Daily News Update Page 1

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Coal Market Has Not Recovered, This Is Said PTBA About 2021 Production Projection Pasar Batu Bara Belum Pulih, Ini Kata PTBA Soal Proyeksi Produksi 2021 Coal giant Bumi secures 10-year extension at S. Kalimantan mines This is Bukit Asam's (PTBA) coal sales and production until the third quarter of 2020 Simak penjualan dan produksi batubara Bukit Asam (PTBA) hingga kuartal ketiga 2020 Darma Henwa Prints 11.61% Increase in Coal Production Darma Henwa Cetak Kenaikan Produksi Batubara 11,61% 2 BUMI's Subsidiaries Received Platinum Indonesian CSR Award 2020 2 Anak Usaha BUMI Borong Platinum Indonesian CSR Award 2020 Nickel-Related Shares Predicted to Continue to Shine Saham Terkait Nikel Diprediksi Bakal Terus Mengkilap Rp.30.4 T Coal Gasification Project Targeted from Early 2021 Proyek Gasifikasi Batu Bara Rp30,4 T Dibidik Mulai Awal 2021 Looking at the future prospects for Bukit Asam's (PTBA) business Melihat prospek bisnis Bukit Asam (PTBA) ke depan Air Products Invest in India, Bigger than Indonesia Air Products Investasi di India, Lebih Besar daripada Indonesia Pressured by Coal Prices, Samindo's Net Profit Drops 23.46% Tertekan Harga Batu Bara, Laba Bersih Samindo Turun 23,46% RI (Should be) Rich, Nickel Prices Rise Due to Electric Cars RI (Harusnya) Kaya Nih, Harga Nikel Naik Karena Mobil Listrik

Bisnis The Jakarta Post Kontan Investor Daily CNBC Indonesia Bisnis CNN Indonesia Kontan Bisnis Dunia Energi CNBC Indonesia

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Here are the 5 most innovative machine learning works for mineral exploration Inilah 5 Karya Machine Learning Paling Inovatif Untuk Eksplorasi Mineral Open drawbells number passes 300 at Grasberg Block Cave & DMLZ Copper price jumps as China turns away Australian concentrate Vietnam's thermal coal imports seen resilient through 2021 despite funding challenges ahead Metso Outotec ups recovery at Hudbay Constancia with centre launder upgrade Turquoise Hill seeks Oyu Tolgoi clarity from Rio Tinto

Dunia Tambang Int'l Mining Mining.com S&P Global Platts Int'l Mining Australian Mining

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Daily News Update Page 3

Coal Market Has Not Recovered, This Is Said PTBA About 2021

Production Projection Denis Riantiza Meilanova

PT BUKIT Asam Tbk. (PTBA) is optimistic

that the company's coal production next

year will not be lower than this year's target.

PTBA President Director Arviyan Arifin

estimates that next year's coal market conditions will not fully recover as it was

before the Covid-19 pandemic.

However, he is optimistic that the

company's production figure next year will not be lower than this year in line with the

increasing trend of coal demand and prices in October and November.

"In terms of volume, we are currently reviewing a work plan for the 2021 budget,

but it is not final yet. God willing, we believe it will not be lower than this year,"

said Arviyan in a virtual press conference on the performance of the third quarter of

2020, Friday (6/11/2020).

The company's coal production up to the third quarter of 2020 was recorded at 19.4

million tons, down about 10 percent compared to the same period last year.

This realization reached 77 percent of this year's target which had been adjusted to

be 25.1 million tons.

Meanwhile, the company's coal sales

volume up to the third quarter of 2020 reached 18.6 million tons, a decrease of

about 9 percent compared to the same period last year which could reach 20.6

million tons.

Pasar Batu Bara Belum Pulih, Ini Kata PTBA Soal Proyeksi

Produksi 2021 Denis Riantiza Meilanova

PT BUKIT Asam Tbk. (PTBA) optimistis

produksi batu bara perseroan tahun depan tidak akan lebih rendah dari target tahun ini.

Direktur Utama PTBA Arviyan Arifin memperkirakan kondisi pasar batu bara tahun depan belum akan sepenuhnya pulih sebagaimana kondisi sebelum pandemi Covid-19.

Meski demikian, dia optimistis angka produksi perseroan tahun depan tidak lebih rendah dari tahun ini seiring dengan adanya tren peningkatan permintaan dan harga batu bara pada Oktober dan November ini.

"Dari sisi volume sedang dikaji. Kami sedang susun rencana kerja anggaran 2021, tapi belum final. Insyaallah kami berkeyakinan tidak lebih rendah dari tahun ini," ujar Arviyan dalam konferensi pers kinerja kuartal III/2020 secara virtual, Jumat (6/11/2020).

Produksi batu bara perseroan sampai dengan kuartal III/2020 tercatat 19,4 juta ton atau turun sekitar 10 persen di-bandingkan dengan periode yang sama tahun lalu. Realisasi tersebut mencapai 77 persen dari target tahun ini yang telah disesuaikan menjadi 25,1 juta ton.

Adapun, volume penjualan batu bara perseroan sampai dengan kuartal III/2020 mencapai 18,6 juta ton atau turun sekitar 9 persen bila dibandingkan dengan periode yang sama tahun lalu yang bisa mencapai 20,6 juta ton.

Daily News Update Page 4

PTBA's performance until the third quarter of 2020 was still affected by the Covid-19 pandemic which caused a decrease in energy consumption due to the imposition of lockdowns in several export destination countries such as China and India.

Likewise with domestic conditions which are the majority market for PTBA. The decline in electricity consumption in large areas of Indonesia such as DKI Jakarta, Banten, and Bali also has an impact on the decline in domestic coal absorption.

The price of coal, which has continued to decline for three quarters, is also a challenge for the company. Based on data from the Ministry of Energy and Mineral Resources, this benchmark coal price has fallen by around 24 percent from US$ 65.93 per tonne in January 2020 to US$ 49.92 per tonne in September 2020. Editor:

Zufrizal

Kinerja PTBA hingga kuartal III/2020 masih terdampak oleh pandemi Covid-19 yang menyebabkan penurunan konsumsi energi akibat diberlakukannya lockdown di beberapa negara tujuan ekspor seperti, China dan India.

Demikian pula dengan kondisi di dalam negeri yang menjadi pasar mayoritas PTBA. Turunnya konsumsi l istrik di wilayah besar Indonesia seperti DKI Jakarta, Banten, dan Bali juga berdampak turunnya penyerapan batu bara domestik.

Harga batu bara yang terus merosot selama tiga triwulan ini juga menjadi tantangan tersendiri bagi perseroan. Berdasarkan data Kementerian Energi dan Sumber Daya Mineral, harga batu bara acuan ini merosot sekitar 24 persen dari US$65,93 per ton pada Januari 2020 menjadi US$49,92 per ton pada September 2020. Editor : Zufrizal

Coal giant Bumi secures 10-year extension at S. Kalimantan mines Norman Harsono | The Jakarta Post

PT BUMI Resources, Indonesia’s top coal miner by output, has been saved by the bell as its

subsidiary has secured a 10-year permit extension over a concession in South Kalimantan.

The subsidiary, PT Arutmin Indonesia, secured the permit from the Energy and Mineral Resources Ministry on Nov. 2, just one day after its existing permit expired on Nov. 1. The miner may now exploit the concession until Nov. 1, 2030.

With the permit extension, Arutmin becomes the first of seven old mining giants to receive the legal certainty promised by the long-awaited Coal and Mineral Mining Law, which was only issued in July.

“[This was] the answer to our hopes this entire time,” said Bumi Resources president director Saptari Hoedaja in a statement on Wednesday, adding that the company was “committed to continue complying with applicable laws and regulations”.

“It’s correct,” Energy and Mineral Resources Ministry mining director general Ridwan Djamaluddin said when confirming the extension on Tuesday, kontan.co.id reported.

Daily News Update Page 5

The energy ministry is still working on three derivative government regulations related to commercialization, spatial planning and land reclamation in the mining industry. The deadline to issue the regulations is June 10 next year.

Lawmakers have admitted to pushing the law’s issuance to this year to protect the seven giants, whose existing permits – technically called coal contracts of work (PKP2B) – are slated to end between 2020 and 2025, starting with that of Arutmin.

For state coffers, contract-based miners pay higher royalty rates than other miners.

Arutmin will retain control over the concession but its permit will change from a contract to a special mining permit (IUPK). Arutmin’s sister company, PT Kaltim Prima Coal, whose contract expires on Dec. 31 next year, is slated to undergo a similar extension process.

This is Bukit Asam's (PTBA) coal sales and production until the

third quarter of 2020 Reporter: Akhmad Suryahadi | Editor:

Wahyu T. Rahmawati

PT BUKIT Asam Tbk (PTBA) reported a

sales volume of 18.6 million tons until the third quarter of 2020. This realization decreased 9.7% from sales in the same period last year which reached 20.6 million tons.

Meanwhile, the coal production volume of this state-owned company was at 19.4 million tons, a decrease of 10 .1% compared to the realization of production in the third quarter of 2019 which reached 21.6 million tons.

President Director of Bukit Asam Arviyan Arifin said the decline in production was in line with the RKAB approved by the Ministry of EMR and the factor of weakening coal prices. The realization of PTBA's production up to the first nine months of 2020 reflects 77% of this year's production target which has been adjusted, which is 25.1 million tons.

Simak penjualan dan produksi batubara Bukit Asam (PTBA) hingga kuartal ketiga 2020 Reporter: Akhmad Suryahadi | Editor:

Wahyu T. Rahmawati

PT BUKIT Asam Tbk (PTBA) melaporkan

volume penjualan sebesar 18,6 juta ton hingga kuartal ketiga 2020. Realisasi ini menurun 9,7% dari realisasi penjualan di periode yang sama tahun lalu yang men-capai 20,6 juta ton.

Sementara itu, volume produksi batubara emiten pelat merah ini berada di angka 19,4 juta ton, menurun 10,1% dibanding dengan realisasi produksi di triwulan ketiga 2019 yang mencapai 21,6 juta ton.

Direktur Utama Bukit Asam Arviyan Arifin mengatakan, penurunan produksi ini seiring dengan RKAB yang disetujui oleh Kementerian ESDM dan faktor pelemahan harga batubara. Adapun realisasi produksi PTBA hingga sembilan bulan pertama 2020 mencerminkan 77% dari target produksi tahun ini yang telah disesuaikan, yakni 25,1 juta ton.

Daily News Update Page 6

Bukit Asam Commercial Director Adib Ubaidillah added that the market and coal commodity prices have gr adually recovered towards the end of this year. Demand for coal, both from within and outside the country, is also starting to recover. This is reflected in the improve-ment in a number of coal reference indices, such as the Indonesian Coal Index (ICI), the Newcastle index, and the reference coal price (HBA).

Adib admitted that PTBA's coal in the fourth quarter was sold out in accordance with the sales target set this year. "The sales plan, God willing, has been sold and achieved in volume. There is an increase in the profile of export earnings and high calorie coal,” said Adib during a public expose, Friday (6/11).

