IMA-Daily Update Page 1

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Mining HPE October 2020 : Majority of Commodity Prices Increase Significantly HPE Pertambangan Oktober 2020: Mayoritas Harga Komoditas Naik Signifikan Demand was raised, the benchmark coal price (HBA) in October rose to US$ 51 per ton Permintaan terkerek, harga batubara acuan (HBA) Oktober naik menjadi US$ 51 per ton Main Factors to Boost Vale Indonesia's Profits Faktor Utama Pendongkrak Laba Vale Indonesia Coal Prices Are Expected To Continue To Burn Until The End of This Year Harga Batu Bara Diharapkan Terus Membara hingga Akhir Tahun Ini Pay attention to the recommendation of Bukit Asam's (PTBA) stock amid the decline in coal prices Simak rekomendasi saham Bukit Asam (PTBA) di tengah penurunan harga batubara Coal Prices Are Still Skyrocketing, This Week Over US$60/ton Harga Batubara Masih Meroket, Pekan Ini ke Atas US$60/ton For US$ 650 Million Bond Issuance, Indika (INDY) Asks for Shareholders' Approval at the End of October Emisi Obligasi US$650 Juta, Indika (INDY) Minta Restu Pemegang Saham Akhir Oktober Kobexindo Tractors (KOBX) boosts revenue from the non-mining sector Kobexindo Tractors (KOBX) pacu pendapatan dari sektor non pertambangan PT. Vale Proves Mining Achievements By Receiving Two Awards at the 2020 Minerba Award PT. Vale Buktikan Prestasi Pertambangan Dengan Raihan Dua Penghargaan di Minerba Award 2020

Warta Ekonomi Kontan Investor Daily Bisnis Kontan CNBC Indonesia Bisnis Kontan Rakyat News

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Prices skyrocketed, world gold reserves began to thin out Harga Meroket, Cadangan Emas Dunia Mulai Menipis Coal Prices Weak at the End of Trading, Rally Ends? Harga Batu Bara Lemes di Akhir Perdagangan, Reli Berakhir? Indonesia says battery-grade nickel project drops deep-sea waste plan Iron ore exports from Brazil hit highest level since 2015 Newcrest to fast-track Havieron development Chile's Codelco copper production flat in August, key mines mixed UK’s first new deep coal mine in 30 years approved Why China Can’t Quit Its Coal Addiction

Dunia Tambang CNBC Indonesia Reuters Mining.com Australian Mining Reuters Mining.com Oil Price

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IMA-Daily Update Page 3

Mining HPE October 2020 : Majority of Commodity Prices

Increase Significantly Author: WE Online Editor, Editor:

Rosmayanti

UNTIL the end of September 2020, the prices of several mining product commodities showed a positive trend amid the Covid-19 pandemic. This is because the prices of several mining product commodities have increased significantly due to increased world demand.

This condition affects the export bench-mark price (HPE) for mining products subject to export duty (BK) for the period of October 2020. This provision is stipulated in the Minister o f Trade Regulation 76/2020 on September 30, 2020.

HPE of mining products for the period of October 2020 experienced fluctuations, including copper concentrate, iron concentrate, laterite iron concentrate, lead concentrate, zinc concentrate, iron sand concentrate, ilmenite concentrate, and leached bauxite, which increased compared to the previous month.

"The prices of several mining product commodities have begun to increase due to increased world demand," explained the Director General of Foreign Trade, Didi Sumedi, in his statement (2/10/2020).

Didi added that the manganese concentrate commodity has decreased in price due to excess supply and decreased market demand in manganese refining plants in China. In addition, rutile concentrate experienced a decline in price due to the decreasing demand for this commodity in the steel industry.

HPE Pertambangan Oktober 2020: Mayoritas Harga

Komoditas Naik Signifikan Penulis: Redaksi WE Online, Editor:

Rosmayanti

HINGGA menuju periode akhir September 2020, harga beberapa komoditas produk pertambangan menunjukkan tren positif di tengah pandemi Covid-19. Hal ini disebab-kan harga beberapa komoditas produk pertambangan mengalami kenaikan yang signifikan karena permintaan dunia yang meningkat.

Kondisi ini memengaruhi harga penetapan Harga Patokan Ekspor (HPE) produk pertam-bangan yang dikenakan bea keluar (BK) untuk periode Oktober 2020. Ketentuan ini ditetap-kan dalam Peraturan Menteri Perdagangan 76/2020 pada 30 September 2020.

HPE produk pertambangan periode Oktober 2020 mengalami fluktuasi, antara lain konsentrat tembaga, konsentrat besi, konsentrat besi laterit, konsentrat timbal, konsentrat seng, konsentrat pasir besi, konsentrat ilmenite, dan bauksit yang telah dilakukan pencucian mengalami kenaikan dibandingkan periode bulan lalu.

"Harga beberapa komoditas produk pertam-bangan mulai mengalami kenaikan karena permintaan dunia yang meningkat," jelas Direktur Jenderal Perdagangan Luar Negeri Didi Sumedi melalui keterangannya (2/10/2020).

Didi menambahkan, komoditas konsentrat mangan mengalami penurunan harga karena kelebihan pasokan dan penurunan permintaan pasar di pabrik pemurnian mangan di China. Di samping itu, konsentrat rutil mengalami penurunan harga karena permintaan komoditas tersebut pada industri baja yang mengalami penurunan.

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A number of mining products subject to BK are copper concentrate, iron concentrate, laterite iron concentrate, iron sand concentrate, iron sand concentrate pellet, manganese concentrate, lead concentrate, zinc concentrate, ilmenite concentrate, rutile concentrate, and washed bauxite.

HPE base price calculations for iron concentrate, laterite iron concentrate, iron sand concentrate, manganese concentrate, ilmenite concentrate and rutile concentrate are sourced from Asian Metal and Iron Ore Fine Australian. Meanwhile, copper concentrate, iron sand concentrate pellets, lead concentrate, zinc concentrate, and bauxite are sourced from the London Metal Exchange (LME).

Compared to the previous period, mining products that experienced an average price increase in the October 2020 period were copper concentrate (Cu > 15%) with an average price of US$ 2,903.62 per WE or an increase of 1.91% and iron concentrate (hematite). , magnetite) (Fe > 62% and < 1% TiO2) with an average price of US$ 110.14 per WE or an increase of 10.48%.

There are also laterite iron concentrates (gutite, hematite, magnetite) with levels (Fe > 50% and (Al2O3 + SiO2) > 10%) with an average price of US$ 56.28 per WE or an increase of 10.48%; lead concentrate (Pb > 56%) with an average price of US$ 792.89 per WE or an increase of 2.79%; zinc concentrate (Zn > 51%) with an average price of US$ 643.04 per WE or an increase of 16.82%.

Then, iron sand concentrate (lamella magnetite-ilmenite) (Fe > 56%) with an average price of US$ 65.77 per WE or an increase of 10.48%; ilmenite concentrate (TiO2 > 45%) with an average price of US$ 283.80 per WE or an increase of 2.89%; and washed bauxite (Al2O3 > 42%) with an average price of US$ 23.62 per WE or an increase of 2.97%.

Sejumlah produk pertambangan yang dikenakan BK adalah konsentrat tembaga, konsentrat besi, konsentrat besi laterit, konsentrat pasir besi, pellet konsentrat pasir besi, konsentrat mangan, konsentrat timbal, konsentrat seng, konsentrat ilmenit, konsentrat rutil, dan bauksit yang telah di-lakukan pencucian.

Perhitungan harga dasar HPE untuk komo-ditas konsentrat besi, konsentrat besi laterit, konsentrat pasir besi, konsentrat mangan, konsentrat ilmenit, dan konsentrat rutil bersumber dari Asian Metal dan Iron Ore Fine Australian. Sementara itu, konsentrat tembaga, pellet konsentrat pasir besi, konsentrat timbal, konsentrat seng, dan bauksit bersumber dari London Metal Exchange (LME).

Dibandingkan periode sebelumnya, produk pertambangan yang mengalami kenaikan harga rata-rata pada periode Oktober 2020 adalah konsentrat tembaga (Cu > 15%) dengan harga rata-rata sebesar US$2.903,62 per WE atau naik sebesar 1,91% dan konsen-trat besi (hematit, magnetit) (Fe > 62% dan < 1% TiO2) dengan harga rata-rata sebesar US$110,14 per WE atau naik sebesar 10,48%.

Ada pula konsentrat besi laterit (gutit, hematit, magnetit) dengan kadar (Fe > 50% dan (Al2O3 + SiO2) > 10%) dengan harga rata-rata sebesar US$56,28 per WE atau naik sebesar 10,48%; konsentrat timbal (Pb > 56%) dengan harga rata -rata sebesar US$792,89 per WE atau naik sebesar 2,79%; konsentrat seng (Zn > 51%) dengan harga rata-rata sebesar US$643,04 per WE atau naik sebesar 16,82%.

