Daily News Update Page 1

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Global Demand Raised, December HBA Raised to US$ 59.65/Ton Permintaan Global Naik, HBA Desember Naik Jadi US$ 59,65/Ton About the Freeport and Amman Mineral copper smelters, IMA and AP3I said Soal smelter tembaga Freeport dan Amman Mineral, begini kata IMA dan AP3I Inalum is Optimistic to Maintain Production in a Pandemic Period Inalum Optimistis Pertahankan Produksi di Masa Pandemi New PLTU Project in China Threatened with Restriction, Coal Prices Continue to Rally Proyek PLTU Baru di China Terancam Dibatasi, Harga Batu Bara Tetap Reli Freeport Submits Decision on Partner Engagement and Change of Smelter Location to the Government Freeport Serahkan Keputusan Keterlibatan Mitra dan Perubahan Lokasi Smelter ke Pemerintah Mining service contractors are still waiting and seeing in response to the increase in coal exports Kontraktor jasa pertambangan masih wait and see menyikapi peningkatan ekspor batubara Working on Gold Mining, Indika (INDY) Adds Shares in Nusantara Resources Garap Tambang Emas, Indika (INDY) Tambah Saham di Nusantara Resources Enter Mr Eko! The price of coal has reached US$ 71/ton Masuk Pak Eko! Harga Batu Bara Sudah Tembus US$ 71/ton nih Adaro Metcoal Companies Build Dams in 5 Villages Adaro Metcoal Companies Bangun Bendungan di 5 Desa China coking coal surges as covid throttles Mongolia border

CNBC Indonesia Kontan Republika Bisnis Dunia Energi Kontan Bisnis CNBC Indonesia Republika Mining.com

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Daily News Update Page 2

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Geo Energy hits coal reserves target, so does not have to make mandatory offer for notes Coal India posts 8% offtake growth in November Lower coal volumes to hit QLD royalty revenue Largest gold mines in West Africa in Q2 2020 China to Allow Australian Coal Cargo Ashore Despite Ban New ICMM reports reinforce mining’s role in economic development of host countries

The Business Times The Economic Times

Australian Mining Kitco News Investing.com Int'l Mining

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Daily News Update Page 3

Global Demand Raised,

December HBA Raised to US$59.65/Ton

Wilda Asmarini, CNBC Indonesia

MINISTER of Energy and Mineral

Resources (ESDM) Arifin Tasrif set the reference coal price (HBA) in December 2020 to increase to US$ 59.65 per ton from US$ 55.71 per ton in November 2020.

The Head of the Communication Bureau, Public Information Services and Cooperation (KLIK) of the Ministry of ESDM, Agung Pribadi, revealed that the cause of the increase in the price of Indonesian coal commodities cannot be separated from the increasing global market demand.

"Japan, South Korea and India are intensively importing coal from Indonesia to meet the needs of their domestic industry. This indicates the recovery of industry in these countries," Agung said as quoted by the ministry's official statement, Wednesday (02/12/2020 ).

Another factor that has contributed to the strengthening of the HBA is the signing of an agreement to increase the agreement for Indonesia's coal export to China.

"The two causes have also strengthened positive sentiment towards rising coal prices," said Agung.

In the last three months the movement of the HBA has continued to creep up after almost the entire year experiencing a tremendous sluggishness and contraction due to the Covid-19 pandemic. In October 2020,...

Permintaan Global Naik, HBA

Desember Naik Jadi US$59,65/Ton

Wilda Asmarini, CNBC Indonesia

MENTERI Energi dan Sumber Daya

Mineral (ESDM) Arifin Tasrif menetapkan harga batu bara acuan (HBA) pada Desember 2020 naik menjadi US$ 59,65 per ton dari US$ 55,71 per ton pada November 2020.

Kepala Biro Komunikasi, Layanan Infor-masi Publik dan Kerja Sama (KLIK) Kementerian ESDM Agung Pribadi meng-ungkapkan, penyebab kenaikan harga komoditas batu bara Indonesia tak lepas dari meningkatnya permintaan pasar global.

"Jepang, Korea Selatan dan India sedang gencar-gencarnya melakukan impor batu-bara dari Indonesia guna memenuhi kebutuhan industri domestik mereka. Ini menandakan pulihnya industri di negara-negara tersebut," kata Agung seperti dikutip dari keterangan resmi kemen-terian, Rabu (02/12/2020).

Faktor lain yang turut memicu penguatan HBA adalah adanya penandatanganan kesepakatan peningkatan kesepakatan ekspor batu bara Indonesia ke Tiongkok.

"Dua penyebab tadi turut memperkuat sentimen positif terhadap kenaikan harga batu bara," tegas Agung.

Dalam tiga bulan terakhir pergerakan HBA terus merangkak naik setelah hampir sepanjang tahun mengalami kelesuan dan kontraksi yang luar biasa akibat pandemi Covid-19. Tercatat pada Oktober 2020...

Daily News Update Page 4

In October 2020, coal prices were recorded at US$ 51 per ton, up from the previous month, September which only touched the figure of US$ 49.42 per ton.

"Overall, the average HBA in 2020 is US$ 58.17 per ton," he said.

Since Covid-19 was declared a global pandemic, the movement of HBA has fluctuated. HBA had strengthened by 0.28% to US$ 67.08 per ton in March 2020, compared to February 2020 which was pegged at US$ 66.89 per ton and January at US$ 65.93 per ton.

However, 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, the HBA fell to US$ 52.98 per ton, July US$ 52.16 per ton, and August US$ 50.34 per ton. It fell in September to US$ 49.42 per ton, then the HBA strengthened again in October to US$ 51 per ton.

For information, the HBA itself is obtained from the average index of the 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. (wia)

Tercatat pada Oktober 2020 harga batu bara di angka US$ 51 per ton, naik dari bulan sebelumnya, September yang hanya menyentuh angka US$ 49,42 per ton.

"Secara menyeluruh, rata-rata HBA pada 2020 yaitu US$ 58,17 per ton," ujarnya.

Semenjak Covid-19 ditetapkan sebagai pandemi global, pergerakan HBA memang mengalami fluktuasi. HBA sempat menguat sebesar 0,28% ke angka US$ 67,08 per ton pada Maret 2020, dibandingkan Februari 2020 yang dipatok US$ 66,89 per ton dan Januari pada angka US$ 65,93 per ton.

Namun, HBA terus mengalami pelemahan ke angka US$ 65,77 per ton pada April dan US$ 61,11 per ton pada Mei. Selanjutnya, pada Juni 2020, HBA turun ke angka US$ 52,98 per ton, Juli US$ 52,16 per ton, dan Agustus US$ 50,34 per ton. Sempat turun pada September menjadi US$ 49,42 per ton, lalu HBA kembali menguat pada Oktober menjadi sebesar US$ 51 per ton.

Sebagai informasi, HBA sendiri 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. (wia)

About the Freeport and Amman Mineral copper smelters, IMA

and AP3I said Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

THE CONSTRUCTION of a new copper

smelter in Indonesia is still in the spotlight. In addition to trade-off regarding...

Soal smelter tembaga Freeport dan Amman Mineral, begini

kata IMA dan AP3I Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

PEMBANGUNAN smelter tembaga baru di

Indonesia masih menjadi sorotan. Selain ada tarik ulur soal...

Daily News Update Page 5

In addition to trade-off regarding location, economy, and capacity, the smelter operating schedule is threatened with being delayed because project work is hampered by the Covid-19 pandemic.

The PT Freeport Indonesia (PTFI) copper smelter project has even raised a number of options. There are at least two main options currently being negotiated by PTFI with the government.

First, cutting the capacity of PTFI's new copper smelter, which is planned to be located in JIIPE, Gresik, East Java, from 2 million tons of concentrate to 1.7 million tons. As a substitute for the cuts, PTFI will increase the capacity of the existing smelter at PT Smelting by 300,000 tons. Thus, the total additional capacity remains 2 million tons, to accommodate PTFI copper concentrate so that it can be processed domestically.

Second, by building a new smelter in Weda Bay with Tsingshan. As is known, Weda Bay is currently an integrated nickel smelter area. If this option is chosen, companies from China will strengthen their dominance in downstream mining in Indonesia, following the smelters that are booming in nickel and bauxite commodities.

The Indonesian Mining Association (IMA) also opened their voices regarding this matter. IMA Acting Executive Director, Djoko Widajatno, assessed that it did not matter which options the government would agree to and approve of.

Most importantly, the downstream obligations under the Minerba Law can be fulfilled. However, Djoko highlighted that if he cooperated with Tsingshan, Freeport could solve the often-raised economic problems. In addition, if it is integrated with the downstream nickel in its derivative products,...

Selain ada tarik ulur soal lokasi, keeko-nomian, dan kapasitas, jadwal peng-operasian smelter terancam mundur lantaran pengerjaan proyek terhambat pandemi covid-19.

Proyek smelter tembaga PT Freeport Indonesia (PTFI) bahkan memunculkan sejumlah opsi. Paling tidak ada dua opsi utama yang sedang dinegosiasikan PTFI bersama pemerintah.

Pertama, memangkas kapasitas smelter tembaga baru PTFI yang rencananya berlokasi di JIIPE, Gresik, Jawa Timur, dari semula 2 juta ton konsentrat menjadi 1,7 juta ton. Sebagai ganti pemangkasan itu, PTFI akan meningkatkan kapasitas smelter eksisting di PT Smelting sebanyak 300.000 ton. Sehingga, total tambahan kapasitas tetap 2 juta ton, untuk menampung konsentrat tembaga PTFI agar bisa diolah di dalam negeri.

Kedua, dengan membangun smelter baru di Weda Bay bersama Tsingshan. Seperti diketahui, Weda Bay saat ini merupakan kawasan smelter nikel terintegrasi. Jika opsi ini yang dipilih, maka perusahaan asal China kian mengukuhkan dominasinya dalam hilirisasi tambang di Indonesia, menyusul smelter yang marak di komo-ditas nikel dan bauksit.

