Daily News Update Page 1

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About the Promise of Incentives for Lifetime Coal Mining Permits, This Is IMA's Response Soal janji insentif izin usaha seumur tambang batubara, ini tanggapan IMA

Vale Indonesia's (INCO) Nickel Production Rise, Share Prices Also Raised Produksi Nikel Vale Indonesia (INCO) Naik, Harga Saham Ikut Terkerek List of Incentives for Downstream Coal Businesses in Indonesia Daftar Insentif ke Pebisnis Batu Bara yang Hilirisasi di RI There is an incentive for coal downstreaming, what is Bumi Resources (BUMI)'s plan? Ada insentif hilirisasi batubara, apa rencana Bumi Resources (BUMI)?

Adaro Energy (ADRO) supports the incentive plan for mining lifetime business license Adaro Energy (ADRO) dukung rencana insentif izin usaha seumur tambang Nickel Mining Issuers Intensively Add Value to Commodities Emiten Tambang Nikel Gencar Beri Nilai Tambah Komoditas

Indonesia sees China firms lead 'commitment' for $35b nickel investments

PT. NHM Encourages Improvement of the Quality of Mining Circle Teachers through Education and Training PT. NHM Dorong Peningkatan Kualitas Guru Lingkar Tambang Lewat Diklat Nickel, copper prices near new highs as China powers on Tesla eyes nickel-rich Indonesia for next factory, hints officials

Cimic to sell half of Thiess South32 expands metallurgical coal, manganese output

Kontan

Bisnis CNN Indonesia Kontan

Kontan Bisnis

The Jakarta Post

Harian Halmahera Mining.com Teslarati

Mining Weekly Australian Mining

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Daily News Update Page 2

About the Promise of Incentives for Lifetime Coal Mining

Permits, This Is IMA's Response Reporter: Dimas Andi | Editor: Khomarul

Hidayat

THE GOVERNMENT continues to promise various incentives to coal companies so that they want to develop the downstream commodity. One of the non -fiscal incentives prepared by the government to accelerate downstreaming is the granting of business permits for the life of the mine reserves.

This looks different from the applicable provisions in Law Number 3 of 2020 concerning Mineral and Coal Mining.

In article 47 point e, it is stated that the period of coal mining operation is not more than 20 years and is guaranteed to get an extension 2 times each 10 years after fulfi lling the requirements in accordance with the laws and regulations.

Whereas in article 47 point (g), the period of coal mining operations integrated with development and/or utilization activities lasts for a maximum of 30 years and is guaranteed to be extended for 10 years each time after meeting the applicable requirements.

The Acting Executive Director of the Indonesian Mining Association (IMA), Djoko Widajatno, said that basically the coal downstream background comes from the order of the Minerba Law. In this case, the Law contains a mandate related to downstream as a condition for the extension of the Coal Mining Exploitation Contract Agreement (PKP2B) to a Special Mining Business License (IUPK).

Soal janji insentif izin usaha seumur tambang batubara, ini

tanggapan IMA Reporter: Dimas Andi | Editor: Khomarul

Hidayat

PEMERINTAH terus menjanjikan berbagai insentif kepada perusahaan batubara supaya mau mengembangkan hilirisasi komoditas tersebut. Salah satu insentif nonfiskal yang disiapkan pemerintah untuk mempercepat hilirisasi adalah pemberian izin usaha selama umur cadangan tambang.

Hal tersebut tampak berbeda dengan ketentuan yang berlaku di Undang-Undang Nomor 3 Tahun 2020 tentang Pertambangan Minerba.

Dalam pasal 47 poin e, disebut bahwa jangka waktu kegiatan operasi pertambangan batu-bara paling lama 20 tahun dan dijamin mem-peroleh perpanjangan 2 kali masing-masing 10 tahun setelah memenuhi persyaratan sesuai peraturan perundang-undangan.

Sedangkan dalam pasal 47 poin (g), jangka waktu kegiatan operasi pertambangan batubara yang terintegrasi dengan kegiatan pengembangan dan/atau pemanfaatan ber-langsung paling lama 30 tahun dan dijamin memperoleh perpanjangan selama 10 tahun setiap kali perpanjangan setelah memenuhi persyaratan yang berlaku.

Pelaksana Harian Direktur Eksekutif Indonesia Mining Association (IMA) Djoko Widajatno mengatakan, pada dasarnya latar belakang hilirisasi batubara berasal dari perintah UU Minerba. Dalam hal ini, UU tersebut berisi amanat terkait hilirisasi sebagai syarat dari perpanjangan Perjanjian Kontrak Pengusahaan Pertambangan Batu-bara (PKP2B) menjadi Izin Usaha Pertam-bangan Khusus (IUPK).

Daily News Update Page 3

In addition, downstreaming is also the government's desire to reduce the current account deficit by utilizing domestic mining commodities. For example, the use of coal to meet domestic demand for ethanol, which so far still has to be imported, is as much as 60 million tons.

“Indonesia has a lot of coal. So we have to start producing for domestic needs before other people jump," he said, Saturday (17/10).

Djoko said that investment in the down-stream coal sector requires a large amount of capital and the activities last for about 25 to 30 years. The coal companies involved must consider various risks before executing a downstream project.

As a result, the existence of incentives such as granting business permits for the duration of mining reserves will certainly provide business and legal certainty for the business actors themselves. The govern-ment will also get guarantees for the availability of state revenue from the downstream industry, sustainable develop-ment that can make the community prosperous, and guarantee the environ-ment.

"With legal certainty and certainty in business, it will accelerate downstream investment," added Djoko.

According to him, for the success of coal downstreaming, there needs to be a guarantee that the downstream product can be absorbed by various industries that need it. Such as the basic chemical or petrochemical industry.

If necessary, there must be a long-term contract between producers and consumers so that both parties have guarantees regarding supply and demand in the downstream sector.

Di samping itu, hilirisasi juga merupakan keinginan pemerintah untuk mengurangi defisit neraca transaksi berjalan melalui pemanfaatan komoditas tambang dalam negeri. Misalnya, pemanfaatan batubara untuk memenuhi kebutuhan ethanol domestik yang selama ini masih harus diimpor sebanyak 60 juta ton.

“Indonesia punya banyak batubara. Jadi mesti dimulai memproduksi untuk kebutuhan dalam negeri sebelum keduluan orang lain,” ujar dia, Sabtu (17/10).

Djoko menyebut, investasi di sektor hilir batubara membutuhkan modal yang besar dan kegiatannya berlangsung lama sekitar 25 sampai 30 tahun. Perusahaan batubara yang terlibat mesti mempertimbangkan berbagai risiko sebelum mengeksekusi proyek hilirisasi.

Alhasil, adanya insentif seperti pemberian izin usaha seumur cadangan tambang tentu akan memberi kepastian berusaha dan hukum bagi para pelaku usaha itu sendiri. Pemerintah pun akan memperoleh jaminan tersedianya pendapatan negara dari industri hilir, keberlanjutan pem-bangunan yang dapat mensejahterahkan masyarakat, hingga terjaminnya ling-kungan hidup.

“Dengan adanya kepastian hukum dan kepastian berusaha, maka akan mem-percepat investasi hilirisasi,” imbuh Djoko.

Menurutnya, untuk menyukseskan hiliri-sasi batubara, perlu ada jaminan pula bahwa produk hilir tersebut bisa terserap oleh berbagai industri yang membutuhkan. Seperti industri kimia dasar atau petro-kimia.

