IMA-Daily Update Page 1

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Freeport Indonesia Recorded Positive Performance Trends During the Second Quarter of 2020 Freeport Indonesia catat tren kinerja positif selama kuartal II 2020 PT Bukit Asam's Net Profit Corrected 35.82% Laba Bersih PT Bukit Asam Terkoreksi 35,82% Positive Signals, October Reference Coal Prices Reach US$ 51 Per Ton Sinyal Positif, Harga Batu Bara Acuan Oktober Tembus US$51 Per Ton Bumi Resources (BUMI) coal production per August reached 6.9 million tonnes Produksi batubara Bumi Resources (BUMI) per Agustus mencapai 6,9 juta ton PT Timah Wins the 2020 Mineral and Coal Conservation Management Trophy PT Timah Raih Trofi Pengelolaan Konservasi Mineral dan Batu Bara 2020 Bukit Asam looks to develop solar panels, downstream industries Smelter in Morowali Profitable, Why is Copper Smelter Losing? Tony: Different Boss, It's Nickel! Smelter di Morowali untung, kenapa smelter tembaga rugi? Tony: Beda bos, itu nikel! Underground Gold Mine in Dompu, STM Allowed to Use Protected Forest Areas Tambang Emas Bawah Tanah di Dompu, STM Diperbolehkan Gunakan Kawasan Hutan Lindung PTBA Received 5 Awards from IAGI Explorations Awards 2020 PTBA Borong 5 Penghargaan IAGI Explorations Awards 2020 The Grasberg Open Pit runs out, Freeport has prepared Rp6 trillion for the closure of all mines Grasberg Open Pit habis, Freeport siapkan Rp 6 triliun untuk

Kontan Neraca Bisnis Kontan Investor Daily The Jakarta Post Kontan Suara NTB CNBC Indonesia Kontan

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menutup seluruh tambang Copper price in biggest drop since height of pandemic China's glory days for coal are gone, Treasury tips India to boom Coal India production increases by 31.6% at 40.51 MT in September Ukrainian miners produced 2.6M tonnes of coal in September Weekly US coal production totals 10.2 million st, dropping to 10-week low: EIA

Mining.com IN-Queenlands Business Standard Ukrinform S&P Global Platts

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IMA-Daily Update Page 3

Freeport Indonesia Recorded Positive Performance Trends

During the Second Quarter of 2020 Reporter: Dimas Andi | Editor: Noverius

Laoli

PT FREEPORT Indonesia (PTFI) recorded

a positive performance trend during the second quarter of 2020 even though the world was being hit by the Covid-19 pandemic which also affected mining commodity prices.

Quoting material data from the Mining Industry Indonesia (MIND ID) exposure, as of June 30, 2020 Freeport generated revenues of US$ 1.16 billion. When viewed on a monthly basis, Freeport's revenue is experiencing an upward trend.

It is recorded that in April 2020 Freeport generated revenues of US$ 144 million. Then, in May 2020 Freeport's income increased to US$ 258 million and again increased to US$ 316 million in June 2020.

Meanwhile, Freeport's net profit was at the level of US$ 94 million at the end of semester I-2020. During the second quarter of 2020, Freeport's net profit varied. Starting from April 2020, Freeport earned a net profit of US$ 25 million which then decreased to US$ 7 million in May 2020. However, Freeport's net profit increased again to US$ 93 million in June 2020.

In terms of operational performance, Freeport is able to produce copper as much as 321 million pounds by the end of semester I-2020.

Freeport's copper production trend increased during the second quarter. Starting from April 2020,...

Freeport Indonesia catat tren kinerja positif selama kuartal II

2020 Reporter: Dimas Andi | Editor: Noverius

Laoli

PT FREEPORT Indonesia (PTFI) men-catatkan tren kinerja yang positif selama kuartal II-2020 meskipun dunia sedang dilanda pandemi Covid-19 yang turut ber-pengaruh pada harga komoditas tambang.

Mengutip data materi paparan Mining Industry Indonesia (MIND ID), per 30 Juni 2020 Freeport mencetak pendapatan sebesar US$ 1,16 miliar. Bila dilihat secara bulanan, pendapatan Freeport mengalami tren kenaikan.

Tercatat, di bulan April 2020 Freeport meraup pendapatan sebesar US$ 144 juta. Kemudian, di bulan Mei 2020 pendapatan Freeport naik menjadi US$ 258 juta dan kembali meningkat jadi US$ 316 juta di bulan Juni 2020.

Sementara itu, laba bersih Freeport berada di level US$ 94 juta per akhir semester I-2020. Sepanjang kuartal II-2020, laba bersih Freeport bergerak variatif. Mulai dari bulan April 2020, Freeport meraih laba bersih sebesar US$ 25 juta yang kemudian turun menjadi US$ 7 juta di bulan Mei 2020. Namun, laba bersih Freeport kembali melonjak jadi US$ 93 juta di bulan Juni 2020.

Dari sisi kinerja operasional, Freeport mampu memproduksi tembaga sebanyak 321 juta pound hingga akhir semester I-2020.

Tren produksi tembaga Freeport me-ningkat selama kuartal kedua lalu. Dimulai dari bulan April 2020...

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Starting from April 2020, when Freeport produced 51 million pounds of copper, in May 2020 Freeport's copper production increased to 58 million pounds, and in June 2020 the company produced 73 million pounds of copper.

Freeport's copper sales trend is also strong in the second quarter of 2020. In April 2020, Freeport sold 35 million pounds of copper, May 2020 sold 65 million pounds of copper, and June 2020 sold 72 million pounds of copper. On a year to date basis, Freeport's copper sales reached 299 million pounds at the end of the first semester.

For gold commodities, Freeport is able to produce as much as 340,000 ounces of gold by the end of semester I-20020. When detailed during the second quarter of 2020, Freeport produced 55,000 ounces of gold in April 2020, 63,000 ounces in May 2020, and 71,000 ounces in June 2020.

Freeport gold sales in April 2020 were recorded at 37,000 ounces, in May 2020 at 70,000 ounces, and in June 2020 at 73,000 ounces. As a result, on a year-to-date basis up to the first semester Freeport's gold sales reached 319,000 ounces.

President Director of MIND ID, Orias Petrus Moedak, said that Freeport's performance was actually inseparable from the movement of commodity prices. Although some commodity prices have experienced a downward trend, several other commodities have shown an increasing trend amid the Covid-19 pandemic. One of them is the global gold price.

"The exception occurred in the gold price, which increased 25% in the first semester when compared to the position at the end of last year," he said at the Hearing Meeting (RDP) at Commission VI DPR RI, Tuesday (29/9).

Dimulai dari bulan April 2020 tatkala Freeport memproduksi 51 juta pound tembaga, bulan Mei 2020 produksi tembaga Freeport naik jadi 58 juta pound, dan bulan Juni 2020 perusahaan ini mem-produksi tembaga sebanyak 73 juta pound.

Tren penjualan tembaga Freeport juga ciamik di kuartal II-2020. Bulan April 2020, Freeport menjual 35 juta pound tembaga, Mei 2020 menjual 65 juta pound tembaga, dan Juni 2020 menjual 72 juta pound tembaga. Secara year to date, penjualan tembaga Freeport telah men-capai 299 juta pound di akhir semester pertama lalu.

Untuk komoditas emas, Freeport sanggup memproduksi emas sebanyak 340.000 ounce hingga akhir semester I-20020. Bila dirinci selama kuartal II-2020, Freeport memproduksi emas sebanyak 55.000 ounce di bulan April 2020, 63.000 ounce di bulan Mei 2020, dan 71.000 ounce di bulan Juni 2020.

Penjualan emas Freeport di bulan April 2020 tercatat sebesar 37.000 ounce, di bulan Mei 2020 sebesar 70.000 ounce, dan di bulan Juni 2020 sebesar 73.000 ounce. Alhasil , secara year to date hingga semester satu lalu penjualan emas Freeport mencapai 319.000 ounce.