Lalu, konsentrat pasir besi (lamela magnetit-ilmenit) (Fe > 56%) dengan harga rata-rata sebesar US$65,77 per WE atau naik sebesar 10,48%; konsentrat ilmenit (TiO2 > 45%) dengan harga rata-rata sebesar US$283,80 per WE atau naik sebesar 2,89%; dan bauksit yang telah dilakukan pencucian (washed bauxite) (Al2O3 > 42%) dengan harga rata-rata sebesar US$23,62 per WE atau naik sebesar 2,97%.

IMA-Daily Update Page 5

Meanwhile, the products that experienced a decline compared to the previous HPE were manganese concentrate (Mn > 49%) with an average price of US$ 211.43 per WE or a decrease of 0.70% and rutile concentrate (TiO2 > 90%) at an average price an average of US$ 856.09 per WE or decreased by 0.03%.

Meanwhile, iron sand concentrate (lamella magnetite-ilmenite) pellets (Fe > 54) with an average price of US$ 117.98 per WE did not change.

According to Didi, the determination of the HPE for the October 2020 period was determined after paying attention to various written inputs and coordination from various related agencies.

Sementara itu, produk yang mengalami penurunan dibandingkan HPE periode sebelumnya adalah konsentrat mangan (Mn > 49%) dengan harga rata-rata sebesar US$211,43 per WE atau turun sebesar 0,70% dan konsentrat rutil (TiO2 > 90%) dengan harga rata-rata sebesar US$856,09 per WE atau turun sebesar 0,03%.

Adapun pellet konsentrat pasir besi (lamela magnetit-ilmenit) (Fe > 54) dengan harga rata-rata US$117,98 per WE tidak meng-alami perubahan.

Menurut Didi, penetapan HPE periode Oktober 2020 ini ditetapkan setelah memperhatikan berbagai masukan tertulis dan koordinasi dari berbagai instansi terkait.

Demand was raised, the benchmark coal price (HBA) in October rose to US$51 per ton Reporter: Ridwan Nanda Mulyana | Editor:

Herlina Kartika Dewi

REFERENCE Coal Price (HBA) in October 2020 increased by 3.2% compared to the HBA in the previous month to US$ 51.00 per ton.

The Head of the Communication, Public Information Services and Cooperation Bureau (KLIK) of the Ministry of EMR, Agung Pribadi, said that the recovery of the industry in China and the Japanese steel and automotive industries also increased global coal demand.

The increase in demand for coal in several countries raised the average monthly index for the compiler of the HBA, namely ICI up 0.53%, Platt's up 0.12%, GCNC up 6.29%, and NEX up 6.01%.

Permintaan terkerek, harga batubara acuan (HBA) Oktober naik menjadi US$ 51 per ton

Reporter: Ridwan Nanda Mulyana | Editor: Herlina Kartika Dewi

HARGA Batubara Acuan (HBA) bulan Oktober 2020 naik sebesar 3,2% diban-dingkan HBA bulan sebelumnya menjadi sebesar US$ 51,00 per ton.

Kepala Biro Komunikasi, Layanan Infor-masi Publik dan Kerja Sama (KLIK) Kementerian ESDM Agung Pribadi menyampaikan, mulai pulihnya industri di China serta industri baja dan otomotif Jepang ikut meningkatkan permintaan batubara global.

Naiknya permintaan batubara di beberapa negara mengangkat rata-rata indeks bulanan penyusun HBA, yaitu ICI naik 0,53%, Platt's naik 0,12% GCNC naik 6,29%, dan NEX naik 6,01%.

IMA-Daily Update Page 6

"Positive signals from the industry that are

starting to rise in China and Japan have

raised the HBA in October 2020. Demand

for coal from China has increased because

China's domestic coal prices are higher

than imported coal prices," Agung said in a

written statement quoted by Kontan.co.id,

Friday (2/10).

Agung said, since Covid-19 was declared a

global pandemic throughout 2020, the HBA

had strengthened by 0.28% to US$ 67.08

per ton in March compared to February

which was US$ 66.89 per ton.

Then, the HBA continued to weaken to US$

65.77 per ton in April and US$ 61.11 per

ton in May.

Furthermore, the HBA continued to decline

with US $ 52.98 per ton for the June HBA,

US$ 52.16 per ton in July, and the August

HBA at US$ 50.34 per ton.

For information, the HBA itself is obtained

from the average index of the Indonesia

Coal Index (ICI), Newcastle Export Index

(NEX), Globalcoal Newcastle Index (GCNC),

and Platts 5900 in the previous month. The

equivalent quality of calories is 6322 kcal

per kilogram of GAR.

Later, this reference price will be used

directly in the sale and purchase of coal

commodities (spot) for one month at the

point of delivery of free on board sales on a

carrier vessel (FOB Veseel).

"Sinyalemen positif industri yang mulai

bangkit di Tiongkok dan Jepang mengerek

kenaikan HBA Oktober 2020. Permintaan

batubara dari Tiongkok meningkat karena

harga batubara domestik Tiongkok lebih

tinggi daripada harga batubara impor," kata

Agung lewat keterangan tertulis yang

dikutip Kontan.co.id, Jum'at (2/10).

Agung mengungkapkan, sejak Covid-19 di-

tetapkan sebagai pandemi global sepanjang

tahun 2020, HBA sempat menguat sebesar

0,28% pada angka US$ 67,08 per ton di

bulan Maret dibanding bulan Februari yang

US$ 66,89 per ton.

Kemudian, HBA terus mengalami pele-

mahan ke angka US$ 65,77 per ton di bulan

April dan US$ 61,11 per ton di bulan Mei.

Selanjutnya HBA terus turun dengan US$

52,98 per ton untuk HBA Juni, US$ 52,16

per ton di Juli, dan HBA Agustus sebesar

US$ 50,34 per ton.

Sebagai informasi, HBA sendiri diperoleh

dari rata-rata indeks Indonesia Coal Index

(ICI), Newcastle Export Index (NEX),

Globalcoal Newcastle Index (GCNC), dan

Platts 5900 pada bulan sebelumnya.

Kualitas yang disetarakan pada kalori 6322

kcal per kilogram GAR.

Nantinya, harga acuan ini akan digunakan

secara langsung dalam jual beli komoditas

batubara (spot) selama satu bulan pada

titik serah penjualan secara Free on Board

di atas kapal pengangkut (FOB Veseel).

IMA-Daily Update Page 7

Main Factors to Boost Vale Indonesia's Profits Parluhutan Situmorang

THE TREND of increasing sales of electric

cars (electrical vehicles) and improving the

Chinese economy will have a positive impact on the financial performance of PT Vale Indonesia Tbk (INCO) going forward. The company's performance will also be supported by a decrease in global nickel ore supply following the export ban on this commodity.

Trimegah Sekuritas analysts Hasbie and Willinoy Sitorus said that the growth of the electric car industry plus the decline in global nickel supply will be the main

factors in boosting Vale Indonesia's net profit this year.

These two factors will increase the selling price of these commodities, which will increase the company's profit margin.

Since the export ban on nickel ore was

implemented by the Government of Indonesia, the sell ing price of this commodity has gradually improved since March 2020. In fact, the increase was also

supported by the acceleration of China's economic recovery and the low supply of global nickel from Indonesia.

The ban on nickel exports has resulted in a decline in the supply of nickel ore in China by up to 70% which is imported from Indonesia.

Meanwhile, China's stainless steel production increased by around 8.5% in the first half of 2020, as China's economy

began to rebound.

Faktor Utama Pendongkrak Laba Vale Indonesia

Parluhutan Situmorang

TREN peningkatan penjualan mobil listrik

(electrical vehicle) dan perbaikan ekonomi Tiongkok akan berdampak positif terhadap

kinerja keuangan PT Vale Indonesia Tbk (INCO) ke depan. Kinerja perseroan juga akan didukung oleh penurunan pasokan bijih nikel global setelah larangan ekspor komoditas ini.

Analis Trimegah Sekuritas Hasbie dan Willinoy Sitorus mengungkapkan, pertum-buhan industri mobil listrik ditambah penurunan pasokan nikel global akan menjadi faktor utama pendongkrak keun-

tungan bersih Vale Indonesia sepanjang tahun ini.

Kedua faktor tersebut akan menaikkan harga jual komoditas tersebut yang ber-dampak pada peningkatan margin keun-tungan perseroan.

Sejak pelarangan ekspor bijih nikel di-terapkan oleh Pemerintah Indonesia, harga jual komoditas ini berangsurangsur mem-baik terhitung sejak Maret 2020. Bahkan, kenaikan juga didukung oleh percepatan pemulihan ekonomi Tiongkok dan rendahnya pasokan nikel global dari Indonesia.

Pelarangan ekspor nikel berimbas ter-hadap turunnya suplai bijih nikel di Tiongkok hingga 70% yang diimpor dari Indonesia.

Sedangkan produksi baja nirkarat Tiongkok meningkat sekitar 8,5% pada semester I-2020, seiring dengan ekonomi Tiongkok yang mulai rebound.