Kalau perlu, mesti ada kontrak jangka panjang antara produsen dan konsumen sehingga kedua belah pihak mempunyai jaminan terkait suplai dan permintaan di sektor hilir.

Daily News Update Page 4

"Basic industry must also be encouraged so that the downstream absorption of coal can grow the domestic industry as well as absorb labor," added Djoko.

“Perindustrian dasar juga harus dipacu agar penyerapan hilirisasi batubara dapat me-numbuhkan industri dalam negeri sekaligus menyerap tenaga kerja,” imbuh Djoko.

Vale Indonesia's (INCO) Nickel Production Rise, Share Prices

Also Raised Finna U. Ulfah

THE MINERAL mining company, PT Vale Indonesia Tbk., was able to record performance growth until the third quarter of 2020 despite being overshadowed by the COvid-19 pandemic. INCO-coded stocks on the other hand also raised in today's trade, Monday (19/10/2020).

Based on the performance release on the company's official website, the issuer coded INCO shares produced 19,477 tonnes of nickel in matte in the third quarter of 2020.

This realization was 4 percent higher than the company's production volume in the previous quarter of 18,701 tons. However, this realization was lower than the production in the third quarter of 2019 in the range of 19,820 tons.

Thus, in the first nine months of this year, INCO's nickel in matte production was 55,792 tonnes, up 10 percent compared to production in the same period last year of 50,531 tonnes.

CEO and President Director of Vale Indonesia Nico Kanter said that the company's operations in the third quarter of 2020 were more reliable. Even in the midst of the corona virus pandemic, INCO managed to record a higher production volume.

Produksi Nikel Vale Indonesia (INCO) Naik, Harga Saham Ikut

Terkerek Finna U. Ulfah

EMITEN pertambangan mineral, PT Vale Indonesia Tbk., mampu mencetak pertum-buhan kinerja hingga kuartal III/2020 kendati dibayangi pandemi COvid-19. Saham berkode INCO di sisi lain juga terkerek pada perdagangan hari ini, Senin (19/10/2020).

Berdasarkan rilis kinerja di laman resmi perseroan, emiten berkode saham INCO itu telah memproduksi nikel dalam matte sebanyak 19.477 ton pada kuartal III/ 2020.

Realisasi itu lebih tinggi 4 persen di-bandingkan dengan volume produksi perseroan pada kuartal sebelumnya sebesar 18.701 ton. Namun, realisasi itu lebih rendah daripada produksi kuartal III/2019 di kisaran 19.820 ton.

Dengan demikian, dalam sembilan bulan pertama tahun ini produksi nikel dalam matte INCO sebesar 55.792 ton, naik 10 persen dibandingkan dengan produksi pada periode yang sama tahun lalu sebesar 50.531 ton.

CEO dan Presiden Direktur Vale Indonesia Nico Kanter mengatakan bahwa operasi-onal perseroan pada kuartal III/2020 lebih dapat diandalkan. Di tengah pandemi virus corona sekalipun, INCO berhasil mem-bukukan volume produksi lebih tinggi.

Daily News Update Page 5

"We thank all employees for their hard work to make this happen and we are optimistic that we can meet our 2020 full year production target of around 73,000 tonnes," Nico said through an official statement, Monday (19/10/2020).

To note, the production target of 73,000 tonnes is actually higher than the perfor-mance guidelines set earlier this year.

Previously, INCO targeted this year's production to be not much different from last year's production realization of 71,025 tons. However, INCO has revised up its production target because the company has the potential to book a higher production volume in line with the delay in the furnace 4 renovation project this year.

The furnace renovation project 4, which was originally planned to run in the fourth quarter of 2020, was postponed to be implemented in the second quarter of 2021, taking into account the ongoing Covid-19 pandemic.

On the other hand, INCO shares closed up 160 points or 4.04 percent to as low as 4,120 in today's trading. INCO shares were traded as many as 23.82 million shares valued at Rp97.45 billion. Since the beginning of the year, INCO shares were able to print an increase of 13.19 percent. Editor: Rivki Maulana

“Kami berterima kasih kepada semua karyawan atas kerja keras mereka untuk mewujudkan ini dan kami optimis dapat memenuhi target produksi tahun penuh 2020 kami sekitar 73.000 ton,” ujar Nico melalui keterangan resmi, Senin (19/10/2020).

Untuk diketahui, target produksi 73.000 ton tersebut sesungguhnya lebih tinggi daripada panduan kinerja yang telah ditetapkan pada awal tahun ini.

Sebelumnya, INCO menargetkan produksi tahun ini tidak jauh berbeda dari realisasi produksi tahun lalu sebesar 71.025 ton. Namun, INCO merevisi naik target produksi karena perseroan berpotensi membukukan volume produksi lebih tinggi seiring dengan penundaan proyek peremajaan furnace 4 pada tahun ini.

Proyek peremajaan furnace 4 yang semula direncanakan berjalan pada kuartal IV/2020, diundur menjadi akan dilaksana-kan pada kuartal II/2021 dengan memper-timbangkan pandemi Covid-19 yang masih berlangsung.

Di sisi lain, saham INCO ditutup menguat 160 poin atau 4,04 persen ke level 4.120 pada perdagangan hari ini. Saham INCO diperdagangkan sebanyak 23,82 juta lembar senilai Rp97,45 miliar. Sejak awal tahun, saham INCO mampu mencetak kenaikan 13,19 persen. Editor : Rivki Maulana

List of Incentives for Downstream Coal Businesses in

Indonesia

THE GOVERNMENT sells out many incentives for coal entrepreneurs who carry out downstreaming in the country.

Daftar Insentif ke Pebisnis Batu Bara yang Hilirisasi di RI

PEMERINTAH mengobral banyak insentif

bagi pengusaha batu bara yang melakukan

hilirisasi di dalam negeri.

Daily News Update Page 6

Incentives are set out in the Job Creation Law and Law No. 3 of 2020 concerning Mineral and Coal Mining (Minerba).

These incentives are not only provided in the form of fiscal, but also non-fiscal, such as business certainty.

Fiscal incentives are regulated in Article 38 of the Ciptaker Law. In that law, the government inserted Article 128A between Article 128 and Article 129 of the Minerba Law.

Through this new article, business actors that increase the added value of coal can be given certain treatment towards state revenue obligations.

In the next paragraph, it is stated that the incentive will be given in the form of exemption from royalty payments.

"The provision of certain treatment on the obligation of state revenue as referred to in paragraph (1) for activities to increase the added value of coal can be in the form of imposition of a royalty of 0 percent (zero percent)."

However, further provisions regarding this particular treatment will then be regulated by government regulations.

Meanwhile, the government regulates non-fiscal incentives in the Minerba Law. The business certainty provided by the regulation starts from the extension of the license to the life of the mine reserves for integrated coal downstreaming.

The certainty of license extension is regulated in Article 169 A, which states that the holders of the Contract of Work (KK) and Coal Mining Company Work Agreement (PKP2B) are guaranteed an extension to an IUPK (Special Mining Business License) as a continuation of operations after meeting the requirements.

Insentif dituangkan melalui UU Cipta Kerja dan Undang-Undang nomor 3 tahun 2020 tentang Pertambangan Mineral dan Batubara (Minerba).

Insentif tersebut tak hanya diberikan dalam bentuk fiskal, melainkan juga non fiskal seperti kepastian berusaha.

Insentif fiskal diatur dalam Pasal 38 UU Ciptaker. Dalam uu itu, pemerintah menyisipkan Pasal 128A di antara Pasal 128 dan Pasal 129 UU Minerba.

