Daily News Update Page 1

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The Arutmin area was cut by 40.1% when it became an IUPK, IMA: It is in accordance with the Minerba Law Wilayah Arutmin dipangkas 40,1% saat jadi IUPK, IMA: Sudah sesuai UU Minerba

Government Speeds Completion of 3 PP Derivatives of the Minerba Law Pemerintah Kebut Penyelesaian 3 PP Turunan UU Minerba Gold Production Increases, BRMS Earns Net Profit of Rp29.5 Billion Produksi Emas Naik, BRMS Raih Laba Bersih Rp29,5 Miliar

To become the largest producer, this is the production and downstream plan of Kaltim Prima Coal (KPC) Jadi produsen terbesar, ini rencana produksi dan hilirisasi Kaltim Prima Coal (KPC)

Trade-off the Freeport Smelter, Director General of Minerba asks his ranks to commit to enforce the rules Tarik Ulur Smelter Freeport, Dirjen Minerba Minta Jajarannya Komitmen Jalankan Aturan Bumi Minerals Seeks Fund Rp 1.6 Trillion from 'Rights Issue' Bumi Minerals Incar Dana Rp 1,6 Triliun dari 'Rights Issue' Take note! Coal is already taxed as of November 2, but... Catat! Batu Bara Sudah Kena Pajak per 2 November, Tapi... EV Battery Giant CATL to Invest $5.1b for a Factory in Indonesia IMEF: Pruning mining areas can be used for conservation and production control IMEF: Pemangkasan wilayah tambang bisa untuk konservasi dan pengendalian produksi Alert! Rally Since October, Coal Prices Could Drop Waspada! Reli Sejak Oktober, Harga Batu Bara Bisa Ambles China's new copper futures add another card to global yuan deck

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Investor Daily Bisnis

Kontan

Dunia Energi Investor Daily CNBC Indonesia Jakarta Globe Kontan CNBC Indonesia Reuters

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Mining could suffer $350bn loss from climate change inaction Coal India issues tender for mechanised transportation at 35 mining projects China launches yearlong campaign of coal-mining safety checks Alberta coal production falls to more than 12-year low in September RANKED: Top 10 capital raisings – mine developers

Australian Mining NS Energy Mining Weekly S&P Global Platts Mining.com

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Daily News Update Page 3

The Arutmin area was cut by 40.1% when it became an IUPK, IMA: It is in accordance with the

Minerba Law Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

THE INDONESIAN Mining Association (IMA), opened its voice regarding the shrinking of the PT Arutmin Indonesia area. Just so you know, this happened after Arutmin changed his status from a Coal Mining Exploitation Work Agreement (PKP2B) to a Special Mining Business License (IUPK) for the continuation of operations.

After becoming an IUPK, the EMR Ministry cut the coal mining concession area of PT Bumi Resources Tbk (BUMI) subsidiary to 40.1% of the area when it was still PKP2B.

IMA Acting Executive Director, Djoko Widajatno, said that the reduction was in accordance with Law Number 3 of 2020, aka the Minerba Law. Meanwhile, regarding the area being cut, Djo ko considered that it was the government's authority to evaluate Arutmin's All Mining Area Mining Plan (RPSWP) when applying for a license extension.

"This downsizing is a mandate of the law based on the government's assessment and evaluation," he told Kontan.co.id, Tuesday (17/11).

However, with downsizing, companies need to technically simulate mining operations, starting from environmental aspects, feasibility studies, and also submissions for the next Work Plan and Budget (RKAB).

Wilayah Arutmin dipangkas 40,1% saat jadi IUPK, IMA: Sudah sesuai UU Minerba

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

ASOSIASI Pertambangan Indonesia alias

Indonesia Mining Association (IMA) buka suara terkait dengan penciutan wilayah PT Arutmin Indonesia. Asal tahu saja, hal tersebut terjadi setelah Arutmin berubah status dari Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B) menjadi Izin Usaha Pertambangan Khusus (IUPK) kelanjutan operasi.

Setelah menjadi IUPK, Kementerian ESDM memangkas luas konsesi tambang batu-bara anak usaha PT Bumi Resources Tbk (BUMI) itu sebanyak 40,1% dari luas wilayah saat masih berstatus PKP2B.

Pelaksana Harian Direktur Eksekutif IMA Djoko Widajatno mengatakan, penciutan tersebut telah sesuai dengan Undang-Undang Nomor 3 Tahun 2020 alias UU Minerba. Sedangkan mengenai luasan yang dipangkas, Djoko menilai hal itu menjadi kewenangan pemerintah dalam meng-evaluasi Rencana Penambangan Seluruh Wilayah Pertambangan (RPSWP) Arutmin saat mengajukan perpanjangan izin.

"Penciutan ini merupakan amanat undang-undang atas dasar penilaian dan evaluasi yang dilakukan pemerintah," kata dia kepada Kontan.co.id, Selasa (17/11).

Namun dengan adanya penciutan, maka perusahaan perlu melakukan simulasi secara teknis operasional penambangan, mulai dari aspek lingkungan, feasibility study, dan juga pengajuan untuk Rencana Kerja dan Anggaran Biaya (RKAB) berikut-nya.

Daily News Update Page 4

"So that the implementation of mining operations can guarantee good mining practices, so that sustainability occurs. The environment is maintained, the techno-economy is achieved, in accordance with existing regulations. Conservation in the mining industry is achieved if reserves can be obtained maximally and not left behind," said Djoko.

For information, Arutmin himself previously had the status of a PKP2B holder whose contract period ended on November 1, 2020.

Then, on November 2, 2020, the government through the Minister of EMR has granted an extension of the first 10 years of operating permits, so that Arutmin's status has now changed to IUPK as a continuation of contract/agreement operations.

Arutmin can continue operations for the next 10 years, then can be extended for another 10 years. Referring to Article 169 A of Law Number 3 of 2020 (Minerba Law), Arutmin can get two extensions in the form of IUPK as a continuation of contract operations/agreements for a maximum period of 10 years, taking into account efforts to increase state revenue.

This coal company affiliated with the Bakrie Group owns mines located in Satui, Senakin, Batulicin and Asam-Asam, South Kalimantan with an area of 57,107 hectares (ha). With a reduction of 40.1%, the Arutmin concession area has decreased by around 22,900 ha. That way, the area of the concession is now only around 34,207 ha.

When Arutmin reached the second 10-year extension, Djoko said that it was possible that the area of his concession could change again. This depends on the results of the government's assessment and evaluation when Arutmin applied for a license extension.

"Sehingga pelaksanaan operasi penambangan dapat menjamin good mining practices, agar terjadi keberlanjutan. Lingkungan ter-pelihara, tekno-ekonomi tercapai, sesuai dengan aturan yang ada. Konservasi di industri pertambangan tercapai jika cadangan dapat diperoleh secara maksimal tidak yang ditinggal," terang Djoko.

Sebagai informasi, Arutmin sendiri sebelum-nya berstatus sebagai pemegang PKP2B yang masa kontraknya sudah berakhir pada 1 November 2020.

Lalu, pada 2 November 2020, pemerintah melalui Menteri ESDM telah memberikan perpanjangan izin operasi 10 tahun pertama, sehingga status Arutmin kini berubah menjadi IUPK sebagai kelanjutan operasi kontrak/perjanjian.

Arutmin bisa melanjutkan operasi selama 10 tahun ke depan, lalu bisa diperpanjang untuk 10 tahun berikutnya. Merujuk pada Pasal 169 A Undang-Undang Nomor 3 Tahun 2020 (UU Minerba), Arutmin bisa mendapatkan dua kali perpanjangan dalam bentuk IUPK sebagai kelanjutan operasi kontrak/per-janjian masing-masing untuk jangka waktu paling lama 10 tahun, dengan mempertim-bangkan upaya peningkatan penerimaan negara.

Perusahaan batubara yang terafiliasi dengan Bakrie Group itu memiliki tambang yang berlokasi di Satui, Senakin, Batulicin, dan Asam-Asam, Kalimantan Selatan dengan luas mencapai 57.107 hektare (ha). Dengan penciutan 40,1% maka wilayah konsesi Arutmin berkurang sekitar 22.900 ha. Dengan begitu, luas wilayah konsesinya kini tinggal sekitar 34.207 ha.

Saat Arutmin mencapai perpanjangan 10 tahun kedua, Djoko menyebut bahwa kemungkinan luas wilayah konsesinya bisa kembali berubah. Hal itu tergantung dari hasil penilaian dan evaluasi pemerintah saat Arutmin mengajukan permohonan perpan-jangan izin.

Daily News Update Page 5

"There are two possibilities that will happen, it remains in the area when the first extension is given, or it is shortened again," said Djoko.

"Ada dua kemungkinan yang akan terjadi, tetap pada luasan saat diberikan perpanjangan Pertama. atau diciutkan kembali," pungkas Djoko.

Government Speeds Completion of 3 PP Derivatives of the

Minerba Law Euis Rita Hartati (erita_h@investor.co.id)

THE GOVERNMENT, in this case the

Ministry of Energy and Mineral Resources

(MEMR) is finalizing a Government Regulation (PP) which is a derivative rule

of Law Number 3 of 2020 concerning Minerals and Coal (Minerba). This is done

so that there is legal certainty, especially regarding the continuation of the mining

operations of a number of companies.

"Currently being accelerated, there are

three new Draft Government Regulations (RPPs), which are trying hard to complete

them so that business entities can continue their activities without obstacles," said

Directorate General of Mineral and Coal (Minerba) Ridwan Djamaludin in Jakarta.

He admitted, even though the Minerba Law

was promulgated on June 10, 2020, until now it is still the pros and cons of several

parties. However, according to him, when a decision has been made, it means that it

must be adhered to until a better solution is found in the future.

According to him, it does not matter if

there are parties who have not agreed. However, he continued, do not let this

make the government's efforts not on the productive side.