IMA-Daily Update Page 8

In addition to the export ban on nickel ore and a surge in demand from China, the increase in demand for nickel ore will be supported by a surge in the electric vehicle industry with a target market share of 10% in 2025 compared to 2019's realization of 2.5%.

The electric car market share is predicted to grow again by 28% in 2030 and reach 58% in 2040. The electric car market share target is equivalent to the average annual growth in sales of electric vehicles reaching 26.2% from 2019 to 2025.

Meanwhile, based on 2019 data, 7% of world nickel consumption is used for electric car batteries. If it is assumed that sales of electric vehicles will reach 8.5 million per year by 2025, it will take 164 thousand tons of nickel per year to support these electric vehicles. This figure is equivalent to 6.9% of total global nickel consumption in 2019.

"The increase in sales of electric cars must also be supported by strengthening infra-structure and selling prices in accordance with market demand. Currently, the battery price reaches US $ 160 per kwh and is expected to fall below US$ 100 per kwh by 2024," wrote Hasbie and Willinoy in their latest research.

With the government's expectation to become 20% shareholder of Vale Indonesia by the end of this year, the company will become a major player in the electric car industry in the long term.

The company also plans to form a joint venture with Sumitomo to produce nickel using HPAL technology which will be used for electric car batteries.

These various factors prompted Trimegah Sekuritas to maintain its recommendation to buy INCO shares with a target price of Rp 4,400. The target price assumes that...

Selain faktor pelarangan ekspor bijih nikel dan lonjakan permintaan dari Tiongkok, peningkatan permintaan bijih nikel bakal didukung oleh lonjakan industri kendaraan listrik dengan target pangsa pasar mencapai 10% pada 2025 dibandingkan realisasi tahun 2019 sebesar 2,5%.

Pangsa pasar mobil listrik diprediksi kembali bertumbuh sebesar 28% pada 2030 dan men-capai 58% pada 2040. Target pangsa pasar mobil listrik tersebut setara dengan rata-rata pertumbuhan tahunan penjualan kendaraan listrik mencapai 26,2% dari tahun 2019 hingga 2025.

Sedangkan berdasarkan data tahun 2019, sebesar 7% dari konsumsi nikel dunia ter-pakai untuk baterai mobil listrik. Jika di-asumsikan penjualan kendaraan listrik men-capai 8,5 juta per tahun pada 2025, maka dibutuhkan sebanyak 164 ribu ton nikel per tahun untuk mendukung kendaraan listrik tersebut. Angka tersebut setara dengan 6,9% dari total konsumsi nikel global tahun 2019.

“Peningkatan penjualan mobil listrik tentu juga harus didukung oleh penguatan infra-struktur dan harga jual yang sesuai dengan permintaan pasar. Saat ini, harga baterai mencapai US$ 160 per kwh dan diharapkan turun di bawah US$ 100 per kwh pada 2024,” tulis Hasbie dan Willinoy dalam riset terbaru.

Dengan ekspektasi pemerintah menjadi pemegang 20% saham Vale Indonesia akhir tahun ini, perseroan akan menjadi pemain utama dalam industri mobil listrik dalam jangka panjang.

Perseroan juga berencana membentuk per-usahaan patungan dengan Sumitomo untuk memproduksi nikel dengan menggunakan teknologi HPAL yang bakal dimanfaatkan untuk baterai mobil listrik.

Berbagai faktor tersebut mendorong Trimegah Sekuritas untuk mempertahankan rekomendasi beli saham INCO dengan target harga Rp 4.400. Target harga tersebut mengasumsikan...

IMA-Daily Update Page 9

The target price assumes that the average selling price of nickel will be stable at US$ 15,100 per ton. The target also takes into account the estimated PBV of around 1.75 times in 2021.

The target price also takes into account the expectation of an increase in Vale Indonesia's net profit to US$ 93 million this year, compared to last year's realization of US$ 57 million.

The increase in net income will be supported by an increase in the company's net profit margin (net margin) from 7.3% to 12.3%. Meanwhile, the company's revenue is estimated to decline from US$ 782 million to US$ 758 million throughout 2020.

Previously, UOB Kay Hian Sekuritas analyst Benyamin Mikael had projected that Vale Indonesia would be able to generate sustainable profit growth because it was supported by a number of factors.

Among other things, the increased demand for batteries for electric vehicles has a direct impact on increasing the selling price of this commodity.

According to him, sales of electric cars have shown an increasing trend in recent years which has directly increased demand for nickel, which is the raw material for lithium batteries.

Not only that, the nickel content for electric car batteries also increased to 48% compared to the previous 36%. This is in line with the increase in power storage of electrical energy in the car battery.

The company's financial performance growth will also be supported by continued volume expansion through the construction of a number of new ferronickel plants in Bahodopi and Pomalaa.

Target harga tersebut mengasumsikan rata-rata harga jual nikel akan stabil di level US$ 15.100 per ton. Target tersebut juga mempertimbangkan perkiraan PBV sekitar 1,75 kali pada 2021.

Target harga tersebut juga memper-timbangkan ekspektasi kenaikan laba bersih Vale Indonesia menjadi US$ 93 juta tahun ini dibandingkan realisasi tahun lalu mencapai US$ 57 juta.

Lonjakan laba bersih akan didukung oleh peningkatan margin keuntungan bersih (net margin) perseroan dari 7,3% menjadi 12,3%. Sedangkan pendapatan perseroan diperkirakan turun dari US$ 782 juta menjadi US$ 758 juta sepanjang 2020.

Sebelumnya, analis UOB Kay Hian Seku-ritas Benyamin Mikael memproyeksikan Vale Indonesia mampu mencetak pertum-buhan keuntungan secara berkelanjutan karena didukung oleh sejumlah faktor.

Di antaranya, peningkatan permintaan baterai untuk kendaraan listrik yang secara langsung berdampak pada pening-katan harga jual komoditas ini.

Menurut dia, penjualan mobil listrik sedang menunjukkan tren peningkatan dalam beberapa tahun terakhir yang secara langsung meningkatkan permintaan nikel yang menjadi bahan baku baterai lithium.

Tak hanya itu, kandungan nikel untuk baterai mobil listrik juga mengalami peningkatan menjadi 48% dibandingkan sebelumnya sebesar 36%. Hal itu seiring dengan peningkatan daya tamping penyimpanan energi listrik di baterai mobil tersebut.

Pertumbuhan kinerja keuangan perseroan juga bakal didukung oleh berlanjutnya volume ekspansi melalui pembangunan sejumlah pabrik baru feronikel di Bahodopi dan Pomalaa.

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"The continued financial performance will also be supported by an increase in demand for stainless steel, along with an increase in infrastructure network develop-ment," wrote Benyamin in his research.

Currently, the company is preparing to build a nickel factory in Bahodopi to process nickel ore as raw material for stainless steel.

The project, which costs US$ 1.6 billion, is expected to start construction in early 2021 with a production capacity of 70 thousand tons.

Vale Indonesia also has a Pomalaa smelter project with the HPAL facility to process nickel limonite ore into raw material for making electric car batteries.

The project is targeted to start construction in early 2021 with an investment value of around US$ 2.5 billion and a production capacity of 40 thousand tons.

Apart from these factors, the growth trend in the company's financial performance will be driven by a surge in demand for stainless steel in line with the Belt and Road Initiative (BRI) program which involves 130 countries and 30 international organizations.

This program includes massive infra-structure development, such as ports, railways and airports. Likewise with the electricity and telecommunications net-works. This program is estimated to cost up to US$ 1 trillion in investment, so this program could have a positive impact on world steel sales.

These positive sentiments prompted UOB Kay Hian Sekuritas to target Vale Indonesia's net profit growth of 35.5% next year. This also encourages UOB Kay Hian Sekuritas to maintain its recommendation to buy INCO shares with a target price of Rp 3,900. Editor: Gora Kunjana (gora_kunjana@investor.co.id)

“Berlanjutnya kinerja keuangan juga akan ditopang oleh peningkatan permintaan besi nirkarat, seiring dengan peningkatan pembangunan jaringan infrastruktur,” tulis Benyamin dalam risetnya.

Saat ini, perseroan sedang menyiapkan pembangunan pabrik nikel di Bahodopi untuk memproses bijih nikel untuk bahan baku baja nirkarat.

Proyek yang menelan dana senilai US$ 1,6 miliar ini diharapkan mulai konstruksi padaawal 2021 dengan kapasitas produksi mencapai 70 ribu ton.

Vale Indonesia juga memiliki proyek smelter Pomalaa dengan fasiltas HPAL untuk mem-proses bijih limonit nikel menjadi bahan baku pembuatan baterai mobil listrik.

Proyek ini ditargetkan mulai dibangun awal tahun 2021 dengan nilai investasi berkisar US$ 2,5 miliar dan kapasitas produksi 40 ribu ton.

Selain faktor tersebut, tren pertumbuhan kinerja keuangan perseroan bakal didorong oleh lonjakan permintaan baja nirkarat seiring program Belt and Road Initiative (BRI) yang melibatkan sebanyak 130 negara dan 30 organisasi internasional.