Throughout this year, PTBA is targeting sales volume of up to 24.9 million tons. Adib explained that in the third quarter, Bukit Asam's coal sales to the domestic market still dominated, namely 57% of sales.

The rest is exports to the markets of India, Hong Kong and Malaysia. In the third quarter, PTBA was not too aggressive in selling coal to China. However, in the fourth quarter, Adib said there were quite large sales to China.

Citing financial reports, during the first nine months of 2020, PTBA posted revenues of IDR 12.84 trillion, down 20.9% from the previous year's realization of Rp 16.25 trillion. Of the total revenue, as much as 59% or Rp 7.58 trillion was revenue from domestic sales.

Sales to India amounted to Rp 1.56 trillion and Taiwan Rp 988.376 billion. Sales to Hong Kong reached Rp. 608.29 billion, to South Korea at Rp. 439.96 billion.

Direktur Niaga Bukit Asam Adib Ubaidillah menambahkan, pasar dan harga komoditas

batubara sudah berangsur pulih jelang akhir tahun ini. Permintaan batubara, baik dari

dalam maupun luar negeri juga mulai pulih. Hal ini tercermin dari membaiknya sejumlah

indeks acuan batubara, seperti Indonesian Coal Index (ICI), indeks Newcastle, hingga

harga batubara acuan (HBA).

Adib mengaku batubara PTBA pada kuartal keempat sudah habis terjual (sold out) sesuai

dengan target penjualan yang dipasang pada tahun ini. “Rencana penjualan Insya Allah

sudah terjual dan tercapai secara volume. Ada kenaikan di dalam profil pendapatan

ekspor dan batubara kalori tinggi,” ujar Adib saat paparan publik, Jumat (6/11).

Sepanjang tahun ini, PTBA membidik volume penjualan hingga 24,9 juta ton. Adib merinci, di kuartal ketiga penjualan batubara Bukit Asam ke pasar domestik masih mendomi-nasi, yakni 57% dari penjualan.

Sisanya merupakan ekspor yang dilempar ke pasar India, Hong Kong, hingga Malaysia. Pada kuartal ketiga, PTBA tidak terlalu agresif dalam menjual batubara ke China. Namun di kuartal keempat ini, Adib menga-takan terdapat penjualan ke China dengan jumlah yang cukup besar.

Mengutip laporan keuangan, selama periode sembilan bulan pertama 2020, PTBA mem-bukukan pendapatan senilai Rp 12,84 triliun, menurun 20,9% dari realisasi peridoe tahun sebelumnya yang mencapai Rp 16,25 triliun. Dari total pendapatan, sebanyak 59% atau Rp 7,58 triliun merupakan pendapatan dari penjualan di dalam negeri.

Penjualan ke India sebesar Rp 1,56 triliun dan Taiwan senilai Rp 988,376 miliar. Penjualan ke Hong Kong mencapai Rp 608,29 miliar, hingga Korea Selatan senilai Rp 439,96 miliar.

Daily News Update Page 7

Meanwhile, the stable performance was shown by the volume of transportation, namely 17.8 million tons, or the same as last year. The transportation target installed by the Kompas100 Index constituents is 23 million tons of coal for this year.

Sementara itu, kinerja stabil ditunjukkan oleh volume pengangkutan yakni sebesar 17,8 juta ton atau sama dengan tahun lalu. Adapun target angkutan yang dipasang konstituen Indeks Kompas100 tersebut sebesar 23 juta ton batubara untuk tahun ini.

Darma Henwa Prints 11.61% Increase in Coal Production

Nabil Alfaruq

PT DARMA Henwa Tbk (DEWA) posted an

increase in coal production (coal delivery) of 11.61% to 12.77 million tons in the third quarter of 2020, compared to the same period last year of 11.44 million tons.

Darma Henwa, through his official statement, said that coal production at the Bengalon coal mine, East Kalimantan, was the largest contributor to 58.84% of total coal production and 70.17% of overburden removal to the company's total overburden removal.

In detail, until the third quarter of 2020, the company's total land stripping reached 86.03 million bcm, up 4.02% from the same period the previous year which received 82.70 million bcm. The increase in business performance is supported by improvements in equipment performance with high availability of equipment, successful equipment repairs, and good utilization of equipment. In addition, the mining sequences were better executed.

The increase in production volume affected the company's revenue growth by 30.51 percent to US$ 169.11 million by September 2020, compared to the same period in the previous year which earned US$ 129.58 million.

Darma Henwa Cetak Kenaikan Produksi Batubara 11,61%

Nabil Alfaruq

PT DARMA Henwa Tbk (DEWA) membuku-

kan kenaikan produksi batubara (coal delivery) 11,61% menjadi 12,77 juta ton hingga kuartal III-2020, dibandingkan periode sama tahun lalu sebanyak 11,44 juta ton.

Darma Henwa melalui keterangan resminya menyebutkan produksi batubara di tambang batubara Bengalon, Kalimantan Timur, men-jadi penyumbang terbesar sebanyak 58,84% terhadap total produksi batubara dan pengu-pasan tanah (overburden removal) sebanyak 70,17% terhadap total overburden removal perseroan.

Secara rinci, hingga kuartal III-2020, total pengupasan tanah perseroan mencapai 86,03 juta bcm, naik 4,02% dari periode sama tahun sebelumnya yang memperoleh 82,70 juta bcm. Peningkatan kinerja bisnis tersebut didukung oleh perbaikan kinerja alat dengan tingginya ketersediaan peralatan, berhasilnya perbaikan peralatan, dan pemanfaatan peralatan yang baik. Selain itu, pengerjaan urutan penam-bangan pun dilakukan dengan lebih baik.

Peningkatan volume produksi berimbas ter-hadap pertumbuhan pendapatan perseroan sebanyak 30,51% menjadi US$ 169,11 juta hingga September 2020, dibandingkan periode sama pada tahun sebelumnya yang memperoleh US$ US$ 129,58 juta.

Daily News Update Page 8

The company's management said that the revenue was contributed by the coal sector, which is the company's current business focus. All mines managed to record an increase in revenue.

In detail, revenue from the Bengalon coal mine project, East Kalimantan owned by PT Kaltim Prima Coal increased 36.30% from US$ 92.34 million to US$ 125.86 million. Revenue from the Asam Asam coal mine project, South Kalimantan owned by PT Arutmin Indonesia, grew 5.84 percent from US$ 32.35 million to US$ 34.24 million. Income from the Satui coal mining project, South Kalimantan, owned by PT Cakrawala Langit Sejahtera, increased significantly by 87.43 percent from US$ 4.26 million to US$ 7.99 million.

From this acquisition, the company pocketed a profit of US$ 1.05 million, this shows an improvement compared to the same period last year which recorded a loss of US$ 1.57 million.

Meanwhile, bank debt and company finance lease debt decreased, this was due to a number of payments to creditors. Thus, the debt to equity ratio or Debt to Equity (DER) decreased 0.49 times at the end of 2019 to 0.44 times in the first semester of 2020. Editor: Parluhutan

Manajemen perseroan menyebutkan, raihan pendapatan tersebut dikontribusi oleh sektor batubara yang menjadi fokus bisnis perseroan saat ini. Seluruh tambang yang dikelola men-catatkan kenaikan pendapatan.

Secara rinci, pendapatan dari proyek tambang batubara Bengalon, Kalimatan Timur milik PT Kaltim Prima Coal naik 36,30% dari US$ 92,34 juta menjadi US$ 125,86 juta. Pendapatan dari proyek tambang batubara Asam Asam, Kal imantan Selatan milik PT Arutmin Indonesia tumbuh 5,84% dari US$ 32,35 juta ke posisi US$ 34,24 juta. Pendaptan dari proyek tambang batubara Satui, Kalimantan Selatan kepunyaan PT Cakrawala Langit Sejahtera naik signifikan sebesar 87,43% dari US$4,26 juta menjadi US$7,99 juta.

Dari perolehan tersebut, perseroan mengan-tongi laba sebesar US$ 1,05 juta, hal ini me-nunjukan perbaikan dibandingkan periode sama tahun lalu yang membukukan kerugian sebesar US$ 1,57 juta.

Sedangkan utang bank dan utang sewa pem-biyaan perseroan mengalami penurunan, hal ini disebabkan oleh adanya sejumlah pem-bayaran kepada kreditur. Maka demikian, rasio utang terhadap modal atau Debt to Equity (DER) menurun 0,49 kali di akhir 2019 menjadi 0,44 kali di semester I-2020. Editor : Parluhutan

2 BUMI's Subsidiaries Received Platinum Indonesian CSR Award

2020

PT BUMI Resources Tbk. (BUMI) through

its subsidiaries PT Arutmin Indonesia (Arutmin) and PT Kaltim Prima Coal (KPC) won prestigious awards at the Indonesian CSR Award (ICA) 2020 held in Jakarta (6/11).

2 Anak Usaha BUMI Borong Platinum Indonesian CSR Award

2020

PT BUMI Resources Tbk. (BUMI) melalui

anak usahanya PT Arutmin Indonesia (Arutmin) dan PT Kaltim Prima Coal (KPC) berhasil meraih penghargaan bergengsi dalam ajang Indonesian CSR Award (ICA) 2020 yang diselenggarakan di Jakarta (6/11).

Daily News Update Page 9

The appreciat ion event held by the Corporate Forum for Community Development (CFCD) together with the Coordinating Ministry for Human Develop-ment and Culture of the Republic of Indonesia supported by the National Standardization Agency for Indonesia (BSN) based on ISO 26000 SR (SNI 26000: 2013) includes 7 core sustainability subjects, namely Good Governance, Human Rights, Labor Practice, Fair Operating Practices, Environment, Consumer Issues and Community involvement and Develop-ment.

In the ICA 2020 event which is held every 3 years, Arutmin won 9 Platinum awards, 3 Gold awards and 1 best CDO (Community Development Officer) award, the Grand Gold award for the Best Company. Meanwhile, KPC won 9 Platinum awards, 2 Gold awards and 1 Best Corporate Partner Community Individual award, Grand Silver award for Best Company.

Saptari Hoedaja, President Director of BUMI, said that his party was honored and happy with the Platinum Indonesian CSR Award 2020 given by the Coordinating Ministry for Human Development and Culture of the Republic of Indonesia.

"This provides additional evidence that the BUMI group is committed to complying with all environmental regulations, increasing the Company's role in environmental management, conservation and efficiency in the use of natural resources (water and energy), preserving biodiversity, and implementing community development programs (Community Development)," he said in a written statement, Monday (9/11/2020).

Saptari added that BUMI is a world-class company known for its excellence in Environmental, Social and Corporate Governance (ESG) and CSR. This award is...

Event apresiasi yang digelar oleh Corporate Forum for Community Development (CFCD) bersama dengan Kementerian Koordinator Bidang Pembangunan Manusia dan Kebudayaan RI yang didukung oleh Badan Standardisasi Nasional (BSN) dengan berdasarkan pada ISO 26000 SR (SNI 26000:2013) meliputi 7 subyek inti Sustain-ability yaitu Good Governance, Human Rights, Labor Practice, Fair Operating Practices, Environment, Consumer Issues and Community involvement and Development.