Asosiasi Pertambangan Indonesia atau Indonesia Mining Association (IMA) pun buka suara terkait hal tersebut. Pelaksana Harian Direktur Eksekutif IMA Djoko Widajatno menilai, tidak masalah opsi mana saja yang akan disepakati dan disetujui oleh pemerintah.

Yang terpenting, kewajiban hilirisasi sesuai UU Minerba bisa terlaksana. Namun Djoko menyoroti, jika jadi bekerjasama dengan Tsingshan, maka Freeport bisa mengatasi masalah keekonomian yang sering di-dengungkan. Selain itu, jika terintegrasi dengan hilirisasi nikel dalam produk turunannya,...

Daily News Update Page 6

In addition, if it is integrated with the down-stream nickel in its derivative products, the development of the base metal industry in the country can be accelerated. As a result, state income can increase.

"The hope is that the basic (metal) industry in Indonesia can soon be started by using metals that come from within the country. So that all concentrates can be processed in Indonesia, where the added value is more beneficial," said Djoko to Kontan.co.id, Wednesday (2/12).

As for China's dominance in the down-stream mineral sector, Djoko considered that this condition would not matter as long as the rules were enforced in a firm and transparent manner. "Prepare regulations that are transparent, accountable, so that (negative impacts) can be avoided. In cases of positive or negative sentiment, we will evaluate again," Djoko continued.

Meanwhile, Prihadi Santoso, Chairman of the Association of Indonesian Processing and Refining Companies (AP3I), disagrees that the construction of PTFI's new copper smelter is located in Weda Bay, Halmahera. According to him, the most ideal location to build a smelter is near PT Smelting as an existing smelter.

Prihadi still proposes that PTFI's new copper smelter be located in the Petrokimia area, Gresik, East Java. That way, smelter operation can be more integrated. In addition, it can economically reduce the intermediate costs of the basic infra-structure that is already available.

"So that the benefits can be optimal. Choosing the location of 1.7 million tonnes (new smelters) if not calculated carefully can lead to disaster. It is even more efficient if 1.7 million tonnes (built) in Petrochemical land, because 60% of the land and infra-structure are ready," said Prihadi.

Selain itu, jika terintegrasi dengan hilirisasi nikel dalam produk turunannya, maka pembangunan industri logam dasar di dalam negeri bisa terakselerasi. Alhasil, pendapatan negara bisa meningkat.

"Harapannya adalah industri (logam) dasar di Indonesia segera dapat dimulai dengan memakai logam yang berasal dari dalam negeri. Sehingga seluruh konsentrat dapat diolah di Indonesia, dimana nilai tambah-nya lebih memberikan manfaat," kata Djoko kepada Kontan.co.id, Rabu (2/12).

Adapun terkait dengan dominasi China di sektor hilirisasi mineral, Djoko menilai bahwa kondisi itu tak menjadi soal selama aturan di jalankan secara tegas dan transparan. "Persiapkan peratuan yang transparan, akuntable, sehingga (dampak negati f) dapat dihindarkan. Perkara sentimen positif atau negatif, kita evaluasi lagi," sambung Djoko.

Sementara itu, Ketua Umum Asosiasi Perusahaan Pengolahan dan Pemurnian Indonesia (AP3I) Prihadi Santoso tak sependapat jika pembangunan smelter tembaga baru PTFI berlokasi di Weda Bay, Halmahera. Menurutnya, lokasi paling ideal untuk membangun smelter adalah didekat PT Smelting sebagai smelter eksisting.

Prihadi tetap mengusulkan agar smelter tembaga baru PTFI bisa berlokasi di kawasan Petrokimia, Gresik, Jawa Timur. Dengan begitu, pengoperasian smelter bisa lebih terintegrasi. Di samping itu, secara keekonomian bisa menekan biaya lantara infrastruktur dasar yang sudah tersedia.

"Sehingga kemanfaatannya bisa optimal. Pemilihan lokasi 1,7 juta ton (smelter baru) kalau tidak diperhitungkan dengan cermat bisa membawa petaka. Lebih efisien lagi jika 1,7 juta ton (dibangun) di lahan Petrokimia, karena lahan dan infra-struktur 60% sudah siap," sebut Prihadi.

Daily News Update Page 7

Apart from PTFI, another company that is currently building a copper smelter is PT Amman Mineral Nusa Tenggara (AMNT). Quoting Kontan.co.id notes, based on the results of the 6-month physical progress verification which took place from February to July 2020, the progress of the construction of AMNT's copper concentrate refining facilities into copper metal has reached 25.546% from the initial plan of 26.893%.

In the same period, the progress of the construction of AMNT's anode sludge refining facility into precious metal has reached 27% from the original plan of 28.199%. Head of Corporate Communi-cation for Amman Mineral Nusa Tenggara, Kartika Oktaviana, said that Amman Mineral is still waiting for the Ministry of ESDM' directive regarding the request to delay the completion of the smelter project for 12 months - 18 months from the initial target set by the government.

If it is delayed, the smelter project will be delayed from 2022 to 2023. When operating, the smelter will have an input capacity of 1 million tonnes and can be increased to 1.6 million tonnes or 2 million tonnes per year.

Regarding the Amman Mineral copper smelter , Prihadi Santoso suggested cooperation. Prihadi's proposal was for Amman to partner with domestic mining companies. "Amman should conduct a review, initiate cooperation, for example with Medeka Smelter in NTT. For the economy, it could be better, and efficiency in the use of state natural resources," said Prihadi.

Meanwhile, according to Djoko Widajatno, the completion of the Amman Mineral smelter could be delayed from the target due to Covid-19.

Selain PTFI, perusahaan lain yang tengah membangun smelter tembaga adalah PT Amman Mineral Nusa Tenggara (AMNT). Mengutip catatan Kontan.co.id, berdasar-kan hasil verifikasi kemajuan fisik 6 bulanan yang berlangsung dari Februari sampai Juli 2020, kemajuan pembangunan fasilitas pemurnian konsentrat tembaga menjadi logam tembaga AMNT telah men-capai 25,546% dari rencana awal sebesar 26,893%.

Di periode yang sama, kemajuan pem-bangunan fasilitas pemurnian lumpur anoda menjadi precious metal AMNT telah mencapai 27% dari rencana awal sebesar 28,199%. Head of Corporate Communi-cation Amman Mineral Nusa Tenggara Kartika Oktaviana menyebut, pihak Amman Mineral hingga kini masih me-nunggu arahan Kementerian ESDM terkait permohonan penundaan penyelesaian proyek smelter selama 12 bulan-18 bulan dari target awal yang ditetapkan peme-rintah.

Jika jadi ditunda, maka proyek smelter ini akan mundur dari 2022 menjadi tahun 2023 mendatang. Ketika beroperasi, smelter tersebut akan memiliki kapasitas input sebesar 1 juta ton dan dapat ditingkatkan hingga 1,6 juta ton atau 2 juta ton per tahun.

Mengenai smelter tembaga Amman Mineral, Prihadi Santoso mengusulkan agar bisa melakukan kerjasama. Usulan Prihadi, Amman bisa menggandeng mitra perusahaan tambang dalam negeri. "Sebaiknya Amman buat kaji ulang, merintis kerjasama, misalnya dengan Medeka Smelter di NTT. Untuk ke-ekonomian bisa lebih baik, dan efisiensi pemakaian SDA negara," sebut Prihadi.

Sedangkan menurut Djoko Widajatno, penyelesaian smelter Amman Mineral bisa jadi akan mundur dari target lantaran covid-19.

Daily News Update Page 8

"IMA will help Amman in accordance with its main tasks and functions. It will also bridge the resolution of problems due to existing regulations in IMA members," Djoko concluded.

"IMA akan membantu Amman sesuai tupoksi (tugas, pokok dan fungsi). Juga menjembatani penyelesaian permasalahan akibat peraturan yang ada di Anggota IMA," pungkas Djoko.

Inalum is Optimistic to Maintain

Production in a Pandemic Period Editor: Hiru Muhammad

PT INDONESIA Asahan Aluminum

(Persero) or Inalum again held friendly

meetings with Aluminum customers

(Customer Gathering) virtually via

teleconference zoom. This activity, which is

routinely carried out every year, is slightly

different because it is carried out online by

paying attention to the New Habit

Adaptation protocol in the midst of a

pandemic. No less than 90 Inalum loyal

customer companies from Jakarta, Medan,

Surabaya and surrounding areas attended

the event.

Inalum Managing Director Oggy Achmad

Kosasih in his remarks expressed his hopes

regarding aluminum production in the

midst of a pandemic. Despite the tough

challenges, Inalum is optimistic that he can

continue to maintain production and be

able to carry out strategic projects well.

"With this virtual customer gathering with

the theme "Stronger Together", we hope

that all of us can pass Covid-19 well so that

our economy can revive and pray for all of

Inalum's strategic projects to run smoothly

so that Inalum Aluminum production can

increase," said Oggy.

Inalum Optimistis Pertahankan

Produksi di Masa Pandemi Redaksi: Hiru Muhammad

PT INDONESIA Asahan Aluminium

(Persero) atau Inalum kembali melak-sanakan kegiatan temu ramah dengan pelanggan Aluminium (Customer Gathering) secara virtual via tele-conference zoom. Kegiatan yang rutin dilaksanakan setiap tahunnya ini, ter-selenggara sedikit berbeda karena dilak-sanakan via daring dengan memperhatikan protokol Adaptasi Kebiasaan Baru di tengah pandemi. Tidak kurang dari 90 perusahaan pelanggan setia Inalum dari Jakarta, Medan, Surabaya dan sekitarnya ikut hadir dalam kegiatan tersebut.

Direktur Pelaksana Inalum Oggy Achmad Kosasih dalam sambutannya meng-ungkapkan harapannya terkait produksi aluminium di tengah pandemi. Meski mengalami tantangan yang berat, Inalum optimistis bisa terus mempertahankan produksi dan mampu menjalankan proyek strategis dengan baik.