Pemerintah Kebut Penyelesaian 3 PP Turunan UU Minerba

Euis Rita Hartati (erita_h@investor.co.id)

PEMERINTAH, dalam hal ini Kementerian

Energi dan Sumber Daya Mineral (ESDM) tengah merampungkan Peraturan Peme-rintah (PP) yang manjadi aturan turunan dari Undang-Undang (UU) Nomor 3 tahun 2020 tentang Mineral dan Batubara (Minerba). Hal ini dilakukan agar ada kepastian hukum, terutama terkait kelanjutan operasional tambang sejumlah perusahaan.

“Saat ini sedang dikebut, ada tiga Rancangan Peraturan Pemerintah (RPP) baru, sedang berusaha keras untuk menyelesaikannya supaya badan usaha dapat dilanjutkan kegiatannya tanpa kendala,” kata Direktorat Jendral Mineral dan Batubara (Minerba) Ridwan Djamaludin di Jakarta.

Dia mengakui, meski UU Minerba sudah diundangkan pada 10 Juni 2020, namun sampai saat ini masih menjadi pro kontra beberapa pihak. Meski demikian, menurutnya, ketika sebuah keputusan sudah dibuat, berarti harus dipatuhi sampai ada solusi yang lebih baik di masa mendatang.

Menurutnya tidak masalah jika masih ada pihak-pihak yang belum bersepakat. Namun demikian, lanjutnya jangan sampai hal ini membuat upaya pemerintah tidak berada di sisi produktif.

Daily News Update Page 6

"For me it is just fine (contra), but we

anticipate that this condition will not make

our efforts in a productive position," he

said.

Meanwhile, although the PP derived from

the Minerba Law has not been completed,

the Provincial Government of the Bangka

Belitung Islands (Babel) is known to have

issued a budget and cost work plan (RKAB)

regulation. As a result of the issuance of the

RKAB agreement, it is said that mining

companies can export tin directly abroad,

without carrying out exploration and

exploitation activities, for tin smelter

companies in the Babel region.

There are process stages and mechanisms

for obtaining applicable RKAB regulations,

so the reason for the Governor of Babel to

issue the issuance of RKAB regulations to

revive the real economic sector due to the

impact of Covid 19, actually still has to

comply with the applicable mechanisms

and regulations.

On a separate occasion, a member of

Commission III of the DPR RI as a member

of the law enforcement supervisory

committee (panja) of the Golkar Faction,

Supriansa, said that problems with law

enforcement in the mining sector resulted

in leakage of State revenues, so that State

revenues were not maximized as expected.

"We consider it necessary and ensure that

the mining sector law enforcement runs in

accordance with the prevailing laws and

regulations and is carried out seriously and

wholeheartedly," he said. Editor: Euis Rita

Hartati (euis_somadi@yahoo.com)

”Buat saya bagus-bagus aja saja (kontra), namun kita antisipasi jangan sampai

kondisi seperti ini malah membuat upaya kita tidak dalam posisi produktif,” katanya.

Sementara itu, meski PP turunan UU Minerba belum rampung, Pemerintah

Provinsi Kepulauan Bangka Belitung (Babel) diketahui menerbitkan aturan

rancana kerja anggaran dan biaya (RKAB). Dampak terbitnya persetujuan RKAB

tersebut, konon perusahaan pertambangan bisa melakukan ekspor timah langsung ke

luar negeri, tanpa melakukan kegiatan eksplorasi dan eksploitasi, terhadap

perusahaan smelter peleburan biji timah di wilayah Babel.

Ada tahapan proses dan mekanisme untuk mendapatkan peraturan RKAB yang

berlaku, sehingga alasan Gubernur Babel mengeluarkan penerbitan aturan RKAB

untuk menghidupkan sektor ekonomi rill akibat dampak Covid 19, sejatinya tetap

harus sesuai mekanisme dan aturan yang berlaku.

Dalam kesempatan terpisah, anggota Komisi III DPR RI selaku anggota panitia

kerja (panja) pengawasan penegakan hukum dari Fraksi Golkar Supriansa,

mengatakan, persoalan pada penegakan hukum sektor pertambangan meng-

akibatkan kebocoran terhadap penerimaan Negara, sehingga penerimaan Negara tidak

maksimal sebagaimana yang diharapkan.

“Kami memandang perlu dan memastikan

bahwa penegakan hukum sektor pertam-bangan berjalan sesuai dengan aturan per

undang-undangan yang berlaku dan dilaksanakan secara serius dan sungguh-

sungguh,” katanya. Editor : Euis Rita Hartati

(euis_somadi@yahoo.com)

Daily News Update Page 7

Gold Production Increases, BRMS Earns Net Profit of

Rp29.5 Billion Hafiyyan & Finna U. Ulfah

ISSUER mining entity of the Bakrie Group

and a subsidiary of PT Bumi Resources Tbk., PT Bumi Resources Minerals Tbk. (BRMS) earned a profit of US$ 2.11 million as of August 2020.

With an estimated exchange rate of Rp. 14,000, the net profit achievement is equivalent to Rp. 29.54 billion. From the income post, BRMS earned US$ 3.19 billion or Rp.44.66 billion.

The net profit achievement as of August 2020 is up from the end of 2019 valued at US$ 1.2 million. However, the revenue for the first 8 months of 2020 decreased from US$ 4.46 billion at the end of 2019.

Meanwhile, BRMS succeeded in producing 54.55 kg of precious metal ore. Meanwhile, gold metal production reached 17.76 kg.

Suseno Kramadibrata, President Director of BRMS, said that gold production from the mine site in Poboya, Palu, Sulawesi continues to increase. The high selling price of gold also supports the company's business.

"Therefore, financial performance is getting better. Our subsidiary, PT Citra Palu Minerals ("CPM") is currently operating the first processing plant at full capacity (500 tons of ore per day)," he said in a press release, Wednesday (18/11/ 2020).

Yesterday, PT Bumi Resources Minerals Tbk., reported that it will hold an action to increase capital with pre-emptive rights (HMETD) or a rights issue with a total fund raised of Rp1.6 trillion.

Produksi Emas Naik, BRMS Raih Laba Bersih Rp29,5 Miliar

Hafiyyan & Finna U. Ulfah

EMITEN pertambangan entitas Grup Bakrie

dan anak usaha PT Bumi Resources Tbk., PT Bumi Resources Minerals Tbk. (BRMS) meraih laba US$2,11 juta per Agustus 2020.

Dengan estimasi kurs Rp14.000, maka raihan laba bersih itu setara dengan Rp29,54 miliar. Dari pos pendapatan, BRMS meraup US$3,19 miliar atau Rp44,66 miliar.

Raihan laba bersih per Agustus 2020 itu menanjak dari akhir 2019 senilai US$1,2 juta. Namun, pendapatan 8 bulan pertama 2020 itu menurun dari US$4,46 miliar per akhir 2019.

Sementara itu, BRMS berhasil memproduksi 54,55 kg bijih logam mulia. Adapun, produksi logam emas mencapai 17,76 kg.

Suseno Kramadibrata, Direktur Utama BRMS, mengatakan produksi emas dari lokasi tambang di Poboya, Palu, Sulawesi, terus meningkat. Harga jual emas yang masih cukup tinggi juga mendukung bisnis perusahaan.

"Oleh karenanya, kinerja keuangan semakin membaik. Anak usaha kami, PT Citra Palu Minerals (“CPM”) saat ini tengah meng-operasikan pabrik pengolahan yang pertama dengan kapasitas penuh (500 ton bijih per hari)," paparnya dalam siaran pers, Rabu (18/11/2020).

Kemarin, PT Bumi Resources Minerals Tbk., melaporkan akan menggelar aksi penam-bahan modal dengan hak memesan efek terlebih dahulu (HMETD) atau rights issue dengan total dana yang dihimpun mencapai Rp1,6 triliun.

Daily News Update Page 8

Based on the company's disclosure of

information on the Indonesia Stock

Exchange, the issuer coded as BRMS shares

will issue a maximum of 22.9 billion series

b common shares from Portugal with a

nominal value of Rp 50 with an exercise

price of Rp 70 per share.

Thus, the company has the potential to

raise fresh funds reaching Rp1.6 trillion.

Bumi Resources Minerals management

explained that the proceeds from the

action after deducting all emissions costs

will be used for business development of

US$ 76.25 million or equivalent to Rp1,114

trillion.

In addition, US$ 29.8 mil lion or the

equivalent of Rp435 billion will be used to

settle bills for operational activities and

business unit development, including

preparations for the construction and

operation of a gold ore processing plant

with a capacity of 500 tons per day that has

been paid by PT Bumi Resources Tbk.

(BUMI).

"While the rest will be used to finance

working capital for operational activities

related to the gold and silver mining

project operated by PT Citra Palu Minerals

and the copper, gold and silver mining

project operated by PT Gorontalo

Minerals," wrote Bumi Resources Minerals

Management as quoted from information

disclosure, Tuesday (17/11/2020). Editor:

Hafiyyan

Berdasarkan keterbukaan informasi

perseroan di Bursa Efek Indonesia, emiten

berkode saham BRMS itu akan menerbit-

kan sebanyak-banyaknya 22,9 miliar

saham biasa seri b dari portepel bernilai

nominal Rp50 dengan harga pelaksanaan

Rp70 per saham.

Dengan demikian, perseroan berpotensi

menghimpun dana segar mencapai Rp1,6

triliun.

Manajemen Bumi Resources Minerals

menjelaskan bahwa dana hasil aksi itu

setelah dikurangi biaya emisi seluruhnya

akan digunakan untuk pengembangan

usaha sebesar US$76,25 juta atau setara

Rp1,114 triliun.

Selain itu, sebesar US$29,8 juta atau setara

Rp435 miliar akan digunakan untuk

pelunasan tagihan dalam rangka kegiatan

operasional dan pengembangan unit

usaha, termasuk persiapan pelaksanaan

konstruksi dan pengoperasian pabrik

pengolahan bijih emas dengan kapasitan

500 ton per hari yang telah dibayarkan PT

Bumi Resources Tbk. (BUMI).