Dalam ajang ICA 2020 yang diselenggarakan tiap 3 tahun sekali ini, Arutmin meraih 9 penghargaan Platinum, 3 penghargaan Gold dan 1 penghargaan CDO (Community Development Officer) terbaik, penghargaan Grand Gold untuk Perusahaan Terbaik. Sementara itu, KPC meraih 9 penghargaan Platinum, 2 penghargaan Gold dan 1 peng-hargaan Individu Masyarakat Mitra Perusaha-an terbaik, penghargaan Grand Silver untuk Perusahaan Terbaik.

Saptari Hoedaja, Presiden Direktur BUMI, mengatakan pihaknya merasa terhormat dan berbahagia atas penghargaan Platinum Indonesian CSR Award 2020 yang diberikan Kementerian Koordinator Bidang Pem-bangunan Manusia dan Kebudayaan RI.

"Ini memberikan bukti tambahan bahwa grup BUMI berkomitmen untuk mematuhi semua peraturan lingkungan, meningkatkan peran Perusahaan dalam pengelolaan lingkungan, konservasi dan efisiensi dalam penggunaan sumber daya alam (air dan energi), peles-tarian keanekaragaman hayati, dan melak-sanakan program pengembangan masyarakat (Community Development)," ujarnya dalam pernyataan tertulis, Senin (9/11/2020).

Saptari menambahkan, BUMI adalah per-usahaan kelas dunia yang terkenal dengan keunggulannya dalam Environmental, Social and Corporate Governance (ESG) dan CSR. Penghargaan ini...

Daily News Update Page 10

This award is proof of the Company's commitment to realizing sustainable CSR programs, good and transparent GCG implementation, excellence in improving the quality of the environment and providing positive benefits for the community, local government and state while contributing to the fulfillment of Sustainable Development Targets Develop-ment Goals - SDG's) in accordance with the Presidential Regulation of the Republic of Indonesia No.59 of 2017 concerning the Implementation of Achieving the Sustain-able Development Goals.

"The company would like to thank employees, management and stakeholders for this achievement. This award spurs us to do even better in the future," said Saptari. (dob/dob)

Penghargaan ini merupakan bukti komitmen Perusahaan dalam mewujudkan program-program CSR yang berkelanjutan, imple-mentasi GCG yang baik dan transparan, unggul dalam peningkatan kualitas ling-kungan hidup dan memberikan manfaat positif bagi masyarakat, pemerintah daerah dan negara sekaligus berkontribusi dalam pemenuhan Target-Target Pembangunan Berkelanjutan (Sustainable Development Goals - SDG's) sesuai dengan Peraturan Presiden Republik Indonesia No.59 Tahun 2017 Tentang Pelaksanaan Pencapaian Tujuan Pembangunan Berkelanjutan.

"Perusahaan mengucapkan banyak terima kasih kepada karyawan, manajemen dan pemangku kepentingan (Stakeholder) atas pencapaian ini. Penghargaan ini memacu kami untuk melakukan yang lebih baik lagi di masa depan," ujar Saptari. (dob/dob)

Nickel-Related Shares Predicted

to Continue to Shine Dhiany Nadya Utami

THE STRENGTHENING of stocks with

nickel-related business portfolios is expected to continue in line with the upward trend in metal prices for the next year.

Recently, nickel commodity prices have indeed been in a bullish trend in line with the incessant penetration of electric vehicles globally, considering that the base metal is the main raw material for electric vehicle batteries.

Based on Bloomberg data, nickel prices on the London stock exchange have strengthened by 9.42 percent throughout 2020. Nickel closed at US$ 16,023 per ton in mid-October 2020, nickel's highest closing position in the last 11 months.

Saham Terkait Nikel Diprediksi

Bakal Terus Mengkilap Dhiany Nadya Utami

PENGUATAN harga saham-saham yang

memiliki portofolio bisnis terkait komoditas

nikel diperkirakan berlanjut seiring tren

kenaikan harga logam itu hingga tahun depan.

Belakangan ini, harga komoditas nikel memang tengah tengah berada dalam tren bullish sejalan dengan gencarnya penetrasi kendaraan listrik secara global, mengingat logam dasar itu merupakan bahan baku utama baterai kendaraan listrik.

Berdasarkan data Bloomberg, harga nikel di bursa London telah menguat hingga 9,42 persen sepanjang tahun berjalan 2020. Nikel sempat ditutup di level US$16.023 per ton pada medio Oktober 2020, posisi penutupan tertinggi nikel sejak 11 bulan terakhir.

Daily News Update Page 11

In the aftermath, many investors hunted for stocks related to the nickel business, such as PT Aneka Tambang Tbk. (ANTM), PT Vale Indonesia Tbk. (INCO), PT Trinitan Metals and Minings Tbk. (PURE), and PT Harum Energy Tbk. (HRUM).

ANTM has been observed to have gained 33.93 percent throughout the 2020 current year and has appreciated up to 56.25 percent in the last 3 trading months. INCO also rose 17.31 percent year to date and rose 24.49 percent in the last 3 trading months.

Likewise, PURE, which is building a nickel smelter in the Special Economic Zone (KEK) of Palu, has also managed to increase sharply by 125.42 percent in the last three months, even though the performance during the year 2020 was still corrected by 1.48 percent.

HRUM experienced the highest increase which jumped 62.12 percent year to date, outperforming other nickel stocks. In the last 3 months, HRUM has skyrocketed 79.83 percent.

Semuel Sekuritas Indonesia analyst Dessy Lapagu said that the strengthening of ANTM and INCO was more driven by the sentiment of forming a holding company for state-owned enterprises (BUMN) in the battery production sector.

"In addition, the strengthening of global nickel prices will also be encouraged," she told Bisnis, Thursday (5/11/2020).

She estimates that this trend will continue because the strengthening of global nickel prices is also predicted to continue until next year. This is supported by the increase in demand.

"In the short term, you estimate it will still strengthen up to the end of the year and in the long term we are still optimistic that the strengthening will still be sustainable," she said.

Sebagai buntutnya, saham-saham yang berkaitan dengan bisnis nikel banyak diburu investor, seperti PT Aneka Tambang Tbk. (ANTM), PT Vale Indonesia Tbk. (INCO), PT Trinitan Metals and Minings Tbk. (PURE), dan PT Harum Energy Tbk. (HRUM).

ANTM terpantau berhasil menguat 33,93 persen sepanjang tahun berjalan 2020 dan terapresiasi hingga 56,25 persen dalam 3 bulan perdagangan terakhir. INCO juga menguat 17,31 persen secara year to date dan naik 24,49 persen dalam 3 bulan perdagangan terakhir.

Begitu pula PURE yang tengah membangun smelter nikel di Kawasan Ekonomi Khusus (KEK) Palu pun berhasil naik tajam 125,42 persen dalam tiga bulan terakhir, kendati kinerja sepanjang tahun berjalan 2020 masih terkoreksi 1,48 persen.

Adapun kenaikan tertinggi dialami HRUM yang melonjak 62,12 persen secara year to date, mengungguli kinerja saham nikel lainnya. Dalam 3 bulan terakhir pun, HRUM telah meroket 79,83 persen.

Analis Semuel Sekuritas Indonesia Dessy Lapagu mengatakan penguatan ANTM dan INCO lebih terdorong oleh sentimen pembentukan holding badan usaha milik negara (BUMN) dalam sektor produksi baterai.

“Selain itu didorong penguatan harga global nikel,” katanya kepada Bisnis, Kamis (5/11/2020).

Dia memperkirakan tren tersebut masih akan berlanjut sebab penguatan harga nikel global juga diprediksi masih akan berlangsung hingga tahun depan. Hal tersebut didukung oleh kenaikan per-mintaan.

“Jangka pendek hingga akhir tahun kamu perkirakan masih akan menguat dan jangka panjang kami masih optimis penguatan masih sustain,” tuturnya.

Daily News Update Page 12

Meanwhile, for HRUM itself, Dessy said that the strengthening of share prices was due to HRUM and its holding company buying shares of Nickel Mines, which owns a mine and smelter in Sulawesi.

"With the coal trend starting to flatten, investors have responded positively to issuers of HRUM, which have begun to direct interest in the nickel industry," she said.

To note, HRUM, which is an issuer with its main business in coal mining, has a 3.7 percent share ownership in Nickel Mine Ltd.

Nickel Mines holds 60 percent ownership in the Hengjaya Nickel and Ranger Nickel projects, both of which operate a Rotary Kiln Electric Furnace (RKEF) plant that produces nickel pig iron (NPI) in Indonesia's Morowali Industrial Park.

In addition, HRUM's majority shareholder, namely Karunia Bara Sejahtera, is also recorded as having minor ownership in the nickel company from Australia. Editor:

Hafiyyan

Sementara itu untuk HRUM sendiri, Dessy menyebut penguatan harga saham lebih kepada karena HRUM dan perusahaan holding-nya membeli saham Nickel Mines yang memiliki tambang dan smelter di Sulawesi.

“Dengan coal trend yang sudah mulai flat, investor menyambut positif emiten HRUM yang mulai mengarahkan minat ke industri nikel,” kata dia.

Untuk diketahui, HRUM yang merupakan emiten dengan bisnis utamanya pertam-bangan batu bara tercatat memiliki 3,7 persen kepemilikan saham di Nickel Mine Ltd.

Nickel Mines memegang kepemilikan 60 persen di proyek Hengjaya Nickel dan Ranger Nickel, keduanya mengoperasikan pabrik Rotary Kiln Electric Furnace (RKEF) yang memproduksi nickel pig iron (NPI) di Indonesia Morowali Industrial Park.

Selain itu, pemegang saham mayoritas HRUM, yaitu Karunia Bara Sejahtera, juga tercatat memiliki kepemilikan minor di perusahaan nikel asal Australia itu. Editor : Hafiyyan

Rp.30.4 T Coal Gasification Project Targeted from Early

2021

PRESIDENT Director of PT Bukit Asam

(Persero) Tbk or PTBA Arviyan Arifin said the coal gasification project into dimethyl ether (DME) with an investment value of US$ 2.1 billion or around Rp.30.45 trillion (exchange rate of Rp. 14,500 per US dollar) will start in first or second quarter of 2021.

Proyek Gasifikasi Batu Bara Rp30,4 T Dibidik Mulai Awal

2021

DIREKTUR Utama PT Bukit Asam

(Persero) Tbk atau PTBA Arviyan Arifin mengatakan proyek gasifikasi batu bara menjadi dimethyl ether (DME) dengan nilai investasi US$2,1 miliar atau sekitar Rp30,45 triliun (kurs Rp14.500 per dolar AS) akan dimulai pada kuartal pertama atau kedua 2021.

Daily News Update Page 13

He said that currently the three companies involved in the project, namely PTBA, PT Pertamina (Persero) and Air Products, are currently discussing business agreements and it is hoped that the agreement can be signed before the end of 2020.

If the project start time goes according to plan, the gasification plant is expected to start operating in the second quarter of 2024.