"Dengan virtual customer gathering yang bertemakan "Stronger Together" ini, kami berharap kita semua dapat melewati Covid-19 dengan baik sehingga per-ekonomian kita dapat bangkit kembali dan mohon doanya agar seluruh proyek strategis Inalum dapat berjalan dengan lancar sehingga produksi Aluminium Inalum dapat meningkat," kata Oggy.

Daily News Update Page 9

On the same occasion, the CEO of MIND ID Group Orias Petrus Moedak also said that

Inalum is not only continuing to strive to increase its production. In the long term,

Inalum is also building business integration from upstream to downstream

by combining all activities from bauxite mining to aluminum production. The hope

is that this strategy can provide added value to Inalum's products in the future.

"Inalum will increase its production

gradually from 250 thousand tons/year to 1 million tons/year in 2030. In addition,

Inalum will integrate from upstream to downstream by combining all activities

from bauxite mining, alumina refinery and aluminum molding and will support the

potential. development of electric cars," said Orias.

This customer gathering event also presented four expert speakers in the economic and aluminum industry to convey their respective ideas in a webinar discussion with the theme "Challenges and Opportunities of the Aluminum Industry in a Pandemic Era. Covid-19 ". The webinar, moderated by Cheryl Tanzil, aims to provide a point of view for loyal customers of Inalum regarding the prospects and challenges of the aluminum industry going forward.

The four speakers of the Webinar are Dr. Aviliani SE, MSi as Economic Observer, Rebecca Zhou as Senior Analyst at CRU, Dr. Sri Bimo Pratomo, ST, M. Eng as Head of Sub Directorate of Non-Iron Metal Industry, Director General of Ilmate, Ministry of Industry and Drs. Hestu Yoga Saksama, MBT, Ak as Director of Counseling, Services and Public Relations at the Directorate General of Taxes, Ministry of Finance.

Dalam kesempatan yang sama, CEO Group MIND ID Orias Petrus Moedak juga Mengatakan bahwa Inalum tidak hanya terus berupaya untuk meningkatkan produksinya. Secara jangka panjang, Inalum juga tengah membagun integrasi bisnis dari hulu ke hilir dengan meng-gabungkan seluruh aktifitas dari penam-bangan bauksit hingga produksi aluminium. Harapannya, strategi ini dapat memberikan nilai tambah terhadap produk Inalum di masa yang akan datang.

"Inalum akan meningkatkan produksinya secara bertahap dari 250 ribu Ton/Tahun menjadi 1 juta Ton/Tahun di 2030. Selain itu, Inalum akan melakukan integrasi dari hulu ke hilir dengan menggabungkan seluruh aktifitas dari penambangan bauxite, refinery alumina dan pencetakan aluminium serta akan mendukung potensi pengembangan mobil listrik," tutur Orias.

Acara customer gathering ini juga meng-hadirkan empat pembicara ahli di bidang ekonomi dan industri aluminium untuk menyampaikan gagasan mereka masing-masing dalam diskusi webinar bertema "Tantangan dan Peluang Industri Aluminium di Masa Pandemi Covid-19". Webinar yang dimoderatori oleh Cheryl Tanzil ini bertujuan untuk memberikan sudut pandang bagi pelanggan setia Inalum terkait prospek dan tantangan industri aluminium ke depan.

Keempat pembicara Webinar adalah Dr. Aviliani SE, MSi selaku Pengamat Ekonomi, Rebecca Zhou selaku Senior Analyst CRU, Dr. Sri Bimo Pratomo, ST, M. Eng selaku Kepala Sub Direktorat Industri Logam Bukan Besi, Dirjen Ilmate Kementerian Perindustrian dan Drs. Hestu Yoga Saksama, MBT, Ak selaku Direktur Penyuluhan, Pelayanan, dan Humas Ditjen Pajak Kementerian Keuangan.

Daily News Update Page 10

In general, the speakers said that the Indonesian economy will grow, realistically by 2.8 percent in 2021. The aluminum sector is in a moderate position, still good even though profits are down, represented by the automotive sector that will grow gradually and recover well in 2022.

In addition, aluminum demand is also projected to increase. China's aluminum demand is expected to grow 1.8 percent (> 0.66 tons) in 2020 and again grow 4.5 percent (> 1.66 tons) in 2021. Meanwhile, aluminum demand ex. China (excluding China) fell 13.1 per cent (3.7 tonnes) in 2020 and will grow by 10.2 per cent (2.5 tonnes) in 2021. With the prediction of LME 3 Monthly will reach $ 1828/t by 2021.

The webinar session was then closed with comments from market players, namely Ir. Feri Hendriyanto as Director of Business Development & Quality, Safety, Health & Environment of PT Waskita Karya (Persero) representing the construction sector and Kukuh Kumara as General Secretary of GAIKINDO from the automotive sector.

From the construction sector, it was explained that there was a decrease in revenue by 30 to 45 percent. In particular, PT Waskita Karya experienced a 35 percent decrease in revenue in 2020 compared to 2019. Meanwhile for 2021, based on predictions from the Ministry of National Development Planning and the Ministry of Finance, the prospect of market growth in the construction sector will increase by 5.3 to 6.5 percent.

In the automotive sector, Kukuh Kumara as General Secretary of Gaikindo said that motor vehicle sales decreased drastically by 50.7 percent in 2020 compared to 2019, although it is slow but optimistic that motor vehicle sales will improve in 2021.

Secara umum, para pembicara menyampai-kan bahwa perekonomian Indonesia akan tumbuh, realistis sebesar 2,8 persen pada tahun 2021. Sektor aluminium berada pada posisi moderat, tetap bagus walau laba turun, diwakili sektor otomotif yang akan tumbuh secara bertahap dan recovery secara baik pada tahun 2022.

Selain itu, permintaan aluminium juga diproyeksi mengalami peningkatan. Permintaan aluminium China jdipaparkan tumbuh 1,8 persen (>0,66 ton) pada tahun 2020 dan kembali tumbuh 4,5 persen (>1,66 ton) pada tahun 2021. Sementara itu, permintaan aluminium ex. China (diluar China) turun 13,1 persen (3,7 ton) pada tahun 2020 dan akan tumbuh sebesar 10,2 persen (2,5 ton) pada tahun 2021. Dengan prediksi LME 3 Bulanan akan mencapai $1828/t pada tahun 2021.

Sesi webinar kemudian ditutup dengan tanggapan dari para pelaku pasar yakni Ir. Feri Hendriyanto selaku Direktur Pengem-bangan Bisnis & Quality, Safety, Health & Environment PT Waskita Karya (Persero) mewakili sektor konstruksi dan Kukuh Kumara selaku Sekretaris Umum GAIKINDO dari sektor automotif.

Dari sektor konstruksi dipaparkan adanya penurunan revenue sebesar 30 hingga 45 persen. Khusus di PT Waskita Karya meng-alami penurunan revenue sebesar 35 persen pada tahun 2020 dibanding 2019. Semen-tara untuk tahun 2021 berdasarkan prediksi Kementrian Bappenas dan Kementrian Keuangan, prospek pertumbuhan pasar sektor konstruksi akan naik 5,3 hingga 6,5 persen.

Di bidang atomotif, Kukuh Kumara selaku Sekretaris Umum Gaikindo menyampaikan bahwa penjualan kendaraan bermotor menurun drastis sebesar 50,7 persen pada tahun 2020 dibanding 2019, walaupun lambat akan tetapi optimistis penjualan kendaraan

bermotor akan membaik pada 2021.

Daily News Update Page 11

New PLTU Project in China Threatened with Restriction, Coal Prices Continue to Rally

Finna U. Ulfah

THE DEVELOPMENT of coal-fired power

plant or PLTU projects in China is predicted to get tighter in 2026 along with China's mission to become a carbon-free country.

Yang Su, senior researcher at StateGrid of China Corp.'s Energy Research Institute, said that the development of a new PLTU project in China is predicted to be limited in the next 6 years if the country continues to pursue its target of becoming a carbon-free country by 2060.

"Coal-fired power development faces political calls for an energy transition, energy reform, and peak emissions will face tighter restrictions, both on capacity and new project development," Yang said as quoted by Bloomberg, Wednesday (2/12/2020).

He assessed that China might still be able to add 100 gigawatts to 200 gigawatts of new PLTUs by 2025, before finally imposing tighter restrictions on the development of new projects.

For information, at the general session of the United Nations (UN) in September 2020, Chinese President Xi Jinping surprisingly announced China's plan to become a carbon-free country in 2060.

Although Xi Jinping did not elaborate on the plan, Xi's announcement implied that China's emissions would have to fall sharply to reach net zero in less than 30 years after reaching their peak in 2030.

Proyek PLTU Baru di China Terancam Dibatasi, Harga Batu

Bara Tetap Reli Finna U. Ulfah

PENGEMBANGAN proyek pembangkit

listrik tenaga uap atau PLTU dengan batu bara di China diprediksi semakin ketat pada 2026 seiring dengan misi Negeri Panda itu menjadi negara bebas karbon.

Peneliti senior di StateGrid of China Corp.'s Energy Research Institute Yang Su mengatakan bahwa pengembangan proyek PLTU baru di China diprediksi akan di-batasi dalam 6 tahun ke depan jika negera itu tetap ingin mengejar target menjadi negara bebas karbon pada 2060.

“Pengembangan tenaga batu bara meng-hadapi seruan politik untuk transisi energi, reformasi energi, dan puncak emisi akan menghadapi pembatasan yang lebih ketat, baik terkait kapasitas dan pengembangan proyek baru," kata Yang seperti dikutip dari Bloomberg, Rabu (2/12/2020).

Dia menilai China mungkin masih dapat menambah 100 gigawatt hingga 200 gigawatt PLTU baru hingga 2025, sebelum akhirnya melakukan pembatasan pengem-bangan proyek baru yang lebih ketat.

Untuk diketahui, dalam sidang umum Perserikatan Bangsa-Bangsa (PBB) pada September 2020, Presiden China Xi Jinping secara mengejutkan mengumumkan ren-cana China sebagai negara bebas karbon pada 2060.