“Sedangkan sisanya akan digunakan untuk

pembiayaan modal kerja untuk kegiatan

operasional terkait dengan proyek

tambang emas dan perak yang di-

operasikan oleh PT Citra Palu Minerals dan

proyek tambang tembaga, emas dan perak

yang dioperasikan oleh PT Gorontalo

Minerals,” tulis Manajemen Bumi

Resources Minerals seperti dikutip dari

keterbukaan informasi, Selasa (17/11/

2020). Editor : Hafiyyan

Daily News Update Page 9

To become the largest producer, this is the production and

downstream plan of Kaltim Prima Coal (KPC)

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

PT KALTIM Prima Coal (KPC) is still the largest coal producer in Indonesia. This year, the subsidiary of PT Bumi Resources Tbk (BUMI) targets to produce 60 million tons of coal.

KPC's Acting Chief Executive Officer (CEO) Ido Hotna Hutabarat said that KPC's production capacity reached 65 million tons. Last year, KPC's coal production was recorded at 61.5 million tons.

"This year the plan is 60 million tons. The quality of coal (KPC) varies, ranging from 4,200 grams to 6,300 grams," Ido said in a webinar series of Perhapi's 30th Anniversary, Tuesday (17/11).

KPC supports up to 70% of BUMI's coal production. As for this year, the coal mining company is targeting production in the range of 85 million tons - 89 million tons.

Despite being the largest coal producer, this does not mean that KPC is free from challenges. Ido explained that there are a number of challenges faced by KPC. Mainly is volatility and uncertainty, including in terms of coal price movements.

To mitigate this, KPC has also prepared a strategic plan to be able to improve production cost efficiency. Among other things, through digitization in mining operations. That way, production can be monitored in real time and more efficiently. As a result, production costs can be reduced.

Jadi produsen terbesar, ini rencana produksi dan hilirisasi

Kaltim Prima Coal (KPC) Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PT KALTIM Prima Coal (KPC) masih men-

jadi produsen batubara terbesar di Indonesia. Pada tahun ini, anak usaha dari PT Bumi Resources Tbk (BUMI) itu menarget-kan bisa memproduksi batubara sebanyak 60 juta ton.

Acting Chief Excecutive Officer (CEO) KPC Ido Hotna Hutabarat menyampaikan, kapasitas produksi KPC mencapai 65 juta ton. Pada tahun lalu, produksi batubara KPC tercatat sebesar 61,5 juta ton.

"Tahun ini rencana 60 juta ton. Kualitas batubara (KPC) bervariasi, berkisar dari 4.200 gram hingga 6.300 gram," kata Ido dalam webinar rangkaian HUT ke-30 Perhapi, Selasa (17/11).

KPC menopang hingga 70% produksi batu-bara BUMI. Adapun pada tahun ini, perusahaan tambang batubara tersebut menargetkan produksi direntang 85 juta ton - 89 juta ton.

Meski menjadi produsen batubara terbesar, bukan berarti KPC lepas dari tantangan. Ido membeberkan, ada sejumlah tantangan yang dihadapi KPC. Utamanya adalah volatilitas dan ketidak pastian, termasuk dalam hal pergerakan harga batubara.

Memitigasi hal tersebut, KPC pun sudah menyiapkan rencana strategis untuk dapat melakukan efisiensi biaya produksi. Antara lain melalui digitalisasi dalam operasi pertam-bangan. Dengan begitu, produksi dapat termonitor secara real time dan lebih efisien. Alhasil, biaya produksi pun bisa ditekan.

Daily News Update Page 10

"In 2020, this is the flagship program at KPC. With this digitization program, it will produce quite good savings, and can reduce production costs," Ido explained without giving an overview of the amount of efficiency in question.

Apart from price movements, KPC is also expected to face challenges in terms of licensing. This is because the KPC Coal Mining Concession Work Agreement (PKP2B) will expire in about one year from now.

"PKP2B will end on December 31, 2021. (Coal price is full of uncertainty) in the middle of PKP2B will end in one year time. This is the biggest challenge for KPC," said Ido.

To be able to obtain an operation extension from PKP2B to a Special Mining Business Permit (IUPK) as a continuation of contract/agreement operations, KPC also claims to be ready to fulfill the required conditions.

One of them is a program to increase added value, aka downstream coal. Ido said that a number of works on the Bakrie Group's coal downstream project have already begun.

The plan is for the land preparation phase

to be completed next year, and continue with the construction phase. Meanwhile,

the downstreaming of coal in the form of gasification and coal to methanol is

targeted to be operational in 2023 or 2024.

"KPC has started to carry out activities (downstream). It is expected that in 2021

it is hoped that the completion of the land clearing and starting the construction

phase. It is hoped that the commissioning will be carried out in 2023 or 2024,"

explained Ido.

"Tahun 2020, ini program unggulan di KPC. Dengan program digitalisasi ini meng-hasilkan saving yang cukup bagus, dan mampu menurunkan cost produksi," terang Ido tanpa memberikan gambaran besaran efisiensi yang dimaksud.

Selain pergerakan harga, KPC juga di-harapkan pada tantangan dari segi perizinan. Sebab, masa kontrak Perjanjian Karya Pengusahaan Pertambangan Batu-bara (PKP2B) KPC akan berakhir sekitar satu tahun dari sekarang.

"PKP2B akan berakhir di 31 Desember 2021. (Harga batubara penuh ketidak-pastian) di tengah-tengah akan berakhir PKP2B dalam waktu satu tahun lagi. Ini adalah tantangan terbesar untuk KPC," sebut Ido.

Untuk dapat memperoleh perpanjangan operasi dari PKP2B menjadi Izin Usaha Pertambangan Khusus (IUPK) sebagai kelanjutan operasi kontrak/perjanjian, KPC pun mengklaim siap memenuhi keten-tuan yang disyaratkan.

Satu diantaranya adalah program pening-katan nilai tambah alias hilirisasi batubara. Ido bilang, sejumlah pengerjaan proyek hilirisasi batubara Bakrie Group ini sudah mulai dilakukan.

Rencananya, tahap pematangan tanah sudah bisa diselesaikan pada tahun depan, dan dilanjutkan dengan tahap konstruksi. Adapun, hilirisasi batubara dalam bentuk gasifikasi dan coal to methanol ini di-targetkan sudah bisa beroperasi pada tahun 2023 atau 2024.

"KPC sudah mulai melakukan kegiatan (hilirisasi). Diharapkan 2021 harapkan mulai pematangan tanah sudah selesai dan mulai tahap konstruksi. Diharapkan commisioning sudah dilakukan di 2023 atau 2024," terang Ido.

Daily News Update Page 11

As is known, the Bakrie Group, through PT Bakrie Capital Indonesia, has collaborated

with PT Ithaca Resources and Air Products to build a coal production facility for

methanol in East Kalimantan. The consortium targets the coal to methanol

project to operate in 2024.

In the project, which is estimated to cost an investment of up to US$ 2 billion, BUMI has

the potential to supply up to 6 million tonnes of coal per year.

In Kontan.co.id notes, KPC has submitted

an extension of operations to the Ministry of EMR on March 30, 2020. KPC's PKP2B

contract expires on December 31, 2021. Meanwhile, KPC has two mines in Sanggata

and Bengalon, East Kalimantan with a concession area of 84,938 hectares.

KPC has the potential for coal resources and reserves that are still high. Referring to

data from the Joint Ore Reserves Committee (JORC) March 2018, KPC still

has reserves of 1.07 billion tons and resources of 6.9 billion tons.

Seperti diketahui, Group Bakrie melalui PT Bakrie Capital Indonesia telah menjalin kerjasama dengan PT Ithaca Resources dan Air Product untuk membangun fasilitas produksi batubara menjadi metanol di Kalimantan Timur. Konsorsium tersebut menargetkan proyek batubara menjadi metanol itu bisa beroperasi pada 2024.

Dalam proyek yang diestimasikan menelan biaya investasi hingga US$ 2 miliar tersebut, BUMI berpotensi memasok kebutuhan batu-bara hingga 6 juta ton per tahun.

Dalam catatan Kontan.co.id, KPC sudah mengajukan perpanjangan operasi kepada Kementerian ESDM pada 30 Maret 2020. Kontrak PKP2B KPC berakhir pada 31 Desember 2021. Adapun, KPC memiliki dua tambang di Sanggata dan Bengalon, Kalimantan Timur dengan luas konsesi sebesar 84.938 hektare.

KPC memiliki potensi sumber daya dan cadangan batubara yang masih tinggi. Merujuk data dari Joint Ore Reserves Commite (JORC) Maret 2018, KPC masih memiliki cadangan sebanyak 1,07 miliar ton dan sumber daya sebesar 6,9 miliar ton.

Trade-off the Freeport Smelter,

Director General of Minerba asks his ranks to commit to

enforce the rules Rio Indrawan

THE GOVERNMENT is targeting Indonesia

to become one of the developed countries in the world by 2045. One of the instruments to achieve this target is through the utilization of natural resources in the mineral and coal (Minerba) sector.

Tarik Ulur Smelter Freeport,

Dirjen Minerba Minta Jajarannya Komitmen Jalankan

Aturan Rio Indrawan

PEMERINTAH menargetkan Indonesia

menjadi salah satu negara maju di dunia pada 2045. Salah satu instrumen mencapai target tersebut adalah melalui peman-faatan sumber daya alam sektor mineral dan batu bara (Minerba).

Daily News Update Page 12

Ridwan Djamaluddin, Director General of Mineral and Coal at the Ministry of EMR, admitted that from the natural resources side, Indonesia has strong capital to become a developed country, but in terms of human resources, it has problems that must be addressed.

He gave an example, the lack of mentality to carry out the agreed provisions in accordance with the applicable regulations.

According to Ridwan, good mining practice is not purely technical. Their ranks in the Directorate General of Mineral and Coal at the Ministry of EMR must fight so that policies that have been decided by the government and agreed upon with business entities can be implemented according to the provisions.