Lewat pasal baru tersebut, pelaku usaha yang melakukan peningkatan nilai tambah batu bara dapat diberikan perlakuan tertentu terhadap kewajiban penerimaan negara.

Pada ayat berikutnya, insentif tersebut dinyatakan akan diberikan dalam bentuk pembebasan pembayaran royalti.

"Pemberian perlakuan tertentu terhadap kewajiban penerimaan negara sebagai-mana dimaksud pada ayat (1) untuk kegiatan peningkatan nilai tambah batu bara dapat berupa pengenaan royalti sebesar 0 persen (nol persen)."

Namun, ketentuan lebih lanjut mengenai perlakuan tertentu itu selanjutnya akan diatur dengan peraturan pemerintah.

Sementara terkait insentif non-fiskal pemerintah mengaturnya dalam UU Minerba. Kepastian berusaha yang di-berikan oleh beleid tersebut mulai dari perpanjangan izin hingga umur cadangan tambang bagi hilirisasi batu bara yang terintegrasi.

Kepastian perpanjangan izin diatur dalam Pasal 169 A yang menyebutkan pemegang Kontrak Karya (KK) dan Perjanjian Karya Perusahaan Pertambangan Batubara (PKP2B) diberikan jaminan perpanjangan menjadi IUPK (Izin Usaha Pertambangan Khusus) sebagai kelanjutan operasi setelah memenuhi persyaratan.

Daily News Update Page 7

Contracts/agreements that have not received an extension are guaranteed to get 2 extensions in the form of IUPK or each agreement for a maximum period of 10 years by considering efforts to increase state revenue.

Meanwhile, contracts/agreements that have obtained the first extension are guaranteed to be granted a second extension in the form of IUPK as a continuation of contract/ agreement operations for a maximum period of 10 years, as a continuation of operations after the end of the first extension of the KK or PKP2B by considering efforts to increase state revenues.

Furthermore, Article 169 A paragraph 2 of the Minerba Law regulates efforts to increase state revenue through re-imposition of tax revenues and non-tax state revenues.

In this case, the area of the IUPK as a continuation of contract/agreement operations is in accordance with the development plan for the entire contract area or agreement approved by the minister.

Then, Article 169 A paragraph 3 states that if in the implementation of an IUPK extension as a continuation of contract/ agreement operations, all goods obtained during the PKP2B implementation period which are determined to be state-owned goods can still be used in coal mining business activities in accordance with the provisions of the legislation.

Regarding the integration of mine reserve life for coal downstreaming, the rules are contained in Article 169 B of the Minerba Law.

Paragraph (1) of this article states that when an IUPK is granted as a continuation of contract/agreement operation, the plan to develop all areas approved by the minister becomes WIUPK (Special Mining Permit Area) for the production operation stage.

Kontrak/perjanjian yang belum memperoleh perpanjangan dijamin mendapatkan 2 kali perpanjangan dalam bentuk IUPK atau perjanjian masing-masing untuk jangka waktu paling lama 10 tahun dengan mempertim-bangkan upaya peningkatan penerimaan negara.

Sementara kontrak/perjanjian yang telah memperoleh perpanjangan pertama dijamin untuk diberikan perpanjangan kedua dalam bentuk IUPK sebagai kelanjutan operasi kontrak/perjanjian untuk jangka waktu paling lama 10 tahun, sebagai kelanjutan operasi setelah berakhirnya perpanjangan pertama KK atau PKP2B dengan mempertimbangkan upaya peningkatan penerimaan negara.

Selanjutnya, Pasal 169 A ayat 2 UU Minerba mengatur upaya peningkatan penerimaan negara dilakukan melalui pengaturan kembali pengenaan penerimaan pajak dan penerimaan negara bukan pajak.

Dalan hal ini, luas wilayah IUPK sebagai kelanjutan operasi kontrak/perjanjian sesuai rencana pengembangan seluruh wilayah kontrak atau perjanjian yang di-setujui menteri.

Kemudian, Pasal 169 A ayat 3 menyebutkan bila dalam pelaksanaan perpanjangan IUPK sebagai kelanjutan operasi kontrak/perjan-jian, seluruh barang yang diperoleh selama masa pelaksanaan PKP2B yang ditetapkan menjadi barang milik negara tetap dapat dimanfaatkan dalam kegiatan pengusahaan pertambangan batu bara sesuai dengan ketentuan peraturan perundang-undangan.

Terkait integrasi umur cadangan tambang bagi hilirisasi batu bara, aturannya terdapat dalam pasal 169 B UU Minerba.

Ayat (1) pasal tersebut menyebutkan pada saat IUPK sebagai kelanjutan operasi kontrak/perjanjian diberikan, rencana pengembangan seluruh wilayah yang disetujui menteri menjadi WIUPK (Wilayah Izin Pertambangan Khusus) untuk tahap kegiatan operasi produksi.

Daily News Update Page 8

However, Article 169 B paragraph 2 states

that in order to obtain an IUPK as a

Continuation of Contract/Agreement

Operation as referred to in paragraph 1, KK

and PKP2B holders must submit an

application to the minister within 5 years

at the earliest and within 1 year before the

KK. and PKP2B ends.

The next paragraph states that in the

granting of the IUPK, the Minister of EMR

considers the sustainability of operations,

optimization of the potential for mineral or

coal reserves in the context of conserving

minerals or coal from WIUPK for the

production operation stage, as well as

national interests.

The Minister may also reject the IUPK

application as a continuation of the

contract/agreement operation as referred

to in paragraph 1, if based on the

evaluation results, KK and PKP2B holders

do not show good mining exploitation

performance. (hrf/agt)

Namun, Pasal 169 B ayat 2 menyebutkan bahwa untuk memperoleh IUPK sebagai Kelanjutan Operasi Kontrak/Perjanjian sebagaimana dimaksud pada ayat 1, peme-gang KK dan PKP2B harus mengajukan permohonan kepada menteri paling cepat dalam jangka waktu 5 tahun dan paling lambat dalam jangka waktu 1 tahun sebelum KK dan PKP2B berakhir.

Ayat selanjutnya menyatakan dalam pem-berian IUPK tersebut Menteri ESDM mem-pertimbangkan keberlanjutan operasi, optimalisasi potensi cadangan mineral atau batu bara dalam rangka konservasi mineral atau batu bara dari WIUPK untuk tahap kegiatan operasi produksi, serta kepentingan nasional.

Menteri jug dapat menolak permohonan IUPK sebagai kelanjutan operasi kontrak/ perjanjian sebagaimana dimaksud pada

ayat 1, jika berdasarkan hasil evaluasi, pemegang KK dan PKP2B tidak menunjuk-kan kinerja pengusahaan pertambangan yang baik. (hrf/agt)

There is an incentive for coal downstreaming, what is Bumi

Resources (BUMI)'s plan? Reporter: Dimas Andi | Editor: Khomarul

Hidayat

PT BUMI Resources Tbk (BUMI) also

commented on the plan to provide incentives for business permits for the duration of mining reserves for coal producers who are developing coal down-stream.

Ada insentif hilirisasi batubara, apa rencana Bumi Resources

(BUMI)? Reporter: Dimas Andi | Editor: Khomarul

Hidayat

PT BUMI Resources Tbk (BUMI) ikut

mengomentari rencana pemberian insentif

izin usaha seumur cadangan tambang bagi

produsen batubara yang mengembangan

hilirisasi batubara.