Meskipun Xi Jinping tidak menjelaskan secara rinci rencana itu, pengumuman Xi menyiratkan bahwa emisi China harus turun tajam untuk mencapai nol bersih dalam waktu kurang dari 30 tahun setelah mencapai puncaknya pada 2030.

Daily News Update Page 12

In fact, until now China is the largest energy user and emitter of greenhouse gases in the world.

Meanwhile, Senior Advisor to China Huadian Corp. Chen Zongfa said that China should not stop investing in coal completely.

He explained that to achieve a carbon-free country, China must continue to offer compensation for small and inefficient coal plants to shut down.

"However, the Chinese government must also carefully review and implement the new energy policy. The government must be able to give better preferences to people who live and live near coal mines,” said Chen.

Accelerating the l imitation of PLTU projects in China could have a negative impact on coal prices because it can reduce global consumption considering that the Bamboo Curtain country is the world's largest importer and exporter.

Nevertheless, coal prices seem to be continuing their relationship amidst this negative sentiment. Based on Bloomberg data, on Wednesday trade (2/12/2020) until 13.53 WIB, the price of thermal coal on the Zhengzhou stock exchange for the January 2021 contract was still in the green zone, strengthening 3.75 percent to 697.4 yuan per tonne. During the current year 2020, prices have increased by 17.47 percent.

Meanwhile, the Newcastle coal price contract for January 2021 at the close of trading on Tuesday (12/1/2020) was at the level of US$ 69.8 per ton, a correction of 0.21 percent. However, in the last six months the price has skyrocketed by up to 16.24 percent . Edi tor: Ap ri anto C ahyo

Nugroho

Padahal, hingga saat ini China adalah pengguna energi dan penghasil gas rumah kaca terbesar di dunia.

Sementara itu, Penasihat Senior China Huadian Corp. Chen Zongfa mengatakan bahwa China seharusnya tidak berhenti berinvestasi di batu bara sepenuhnya.

Dia menjelaskan bahwa untuk mencapai negara bebas karbon, China harus terus menawarkan kompensasi untuk pem-bangkit batu bara kecil dan tidak efisien untuk ditutup.

“Namun, Pemerintah China juga harus hati-hati meninjau dan implementasi kebijakan energi yang baru itu. Pemerintah harus mampu memberikan preferensi yang lebih baik terhadap masyarakat yang tinggal dan hidup di dekat tambang batu bara,” ujar Chen.

Percepatan pembatasan proyek PLTU di China dapat berdampak negatif terhadap harga batu bara karena dapat menekan konsumsi global mengingat Negeri Tirai Bambu itu merupakan importir dan eksportir terbesar dunia.

Kendati demikian, harga batu bara tampak masih melanjutkan relinya di tengah terpaan sentimen negatif itu.

Berdasarkan data Bloomberg, pada perda-gangan Rabu (2/12/2020) hingga pukul 13.53 WIB harga batu bara thermal di bursa Zhengzhou untuk kontrak Januari 2021 masih berada di zona hijau, menguat 3,75 persen ke level 697,4 yuan per ton. Sepanjang tahun berjalan 2020, harga telah naik hingga 17,47 persen.

Sementara itu, harga batu bara Newcastle kontrak Januari 2021 pada penutupan perdagangan Selasa (1/12/2020) berada di level US$69,8 per ton, terkoreksi 0,21 persen. Namun, dalam enam bulan terakhir harga telah meroket hingga 16,24 persen. Editor : Aprianto Cahyo Nugroho

Daily News Update Page 13

Freeport Submits Decision on Partner Engagement and Change

of Smelter Location to the Government

Rio Indrawan

PT FREEPORT Indonesia claims to remain

committed to building a processing and refining facility or smelter. Riza Pratama, Vice President of Corporate Communi-cation for Freeport Indonesia, said that Freeport's commitment to build a smelter has not changed. The current development with the discourse to involve partners is a push or initiative from the Indonesian government.

"This (cooperating with partners from China) is an option prepared by the government and the choice will be decided by the government," said Riza to Dunia Energi, Wednesday (2/12).

This also applies to the plan to relocate the smelter location which was previously determined to be built in Gresik, East Java. "It's true (the location) of the decision is in the hands of the government," said Riza.

Currently, the management, said Riza, is stil l doing positive and negative calculations when it comes to partnering in smelter construction. "It's still work in progress," he said.

Previously, information circulated that Freeport Indonesia was encouraged to cooperate with Chinese company Tsingshan Steel to build a copper smelter, which is required by the government for the Grasberg mining company.

Luhut Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment in an interview with Asia Times revealed that...

Freeport Serahkan Keputusan Keterlibatan Mitra dan

Perubahan Lokasi Smelter ke Pemerintah

Rio Indrawan

PT FREEPORT Indonesia mengklaim tetap

berkomitmen untuk membangun fasilitas pengolahan dan pemurnian atau smelter. Riza Pratama, Vice President Corporate Communication Freeport Indonesia, meng-ungkapkan komitmen Freeport untuk membangun smelter tidak berubah. Adapun perkembangan yang terjadi sekarang dengan wacana untuk melibatkan mitra adalah dorongan atau inisiatif dari peme-rintah Indonesia.

“Ini (menggandeng mitra dari China) opsi yang disiapkan pemerintah dan pilihannya akan diputuskan oleh pemerintah,” kata Riza kepada Dunia Energi, Rabu (2/12).

Hal itu juga berlaku dengan adanya rencana pemindahan lokasi smelter yang sebelum-nya sudah ditetapkan akan dibangun di Gresik, Jawa Timur. “Benar (lokasi) kepu-tusannya di tangan pemerintah,” tukas Riza.

Saat ini manajemen kata Riza masih melakukan kalkulasi positif negatif ketika harus bermitra dalam pembangunan smelter. “Masih work in progress,” katanya.

Sebelumnya beredar informasi bahwa Freeport Indonesia didorong untuk bekerja sama dengan perusahaan asal China Tsingshan Steel untuk membangun smelter tembaga yang diwajibkan pemerintah kepada perusahaan pengelola tambang Grasberg itu.

Luhut Binsar Pandjaitan, Menteri Koor-dinator Bidang Kemaritiman dan Investasi dalam sesi wawancara dengan Asia Times mengungkapkan...

Daily News Update Page 14

with Asia Times revealed that the cooperation agreement between Freeport Indonesia and the steel company from the country of the bamboo curtain is expected to be completed in March 2021. Later, if the agreement is reached, the smelter will be built in Weda Bay, Halmahera.

"We are happy with the agreement, but the two parties are still in detailed discussion," said Luhut. Freeport Indonesia previously officially proposed to postpone the construction of a smelter due to the Covid-19 pandemic which was claimed to have hampered the smelter construction process in Gresik. Recently, the manage-ment often echoed the losses suffered by the company if they continued to build the smelter. (RI)

dengan Asia Times mengungkapkan kese-pakatan kerja sama Freeport Indonesia dan perusahaan baja asal negeri tirai bambu itu diharapkan bisa rampung pada Maret 2021. Nantinya jika kesepakatan tercapai maka smelter akan dibangun di Teluk Weda, Halmahera. “Kami senang dengan kesepakatan tersebut, tetapi kedua belah pihak masih dalam pembahasan rinci,” kata Luhut.

Freeport Indonesia sebelumnya secara resmi mengajukan penundaan pem-bangunan smelter akibat pandemi Covid-19 yang diklaim telah menghambat proses pengerjaan smelter di Gresik. Belakangan malah manajemen kerap kali menggaung-kan kerugian yang diderita perusahaan jika tetap membangun smelter. (RI)

Mining service contractors are still waiting and seeing in response to

the increase in coal exports Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

MINING service contractors are stil l

waiting and seeing in response to the trade agreement to increase coal exports from Indonesia to China. In the midst of current pressure from the coal industry, mining service business players hope to be able to take advantage of this opportunity.

Executive Director of the Indonesian Mining Services Association (Aspindo) Bambang Tjahjono revealed that currently the mining services sector was affected by the Covid-19 pandemic along with the global market decline. The effect was greatest on contractors in small , low calorie mines.

Kontraktor jasa pertambangan masih wait and see menyikapi peningkatan ekspor batubara Reporter: Ridwan Nanda Mulyana | Editor:

Handoyo

KONTRAKTOR jasa pertambangan masih wait and see menyikapi kesepakatan dagang untuk meningkatkan ekspor batu-bara dari Indonesia ke China. Di tengah tekanan industri batubara seperti sekarang, pelaku usaha jasa pertambangan berharap bisa ikut mencuil cuan dari peluang tersebut.

Direktur Eksekutif Asosiasi Jasa Pertam-bangan Indonesia (Aspindo) Bambang Tjahjono membeberkan, saat ini sektor jasa pertambangan terdampak pandemi covid-19 seiring dengan penurunan pasar secara global. Efek paling besar terasa pada kontraktor di tambang kecil dan kalori rendah.

Daily News Update Page 15

"For large mines and large contractors, what feels hard is managing manpower, because they have to do a lockdown. But the rotation in the end still has to be done by complying with health protocols," said Bambang when contacted by Kontan.co.id, Wednesday (2/12) .

The existence of an understanding (MoU) between the Indonesian Coal Mining Association (APBI-ICMA) and CCTDA (China Coal Transportation and Distribution) to increase thermal coal exports is a positive prospect for the recovery of the mining industry next year.

However, this positive sentiment has not automatically affected the mining services sector. The reason is, there are still a number of conditions that must be observed. Moreover, the commitment between APBI and CCTDA is still in the form of an MoU which depends on how the agreement goes.

Apart from the MoU, Bambang explained that there are other factors that must be considered, ranging from global to domestic factors. Such as the relationship between China and Australia in the coal trade, US policy sentiment after the presidential election, to the global economic recovery and market demand for energy.

"Don't forget, this is only an MoU, it can still change. (Mining service contractors) depending on the customer. Short-term increases will certainly occur, especially customers who export to China. But maybe there is not much investment added because many tools are still on standby, which can be activated," said Bambang.