Program ini mencakup pengembangan infrastruktur besar-besaran, seperti pelabuhan, jalan kereta api, dan bandara. Begitu juga dengan jaringan listrik dan telekomunikasi. Program ini diperkirakan menelan investasi hingga US$ 1 triliun, sehingga program ini bisa berdampak positif terhadap penjualan baja dunia.

Berbagai sentimen positif tersebut men-dorong UOB Kay Hian Sekuritas untuk menargetkan pertumbuhan laba bersih Vale Indonesia sebesar 35,5% pada tahun depan. Hal ini juga mendorong UOB Kay Hian Sekuritas untuk mempertahankan rekomen-dasi beli saham INCO dengan target harga Rp 3.900. Editor : Gora Kunjana (gora_kunjana@investor.co.id)

IMA-Daily Update Page 11

Coal Prices Are Expected To Continue To Burn Until The End

of This Year Denis Riantiza Meilanova

AS we enter the fourth quarter of this year, the benchmark coal price has increased after falling for 5 consecutive months.

Although the increase in reference coal prices (HBA) is not significant, coal producers hope that this increase can be an indicator that coal prices will continue to strengthen until the end of this year.

"Hopefully this can be an indicator for a rebound," said Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia when contacted by Bisnis, Thursday (1/10/2020).

Hendra said that demand for coal will usually increase in the fourth quarter when winter approaches in importing countries.

On the other hand, according to him, the increase in HBAs in October 2020 was also driven by the Chinese government's policy which began to loosen import restrictions.

"Prices have risen slightly this time, partly because China has begun to loosen import restrictions as their domestic coal prices have also started to rise so they have pushed imports," said Hendra.

The HBA for October 2020 has increased by 3.2 percent compared to the HBA for September 2020. After falling in September to US$ 49.42 per ton, this month the HBA was set at US$ 51.00 per ton.

The Head of the Communication, Public Information Service and Cooperation Bureau of the Ministry of EMR, Agung Pribadi, said...

Harga Batu Bara Diharapkan Terus Membara hingga Akhir

Tahun Ini Denis Riantiza Meilanova

SAAT memasuki kuartal keempat tahun ini, harga batu bara acuan mengalami kenaikan setelah sempat turun dalam 5 bulan berturut-turut.

Kendati kenaikan harga batu bara acuuan (HBA) tidak signifikan, produsen batu bara berharap kenaikan ini dapat menjadi indikator harga batu bara akan kembali menguat hingga akhir tahun ini.

"Harapannya bisa menjadi indikator untuk rebound," ujar Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia ketika dihubungi Bisnis, Kamis (1/10/2020).

Hendra mengatakan bahwa permintaan batu bara biasanya akan meningkat pada kuartal IV ketika mendekati musim dingin di negara-negara pengimpor.

Di sisi lain, menurutnya, peningkatan HBA pada Oktober 2020 ini juga didorong oleh kebijakan pemerintah China yang mulai melonggarkan pembatasan impor.

"Harga sedikit naik kali ini antara lain karena Tiongkok mulai melonggarkan pembatasan impor akibat harga batu bara domestik mereka juga mulai naik sehingga mereka mendorong impor," kata Hendra.

HBA Oktober 2020 mengalami kenaikan sebesar 3,2 persen dibandingkan dengan HBA September 2020. Setelah sempat turun pada September menjadi US$49,42 per ton, bulan ini HBA ditetapkan sebesar US$51,00 per ton.

Kepala Biro Komunikasi, Layanan Informasi Publik dan Kerja Sama Kementerian ESDM Agung Pribadi mengatakan...

IMA-Daily Update Page 12

Agung Pribadi, said that the positive signals of the emerging industry in China and Japan raised the HBA in October 2020.

"The recovery of the Japanese steel and automotive industries will also increase global coal demand," said Agung through a press release. Editor: Zufrizal

Agung Pribadi mengatakan bahwa sinyalmen positif industri yang mulai bangkit di China dan Jepang mengerek kenaikan HBA Oktober 2020.

"Mulai pulihnya industri baja dan otomotif Jepang ikut meningkatkan permintaan batubara global," ujar Agung melalui siaran pers. Editor : Zufrizal

Pay attention to the recommendation of Bukit Asam's (PTBA) stock amid the decline in

coal prices Reporter: Akhmad Suryahadi | Editor:

Noverius Laoli

THE PERFORMANCE of PT Bukit Asam Tbk (PTBA) during the first six months of 2020 was under pressure. This state-owned coal mining company posted a net profit of Rp 1.28 trillion.

This realization decreased by 35.8% from Bukit Asam's net profit in the first half of 2019 which at that time reached Rp 2.0 trillion.

Mirae Asset Sekuritas Indonesia analyst Andy Wibowo said the bottom-line performance in the first half realized 45.1% of Mirae Asset's estimate and 46.5% of the full year consensus.

On the operational side, the listed company occupying the Kompas100 Index produced 11.9 million tonnes of coal by June 2020, down 6.03% year-on-year (yoy) due to the Covid-19 pandemic.

"However, we are confident that PTBA's coal production will recover in the second half of 2020 because it is estimated that global coal demand will be higher," wrote Andy in his research, Thursday (1/10).

Simak rekomendasi saham Bukit Asam (PTBA) di tengah

penurunan harga batubara Reporter: Akhmad Suryahadi | Editor:

Noverius Laoli

KINERJA PT Bukit Asam Tbk (PTBA) sepanjang enam bulan pertama 2020 mengalami tekanan. Emiten pertambangan batubara pelat merah ini membukukan laba bersih senilai Rp 1,28 triliun.

Realisasi ini turun 35,8% dari torehan laba bersih Bukit Asam pada semester pertama 2019 yang kala itu mencapai Rp 2,0 triliun.

Analis Mirae Asset Sekuritas Indonesia Andy Wibowo mengatakan, kinerja bottom-line pada semester pertama me-realisasikan 45,1% dari perkiraan Mirae Asset dan 46,5% dari konsensus setahun penuh.

Di sisi operasional, emiten penghuni Indeks Kompas100 tersebut memproduksi 11,9 juta ton batubara hingga Juni 2020 atau turun 6,03% secara year-on-year (yoy) akibat pendemi Covid-19.

“Namun, kami yakin bahwa jumlah produksi batubara PTBA akan pulih pada semester kedua 2020 karena diperkirakan permintaan batubara global akan lebih tinggi,” tulis Andy dalam riset, Kamis (1/10).

IMA-Daily Update Page 13

For now, Mirae Asset Sekuritas stil l

maintains the estimated PTBA coal

production until the end of the year at the

level of 29.1 million tons. This estimate is

higher than PTBA's production guidelines

this year, which is only 25.1 million tons.

Meanwhile, for the stripping ratio, Mirae

Asset noted that PTBA posted a lower strip

ratio in the first half of 2020, to 4.4x from

the previous period at 4.6x. Currently, the

assumption of the PTBA stripping ratio for

the full year is maintained at the same

level, namely 4.5x.

The total coal sales in the first six months

of 2020 reached 12.5 million tonnes (-6.7%

yoy) consisting of export sales of 5.2

million tonnes (41.4%) and sales to the

domestic market reaching 7.3 million. ton

or. equivalent to 58.6% of total sales.

In line, the average selling price (ASP) of

coal in the first half of 2020 also fell to

Rp705,735 per tonne (-9.4% yoy) due to

the global decline in coal prices.

This resulted in PTBA's revenue

decreasing by 15.1% to Rp 9.01 trillion.

PTBA's revenue in the first six months of

2020 only met 42.7% of Mirae Asset's

forecast and 48.3% of the full year

consensus.

Given the unchanged earnings forecast,

Andy maintains the target price for PTBA's

shares at Rp 2,100 per share.

Andy also maintains a recommendation to

hold PTBA's shares because it only has a

potential increase of 6.6%. The risks from

this recommendation are lower global coal

prices and changes in regulations.

Untuk saat ini, Mirae Asset Sekuritas masih mempertahankan estimasi produksi batu-bara PTBA hingga akhir tahun pada level 29,1 juta ton. Estimasi ini lebih tinggi dari pedoman produksi PTBA tahun ini, yakni hanya sebesar 25,1 juta ton.

Sementara untuk nisbah kupas (stripping ratio), Mirae Asset mencatat bahwa PTBA membukukan nisbah kupas yang lebih rendah pada semester I-2020, menjadi 4,4x dari periode sebelumnya di angka 4,6x. Saat ini, asumsi rasio pengupasan PTBA untuk setahun penuh dipertahankan di level yang sama, yakni 4,5x.

Adapun penjualan keseluruhan batubara pada enam bulan pertama 2020 mencapai 12,5 juta ton (-6,7% yoy) yang terdiri atas penjualan ekspor sebesar 5,2 juta ton (41,4%) dan penjualan ke pasar domestic mencapai 7,3 juta ton atau. setara 58,6% dari total penjualan.

Seiring, harga jual rerata (average selling price /ASP) batubara pada semester I-2020 juga merosot ke Rp705.735 per ton (-9,4% yoy) karena penurunan harga batubara yang terjadi secara global.