Daily News Update Page 9

Director and Corporate Secretary of BUMI Dileep Srivastava said the various incentives promised by the government for downstream development through the Minerba Law and the Job Creation Law were considered quite attractive to business actors, including BUMI. The reason is, it has become a fact that downstream development requires large capital and has a high risk.

"All these incentives must attract FDI (foreign direct investment)," he added, Sunday (18/10).

Apart from the promise of various incentives provided by the government, BUMI's management currently needs certainty in extending the Coal Mining Concession Contract (PKP2B) permit for its two subsidiaries, namely PT Arutmin Indonesia and PT Kaltim Prima Coal (KPC).

BUMI also continues to study in more detail the applicable regulations regarding the criteria or requirements for down-stream projects that can receive incentives from the government.

“We are waiting for the official final decision from the authorities regarding Arutmin and followed by KPC. Hopefully this can happen soon," said Dileep.

For information, the validity period of Arutmin Indonesia's PKP2B will end in a matter of days, namely on November 1, 2020. KPC's PKP2B will end on December 31, 2021.

BUMI itself is engaged in the downstream business through the development of coal production facilities to methanol in East Kalimantan, which is worth an investment of US$ 2 billion.

Just so you know, to carry out this project, the Bakrie Group through PT Bakrie Capital Indonesia is collaborating with PT Ithaca Resources and Air Product. The consortium targets...

Direktur dan Sekretaris Perusahaan BUMI Dileep Srivastava mengatakan, berbagai insentif yang dijanjikan pemerintah untuk pengembangan hilirisasi baik melalui Undang-Undang Minerba maupun UU Cipta Kerja dinilai cukup menarik bagi para pelaku usaha, tidak terkecuali BUMI. Pasalnya, sudah menjadi fakta bahwa pengembangan hilirisasi membutuhkan modal yang besar dan punya risiko tinggi.

“Semua insentif ini harus menarik FDI (foreign direct investment),” imbuh dia, Minggu (18/10).

Terlepas dari janji berbagai insentif yang disediakan pemerintah, manajemen BUMI untuk saat ini butuh kepastian perpanjangan izin Perjanjian Kontrak Pengusahaan Pertambangan Batubara (PKP2B) dua anak usahanya, yakni PT Arutmin Indonesia dan PT Kaltim Prima Coal (KPC).

BUMI juga terus mempelajari lebih rinci peraturan-peraturan yang berlaku terkait kriteria atau syarat proyek hilirisasi yang bisa memperoleh insentif dari pemerintah.

“Kami menunggu keputusan akhir resmi dari pihak berwenang terkait Arutmin dan diikuti oleh KPC. Semoga ini dapat segera terjadi,” papar Dileep.

Sebagai informasi, masa berlaku PKP2B Arutmin Indonesia akan berakhir dalam hitungan hari, yakni pada 1 November 2020. Adapun PKP2B KPC akan berakhir pada 31 Desember 2021 mendatang.

BUMI sendiri tengah berkecimpung di bisnis hilir melalui pengembangan fasilitas produksi batubara menjadi metanol di Kalimantan Timur yang bernilai investasi mencapai US$ 2 miliar.

Asal tahu saja, untuk menjalankan proyek tersebut, Bakrie Group melalui PT Bakrie Capital Indonesia menjalin kerja sama dengan PT Ithaca Resources dan Air Product. Konsorsium tersebut menargetkan...

Daily News Update Page 10

The consortium targets the coal -to-methanol project to be completed in 2024.

Later, BUMI has the potential to supply 6 million tons of coal for the project per year.

Konsorsium tersebut menargetkan proyek batubara menjadi metanol ini rampung di tahun 2024.

Nantinya, BUMI berpotensi memasok kebutuhan batubara untuk proyek tersebut sebanyak 6 juta ton per tahun.

Adaro Energy (ADRO) supports the incentive plan for mining

lifetime business license Reporter: Dimas Andi | Editor: Khomarul

Hidayat

PT ADARO Energy Tbk (ADRO) responded to the discourse on providing incentives from the government to coal companies that develop downstream activities in the form of business permits for the duration of mining reserves.

Adaro Energy's Head of Corporate Communication Febriati Nadira said, as a government contractor and public company, ADRO would certainly support and comply with the rules set by the government. This issuer also continues to support various government efforts to maintain national energy security.

"Adaro welcomes the plan to provide incentives for coal downstreaming," she said, Sunday (18/10).

ADRO management believes that the government's enthusiasm to support coal mining companies is very big. This is considering that Indonesia is positioned as one of the largest coal producers in the world. As a result, business actors in it need regulatory support and certainty in order to increase competitiveness in the global arena.

Adaro Energy (ADRO) dukung rencana insentif izin usaha

seumur tambang Reporter: Dimas Andi | Editor: Khomarul

Hidayat

PT ADARO Energy Tbk (ADRO) menang-gapi wacana pemberian insentif dari pemerintah kepada perusahaan batubara yang mengembangkan hilirisasi berupa izin usaha seumur cadangan tambang.

Head of Corporate Communication Adaro Energy Febriati Nadira mengatakan, sebagai kontraktor pemerintah dan per-usahaan publik, ADRO tentu akan men-dukung dan mematuhi aturan yang di-tetapkan oleh pemerintah. Emiten ini juga senantiasa mendukung berbagai upaya pemerintah untuk menjaga ketahanan energi nasional.

“Adaro menyambut baik rencana pem-berian insentif untuk hilirisasi batubara,” ujar dia, Minggu (18/10).

Manajemen ADRO berpendapat, semangat pemerintah untuk mendukung perusahaan tambang batubara sangat besar. Ini mengingat Indonesia berposisi sebagai salah satu produsen batubara terbesar di dunia. Alhasil, pelaku usaha di dalamnya membutuhkan dukungan dan kepastian regulasi agar mampu meningkatkan daya saing di kancah global.

Daily News Update Page 11

"We hope that the government will make the best decisions regarding regulations that support the investment climate in the mining sector, so that this sector can continue to contribute to state revenues," Nadira said.

As a note, the Director of Coal Business Development at the Ministry of EMR, Sujatmiko, in a written statement on Thursday (15/10) said that the incentive for granting business permits during the life of the mine reserves is intended so that coal downstream can be achieved quickly.

Referring to article 47 point e of Law no. 3 of 2020 concerning Minerba Mining, it is stated that the period of coal mining operations is not more than 20 years and is guaranteed to get an extension of 2 times each 10 years after fulfi lling the requirements in accordance with statutory regulations.

As for article 47 point (g), the duration of coal mining operations integrated with development and/or utilization activities lasts for a maximum of 30 years and is guaranteed to be extended for 10 years each time after meeting the applicable requirements.

“Kami berharap pemerintah memberikan keputusan yang terbaik terkait peraturan-peraturan yang mendukung iklim investasi di sektor pertambangan, sehingga sektor ini dapat terus berkontribusi bagi penerimaan negara,” kata Nadira.

Sebagai catatan, Direktur Pembinaan Pengusahaan Batubara Kementerian ESDM Sujatmiko dalam keterangan tertulis, Kamis (15/10) menyebut, insentif pemberian izin usaha selama umur cadangan tambang ditujukan agar hilirisasi batubara bisa di-capai dengan cepat.

Jika merujuk pada pasal 47 poin e Undang-Undang No. 3 Tahun 2020 tentang Pertam-bangan Minerba, disebut bahwa jangka waktu kegiatan operasi pertambangan batu-bara paling lama 20 tahun dan dijamin mem-peroleh perpanjangan 2 kali masing-masing 10 tahun setelah memenuhi persyaratan sesuai peraturan perundang-undangan.