Direktur Utama MIND ID, Orias Petrus Moedak, mengatakan, kinerja Freeport sejatinya tak lepas dari pergerakan harga komoditas. Meski sebagian harga komo-ditas mengalami tren penurunan, namun beberapa komoditas lain justru me-nunjukkan tren peningkatan di tengah pandemi Covid-19. Salah satunya adalah harga emas global.

“Pengecualian terjadi pada harga emas yang meningkat 25% di semester pertama bila dibandingkan posisi akhir tahun lalu,” ujar dia dalam Rapat Dengar Pendapat (RDP) di Komisi VI DPR RI, Selasa (29/9).

IMA-Daily Update Page 5

According to him, the increase in gold prices was the result of the high demand for safe haven assets during the uncertainty during the Corona pandemic.

Orias believes that the performance of MIND ID's subsidiaries, including Freeport, can improve again in the remainder of this year as the prices of a number of global mining commodities recover.

MIND ID has also gathered all subsidiary entities to discuss tests of the company's worst conditions or stress tests when facing the Covid-19 pandemic. This discussion also involves the Ministry of SOE.

From there, Orias emphasized the importance of efficiency in all lines of business of each MIND ID subsidiary without having to carry out a termination policy (PHK) for employees. "There are no layoffs. That's the last choice," he said.

Menurutnya, kenaikan harga emas ter-sebut merupakan imbas tingginya per-

mintaan terhadap aset safe haven selama ketidakpastian di masa pandemi Corona.

Orias yakin, kinerja anak-anak perusahaan MIND ID, termasuk Freeport, bisa kembali

membaik di sisa tahun ini seiring pulihnya harga sejumlah komoditas tambang global.

Pihak MIND ID pun telah mengumpulkan seluruh entitas anak perusahaan untuk

membahas uji kondisi terburuk per-usahaan atau stress test saat menghadapi

pandemi Covid-19. Pembahasan ini juga melibatkan Kementerian BUMN.

Dari situ, Orias menekankan pentingnya efisiensi di segala lini bisnis tiap anak

usaha MIND ID tanpa harus melakukan kebijakan pemutusan hubungan kerja

(PHK) kepada para karyawan. “Tidak ada PHK. Itu pilihan paling akhir,” tandasnya.

PT Bukit Asam's Net Profit Corrected 35.82%

By: Ahmad Nabhani

IN THE first semester of 2020, PT Bukit

Asam Tbk (PTBA) recorded a net profit of

IDR 1.28 trillion or a correction of 35.82% compared to the same period last year,

which recorded a net profit of Rp 2.008 trillion. This information was conveyed by

the company in its financial report published in Jakarta yesterday.

Meanwhile, the mining issuer's total revenue in the first half of 2020 was Rp

9.012 trillion, a 15.06% decline compared to the end of June 2019 which was

recorded at Rp 10.61 trillion. However,...

Laba Bersih PT Bukit Asam Terkoreksi 35,82%

Oleh: Ahmad Nabhani

DI semester pertama 2020, PT Bukit Asam

Tbk (PTBA) mencatatkan laba bersih sebesar Rp1,28 triliun atau terkoreksi 35,82% dibanding periode yang sama tahun lalu mencatatkan bersih sebesar Rp2,008 tril iun. Informasi tersebut disampaikan perseroan dalam laporan keuangan yang dipublikasikan di Jakarta, kemarin.

Sementara total pendapatan emiten pertambangan ini pada semester pertama tahun 2020 sebesar Rp9,012 triliun, merosot 15,06% dibanding akhir Juni 2019 yang tercatat sebesar Rp10,61 triliun.

IMA-Daily Update Page 6

However, the cost of revenue was recorded at Rp 6.46 trillion or decreased by 7.12%. compared to the first semester of 2019, which was recorded at Rp.6.95 trillion.

In addition, on the equity side, it was recorded at Rp 15.96 trillion, down 13.33% compared to the end of 2019, which was recorded at Rp 18.42 trillion. Meanwhile, the company's liabilities were recorded at Rp 10.92 trillion or an increase of 42.34% compared to the end of 2019, which was recorded at Rp7.67 trillion. The company's assets were recorded at Rp 26.89 trillion or grew by 3.044% compared to the end of 2019, which was recorded at Rp 26.09 trillion.

Then the net cash obtained from operating activities was recorded at Rp. 2.23 trillion or a growth of 3.59% compared to the first semester of 2019 which was recorded at Rp. 2.15 trillion. Previously, the company revised its production target this year. The mining issuer has cut its coal production target, which was initially set at 29.9 million tons to 25.5 million tons.

PTBA Finance Director Mega Satria once said that the adjustment to the performance target was made in response to the impact of the Covid-19 pandemic. According to Mega, adjustments need to be made because of the decline in demand for both the export and domestic markets. "The implementation of lockdowns in a number of countries has had a significant impact on demand in the export market," he said.

Mega said, currently there are several things that are the priority of the Company in dealing with this pandemic condition. The company is currently prioritizing to emphasize cost efficiency on all fronts. "We are reviewing the potential for cost reduction, both from the tariff value and from the work pattern and process," explained Mega.

Tapi beban pokok pendapatan tercatat sebesar Rp6,46 triliun atau turun 7,12% dibanding semester I 2019, yang tercatat sebesar Rp6,95 triliun.

Selain itu, pada sisi ekuitas tercatat senilai Rp15,96 tril iun atau turun 13,33% dibanding akhir tahun 2019, yang tercatat sebesar Rp18,42 triliun. Sementara itu, kewajiban perseroan tercatat sebesar Rp10,92 triliun atau mengalami pening-katan 42,34% dibanding akhir tahun 2019, yang tercatat sebesar Rp7,67 triliun. Adapun aset perseroan tercatat senilai Rp26,89 triliun atau tumbuh 3,044% di-banding akhir tahun 2019, yang tercatat senilai Rp26,09 triliun.

Kemudian kas bersih diperoleh dari aktivitas operasi tercatat Rp2,23 triliun atau tumbuh 3,59% dibandingkan semester pertama 2019 yang tercatat Rp2,15 triliun. Sebelumnya, perseroan merevisi target produksinya pada tahun ini. Emiten tambang tersebut memangkas target produksi batu bara yang awalnya dipatok sebesar 29,9 juta ton menjadi 25,5 juta ton.

Direktur Keuangan PTBA, Mega Satria pernah bilang, penyesuaian target kinerja tersebut dilakukan karena merespons dampak dari pandemi Covid-19. Menurut Mega, penyesuaian perlu dilakukan karena terjadinya penurunan permintaan baik untuk pasar ekspor dan domestik. "Penerapan lockdown di sejumlah negara sangat berdampak terhadap permintaan di pasar ekspor," ujarnya.

Mega mengatakan, saat ini terdapat beberapa hal yang menjadi prioritas Perseroan dalam menghadapi kondisi pandemi ini. Perseroan saat ini lebih mem-prioritaskan untuk menekankan efisiensi biaya di semua lini. "Kami meninjau ulang potensi-potensi penurunan biaya baik dari nilai tarif maupun dari pola kerja dan prosesnya," terang Mega.

IMA-Daily Update Page 7

Mega added that the company is also making improvements in terms of the production

process. In addition, the company continues to make efforts to expand its market,

especially for the export market. From the domestic market, Mega said, the Company

still has long-term contracts with the State Electricity Company (PLN) and several other

companies. "We also continue to enter several new buyers in Indonesia," said Mega.

Mega said that the company is currently

watching the development of several countries to increase exports, especially in

India and China, which are the largest coal importers. In addition, the Company will try

to enter new markets such as Brunei Darussalam, Australia and Vietnam.

Mega menambahkan, perseroan juga melakukan perbaikan-perbaikan dari sisi proses produksi. Di samping itu, perseroan terus melakukan upaya perluasan pasar khususnya untuk pasar ekspor. Dari pasar domestik, Mega menuturkan, Perseroan masih memiliki kontrak panjag dengan Perusahaan Listrik Negara (PLN) serta beberapa perusahaan lainnya. "Kami juga terus masuk ke beberapa buyer baru yang ada di Indonesia," kata Mega.