Ini berimbas pada pendapatan PTBA yang menurun sebesar 15,1% menjadi Rp 9,01 triliun. Pendapatan PTBA pada enam bulan pertama 2020 hanya memenuhi 42,7% dari perkiraan Mirae Asset dan 48,3% consensus setahun penuh.

Mengingat perkiraan pendapatan yang tidak berubah, Andy mempertahankan target harga untuk saham PTBA pada level Rp 2.100 per saham.

Andy juga mempertahankan rekomendasi hold saham PTBA karena hanya memilki potensi kenaikan 6,6%. Risiko dari rekomendasi ini adalah harga batubara global yang lebih rendah dan perubahan regulasi.

IMA-Daily Update Page 14

Week Review

Coal Prices Are Still Skyrocketing, This Week Over

US$60/ton Putu Agus Pransuamitra, CNBC Indonesia

COAL prices have posted another strengthening this week, breaking the US$ 60/ton level for the first time in 5 months. The tightening of coal supply in China is the main trigger for the strengthening of coal prices.

According to Refinitiv data, the price of Newcastle thermal coal this week has strengthened 3.5 percent to US$ 60.85/ton. In fact, last Thursday it touched US$ 62.55/ton which is the highest level since last April 3.

The price of coal began to skyrocket since September 8, when totaled up to Friday (2/10/2020) the increase was almost 22%.

The tight supply of Chinese coal has made the price soar. In the last week of September the domestic benchmark coal price, Qinhuangdao, for calories of 5,500 Kcal/Kg, was priced at RMB 599/ton or US$ 87.91/ton.

This price is above the green zone, which is the informal price target set by the government of the Bamboo Curtain country. The price range is the level at which mining and utility companies can still maintain their margins or profits.

As a result of this high price, interest in seaborne coal imports has increased because the price is cheaper. The price of Newcastle thermal coal, which has risen 3.5% this week, is still much cheaper.

Review Sepekan

Harga Batu Bara Masih Meroket, Pekan Ini ke Atas

US$60/ton Putu Agus Pransuamitra, CNBC Indonesia

HARGA batu bara kembali membukukan penguatan di pekan ini, menembus level US$ 60/ton untuk pertama kalinya dalam 5 bulan terakhir. Pasokan batu bara yang mengetat di China menjadi pemicu utama penguatan harga batu bara.

Melansir data Refinitiv, harga batu bara termal Newcastle di pekan ini menguat 3,5% ke US$ 60,85/ton. Bahkan, di hari Kamis lalu sempat menyentuh US$ 62,55/ton yang merupakan level tertinggi sejak 3 April lalu.

Harga batu bara mulai meroket sejak 8 September lalu, jika ditotal hingga Jumat (2/10/2020) kenaikannya nyaris 22%.

Ketatnya pasokan batu bara China membuat harganya melonjak tinggi. Pada pekan terakhir bulan September harga batu bara patokan domestiknya yaitu Qinhuangdao untuk kalori 5.500 Kcal/Kg dibanderol RMB 599/ton atau US$ 87,91/ton.

Harga tersebut sudah berada di atas green zone yang merupakan target harga informal yang dipatok oleh pemerintah Negeri Tirai Bambu. Rentang harga tersebut merupakan level di mana perusahaan tambang dan utilitas masih bisa menjaga margin atau labanya.

Akibat harga tinggi tersebut, minat impor batu bara lintas laut (seaborne) menjadi meningkat karena harganya lebih murah. Harga batu bara termal Newcastle yang naik 3,5% di pekan ini saja masih jauh lebih murah.

IMA-Daily Update Page 15

This has also caused rumors that China will again loosen its import quota, so that the price of Newcastle thermal coal has skyrocketed in recent weeks.

Another positive sentiment also came from India. Reuters reported that the increase in industrial activity, especially in the western region of India, made the output of coal-fired power plants of India increase

9.4% in the first half of September.

The increase in the price of Newcastle thermal coal also raised other coal prices, including the Indonesian reference coal price (HBA).

The Indonesian HBA in October rose 3.2% to US$ 51 per ton from the HBA in September 2020 which was US$ 49.42 per ton. The HBA itself is obtained from the average index of the Indonesia Coal Index

(ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platts 5900 in the previous month.

According to the Head of the Communi-cation, Public Information Services and Cooperation Bureau (KLIK) of the Ministry of EMR, Agung Pribadi, the increase in the HBA this October was triggered by positive signals from the emerging Chinese and Japanese industries.

"Positive signals from the industry that are starting to rise in China and Japan have raised the HBA in October 2020. The demand for coal from China is increasing because China's domestic coal prices are higher than imported coal prices," Agung said in an official statement from the Ministry on Thursday (01/10/2020 ). CNBC

INDONESIA RESEARCH TEAM (pap/pap)

Hal ini juga yang membuat beredar isu bahwa China akan kembali melonggarkan kuota impornya, sehingga harga batu bara termal Newcastle terus meroket beberapa pekan terakhir.

Sentimen positif lainnya juga datang dari India. Reuters melaporkan kenaikan aktivitas industri terutama di wilayah Barat India membuat output pembangkit

listrik berbahan bakar batu bara India meningkat 9,4% pada paruh pertama bulan September.

Kenaikan harga batu bara termal

Newcastle turut mengerek harga batu bara

lain termasuk harga batu bara acuan (HBA) Tanah Air.

HBA RI bulan Oktober naik 3,2% menjadi US$ 51 per ton dari HBA pada September 2020 yang sebesar US$ 49,42 per ton. HBA

sendiri diperoleh dari rata-rata indeks Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), dan Platts 5900 pada bulan sebelumnya.

Menurut Kepala Biro Komunikasi, Layanan

Informasi Publik dan Kerja Sama (KLIK) Kementerian ESDM Agung Pribadi kenaikan HBA Oktober ini dipicu oleh sinyal positif dari industri China maupun Jepang yang mulai bangkit.

"Sinyalemen positif industri yang mulai

bangkit di Tiongkok dan Jepang mengerek kenaikan HBA Oktober 2020. Permintaan batubara dari Tiongkok meningkat karena harga batu bara domestik Tiongkok lebih tinggi daripada harga batubara impor," ujar Agung dalam keterangan resmi Kementerian pada Kamis (01/10/2020).

TIM RISET CNBC INDONESIA (pap/pap)

IMA-Daily Update Page 16

For US$650 Million Bond Issuance, Indika (INDY) Asks for

Shareholders' Approval at the End of October

M. Nurhadi Pratomo

PT INDIKA Energy Tbk. will hold an extra-ordinary general meeting of shareholders (EGMS) on October 26, 2020.

Indika will hold an extraordinary general meeting of shareholders (EGMS) with two agenda items. In the first agenda, the company intends to obtain meeting approval on the proposed transaction for issuing debt securities denominated in United States (US) dollars.

The issuer coded INDY shares will indirectly issue global bonds through the company's controlled subsidiary. The aggregate value amounts to a maximum of US$ 650 million or equivalent to Rp9.55 trillion with an estimated exchange rate of Rp.14,700 per US dollar.

"Guaranteed with guarantees in the form of corporate guarantees and/or guarantees in other forms that will be provided by the company and/or certain subsidiaries that are fully owned by the company," said INDY Management quoted in the disclosure of information, Sunday (4/10/2020).

Previously, INDY management explained that debt securities are expected to be able to extend the maturity profile. Furthermore, with the bullet payment scheme for bonds at the end of maturity, the company can maintain its liquidity.

"The company plans to use the proceeds from transactions, including but not limited to the purpose of business development, financing business diversification, repayment of corporate obligations, as well as corporate financing in general," said INDY Management.

Emisi Obligasi US$650 Juta, Indika (INDY) Minta Restu

Pemegang Saham Akhir Oktober M. Nurhadi Pratomo

PT INDIKA Energy Tbk. akan menggelar rapat umum pemegang saham luar biasa (RUPSLB) pada 26 Oktober 2020.

Indika akan menggelar rapat umum peme-gang saham luar biasa (RUPSLB) dengan dua mata acara. Dalam agenda pertama, perseroan bermaksud memperoleh persetujuan rapat atas rencana transaksi penerbitan surat utang dalam denominasi dolar Amerika Serikat (AS).

Emiten berkode saham INDY itu akan me-nerbitkan obligasi global secara tidak langsung melalui anak usaha terkendali per-seroan secara tidak langsung. Nilai agregat jumlah sebanyak-banyaknya sebesar US$ 650 juta atau setara Rp9,55 triliun dengan perkiraan kurs Rp14.700 per dolar AS.

“Dijaminkan dengan jaminan berupa jaminan perusahaan dan atau jaminan dalam bentuk lainnya yang akan diberikan oleh perseroan dan atau anak perusahaan tertentu yang dimiliki sepenuhnya oleh perseroan,” ujar Manajemen INDY dikutip melalui keterbukaan informasi, Minggu (4/10/2020).