"EPC (engineering procurement construc-tion) will start in the first quarter or second quarter of 2021. A legal cooperation process is currently being prepared to discuss the draft agreement with Air Products and Pertamina. It is hoped that it can sign it in November this year if all business agree-ments have been agreed," he said in a video conference. Friday (6/11).

Later, said Arviyan, all investment in project development including production costs will be borne by Air Products, a business partner from the United States.

This project uses a built-operate-transfer (BOT) scheme with a period of up to 20 years. In the early stages, he added, Bukit Asam would only act as a supplier of low-calorie coal for DME raw materials until one year the project runs.

After the project runs for one new year, they are given the option to own shares in the joint venture. However, after the BOT expires, this project will become a joint venture (JV) project between PT Bukit Asam and PT Pertamina (Persero).

"So after 20 years this factory will be owned by a joint venture between PTBA and Pertamina. That's the option," explained Arviyan.

The gasification project is a coal down-stream business. Later, the project will produce synthesis gas (syngas) to DME as a substitute for household Liquified Petroleum Gas (LPG).

Ia bilang kini tiga perusahaan yang terlibat dalam proyek yakni PTBA, PT Pertamina (Persero) dan Air Products sedang dalam pembahasan perjanjian bisnis dan di-harapkan kesepakatan bisa ditandatangani sebelum akhir 2020.

Jika waktu dimulainya proyek berjalan sesuai rencana, pabrik gasifikasi diperkirakan dapat mulai beroperasi pada kuartal kedua 2024.

"EPC (engineering procurement construction) mulai kuartal pertama atau kuartal kedua 2021. Sedang disiapkan kerja sama legal process pembahasan draft perjanjian dengan Air Products dan Pertamina. Diharapkan bisa tanda tangan di November tahun ini apabila semua kesepakatan bisnis sudah disepakati," ujarnya dalam video conferece Jumat (6/11).

Nantinya, terang Arviyan, investasi pem-bangunan proyek termasuk biaya produksi seluruhnya akan ditanggung oleh Air Products, mitra bisnis yang berasal dari Amerika Serikat.

Proyek ini menggunakan skema built-operate-transfer (BOT) dengan jangka waktu hingga 20 tahun. Dalam tahap awal, imbuh-nya, Bukit Asam hanya akan bertindak sebagai pemasok batu bara berkalori rendah untuk bahan baku DME hingga satu tahun proyek tersebut berjalan.

Setelah proyek berjalan satu tahun baru lah mereka diberikan opsi untuk memiliki kepemilikan saham pada perusahaan patungan tersebut. Kendati demikian, setelah BOT habis masa berlakunya, proyek ini akan menjadi proyek patungan (joint venture/JV) antara PT Bukit Asam dan PT Pertamina (Persero).

"Jadi setelah 20 tahun pabrik ini akan di-miliki oleh join venture PTBA dan Pertamina. Itu opsinya," terang Arviyan.

Proyek gasifikasi merupakan bisnis hilirisasi batu bara. Nantinya, proyek tersebut meng-hasilkan synthesis gas (syngas) hingga DME sebagai substitusi Liquified Petroleum Gas (LPG/elpiji) rumah tangga.

Daily News Update Page 14

If this is realized, the company estimates that it can produce 1.4 million tons of DME per year with coal needs of 9.2 million tons per year. (hrf/sfr)

Bila terealisasi, perusahaan mengestimasi bisa menghasilkan 1,4 juta ton DME per tahun dengan kebutuhan batu bara 9,2 juta ton per tahun. (hrf/sfr)

Looking at the future prospects for Bukit Asam's (PTBA)

business Reporter: Akhmad Suryahadi | Editor:

Noverius Laoli

THE PROSPECT of coal emitted performance, PT Bukit Asam Tbk (PTBA) will improve in the future. Moreover, this state-owned company is diligently diversifying its business to boost revenue.

Bukit Asam is noted to have at least three

business agendas at the moment, from coal gasification, the Sumsel 8 mine mouth

steam power plant (PLTU) development project, to the solar panel development

plan.

In the gasification segment, PTBA is

currently in the stage of building a coal processing plant into dymethyl ether

(DME) located in Tanjung Enim, South Sumatra.

Kontan.co.id noted, the coal downstream

plant will process as much as 6 million tons of coal per year and process it into 1.4

million tons of DME which can be used as an alternative fuel to replace liquified

Petroleum gas (LPG).

President Director of PT Bukit Asam Tbk, Arviyan Arifin, said that this DME has a

high economic value as a substitute for LPG which has been imported so far.

Melihat prospek bisnis Bukit Asam (PTBA) ke depan

Reporter: Akhmad Suryahadi | Editor: Noverius Laoli

PROSPEK kinerja emitan batu bara, PT

Bukit Asam Tbk (PTBA) bakal membaik ke

depan. Apalagi emiten pelat merah ini rajin melakukan diversifikasi bisnis untuk

mendorong kenaikan pendapatan.

Bukit Asam, tercatat setidaknya memiliki

tiga agenda bisnis saat ini, mulai dari gasifikasi batubara, proyek pembangunan

pembangkit listrik tenaga uap (PLTU) Mulut Tambang Sumsel 8, hingga rencana

pengembangan panel surya.

Di segmen gasifikasi, saat ini PTBA sedang

dalam tahap membangun pabrik peng-olahan batubara menjadi dymethil eter

(DME) yang berlokasi di Tanjung Enim, Sumatra Selatan.

Kontan.co.id mencatat, pabrik hilirisasi batubara tersebut akan mengolah sebanyak 6 juta ton batubara per tahun dan diproses menjadi 1,4 juta ton DME yang dapat digunakan sebagai bahan bakar alternatif pengganti liquified Petroleum gas (LPG).

Direktur Utama PT Bukit Asam Tbk, Arviyan Ari fin, mengatakan, DME ini memiliki nilai keekonomian yang tinggi sebagai pengganti (substitusi) LPG yang selama ini masih diimpor.

Daily News Update Page 15

"With this DME, there is no need to import LPG anymore. This means that we save foreign exchange and the trade balance,” explained Arviyan during a presentation on Bukit Asam's performance which was held virtually, Friday (6/11).

based on the calculation of the Coordinating Ministry for Maritime Affairs and Invest-ment, the country's potential savings could reach Rp. 8.7 trillion.

The downstream project construction preparation is planned to start in mid-2021 while the operating target is targeted in the second quarter of 2024.

Samuel Sekuritas Indonesia analyst, Dessy Lapagu, assessed that PTBA's down-streaming will be of positive value so that PTBA's revenue sources are expected to be more diversified apart from coal sales.

However, Dessy estimates that the positive impact of diversi fication on PTBA's performance will still have an effect in the long term. "In the near future (performance) will still be dominated by coal sales," said Dessy to Kontan.co.id, Friday (23/11).

As of the third quarter of 2020, PTBA posted a net profit of Rp 1.7 trillion, down 44% when compared to the net profit in the same period the previous year which reached Rp 3.10 trillion.

The decrease in net profit is in line with the decrease in Bukit Asam's net income. The issuer based in South Sumatra posted net income of Rp. 12.8 trillion, down 20.94% from the actual net income in the third quarter of 2019 which at that time reached Rp. 16.25 trillion.

Dessy assessed that the decline in PTBA's performance in the first 9 months of 2020 was in l ine with Samuel Sekuritas Indonesia's expectations in line with the downward trend in coal prices compared to last year.

”Dengan adanya DME ini maka tidak usah impor LPG lagi. Artinya, kita menghemat devisa negara dan neraca perdagangan,” terang Arviyan saat paparan kinerja Bukit Asam yang digelar virtual, Jumat (6/11).

erdasarkan hitungan Kementerian Koor-dinator Bidang Kemaritiman dan Investasi, potensi penghematan negara bisa men-capai Rp 8,7 triliun.

Adapun persiapan konstruksi proyek hilirisasi direncanakan dimulai pada per-tengahan 2021 sementara target operasi dibidik pada kuartal kedua 2024.

Analis Samuel Sekuritas Indonesia, Dessy Lapagu, menilai, hilirisasi yang dilakukan PTBA akan bernilai positif sehingga sumber revenue PTBA diharapkan lebih terdiversifikasi lagi selain dari penjualan batubara.

Hanya saja, Dessy memperkirakan dampak positif diversifikasi terhadap kinerja PTBA masih akan berefek dalam jangka panjang. “Dalam waktu dekat (kinerja) masih di-dominasi penjualan batubara,” terang Dessy kepada Kontan.co.id, Jumat (23/11).

Per kuartal ketiga 2020, PTBA mem-bukukan laba bersih senilai Rp 1,7 triliun, turun 44% jika dibandingkan dengan torehan laba bersih pada periode yang sama tahun sebelumnya yang mencapai Rp 3,10 triliun.

Penurunan laba bersih ini selaras dengan penurunan pendapatan bersih Bukit Asam. Emiten yang berbasis di Sumatra Selatan ini membukukan pendapatan bersih senilai Rp 12,8 triliun, turun 20,94% dari realisasi pendapatan bersih di triwulan ketiga 2019 yang kala itu mencapai Rp 16,25 triliun.

Dessy menilai, penurunan kinerja PTBA pada 9 bulan pertama 2020 sudah sesuai dengan ekspektasi Samuel Sekuritas Indonesia seiring dengan tren penurunan harga batubara dibandingkan tahun lalu.

Daily News Update Page 16

Cumulatively, of course PTBA's perfor-mance this year will decline compared to 2019. However, for the next 2021, Samuel Sekuritas Indonesia estimates that the global coal industry will be more attractive with stronger demand from China as economic activity is projected to be better than 2020.

Likewise, Kiwoom Sekuritas Indonesia analyst Sukarno Alatas assessed that business diversification is the key to PTBA's strategy to improve future perfor-mance.

"PTBA projects that if the Sumsel-8 PLTU is completed in 2022 and the gasification project is completed, it will increase coal sales at the Mouth of the Mine by around 12 million tons per year," said Sukarno.

Meanwhile, PTBA production is estimated to decline 14% on an annual basis to 25.1 million tons. However, Sukarno expected that PTBA's performance would bounce back next year.

Secara kumulatif, tentunya kinerja PTBA tahun ini akan menurun dibandingkan

2019. Namun, untuk 2021 mendatang, Samuel Sekuritas Indonesia memper-

kirakan industri batubara global akan lebih atraktif dengan menguatnya permintaan

dari China seiring aktivitas ekonomi yang diproyeksikan lebih baik dibanding 2020.

Senada, Analis Kiwoom Sekuritas Indonesia

Sukarno Alatas menilai diversifikasi bisnis menjadi kunci strategi PTBA meningkatkan

kinerja di masa depan.

“PTBA memproyeksikan jika PLTU Sumsel-8 rampung pada 2022 dan proyek gasifikasi

selesai maka akan meningkatkan penjualan batubara di Mulut Tambang sekitar 12 juta

ton per tahun,” ujar Sukarno.

Adapun produksi PTBA diperkirakan turun

14% secara tahunan menjadi 25,1 juta ton. Hanya saja, Sukarno berekspektasi bahwa

kinerja PTBA akan dapat bangkit kembali pada tahun depan.