"For example, recently we are still seeing options for smelter construction that have not run according to regulations. That requires great culture strength at us. If not, we will be carried away with directions, not those outlined in the provisions," Ridwan said during a virtual discussion, Tuesday (17/11).

The point that Ridwan touched on was related to the tug-of-war of smelter construction by PT Freeport Indonesia. Freeport Indonesia's management has proposed a concession on the smelter completion target to 2024. In fact, according to the initial agreement when Freeport Indonesia changed to a Special Mining Business License (IUPK) and received a contract extension for 2 × 10 years in Papua, they would build a new smelter that would completed in 2023. Recently, Freeport has continued to echo losses for the company because it has to build a new smelter.

According to Ridwan, the government also often receives reports of surveyors who report nickel levels that do not match the truth.

Ridwan Djamaluddin, Direktur Jenderal Minerba Kementerian ESDM, mengakui dari sisi sumber daya alam, Indonesia memiliki modal kuat untuk menjadi negara maju tapi dari sisi sumber daya manusia justru memiliki masalah yang harus bisa dibenahi.

Ia mencontohkan, kurangnya mental untuk menjalankan ketentuan yang sudah di-sepakati sesuai dengan aturan yang berlaku.

Menurut Ridwan, good mining practice tidak hanya semata-mata hal teknis. Jajarannya di Direktorat Jenderal Minerba Kementerian ESDM harus berjuang agar kebijakan yang sudah diputuskan oleh pemerintah dan disepakati dengan badan usaha dapat dilaksanakan sesuai ketentuan.

“Misalnya akhir-akhir ini kita masih melihat opsi-opsi pembangunan smelter yang belum berjalan sesuai ketentuan. Itu memerlukan kekuatan culture yang hebat di kami. Kalau tidak, kita akan hanyut bersama arahan-arahan bukan itu yang digariskan dalam ketentuan,” kata Ridwan disela diskusi virtual, Selasa (17/11).

Poin yang disinggung Ridwan adalah terkait tarik ulurnya pembangunan smelter oleh PT Freeport Indonesia. Manajemen Freeport Indonesia telah melayangkan usulan adanya kelonggaran terhadap target penyelesaian smelter menjadi 2024. Padahal sesuai kesepakatan awal saat Freeport Indonesia berubah menjadi Izin Usaha Pertambangan Khusus (IUPK) dan mendapatkan perpan-jangan kontrak selama 2×10 tahun di Papua adalah mereka akan membangun smelter baru yang akan selesai pada 2023. Belakangan Freeport terus menggaungkan tentang kerugian bagi perusahaan karena harus membangun smelter baru.

Menurut Ridwan, pemerintah juga kerap menerima laporan ada surveyor yang melaporkan kadar nikel yang tidak sesuai dengan tidak kebenarannya.

Daily News Update Page 13

"Well, this must be addressed. On the other hand we also invite experts, practitioners, industry, to also improve the current mentality. We can't cheat nickel levels, that's a crime. If this is much more difficult in developing the human resources of the mining regulator in this field than in technical matters," said Ridwan.

Ridwan reminded that to be able to achieve the target of advancing Indonesia in 2045, human resources in the mining sector must be much more developed and can be advanced, not waiting until 2045. He said that professional engineering capacity can be pursued and from that side it is not difficult to pursue but aspects of individual character are not. easy because in technical terms it has been obtained through education. But the second aspect (character) is obtained during the process in the field.

"In the mining sector we have to be faster than that, our basic capital is already good. Then in this aspect of human resources development, other formal aspects are more appropriate," said Ridwan. (RI)

“Nah ini harus disikapi. Disisi lain kami juga mengundang para ahli, para praktisi, industri, untuk juga memperbaiki mentalitas kini. Kita tidak boleh tipu-tipu kadar nikel, itu adalah kriminal. Kalau ini jauh lebih sulit dalam membina SDM regulator pertambangan di bidang ini dibanding hal hal teknis,” ungkap Ridwan.

Ridwan mengingatkan untuk bisa menuju target Indonesia maju 2045 maka sumber daya manusia di sektor pertambangan harus jauh lebih berkembang dan bisa maju tidak menunggu hingga 2045. Dia menuturkan kapasitas teknik profesional bisa dikejar dan dari sisi itu tidaklah sulit untuk dikejar tapi aspek karakter individu itu yang tidak mudah karena dalam hal teknis sudah didapatkan melalui pendidikan. Tapi pada aspek kedua (karakter) didapatkan saat proses di lapangan.

“Di sektor pertambangan kita harus lebih cepat daripada itu, modal dasar kita sudah bagus. Kemudian dalam aspek pembinaan sumber daya manusia ini, kalau aspek formal yang lain lebih tepat,” kata Ridwan. (RI)

Bumi Minerals Seeks Fund Rp1.6

Trillion from 'Rights Issue' Farid Firdaus

(farid.firdaus@beritasatumedia.com)

PT BUMI Resources Minerals Tbk (BRMS) is aiming to raise up to Rp 1.6 trillion from a limited public offering with pre-emptive rights (HMETD) or a rights issue. The company appointed a Singapore-based consulting company, Hartman Inter-national Pte Ltd, as the standby buyer of the new shares.

Bumi Minerals Incar Dana

Rp1,6 Triliun dari 'Rights Issue' Farid Firdaus

(farid.firdaus@beritasatumedia.com)

PT BUMI Resources Minerals Tbk (BRMS)

membidik perolehan dana hingga Rp 1,6 triliun dari penawaran umum terbatas dengan hak memesan efek terlebih dahulu (HMETD) atau rights issue . Perseroan menetapkan perusahaan konsultasi asal Singapura, Hartman International Pte Ltd, sebagai pembeli siaga saham baru tersebut.

Daily News Update Page 14

Bumi Minerals will issue 22.9 billion new shares with an exercise price of Rp 70 per share. Each holder of 400 shares whose names are registered in the register of shareholders on January 26, 2021 at 16.00 WIB has 129 HMETD. Each Rights issue has the right to buy one new share.

"Along with the rights issue, the company issued 24.73 billion series II warrants. Each of the 25 shares resulting from the exercise of the HMETD will be attached with 27 series II warrants,” said Bumi Minerals management in an official statement, Tuesday (17/11).

Series II warrants are securities that give the holder the right to purchase series B ordinary shares. Each holder of one warrant has the right to buy one share of the company at an exercise price of Rp 70 per share, so that the total value is Rp 1.73 trillion.

As planned, series II warrants can be exercised during the warrant exercise period, from July 28, 2021 to January 25, 2024. Holders of series II warrants do not have rights as shareholders, including the right to dividends as long as these warrants have not been implemented into shares. "If series II warrants are not exercised until the expiration of the implementation period, the series II warrants will expire, have no value and are not valid," explained management.

The implementation period of the series II warrants can be extended by taking into account the provisions and regulations in force.

Meanwhile, Hartman International has signed a deed of agreement to purchase the remaining new shares on November 16. Hartman will buy the remaining shares...

Bumi Minerals akan menerbitkan sebanyak 22,9 miliar saham baru dengan harga pelaksanaan Rp 70 per saham. Setiap pemegang 400 saham yang namanya tercatat dalam daftar pemegang saham pada 26 Januari 2021 pukul 16.00 WIB mempunyai 129 HMETD. Setiap satu HMETD berhak membeli satu satu saham baru.

“Bersamaan dengan rights issue, perseroan menerbitkan sebanyak 24,73 miliar waran seri II. Setiap 25 saham hasil pelaksanaan HMETD tersebut melekat 27 waran seri II,” ungkap manajemen Bumi Minerals dalam keterangan resmi, Selasa (17/11).

Waran Seri II adalah efek yang mem-berikan hak kepada pemegangnya untuk membeli saham biasa seri B. Setiap peme-gang satu waran berhak untuk membeli satu saham perseroan dengan harga pelaksanaan Rp 70 per saham, sehingga seluruhnya bernilai Rp 1,73 triliun.

Sesuai rencana, waran seri II dapat di-laksanakan selama periode pelaksanaan waran yaitu mulai 28 Juli 2021 sampai dengan 25 Januari 2024. Pemegang waran seri II tidak mempunyai hak sebagai pemegang saham, termasuk hak atas dividen selama waran tersebut belum dilaksanakan menjadi saham. “Bila waran seri II tidak dilaksanakan sampai habis periode pelaksanaannya, maka waran seri II tersebut menjadi kedaluarsa, tidak ber-nilai dan tidak berlaku,” jelas manajemen.

Adapun jangka waktu pelaksanaan waran seri II tersebut dapat diperpanjang dengan memperhatikan ketentuan serta peraturan perundangundangan yang berlaku.

Sementara itu, Hartman International telah menandatangani akta perjanjian ke-sanggupan membeli sisa saham baru pada 16 November. Hartman akan membeli sisa saham...

Daily News Update Page 15

Hartman will buy the remaining shares not absorbed by the old shareholders for a maximum of 6.22 billion at an exercise price of Rp 70 per share. Bumi Minerals shareholders who do not exercise their rights will experience a maximum dilution effect of 40.15%.

Management stated that the proceeds from the rights issue amounting to US$ 76.25 million or equivalent to Rp 1.11 trillion will be used for business development. Then, in the amount of US$ 29.8 million or equivalent to Rp 435 billion will be used to pay off bills for the company and the company's business units for the company's operational activities. This includes preparations for the construction and operation of a gold ore processing plant with a capacity of 500 tons per day which has been paid for by PT Bumi Resources Tbk (BUMI).

"While the rest will be used to finance working capital for operational activities related to the gold and silver mining project operated by PT Citra Palu Minerals and the copper, gold and silver mining project operated by PT Gorontalo Minerals," explained management.

Bumi Minerals has obtained shareholder approval for the rights issue plan at the Extraordinary General Meeting of Share-holders (EGMS) on November 11. The company targets an effective statement from the Financial Services Authority (OJK) on January 14, 2021.