Mega mengatakan, perseroan saat ini sedang mencermati perkembangan bebe-rapa negara untuk meningkatkan ekspor, khususnya di India dan China yang merupakan importir batu bara terbesar. Selain itu, Perseroan akan berupaya masuk ke pasar baru seperti Brunei Darussalam, Australia, dan Vietnam.

Positive Signals, October Reference Coal Prices Reach

US$51 Per Ton Denis Riantiza Meilanova

THE BENCHMARK coal price for October

2020 increased by 3.2 percent compared to the HBA in September 2020.

After falling in September to US$ 49.42 per ton, this month the HBA is set at US$ 51 per ton.

"The positive indication of the emerging industry in China and Japan is driving up the HBA in October 2020. The demand for coal from China is increasing because China's domestic coal prices are higher than imported coal prices," said Head of the Communications Bureau, Public Information Services and Cooperation of the Ministry of EMR Agung Pribadi through a press release, Thursday (1/10/2020).

Sinyal Positif, Harga Batu Bara Acuan Oktober Tembus US$51

Per Ton Denis Riantiza Meilanova

HARGA batu bara acuan Oktober 2020

mengalami kenaikan sebesar 3,2 persen dibandingkan dengan HBA September 2020.

Setelah sempat turun pada September menjadi US$49,42 per ton, bulan ini HBA ditetapkan sebesar US$51 per ton.

"Sinyalemen positif industri yang mulai bangkit di Tiongkok [China] dan Jepang mengerek kenaikan HBA Oktober 2020. Permintaan batu bara dari Tiongkok meningkat karena harga batu bara domestik Tiongkok lebih tinggi daripada harga batu bara impor," ujar Kepala Biro Komunikasi, Layanan Informasi Publik dan Kerja Sama Kementerian ESDM Agung Pribadi melalui siaran pers, Kamis (1/10/2020).

IMA-Daily Update Page 8

Agung added that the recovery of the

Japanese steel and automotive industries

has also contributed to increasing global

coal demand.

The increase in demand for coal in several

countries led to an increase in the average

monthly index for the compiler of the HBA,

namely ICI up 0.53 percent, Platt's up 0.12

percent, GCNC up 6.29 percent, and NEX up

6.01 percent.

Since Covid-19 was declared a global

pandemic, HBA had strengthened by 0.28

percent to US$ 67.08 per ton in March

2020 compared to February 2020 which

was pegged at US$ 66.89 per ton.

Then, the HBA continued to weaken to US$

65.77 per ton in April and US$ 61.11 per

ton in May. Furthermore, in June 2020,

HBA fell to US$ 52.98 per ton, July US$

52.16 per ton, and August US$ 50.34 per

ton.

HBA is obtained from the average index of

Indonesia Coal Index (ICI), Newcastle

Export Index (NEX), Globalcoal Newcastle

Index (GCNC), and Platts 5900 in the

previous month. The equivalent quality of

calories is 6322 kcal per kilogram of GAR

(gross air received).

Later, this reference price will be used

directly in the sale and purchase of coal

commodities (spot) for one month at the

point of delivery of free on board sales on a

carrier vessel (FOB vessel). Editor: Zufrizal

Agung menambahkan bahwa mulai

pulihnya industri baja dan otomotif Jepang

ikut meningkatkan permintaan batu bara

global.

Naiknya permintaan batu bara di beberapa

negara menyebabkan naiknya rata-rata

indeks bulanan penyusun HBA, yaitu ICI

naik 0,53 persen, Platt's naik 0,12 persen,

GCNC naik 6,29 persen, dan NEX naik 6,01

persen.

Semenjak Covid-19 ditetapkan sebagai

pandemi global, HBA sempat menguat

sebesar 0,28 persen ke angka US$67,08 per

ton pada Maret 2020 di bandingkan

Februari 2020 yang dipatok US$66,89 per

ton.

Kemudian, HBA terus mengalami pele-

mahan ke angka US$65,77 per ton pada

April dan US$61,11 per ton pada Mei.

Selanjutnya, pada Juni 2020, HBA turun ke

angka US$52,98 per ton, Juli US$52,16 per

ton, dan Agustus US$50,34 per ton.

HBA diperoleh dari rata-rata indeks

Indonesia Coal Index (ICI), Newcastle

Export Index (NEX), Globalcoal Newcastle

Index (GCNC), dan Platts 5900 pada bulan

sebelumnya. Kualitas yang disetarakan

pada kalori 6322 kcal per kilogram GAR

(gross air received).

Nantinya, harga acuan ini akan digunakan

secara langsung dalam jual beli komoditas

batu bara (spot) selama satu bulan pada

titik serah penjualan secara free on board

di atas kapal pengangkut (FOB vessel).

Editor : Zufrizal

IMA-Daily Update Page 9

Bumi Resources (BUMI) coal production per August reached

6.9 million tonnes Reporter: Akhmad Suryahadi | Editor:

Noverius Laoli

THE REALIZATION of PT Bumi Resources

Tbk (BUMI) coal production reached 6.9 million tonnes as of August 2020.

Bumi Resources Director and Company Secretary Dileep Srivastava said this realization increased by 1 million tons compared to July 2020's production of only 5.9 million tons.

Dileep detailed that coal mined through its subsidiary, PT Kaltim Prima Coal (KPC) increased to 5.3 million tons in August (from 4.9 million tons in July), while PT Arutmin's coal mine production increased to 1.6. million tonnes in the August period (compared to 1.0 million tonnes in the July period).

"This is mainly due to less rainfall at the two mine sites compared to July," said Dileep, Wednesday (30/9).

However, BUMI recorded a decrease in sales volume in the August 2020 period. It was noted, BUMI's sales volume was 200,000 tons lower to 6.2 million tons (compared to 6.4 million tons in the previous month period), which was due to factors of delivery schedules.

In detail, Dileep explained that KPC sold 5.0 million tons of coal in August, down from 5.2 million tons in July 2020. Meanwhile, PT Arutmin's sales were the same as for the July 2020 period, namely at 1.2 million tons.

Produksi batubara Bumi Resources (BUMI) per Agustus

mencapai 6,9 juta ton Reporter: Akhmad Suryahadi | Editor:

Noverius Laoli

REALISASI produksi batubara PT Bumi

Resources Tbk (BUMI) mencapai 6,9 juta ton per Agustus 2020.

Direktur dan Sekretaris Perusahan Bumi Resources Dileep Srivastava mengatakan, realisasi ini naik 1 juta ton dibandingkan produksi Juli 2020 yang hanya 5,9 juta ton.

Dileep merinci, batubara yang ditambang melalui anak usahanya, yakni PT Kaltim Prima Coal (KPC) meningkat menjadi 5,3 juta ton pada bulan Agustus (dari 4,9 juta ton pada Juli), sementara produksi tambang batubara PT Arutmin meningka menjadi 1,6 juta ton pada periode Agustus (dibandingkan dengan 1,0 juta ton pada periode Juli).

“Hal ini terutama disebabkan oleh curah hujan yang lebih sedikit di kedua lokasi tambang dibandingkan dengan bulan Juli,” terang Dileep, Rabu (30/9).

Meski demikian, BUMI mencatatkan penurunan volume penjualan di periode Agustus 2020. Tercatat, volume penjualan BUMI lebih rendah 200.000 ton menjadi 6,2 juta ton (dibandingkan 6,4 juta ton pada periode bulan sebelumnya), yang disebabkan karena faktor jadwal pengiriman.

Secara rinci, Dileep menjabarkan KPC menjual 5,0 juta ton batubara pada Agustus, turun dari 5,2 juta ton pada Juli 2020. Sementara penjualan PT Arutmin sama dengan periode Juli 2020, yakni di angka 1.2 juta ton.