Sebelumnya, Manajemen INDY menjelaskan bahwa surat utang diharapkan akan dapat memperpanjang profil jatuh tempo. Selanjut-nya, dengan skema pembayaran surat utang pada akhir jatuh tempo atau bullet payment, perseroan dapat menjaga likuiditasnya.

“Perseroan berencana untuk menggunakan dana hasil transaksi di antaranya termasuk namun tidak terbatas untuk tujuan pengem-bangan usaha, pembiayaan diversifikasi usaha, pelunasan kewajiban perseroan, serta pembiayaan korporasi pada umumnya,” papar Manajemen INDY.

IMA-Daily Update Page 17

It is hoped that Bonds will be able to extend the maturity profile and with the bullet payment scheme, the Company can maintain its liquidity.

For the second agenda item, the company will request EGMS approval to make changes to several provisions of the company's articles of association to be adjusted to POJK No. 15/2020. The EGMS

will take place on 26 October 2020. Editor:

Annisa Sulistyo Rini

Surat Utang diharapkan akan dapat mem-perpanjang profil jatuh tempo dan dengan skema pembayaran Surat Utang pada akhir jatuh tempo (bullet payment), menjadikan Perseroan dapat menjaga likuiditasnya.

Untuk mata acara kedua, perseroan akan meminta persetujuan RUPSLB untuk melakukan perubahan beberapa ketentuan anggaran dasar perseroan untuk disesuai-kan dengan POJK No. 15/2020. RUPSLB akan berlangsung pada 26 Oktober 2020. Editor : Annisa Sulistyo Rini

Kobexindo Tractors (KOBX) boosts revenue from the non-

mining sector Reporter: Muhammad Julian | Editor:

Tendi Mahadi

HEAVY equipment distributor company, PT Kobexindo Tractors Tbk, spurs revenue in the non-mining sector. This effort was made to anticipate the sluggish demand for heavy equipment in the mining sector.

Kobexindo Tractors Director Martio explained that the sales trend of heavy equipment in the mining sector is showing a weakening trend. This was triggered by the sluggish coal mining industry which was recently exacerbated by the implementation of lockdown policies in several main coal export destination countries, such as China and India.

On the other hand, although it is still fairly limited in the midst of the corona pandemic (covid-19), the opportunity for heavy equipment demand such as forklifts and sweeper machines in the non-mining sector such as manufacturing and logistics is still quite open.

Kobexindo Tractors (KOBX) pacu pendapatan dari sektor non

pertambangan Reporter: Muhammad Julian | Editor:

Tendi Mahadi

PERUSAHAAN distributor alat berat, PT Kobexindo Tractors Tbk memacu penda-patan di sektor non pertambangan. Upaya ini dilakukan untuk mengantisipasi per-mintaan alat berat di sektor pertambangan yang lesu.

Direktur Kobexindo Tractors, Martio menjelaskan, tren penjualan alat berat di sektor pertambangan menunjukkan tren pelemahan. Hal ini dipicu oleh lesunya sektor industri pertambangan batu bara yang belakangan diperparah dengan adanya penerapan kebijakan lockdown di beberapa negara utama tujuan ekspor batu bara seperti China dan India.

Sebaliknya, meski masih terbilang terbatas di tengah pandemi corona (covid-19), peluang permintaan alat berat seperti misalnya forklift dan sweeper machine pada sektor non pertambangan seperti manu-faktur dan logistik masih cukup terbuka.

IMA-Daily Update Page 18

This is reflected in the sales and rental performance of heavy equipment through several subsidiaries, which are still showing positive growth. During the first semester of this year, for example, PT Kobexindo Equipment's revenue derived from the sales and rental of heavy equipment in the non-mining sector grew by 34 percent compared to the first half of last year.

"Since the beginning, we have developed a segment outside the mining segment to strengthen our portfolio and anticipate a weakening in the mining sector," said Martio when contacted by Kontan.co.id, Friday (2/10).

Revenue strengthening in the non-mining sector will be pursued in a number of ways, including preparing the sale of Foton Trucks through its subsidiary, PT Kobexindo Foton Indonesia. Just so you know, KOBX has become the sole/exclusive distributor for FOTON in Indonesia through the signing of the agreement in April 2019.

Revenue strengthening in the non-mining sector is not done through the sale of trucks and heavy equipment alone. KOBX will also continue to strengthen revenue from other business segments such as heavy equipment and building rental services, repair services, and spare parts sales.

"By providing heavy equipment rental services, we strive to be a one stop solution for heavy equipment consumers, where we provide rental rental options with guaranteed spare parts after-service services in our 12 branches in major cities in Indonesia," he said. Martio.

Martio did not mention further how big the projected contribution of revenue from the non-mining sector with this strengthening strategy. Even so, he said that revenue from the non-mining sector would not be able to cover revenue in the mining sector.

Hal ini tercermin dari kinerja penjualan dan penyewaan alat berat melalui beberapa entitas anak usaha yang masih menunjukkan pertumbuhan positif. Sepanjang semester pertama tahun ini misalnya, pendapatan PT Kobexindo Equipment yang didapat dari penjualan dan penyewaan alat berat sektor non pertambangan mengalami pertumbuhan sebesar 34% dibanding semester pertama tahun lalu.

“Sejak awal kami sudah mengembangkan segmen di luar segmen pertambangan untuk memperkuat portofolio dan mengantisipasi pelemahan di sektor tambang,” ujar Martio saat dihubungi Kontan.co.id, Jumat (2/10).

Penguatan pendapatan di sektor non tambang akan ditempuh melalui sejumlah cara, termasuk di antaranya dengan mem-persiapkan penjualan Truk Foton melalui entitas anak, PT Kobexindo Foton Indonesia. Asal tahu saja, KOBX telah menjadi distri-butor tunggal/eksklusif untuk FOTON di Indonesia melalui penandatanganan per-janjian pada April 2019 lalu.

Penguatan pendapatan di sektor non per-tambangan tidak melalui dilakukan melalui penjualan truk dan alat berat semata. KOBX juga akan terus memperkuat pendapatan dari segmen usaha lainnya seperti jasa penyewaan alat berat dan gedung, jasa perbaikan, dan penjualan suku cadang.

“Dengan menyediakan jasa sewa alat berat, kami berupaya untuk menjadi one stop solution bagi konsumen alat berat, di mana kami menyediakan opsi sewa sewa dengan layanan after service kesediaan suku cadang yang terjamin di 12 cabang kami di kota-kota besar di Indonesia,” ujar Martio.

Martio tidak menyebutkan lebih jauh seberapa besar proyeksi kontribusi pendapatan dari sektor non tambang dengan adanya strategi penguatan ini. Meski begitu, ia berujar bahwa pendapatan dari sektor non tambang belum akan mampu menutupi pendapatan di sektor pertambangan.

IMA-Daily Update Page 19

The strengthening of revenue in the non-

mining sector is only intended to minimize

the weakening effect of heavy equipment

sales in the mining sector. Moreover, sales

of heavy equipment in the mining sector

will still be the company's main focus.

In addition to efforts to strengthen revenue

from the non-mining sector, KOBX will also

continue to improve business efficiency.

However, KOBX emphasized that this

efficiency will not reduce the quality of

products and services provided by the

company.

Until the close of this year, KOBX projects

that it will record a decline in consolidated

income of around 30%-40% compared to

last year's realization.

As an illustration. based on the 2019

annual report, KOBX's net income was

recorded at US$ 71.46 million in 2019.

Thus, Kontan.co.id counts, assuming a

decrease of 30%-40%, then KOBX's net

income this year is estimated to be around

US$ 42.87 million - US$ 50.02 million.

As of June 30, 2020, KOBX has recorded a

net income of US$ 23.18 million, a decrease

of 39.03% compared to the first semester

of 2019 which reached US$ 38.02 million.

Along with the decrease in net income,

KOBX posted a loss for the period

attributable to the parent entity, aka a net

loss of US$ 4.04 million in the first

semester of 2020. Previously, KOBX was

still able to post a net profit of US$ 1.04

million in the first semester of 2019 ago.

Adapun penguatan pendapatan di sektor non pertambangan hanya bertujuan untuk meminimalisir efek penjualan alat berat di sektor pertambangan yang melemah. Terlebih, penjualan alat berat di sektor pertambangan masih akan menjadi fokus utama perusahaan.

Di samping upaya untuk memperkuat pendapatan dari sektor non tambang, KOBX juga akan terus meningkatkan efisiensi usaha. Namun demikian, KOBX menegaskan bahwa efisiensi tersebut tidak akan mengurangi kualitas produk dan jasa yang diberikan oleh perusahaan.

Sampai tutup tahun nanti, KOBX mem-proyeksi akan mencatatkan penurunan pendapatan konsolidasi sekitar 30%-40% dibanding realisasi tahun lalu.

Sebagai gambaran. berdasarkan laporan tahunan tahun 2019, pendapatan bersih KOBX tercatat sebesar US$ 71,46 juta di tahun 2019. Dus, hitungan Kontan.co.id, dengan asumsi penurunan 30%-40%, maka pendapatan bersih KOBX tahun ini diperkirakan berkisar US$ 42,87 juta - US$ 50,02 juta.