The Company schedules the distribution and recording of Rights issue on January 27 and 28, respectively. Then, the Preemptive Rights trading period will take place from January 28 to February 5. Meanwhile, the distribution period of shares and warrants series II from HMTED electronically is on February 1-9.

Hartman akan membeli sisa saham yang tidak diserap pemegang saham lama maksimal 6,22 miliar dengan harga pelaksanaan Rp 70 per saham. Pemegang saham Bumi Minerals yang tidak melak-sanakan haknya akan mengalami efek dilusi maksimal 40,15%.

Manajemen menyatakan, dana hasil rights issue sebesar US$ 76,25 juta atau setara Rp 1,11 triliun akan digunakan untuk pengem-bangan usaha. Kemudian, sebesar US$ 29,8 juta atau setara Rp 435 miliar akan diguna-kan untuk pelunasan tagihan perseroan dan unit usaha perseroan dalam rangka kegiatan operasional perseroan. Hal ini termasuk diantaranya persiapan pelak-sanaan konstruksi dan pengoperasian pabrik pengolahan bijih emas dengan kapasitas 500 ton per hari yang telah dibayarkan oleh PT Bumi Resources Tbk (BUMI).

“Sedangkan sisanya akan digunakan pem-biayaan modal kerja kegiatan operasional terkait dengan proyek tambang emas dan perak yang dioperasikan oleh PT Citra Palu Minerals dan proyek tambang tembaga, emas dan perak yang dioperasikan oleh PT Gorontalo Minerals,” jelas manajemen.

Bumi Minerals telah mengantongi per-setujuan pemegang saham atas rencana rights issue dalam Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) 11 November. Perseroan menargetkan pernyataan efektif dari Otoritas Jasa Keuangan (OJK) pada 14 Januari 2021.

Perseroan menjadwalkan distribusi dan pencatatan HMETD masing-masing pada 27 dan 28 Januari. Kemudian, periode perdagangan HMETD akan berlangsung pada 28 Januari-5 Februari. Sedangkan periode distribusi saham dan waran seri II hasil HMTED secara elektronik pada 1-9 Februari.

Daily News Update Page 16

New Commissioner

Recently, the company's EGM S has

approved three new members on the

company's board of commissioners. They

are Nalinkant A. Rathod, Adika Nuraga

Bakrie, and Adhika Andrayudha Bakrie.

Nalinkant A. Rathod has worked for 25

years with Bakrie Group Indonesia in

various capacities and held various senior

positions. Currently, Nalinkant serves as a

director of PT Bumi Resources Tbk and a

commissioner of PT Bakrie Telecom Tbk

and PT Energi Mega Persada Tbk.

Furthermore, Adika Nuraga Bakrie has served as a member of the board of

commissioners of PT Bakrie Sumatera Plantation Tbk in 2017. Currently, Adika

also serves as director of PT Bakrie Capital Indonesia, PT Minarak Brantas Gas, and PT

Gaia Energi Baik.

Adhika Andrayudha Bakrie has joined the

Bakrie Group through Bakrie Petroleum International Pte Ltd since 2009. Currently,

Adhika also serves as director of PT Kaltim Prima Coal and PT Arutmin Indonesia

since 2015, Deputy CEO of PT Bumi Resources Minerals Tbk since 2010 and

director of PT Petromine Energy Trading since 2009.

The presence of three new commissioners

completes the board of commissioners of Bumi Minerals, where Saptari Hoedaja

serves as the main commissioner and Gories Mere and Winston Jusuf are the

independent commissioners. For the Bumi Minerals board of directors, there has been

no change. Edito r: Jauhari Mahardhika

(Jauhari@investor.co.id)

Komisaris Baru

Baru-baru ini, RUPSLB perseroan telah mengesahkan tiga anggota baru pada

dewan komisaris perseroan. Mereka adalah Nalinkant A. Rathod, Adika Nuraga

Bakrie, dan Adhika Andrayudha Bakrie.

Nalinkant A. Rathod telah berkarier selama

25 tahun bersama Bakrie Group Indonesia dalam berbagai kapasitas dan memegang

berbagai jabatan senior. Saat ini, Nalinkant menjabat sebagai salah satu direktur PT

Bumi Resources Tbk dan komisaris PT Bakrie Telecom Tbk dan PT Energi Mega

Persada Tbk.

Selanjutnya, Adika Nuraga Bakrie tercatat

pernah menjabat sebagai anggota dewan komisaris PT Bakrie Sumatera Plantation

Tbk pada 2017. Saat ini, Adika turut menjabat sebagai direktur PT Bakrie

Capital Indonesia, PT Minarak Brantas Gas, dan PT Gaia Energi Baik.

Adhika Andrayudha Bakrie telah ber-

gabung di Bakrie Group melalui Bakrie Petroleum International Pte Ltd sejak

2009. Saat ini, Adhika juga menjabat sebagai direktur PT Kaltim Prima Coal dan

PT Arutmin Indonesia sejak 2015, Deputy CEO PT Bumi Resources Minerals Tbk

sejak 2010 dan direktur PT Petromine Energy Trading sejak 2009.

Kehadiran tiga anggota komisaris baru melengkapi jajaran komisaris Bumi

Minerals, dimana Saptari Hoedaja men-jabat sebagai komisaris utama dan Gories

Mere serta Winston Jusuf menjabat komisaris independen. Untuk jajaran

dewan direksi Bumi Minerals, tidak meng-alami perubahan. Editor : Jauhari Mahardhika

(jauhari@investor.co.id)

Daily News Update Page 17

Take note! Coal is already taxed as of November 2, but...

Wilda Asmarini, CNBC Indonesia

STARTING from November 2, 2020, coal is a Taxable Goods (BKP) whose delivery is payable Value Added Tax (PPN) in accordance with Article 112 of Law No.11 of 2020 concerning Job Creation.

This is stated in the document of the Directorate General of Taxes of the Ministry of Finance of the Republic of Indonesia as of 11 November 2020 which was received by CNBC Indonesia.

The letter states that this coal VAT will be effective when the Job Creation Law comes into effect from the date of promulgation, namely on November 2, 2020 and there is no transition period in the implementation of the law.

"In other words, all norms related to taxation have come into effect since November 2, 2020," the letter said.

It is said that the regulation of coal as BKP does not require further implementation regulations, thus starting November 2 it is operational for taxpayers to implement.

"Thus, if you (a business entity) deliver coal starting on November 2, 2020, you must carry out tax obligations in the field of VAT, namely registering yourself to be confirmed as a Taxable Entrepreneur (PKP), collecting VAT, depositing VAT, and reporting VAT in accordance with the provisions of the VAT Law," said the letter.

However, for holders of Coal Mining Exploitation Work Agreements (PKP2B) that existed prior to the enactment of the Job Creation Law, the Agreement will...

Catat! Batu Bara Sudah Kena Pajak per 2 November, Tapi...

Wilda Asmarini, CNBC Indonesia

MULAI 2 November 2020 batu bara merupa-kan Barang Kena Pajak (BKP) yang penye-rahannya terutang Pajak Pertambahan Nilai (PPN) sesuai dengan Pasal 112 Undang-Undang No.11 tahun 2020 tentang Cipta Kerja.

Hal tersebut tertuang dalam dokumen Surat Direktorat Jenderal Pajak Kementerian Keuangan RI per 11 November 2020 lalu yang diterima CNBC Indonesia.

Surat tersebut menyebutkan bahwa PPN batu bara ini berlaku efektif saat UU Cipta Kerja mulai berlaku sejak tanggal diundang-kan yaitu pada 2 November 2020 dan tidak terdapat masa transisi dalam pelaksanaan UU tersebut.

"Dengan kata lain, seluruh norma terkait dengan perpajakan, sudah mulai berlaku sejak tanggal 2 November 2020," tulis surat tersebut.

Pengaturan batu bara sebagai BKP tersebut disebutkan tidak memerlukan aturan pelak-sanaan lebih lanjut, dengan demikian mulai 2 November sudah operasional untuk di-laksanakan Wajib Pajak.

"Dengan demikian, apabila Saudara (badan usaha) melakukan penyerahan batu bara mulai tanggal 2 November 2020 wajib melaksanakan kewajiban perpajakan di bidang PPN yaitu mendaftarkan diri untuk dikukuhkan sebagai Pengusaha Kena Pajak (PKP), memungut PPN, menyetor PPN, dan melaporkan PPN sesuai dengan ketentuan UU PPN," kata surat tsb.

Namun demikian, bagi pemegang Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B) yang telah ada sebelum berlakunya Undang-Undang Cipta Kerja, Perjanjian tetap...

Daily News Update Page 18

the Agreement will remain in effect until the expiration of the contract or agreement

as stipulated in Article 169 of Law No. 4 of 2009 concerning Mineral and Coal Mining.

"Thus, in the event that the PKP2B

specifically regulates taxation provisions (nailed down), the taxation provisions will

remain in effect until the PKP2B ends."

The implementation of the Sales Tax (PPn) obligation for Generation I PKP2B as

stipulated in the Minister of Finance Regulation number PMK-194/PMK.03/

2012 is still valid and must be implemen-ted as long as there is no change or

revocation of the regulation.

CNBC Indonesia has tried to ask the

Directorate General of Taxes about this, but has yet to receive an answer.

Previously, the Director of Counseling,

Services and Public Relations of the Directorate General of Taxes of the

Ministry of Finance, Hestu Yoga Saksama, explained that the application of PPN on

coal is to uniform value added tax treatment for all coal mining companies.

The reason is, according to him, there are

different regulations regarding the imposition of VAT on coal mining

companies such as holders of Coal Mining Exploitation Work Agreements (PKP2B).

"So far, with the regulation of coal before it becomes briquette, coal is non-BKP

(taxable goods), also because of the separate arrangements through each

PKP2B, there are various treatments for VAT on coal. Therefore, for uniformity and

legal certainty, coal is determined to be BKP (taxable goods)," he explained via

short message to CNBC Indonesia on Monday (12/10/2020).