Air Products Invest in India, Bigger than Indonesia

Zufrizal

APART from Indonesia, Air Products and

Chemicals plans to invest US$ 5 billion-10

billion over the next 5 years in a coal gasification project in India.

Air Products, the world leader in coal gasification business, will build, own and

operate several coal gasification complexes in India, partner with coal suppliers such

as Coal India to source raw materials, and supply industrial gas to end customers.

Air Products Investasi di India, Lebih Besar daripada Indonesia

Zufrizal

SELAIN di Indonesia, Air Products and Chemicals berencana menginvestasikan US$ 5 miliar-10 miliar selama 5 tahun ke depan dalam proyek gasifikasi batu bara di India.

Air Products, pemimpin bisnis gasifikasi batu bara di dunia, akan membangun, memiliki, dan mengoperasikan beberapa kompleks gasifikasi batu bara di India, bermitra dengan pemasok batu bara seperti Coal India untuk mendapatkan bahan baku, dan memasok gas industri ke pelanggan akhir.

Daily News Update Page 17

First of all, said Richard Boocock, Senior Vice President and Chief Information Officer of Air Products to BusinessToday.In as quoted from www.energyinfrapost.com, Friday (6/11/2020), the company is looking for US$ 2 bil l ion investment, similar to a new one recently announced Air Products in Indonesia.

Air Products, has more than 750 production facilities worldwide in more than 50 countries with 1,800 miles of industrial gas connections for more than 30 different manufacturing industries.

The US-based company sees India as a key growth market for the future as it opens up the coal sector in a good way for energy security.

“Industrial gases are a very localized industry because their transportation is an issue. India is a growing market for manufacturing and a 'self-sufficient India' policy will also help grow industrial gas consumption, a key driver for industrial activity in many sectors," Boocock.

Previously, PT Bukit Asam Tbk. (PTBA) stated that the coal gasification develop-ment project into dimethyl ether will begin the construction phase in the first half of next year.

In this project, PTBA collaborates with a gas company based in the United States, Air Products and Chemicals Inc. and PT Pertamina (Persero).

PTBA President Director Arviyan Arifin revealed that PTBA and the two partners are currently preparing a legal cooperation plan and it is hoped that the signing of a further cooperation agreement can be realized in November this year.

"We will start the EPC [engineering, procurement & construction] in the first quarter, the second quarter of 2021. Now we are preparing...

Pertama-tama, kata Richard Boocock, Wakil Presiden Senior dan Kepala Pejabat Infor-masi Air Products kepada BusinessToday.In seperti dikutip dari www.energyinfrapost.com, Jumat (6/11/2020), perusahaan mencari investasi US$2 miliar, serupa dengan yang baru-baru ini diumumkan Air Products di Indonesia.

Air Products, memiliki lebih dari 750 fasilitas produksi di seluruh dunia di lebih dari 50 negara dengan 1.800 mil sambungan gas industri untuk lebih dari 30 industri manu-faktur yang berbeda.

Perusahaan asal AS itu melihat India sebagai pasar pertumbuhan utama pada masa depan karena negara tersebut membuka sektor batu bara dengan cara yang bagus untuk ketahanan energi.

“Gas industri adalah industri yang sangat ter-lokalisasi karena pengangkutannya merupakan suatu isu. India adalah pasar yang berkembang untuk manufaktur dan kebijakan 'India mandiri' juga akan membantu pertumbuhan konsumsi gas industri, pendorong utama untuk aktivitas industri di banyak sektor," Boocock.

Sebelumnya, PT Bukit Asam Tbk. (PTBA) menyatakan bahwa proyek pengembangan gasifikasi batu bara menjadi dimetil eter segera memulai tahap konstruksi pada semester pertama tahun depan.

Dalam proyek ini, PTBA menggandeng perusahaan gas berbasis di Amerika Serikat, Air Products and Chemicals Inc. dan PT Pertamina (Persero).

Direktur Utama PTBA Arviyan Arifin meng-ungkapkan bahwa PTBA dan kedua partner-nya tersebut tengah menyiapkan rencana kerja sama secara legal dan diharapkan penanda-tanganan kesepakatan kerja sama lebih lanjut dapat direalisasikan pada November tahun ini.

"Kami akan mulai EPC [engineering, procure-ment & construction]-nya pada triwulan I, triwulan II 2021. Sekarang kami sedang menyiapkan...

Daily News Update Page 18

Now we are preparing a legal partnership

with Air Products and Pertamina and we

hope to sign this November if all business

agreements are legal and legal. We have

agreed on business," said Arviyan in a

virtual press conference on the perfor-

mance of the third quarter of 2020 in

Jakarta, Friday (6/11/2020).

The DME project to be built in Tanjung

Enim, South Sumatra will cost an invest-

ment of US$ 2.1 billion.

Arviyan said that the investment value

would be fully or 100 percent borne by Air

Products, while PTBA was responsible for

supplying coal for DME and Pertamina

would act as buyers of DME products.

Thus, PTBA will not bear the burden of

financial and construction risks. Editor:

Zufrizal

Sekarang kami sedang menyiapkan kerja sama secara legal dengan Air Product dan

Pertamina dan diharapkan bisa tanda tangan November ini apabila semua kesepakatan

bisnis secara legal dan secara bisnis sudah kami sepakati," ujar Arviyan dalam konfe-

rensi pers kinerja kuartal III/2020 secara virtual di Jakarta, Jumat (6/11/2020).

Proyek DME yang akan dibangun di Tanjung Enim, Sumatra Selatan tersebut menelan

biaya investasi senilai US$2,1 miliar.

Arviyan menuturkan bahwa nilai investasi

tersebut sepenuhnya atau 100 persen akan ditanggung oleh Air Product, sedangkan

PTBA bertanggung jawab m enyuplai kebutuhan batu bara untuk DME dan

Pertamina akan bertindak sebagai pembeli produk DME. Dengan demikian, PTBA tidak

akan menanggung beban risiko finansial dan konstruksi. Editor : Zufrizal

Pressured by Coal Prices,

Samindo's Net Profit Drops 23.46%

Editor

PT SAMINDO Resources Tbk (MYOH), an

integrated mining services company, recorded a 23.46% decline in net profit during January-September 2020 compared to the same period the previous year (year on year/yoy) to US$ 14.29 million. The decline in profit was triggered by a 30% reduction in revenue to US$ 132.24 million from US$ 188.91 million in the period until the end of 2019, while the cost of good sold (COGS) was recorded at US$ 105.7 million.

Ahmad Zaki Natsir, Head of Investment Relations at Samindo Resources, said that the decline in revenue was due to...

Tertekan Harga Batu Bara, Laba

Bersih Samindo Turun 23,46% Redaktur

PT SAMINDO Resources Tbk (MYOH),

emiten jasa tambang terintegrasi, men-catatkan penurunan laba bersih 23,46% sepanjang Januari-September 2020 di-bandingkan periode sama tahun sebelum-nya (year on year/yoy) menjadi US$ 14,29 juta. Penurunan laba itu dipicu ber-kurangnya pendapatan sebesar 30% menjadi US$ 132,24 juta dari US$ 188,91 juta pada periode hingga akhir III 2019, sedangkan beban pokok penjualan (cost of good sold/COGS) tercatat US$ 105,7 juta.

Ahmad Zaki Natsir, Kepala Hubungan Invesor Samindo Resources, mengatakan penurunan pendapatan karena...

Daily News Update Page 19

said that the decline in revenue was due to the decrease in coal selling prices during

the January-September 2020 period. said Zaki to Dunia Energi, Saturday (7/11).

The earth moving and coal extraction

services segment is stil l the main contributor to the company's revenue,

namely US$ 94.74 million. The rest comes from the coal transportation services

segment and a small portion comes from drilling, exploration and other services.

In order to improve the company's future performance, continued Zaki, currently

Samindo is approaching potential customers who have mining locations in

the East Kalimantan region. Zaki refused to mention the identity of the company that

would be a potential customer. "Not an issuer or an issuer's subsidiary, just a new

client," he said. (DR)

mengatakan penurunan pendapatan karena penurunan harga jual batu bara sepanjang periode Januari-September 2020. “Selain itu, ada penurunan volume karena pit Roto (milik PT Kideco Jaya Agung) dan proyek Bayan sudah selesai,” kata Zaki kepada Dunia Energi, Sabtu (7/11).

Segmen jasa pemindahan tanah dan peng-ambilan batu bara masih menjadi kontributor utama pendapatan perusahaan, yaitu US$ 94,74 juta. Sisanya dari segmen jasa peng-angkutan batu bara dan sebagian kecil dari jasa pengeboran, eksplorasi, dan lainnya.

Demi meningkatkan kinerja perusahaan ke depan, lanjut Zaki, saat ini Samindo men-dekati calon pelanggan potensial yang me-miliki lokasi tambang di kawasan Kalimantan Timur. Zaki tak bersedia menyebutkan identitas perusahaan yang bakal calon pelanggan potensial tersebut. “Bukan emiten atau anak usaha emiten, murni klien baru,” katanya. (DR)

RI (Should be) Rich, Nickel Prices Rise Due to Electric Cars

Anisatul Umah, CNBC Indonesia

THE GOVERNMENT continues to

encourage the use of electric cars to reduce the use of fossil-based fuels, which are considered not environmentally friendly. The good prospects for electricity-based transportation are also expected to raise the price of nickel, which is the raw material for making batteries for electric vehicles.

This was conveyed by the Chief Executive Officer (CEO) of PT Indonesia Morowali Industrial Park (IMIP), Alexander Barus.

RI (Harusnya) Kaya Nih, Harga Nikel Naik Karena Mobil Listrik

Anisatul Umah, CNBC Indonesia

PEMERINTAH terus mendorong peng-

gunaan mobil listrik untuk menekan peng-gunaan bahan bakar berbasis fosil, yang dinilai tidak ramah lingkungan. Prospek yang bagus pada transportasi berbasis listrik diperkirakan juga bakal mengerek naiknya harga nikel yang menjadi bahan baku pembuatan baterai untuk kendaraan kendaraan listrik.

Hal ini disampaikan oleh Chief Eksekutif Officer (CEO) PT Indonesia Morowali Industrial Park (IMIP), Alexander Barus.

Daily News Update Page 20

According to him, in the previous five years, nickel had not yet become the prima donna, but by 2025 the price of nickel could reach US$ 25,000 per metric ton.

"I estimate that in 2025 it could reach US$ 25,000 per ton, 2030 could be closer to US$ 30,000 per metric ton," he said in an interview with CNBC Indonesia, last Friday (06/11/2020).

The increasing price of nickel is in line with the increasing demand for batteries for electric cars. The increasing growth and population of electric cars will inevitably increase the demand for nickel which will be high in the future.

"What does that mean? The price of nickel will continue to rise, why is it like we say with the growing demand for batteries with the growth and population of electric cars," he explained.

The increasing demand for nickel has not been matched by an increase in supply. Alexander Barus said that nickel in the future will become part of the Indonesian economy which needs to be maintained.

Indonesia, he added, has become one of the countries that has large nickel reserves in the world. "On the other hand, the supply has not changed much, in this case, the demand is much higher than the speed of supply growth," he explained.