IMA-Daily Update Page 10

The realized price in August was at US$ 43.55 per ton, up from the realized price in July 2020 which was only US$ 42.61. KPC's realized price fell to US$ 44.24 per ton (US$ 44.52 per ton in July).

But on the other hand, the average Arutmin price rose to US$ 40.59 per ton (up from US$ 34.38 per ton in July). This is due to the higher average grade of coal sold in August, namely 5.012 gross air-received (GAR) versus 4,632 GAR in July 2020.

Meanwhile, the overall cost in August was slightly lower than that of July, which was US$ 32.3 per tonne. In detail, the cost at KPC fell to US$ 33.1 per tonne and Arutmin decreased to US$ 29.7 tonne in August. This decrease was due to an increase in coal mining.

"It is expected that costs will fall further (assuming oil prices do not increase) as the dry season allows for increased coal to be mined in the third and fourth quarters," Dileep concluded.

Adapun harga realisasi di bulan Agustus berada di US$ 43,55 per ton, naik dari harga realisasi pada Juli 2020 yang hanya US$ 42,61. Harga realisasi KPC turun menjadi US$ 44,24 per ton (US$ 44,52 per ton pada Juli).

Tetapi di sisi lain harga rata-rata Arutmin naik menjadi US$ 40,59 per ton (naik dari US$ 34,38 per ton pada Juli). Hal ini karena kadar rata-rata batubara yang lebih tinggi dijual di bulan Agustus, yakni 5,012 gross air-received (GAR) berbanding 4,632 GAR pada Juli 2020.

Sementara biaya keseluruhan pada bulan Agustus tercatat sedikit lebih rendah diban-dingkan dengan bulan Juli, yakni sebesar US$ 32,3 per ton. Secara rinci, biaya di KPC turun menjadi US$ 33,1 per ton dan Arutmin turun menjadi US$ 29,7 ton pada bulan Agustus. Penurunan ini disebabkan adanya pening-katan penambangan batubara.

“Diharapkan bahwa biaya akan turun lebih lanjut (dengan asumsi harga minyak tidak naik) karena musim kemarau memungkinkan peningkatan batubara untuk ditambang pada kuartal ketiga dan keempat,” pungkas Dileep.

PT Timah Wins the 2020 Mineral and Coal Conservation Management Trophy

Rangga Prakoso (rangga.prakoso@beritasatumedia.com)

PT TIMAH Tbk received the mineral and

coal conservation management trophy from the Ministry of Energy and Mineral Resources. This virtual trophy is awarded for the achievement of the implementation of the Good Mining Technique Principles for 2020.

EMR Minister Arifin Tasrif said this activity was a counterweight to public opinion and opinion about mining in Indonesia.

PT Timah Raih Trofi Pengelolaan Konservasi Mineral dan Batu

Bara 2020 Rangga Prakoso

(rangga.prakoso@beritasatumedia.com)

PT TIMAH Tbk menerima trofi pengelolaan

konservasi mineral dan batubara dari Kemen-terian Energi dan Sumber Daya Mineral. Trofi yang diserahkan secara virtual ini, diberikan atas penghargaan prestasi penerapan Kaidah Teknik Pertambangan Minerba yang Baik Tahun 2020.

Menteri ESDM Arifin Tasrif mengatakan kegiatan ini sebagai penyeimbang dari opini dan anggapan masyarakat tentang pertambangan di Indonesia.

IMA-Daily Update Page 11

According to him, people still think that mining causes damage to nature and the

environment.

"I hope that the success of this activity will

balance the opinion of the people who think mining is the cause of environmental

damage," said Arifin in his statement in Jakarta, Thursday (1/10).

At the virtual event, the award recipient nominations were read out from several

aspects, which listed the name of the PT Timah Tbk business entity that received

the best mineral and coal conservation management trophy in the IUP owner

group.

PT TIMAH Tbk's Achievements in the

Presentation of Achievement Awards for the Application of Good Mineral and Coal

Mining Techniques in 2020;

Pratama Award (Bronze)

1. Aspects of Mineral Conservation Management, Kundur Production Unit in the Riau Islands Region

Utama Award (Silver)

1. Aspects of Mineral Conservation Management, Belitung Production Unit

2. Bangka Marine Production Unit

3. Aspects of Mining Safety Management, Bangka Land Production Unit

4. Environmental Management Aspect, Bangka Land Production Unit

Aditama Award (Gold)

1. Aspects of Mineral Conservation Management, Bangka Land Production Unit

The Best Company for Mineral Conser-vation Management, Mineral Commodity Mining Company Group, Bangka Land Production Unit.

Menurutnya, masyarakat masih berpikir bahwa pertambangan penyebab dari

kerusakan alam dan lingkungan.

“Saya menaruh harapan dengan suksesnya

kegiatan ini, menjadi penyeimbang opini bagi masyarakat yang menganggap

pertambangan adalah penyebab dari kerusakan lingkungan," kata Arifin dalam

keterangannya di Jakarta, Kamis (1/10).

Pada acara virtual tersebut, dibacakan

nominasi penerima penghargaan dari beberapa aspek, yang tercantum nama

badan usaha PT Timah Tbk penerima trofi pengelolaan konservasi mineral dan batu

bara terbaik pada kelompok pemilik IUP.

Prestasi PT TIMAH Tbk dalam Penyerahan

Penghargaan Prestasi Penerapan Kaidah Teknik Pertambangan Mineral dan Batu-

bara Yang Baik Tahun 2020;

Penghargaan Pratama (Perunggu)

1. Aspek Pengelolaan Konservasi Mineral, Unit Produksi Kundur Wilayah

Kepulauan Riau

Penghargaan Utama (Perak)

1. Aspek Pengelolaan Konservasi Mineral, Unit Produksi Belitung

2. Unit Produksi Laut Bangka

3. Aspek Pengelolaan Keselamatan Pertam-

bangan, Unit Produksi Darat Bangka

4. Aspek Pengelolaan Lingkungan, Unit

Produksi Darat Bangka

Penghargaan Aditama (Emas)

1. Aspek Pengelolaan Konservasi Mineral, Unit Produksi Darat Bangka

Perusahaan Terbaik Pengelolaan Konser-vasi Mineral Kelompok Perusahaan

Pertambangan Komoditas Mineral, Unit Produksi Darat Bangka.

IMA-Daily Update Page 12

Meanwhile, the Director General of Mineral and Coal at the Ministry of EMR Ridwan Djamaluddin said the implementation of this year's event was a little different from the previous one, because the Covid -19 pandemic was not over. Nevertheless, the committee is determined to continue to carry out these activities while still applying the recommended health protocols.

"We hope that the implementation of an event like this will not reduce the substance and essence and our enthusiasm for the success of the award ceremony for the achievement of good mineral and coal mining engineering principles," he said.

The jury of this activity consists of representatives of academics and practitioners who are competent in the field, divided into three stages of assessment, namely, administration, verification and plenary sessions. There are five aspects that will be assessed, among others, mineral and coal mining technicalities, work safety management, environmental management, conservation management and standardization and mineral and coal service business.

"We hope this activity will stimulate other business entities to carry out mining techniques in accordance with the standards," Ridwan hoped. Editor: Gora Kunjana (gora_kunjana@investor.co.id)

Sementara itu, Direktur Jendral Mineral dan Batu Bara Kementerian ESDM Ridwan Djamaluddin mengatakan pelaksanaan acara tahun ini sedikit berbeda dengan sebelumnya, sebab pandemi Covid-19 belum usai. Kendati demikian, panitia bertekad tetap terus melakukan kegiatan ini dengan tetap menerapakan protokol kesehatan yang telah dianjurkan.

“Kami berharap dengan pelaksanan acara seperti ini, tidak mengurangi subtansi dan esensi serta semangat kita dalam menyukseskan acara pemberian penghargaan prestasi kaidah tek nik pertambangan minerba yang baik,” ujarnya.