In addition to global factors, the prospects for the mining industry next year are still waiting and seeing, waiting for the issuance of a Government Regulation (PP) as a derivative rule of Law Number 3 of 2020 aka the Minerba Law.

"Pada tambang besar dan kontraktor besar, yang terasa berat adalah pengelolaan man power, karena harus melakukan lockdown. Tetapi rotasi pada akhirnya tetap harus dilakukan dengan mematuhi protokol kesehatan," sebut Bambang saat dihubungi Kontan.co.id, Rabu (2/12).

Adanya kesepahaman (MoU) antara Asosiasi Pertambangan Batubara Indonesia (APBI-ICMA) dengan CCTDA (China Coal Transportation and Distribution) untuk meningkatkan ekspor batubara thermal menjadi prospek positif untuk pemulihan industri pertambangan di tahun depan.

Kendati begitu, sentimen positif itu belum secara otomatis berdampak terhadap sektor jasa pertambangan. Pasalnya, masih ada sejumlah kondisi yang harus diamati Apalagi, komitmen antara APBI dan CCTDA masih berupa MoU yang tergantung bagaimana kesepakatan lanjutannya.

Di luar MoU tersebut, Bambang men-jelaskan bahwa ada faktor lain yang mesti diperhatikan, mulai dari faktor global hingga dalam negeri. Seperti relasi China dan Australia dalam perdagangan batubara, sentimen kebijakan Amerika Serikat pasca Pilpres, hingga pemulihan ekonomi global dan kebutuhan pasar terhadap energi.

"Jangan lupa, ini hanya MoU, masih bisa berubah. (Kontraktor jasa pertambangan) tergantung customernya. Peningkatan jangka pendek pasti terjadi terutama customer yang ekspor ke China. Tapi mungkin belum banyak menambah investasi karena banyak alat yang masih standby, yang bisa diaktifkan," terang Bambang.

Selain faktor global, prospek industri per-tambangan tahun depan juga masih wait and see, menunggu terbitnya Peraturan Pemerintah (PP) sebagai aturan turunan Undang-Undang Nomor 3 Tahun 2020 alias UU Minerba.

Daily News Update Page 16

"(The positive impact of the APBI-CCTDA MoU) is certain, at least for 2021. What we are still waiting for is the PP as a derivative of Law No. 3/2020," Bambang continued.

Likewise, Head of Investor Relations of PT Samindo Resources Tbk (MYOH) Ahmad Zaki Natsir hopes that the MoU on increasing coal exports to China can have a positive impact on mining service contractors. However, MYOH is stil l waiting and seeing the opportunities that can be achieved with the MoU.

"We collect all the information related to coal, then we make an analysis. What will it affect the industry either in general or in particular. The hope is definitely positive," said Zaki.

Contacted separately, the Corporate

Secretary of PT Darma Henwa Tbk (DEWA) Mukson Arif Rosyidi welcomed the more

optimism of the MoU APBI and CCTDA. According to him, this agreement has even

been responded positively by the market.

"This was responded well by the market

and coal mining players after the pandemic which was marked by the economic

contraction in the second and third quarters of 2020," said Mukson.

That way, DEWA is optimistic that the increase in production volume in 2021 is more potential than this year. This condition is marked by the presence of a Production Request Notice (PRN) from the client and the opportunity to win new contracts, both for coal mining and non-coal mining services.

"Therefore, the Company's participation in various tenders for the provision of mining

services is considered the right step to be able to realize the production plan in

2021," said Mukson.

"(Dampak positif MoU APBI-CCTDA) pasti, setidaknya untuk tahun 2021. Yang masih

kami tunggu adalah PP sebagai turunan UU No. 3/2020," sambung Bambang.

Senada, Kepala Hubungan Investor PT Samindo Resources Tbk (MYOH) Ahmad

Zaki Natsir berharap agar MoU pening-katan ekspor batubar ke China bisa mem-

bawa imbas positif terhadap kontraktor jasa pertambangan. Namun, MYOH masih

wait and see peluang yang bisa diraih atas MoU tersebut.

"Kita kumpulkan semua informasi terkait batubara, lalu kita buat analisisnya. Kira-

kira apa pengaruhnya ke industri baik secara uum atau khsuus. Harapannya pasti

positif," kata Zaki.

Dihubungi terpisah, Corporate Secretary

PT Darma Henwa Tbk (DEWA) Mukson Arif Rosyidi menyambut lebih optimistis

MoU APBI dan CCTDA tersebut. Menurut-nya, kesepakatan ini bahkan telah direspon

positif oleh pasar.

"Hal ini direspon dengan baik oleh pasar

maupun pelaku pertambangan batubara setelah adanya pandemi yang ditandai

terkontraksinya ekonomi di kuartal kedua dan ketiga 2020," ungkap Mukson.

Dengan begitu, DEWA optimistis pening-katan volume produksi di tahun 2021 lebih

potensial dibanding tahun ini. Kondisi itu ditandai dengan adanya Production

Request Notice (PRN) dari klien serta peluang akan diraihnya kontrak-kontrak

baru, baik untuk jasa pertambangan batubara maupun non-batubara.

"Oleh karena itu, keikutsertaan Perseroan dalam berbagai tender penyediaan jasa

pertambangan dirasa langkah yang tepat untuk dapat merealisasikan rencana

produksi di 2021," ungkap Mukson.

Daily News Update Page 17

For information, on Wednesday (25/11) last week, Indonesia and China, through APBI and CCTDA, signed an MoU for coal purchases. APBI Executive Director Hendra Sinadia said this agreement would increase trade volume. The hope is that Indonesia's coal exports to China next year can reach 200 million tons.

Referring to last year's data, China is the most dominant market for Indonesian coal exports with a 33% share of the total export volume. The amount is at the level of around 140 million tons. However, to achieve the export target of 200 million tons to China next year, it will still depend on the agreement of each company on a Business to Business (B to B) basis.

"We hope to touch it, but not automatically 200 million tons. Of course it will be B to B, depending on the contract, market and the import quota policy from the Chinese government," Hendra told Kontan.co.id, Wednesday (2/12).

Meanwhile, the agreement is valid for a period of three years with a target quantity that can be reviewed annually. In the signing of the MoU, APBI members who were exporters of coal to China attended, namely Adaro, Bukit Asam, Kideco, Indo Tambangraya Megah, Multi Harapan Utama, Berau and Toba Bara. The agreement reached was worth US$ 1.46 billion or around Rp. 20.6 trillion.

Hendra emphasized that the real value of these exports will depend on market prices and contract agreements. To be sure, this is not the total value of Indonesia's coal exports to China.

The MoU also facilitates other companies, even non-APBI members, to increase coal exports to China. "So this MoU is diplomacy, we send a signal, later it will be followed up by B to B. We provide positive sentiment, that the Chinese market opportunity is still open," Hendra concluded.

Sebagai informasi pada Rabu (25/11) pekan lalu, Indonesia dan China melalui APBI dgn CCTDA meneken MoU pembelian batubara. Direktur Eksekutif APBI Hendra Sinadia mengungkapkan, kesepakatan ini akan me-ningkatkan volume perdagangan. Harapan-nya, ekspor batubara Indonesia ke China tahun depan bisa menyentuh 200 juta ton.

Merujuk pada data tahun lalu, China menjadi pasar paling dominan untuk ekspor batubara Indonesia dengan porsi 33% dari keseluruhan volume ekspor. Jumlahnya berada di level 140-an juta ton. Namun, untuk mencapai target ekspor 200 juta ton ke China pada tahun depan, hal itu masih akan tergantung pada kesepakatan masing-masing perusahaan secara Business to Business (B to B).

"Kita berharap menyentuh itu, tapi tidak otomatis 200 juta ton. Tentu nanti akan B to B, tergantung kontrak, pasar dan kebijakan kuota impor dari pemerintah Tiongkok," kata Hendra kepada Kontan.co.id, Rabu (2/12).

Adapun, kesepakatan tersebut berlaku dengan jangka waktu tiga tahun dengan kuantitas target yang dapat ditinjau setiap tahun. Dalam penandatangan MoU tersebut, hadir anggota APBI yang menjadi eksportir batubara ke China, yaitu Adaro, Bukit Asam, Kideco, Indo Tambangraya Megah, Multi Harapan Utama, Berau dan Toba Bara. Kesepakatan yang diraih bernilai US$ 1,46 miliar atau sekitar Rp 20,6 triliun.

Hendra menekankan, nilai riil dari ekspor tersebut akan bergantung pada harga pasar dan kesepakatan kontrak. Yang pasti, itu bukan lah nilai keseluhan ekspor batubara Indonesia ke China.

MoU tersebut juga memfasilitasi perusahaan lainnya, bahkan non member APBI untuk bisa meningkatkan ekspor batubara ke China. "Jadi MoU ini kan diplomasi, kita berkirim sinyal, nanti ujungnya ditindak lanjuti B to B. Kita memberikan sentimen psoitif, bahwa peluang pasar China masih terbuka," pungkas Hendra.

Daily News Update Page 18

For information, based on Chinese Customs data, the total exports of Indonesian coal to China, especially for products HS 2702, HS 2701 and HS 2704 for the period January - September 2020 reached US$ 4.9 billion. This figure is down compared to total exports in 2019 in the same period, amounting to US$ 5.8 billion.

Sebagai informasi, berdasarkan data Kepabeanan Tiongkok, total ekspor batu-bara Indonesia ke Tiongkok, khususnya untuk produk HS 2702, HS 2701 dan HS 2704 periode Januari – September 2020 mencapai US$ 4,9 miliar. Angka itu turun dibandingkan dengan total ekspor tahun 2019 dalam periode yang sama, sebesar US$ 5,8 miliar.

Working on Gold Mining, Indika (INDY) Adds Shares in Nusantara Resources

Finna U. Ulfah

THE COAL mining company, PT Indika

Energy Tbk., Increased the share owner-

ship portion directly and indirectly in Nusantara Resources to 27.75 percent.

