.

Indeed, some within the sector are viewing the pandemic as an opportunity to improve operational efficiency and change working habits within mining. South African eLearning company New Leaf Technologies has highlighted the potential for the industry to move away from what it calls “traditional facilitator-led ‘classroom’-style training”. The company’s solution, a learning management system which can be tailored to individual companies and accessed by employees remotely, aims to be a more personalised and digitised approach than traditional methods of training, which is more suitable for remote learning.

IMA-Daily Update Page 25

“While mining is a highly mechanical process, it’s also been heavily impacted by global digitisation,” said New Leaf managing director Mike Hanly of the potential for a change in mining education. “The quality of courseware and how it’s shared through eLearning can address many of these skills gaps, and retain staff rather than lose them.

“Courseware needs to grab attention, but also must be aligned with the company’s needs,” Hanly continued. “It should be guiding in nature too, providing support to learners who may grapple with difficult concepts. To break the monotony, allowing learners to provide feedback is also a great way to retain their interest, and measure effectiveness.”

Furthermore, some of the country’s largest miners have been engaging in more collaborative projects as the pandemic has triggered economic uncertainty in the country , with many concluding that working together to ensure the long-term viability of the industry is a necessary precursor to continued individual growth.

10 Biggest Mining Companies GLNCY, BHP, and RIO lead the 10 biggest mining companies list

By Matthew Johnston

THE MINING industry is comprised of companies that explore and mine for precious and

nonprecious metals and minerals, as well as energy commodities like coal and petroleum. They are used in the manufacturing of a broad range of industrial products, capital goods, and consumer items including machines, computers, clothing, buildings, and automobiles. Some companies in the mining sector even produce agricultural commodities. Mining is a global industry, but five of the largest companies are headquartered in China, the world's second-largest economy. Other big mining names are based in the U.K., Switzerland, Australia, and Brazil.

Below we look at the 10 biggest mining companies by 12-month trailing (TTM) revenue. Some companies outside the U.S. report profits semi-annually instead of quarterly, so the 12-month trailing data may be older than it is for companies that report quarterly. Data is courtesy of YCharts.com, unless otherwise noted.[1] All figures are as of September 11.

This list is limited to companies that are publicly traded in the U.S. or Canada, either directly or through ADRs. However, we note that two of these companies trade at such low volumes that they should be avoided even though they have publicly listed ADRs: Jiangxi Copper Co. Ltd. (600362) and Yanzhou Coal Mining Co. Ltd. (600188). Due to their size and importance they have been included on the list, but with the ticker symbol associated with their respective listings on the Shanghai Stock Exchange (SSE).

#1 Glencore PLC (GLNCY)

Revenue (TTM): $178.6 billion

Net Income (TTM): -$3.2 billion

Market Cap: $30.7 billion

IMA-Daily Update Page 26

1-Year Trailing Total Return: -27.9%

Exchange: OTC

Glencore is a Switzerland-based multinational commodity trading and mining company. It produces metal, mineral, energy, and agricultural commodities. The company serves the automotive, steel, power generation, battery manufacturing, and oil sectors globally.

#2 BHP Group Ltd. (BHP)

Revenue (TTM): $42.9 billion

Net Income (TTM): $8.0 billion

Market Cap: $137.2 billion

1-Year Trailing Total Return: 9.9%

Exchange: New York Stock Exchange

BHP is an Australia-based international resources company. It explores and mines minerals, including coal, iron ore, gold, titanium, ferroalloys, nickel, and copper properties. It also offers petroleum exploration, production, and refining services. The company serves customers worldwide.

#3 Rio Tinto PLC (RIO)

Revenue (TTM): $41.8 billion

Net Income (TTM): $7.2 billion

Market Cap: $79.8 billion

1-Year Trailing Total Return: 21.0%

Exchange: New York Stock Exchange

Rio Tinto is a U.K.-based multinational metals and mining company. It explores and mines for aluminum, borax, coal, copper, gold, iron ore, lead, silver, tin, uranium, zinc, titanium dioxide feedstock, diamonds, talc, and zircon. The company serves customers in various industries worldwide.

#4 Jiangxi Copper Co. Ltd. (600362)

Revenue (TTM): $40.1 billion

Net Income (TTM): $271.4 million

Market Cap: $7.7 billion (RMB¥52.5 billion)

1-Year Trailing Total Return: 2.9%

Exchange: Shanghai Stock Exchange

Jiangxi Copper is a China-based copper mining company. It engages in the extraction and processing of precious and scattered metal, as well as sulphuric chemistry. The company's products include copper cathode, gold, silver, sulphuric acid, copper rod, copper tube, and copper foil.

#5 Vale SA (VALE)

Revenue (TTM): $34.7 billion

Net Income (TTM): $1.3 billion

Market Cap: $59.9 billion

IMA-Daily Update Page 27

1-Year Trailing Total Return: -3.7%

Exchange: New York Stock Exchange

Vale is a Brazil-based multinational mining company. It produces iron ore, pellets, manganese, iron alloys, gold, nickel, copper, bauxite, alumina, aluminum, potash, and coal. The company also owns and operates railroads and maritime terminals. The company operates in approximately 30 different countries.

#6 China Shenhua Energy Co. Ltd. (CSUAY)

Revenue (TTM): $32.8 billion

Net Income (TTM): $5.6 billion

Market Cap: $33.4 billion

1-Year Trailing Total Return: -10.8%

Exchange: OTC

China Shenhua is a China-based producer of coal and electricity. The company operates coal mines, produces various coal products, and generates power and electricity. It also operates transportation railways for coal and non-coal commodities, and provides logistics and vessels for coal and non-coal cargo.

#7 Yanzhou Coal Mining Co. Ltd. (600188)

Revenue (TTM): $29.0 billion

Net Income (TTM): $1.1 billion

Market Cap: $6.5 billion (RMB¥44.4 billion)

1-Year Trailing Total Return: -19.3%

Exchange: Shanghai Stock Exchange

Yanzhou is a China-based coal mining company and produces a broad range of products ranging from fine coal to power coal. The company also manufactures coal mining and excavating equipment, and operates power generation, railway transport, and heating businesses.

#8 Anglo American PLC (NGLOY)

Revenue (TTM): $27.6 billion

Net Income (TTM): $2.1 billion

Market Cap: $34.1 billion

1-Year Trailing Total Return: 7.3%

Exchange: OTC

Anglo American is a U.K.-based mining company. It engages in the exploration and mining of precious metals, base metals, and ferrous metals. The company produces iron ore, manganese, metallurgical coal, copper, nickel, platinum, and diamonds. It has operations throughout the world.

#9 Aluminum Corporation of China Ltd. (ACH)

Revenue (TTM): $27.4 billion

Net Income (TTM): $124.1 million

IMA-Daily Update Page 28

Market Cap: $4.0 billion

1-Year Trailing Total Return: -28.5%

Exchange: New York Stock Exchange

Aluminum Corporation of China is a China-based manufacturer of aluminum products. The company produces aluminum ores, aluminum, bauxite, coal, and other products. It also operates an energy segment that engages in power generation, including conventional coal-fire power generation and renewable energy generation such as wind power and photovoltaic power.

#10 Zijin Mining Group Co. Ltd. (ZIJMF)

Revenue (TTM): $21.6 billion

Net Income (TTM): $689.5 million

Market Cap: $18.5 billion

1-Year Trailing Total Return: 108.9%

Exchange: OTC

Zijin Mining is a China-based multinational mining company. It engages in the exploration, mining, and smelting processing of gold, copper, zinc, and other metal mineral resources. The company also conducts metal trading and investment businesses globally.

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