Adapun tim juri kegiatan ini dari perwakilan akademisi dan praktisi yang berkompenten di didangnya, dengan dibagi menjadi tiga tahab penilaian yaitu, administrasi, verifikasi dan sidang pleno. Ada lima aspek yang akan dinilai antara lain, Teknis pertambangan mineral dan batu bara, pengelolaan keselamatan kerja, pengelolaan lingkungan hidup, penge-lolaan konservasi dan standarisasi dan usaha jasa mineral dan batu bara.

“Kami berharap kegiatan ini menjadi pemacu bagi badan usaha lainnya untuk menjalankan teknik pertambangan sesuai dengan standarnya,” harap Ridwan. Editor : Gora Kunjana (gora_kunjana@investor.co.id)

Bukit Asam looks to develop solar panels, downstream industries Yunindita Prasidya | The Jakarta Post

PUBLICLY listed coal miner PT Bukit Asam is looking to expand its business into the

renewable energy sector after announcing plans to install solar panel systems at existing unproductive mining sites.

The company has already successfully installed solar panels at airports.

IMA-Daily Update Page 13

Bukit Asam president director Arviyan Arifin said the miner had built and operated 720 solar panel systems at Soekarno-Hatta International Airport’s operation control center in partnership with state-owned airport operator PT Angkasa Pura (AP) II.

The same system will be installed at other AP II airports, he added, while the company planned to capitalize on its existing mining areas to expand its solar panel business arm if it managed to strike lucrative deals from the new venture.

“We are planning to build solar panel systems with a capacity of 100 megawatts [MW] in Ombilin,” Arviyan said in a virtual media briefing on Wednesday, referring to the company’s mining site in West Sumatra.

“Accordingly, we will need 200 hectares of land, [which] is relatively available for us,” he said.

A company document shows that the Ombilin site has a total area of 2,935 ha. “We are now talking with PLN as a buyer of this electricity.”

Energy players in the country have started tapping into the growing renewable energy sector as concerns over environmental costs incurred by mining practices have risen, and numerous actors, including the government, are incorporating clean energy targets into their programs.

According to the Energy and Mineral Resources Ministry’s National Energy Plan of 2017, Indonesia’s utilization of new and renewable energy (EBT), including geothermal, solar energy, wind energy, among other power sources, had reached only 2 percent of its total potential.

According to the document, the government aims to have at least 23 percent of its total primary energy mix come from EBT by 2025 and at least 31 percent by 2050.

“We are anticipating this opportunity,” Arviyan said, adding that Bukit Asam was currently waiting for the government’s announcement on a tariff policy in regard to the purchase of electricity generated by solar panels.

He went on to say that if the price was attractive, Bukit Asam would expand its solar panel development to Tanjung Enim, its mining site in South Sumatra, which has a total area of 66,414 ha, as detailed in the company’s document.

Aside from developing a solar panel venture, Arviyan said Bukit Asam had embraced the quest to lower its carbon emission by installing ultrasupercritical technology in its power plants. Power plants equipped with the technology require less coal per megawatt-hour, which translates to lower emissions.

The company is also planning to develop its downstream business to reduce the environmental impact of coal, the president director said.

Among the products the company is developing is Dimethyl Ether (DME), which is a substitute for liquified petroleum gas (LPG). Other products that may be developed down the line range from lubricant and polythene to polyester and urea fertilizer.

“This will be our transformation for the next five, 10 or 20 years ahead. Bukit Asam will no longer sell coal because coal itself will not be in use due to the rampant ESG [environment, social, governance] campaigns,” Arviyan said. “Many countries are no longer using coal-fired steam power plants anymore.”

IMA-Daily Update Page 14

Bukit Asam human resources director Joko Pramono said during the same event: “Since 2015, we have acknowledged that we need to raise our performance based on the triple P: people,

planet and profit.”

Bukit Asam reported that the COVID-19 pandemic had impacted its business expansion. Its capital expenditure (capex) is projected to reach between Rp 2.7 trillion (US$182 million) and

Rp 3 trillion, from the Rp 4 trillion initially targeted this year.

During the first half of the year, the company booked a net profit of Rp 1.3 trillion, lower than Rp 2 trillion pocketed in the same period in 2019, according to the company's financial

report. Its revenue had also slipped year-on-year from Rp 10.61 trillion to Rp 9 trillion during the first six months of the year.

Bukit Asam shares, traded on the Indonesia Stock Exchange (IDX) with the code PTBA, jumped 1.52 percent to Rp 2,000 apiece on Thursday versus the Jakarta Composite Index’s

(JCI) gain of 2.05 percent. The miner has lost almost 25 percent of its share value so far this year.

Smelter in Morowali Profitable, Why is Copper Smelter Losing?

Tony: Different Boss, It's Nickel! Reporter: Azis Husaini | Editor: Azis

Husaini

PT FREEPORT Indonesia has revealed

that the smelter in Gresik that Mitsubishi

and Freeport has built has never once made a profit. Currently PT Smelting

processes and refines 1 million copper concentrate from Freeport. The resulting

product becomes 300,000 tonnes of copper cathodes per year.

Just so you know, in 2000, PT Smelting,

which manages the Freeport copper smelter, owned 25% of the shares and the

remaining 75% was controlled by a consortium consisting of Mitsubishi

Materials, Mitsubishi Corporation Unimetal Ltd and Nippon Mining and Metals Co. Ltd.

Smelter di Morowali untung, kenapa smelter tembaga rugi?

Tony: Beda bos, itu nikel! Reporter: Azis Husaini | Editor: Azis

Husaini

PT FREEPORT Indonesia membeberkan bahwa smelter di Gresik yang sudah dibangun Mitsubishi dan Freeport tak pernah sekalipun memperoleh keun-tungan. Saat ini PT Smelting mengolah dan memurnikan 1 juta konsentrat tembaga dari Freeport. Produk yang dihasilkan menjadi katoda tembaga 300.000 ton per tahun.

Asal tahu saja pada tahun 2000, di PT Smelting yang mengelola smelter tembaga Freeport memiliki 25% saham dan 75% saham sisanya dikuasai oleh konsorsium yang terdiri dari Mitsubishi Materials, Mitsubishi Corporation Unimetal Ltd dan Nippon Mining and Metals Co. Ltd.

IMA-Daily Update Page 15

Freeport Indonesia President Director Tony Wenas said that the Gresik smelter owned by PT Smelting has not benefited for 20 years.

"They have only distributed dividends twice in 20 years. They previously hoped that the demand for copper cathodes could increase, but in fact for 20 years the absorption of the domestic industry was only 150,000 copper cathodes. The remaining 150,000 copper cathodes were exported," he said to KONTAN, September 8, 2020.

He said reflecting on all that, no one else would build a smelter except Indonesia. In fact, China built a copper smelter 15 years ago.

"Now Indonesia is just about to rebuild. So why China is profitable, because they have a cable company and there is a large automotive factory there. Production is absorbed. If China wants to build a smelter in Indonesia, please, Freeport will supply the concentrate," he explained.

He explained, many people thought that Indonesia could build a smelter like in Morowali. "There the nickel smelter is different from the boss and the copper smelter," he said.

He explained that the added value of nickel and copper is different. As an illustration, ore or nickel ore to ferrous nickel has an added value of 60%-70% and nickel ore to nickel matte has an added value of 75%.

"If the copper concentrate has the same comparison (ferronickel and nickel matte), do not compare it to nickel ore. The added value of concentrate is 95% if it enters the smelter, it becomes 100%. The nickel pig iron with an added value of 4%-6% is considered the final product," he added.

Tony revealed that building a nickel smelter is more profitable than selling ore or nickel ore. Currently, said Tony,...

Direktur Utama Freeport Indonesia Tony Wenas mengatakan, smelter Gresik milik PT Smelting sudah 20 tahun tidak pernah men-dapat keuntungan.

"Mereka baru bagi dividen 2 kali dalam 20 tahun itu. Mereka dulu itu berharap demand katoda tembaga bisa naik, tapi nyatanya selama 20 tahun penyerapan industri domestik hanya 150.000 katoda tembaga. Sisanya 150.000 katoda tembaga diekspor," ungkap dia ke KONTAN, 8 September 2020.