Citing the company's disclosure of information, the issuer coded INDY shares

explained that the share of shares in Nusantara Resources has increased along

with the company exercising all option rights to Nusantara Resources in

accordance with the share investment agreement on December 12, 2020.

In the agreement, the company is granted

investment option rights of 16.69 million shares at a price of 0.35 Australian dollars

per share which can be exercised until November 30, 2020.

INDY has exercised this option with a total

investment price of 5.84 million Australian dollars. Thus, the total ownership of the

company together with another subsidiary, PT Indika Mineral Investindo, was 27.75

percent as of November 2020.

Garap Tambang Emas, Indika (INDY) Tambah Saham di

Nusantara Resources Finna U. Ulfah

EMITEN pertambangan batu bara, PT

Indika Energy Tbk., menaikkan jumlah porsi kepemilikan saham langsung maupun tidak langsung di Nusantara Resources menjadi sebesar 27,75 persen.

Mengutip keterbukaan informasi per-seroan, emiten berkode saham INDY men-jelaskan porsi saham terhadap Nusantara Resources telah meningkat seiring dengan perseroan melaksanakan seluruh hak opsi terhadap Nusantara Resources sesuai dengan perjanjian penyertaan saham pada 12 Desember 2020.

Dalam perjanjian itu perseroan diberikan hak opsi penyertaan sebesar 16,69 juta lembar saham dengan harga 0,35 dolar Australia per saham yang dapat dilaksana-kan sampai dengan 30 November 2020.

INDY telah melaksanakan opsi itu dengan total harga penyertaan sebesar 5,84 juta dolar Australia. Dengan demikian, total kepemilikan perseroan bersama dengan anak usaha lainnya PT Indika Mineral Investindo sebesar 27,75 persen per November 2020.

Daily News Update Page 19

"This transaction is a strategic step for the

company to increase ownership in NUS as

one of the company's diversification

strategies," wrote Indika Energy Corporate

Secretary Adi Pramono, quoted from the

disclosure of information, Wednesday

(2/12/2020).

To note, Nusantara Resources Limited is a

gold mining company listed on the

Australian Stock Exchange which owns 100

percent of the Awak Mas mining shares

located in South Sulawesi.

The Awak Emas project has an estimated

reserves of 1.1 million ounces of ore and 2

million ounces of resources in the province

with a total investment of US$ 150-200

million.

Meanwhile, in addition to the option rights

in the agreement, the company will also

include capital and spend up to US$ 40

million to acquire Nusantara which will be

divided into two stages.

In the first phase, the company will invest

25 percent of shares in PT Masmindo Dwi

Area (Masmindo), which is a subsidiary of

Nusantara Resources, with an investment

value of US$ 15 million.

Then in the second stage, the company has

the right to invest an additional 15 percent

of shares in Masmindo with a total

investment value of US$ 25 million.

With these two stages of equity

participation, the company will later

become the majority owner of Masmindo

with a total ownership of 52.6 percent,

either directly or indirectly. Editor: Rivki

Maulana

“Transaksi ini merupakan langkah strategis perseroan untuk menambah kepemilikan di NUS sebagai salah satu strategi diversifikasi perseroan,” tulis Sekretaris Perusahaan Indika Energy Adi Pramono dikutip dari keterbukaan infor-masi, Rabu (2/12/2020).

Untuk diketahui, Nusantara Resources Limited merupakan perusahaan pertam-bangan emas yang listing di Bursa Australia yang memiliki 100 persen saham pertambangan Awak Mas yang terletak di Sulawesi Selatan.

Proyek Awak Emas itu memiliki perkiraan cadangan ore sebesar 1,1 juta ounce dan sumber daya sebesar 2 juta ounce di provinsi tersebut dengan total investasi sebesar US$150-200 juta.

Adapun, selain hak opsi dalam perjanjian itu perseroan juga akan menyertakan modal dan merogoh kocek hingga US$40 juta untuk melakukan akuisisi Nusantara yang akan dibagi dalam dua tahapan.

Pada tahap pertama, perseroan akan melakukan penyertaan modal sebesar 25 persen saham di PT Masmindo Dwi Area (Masmindo) yang merupakan anak usaha Nusantara Resources dengan nilai penyertaan sebesar US$15 juta.

Kemudian tahap kedua, perseroan me-miliki hak untuk melakukan penyertaan 15 persen saham tambahan di Masmindo dengan nilai total penyertaan sejumlah US$25 juta.

Dengan dua tahap penyertaan modal tersebut, nantinya perseroan akan menjadi pemilik mayoritas Masmindo dengan jumlah kepemilikan sebesar 52,6 persen, baik secara langsung maupun tidak langsung. Editor : Rivki Maulana

Daily News Update Page 20

Enter Mr Eko! The price of coal

has reached US$71/ton Tirta Citradi, CNBC Indonesia

THE PRICE of the Newcastle thermal coal

futures contract continued to strengthen. The recovery in demand from consuming

countries and news of the Covid-19 vaccine have sent prices soaring.

In yesterday's trade (2/12/2020) the price of the actively traded contract rose 2.36%

to US$ 71.45/

ton. This is the first time since March 30

that the price of the jet rock touched the psychological level of US$ 71/ton.

Britain has reportedly approved the emergency use of the Covid-19 vaccine by

Pfizer and BioNtech yesterday. The United Kingdom has officially become the first

country to grant a license to use a vaccine, ahead of the United States and the

European Union. This is a positive sentiment that raises commodity prices,

including coal.

Apart from positive sentiment related to

vaccines, improvement in demand-side fundamentals coupled with production

cuts also sent coal prices skyrocketing in November.

The increase in global coal prices also raised the Indonesian Reference Coal Price

(HBA) for December. Minister of Energy and Mineral Resources (ESDM) Arifin

Tasrif set the reference coal price (HBA) in December 2020 to increase to US$ 59.65

per ton from US$ 55.71 per ton in November 2020.

Masuk Pak Eko! Harga Batu

Bara Sudah Tembus US$ 71/ton nih

Tirta Citradi, CNBC Indonesia

HARGA kontrak futures batu bara termal

Newcastle masih lanjut menguat.

Pemulihan permintaan dari negara-negara konsumen dan berita tentang vaksin

Covid-19 membuat harganya melesat.

Pada perdagangan kemarin (2/12/2020)

harga kontrak yang aktif diperdagangkan ini menguat 2,36% ke US$ 71,45/ton. Ini

menjadi kali pertama sejak 30 Maret harga si batu legam menyentuh level psikologis

US$ 71/ton.

Inggris dikabarkan telah merestui peng-gunaan darurat vaksin covid-19 Pfizer dan

BioNtech kemarin. Britania Raya resmi menjadi negara pertama yang memberikan

izin penggunaan vaksin dan mendahului Amerika Serikat serta Uni Eropa. Ini

menjadi sentimen positif yang mengerek harga komoditas termasuk batu bara.

Selain sentimen positif terkait vaksin, perbaikan fundamental dari sisi per-

mintaan yang dibarengi dengan pemang-kasan produksi juga membuat harga batu

bara melesat tajam di bulan November.

Kenaikan harga batu bara global juga turut

mengerek Harga Batu Bara Acuan (HBA) Tanah Air untuk bulan Desember. Menteri

Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif menetapkan harga batu bara

acuan (HBA) pada Desember 2020 naik menjadi US$ 59,65 per ton dari US$ 55,71

per ton pada November 2020.

Daily News Update Page 21

"Japan, South Korea and India are

intensively importing coal from Indonesia

to meet the needs of their domestic

industry. This indicates the recovery of

industry in these countries," said the Head

of the Ministry of ESDM Communications

Bureau, Public Information Services and

Cooperation (KLIK) Agung Pribadi.

Another factor that has contributed to the

strengthening of the HBA is the signing of

an agreement to increase the agreement

for Indonesia's coal export to China.

"The two causes have also strengthened

positive sentiment towards rising coal

prices," said Agung.

In the last three months the movement of

the HBA has continued to creep up after

almost the entire year experiencing a

tremendous sluggishness and contraction

due to the Covid-19 pandemic. In October

2020, coal prices were recorded at US$ 51

per ton, up from the previous month,

September which only touched the figure

of US$ 49.42 per ton.

"Overall, the average HBA in 2020 is US $

58.17 per ton," he said.

For information, the HBA itself is obtained

from the average index of the 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. CNBC INDONESIA

RESEARCH TEAM (twg/twg)

"Jepang, Korea Selatan dan India sedang

gencar-gencarnya melakukan impor batu-

bara dari Indonesia guna memenuhi

kebutuhan industri domestik mereka. Ini

menandakan pulihnya industri di negara-

negara tersebut ," kata Kepala Biro

Komunikasi, Layanan Informasi Publik dan

Kerja Sama (KLIK) Kementerian ESDM

Agung Pribadi.

Faktor lain yang turut memicu penguatan

HBA adalah adanya penandatanganan

kesepakatan peningkatan kesepakatan

ekspor batu bara Indonesia ke Tiongkok.

"Dua penyebab tadi turut memperkuat

sentimen positif terhadap kenaikan harga

batu bara," tegas Agung.

Dalam tiga bulan terakhir pergerakan HBA

terus merangkak naik setelah hampir

sepanjang tahun mengalami kelesuan dan

kontraksi yang luar biasa akibat pandemi

Covid-19. Tercatat pada Oktober 2020

harga batu bara di angka US$ 51 per ton,

naik dari bulan sebelumnya, September

yang hanya menyentuh angka US$ 49,42

per ton.

"Secara menyeluruh, rata-rata HBA pada

2020 yaitu US$ 58,17 per ton," ujarnya.

Sebagai informasi, HBA sendiri 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. TIM RISET CNBC

INDONESIA (twg/twg)

Daily News Update Page 22

Adaro Metcoal Companies Build Dams in 5 Villages

Editor: Gita Amanda

ADARO Metcoal Companies (AMC) built

dams for clean water storage facilities for residents in five villages in Murung Raya Regency. AMC External Relations Depart-ment Head Ignatius Iryanto in Tabalong, South Kalimantan, Wednesday (2/12), said that the dam construction was in Batu Tojah Village.