Adapun dalam pasal 47 poin (g), jangka waktu kegiatan operasi pertambangan batu-bara yang terintegrasi dengan kegiatan pengembangan dan/atau pemanfaatan ber-langsung paling lama 30 tahun dan dijamin memperoleh perpanjangan selama 10 tahun setiap kali perpanjangan setelah memenuhi persyaratan yang berlaku.

Nickel Mining Issuers Intensively Add Value to Commodities

Finna U. Ulfah

MINERAL mining companies continue to aggressively provide added value to their nickel mining commodities in line with Indonesia's position as the country with the world's largest nickel reserves and the prospect of very bright demand for this commodity.

Emiten Tambang Nikel Gencar Beri Nilai Tambah Komoditas

Finna U. Ulfah

EMITEN pertambangan mineral terus gencar memberikan nilai tambah terhadap komoditas tambang nikelnya seiring dengan posisi Indonesia sebagai negara dengan cadangan nikel terbesar dunia dan prospek permintaan komoditas itu yang sangat cerah.

Daily News Update Page 12

Most recently, SVP Corporate Secretary of PT Aneka Tambang Tbk. Kunto Hendrapawoko said that the company will play a role in nickel sulfate mining and processing. This is in line with the pioneering of the BUMN holding in the battery sector or Indonesia Battery Holding (IBH).

"Currently, the company together with MIND ID are conducting a comprehensive study related to feasibility studies, including discussions with potential strategic partners both from within and outside the country regarding the big plan to increase nickel added value," said Kunto to Bisnis, Thursday (15/10/2020).

Meanwhile, the Ministry of State-Owned Enterprises (BUMN) claims two electric vehicle (EV) Battery manufacturers for the world's largest electric vehicle, Contemporary Amperex Technology Co. Ltd (CATL) from China and LG Chem Ltd from South Korea, have signaled that they will join in on a US$ 20 billion investment project in developing the nickel supply chain in Indonesia.

According to Kunto, this opportunity is a good prospect for the company to strengthen its nickel commodity portfolio considering that the national battery development plan is strategic and has high demand.

"Especially with the current composition of MIND ID members, it opens up opportunities for synergy in the management of national mining assets to support the development of an integrated downstream mineral business," said Kunto.

Previously, Indonesia Asahan Aluminum (Inalum) President Director Orias Petrus Moedak revealed that the company would join forces with PT Pertamina (Persero) and PT Perusahaan Listrik Negara (Persero) in IBH. According to him,...

Terbaru, SVP Corporate Secretary PT Aneka Tambang Tbk. Kunto Hendrapawoko mengatakan bahwa perseroan akan meng-ambil peran dalam penambangan dan pengolahan nikel sulfat. Hal itu sejalan dengan perintisan holding BUMN di bidang baterai atau Indonesia Battery Holding (IBH).

“Saat ini, perseroan bersama MIND ID sedang melakukan kajian secara kompre-hensif terkait studi kelayakan, termasuk diskusi kepada calon mitra strategis baik dari dalam maupun dari luar negeri terkait dengan rencana besar upaya peningkatan nilai tambah nikel ini,” ujar Kunto kepada Bisnis, Kamis (15/10/2020).

Adapun, Kementerian Badan Usaha Milik Negara (BUMN) mengklaim dua produsen electric vehicle (EV) Battery untuk ken-daraan listrik terbesar dunia, Contempo-rary Amperex Technology Co. Ltd (CATL) dari China dan LG Chem Ltd dari Korea Selatan, memberikan isyarat akan ber-gabung dalam proyek investasi bernilai US$20 miliar dalam pengembangan rantai pasokan nikel di Indonesia.

Menurut Kunto, kesempatan itu menjadi prospek yang baik bagi perseroan untuk memperkuat portofolio komoditas nikelnya mengingat rencana pengembangan baterai nasional itu bersifat strategis dan memiliki permintaan yang tinggi.

“Terlebih dengan komposisi anggota MIND ID saat ini, membuka kesempatan sinergi pengelolaan aset pertambangan nasional untuk mendukung pengembangan hilirisasi bisnis mineral yang terintegrasi,” papar Kunto.

Sebelumnya, Direktur Utama Indonesia Asahan Aluminium (Inalum) Orias Petrus Moedak mengungkapkan perseroan akan bergabung dengan PT Pertamina (Persero) dan PT Perusahaan Listrik Negara (Persero) di dalam IBH. Tiga perusahaan itu menurutnya...

Daily News Update Page 13

According to him, the three companies will join the holding with the same ownership composition.

"We, from MIND ID, will hold a state-owned battery in the battery industry, then in the upstream there will be ANTM. We will join the holding with Antam and outside partners who will work with us,” he explained in a virtual press conference, Thursday (15/10/2020).

He revealed that IBH will not only produce batteries for vehicles. According to him, IBH will also prepare batteries for housing.

On the other hand, the issuer coded ANTM shares is currently completing another nickel downstream project, namely the construction of a ferronickel plant in North Maluku, or the Haltim Ferronickel Factory Development project (P3FH), which will strengthen the company's total ferronickel production capacity to 40,500 TNi.

The project with a capacity of 13,500 TNi is still in the process of completing the final stage of construction and is expected to be fully operational next year with an estimated construction work and electrical installations for 15 months.

Expansion Plan

Separately, PT Vale Indonesia Tbk. opens up opportunities to work on downstream nickel mineral projects to be used as raw material for electric batteries.

Director of Vale Indonesia Bernardus Irmanto said that until now the company only holds nickel ore mining and processing licenses. The company, he continued, does not have a downstream industry license to manufacture electric vehicle batteries.

Therefore, the issuer coded INCO shares opens opportunities for expansion to the downstream nickel. Moreover, the BUMN Mining Holding or MIND ID already holds 20 Vale share companies.

Tiga perusahaan itu menurutnya akan bergabung di holding dengan komposisi kepemilikan yang sama.

“Kami dari MIND ID akan di holding BUMN industri baterai kemudian di hulu akan ada ANTM. Kami akan join holding dengan Antam dan mitra dari luar yang akan bekerja sama dengan kami,” jelasnya dalam konferensi pers secara virtual, Kamis (15/10/2020).

Dia mengungkapkan IBH tidak hanya akan memproduksi baterai untuk kendaraan. Menurutnya, IBH juga akan menyiapkan baterai untuk perumahan.

Di sisi lain, emiten berkode saham ANTM itu saat ini juga tengah menyelesaikan proyek hilirisasi nikel lainnya, yaitu pembangunan pabrik feronikel di Maluku Utara, atau proyek Pembangunan Pabrik Feronikel Haltim (P3FH), yang akan memperkuat total kapasitas produksi feronikel perseroan menjadi 40.500 TNi.

Proyek berkapasitas 13.500 TNi tersebut masih dalam proses penyelesaian konstruksi tahap akhir dan diperkirakan dapat ber-operasi penuh pada tahun depan dengan estimasi pengerjaan konstruksi dan instalasi listrik selama 15 bulan.

Rencana Ekspansi

Secara terpisah, PT Vale Indonesia Tbk. membuka peluang untuk menggarap proyek hilirisasi mineral nikel untuk dijadikan sebagai bahan baku baterai listrik.