Dia mengatakan berkaca dari itu semua maka tidak ada lagi yang membangun smelter kecuali Indonesia. Bahkan, China membangun smelter tembaga 15 tahun yang lalu.

"Sekarang Indonesia baru mau bangun lagi. Jadi kenapa China untung, ya karena mereka punya perusahaan kabel dan ada pabrik otomotif disana yang besar besar. Terserap produksinya. Kalau China mau bangun smelter di Indonesia, ya monggo, Freeport yang suplai konsentratnya," terangnya.

Dia menerangkan, banyak orang ber-anggapan Indonesia bisa membangun smelter layaknya di Morowali. "Di sana itu smelter nikel beda bos sama smelter tembaga," ungkap dia.

Dia membeberkan, nilai tambah nikel dan tembaga berbeda. Gambarannya, ore atau bijih nikel menjadi ferro nikel itu memiliki nilai tambah 60%-70% dan ore nikel ke nikel matte nilai tambahnya 75%.

"Kalau konsentrat tembaha itu bandingan-nya sama (ferronikel dan nikel matte), jangan dibandingkan ore nikel. Konsentrat itu nilai tambahnya sudah 95% kalau masuk smelter jadi 100%. Masa nikel pig iron yang nilai tambahnya 4%-6% sudah dianggap produk akhir," imbuh dia.

Tony mengungkapkan, membangun smelter nikel lebih untung daripada menjual ore atau bijih nikel. Saat ini kata Tony,...

IMA-Daily Update Page 16

Currently, said Tony, the price of nickel ore for 2% grade is US$ 50 per ton. The production cost to enter the smelter is US$ 10,000 per ton, now the price of nickel that has been processed is US$ 15,000 per ton.

"There is a profit of US$ 2,500 per ton. I want to build a smelter if the profit is the same as a nickel smelter. The cost of extracting nickel ore is only US$ 20 per ton. Compared to the current price of copper concentrate, it is around US$ 2.80 per pound, when it's finished. The copper cathode costs US$ 3 per pound. The slight margin cannot cover the project investment costs. The concentrate price is reduced by processing and refining costs. That's the formula," he said.

Saat ini kata Tony, harga ore nikel untuk kadar 2% harganya US$ 50 per ton. Ongkos produksi masuk smelter US$ 10.000 per ton, sekarang harga produk nikel yang sudah diolah US$ 15.000 per ton.

"Kan ada untung US$ 2.500 per ton. Saya mau bangun smelter kalau untungnya sama kayak smelter nikel. Ongkos gali ore nikel cuma US$ 20 per ton. Bandingkan dengan harga konsentrat tembaga sekarang sekitar US$ 2,80 per pound, kalau sudah jadi katoda tembaga harganya US$ 3 per pound. Sedikit marginnya tidak bisa menutup biaya investasi proyek. Harga konsentrat adalah dikurangi biaya peng-olahan dan pemurnian. Itu rumusnya," ungkap dia.

Underground Gold Mine in Dompu, STM Allowed to Use

Protected Forest Areas

HEAD of the NTB Environment and Forestry

Service (LHK), Ir. Madani Mukarom, B.Sc.F., M. Si., said PT. Sumbawa Timur Mining (STM) is allowed to mine gold in the Hu'u Forest Area of Dompu Regency. However, gold mining is being developed in the form of underground mining or closed mining.

"STM can use protected forest areas because it is underground mining. He was not like the Newmont mine (now AMNT). But a tunnel will be built," said Madani, confirmed by Suara NTB, Thursday, October 1, 2020 at noon.

Madani explained, the Ministry of Environ-ment and Forestry (LHK) had issued Borrowing and Use of Forest Areas Permits (IPPKH) for gold tembang exploration in Hu'u District, Dompu Regency.

Tambang Emas Bawah Tanah di Dompu, STM Diperbolehkan

Gunakan Kawasan Hutan Lindung

KEPALA Dinas Lingkungan Hidup dan Kehutanan (LHK) NTB, Ir. Madani Mukarom, B.Sc.F., M. Si., mengatakan PT. Sumbawa Timur Mining (STM) diperbolehkan melakukan penambangan emas di Kawasan Hutan Hu’u Kabupaten Dompu. Namun, pertambangan emas yang dikembangkan berupa tambang bawah tanah atau tambang tertutup.

‘’STM bisa menggunakan kawasan hutan lindung karena tambang bawah tanah. Dia tidak seperti tambang Newmont (sekarang AMNT). Tapi akan dibangun terowongan,’’ ujar Madani dikonfirmasi Suara NTB, Kamis, 1 Oktober 2020 siang.

Madani menjelaskan, Kementerian Ling-kungan Hidup dan Kehutanan (LHK) telah mengeluarkan Izin Pinjam Pakai Kawasan Hutan (IPPKH) untuk eksplorasi tembang emas di Kecamatan Hu’u Kabupaten Dompu.

IMA-Daily Update Page 17

The IPPKH for exploration issued by the Ministry of Environment and Forestry is the third time awarded to PT. Sumbawa Timur Mining (STM).

It was explained, STM just got an exploration permit. The application for an exploitation permit, according to Madani, is likely still a long time. Because the mining company is still looking for points that have great prospects for exploitation.

"After he met his prospect, he submitted another permit. Currently, he is still exploring, he doesn't know which location has many prospects," he said.

Because it is underground mining, said

Madani, it requires a large investment. Because the technology used will also be

sophisticated and cost a lot.

If it has entered the exploitation stage, the

mining company will make a tunnel to mine the gold that is there. With this

mining pattern, said Madani, it would not destroy the protected forest above it.

PT. STM has been carrying out exploration

activities within the Hu'u Project Contract of Work (KK) area since 2010. Onto

mineral resource deposits were first discovered in August 2013 and since then

as many as 64 drilling holes, equivalent to 61,000 meters have been carried out to

determine the size, the extent and characteristics of mineral resources.

PT. STM is the 7th generation KK holder for the Hu'u Project in Hu'u District, Dompu Regency. PT. STM is a joint venture between Eastern Star Resources Pty Ltd which owns 80 percent of the shares. Eastern Star Resources Pty Ltd is a 100 percent owned subsidiary of Vale SA. In addition, 20 percent of PT. STM is owned by PT. Antam Tbk. (nas)

IPPKH eksplorasi yang dikeluarkan Kemen-terian LHK ini merupakan ketiga kalinya diberikan kepad a PT. Sumbawa Timur Mining (STM).

Dijelaskan, STM baru mendapatkan izin eksplorasi. Untuk pengajuan izin eksploitasi, menurut Madani, kemungkinan masih lama. Karena perusahaan pertambangan tersebut masih mencari titik yang punya prospek besar untuk dilakukan eksploitasi.

‘’Setelah dia ketemu prospeknya, dia ajukan izin lagi. Sekarang masih eksplorasi, belum tahu dimana lokasi yang prospek banyak,’’ katanya.

Karena pertambangan bawah tanah, kata Madani, maka membutuhkan investasi yang cukup besar. Karena teknologi yang diguna-kan juga akan canggih dan butuh biaya besar.

Jika telah memasuki tahap eksploitasi, maka perusahaan pertambangan itu akan mem-buat terowongan untuk menambang emas yang berada di sana. Dengan pola penam-bangan seperti ini, kata Madani, maka tak akan merusak hutan lindung yang ada di atasnya.

PT. STM telah melakukan kegiatan eksplo-rasi di dalam wilayah kontrak karya (KK) Proyek Hu’u sejak tahun 2010. Deposit sumber daya mineral Onto pertama kali ditemukan pada Agustus 2013 dan sejak saat itu sebanyak 64 lubang pemboran, setara dengan 61.000 meter telah dilakukan untuk menentukan ukuran, luas dan karakteristik sumber daya mineral.