One of the biggest electric car players in the world, Tesla, plans to build a battery factory in Indonesia. The battery factory is planned to be built in the Batang Integrated Industrial Zone, Central Java.

Who would have thought that the news that Tesla's factory construction plan would have caught the attention of world car manufacturers. This was conveyed by Septian Hario Seto, Deputy for Investment and Mining Coordination at the Coor-dinating Ministry for Maritime Affairs and Investment.

Menurutnya pada lima tahun sebelumnya komoditas nikel belum menjadi primadona, namun sampai dengan tahun 2025 harga nikel bisa mencapai US$ 25.000 per metrik ton.

"Saya pekirakan 2025 itu bisa mencapai US$ 25.0000 per ton, 2030 bisa sampai men-dekati US$ 30.000 per metrik ton," ungkap-nya dalam wawancara bersama CNBC Indonesia, Jumat lalu, (06/11/2020).

Terus melonjaknya harga nikel ini seiring dengan terus meningkatnya kebutuhan baterai untuk mobil listrik. Naiknya pertum-buhan dan populasi mobil listrik mau tidak mau akan meningkatkan permintaan pada nikel yang bakal tinggi ke depannya.

"Artinya apa, harga nikel ini akan terus menanjak kenapa seperti kita sampaikan dengan pertumbuhan permintaan baterai ini dengan pertumbuhan dan populasi mobil listrik," jelasnya.

Permintaan yang terus meningkat pada nikel tidak diimbangi dengan meningkatnya pasokan. Alexander Barus mengatakan, nikel ke depan akan menjadi bagian dari ekonomi Indonesia yang perlu terus dijaga.

Indonesia, imbuhnya, menjadi salah satu negara yang memiliki cadangan nikel besar di dunia. "Sementara di sisi lain supply itu tidak banyak berubah dalam hal ini adalah permintaan jauh lebih tinggi percepatan pertumbuhannya dibandingkan dengan kecepatan pertumbuhan supply," jelasnya.

Salah satu pemain besar mobil listrik dunia, Tesla, berencana membangun pabrik baterai di Indonesia. Pabrik baterai tersebut di-rencanakan bakal dibangun di Kawasan Industri Terpadu Batang, Jawa Tengah.

Siapa sangka kabar rencana pembangunan pabrik oleh Tesla jadi perhatian produsen mobil dunia. Hal tersebut disampaikan oleh Septian Hario Seto, Deputi Bidang Koordinasi Investasi dan Pertambangan Kementerian Koordinator Bidang Kemaritiman dan Investasi.

Daily News Update Page 21

In an interview with CNBC Indonesia, Tuesday (27/10/2020), he said the circulation of news about Tesla has made one of the global automotive companies to be more aggressive in developing electric cars in Indonesia.

"It is true that the news is circulating. I heard that there is a global automotive company which has become more aggressive in developing electric cars in Indonesia," he explained.

The condition of the nickel price increase should make Indonesia richer in the future. If the nickel potential is really managed properly, it will benefit the nation and state.

Director of Mineral Development and Business of the Ministry of Energy and Mineral Resources (ESDM), Yunus Saefulhak, said that Indonesia's proven nickel reserves currently reach 1.08 billion tons and this can only last for only about nine years.

However, according to him, Indonesia's nickel reserves reach 4.5 billion tons and this is enough to produce up to 39 years.

"Proven reserves are 1.08 billion tons. If we do it with the current production, it will only be nine years old. But based on the estimated reserves it is 4.5 billion tons, so it can be up to 39 years," said Yunus in an interview. with CNBC Indonesia.

With reserves of this size, according to Yunus, Indonesia has the largest nickel reserves in the world. According to him, production is also the largest in the world. Apart from nickel, Indonesia is also rich in manganese and cobalt. The existence of a number of potential mineral wealth owned by Indonesia makes Indonesia's aspiration to become the number one battery producer is not impossible.

Dalam wawancara bersama CNBC Indonesia, Selasa, (27/10/2020) dia mengatakan beredarnya pemberitaan mengenai Tesla, membuat salah satu perusahaan otomotif global menjadi lebih agresif untuk mengembangkan mobil listrik di Indonesia.

"Memang benar berita-berita yang beredar saja, saya mendengar ada satu perusahaan otomotif global juga yang kemudian men-jadi lebih agresif untuk pengembangan mobil listrik di Indonesia," paparnya.

Kondisi kenaikan harga nikel ini seharus-nya menjadikan Indonesia makin kaya ke depan. Bila potensi nikel benar-benar dikelola dengan baik, dan bermanfaat bagi bangsa dan negara.

Direktur Pembinaan dan Pengusahaan Mineral Kementerian Energi dan Sumber Daya Mineral (ESDM), Yunus Saefulhak, mengatakan cadangan terbukti nikel Indonesia saat ini mencapai 1,08 miliar ton dan ini hanya bisa bertahan hanya sekitar sembilan tahun.

Namun, cadangan terkira nikel Indonesia menurutnya mencapai 4,5 miliar ton dan ini cukup untuk diproduksi hingga 39 tahun.

"Cadangan terbukti (proven reserves) itu 1,08 miliar ton. Kalau kita lakukan dengan produksi yang sekarang itu, umurnya hanya sembilan tahun. Tetapi berda sarkan cadangan terkira itu 4,5 miliar ton, sehingga bisa sampai 39 tahun," papar Yunus dalam wawancara bersama CNBC Indonesia.

Dengan cadangan sebesar ini, menurut Yunus, Indonesia punya cadangan nikel terbesar di dunia. Produksinya pun menurutnya juga terbesar di dunia. Selain nikel, Indonesia juga kaya akan mangan dan kobalt. Adanya sejumlah potensi kekayaan mineral yang dimiliki Indonesia ini menjadikan cita-cita Indonesia menjadi produsen baterai nomer satu bukan hal yang musatahil.

Daily News Update Page 22

"We have the largest nickel in the world, the production is also the largest in the world. And we have manganese, we have cobalt, so our country's aspiration to become the world's No.1 battery industry when electric cars are in our possession, then of course the government makes policies. to stop the name export of nickel ore," said Yunus.

This export ban is only for nickel ore, because in the future the government will encourage exports of downstream nickel products, so that the selling value will be higher than when exporting ore.

"You can export, but products that are already finished goods, of course in the future are batteries," he said.

The Indonesian government is currently encouraging the downstream development of the nickel industry into batteries to electric cars, especially because of the large number of nickel resources in the country. This is very reasonable for electric vehicle players like Tesla to be interested in building a battery factory in Indonesia.

There are at least three world-class electric car battery companies besides Tesla that will invest in building factories for electric car batteries to electric cars, including Contem-porary Amperex Technology Co. Ltd. (CATL) from China, LG Chem from South Korea, and Hyundai from South Korea. Unmitigated, the amount of investment to be made has the potential to reach US$ 20 billion.

The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, even said that the existence of abundant mineral resources in the country is the key in building a battery factory to electric cars in the future.

"For those of you who are even younger, we know that Indonesia is rich, we have all the mineral reserves to become a key player in the lithium battery industry, such as lithium, cobalt, nickel, manganese, aluminum, copper (copper), and graphite," he said at the INDY FEST 2020 event on Monday (19/10/2020). (wed/wed)

"Kita ini punya nikel terbesar di dunia ya, produksinya juga terbesar di dunia. Dan kita punya mangan, punya kobalt, maka cita-cita negara kita menjadi No.1 industri baterai dunia ketika mobil listrik itu ada di kita, maka tentunya pemerintah melakukan kebijakan untuk menyetop namanya ekspor nickel ore," jelas Yunus.

Pelarangan ekspor ini hanya untuk bijih nikel, karena ke depannya pemerintah akan men-dorong ekspor produk hilir nikel, sehingga nilai jual menjadi lebih tinggi dibandingkan ketika ekspor bijih.

"Boleh ekspor, tapi produk-produk yang sudah barang jadi, salah satunya tentunya ke depan adalah baterai," ujarnya.

Pemerintah Indonesia kini tengah mendorong pembangunan hilirisasi industri nikel menjadi baterai hingga mobil listrik, terutama karena banyaknya sumber daya nikel di Tanah Air. Hal ini sangat beralasan pemain kendaraan listrik seperti Tesla berminat membangun pabrik baterai di Indonesia.

Setidaknya ada tiga perusahaan baterai mobil listrik kelas dunia selain Tesla akan ber-investasi membangun pabrik baterai mobil listrik hingga mobil listrik, antara lain Contem-porary Amperex Technology Co. Ltd. (CATL) asal China, LG Chem asal Korea Selatan, dan Hyundai asal Korea Selatan. Tak tanggung-tanggung, jumlah investasi yang akan digelon-torkan berpotensi mencapai US$ 20 miliar.

Menteri Koordinator Bidang Kemaritiman dan Investasi, Luhut Binsar Pandjaitan, bahkan mengatakan adanya sumber daya mineral yang melimpah di negara menjadi kunci dalam pembangunan pabrik baterai hingga mobil listrik ke depannya.

"Untuk Anda yang lebih muda lagi, kita tahu Indonesia ini kaya, kita punya semua cadangan mineral untuk menjadi pemain kunci di industri baterai lithium, seperti lithium, cobalt, nikel, mangan, aluminium, copper (tembaga), dan graphite," tuturnya dalam acara INDY FEST 2020 pada Senin (19/10/2020). (wed/wed)

Daily News Update Page 23

Here are the 5 most innovative machine learning works for

mineral exploration Author: Mochamad Risyad Rizkyafdhal,

Editor: Ocky PR.

MACHINE learning or commonly called

Machine Learning is a digital data processing technology using statistics and computer vision. Machine Learning itself is composed of various algorithms. While algorithms have the meaning of logical steps or calculations taken by a computer. Easily, Machine Learning can be termed as changing an object or phenomenon into a value so that it can be analyzed by a computer based on certain parameters. This technology is also predicted to be one of the "Game Changer" in exploration, because this technology can certainly reduce exploration costs and help geologists identify a problem.

In Indonesia, the use of machine learning for mining exploration is still very minimal. This is the opposite in case of oil and natural gas exploration, where its use has been widely applied, especially to large companies. Whereas in countries such as Australia, China, and the United States, which are the main points of mining, they have handled many exploration problems using machine learning. This of course can be an opportunity for geologists and geophysicists in Indonesia, especially when mining is being digitally incessant in order to streamline costs and operations. Therefore, to find out what Machine Learning applications are in exploration, let's see the following article.

Inilah 5 Karya Machine Learning Paling Inovatif Untuk

Eksplorasi Mineral Penulis : Mochamad Risyad Rizkyafdhal,

Editor : Ocky PR.

PEMBELAJARAN mesin atau biasa disebu t

dengan Machine Learning merupakan salah satu teknologi digital pemprosesan data dengan menggunakan statistik dan visi komputer. Machine Learning sendiri tersusun dari ber-bagai macam algoritma. Sedangkan algoritma memiliki pengertian sebagai langkah-langkah logis atau perhitungan yang diambil oleh sebuah komputer. Secara mudah, Machine Learning dapat diistilahkan sebagai perubahan objek atau fenomena menjadi sebuah nilai agar dapat dianalisis oleh komputer berdasarkan parameter tertentu. Teknologi ini pun di-gadang-gadang akan menjadi salah satu “Game Changer” dalam eksplorasi, karena teknologi ini tentu dapat mengurangi biaya eksplorasi dan membantu para geologis t untuk meng-identifikasi suatu permasalahan.