In addition to dams, AMC is also building pipelines to provide water for the communities in the five villages in Murung Raya Regency.

This clean water facility, he added, is an AMC program in strengthening the health sector in supporting government programs in the form of implementing a clean and healthy lifestyle (PHBS). "This program is carried out after a field survey and adjusted according to the needs of the local community," said Ignatius.

This work began to be carried out at the end of 2019 and was only handed over on November 30, 2020, due to the many challenges faced. These challenges, starting from the relatively heavy terrain and the length of the main pipeline that reaches up to 13.5 kilometers.

"Furthermore, I really hope, the cooperation of the five villages to ensure the sustainability of water supply by maintaining and maintaining clean water facilities in a collaborative manner," said Ignatius while giving a speech at the handover ceremony.

He said, in addition to cooperation, a spirit of togetherness is also needed, avoiding village and personal egoism, so that it is hoped that clean water can be enjoyed by all citizens.

Adaro Metcoal Companies Bangun Bendungan di 5 Desa

Redaksi: Gita Amanda

ADARO Metcoal Companies (AMC) mem-

bangun bendungan fasilitas penampungan air bersih untuk warga di lima desa di Kabupaten Murung Raya. External Relation Departement Head AMC Ignatius Iryanto di Tabalong, Kalimantan Selatan, Rabu (2/12), mengatakan pembangunan bendungan ter-sebut berada di Desa Batu Tojah.

Selain bendungan, AMC juga membangun pipanisasi guna mengaliri air untuk masya-rakat di lima desa di Kabupaten Murung Raya tersebut.

Fasilitas air bersih ini, tambah dia, merupa-kan program AMC dalam penguatan bidang kesehatan dalam mendukung program pemerintah berupa penerapan pola hidup bersih dan sehat (PHBS). "Program ini di-jalankan setelah dilakukan survei lapangan dan disesuaikan berdasarkan kebutuhan masyarakat setempat," ungkap Ignatius.

Pekerjaan ini mulai dilaksanakan pada peng-hujung 2019 dan baru diserahterimakan pada 30 November 2020, dikarenakan banyak tantangan yang dihadapi. Tantangan tersebut, mulai dari medan yang relatif berat serta panjang jaringan pipa utama yang mencapai hingga 13,5 kilometer.

"Selanjutnya, saya sangat berharap, kerja sama lima desa untuk menjamin keberlanjutan suplai air dengan merawat dan memelihara fasilitas air bersih ini secara kolaboratif," tutur Ignatius saat memberikan sambutan pada acara serah terima bantuan.

Dia mengatakan, selain kerja sama, juga diperlukan semangat kebersamaan, meng-hindari egoisme desa maupun pribadi, sehingga diharapkan air bersih dapat dinikmati seluruh warga masyarakat.

Daily News Update Page 23

The handover ceremony was carried out by AMC to the respective village heads witnessed by elements of the Barito Tuhup Raya Muspica represented by the Secretary of the Batura Sub-District, Indah Pariannoor as well as Babinsa and Bhabinkantibmas as representatives of the Batura Koramil and Pospol as well as local village heads.

The Secretary of the Head of the Batura Sub-District expressed his gratitude and highest appreciation to AMC and he advised the village heads that this clean water facility is well managed.

"In the future, village regulations need to be made as a legal umbrella for clean water management and inter-village sharing funds," said Sekcam Batura Indah Pariannoor.

He also conveyed that the unsolved technical matters could be completed by the five villages together on a collaborative principle and asked AMC to continue to provide technical assistance.

In addition to helping clean water facilities, AMC is also actively helping efforts to prevent the transmission of the Covid-19 pandemic which is endemic to date through the CSR program.

Acara serah terima tersebut, dilakukan pihak AMC kepada para kepala desa masing - masing dengan disaksikan unsur Muspica Barito Tuhup Raya yang diwakili Sekretaris Camat Batura, Indah Pariannoor serta Babinsa dan Bhabinkantibmas sebagai perwakilan dari Koramil dan Pospol Batura serta para kepala desa setempat.

Sekretaris Camat Batura mengucapkan terimakasih dan apresiasi yang setinggi-tingginya kepada pihak AMC dan dia berpesan kepada para kepala desa bahwa sarana air bersih ini dikelola dengan baik.

"Ke depannya peraturan desa perlu dibuat sebagai payung hukum pengelolaan air bersih serta dana sharing antardesa," tandas Sekcam Batura Indah Pariannoor.

Ia juga menyampaikan hal teknis yang belum terselesaikan bisa dituntaskan oleh lima desa secara bersama-sama dengan prinsip kolaboratif dan meminta pihak AMC tetap melakukan pendampingan secara teknis.

Selain membantu sarana air bersih, AMC juga aktif membantu upaya pencegahan penularan pandemi Covid -19 yang mewabah hingga saat ini melalui program CSR.

China coking coal surges as covid throttles Mongolia border Bloomberg News

COKING coal prices in China have soared to a four-year high after a new covid-19 outbreak

slowed border crossings from Mongolia.

Trucks carrying coal across the border have fallen by about 80% since October amid efforts to control the virus as hundreds of new cases arise in Mongolia, according to analysts with Hexun Futures. The slowdown comes after China barred imports from its other top coking coal supplier, Australia.

Daily News Update Page 24

“The sharp rise in coking coal is mainly related to the sharp drop in Mongolian coal customs clearance,” Hexun analysts said in the Dec. 1 note. “At the same time, coal mine safety supervision is tightening and the import of Australian coal is still restricted.”

Coking coal futures in Dalian rose 4.1% Wednesday to 1,535 yuan a ton, the highest for the most-active contract since Novem-ber 2016. The fuel is a key ingredient for China’s world-leading steel industry.

Border traffic is being slowed as customs officers in both Mongolia and China administer health

checks to truck drivers hauling coal from pits in the Gobi desert. It’s the second key disruption this year for Mongolia’s coal shipments to China after a six-week halt in February and March.

Mongolia’s GDP for the first three quarters of 2020 declined 7.3% from the previous year, largely as a result of a weaker mining sector. Coal exports through the end of October were 36% lower than in the same period in 2019.

The disruptions on the Mongolian border come after China banned steel mills and power companies from purchasing Australian coal amid souring ties between the two nations. (By Dan Murtaugh and Terrence Edwards)

Geo Energy hits coal reserves target, so does not have to make mandatory offer for notes

Sharanya Pillaihspillai@sph.com.sg@SharanyaBT

GEO Energy Resources has hit the minimum threshold for its coal reserves, such that the

mainboard-listed firm will not have to make a mandatory offer to purchase the 8 per cent senior notes issued by its wholly-owned unit, Geo Coal International.

In a bourse filing on Wednesday evening, Geo Energy said that it had 87.5 million tonnes of coal reserves in its two Indonesian mining concessions, Sungai Danau Jaya (SDJ) and Tanah Bumbu Resources (TBR), as of end-April.

This exceeds the minimum requirement of 80 million tonnes of regulatory-compliant coal reserves that it had to meet. Under a covenant, Geo Coal International would have had to

Daily News Update Page 25

make a mandatory offer to purchase all of the outstanding notes, due 2022, if it did not meet the minimum coal reserve requirement.

The coal reserves needed to be based on a JORC (Joint Ore Reserves Committee) report issued no earlier than six months from April 4, 2021, from qualified mines with licences expiring no earlier than Oct 4, 2025. In August, Geo Energy had extended the licenses of SDJ and TBR to May 2027 and January 2028 respectively.

Geo Energy reduced its gearing by 78 per cent through repurchases of the notes in the past year, when approached by noteholders, said Charles Antonny Melati, executive chairman of Geo Energy. Market liquidity on the notes was lacking amid the Covid-19 pandemic.

The firm has thus far used US$128.8 million in cash on the repurchases of US$240.8 million of the notes. The outstanding notes as of Wednesday added up to US$59.2 million. Geo Energy had US$32.7 million in cash as of end-September.

With the falling away of the mandatory offer to purchase, it now has around two years to repay the outstanding notes when due on Oct 4, 2022.

Mr Melati said: "This has removed the uncertainty surrounding the put option on the Notes, which affected our company and created an overhang on its share price. The markets have responded positively to the results of the group's liability-management exercise, as shown by the recent increases in the company's shares and notes prices."

Geo Energy chief executive Tung Kum Hon added: "Based on our cash cost of US$19.58 per tonne for Q32020, we expect increases in our cash profit per tonne for Q42020 if coal prices remain or continue to strengthen. This would put us in good stead for our cash-flow generation in the coming months.

The company expects to post "record net earnings" for 2020. Its net earnings for the nine months ended September was US$91.6 million, the highest since its 2012 IPO.

Shares of Geo Energy closed at S$0.125 on Wednesday, up 1.63 per cent.

Coal India posts 8% offtake growth in November

STATE-owned CIL on Wednesday said overall offtake of coal increased by 8 per cent to 51.3

million tonnes last month, spurred by increased demand for the dry fuel from non-power sectors. The supply by Coal India (CIL) to non-power sectors was up by a robust 46 per cent during the month, the PSU said in a statement.

"CIL's off-take was 51.3 million tonnes (MTs) in November of the ongoing fiscal, an increase of 3.8 MT compared to 47.5 MTs of same month last year," it said.

Sectors other than power accounted for the entire increase.

Coal production at 51.7 MT in November clocked a growth of 3.3 per cent, with 1.7 MT uptick in absolute terms.

CIL had produced 50 MT of coal in November 2019.

Daily News Update Page 26

With the non-power consumers showing a tendency to lift more coal, CIL's supply to this segment has risen to 12.3 MT in November, logging a growth of 46 per cent compared to 8.4 MT in November last fiscal.

Non-power sectors' lifting accounted for 24 per cent of the last month's total despatch. This segment predominantly consists of cement, sponge iron, captive power plants and a host of other industries.