PT. STM adalah pemegang KK generasi ke-7 untuk Proyek Hu’u di Kecamatan Hu’u, Kabupaten Dompu. PT. STM merupakan perusahaan patungan antara Eastern Star Resources Pty Ltd yang memiliki saham 80 persen. Eastern Star Resources Pty Ltd merupakan anak perusahaan yang 100 persen sahamnya milik Vale SA. Selain itu, 20 persen saham PT. STM dimiliki PT. Antam Tbk. (nas)

IMA-Daily Update Page 18

PTBA Received 5 Awards from

IAGI Explorations Awards 2020

PT BUKIT Asam Tbk won five awards at

the IAGI Explorations Awards 2020 (29/9). In this award, Bukit Asam won the "Best in Category" in the coal sector.

The awards were held online and Bukit Asam was represented by the Director of Operations and Production, Hadis Surya Palapa. Bukit Asam won five awards, namely in the categories:

1. Best People Development in the Coal Sector

2. Best Exploration Commitment in the Coal Sector

3. Exploration Largest Expenditure in the Coal Sector

4. Best Discovery in the Coal Sector 5. Best In Category Coal Sector

In his statement, the IAGI Explorations Awards 2020 is the first award event organized by IAGI (Indonesian Association of Geologists). The assessment process is also carried out by professional and independent judges representing govern-ment, universities, and practitioners in the mining sector.

This activity was also held as a series of commemoration of the 60th anniversary of the establishment of the Association of Indonesian Geologists and National Mining and Energy Day which is commemorated every 28 September 2020.

The IAGI Explorations Awards 2020 was held as a form of appreciation to all companies in the mineral and coal mining sector who have provided the best innovation, competence and dedication in the mining sector. (dob/dob)

PTBA Borong 5 Penghargaan

IAGI Explorations Awards 2020

PT BUKIT Asam Tbk berhasil meraih lima

penghargaan sekaligus dalam IAGI Explora-tions Awards 2020 (29/9). Dalam peng-hargaan ini Bukit Asam meraih "Best in Category" bidang batubara.

Penghargaan dilaksanakan secara daring dan Bukit Asam diwakili oleh Direktur Operasi dan Produksi, Hadis Surya Palapa. Lima penghargaan yang berhasil diraih oleh Bukit Asam, yaitu pada kategori :

1. Best People Development Bidang Batubara

2. Best Exploration Commitment Bidang Batubara

3. Exploration Largest Expenditure Bidang Batubara

4. Best Discovery Bidang Batubara 5. Best In Category Bidang Batubara

Dalam pernyataannya, IAGI Explorations Awards 2020 merupakan ajang penghargaan pertama kalinya yang diselenggarakan oleh IAGI (Ikatan Ahli Geologi Indonesia). Proses penilaian pun dilakukan oleh juri professional dan independent yang mewakili dari pemerintahan, universitas, dan praktisi di bidang pertambangan.

Kegiatan ini diselenggarakan juga sebagai rangkaian peringatan 60 tahun berdirinya Ikatan Ahli Geologi Indonesia dan Hari Pertambangan dan Energi Nasional yang diperingati setiap tanggal 28 September 2020.

IAGI Explorations Awards 2020 digelar sebagai bentuk apresiasi kepada seluruh perusahaan di sektor pertambangan mineral dan batubara yang telah memberikan inovasi, kompetensi, dan dedikasi terbaiknya dalam bidang pertambangan. (dob/dob)

IMA-Daily Update Page 19

The Grasberg Open Pit runs out, Freeport has prepared Rp. 6

trillion for the closure of all mines Reporter: Azis Husaini | Editor: Azis

Husaini

PT FREEPORT Indonesia (PTFI) this year

has prepared funds or deposited a guarantee fund for the closure of all mines in Grasberg as well as underground which will be completed in 2041. The value is unmitigated, reaching Rp. 6 trillion.

Just so you know, the Grasberg Open Pit mine has been exploited by Freeport. Now the company is mining underground mining.

Freeport Indonesia President Director Tony Wenas revealed that Freeport had submitted mine closure documents to the Ministry of EMR.

Tony said Freeport will close Grasberg, tailings, employee housing, and under-ground after 2041. "The total cost to close the mine is US $ 350 million or Rp. 6 trillion. It must be deposited, 15 years before mining is finished," he told KONTAN, 8 September 2020 ago.

He said that his party had started depositing the funds this year. "The closure of the mine will take 10 years after it is no longer mined (2041). Everything is closed. What will become of it is up to the local government policy. If Eastberg is now a reservoir. In the underground now there are 16,000 workers," he said.

Just so you know, Freeport's gold production during the first half of 2020 reached 340,000 ounces. With gold sales reaching 319,000 ounces throughout the first semester of 2020.

Grasberg Open Pit habis, Freeport siapkan Rp 6 triliun untuk menutup seluruh tambang

Reporter: Azis Husaini | Editor: Azis Husaini

PT FREEPORT Indonesia (PTFI) pada tahun

ini sudah menyiapkan dana atau menyetor-kan dana jaminan penutupan seluruh pertambangan di Grasberg dan juga under-ground yang akan selesai 2041 mendatang. Nilainya tak tanggung-tanggung yakni men-capai Rp 6 triliun.

Asal tahu saja, tambang Grasberg Open Pit sudah habis dieksploitasi oleh Freeport. Kini perusahaan sudah menambang di under-ground mining.

Direktur Utama Freeport Indonesia Tony Wenas mengungkapkan bahwa Freeport sudah menyerahkan dokumen penutupan tambang ke Kementerian ESDM.

Kata Tony, Freeport akan menutup Grasberg, tailing, perumahan karyawan, dan under-ground setelah 2041. "Total biayanya untuk menutup tambang keseluruhan US$ 350 juta atau Rp 6 triliun. Itu harus disetorkan, 15 tahun sebelum selesai menambang," ujar dia kepada KONTAN, 8 September 2020 lalu.

Dia mengatakan, pihaknya pada tahun ini sudah mulai menyetorkan dana tersebut. "Nanti penutupan tambang itu butuh waktu 10 tahun setelah tidak ditambang lagi (2041), semua ditutup, mau jadi apa nanti terserah kebijakan Pemda setempat. Kalau Eastberg sekarang sudah jadi reservoir. Di underground sekarang pekerjanya 16.000," ujar dia.

Asal tahu saja produksi emas Freeport sepanjang semester I -2020 mencapai 340.000 ounce. Dengan penjualan emasnya mencapai 319.000 ounce sepanjang semester I-2020.

IMA-Daily Update Page 20

Then Freeport copper production during the first half of 2020 reached 321 million pounds. With total copper sales during the first half of this amounting to 299 million pounds.

Kemudian produksi tembaga Freeport sepanjang semester I-2020 mencapai 321 juta pound. Dengan total penjualan tembaga sepanjang paruh pertama ini mencapai 299 juta pound.

Copper price in biggest drop since height of pandemic Frik Els

THE COPPER price rally came to an abrupt halt on Thursday with the bellwether metal

experiencing one of the worst one-day price drops on record.

On the Comex market, copper for delivery in December fell 5.9% to a low of $2.8540 a pound ($6,292 a tonne) amid heavy selling, with more than 2.6 billion pounds traded by 1pm in New

It was the biggest decline since mid-March at the height of the covid-19 induced sell-off, which sent the copper price crashing to below $2.00 a pound – levels last seen during the global financial crisis.

S&P Global reports a rapid buildup of inventories in warehouses managed by the London Metal Exchange could be behind Thursday’s decline after inflows of almost 92,000 tonnes over just three days.

TD Securities’ head of commodity strategy Bart Melek told S&P Global that “following months of steeply drawing inventories resulting from a powerful ‘V-shaped’ recovery in China, combined with a cascading global re-opening and constrained supply amid social-distancing enforcement at operations, the substantial inflows into LME warehouses have eased the near-term tightness that has propelled copper to multi-year highs.”