Di Indonesia, penggunaan Machine Learning untuk eksplorasi pertambangan masih sangat minim. Hal ini justru terjadi sebaliknya pada eksplorasi minyak dan gas bumi, dimana pemanfaatannya sudah banyak diterapkan khususnya perusahaan besar. Padahal di negara seperti Australia, Cina, dan Amerka Serikat yang merupakan kiblat utama dari pertambangan sudah banyak menangani permasalahan eksplorasi menggunakan Machine Learning. Hal ini tentu saja dapat menjadi peluang bagi para geologist dan geophysicist di Indonesia, terlebih sedang gencarnya digitalisasi pertambangan guna mengefisiensi biaya dan operasional. Maka dari itu untuk mengetahui apa saja aplikasi Machine Learning dalam eksplorasi, yuk simak artikel berikut ini.

Daily News Update Page 24

1. Automatic RQD (Rock Quality Designation) determinant

Carrying out an RQD analysis certainly has its own challenges for Geotechnical Engineers, because this measurement has a fairly complex calculation. Reporting from im-mining.com, one of the start-ups from Australia, namely DATAROCK, has succeeded in making new history in world mining innovation and claims to have analyzed 1 million meters of rock cores from just an image. By using an algorithm called R-CNN, which is an algorithm that has many stages as parameters for analyzing an object in the image. This technology is able to classify the percentage of RQD values quickly and accurately by using the rock body and fracture parameters detected only from an image.

2. Automatic mineral tagging of rock cores

As is well known, ore marking is generally done using a permanent marker along the core of the rock. This of course will take time to mark the sample, given the rock core samples are very long up to hundreds of meters. Currently, there is Machine Learning technology that can do this job in an instant. Segmentation generally uses an algorithm that has color and geometry parameters which are then calibrated with core drilling data from the same location or another mine. One of the start-ups from the United States, namely Imago Inc. specifically offers this service.

3. Estimation of the missing geochemical variables during the drilling stage

At the exploration drilling stage, geo-chemical analysis, especially XRF, plays a very important role in mapping the position or geometry of a sediment, especially in areas without rock outcrops. Exploration drilling itself is...

1. Penentu nilai RQD (Rock Quality Designation) Otomatis

Melakukan analisis RQD tentu memiliki tantangan tersendiri bagi para Insinyur Geoteknik, karena pengukuran ini memiliki perhitungan yang cukup kompleks. Dilansir dari im-mining.com, salah satu start-up asal Australia yaitu DATAROCK berhasil menjadi sejarah baru dalam inovasi pertambangan dunia dan mengkalim telah menganalisis 1 juta meter inti batuan hanya dari sebuah gambar. Dengan menggunakan algoritma yang bernama R-CNN yaitu sebuah algoritma yang memiliki banyak tahapan sebagai parameter untuk menganalisis suatu objek pada gambar. Teknologi ini mampu meng-klasifikasikan persentase nilai RQD secara cepat dan akurat dengan menggunakan parameter tubuh batuan dan rekahan yang dideteksi hanya dari sebuah gambar.

2. Penandaan mineral otomatis pada inti batuan

Seperti yang diketahui, penandaan bijih umum-nya dilakukan dengan menggunakan sebuah spidol permanen di sepanjang inti batuan. Hal ini tentunya akan memerlukan waktu untuk menandai sampel tersebut, mengingat sampel inti batuan sangatlah panjang hingga ratusan meter. Saat ini terdapat teknologi Machine Learning yang dapat melakukan pekerjaan tersebut dalam sekejap. Segmentasi umumnya menggunakan suatu algoritma yang memiliki parameter warna dan geometri yang kemudian dikalibrasikan dengan data inti pemboran dari lokasi yang sama ataupun tambang lain. Salah satu start-up dari Amerika Serikat yaitu Imago Inc. secara khusus menawarkan jasa ini.

3. Pengestimasi variabel geokimia yang hilang pada tahap pemboran

Pada tahap pemboran eksplorasi, analisis geokimia khususnya XRF memiliki peranan yang sangat penting dalam memetakan posisi atau geometri suatu endapan, terutama pada kawasan yang tidak memiliki singkapan batuan. Pemboran eksplorasi sendiri...

Daily News Update Page 25

Exploration drilling itself is certainly not immune from the imperfections of rock

samples that were successfully extracted from within the earth's surface. A study

conducted by the National de la Recherche Scientifique Canada Institute managed to

innovate by utilizing Machine Learning using a random forest algorithm that was

applied to core logging data. Random forest itself is a computer command that

can help make decisions on a large amount of data based on predetermined

parameters. This research has also been tested in a case study in the Matagami

mining area and is claimed to be able to estimate the missing geochemical variables

well.

4. Automatic mineral prospectivity map

A study conducted by Jiangxi University and China University of Geoscience in 2019

has led to an innovation, where the technology can automatically build a

mineral prospectivity map using para-meters such as resistivity data, gravity, and

sediment geochemical samples. Then the data obtained will be processed using

Machine Learning which utilizes the random forest algorithm. This study

succeeded in achieving an average accuracy of 95.4%.

5. Automatic classification of micro-scopic minerals

In 2019, research conducted by the

Department of Geology and Cyber Systems Engineering at the Federal University of

Pelotas managed to find an innovation that could help a mineralogist identify minerals

in thin incisions in a relatively short time by utilizing image processing and simple

programming. By utilizing a decision tree algorithm,...

Pemboran eksplorasi sendiri pastinya tak luput dari ketidaksempurnaan sampel batuan yang berhasil diekstrak dari dalam permukaan bumi. Sebuah penelitian yang dilakukan oleh Institut National de la Recherche Scientifique Canada berhasil melakukan inovasi dengan memanfaatkan Machine Learning menggunakan algoritma random forest yang diterapkan pada data core logging. Random forest sendiri merupakan perintah komputer yang dapat membantu dalam mengambil keputusan pada sebuah data dalam jumlah yang sangat banyak berdasarkan parameter yang telah ditentukan. Penelitian ini pun telah diuji pada studi kasus di kawasan tambang Matagami dan diklaim mampu mengestimasi variabel geokimia yang hilang dengan baik.

4. Peta prospektifitas mineral otomatis

Sebuah penelitian yang dilakukan oleh Jiangxi University dan China University of Geoscience pada tahun 2019 telah me-munculkan sebuah inovasi , diman a teknologi tersebut dapat membangun sebuah peta prospektifitas mineral secara otomatis dengan menggunakan parameter seperti data resistivitas, gravitasi, dan sampel geokimia sedimen. Kemudian data yang diperoleh akan diproses menggunakan Machine Learning yang memanfaatkan algoritma random forest. Penelitian ini berhasil mencapai akurasi rata-rata sebesar 95,4%.

5. Klasifikasi mineral mikroskopik secara otomatis

Pada tahun 2019, penelitian yang dilakukan oleh Departmen Geologi dan Teknik Sistem Cyber Federal University of Pelotas berhasil menemukan sebuah inovasi yang dapat membantu seorang Mineralogist dalam mengidentifikasi mineral pada sayatan tipis dalam waktu yang cukup singkat dengan memanfaatkan pemperosesan gambar dan pemrograman yang simpel. Dengan me-manfaatkan algoritma decision tree...

Daily News Update Page 26

By utilizing a decision tree algorithm, which is a computer command that can issue a decision based on certain parameters and also the nearest neighbor which is a computer command to define an object such as a color to be transformed into a certain value and then classified. This innovation achieves an accuracy of 93%-97% of conventional mineral descriptions.

Dengan memanfaatkan algoritma decision tree yaitu sebuah perintah komputer yang dapat mengeluarkan sebuah keputusan berdasarkan parameter tertentu dan juga nearest neighbor yang merupakan perintah komputer untuk mendefinisikan sebuah objek seperti warna untuk ditransformasi-kan menjadi nilai tertentu kemudian di-klasifikasikan. Inovasi ini berhasil mencapai akurasi 93%-97% dari pendeskripsian mineral secara konvensional.

Open drawbells number passes 300 at Grasberg Block Cave & DMLZ Posted by Paul Moore

IN ITS Q3 2020 and nine months to September 30 results, Freeport McMoRan reports that

ramp-up of the Grasberg underground copper-gold mine in Indonesia is advancing on schedule. The mine is operated by PT Freeport Indonesia’s (PT-FI) , which is held 51.2% by PT Indonesia Asahan Aluminium (Inalum) and 48.8% by Freeport McMoRan.

During third-quarter 2020, a total of 55 new drawbells were added at the Grasberg Block Cave and Deep Mill Level Zone (DMLZ) underground mines, bringing cumulative open drawbells to over 300. Combined average production from the Grasberg Block Cave and DMLZ mines approximated 60,000 t of ore per day during third-quarter 2020, 9% above the second-quarter 2020 average but approximately 15% below the July 2020 estimate, primarily reflecting unplanned downtime and a brief labor-related work stoppage.

However, metal volume targets were achieved during third-quarter 2020 as a result of higher ore grades. For the month of September 2020, combined average production from the Grasberg Block Cave and DMLZ mines totaled approximately 75,000 t of ore per day and the ramp-up schedule remains on track. PT-FI expects its 2021 production to approximate 1.4 billion pounds of copper and 1.4 Moz of gold, which is nearly double projected 2020 levels. The successful completion of this ramp up is expected to enable PT-FI to generate average annual production for the next several years of 1.55 billion pounds of copper and 1.6 Moz of gold at an average unit net cash cost of approximately $0.20 per pound of copper assuming an average price of $1,400 per ounce of gold and achievement of projected sales volumes and cost estimates.

Tunnel General Superintendent, I Made Pasek from contractor Redpath reported recently on its contribution to the underground progress: “The Grasberg Block Cave (GBC) Project, since drawbell production start-up in Q4 2018, continues to maintain momentum, earning world class project status. During the month of March 2020, Redpath’s GBC production team recorded one of the best months since startup, by achieving record breaking tonnage of 24,000 metric tonnes per day.

Daily News Update Page 27

Redpath, together with the client, PT Freeport Indonesia, and charging and blasting contractor, also achieved record monthly drawbell blasting accomplishments. Fifteen drawbells were completed, tallying a major milestone of 100 drawbells for the GBC project overall, to date.”

He added: “In order for Redpath’s GBC production team to maintain performance, key aspects were implemented. Thorough daily planning and scheduling of equipment and training resulted in a robust and flexible crew. An equally successful production drilling crew, operating Solo drills, and a slot raise crew, operating Redbore 50X raise drills, contributed to the record achievement. Such impressive production results would not be possible without the commitment towards a strong safety culture that is deeply rooted in the GBC operations.”