Sampai 30 Juni 2020 lalu, KOBX telah mencatatkan pendapatan bersih sebesar US% 23,18 juta, turun 39,03% dibanding pendapatan bersih semester I 2019 yang mencapai US$ 38,02 juta.

Seiring dengan penurunan pendapatan bersih, KOBX membukukan rugi periode berjalan yang dapat diatribusikan kepada entitas pemilik induk alias rugi bersih sebesar US$ 4,04 juta di semester I 2020. Sebelumnya, KOBX masih mampu men-cetak laba bersih sebesar US$ 1,04 juta pada semester I 2019 lalu.

IMA-Daily Update Page 20

PT. Vale Proves Mining Achievements By Receiving Two Awards at the 2020 Minerba

Award Arif Tella

PT VALE Indonesia Tbk (PT Vale) won two awards at the Award for Good Achievement for the Application of Mineral and Coal Mining Engineering Principles in 2020 (Minerba Award 2020) held by the Directorate General of Mineral and Coal, Ministry of Energy and Mineral Resources on September 29, 2020.

The awards are Aditama (Gold/First Rank) Mining Environmental Management for the Category of Contract of Work (KK) and Special Mining Business Permits (IUPK) and the Main Award (Silver/Second Rank) Mining Technical Management for the Category of Mineral Commodity Mining Group.

This predicate was achieved by PT Vale because it fulfilled five main criteria for assessment, namely in terms of mining environmental management, management of work safety aspects, technical standardization and mining management as well as conservation aspects.

President Director and CEO of PT Vale Nico Kanter said that this award was the result of the hard work of all elements at PT Vale and the company's consistency in implementing sustainable mining.

"This achievement is the result of joint efforts in the company that continually strive to innovate and make improvements in all lines. The award given by the government is certainly...

PT. Vale Buktikan Prestasi Pertambangan Dengan Raihan Dua Penghargaan di Minerba

Award 2020 Arif Tella

PT VALE Indonesia Tbk (PT Vale) meraih dua penghargaan di ajang Penghargaan Prestasi Penerapan Kaidah Teknik Pertam-bangan Mineral dan Batubara yang Baik Tahun 2020 (Minerba Award 2020) yang digelar Direktorat Jenderal Mineral dan Batubara, Kementerian Energi dan Sumber Daya Mineral pada 29 September 2020.

Penghargaan tersebut adalah Aditama (Gold/ Peringkat Pertama) Pengelolaan Lingkungan Pertambangan untuk Kategori Pemegang Kontrak Karya (KK) dan Izin Usaha Pertam-bangan Khusus (IUPK) serta Penghargaan Utama (Silver/Peringkat Kedua) Pengelolaan Teknis Pertambangan untuk Kategori Kelompok Pertambangan Komoditas Mineral.

Predikat tersebut diraih PT Vale karena memenuhi lima kriteria utama penilaian yakni baik dalam pengelolaan lingkungan pertambangan, pengelolaan aspek kese-lamatan kerja, standarisasi teknis dan mana-jemen pertambangan serta aspek konservasi.

Presiden Direktur dan CEO PT Vale Nico Kanter menyampaikan bahwa penghargaan ini merupakan hasil kerja keras seluruh elemen di PT Vale serta konsistensi per-usahaan mengimplementasikan pertam-bangan yang berkelanjutan (sustainable mining).

“Prestasi ini merupakan hasil dari upaya bersama di perusahaan yang terus-menerus berupaya berinovasi dan serta melakukan improvement di seluruh lini. Penghargaan yang diberikan pemerintah ini tentu...

IMA-Daily Update Page 21

The award given by the government is

certainly also very meaningful for the

Company because it is an appreciation of

the efforts to run good mining and run

mining operation principles that are

synergistic with the standards and

regulations of the Indonesian Govern-

ment," said Nico Kanter.

This virtual award is a series of

commemoration of Indonesia's 75th

Mining and Energy Day as well as

government appreciation and motivation

for mining companies in Indonesia to

implement good mining practices.

In his remarks, the Minister of Energy and

Mineral Resources, Arifin Tasrif, said that

this activity was to balance the dominant

public opinion stating that mining is the

main cause of natural and environmental

damage. "I hope this activity will balance

this opinion. I also hope that all mining

business entities and services can become

role models for the proper and correct

application of mineral and coal mining

principles," said Minister of Energy and

Mineral Resources Arifin Tasrif.

Meanwhile, the Director General of Mineral

and Coal at the Ministry of EMR, Ridwan

Djamaluddin, said in his remarks that the

event which is routinely held every year is

the culmination of performance appraisals

accompanied by the awarding of awards to

business entities and mining services that

are entitled to receive it.

Penghargaan yang diberikan pemerintah ini tentu juga sangat berarti bagi Perusahaan karena merupakan apresiasi terhadap upaya-upaya menjalankan pertambangan yang baik serta menjalan-kan kaidah-kaidah operasi pertambangan yang sinergis dengan standar dan regulasi Pemerintah Indonesia,” ungkap Nico Kanter.

Penghargaan yang digelar secara virtual ini merupakan rangkaian dari peringatan Hari Pertambangan dan Energi Indonesia ke-75 serta apresiasi pemerintah dan memberi motivasi terhadap perusahaan tambang di Indonesia untuk menerapkan good mining practice.

Pada sambutannya Menteri Energi dan Sumber Daya Mineral Arifin Tasrif menyampaikan bahwa kegiatan ini sebagai penyeimbang opini publik yang dominan yang menyebutkan bahwa pertambangan sebagai penyebab utama kerusakan alam dan lingkungan. “Saya berharap kegiatan ini sebagai penyeimbang adanya opini tersebut. Saya juga berharap seluruh badan usaha dan jasa pertambangan dapat menjadi role model penerapan kaidah penambangan mineral dan batu bara yang baik dan benar,” ungkap Menteri Energi dan Sumber Daya Mineral Arifin Tasrif.

Sedangkan Direktur Jendral Mineral dan Batubara Kementerian ESDM Ridwan Djamaluddin pada sambutannya mengata-kan acara yang rutin digelar setiap tahun ini merupakan puncak penilaian kinerja disertai penyerahan penghargaan kepada para badan usaha dan jasa pertambangan yang berhak mendapatkannya.

IMA-Daily Update Page 22

Prices skyrocketed, world gold reserves began to thin out Author: Edo Fernando, Editor: Faris

Primayudha

THE PRICE of gold shot up fast enough to

a record high until the price per ounce reached Rp 30 million. Apart from the fact that the demand in the market was quite high, the quite drastic increase in the price of gold could not be separated from the games of the traders.

Behind the skyrocketing price of gold over the last few months, raises a number of questions, mainly related to the remaining gold reserves remaining to date and also when estimates will run out.

The flexibility in the use of gold, which is not only as jewelry but also the safest investment asset, makes the need for gold seem endless. In fact, it tends to continue to increase, especially when economic conditions are not supportive. But in time, the gold reserves will indeed be completely depleted and there is nothing left to mine.

Researchers and observers agree that currently gold production is at its peak throughout the history of the commodity. This can be measured from the amount of production and the trend of world gold production which has begun to decline.

This can be seen in the 2019 report, which noted that world gold production decreased by 1 percent compared to 2018 production. This decline was the first since 2008.

Then how much gold reserves are left today?

Harga Meroket, Cadangan Emas Dunia Mulai Menipis

Penulis : Edo Fernando, Editor : Faris Primayudha

HARGA emas melesat cukup pesat ke rekor tertinggi hingga harga per ons-nya men-capai angka Rp30 jutaan. Selain memang karena permintaan di pasar yang cukup tinggi, namun kenaikan harga emas yang cukup drastis itu juga tidak lepas dari permainan para pedagang.

Di balik meroketnya harga emas selama beberapa bulan terakhir, memunculkan sejumlah pertanyaan, utamanya terkait sisa cadangan emas yang tersisa hingga saat ini dan juga kapan perkiraan akan habis.

Fleksibilitas kegunaan emas yang tak hanya sebagai perhiasan namun juga aset investasi paling aman, menjadikan kebutuhan emas seakan tidak ada habisnya. Malah cenderung terus meningkat, terlebih di kala kondisi ekonomi tidak mendukung. Namun pada waktunya nanti, cadangan emas memang akan benar-benar habis dan tidak ada lagi untuk bisa ditambang.

Para peneliti dan pengamat sepakat jika saat ini produksi emas tengah mencapai puncak-nya sepanjang sejarah komoditas itu ada. Hal ini dapat diukur dari jumlah produksi, dan tren produksi emas dunia yang mulai mengalami penurunan.

Hal ini bisa dilihat pada laporan tahun 2019, yang mencatat produksi emas dunia meng-alami penurunan sebesar 1 persen diban-dingkan produksi tahun 2018. Penurunan tersebut adalah yang pertama sejak tahun 2008.

Lalu berapa jumlah cadangan emas yang tersisa saat ini?