The growth in supplies to the non-power sectors till November was 14 per cent at 80.6 MT.

"We are reorienting our marketing plans. With the demand from power sector yet to boom fully we are concentrating our efforts on non-power consumers to expand our sales volume. Till there is demand resurgence from power sector, we shall follow this, which is helping us," a senior executive of the company said.

The PSU further said 83 power plants have regulated lifting of coal in November. Of this, 26 have considerably reduced their programme placed for rakes against their entitlement. The remaining 57 have not filed their programme for rakes, which led to demand stagnation during the month.

The power sector of the country is stocked with 37.4 MT of coal at their end, sufficient for 22 days. With CIL riding high on 53.5 MT pithead stock a combined stock of 91 MT is available in the system, sufficient to meet any demand surge.

After a spurt of 14 per cent in October, supply to power sector has come down to a flat growth in November at 39.1 MT due to weakened demand.

Average loading per day to non-power sector during the month marked a steep 59 per cent growth at 40 rakes per day against 25 rakes same month last year.

Total rake loading went up by 20 per cent as CIL loaded 264 rakes per day last month against 220 rakes in November 2019.

Lower coal volumes to hit QLD royalty revenue Vanessa Zhou

THE QUEENSLAND Government anticipates that lower coal royalties will send a

considerable blow to its 2020-21 state budget, with a $4 billion cut expected over the next four years.

Queensland’s royalties and land rents are expected to be 44 per cent (or $2 billion) lower in 2020-21, partly due to lower coal prices and volumes.

A majority of this revenue is attributable to the hard coking coal used in steel production, as coal royalties are expected to further drop by more than half from the already reduced royalties in 2019-20.

Queensland’s coal royalties totalled $3.5 billion in 2019-20, almost 20 per cent lower than the previous period and 5 per cent lower than forecast.

Daily News Update Page 27

This reflects the continued impacts of COVID-19 and uncertainty around Chinese coal import ban, which could push coal prices further in early 2021.

As the global economy begins to recover, however, the Queensland Government would expect coal demand and prices to rebound towards $US140 ($189) per tonne.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said the QRC shared Treasurer Cameron Dick’s firm confidence that it would rebound.

“That’s why we welcome the announcement of a $200 million Future Skills Fund and the government’s commitment to work with our sector on the implementation of a first ever Queensland Resources Industry Development Plan.

“Queensland can transition to a global energy superpower thanks to the quality of our coal and gas reserves and abundant renewable opportunities.

“…You can count on resources to help Queensland recover.”

Largest gold mines in West Africa in Q2 2020 By Vladimir Basov

GOLD mining industry in West Africa showed resilience during Q2 2020 despite Covid-19 impact and other negative factors. Loulo-Gounkoto was the largest gold mine in West Africa.

Recent gold production numbers show that gold mining sector in South Africa keeps struggling, whereas West Africa's gold mining industry, led by Ghana, Mali and Burkina Faso, already produces more than twice as much gold as South Africa and quickly becoming the world-class gold mining hub.

The following is the brief overview of the local gold industry and review of the top 10 largest gold mines in West Africa in Q2 2020 prepared by Mines and Metals on the basis of publicly released corporate reports.

In Q2 2020, West Africa produced 2.02 Moz of gold, which was slightly less than Q2 2019 numbers (2.09 Moz).

Ghana was the biggest gold producer in the region (689 koz), followed by Burkina Faso (445 koz) and Mali (425 koz).

Despite Covid-19 impact and other negative factors, local gold mining industry showed resilience with significant upscale potential.

Top 10 largest gold mines in West Africa produced 1,052 koz of gold in Q2 2020, or 4% less than in Q2 2019 (1,098 koz).

Four mines increased their gold output (Fekola, Tarkwa, Tongon, Asanko) and six faced a decline (Loulo, Ahafo, Essakane, Akyem, Tasiast, Iduapriem).

Daily News Update Page 28

Gold production in West Africa in Q2 2020 vs. Q2 2019, koz. Source: Mines and Metals.

The complete list is below.

Largest gold mines in West Africa: Top 10 in Q2 2020. Source: Mines and Metals.

Daily News Update Page 29

China to Allow Australian Coal Cargo Ashore Despite Ban Bloomberg | Economy

CHINA is set to allow a shipment of Australian coal into the country, according to a person

familiar with the matter, despite a ban on such imports remaining in place as tensions between Beijing and Canberra escalate.

A cargo of 135,000 tons of Australian thermal coal on the vessel Alpha Era, which has been

waiting almost six months to unload at the southern Chinese port of Fangchenggang, is expected to clear customs and is bound for a local user, said the person, who asked not to be

identified because the information is private.

Two other ships, the Dong-A Eos and the Dong-A Astrea, recently completed unloading

Australian coal at the port of Jingtang, while a third vessel, the Dong-A Oknos, is in the process, according to data intelligence firm Kpler. It’s not clear if those cargoes will also be

cleared by customs, and it remains uncertain whether the unloadings are exceptions to meet specific demand, or a sign of a broader unfreezing of Australian coal imports into China.

The vessels were part of a flotilla of more than 50 ships that have been waiting at least a

month to offload coal from Australia, according to separate analyses of shipping data conducted by Bloomberg and Kpler last month. The discharges come as Chinese thermal coal

futures soared to the highest close on record as safety checks at domestic mines limit supply.

“The speed of domestic coal price increases in China will to some extent decide how soon we could expect more Australia coal shipments to be discharged,” said Monica Zhu, a dry bulk

analyst with Kpler.

Chinese coking coal prices have also soared to a four-year high after a new Covid-19 outbreak

slowed border crossings from Mongolia, impacting trucks carrying the material.

Spokespeople for the Tangshan Port Group, which operates the Jingtang terminal, and the Beibu Gulf Port Group, which operates the Fangchenggang facility, declined to comment.

China customs didn’t immediately respond to a fax seeking comment.

China has blacklisted a wide swathe of Australian commodities and foodstuffs, ratcheting up tensions between the two trading partners that have deteriorated since Huawei Technologies

Co. was barred from building Australia’s 5G network in 2018. Chinese power stations and steel mills were told to stop using Australian coal and ports were instructed not to offload the

fuel, Bloomberg News reported in October.

“China-Australia trade tensions may peak soon we believe, as they have raised prices for key

global commodities to Chinese consumers,” Bloomberg Intelligence senior analyst Daniel Kang said in a Thursday note.

Daily News Update Page 30

New ICMM reports reinforce mining’s role in economic development of

host countries Posted by Daniel Gleeson

THE INTERNATIONAL Council on Mining and Metals (ICMM) has published two reports that

highlight the contribution the mining industry makes to the economic development of host countries.

‘The Mining Contribution Index (MCI)’ and ‘ICMM Members’ Tax Contribution Report: 2019 Update’ demonstrate the pivotal role mining plays in many national economies, and the contribution it makes throughout commodity cycles, according to the ICMM.

The Mining Contribution Index (MCI): 5th Edition

This report shows that between 2016 and 2018, many of the world’s poorest countries relied on their income from mining as the primary driver of economic activity. As a result, 21 of the top 25 ranked countries in this edition qualify as “resource dependent” using the criteria applied in ICMM’s Social progress in mining-dependent countries report, it said.

Published every two years, the MCI ranks 183 countries from across the world according to the relative importance of mining to the economy of that country. The fifth edition saw seven new entrants to the top ranked 25 countries, with Suriname and the Democratic Republic of the Congo retaining the top spots. Across all five editions of the MCI, the top 25 remain dominated by low and middle-income economies.

Notably, six of the seven countries that dropped out of the top 25 in this edition were African, a contrast to the increase in African countries within the top 25 in the previous edition. These changes were due to a recovery in gross domestic product across the continent between 2016 and 2018, the ICMM said

“The fifth edition of the MCI confirms that many of the world’s most mining-dependent countries continue to rely on their natural resources as the primary driver of economic activity,” it said. “The Natural Resource Governance (NRGI) Institute’s Resource Governance Index rates 84% of the top 25 ranked countries in the MCI as weak, poor, or failing. It is therefore clear that there is more to do to ensure that mining’s contribution to national economies is maximised and that mineral wealth translates into broader-based economic and social progress.”

The ICMM Members’ Tax Contribution report: 2019 Update

This report, prepared by PwC, extends the dates covered by ICMM’s first Members’ Tax Contribution Report, to include 2018 and 2019. Over the full 2013-2019 commodity cycle, ICMM member survey participants reported corporate income tax (CIT) payments of $96.6 billion and royalty payments of $56.7 billion, totalling a contribution of 153.3 billion to public finances. During those seven years, for every $100 of profit before impairments, $39.40 was charged in corporate income tax and royalties, according to the report.

Daily News Update Page 31

The 2019 update of the ICMM Members’ Tax Contribution report shows that after a decline in the first half of 2016, commodity prices recovered, and, together with general economic growth, led to an increase of tax and royalties. “However, even in 2016, when some members were making little to no profit, they still paid $5.5 billion in royalties, thus providing a dependable stream of revenue for host governments through the cycle,” the ICMM said.

In 2018 and 2019, the members of ICMM which completed the most recent survey reported total CIT and royalties of $25.5 billion and $26.8 billion, respectively, which was an increase from $17.3 billion in 2017.

Nicky Black, Director of Social and Economic Development at ICMM, said: “Taken collectively, both reports paint a picture of the contribution mining makes at a national level. We know from the Social progress in mining-dependent countries report that responsible mining can be transformative, leading to substantial reductions in levels of poverty and overall improvements in social wellbeing. Mining companies stimulate economic activity by providing exports, the revenue from which can be invested in education, healthcare, infrastructure and supporting government.”

She added: “ICMM members recognise that efficient, effective, transparent, and stable resource governance is critical in ensuring that mineral wealth translates into broad-based economic and social progress. Through these reports ICMM hopes to encourage evidence-based debate and focus attention on the vital role of effective mineral resource governance.”