Direktur Vale Indonesia Bernardus Irmanto mengatakan bahwa hingga saat ini perseroan hanya menggenggam izin penambangan dan pemrosesan bijih nikel. Perseroan, lanjutnya tidak mengantongi izin industri hilir untuk pembuatan baterai kendaraan listrik.

Oleh karena itu, emiten berkode saham INCO itu membuka peluang untuk ekspansi ke hilirisasi nikel tersebut. Terlebih, Holding BUMN Pertambangan atau MIND ID sudah menggenggam 20 perseroan saham Vale.

Daily News Update Page 14

"But until now there has been no discussion in that direction [down-streaming nickel for electric vehicle batteries] and it has not become part of the company's long-term strategy," Bernardus told Bisnis, Wednesday (14/10/2020).

Meanwhile, INCO is planning to expand to provide added value to its mining commodities by bui lding two new smelters, namely a nickel smelter that uses hydrometallurgical technology or (high pressure acid leach/HPAL) for processing low grade nickel ore and a ferronickel smelter.

INCO plans to build an HPAL nickel smelter in Pomalaa, Southeast Sulawesi, and a ferronickel smelter in Bahodopi, Southeast Sulawesi, each of which is expected to be completed in 2025 and 2024.

In more detail, the Pomalaa project is estimated to require an investment of around US$ 2.5 billion, while the Bahodopi project requires US$ 1.5 billion. However, the value of the two projects can change and will be confirmed during the final investment decision (FID) which is targeted for the first quarter of 2021.

On the other hand, news of nickel expansion, especially related to IBH, has fueled ANTM and INCO's share prices during last week's trading. ANTM's shares jumped to 22.88 percent, while INCO shares rose 7.32 percent during last week's trading.

Samuel Sekuritas analyst Dessy Lapagu gave a buy recommendation for the two shares with ANTM's target price at Rp960 and INCO at Rp4,000, respectively.

She assessed that the formation of IBH would have a very positive impact on ANTM, especially for the absorption of nickel ore, which since January 1, 2020, could not be exported.

“Tapi sampai saat ini belum ada pem-bicaraan ke arah itu [hilirisasi nikel untuk baterai kendaraan listrik] dan belum menjadi bagian strategi jangka panjang perseroan,” ujar Bernardus kepada Bisnis, Rabu (14/10/2020).

Adapun, INCO tengah merencanakan ekspansi untuk memberikan nilai tambah bagi komoditas tambangnya dengan mem-bangun dua smelter baru, yaitu smelter nikel yang menggunakan teknologi hidro-metalurgi atau (high pressure acid leach/ HPAL) untuk pengolahan bijih nikel kadar rendah dan smelter feronikel.

INCO berencana untuk membangun smelter nikel HPAL di Pomalaa, Sulawesi Tenggara, dan smelter feronikel di Bahodopi, Sulawesi Tenggara yang konstruksinya masing-masing diharapkan rampung pada 2025 dan 2024.

Lebih rinci, proyek Pomalaa diperkirakan membutuhkan investasi sekitar US$2,5 miliar sedangkan proyek Bahodopi mem-butuhkan US$1,5 miliar. Kendati demikian, nilai kedua proyek itu dapat berubah dan dipastikan pada saat final investment decision (FID) yang ditargetkan pada kuartal I/2021.

Di sisi lain, kabar ekspansi nikel terutama terkait IBH itu telah menyulut harga saham ANTM dan INCO sepanjang perdagangan pekan lalu. Saham ANTM melonjak hingga 22,88 persen, sedangkan saham INCO naik 7,32 persen sepanjang perdagangan pekan lalu.

Analis Samuel Sekuritas Dessy Lapagu memberikan rekomendasi buy terhadap kedua saham itu dengan masing-masing target price ANTM di level Rp960 dan INCO di level Rp4.000.

Dia menilai, pembentukan IBH akan berdampak sangat positif terhadap ANTM terutama untuk penyerapan bijih nikel yang sejak 1 Januari 2020 sudah tidak bisa di ekspor.

Daily News Update Page 15

"As of 2019, ANTM's nickel ore production was 8.7 million Wmt. Currently, we do not yet know what percentage the conversion ratio of nickel ore to batteries is, but so far, ANTM's position as an upstream will be enough to encourage ANTM topline," said Dessy to Bisnis, Friday (16/10/2020).

Meanwhile, Mirae Asset Sekuritas Indonesia analyst Andy Wibowo Gunawan said that his company has the potential to increase the target price of ANTM's shares in the near future, as ANTM's share price is approaching the target price at Rp960.

“For now, we maintain ANTM's 2020 full year revenue estimate, as we are still waiting for further guidance from the company regarding the IBH news. We also maintain the TP for ANTM at Rp960 and are likely to increase it in the near future," Andy said as quoted in his research publication, Sunday (18/10/2020). Editor:

Aprianto Cahyo Nugroho

“Per 2019, produksi bijih nikel ANTM sebesar 8,7 juta Wmt. Saat ini, kami belum mengetahui rasio konversi bijih nikel menjadi battery berapa persen, tetapi sejauh ini, posisi ANTM sebagai hulu akan cukup mendorong topline ANTM,” papar Dessy kepada Bisnis, Jumat (16/10/2020).

Sementara itu, Analis Mirae Asset Sekuritas Indonesia Andy Wibowo Gunawan mengata-kan bahwa pihaknya berpotensi meningkat-kan target price saham ANTM dalam waktu dekat seiring dengan posisi harga saham ANTM sudah mendekati target price di level Rp960.

“Untuk saat ini, kami mempertahankan estimasi pendapatan setahun penuh 2020 ANTM, karena kami masih menunggu panduan lebih lanjut dari perusahaan terkait berita IBH. Kami juga mempertahankan TP untuk ANTM pada Rp960 dan kemungkinan dapat meningkatkannya dalam waktu dekat,” ujar Andy seperti dikutip dari publikasi riset-nya, Minggu (18/10/2020). Editor : Aprianto Cahyo Nugroho

Indonesia sees China firms lead 'commitment' for $35b nickel investments

Tom Allard and Fransiska Nangoy | Reuters

INDONESIA expects to see investment in nickel processing, as well as petrochemicals, double to US$35 billion by 2033, led by investors from China seeking to expand their businesses in Southeast Asia’s biggest economy.

Chinese steel and battery companies operating in Indonesia met with the country’s Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan during his recent visit to Yunnan province, the minister’s spokesman Jodi Mahardi said.

Among the projects discussed was a plan by China’s Contemporary Amperex Technology Co Ltd (CATL) and Ningbo Lygend Mining Co to create an integrated lithium battery production facility, according to Jodi, who said it would be their largest such facility in the world.

The companies, along with others including Tsingshan Holding Group and Delong Holdings, currently have around $16 billion invested in Indonesia and “made a commitment” to the minister to increase their collective investment to around $20.9 billion by 2024 and to around $35 billion by 2033, said Jodi.

Daily News Update Page 16

“They will collaborate with investors from France, Japan, South Korea, Australia and other countries,” Jodi said.

The companies are planning to expand their nickel processing capacity in Indonesia, as well as investing in petrochemicals and stainless steel, he added.

CATL, Ningbo Lygend and a Tsingshan representative declined to comment, while Delong Holdings could not immediately be reached.

Indonesia, a major nickel ore producer, is keen to expand as a nickel processing hub, starting from steel, to extracting battery grade chemicals from the ore, and eventually producing batteries for electric vehicles (EVs) and building EVs.

A group of Indonesian state-owned companies are planning to form a venture to make batteries for EVs, the chief executive of Mining Industry Indonesia said this week, and the new company would partner with Chinese and Korean firms on projects valued at $12 billion.