Wild swings

Thursday’s decline comes just a day after copper leapfrogged the pivotal $3 a pound level and looked ready to retake levels last seen in 2018, after a key gauge of the Chinese manufacturing sector, the world’s top consumer of the metal, showed new orders jumping to a nine-year high.

Capital Economics said China’s September PMI reading suggests that “the economy is now entering a period of above-trend growth, which is indisputably good news for the prices of commodities, particularly industrial metals.”

The Wall Street Journal reported Wednesday a measure from Citigroup that tracks end uses of copper in the country in various sectors, including auto and appliance makers, shows the three-month average reaching its highest level since early in 2017.

IMA-Daily Update Page 21

China's glory days for coal are gone, Treasury tips India to boom The days of rapid growth in China’s coal demand that poured billions of dollars into the

Queensland coal sector appear to be over and India is the new frontier, according to a

report from Queensland Treasury.

John McCarthy

THE REPORT said China’s demand for thermal coal, used in electricity generation, was

waning and its plans to upgrade its steelmaking industry to be more efficient as well as

increase the use of scrap steel meant metallurgical coal demand would also see little growth.

And if global demand for coal was close to projections made by the International Panel on

Climate Change “there would likely be more significant implications for the State’s coal

industry, particularly in relation to the long-term outlook for thermal coal’’.

Japan could be expected to increase its demand for thermal coal by 17 to 20 million tonnes a

year and although Korea is building several new coal fired power stations they were only

replacing units that were closing down.

India, however, was showing so much growth demand that it may replace the downturn in

China.

“It is expected that, at the current rate of GDP growth, annual steel demand in India will grow

threefold to reach 230 Mt by 2030-31,’’ Treasury said.

“If these goals are achieved, India’s coking coal demand may triple, from 47 Mt in 2017-18 to

above 160 Mt by 2030-31.

“Given that Queensland is a major coking coal exporter to India, Queensland is likely to

benefit from India’s planned steel industry expansion. Most importantly, the scale of Indian’s

expansion, if it eventuates, is large enough to offset any potential reduction in demand for

metallurgical coal due to the rising use of steel scrap in China.

However, thermal coal for electricity production would not have the same demand.

“The Indian Central Electricity Agency assesses that power plants designed to use domestic

coal can meet their requirements from domestic sources,’’ Treasury said.

“Therefore, imported coal may only be required for power plants which may find imported

coal more economical than domestic coal due to logistical constraints or those power plants

designed for imported coal specifications. As such, India’s thermal coal imports may not

surpass the record of 157.3 Mt (in 2019-20 India’s fiscal year) over the coming decade.’’

IMA-Daily Update Page 22

Coal India production increases by 31.6% at 40.51 MT in September

STATE-owned CIL on Thursday said it produced 40.51 million tonnes (MT) of coal in September, registering a growth of 31.6 per cent over the same month last year.

Coal India (CIL), which accounts for over 80 per cent of domestic coal output, had produced 30.78 MT of the dry fuel in September 2019.

"Coal production at 40.51 MT in September'20, surged ahead by a robust 9.73 MT increase in absolute terms, compared to 30.78 MT in September'19, the growth being 31.6 per cent," CIL said in a statement.

For the first time in the current fiscal, growth was in double digits, with all CIL subsidiaries showing an increase.

"Now that we broke the growth jinx in output and off-take, which were weighed down by the pandemic-induced slowdown, we expect to better our performance in the ensuing months.

"We aim to reclaim as much of the lost ground as possible during the rest of the fiscal," a senior official of the company said.

"Generally, the H2 performance is higher in terms of production and supplies," the official added.

CIL's coal off-take saw a sizeable jump of 11.2 MT during last month.

The company supplied 46.46 MT in September against 35.28 MT in the same month last fiscal, logging a growth of 31.7 per cent, it said.

Supplies to non-power sector logged a growth of 65 per cent at 10.04 MT, compared to 6.08 MT in September last fiscal.

Coal despatch to the power sector grew 24.7 per cent to 36.42 MT, from 29.20 MT earlier.

"Despite COVID-related challenges and inclement monsoon, our production increased by 11 MT and off-take by 12 MT during the second quarter of the present fiscal," an official said.

CIL produced 115 MT of coal in the July-September period against 104 MT in the same quarter last year, showing a growth of 10.6 per cent.

"CIL supplied 134.4 MT of coal during current year's Q2 compared to 122.4 MT same quarter last year registering a growth close to 10 per cent," the statement said.

Supplies to coal fired power utilities during Q2 rose around 3 per cent to 103.2 MT. CIL had supplied 100.29 MT during same quarter last fiscal.

Overall average loading during Q2 at 224.6 rakes per day registered a growth of 23.6 per cent compared to 181.7 rakes loaded in the same quarter last year.

"Loading to power sector at 189.7 rakes/day in Q2 clocked a growth of 16 per cent over last year's Q2," it said.

IMA-Daily Update Page 23

Ukrainian miners produced 2.6M tonnes of coal in September

IN September 2020, Ukrainian mining enterprises produced 2.626 million tonnes of coal,

which is 103% of the production plan, the Coal Miners Union of Ukraine reported with a

reference to the Energy Ministry.

In particular, in Donetsk region, coal mining enterprises of all forms of ownership produced 1.096 million tonnes of coal, including 115.760 thousand tonnes coal extracted by state-

owned mines. At the same time, the level of coal production at state-owned mines of the region decreased by 118.24 thousand tonnes compared to the planned target.

Enterprises of the Energy Ministry in Luhansk Region produced 19.81 thousand tonnes of coal, which is 35.38 thousand tonnes less than planned.

In Dnipropetrovsk region, DTEK Pavlohradvuhillia extracted 1.406 million tonnes of coal,

which is 26.54 thousand tonnes less than planned.

In Lviv region, Lvivvuhillia State Enterprise produced 101.53 thousand tonnes of coal. The production plan was exceeded by 3.03 thousand tonnes.

PJSC Nadiia Mine extracted 2.64 thousand tonnes of coal. The production plan was fulfilled by 29%.

As reported, according to the State Statistics Service of Ukraine, Ukraine produced 10.29

million tonnes of coal in the first half of 2020, which is 22.6% less than in the same period in 2019.

Weekly US coal production totals 10.2 million st, dropping to 10-week low: EIA

Author: Olivia Kalb, Editor: Richard Rubin

WEEKLY US coal production was estimated to be over 10.2 million st in the week ended

Sept. 29, down 5.3% from the previous week, Energy Information Administration data showed Oct. 1.

Weekly output was at its lowest in 10 weeks and down 25.5% from the year-ago week.

Through the year so far, 39 weeks, US production is about 397 million st, down 23.3% year on year. The five-year average for week 39 is about 15.3 million st, leaving the most recent week at a 32.8% deficit.

IMA-Daily Update Page 24

On an annualized basis, US coal production is projected to be over 529 million st, down 24.8% from 2019.

Output from all four major basins dropped week on week.

Production from Wyoming and Montana, which is largely made up of Powder River Basin coal, fell 6.4% from the week before to 4.8 million st. Year on year, it declined 25%. Additionally, production from the two states

was at a seven-week low.

Through 39 weeks, production from the two states was about 173 million st, and annualized, it is projected to be 231 million st, down 25.7% year on year.

Central Appalachian output totaled 1.2 million st, down 3.8% from the prior week and down 28.3% from the year-ago week.

Over the year so far, CAPP output is estimated at 48 million st. On an annualized basis, it is projected at 64 million st, down 25.5% from last year.

Illinois Basin production reached an 11-week low with estimated production of 1.3 million st. From the previous week, output dropped 3.1%, and it fell 32.1% from the year-ago week.

IB output through 39 weeks was about 52.2 million st, while annualized is it expected to be 69.6 million st, down 30.1% year on year.

In the Northern Appalachian basin, output fell 2.7% from the previous week to an 11-week low of 1.4 million st. Year on year, it was down 22%.

NAPP production through late September was about 57 million st. Annualized, it is expected to be 76 million st, down 26.5% from 2019.