Perjanjian tetap diberlakukan sampai jangka waktu berakhirnya kontrak atau perjanjian sebagaimana diatur dalam Pasal 169 UU No. 4 Tahun 2009 Tentang Pertambangan Mineral dan Batu bara.

"Dengan demikian, dalam hal PKP2B meng-atur secara khusus ketentuan perpajakan (nailed down), maka ketentuan perpajakan tersebut tetap berlaku sampai dengan PKP2B tersebut berakhir."

Adapun pelaksanaan kewajiban Pajak Pen-jualan (PPn) bagi PKP2B Generasi I sebagai-mana diatur dalam Peraturan Menteri Keuangan nomor PMK-194/PMK.03/2012 masih tetap berlaku dan wajib dilaksanakan selama belum ada perubahan atau penca-butan atas peraturan tersebut.

CNBC Indonesia telah mencoba menanyakan hal ini kepada Direktorat Jenderal Pajak, namun hingga kini belum menerima jawaban.

Sebelumnya, Direktur Penyuluhan, Pelayanan, dan Humas Direktorat Jenderal Pajak Kementerian Keuangan Hestu Yoga Saksama menjelaskan bahwa penerapan PPN pada batu bara ini untuk menyeragam-kan perlakuan pajak pertambahan nilai bagi semua perusahaan tambang batu bara.

Pasalnya, selama ini menurutnya terdapat pengaturan yang berbeda terkait pengenaan PPN pada perusahaan tambang batu bara seperti pemegang Perjanjian Karya Peng-usahaan Pertambangan Batu Bara (PKP2B).

"Selama ini dengan pengaturan batu bara sebelum menjadi briket, batu bara adalah non BKP (barang kena pajak), juga karena adanya pengaturan tersendiri melalui masing-masing PKP2B, maka terjadi per-lakuan yang beragam untuk PPN atas batu bara. Oleh karena itu, untuk keseragaman dan kepastian hukum, batu bara ditetapkan menjadi BKP (barang kena pajak)," jelasnya melalui pesan singkat kepada CNBC Indonesia pada Senin (12/10/2020).

Daily News Update Page 19

In Article 4A (2) amendments to Law No. 42 of 2009 concerning the Third Amendment to Law No. 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods, which are part of Article 112 of the Omnibus Law, reads "Types of goods which are not subject to Value Added Tax are certain goods in the following group of goods:

a. mining or drilling products taken directly from the source, excluding coal mining products;.." (wia)

Pada Pasal 4A (2) perubahan UU No. 42 tahun 2009 tentang Perubahan Ketiga atas UU No. 8 tahun 1983 tentang Pajak Pertambahan Nilai Barang dan Jasa dan Pajak Penjualan atas Barang Mewah, yang menjadi bagian dari Pasal 112 Omnibus Law, berbunyi "Jenis barang yang tidak dikenai Pajak Pertambahan Nilai adalah barang tertentu dalam kelompok barang sebagai berikut:

a. barang hasil pertambangan atau hasil pengeboran yang diambil langsung dari sumbernya, tidak termasuk hasil pertam-bangan batu bara;.." (wia)

EV Battery Giant CATL to Invest $5.1b for a Factory in Indonesia BY :TRIYAN PANGASTUTI

CONTEMPORARY Amperex Technology, or CATL, a battery manufacturer from China, has

decided to invest $5.1 billion to build a manufacturing plant for electric vehicle batteries in Indonesia, the country's top investment official said on Monday.

Bahlil Lahadahlia, the head of the Investment Coordinating Board (BKPM), said the company has recently signed the investment agreement and would break ground for the plant in 2021.

"The investment is about $5.1 billion. We signed the agreement when we were in China recently. The groundbreaking will commence in 2021," Bahlil said.

CATL booked $6.8 billion in sales worldwide, making it one of the world's largest electric car battery makers. The company supplies batteries to carmakers like Hyundai, Honda, BMW, Tesla, Toyota, Volkswagen, and Volvo.

Two years ago, CATL teamed up with Chinese stainless-steel maker Tsingshan Holding, Chinese battery firm GEM, Japanese trading firm Henwa and Indonesian industrial complex company Indonesia Morowali Industrial Park, a $700 million project to make battery-grade nickel chemicals in Morowali, Central Sulawesi.

The investment shows Indonesia's ambition to become a key player in global green energy supplier is taking shape. The largest economy in Southeast Asia is betting on its nickel reserve, which accounts for 25 percent of the world's proven reserve, to support that ambition.

"It's all comes down to our nickel. 85 percent of the raw material for the battery comes from Indonesia. So Indonesia must be a key player in renewable energy, especially in the electric battery," Bahlil said.

Daily News Update Page 20

Meanwhile, South Korean carmaker Hyundai has been making progress on its electric car manufacturing plant in Indonesia.

Lee Kang Hyun, the vice president and chief operating officer at Hyundai Motor Asia Pacific, said construction of Hyundai's electric car plant in the country, which is also the company's first manufacturing center based in Southeast Asia, has been 65 percent complete.

"Hyundai has started to build a factory in Delta Mas, Cikarang, despite the Covid-19 pandemic, with the full support of the governor and related ministers. Now, it has been 65 percent complete," Lee said during a West Java Investment Summit 2020 press conference in Bandung on Monday.

Lee said the company targeted the factory — which costs $1.55 billion to build on 77.6 hectares of land — would start producing combustion engine cars by the end of 2021 and electric cars in 2022.

The factory's commercial production capacity is projected to reach 150,000 units in the second half of 2021, about 60 percent of its full capacity of 250,000 units per year.

IMEF: Pruning mining areas can

be used for conservation and production control

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

THE INDONESIAN Mining and Energy

Forum (IMEF) assesses that shrinking mining concession areas can have an impact on controlling national coal production. Regional shrinking can also be used by the government as a State Reserved Area (WPN).

As is known, after changing its status to IUPK for continuation of operations, the Ministry of EMR has reduced the area of PT Arutmin Indonesia's coal mining concession by 40.1% compared to the area when it was still PKP2B.

The Chairman of IMEF, Singgih Widagdo, believes that in deciding the extent of regional prosecution, the Ministry of EMR has considered a number of things.

IMEF: Pemangkasan wilayah

tambang bisa untuk konservasi dan pengendalian produksi

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

INDONESIAN Mining and Energy Forum

(IMEF) menilai penciutan wilayah konsesi pertambangan bisa berdampak terhadap pengendalian produksi batubara nasional. Penciutan wilayah juga bisa dijadikan pemerintah sebagai Wilayah Pencadangan Negara (WPN).

Seperti diketahui, setelah berubah status menjadi IUPK kelanjutan operasi, Kementerian ESDM telah memangkas luas konsesi tambang batubara PT Arutmin Indonesia sebanyak 40,1% dibanding luas wilayah saat masih berstatus PKP2B.

Ketua IMEF Singgih Widagdo meyakini, dalam memutuskan luasan penicutan wilayah, Kementerian ESDM telah mem-pertimbangkan sejumlah hal.

Daily News Update Page 21

Particularly related to the distribution of coal seams, the production plan projected

by Arutmin while holding the IUPK, as well as the total national production planned by

the government.

Including environmental aspects such as the distribution of protected forest types in

the area. "Maybe in addition to the area of the Arutmin IUPK itself, the government is

also considering the WPN which might start to be implemented," said Singgih to

Kontan.co.id, Tuesday (17/11).

By having a WPN, he assessed the national energy strategic resilience related to coal

demand could be better. Thus, it is not limited to depending on the Domestic

Market Obligation (DMO) policy. With the WPN, the government physically owns the

territory.

Singgih said, WPN can also be cultivated in

part or all of the area with the approval of the Indonesian Parliament. Later, the

status of the WPN can change to a Special Mining Business Area (WUPK).

From these various considerations, he is

sure that the government's decision to reduce the area's area is correct. "So the

decision is integrated from various reasons. Geological conditions, mining

plans, existing forest conditions, corporate production plans or national production

targets, and perhaps considering the WPN that must be owned by the Government,"

explained Singgih.

Singgih also noted that with the large number of coal mining business actors,

production control is actually needed. In terms of production control, it can be

started from the upstream sector, such as the mining area given after considering a

number of matters above.

Terutama terkait dengan sebaran lapisan (seam) batubara, rencana produksi yang diproyeksikan Arutmin selama memegang IUPK, serta total produksi nasional yang telah direncanakan pemerintah.

Termasuk aspek lingkungan seperti sebaran jenis hutan lindung yang ada di wilayah tersebut. "Mungkin selain luasan IUPK Arutmin sendiri, Pemerintah juga mempertimbangkan atas WPN yang mungkin mulai harus dilakukan," sebut Singgih kepada Kontan.co.id, Selasa (17/11).

Dengan memiliki WPN, dia menilai ketahanan strategis energi nasional terkait kebutuhan batubara bisa menjadi lebih baik. Sehingga, tidak sebatas bergantung pada kebi jakan Domestic Market Obligation (DMO). Dengan WPN, secara fisik pemerintah memiliki wilayah.

Kata Singgih, WPN juga dapat diusahakan sebagian atau seluruh luasan dengan persetujuan DPR RI. Nantinya, status WPN bisa berubah menjadi Wilayah Usaha Pertambangan Khusus (WUPK).

Dari berbagai pertimbangan tersebut, dia yakin keputusan pemerintah soal penciutan luas wilayah sudah tepat. "Jadi keputusan terintegrasi dari berbagai alasan. Kondisi geologi, mining plan, kondisi hutan yang ada, rencana produksi baik korporasi atau target produksi nasional, dan mungkin mempertimbang-kan WPN yang harus dimiliki oleh Pemerintah," terang Singgih.

Singgih pun memberikan catatan, dengan jumlah pelaku usaha pertambangan batu-bara yang sangat banyak, pengendalian produksi justru dibutuhkan. Dari sisi pengendalian produksi, bisa dimulai dari sektor hulu, seperti dengan luasan pertam-bangan yang diberikan setelah memper-timbangkan sejumlah hal di atas.