Indonesia was the largest nickel ore exporter until it stopped exports in January to ensure there were enough raw materials for investors to use in the country.

PT. NHM Encourages Improvement of the Quality of Mining Circle Teachers through

Education and Training Author: Editor 04

A TOTAL of 590 SD (elementary school), SMP (junior high school), SMA/SMK (senior high school) teachers from various schools in the five sub-districts surrounding the PT. Nusa Halmahera Minerals, started attending Education and Training (Diklat).

This is a collaboration between PT.NHM, the North Halmahera District Education Office (Halut), and the North Maluku Education Quality Assurance Agency (LPMP) (Malut).

PT.NHM Corporate Communications Manager, Ramdani Sirait, said the training was about zoning-based Learning Competency Improvement (PKP) for core teachers and target teachers at the SD, SMP, SMA, SMK levels.

PT. NHM Dorong Peningkatan Kualitas Guru Lingkar Tambang

Lewat Diklat Penulis : Redaksi 04

SEBANYAK 590 guru SD, SMP, hingga

SMA/SMK dari berbagai sekolah di lima

kecamatan lingkar tambang PT. Nusa

Halmahera Minerals, mulai mengikuti

Pendidikan dan Pelatihan (Diklat).

Ini merupakan kerjasama antara PT.NHM,

Dinas Pendidikan Kabupaten Halmahera

Utara (Halut), dan Lembaga Penjaminan

Mutu Pendidikan (LPMP) Maluku Utara

(Malut).

Manajer Komunikasi Perusahaan PT.NHM,

Ramdani Sirait, mengatakan Diklat ini

tentang Peningkatan Kompetensi Pem-

belajaran (PKP) berbasis zonasi untuk

guru inti dan guru sasaran tingkat SD, SMP,

SMA, SMK.

Daily News Update Page 17

"The participants are teachers who have been selected and come from various schools in five sub-districts, which are areas around the mine of PT. NHM,”explained Ramdani, during the opening of the Education and Training Center at Hotel Green Tobelo, Monday (19/10).

According to him, this is part of PT. NHM towards improving the quality of education in the company's mining area.

He explained, the training in the first program which took place from 19 to 23 October 2020 was intended for 60 core teachers, consisting of 20 elementary teachers, 20 junior high school teachers, and 20 SMA/SMK teachers.

“They are senior teachers and school supervisors. These core teachers and school supervisors were trained by the North Maluku LPMP. Meanwhile, target teachers will be trained by core teachers and school supervisors who have been trained by LPMP," he explained.

Head of the Halut Education Agency (Disdik), Hertje Manuel, said that the DikLat in the PT. NHM is an effort to improve the quality of education in Halut. "I hope this will continue to be carried out and the scope of the area is expanded," hoped Hertje.

Superintendent of Public Relations PT. NHM, Rustam Munawar, would like to thank the Halut Regional Government through the Education Office, the North Sumatra Education Office Branch and the North Maluku LPMP, who have collaborated with PT. NHM to organize this training.

A similar sentiment was conveyed by the Head of Kao Sub-district, Melkianus Larangan. He hopes that through this training, the quality of education in the area around the mine of PT. NHM will continue to increase in the future.

“Pesertanya adalah para guru yang telah dipilih dan berasal dari berbagai sekolah di lima kecamatan, yang merupakan wilayah-wilayah yang ada di lingkar tambang PT. NHM,” jelas Ramdani, dalam pembukaan Diklat di Hotel Green Tobelo, Senin (19/10).

Menurut dia, ini merupakan bagian dari kepedulian PT. NHM terhadap peningkatan

kualitas pendidikan di lingkar tambang perusahaan.

Dia menjelaskan, Diklat pada program

pertama yang berlangsung sejak 19 hingga 23 Oktober 2020 ini diperuntukan untuk

60 guru inti, terdiri dari 20 guru SD, 20 guru SMP, dan 20 guru SMA/SMK.

“Mereka adalah guru senior dan pengawas sekolah. Para guru inti dan pengawas sekolah ini dilatih oleh pihak LPMP Malut.

Sedangkan guru sasaran akan dilatih oleh guru inti dan pengawas sekolah yang telah dilatih oleh LPMP,” jelasnya.

Kepala Dinas Pendidikan (Disdik) Halut, Hertje Manuel, mengatakan DikLat di wilayah lingkar tambang PT. NHM merupakan salah satu upaya mening-katkan kualitas pendidikan di Halut. “Saya harap ini terus dilakukan dan diperluas cakupan wilayahnya,” harap Hertje.

Superintendent Hubungan Masyarakat PT. NHM, Rustam Munawar, mengucapkan terima kasih kepada Pemda Halut melalui Dinas Pendidikan, Cabang Dinas Pen-didikan Malut serta LPMP Malut, yang telah bekerjasama dengan PT. NHM untuk menyelenggarakan Diklat ini.

Hal senada disampaikan Camat Kao, Melkianus Larangan. Dia berharap melalui Diklat ini, kualitas pendidikan di wilayah lingkar tambang PT. NHM semakin me-ningkat di masa mendatang.

Daily News Update Page 18

Previously, the Social Performance Manager of PT. NHM, Hansed P. Lasa, in late September and early October 2020 signed a Memorandum of Understanding (MoU) between PT. NHM with the Halut Education Office and North Maluku LPMP regarding the implementation of this DikLat.

NHM, under majority share ownership by PT Indotan Halmahera Bangkit/Indotan, continues to build cooperation with the Halut Regional Government in an effort to support development in various areas of community life. One of them is education as a form of concern for PT. NHM.

Just to note, the opening of this DikLat at the Green Tobelo Hotel was attended by the Head of North Maluku's LPMP, Drs. Laode Safihu M.Pd, Head of the Halut Education and Culture Office Branch, Rusli S. Jafar S.Ag. MPdi, Head of the Halut Education Office, Hertje Manuel S.Pd, and the Public Relations Superintendent of PT. NHM, Rustam Munawar. (kho)

Sebelumnya, Manajer Kinerja Sosial PT. NHM, Hansed P. Lasa, pada akhir Septem-ber dan awal Oktober 2020 melakukan penandatanganan Nota Kesepahaman (Memorandum Of Understanding/MoU) antara PT. NHM dengan Dinas Pendidikan Halut dan LPMP Malut terkait pelaksanaan DikLat ini.

NHM dibawah kepemilikan saham mayo-ritas oleh PT Indotan Halmahera Bangkit/ Indotan, terus membangun kerjasama dengan Pemda Halut dalam upaya men-dukung pembangunan di berbagai bidang kehidupan masyarakat. Salah satunya pendidikan sebagai bentuk kepedulian PT. NHM.

Sekadar diketahui, pembukaan DikLat di Hotel Green Tobelo ini dihadiri Kepala LPMP Malut, Drs. Laode Safihu M.Pd, Kepala Cabang Dinas Pendidikan dan Kebudayaan Halut, Rusli S. Jafar S.Ag. MPdi, Kepala Disdik Halut, Hertje Manuel S.Pd, serta Superintendent Hubungan Masya-rakat PT. NHM, Rustam Munawar. (kho)

Nickel, copper prices near new highs as China powers on Frik Els

THE COPPER price was once again within sight of more than two-year highs on Monday and nickel reached an 11-month peak after Chinese data showed growth in the world’s second-largest economy is gathering momentum.