Copper price jumps as China turns away Australian concentrate MINING.com Editor

THE COPPER price on Friday attempted a fresh two-and-half year high, as Chinese smelters

scramble to pick up concentrate on the spot market amid a political row between Beijing and

Canberra.

On the Comex market, copper for delivery in December made gains for the fifth straight

session, jumping more than 2% to $3.1740 a pound ($6,997 a tonne) in brisk trade. More than $5.5 billion worth of metal had traded by early afternoon in New York.

Friday’s trading brings the bellwether metal’s recovery since the height of the covid-19 induced sell-off, which sent the copper price crashing to below $2.00 a pound, to more than

63%.

Reports that China has unofficially banned Australian copper concentrate imports have forced refiners in the country, responsible for more than half the world’s copper

consumption, to drastically lower treatment and refining charges (TC/RCs).

Australia only accounts for 5% of Chinese concentrate imports, but comes at the same time as

covid-related disruptions and labour action in top producer South America.

In an indication of just how scarce copper for prompt delivery has become in China, spot

treatment charges plunged to an eight-year low of just over $50 a tonne this week, a 30% decline from the 2020 high hit in March.

That is also well below the annual benchmark of $62 a tonne, and Reuters quotes a

Singapore-based trader as saying spot rates could go lower still:

“If you had a ship full of copper concentrate floating offshore, you’re rapidly trying to find a

home,” an Australia-based trader said.

Daily News Update Page 28

Traders said Australian shipments meant for China could divert to Japan, Korea, India, or to blending facilities in Taiwan or Malaysia.

Australian producers of lead and zinc concentrates and precious metals are also making back-up plans in case the ban broadens, two traders said.

Vietnam's thermal coal imports seen resilient through 2021 despite

funding challenges ahead Author: Fred Wang, Jia Hui Tan; Editor: Wendy Wells

VIETNAM's seaborne thermal coal traders are optimistic the country's fossil fuel

consumption will continue to rise through 2021 amid burgeoning demand for electricity production at the lowest cost, despite the funding and regulatory challenges that loom for new coal-fired power plants, market sources said Nov. 6.

A new law on public-private partnerships that comes into effect in 2021 creates new hurdles for foreign coal investors that fail to conclude build-operate-transfer contracts and government guarantee and undertaking agreements before the end of 2020, according to analyst Thu Vu from the Institute for Energy Economics and Financial Analysis, or IEEFA.

Four of the 15 coal power projects currently in the pipeline in Vietnam -- Nam Dinh 1, Vung Ang 2, Vinh Tan 3 and Song Hau 2 -- have yet to reach the commissioning phase, and with their contractual agreements still pending official sign-off, they could be at risk of being called off due to the new law, according to Vu.

However, a trader in Indonesia said that while Vietnam's coal-fired power plant projects may be delayed by the new law, they would eventually take off.

"Developing countries that are growing at a fast pace will need cheaper power, which can only be obtained from thermal coal today," he said. "Restrictions on funding and timelines might also be eased if power prices are anticipated to tick higher," he added.

A coal producer in Indonesia noted that it was already not easy to conclude thermal coal trades to Vietnam unless it involved a strategic project with government involvement.

"The rate of the growth in coal consumption may slow down in Vietnam, but the overall volume will not dip," he said.

Southeast Asia's thermal coal imports are expected to rise 29% to 128 million mt in 2020 from realized imports of 99 million mt in 2019, according to S&P Global Platts Analytics. Imports to Vietnam are expected to comprise 55 million mt of the total, up 22% from 45 million mt in 2019, and increase further to 55.2 million mt in 2021, it added.

Vietnam received 45% of Southeast Asia's thermal coal imports in 2019 and with more coal-fired power plant projects in the pipeline, its low domestic coal production will continue to make it reliant on imports, predominately from Indonesia and Australia, market sources said.

Daily News Update Page 29

"Power demand in Vietnam in September at nearly 30 GW was up over 7% from a year ago. Platts Analytics expects a continued recovery in coal-fired power generation in Vietnam, as well as Southeast Asia, but we do not expect a full recovery in the region until the second half of 2021," said Matthew Boyle, lead coal analyst from Platts Analytics.

TRADERS WARY

Seaborne thermal coal traders remained wary about the pace of development of Vietnam's new power plants and the timing of when they were likely to come online, and were preparing to make adjustments to export volumes if required.

One coal producer in Indonesia said he may need to lower his near-term export projections given the increasing difficulty for Vietnam's power plants in getting funding and coming online, which comes in addition to the Indonesian government ramping up efforts to allocate more local coal production to domestic requirements.

"This also comes at a time where there may be changes to Indonesian coal royalties, which could also change the dynamics between export and domestic markets," he said.

LNG initiatives in Vietnam are also continuing to gain momentum -- in competition with thermal coal for power consumption.

The Vietnam Energy Institute says the country has the potential to build 108.5 GW of LNG-fired power capacity, but this has yet to be confirmed by the country's National Power Development Plan VIII.

VEI estimates that Vietnam will import 1.2 million mt of LNG by 2025, 8.5 million mt by 2030, 17.2 million mt by 2035, 23.6 million mt by 2040 and 29.6 million mt by 2045.

However, limited coal to gas switching facilities may limit the potential upside of LNG imports and coal imports currently remain more competitive for power consumption, market sources said.

Metso Outotec ups recovery at Hudbay Constancia with centre launder upgrade

Posted by Paul Moore

OPTIMISING the froth surface area throughout the flotation circuit has a critical impact in

the process performance. Launders are an essential part of any flotation cell and with the correct design and orientation for specific application, optimal performance can be achieved. Metso Outotec and Hudbay recently worked together to improve rougher flotation performance at Hudbay’s Constancia site, located in southern Peru.

“One of the challenges our customer was experiencing was the lack of overflow in the last cells of the rougher flotation circuit which needed to be improved. This was directly impacting the copper and molybdenum performance. The solution consisted of upgrading each flotation line with Center Launders in the last three e300 TankCells. Installation of

Daily News Update Page 30

Center Launders took place in two stages: the first set of three Center Launders were installed in rougher Line 1 during June 2019 and the second set of three Center Launders were installed in November 2019. This allowed for metallurgical evaluation regarding copper and molybdenum recovery in Line 1 relative to Line 2.”

The results indicated a weighted recovery increase of 0.70% for copper and 1.40% for molybdenum. The incremental cashflow resulted in a payback period of less than six months. The move overall meant improved operability, stability and process control of the rougher circuit.

Metso Outotec was able to take advantage of planned maintenance shutdowns to retrofit the last three cells of the flotation rows. The installation shortened the froth transport distance and optimised froth surface area through use of the Metso Outotec Center Launders. It was followed by making consistent improvements to optimise the performance of the upgraded cells through sampling, laboratory testing and statistical data.

China's Australian copper ban seen hurting smelters in TC/RCs talks By: Reuters

AN UNOFFICIAL Chinese ban on Australian copper concentrate imports could hurt Chinese smelters in their negotiations with miners on benchmark treatment charges for 2021, traders and analysts said.

Australian media reported that Chinese importers have been informally warned by Chinese customs officials that a range of Australian goods, including copper concentrate, will be targeted for increased inspections from November 6 amid a diplomatic row between the two countries.

The orders had already forced traders to divert some small shipments bound for China, two traders told Reuters on Friday.

While Australia is not a big supplier of copper concentrate to China, the row comes as supplies from South America have been disrupted by the coronavirus epidemic which looks set to erode the bargaining power of smelters in China to buy for next year.

"On the face of it, the market tightens for the Chinese, so ultimately they will have to push their prices on the offer a bit lower to get that security of supply," said analyst Daniel Hynes of ANZ in Sydney.

Miners pay treatment and refining charges (TC/RCs) to smelters to process concentrate into refined metal. When supply is scarce, refiners have to charge less to attract what they need.

Chinese smelters and global miners meet every November to negotiate the annual benchmark for the following year's TC/RCs.

"The timing couldn't have been worse. The one area that is not struggling with Covid-19 impacts to logistics is Australia, and that's the place they have banned. The South Americans will use this as leverage," said a copper concentrate trader based in Australia. Chile and Peru are China's biggest suppliers.

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Spot TCs plumbed an eight-year low of $50.50 a tonne this week, a 30% drop from the 2020 high hit in March and well below the annual benchmark of $62 a tonne, Asian Metals data showed.

"The ban may drive the spot market lower for China. For the 2021 benchmark, a slide is fair but I think it will actually settle near $60 a tonne and 6 cents per pound," said a Singapore-based trader.

A second Australia-based trader forecast the benchmark in the mid $50s a tonne.

DIVERSION

In the short term, traders are scrambling to redirect Australian shipments.

"If you had a ship full of copper concentrate floating offshore, you're rapidly trying to find a home," a second Australia-based trader said.

Traders said Australian shipments meant for China could divert to Japan, Korea, India, or to blending facilities in Taiwan or Malaysia.

Australian producers of lead and zinc concentrates and precious metals are also making back-up plans in case the ban broadens, two traders said.

"We have no idea how long (this will last). It's subject to the relationship between governments," added a trader with a Chinese smelter.

The ban is expected to have only a limited impact on the Chinese concentrate market's supply-demand balance, as Australia accounts for just less than 5% of China's concentrate imports.

Australia's two biggest copper producers, BHP Group and trading house Glencore, are also unlikely to be affected. BHP does not export copper concentrate and Glencore can divert material to its two smelters, each in Australia and the Philippines, they said.

Glencore and BHP declined to comment.

Turquoise Hill seeks Oyu Tolgoi clarity from Rio Tinto Salomae Haselgrove

RIO Tinto and Turquoise Hill have commenced arbitration proceedings to seek an

explanation of financing options for the Oyu Tolgoi gold-copper project in Mongolia.

The arbitration, which will take three to five months follows recent discussions between the two parties related to the re-profiling of Oyu Tolgoi’s existing project debt.

This was contemplated by a memorandum of understanding between Rio Tinto and Turquoise Hill which was announced during September.

Turquoise Hill’s board approved the arbitration via special committee, which concluded that Rio Tinto’s approach to financing Oyu Tolgoi is “incompatible” with Turquoise Hill’s strategy to maximise debt for Oyu Tolgoi’s development.

Daily News Update Page 32

“The special committee believes that the arbitration will provide needed clarity from an independent third aprty as to the parties’ respective rights and obligations with respect to the financing process,” Turquoise Hill stated.

“The arbitration process is confidential and is expected to take between three and five months to reach a decision.”

Turquoise Hill is advancing its evaluation of financing options for the project to address the disclosed funding gap.

Some of the contemplated options include additional debt from banks or other financial institutions, offering global-medium term notes or a gold streaming transaction.

The company will present its preferred funding options to Rio Tinto prior to December 31, as per the memorandum of understanding.

During September, Rio Tinto announced plans to raise funding for Oyu Tolgoi by re-profiling debt repayments.

The plan was subject to Turquoise Hill making an equity offering for the balance of funding required to complete the project.

This July, costs to develop Oyu Tolgoi rose from $US5.3 billion ($7.2 billion) by a further $US1.3-$US1.8 billion as Rio Tinto started a new underground mine design.

This also caused a delay of 21 to 29 months for first sustainable production from the mine.