Daily News Update Page 22

"Such as the area given after considering

mining operations that can be carried out

according to good mining practice

principles, company production targets

and total national production," concluded

Singgih.

For information, Arutmin himself

previously had the status of a PKP2B

holder whose contract period ended on

November 1, 2020.

Then, on November 2, 2020, the govern-

ment through the Minister of EMR has

granted an extension of the first 10 years

of operating permits, so that Arutmin's

status has now changed to IUPK as a

continuation of contract/agreement

operations.

Arutmin can continue operations for the

next 10 years, then can be extended for

another 10 years. Referring to Article 169

A of Law Number 3 of 2020 (Minerba Law),

Arutmin can get two extensions in the form

of IUPK as a continuation of contract

operations/agreements for a maximum

period of 10 years, taking into account

efforts to increase state revenue.

This coal company affiliated with the

Bakrie Group owns mines located in Satui,

Senakin, Batulicin and Asam-Asam, South

Kalimantan with an area of 57,107

hectares (ha). With a reduction of 40.1%,

the Arutmin concession area has decreased

by around 22,900 ha. That way, the area of

the concession is now only around 34,207

ha.

"Seperti luasan yang diberikan setelah

mempertimbangkan operasi penambangan

yang dapat dikerjakan dengan kaidah good

mining practice, target produksi per-

usahaan dan total produksi nasional,"

pungkas Singgih.

Sebagai informasi, Arutmin sendiri

sebelumnya berstatus sebagai pemegang

PKP2B yang masa kontraknya sudah

berakhir pada 1 November 2020.

Lalu, pada 2 November 2020, pemerintah

melalui Menteri ESDM telah memberikan

perpanjangan izin operasi 10 tahun

pertama, sehingga status Arutmin kini

berubah menjadi IUPK sebagai kelanjutan

operasi kontrak/perjanjian.

Arutmin bisa melanjutkan operasi selama

10 tahun ke depan, lalu bisa diperpanjang

untuk 10 tahun berikutnya. Merujuk pada

Pasal 169 A Undang-Undang Nomor 3

Tahun 2020 (UU Minerba), Arutmin bisa

mendapatkan dua kali perpanjangan dalam

bentuk IUPK sebagai kelanjutan operasi

kontrak/perjanjian masing-masing untuk

jangka waktu paling lama 10 tahun, dengan

mempertimbangkan upaya peningkatan

penerimaan negara.

Perusahaan batubara yang terafiliasi

dengan Bakrie Group itu memiliki tambang

yang berlokasi di Satui, Senakin, Batulicin,

dan Asam-Asam, Kalimantan Selatan

dengan luas mencapai 57.107 hektare (ha).

Dengan penciutan 40,1% maka wilayah

konsesi Arutmin berkurang sekitar 22.900

ha. Dengan begitu, luas wilayah konsesi-

nya kini tinggal sekitar 34.207 ha.

Daily News Update Page 23

Alert! Rally Since October, Coal Prices Could Drop

Tirta Citradi, CNBC Indonesia

AFTER recording a long rally since mid-

October, the price of the Newcastle thermal coal futures contract began to show signs of correction. However, the decline in prices was only slight.

In yesterday's trade Tuesday (17/11/ 2020), the contract price for coal was closed down 0.16% to US$ 62.5/ton. Earlier last week and early this week the coal price closed flat at US$ 62.6/ton.

Prices that have risen high are prone to correction due to profit-taking by traders. The increase in prices in the market reflects optimism for the Covid-19 vaccine and improvement in terms of funda-mentals.

Last week the market was made cheerful after Pfizer and BioNTech reported that the Covid-19 vaccine candidate they developed had a capability rating of more than 90%. This week it is Moderna's turn to report this.

Investors and traders have become more willing to take risks. As a result, the prices of financial assets and even commodities were also raised. From a fundamental point of view there is also a reason why the price of Newcastle thermal coal may rise despite an illegal boycott from China.

Based on Refinitiv data, Australian exports of coking coal and thermal coal to China reached 3.35 million tonnes in October, up slightly from 3.31 million in September, but dropped dramatically from 12.33 million in June which was the strongest month. this time of year.

Waspada! Reli Sejak Oktober, Harga Batu Bara Bisa Ambles

Tirta Citradi, CNBC Indonesia

USAI mencatatkan reli panjang sejak per-

tengahan bulan Oktober, harga kontrak futures batu bara termal Newcastle mulai menunjukkan adanya sinyal koreksi. Namun penurunan harga yang terjadi tipis saja.

Pada perdagangan kemarin Selasa (17/11/ 2020), harga kontrak batu bara tersebut ditutup melemah 0,16% ke US$ 62,5/ton. Sebelumnya di akhir pekan lalu dan awal pekan ini harga batu bara ditutup flat di US$ 62,6/ton.

Harga yang sudah naik tinggi memang rawan terkoreksi akibat adanya aksi ambil untung oleh para trader. Kenaikan harga di pasar mencerminkan adanya optimisme vaksin Covid-19 hingga perbaikan dari sisi funda-mentalnya.

Minggu lalu pasar dibuat ceria setelah Pfizer dan BioNTech melaporkan kandidat vaksin Covid-19 yang mereka kembangkan mem-punyai tingkat kemampuan lebih dari 90%. Pekan ini giliran Moderna yang melaporkan hal tersebut.

Investor dan trader pun jadi lebih berani untuk mengambil risiko. Alhasil harga aset-aset keuangan dan bahkan komoditas pun ikut terangkat. Dari sisi fundamental pun ada alasan mengapa harga batu bara termal Newcastle bisa naik meski mendapatkan boikot secara tidak resmi dari China.

Berdasarkan data Refinitiv, ekspor Australia untuk jenis batu bara kokas dan batu bara termal ke China mencapai 3,35 juta ton pada Oktober atau naik sedikit dari 3,31 juta pada September, tetapi turun drastis dari 12,33 juta pada Juni yang menjadi bulan terkuat sepanjang tahun ini.

Daily News Update Page 24

Although coal imports from China have experienced a significant decline in recent times, Australian coal exports do not appear to have been significantly affected as this is offset by an increase in exports to other destinations, namely India, South Korea and Japan.

Exports to India in September this year were recorded at 5.97 million tons. However, Indian coal imports from Australia are predominantly coking coal and therefore have little impact on the price of thermal coal.

Outside of China, Australia's main thermal coal customers are Japan and South Korea, which provides a more positive picture for the Kangaroo coal miners.

Australian exports to Japan have increased slightly in recent months. Coal exports were recorded at 8.3 million tonnes in October and 8.45 million in September. Exports in those two months were the best since March.

Shipments to South Korea reached 4.95 million tonnes in October, an increase from 4.24 million in September and became Australia's strongest export since December last year . CNBC INDONESIA

RESEARCH TEAM (twg/twg)

Kendati impor batu bara dari China meng-alami penurunan yang signifikan bela-kangan ini, ekspor batu bara Australia tampaknya tidak terlalu signifika n terdampak karena diimbangi dengan peningkatan ekspor ke destinasi lain yaitu India, Korea Selatan dan juga Jepang.

Ekspor ke India dalam pada bulan Septem-ber tahun ini tercatat sebesar 5,97 juta ton. Namun, impor batu bara India dari Australia sebagian besar merupakan batu bara kokas dan oleh karena itu hanya berdampak kecil pada harga batu bara termal.

Di luar China, pelanggan batu bara termal utama Australia adalah Jepang dan Korea Selatan, yang memberikan gambaran yang lebih positif bagi penambang batu bara asal Negeri Kanguru.

Ekspor Australia ke Jepang sedikit me-ningkat dalam beberapa bulan terakhir. Ekspor batu bara tercatat mencapai 8,3 juta ton di bulan Oktober dan 8,45 juta di bulan September. Ekspor pada dua bulan tersebut menjadi yang terbaik sejak Maret.

Pengiriman ke Korea Selatan mencapai 4,95 juta ton pada Oktober atau mengalami kenaikan dari 4,24 juta pada September dan menjadi ekspor Australia terkuat sejak Desember tahun lalu. TIM RISET CNBC INDONESIA (twg/twg)

China's new copper futures add another card to global yuan deck By Tom Daly, Mai Nguyen and Emily Chow

CHINA will roll out a new copper futures contract this week that will be open to foreign

traders, in a push to boost yuan adoption and wrest some pricing power away from the established industry benchmark in London. The addition of copper, the world's most-traded base metal, to a growing suite of international commodity futures will increase China's appeal to the global trading community, analysts say, even if limits on yuan convertibility remain a barrier to wider adoption.

Daily News Update Page 25

Such yuan-denominated products serve two strategic ends: they give global market participants another reason to use the yuan while also boosting China's pricing power in key commodities markets. "There is no reason why China, being such a big consumer, shouldn't be the price-maker...and not the price-taker," John Browning, managing director of Bands Financial, an international intermediary brokerage for Chinese commodity exchanges, said in a webinar this month. The copper contract starts trade on Thursday on the Shanghai International Energy Exchange (INE), where China's flagship international crude oil futures also trade.

Frederic Neumann, co-head of Asian economic research at HSBC, said two key requirements for international investors to use the yuan more widely were gradually falling into place. The first is "availability of deep, liquid markets for financial products", while the second is smooth convertibility of the yuan, on which Chinese authorities have taken "significant further steps over the past year to facilitate transactions," Neumann added. "Foreign investors ignore onshore trading opportunities at their peril," he said in an email.

A Singapore-based trader who is watching the INE contract closely said China's line-up of yuan-denominated commodity futures was starting to make it a formidable trading venue. "We now have gold, silver, oil and international copper contracts in yuan. That should scare the dollar," said the trader, who declined to be identified.