On the Comex market, copper for delivery in December added over 1% to $3.1080 a pound ($6,850 a tonne) in brisk trade, with more than 1.2 billion pounds of the most active contract traded by early afternoon in New York.

Monday’s trading brings the bellwether metal within sight of levels last seen in June 2018 and brings the recovery since the height of the covid-19 induced sell-off, which sent the copper price crashing to below $2.00 a pound, to 57%.

The robust numbers from China, which consumes more industrial metals than the rest of the world combined, also lifted nickel prices, which hit $15,815 a tonne in London, the highest since November 2019.

Daily News Update Page 19

Data released overnight showed China’s economy continued its rapid rebound in the third quarter, with activity across a range of sectors. GDP expansion accelerated to 4.9% during Q3, up from 0.7% in the quarter to end-June.

Metal intensive industries showed the strongest growth, with a further pick-up in industry and construction last quarter, from 4.7% year on year to 6%.

In a note, Capital Economics says monthly data show momentum is building going into the final quarter of 2020.

Industrial production came in way above expectations, rising from 5.6% in August to 6.9% in September compared to the same months last year. Fixed investment expanded 0.8% year-to-date, implying that capital spending grew 7.6% in September.

Julian Evans-Pritchard, Capital Economics Senior China Economist, says the economy is becoming less reliant on investment-led stimulus and that growth will continue to pick-up in the near-term:

“Fiscal policy is set to remain supportive until at least the start of next year, which should keep activity in industry and construction strong. Meanwhile, tightening labour market conditions and improving consumer confidence mean that the recovery in consumption and services activity probably has further to run.”

Tesla eyes nickel-rich Indonesia for next factory, hints officials By Maria Merano

LOCAL reports are hinting that Tesla might be laying down plans to build a dedicated battery factory in Indonesia. The update was related by Indonesian officials who pointed to ongoing talks with the electric car maker.

CNBC Indonesia reported that the Indonesian government and Tesla are negotiating the possible construction of a battery factory in Batang, Central Java. The location is currently being developed by the country into an expansive industrial area.

In a statement to the media on Monday, Minister of Industry (Menperin) Agus Gumiwang stated that discussions with Tesla are indeed underway for a potential battery factory in Batang. “On going discussion, arahnya ke sana Batang (the direction is Batang),” Gumiwang said.

Coordinating Minister for Maritime Affairs and Investment, General TNI (Purn) Luhut Binsar Pandjaitan has also spoken about the Indonesian government’s potential deal with Tesla. Last month, Pandjaitan told members of the media that had been called by Tesla for a potential project in the country.

Before I end my remarks, I would like to convey that there are many who are interested in investing in Indonesia, I just received a call from Tesla in America, they are also interested in building a lithium battery factory in Indonesia),” he said.

Daily News Update Page 20

The governor of Central Java has plans to turn the province into a “labor-intensive manufacturing” base, wrote The Jakarta Post. The Indonesian government seems to support the governor’s plans and decided to develop 4,000 hectares of Central Java into industrial real estate.

The industrial site in Indonesia has become a place of interest for manufacturers looking to diversify from China. Several Chinese manufacturers have already agreed to relocate their factories to Indonesia.

As of this writing, Tesla has not confirmed nor denied the reports of its potential Indonesian battery facility project. However, building a battery factory in Indonesia would be a strategic move for Tesla. In the Q2 earnings call, Elon Musk mentioned the EV maker’s need for nickel, and this statement was highlighted once more during Battery Day last month. Indonesia happens to be the largest nickel producer in the world.

Interestingly enough, Indonesia has banned the export of nickel ore in its mining law as part of its efforts to develop a full nickel supply chain. Building a battery factory in Indonesia could then be one of the most efficient ways for Tesla to access the country’s vast nickel supply.

In 2019, Teslarati reported that Tesla may have been exploring the idea of building a facility in Indonesia. Earlier this month, Reuters stated that Tesla and the Indonesian government were in early discussions about the EV automaker making a potential investment in the country.

“It was still an early discussion and was not detailed yet. We need further discussion with Tesla,” stated Ayodhia Kalake, a senior official at Indonesia’s Coordinating Ministry for Maritime and Investment.

Cimic to sell half of Thiess By: Esmarie Iannucci, Creamer Media Senior Deputy Editor: Australasia

ASX-listed Cimic has announced the sale of a 50% interest in mining services provider

subsidiary Thiess, which values the company at A$4.3-billion.

Cimic on Monday announced that it had entered into an agreement with funds advised by UK-based Elliott for the sale of a 50% interest in Thiess, with the transaction expected to strengthen Cimic’s balance sheet by generating proceeds of some A$1.7-billion to A$1.9-billion, and reducing the company’s factoring balance by approximately A$700-million and its lease ability by some A$500-million.

Cimic and Elliott will jointly control Thiess, as well as its financial and dividend policies, and the transaction will include customary future share transfer options, including a potential initial public offering or sale to a third party, and an option for Elliott to sell its interest in Thiess to Cimic between three and six years from completion.

The exercise of Elliott’s option would enable Cimic to potentially repurchase the interest now being acquired by Elliott at the lower end of the sale price, or fair market value.

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“The sale agreement reflects Thiess’ ongoing strategic importance as a core activity for Cimic. It capitalizes on the robust outlook for the mining sector, and together with Elliott, we will pursue market opportunities in line with Thiess’ growth and diversification strategy,” said Cimic group executive chairperson Marcelino Fernandez Verdes.

Thiess is included in Cimic’s mining and mineral processing segment, and delivers opencut and underground mining in Australia, Asia, Africa and the Americas, and provides services to 25 projects across a range of commodities.

South32 expands metallurgical coal, manganese output Vanessa Zhou

SOUTH32 has increased production of both metallurgical coal and manganese during the September quarter of this year.

Manganese ore production at Australia Manganese climbed 3 per cent from the previous quarter to 880,000 wet metric tonnes thanks to favourable ore characteristics.

A larger proportion of the company’s increase in manganese ore output was attributed to South Africa Manganese, which returned to full production following COVID-19 restrictions in the prior quarter.

Production at the Illawarra Metallurgical Coal operation in New South Wales also shot 22 per cent on the previous period to 1.86 million tonnes. South32 has returned to a three longwall configuration at the operation since April.

“Despite the health crisis, we have maintained annual production guidance at all operations,” South 32 chief executive Graham Kerr said.

“We delivered a 19 per cent increase in manganese ore production and a 22 per cent increase in metallurgical coal production.”

South32 is also on track to increase its alumina production to nameplate capacity in the current financial year.

Its hydrate circuit at Worsley Alumina in Western Australia is operating at a record rate of 4.65 million tonnes a year.

The company has maintained its 2021 production guidance at 3.965 million tonnes despite a 5 per cent decrease in saleable alumina production to 963,000 tonnes in the September quarter.

In light of COVID-19, South32 plans to save a further $US50 million ($70.5 million) and reduce its office footprint in Singapore and London.

The company is also progressing the sale of its stake in South Africa Energy Coal to Seriti Resources, and the TEMCO manganese alloy smelter in Tasmania.

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South32 chief financial officer Katie Tovich, speaking at the Diggers and Dealers Mining Forum 2020 last week, said an exit from these businesses would significantly reduce the company’s capital intensity.

“(It) will allow us to bring a greater focus to our remaining portfolio, and improve group margins and return on invested capital,” Tovich said.

“We continue to reshape and improve our portfolio, with a focus on our upstream businesses, adding development options and forming greenfield exploration partnerships with a bias to base metals.”