BUSTING BENCHMARKS

China's launch of its crude oil futures in 2018 sought to increase influence over commodity pricing and promote the yuan, whose internationalisation is a longstanding policy objective. While trading volumes for that contract have been impressive, especially this year, at just one sixth of the dollar-denominated benchmark Brent crude they are far from dominating the global market. China's weight in the global copper market, however, is much larger, accounting for about half the world's usage. The country's emergence as the world's second-largest economy has created an insatiable appetite for the red metal, which is used in everything from power to construction. Booming imports this year have propped up prices on the 143-year old London Metal Exchange and the Shanghai Futures Exchange, the INE's parent bourse, where domestic copper futures are traded.

An executive at a major copper supplier to China expects that "sooner rather than later, (copper) contracts will be in yuan and the INE price." BARRIERS TO GROWTH However, even the most bullish projections for yuan-priced international commodities trade don't expect it to take off for at least another five years. Bands Financial's Browning, who sees the INE copper price eventually becoming a regional benchmark, said strict currency transmission rules adopted after China's 2015 market meltdown have yet to be rolled back, making cross-border currency flows more complex. The INE copper contract will be settled in yuan but investors using an overseas intermediary will be able to use dollars for the initial margin, the collateral investors must stump up to trades the futures, albeit with a 5% haircut. Analysts say China may need to further loosen controls and encourage free conversion of the yuan to help investors overcome concerns about trading. "I think there would need to be quite a bit of regulatory reform, currency reform and probably the removal of capital controls," said Caroline Bain, chief commodities economist at Capital Economics.

Daily News Update Page 26

James Wang, head of sales and dealing at Singapore brokerage Straits Financial, said China's strategic ambitions in developing a global benchmark price won't be achieved immediately. "We don't foresee (this happening) in the next two-to-three years, but in 10 years onwards," Wang said.

Traded volumes of China's international commodity contracts Copper futures volume on ShFE, LME and COMEX Blistering pace: China's copper imports set new annual peak

(Reporting by Emily Chow, Mai Nguyen and Tom Daly; additional reporting by Chen Aizhu in Singapore; Editing by Shivani Singh and Sam Holmes)

Mining could suffer $350bn loss from climate change inaction Vanessa Zhou

MINING is anticipated to be the second hardest-hit industry in Australia should there be an

inaction to mitigate climate change, according to Deloitte.

In a Deloitte Access Economics report for November, the company predicts the economic loss in mining could amount to $350 billion by 2070, exceeded only by trade and tourism with a

loss of $500 billion.

A total of $3.4 trillion in economic loss is estimated to result in 880,000 jobs lost across Australia in 50 years.

Fifteen per cent of Australian jobs today belong to emission intensive sectors such as mining

and quarrying.

Although the effects are not spread evenly across Australian states and territories or across

industries, Deloitte stated that the choice to take no action in regard to climate change was costly for all businesses, sectors and community.

“The policy choices over the next two to three years are the choices that will shape the next

10 to 20; this is the narrow window we have to choose the change that will prevent the worst consequences of a warming world,” Deloitte Access Economics partner Pradeep Philip stated.

According to Deloitte, a business as usual growth trajectory is miscalculated if it does not

account for climate change.

“While doing nothing is a choice, it is not costless… This is true in Australia and the rest of the

world,” the company stated in the report.

Other top Australian industries at risk to the physical damages of climate change are manufacturing, agriculture and construction.

Daily News Update Page 27

Coal India issues tender for mechanised transportation at 35 mining projects

The selected bidders will have to set up coal coal handling plants (CHPs) and silos for

rapid loading By NS Energy Staff Writer

STATE-owned Coal India (CIL) has issued tenders for 35 mining projects seeking potential

bidders for the mechanised transportation of coal to delivery points.

The selected bidders for the mechanised transportation of dry fuel tender will have to set up coal coal handling plants (CHPs) and silos for rapid loading, which will involve an estimated investment of INR125bn ($1.6bn).

By 2024, the CHPs and silos will be commissioned across six of CIL’s subsidiaries to promote a cleaner environment and reduce transportation costs, reported Press Trust of India.

As part of the mechanised transportation, the firms will move the coal through piped conveyor belt mode.

CIL was quoted by the news agency as saying in a statement: “Coal India’s pitch for efficient and environment friendly mechanised coal transportation in its first-mile connectivity, replacing the road movement, gained pace with the company successfully issuing tenders for all the 35 projects, of phase-1, by September 2020 as planned.”

Handling capacity of 35 projects will be 406MTPA

The handling capacity of the 35 projects identified for mechanised transportation of dry fuel will be 406 million tonnes per year (MTPA) while each of the mining projects is estimated to have a production capacity of at least 4MTPA.

Through National Environmental Engineering Institute (NEERI), Kolkata, CIL has already commenced a study to measure environmental benefits of the projects.

CIL was quoted by Business Standard as saying in a statement: “Another upside is that with the reduced manual intervention, precise pre-weighed quantity of coal can be loaded. It also spurs loading of better quality coal.”

In September this year, CIL launched a global tender to the country’s first coal to methanol (C2M) plant in West Bengal, with an investment of INR60bn ($813.1m).

China launches yearlong campaign of coal-mining safety checks By: Reuters

CHINA has launched a safety inspection effort targeting all working coal mines and coal-

mining projects after several recent fatal accidents, a statement by its State Council, or Cabinet, showed on Tuesday.

Daily News Update Page 28

The world's largest coal miner and coal consumer reported more than 100 coal mining accidents in 2020.

The checks, running from Friday until the end of next year, focus on coal mining infrastructure, risk prevention management for major disasters and capabilities for emergency response and rescue, the statement showed.

Inspectors will also crack down on miners operating beyond their planned production or approved capacity.

In a statement on Friday, national coal mine safety authorities vowed to tighten scrutiny over local government checks on coal safety.

The latest campaign is expected to put a brake on expansion of coal production and further tighten supply of the fuel, as stringent curbs on coal imports halved October arrivals in China.

China produced 3.13-billion tonnes of coal in the first 10 months, up just 0.1% from the corresponding period last year, official data show.

The most-active thermal coal futures at the Zhengzhou Commodity Exchange hit a record high of 619 yuan ($94.28) a tonne on Tuesday.

Alberta coal production falls to more than 12-year low in September Author: Tyler Godwin, Editor: Valarie Jackson

COAL production in Alberta, Canada, fell to a more-than-12-year low 1.14 million mt in

September, down 20.6% from 1.43 million mt in August and 41.1% lower than the 1.93 million mt in the year-ago month, according to Alberta Energy Regulator data released Nov. 16.

Bituminous thermal coal output ticked lower to 797,152 mt in September, from 801,274 mt in August, but up from 572,463 mt in the year-ago month.

Production at Coalspur Mines Ltd.'s Vista thermal mine, owned by the Cline Group and based in Hinton, was at 797,152 mt, compared with 801,274 mt in August and 226,444 mt in September 2019.

Coalspur, which first started production in February 2019, has produced 5.97 million mt through the first nine months of 2020, more than tripling the 1.88 million mt of the same period a year ago.

For the third time this year and the second straight month, Alberta's other bituminous thermal mine, Coal Valley, which is owned by Westmoreland Mining Holdings, did not produce any coal in September.

Bituminous thermal coal production through the first nine months of 2020 is up 34.7% year on year at 6.92 million mt and the highest for the corresponding period in over 12 years, according to AER data that goes back to 2009.

Daily News Update Page 29

Both Coal Valley and Coalspur, which are mined from the same seam, ship all of their coal by rail to ports on the west coast of British Columbia for deliveries to power plants overseas.

According to AER data, a four-month high 524,029 mt of bituminous thermal coal was exported from Alberta in September, up from 399,528 mt in August and 445,243 mt in September 2019.

South Korea was shipped 162,740 mt of thermal coal in September, up from 152,989 mt in August, but down from 165,000 mt in the year-ago month, while a record-high 146,191 mt and 86,002 mt was exported to Chile and Singapore, respectively, up from 70,947 mt and 79,720 mt in August. An additional 67,884 mt was shipped to Japan in September, down from 245,908 mt in the previous month.

About 4.13 million mt of bituminous thermal was exported through September, up from 2.47 million mt exported in the same period a year ago.

Alberta has shipped 1.43 million mt of thermal coal to South Korea and 926,662 mt to Japan this year, compared with 461,732 mt and 520,159 mt, respectively, in the same period a year earlier. The province has also exported 758,194 mt to Singapore and 432,554 mt to Chile, compared with 1.13 million mt and zero last year.

No met coal produced again in September

For the third straight month, Alberta in September did not produce any metallurgical coal, compared with 374,477 mt in September 2019.

Met coal production through the first nine months is at 2.3 million mt, down from 2.91 million mt in the same period a year earlier.

Subbituminous output falls to more than 12-year low

Subbituminous coal production at the five mines in the province fell to a more than 12-year low 340,212 mt in September, down from 631,717 mt in August and 984,241 mt in September 2019. It was the lowest monthly total on record, beating out the previous low 459,344 mt produced in July.

Cumulative production through September is at 5.6 million mt, down from 8.57 million mt in the same period a year ago. It was the lowest production total through the first nine months of a year in more than 12 years.

Daily News Update Page 30

RANKED: Top 10 capital raisings – mine developers MINING.com Editor

DEVELOPING a mine requires capital intensive activities in and around a project site, and

companies may be required to raise millions of dollars to take a project through construction and into operations.

Using data provided by Miningintelligence, MINING.COM listed the top ten mine developers that have raised significant amounts of capital since the beginning of the year (up to November 4, 2020).

To be considered a developer, a company must have a maximum of two operating mines and at least one project in the construction, commissioning, or feasibility stage or prefeasibility stage.

Among all miners that fit that description, Australia-based gold miner Resolute Mining secured the highest amount of capital so far with nearly $125.5 million in completed financings.

The second and third places are also occupied by two Australian firms — Panoramic Resources and Gascoyne Resources — with $61.36 million and $61.32 million raised respectively.

Daily News Update Page 31

Altogether, the top 10 miners in terms of year-to-date funding raised a total of $414 million. Most of the capital was raised via either a private placement, a rights offering or — in the case of Premier Gold Mines and Uranium Energy — a public offering. The top 3 capital raisers used both private placement and rights offerings.