IMA-Daily Update Page 23

Researchers and observers say, one way to

determine the size of the world's

remaining gold reserves is to look at the

areas with the world's largest gold sources.

It is known that 30 percent of the world's

gold is contributed by mines in the

Witwatersrand Basin in South Africa.

Several other large gold mines are known

to be scattered in several areas such as the

Mponeng underground mine in South

Africa, the Boddington mine and Super Pit

in Australia, as well as mines in Nevada,

United States.

Indonesia is also one of the world's largest

gold producers with the Grasberg mine

which is managed by PT Freeport

Indonesia and will be transferred to PT

Aneka Tambang. Indonesia itself is listed

as the seventh largest gold producer in the

world.

Indeed, a number of new gold mines have

sprung up but the reserves are

insignificant, so that mines that actually

contain large amounts of gold reserves are

still very rare. As a result, the world's

demand for gold still depends on old

mines.

However, the researchers said that even

though the world's gold reserves have run

out and there is no more gold to mine, gold

can still be recycled and will not be lost.

Gold can be found in products circulating

in the community, such as components on

cell phones. Now steps to carry out

recycling of electronic components are

intensively carried out.

Peneliti dan pengamat mengatakan, salah satu cara untuk mengetahui besaran sisa cadangan emas dunia adalah dengan melihat daerah dengan sumber emas terbesar dunia.

Diketahui 30 persen emas dunia di-sumbang oleh tambang di Witwatersrand Basin yang ada di Afrika Selatan. Beberapa tambang emas besar lainnya diketahui

tersebar di beberapa wilayah seperti tambang bawah tanah Mponeng di Afrika Selatan, tambang Boddington dan Super Pit di Australia, serta tambang di Nevada, Amerika Serikat.

Indonesia juga termasuk sebagai produsen

emas terbesar dunia dengan tambang Grasberg yang dikelola oleh PT Freeport Indonesia dan akan dialihkan ke PT Aneka Tambang. Indonesia sendiri tercatat men-

duduki peringkat ketujuh sebagai peng-hasil emas terbesar dunia.

Memang sejumlah tambang emas baru bermunculan namun jumlah cadangannya tidak seberapa, sehingga tambang yang benar-benar menyimpang cadangan emas dengan jumlah besar masih sangat langka. Akibatnya, kebutuhan emas dunia masih tergantung pada tambang-tambang yang sudah berusia tua.

Namun para peneliti menyampaikan,

meski cadangan emas dunia telah habis dan tidak ada lagi emas untuk ditambang, emas masih bisa didaur ulang dan tidak akan hilang. Emas bisa ditemukan dalam produk yang beredar di masyarakat, seperti komponen pada ponsel. Kini langkah untuk melakukan daur ulang pada komponen elektronik gencar dilakukan.

IMA-Daily Update Page 24

Coal Prices Weak at the End of Trading, Rally Ends? Tirta Citradi, CNBC Indonesia

LAST week, Newcastle thermal coal prices rose 3.5%. If on the last day of trading the price does not fall (at least flat), then the price of the rock will increase by 8.5%.

On Friday (2/10/2020), the coal price for actively traded contracts fell 2.33% to US$ 60.85/ton. The fall in contract coal prices was triggered by profit taking.

Understandably, coal prices have rallied unstoppable since entering the second week of September. In the period 8 September - 1 October, the increase in coal prices was recorded at 24.8%.

The increase in coal prices is inseparable from the tight supply of coal from China which has caused domestic commodity prices to soar. The price of Chinese coal for Qinhuangdao's standard calorie of 5,500 Kcal/Kg is already above the informal level set by the government (green zone).

The green zone for domestic coal prices set by China is in the range of RMB 500 - RMB 570 per tonne. However, in September the price had already broken above RMB 590/ton or to be precise at RMB 599/ton which was equivalent to US$ 87.91/ton.

Green zone itself is a price range that is still safe for coal miners and utility companies. Coal prices that are too high and above this range will erode Chinese companies' margins.

Considering that the price of seaborne coal is still relatively cheap, this has made the company switch to importing coal from outside. This is what contributed...

Harga Batu Bara Lemes di Akhir Perdagangan, Reli Berakhir?

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal Newcastle pekan

lalu terangkat 3,5%. Apabila di hari terakhir perdagangan harganya tidak anjlok (setidak-nya flat), maka harga batu legam tersebut naik 8,5%.

Pada Jumat (2/10/2020), harga batu bara untuk kontrak yang aktif ditransaksikan melemah 2,33% ke US$ 60,85/ton. Turunnya harga batu bara kontrak ini dipicu oleh adanya aksi ambil untung.

Maklum, harga batu bara reli tak terbendung sejak memasuki minggu kedua September. Pada periode 8 September - 1 Oktober, kenaik-an harga batu bara tercatat mencapai 24,8%.

Kenaikan harga batu bara tersebut tak terlepas dari ketatnya pasokan batu bara China yang membuat harga komoditas domestiknya melambung tinggi. Harga batu bara China untuk patokan Qinhuangdao berkalori 5.500 Kcal/Kg sudah berada di atas level informal yang ditetapkan pemerintah (green zone).

Zona hijau harga batu bara domestik yang ditetapkan China berada di rentang RMB 500 - RMB 570 per ton. Namun di bulan September harganya sudah tembus di atas RMB 590/ton atau tepatnya di RMB 599/ton setara dengan US$ 87,91/ton.

Green zone sendiri merupakan rentang harga yang masih aman untuk penambang batu bara maupun perusahaan utilitas. Harga batu bara yang terlalu tinggi dan di atas rentang tersebut akan membuat margin perusahaan setrum China tergerus.

Mengingat harga batu bara lintas laut masih tergolong murah, maka hal ini membuat perusahaan beralih mengimpor batu bara dari luar. Inilah yang ikut mendongkrak...

IMA-Daily Update Page 25

This is what contributed to the increase in coal prices in September.

The increase in the price of Newcastle thermal coal also raised the price of other coal, including the price of acan coal (HBA) RI. The Indonesian HBA in October rose 3.2% to US$ 51 per ton from the HBA in September 2020 which was US$ 49.42 per ton. The HBA itself is obtained from the average index of the Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platts 5900 in the previous month.

According to the Head of the Communi-cation, Public Information Services and Cooperation Bureau (KLIK) of the Ministry of EMR, Agung Pribadi, the increase in the HBA this October was triggered by positive signals from the emerging Chinese and Japanese industries.

"Positive signals from the industry that are starting to rise in China and Japan have raised the HBA in October 2020. The demand for coal from China is increasing because China's domestic coal prices are higher than imported coal prices," Agung said in an official statement from the Ministry on Thursday (01/10/2020).

However, because coal prices have shot up significantly, there is a possibility that this week's movement will tend to be corrected. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Inilah yang ikut mendongkrak kenaikan harga batu bara di bulan September.

Naiknya harga batu bara termal Newcastle juga turut mengerek harga batu bara lain, tak terkecuali harga batu bara acan (HBA) RI. HBA RI bulan Oktober naik 3,2% menjadi US$ 51 per ton dari HBA pada September 2020 yang sebesar US$ 49,42 per ton. HBA sendiri diperoleh dari rata-rata indeks Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), dan Platts 5900 pada bulan sebelumnya.

Menurut Kepala Biro Komunikasi, Layanan Informasi Publik dan Kerja Sama (KLIK) Kementerian ESDM Agung Pribadi kenaik-an HBA Oktober ini dipicu oleh sinyal positif dari industri China maupun Jepang yang mulai bangkit.

"Sinyalemen positif industri yang mulai bangkit di Tiongkok dan Jepang mengerek kenaikan HBA Oktober 2020. Permintaan batubara dari Tiongkok meningkat karena harga batu bara domestik Tiongkok lebih tinggi daripada harga batubara impor," ujar Agung dalam keterangan resmi Kementerian pada Kamis (01/10/2020).

Namun karena harga batu bara sudah melesat sangat signifikan, ada kemung-kinan geraknya pekan ini akan cenderung terkoreksi. TIM RISET CNBC INDONESIA (twg/ twg)

Indonesia says battery-grade nickel project drops deep-sea waste plan

By Bernadette Christina Munthe and Fransiska Nangoy

AN INDONESIAN nickel smelting project being built by China's Tsingshan Group and partner companies to produce battery-grade chemicals has withdrawn a request to dispose of waste in the ocean, a government official said on Friday.

IMA-Daily Update Page 26

PT Hua Pioneer Indonesia, the company that requested the deep-sea tailing approval on behalf of the project had cancelled its request, Nani Hendiarti, an official at the Coordinating Ministry for Maritime Affairs and Investment, told Reuters. "Their main consideration was the complexity of the impact of sea tailing," said Nani, who is deputy of Environment and Forestry Coordination at the ministry.

"They are now seeking other technological options." A representative at PT Hua Pioneer Indonesia did not immediately respond to a request for comment. Officials at the industrial park in Morawali on Sulawesi island where the project is being built declined to comment.

Proponents say deep sea tailings placement, which pipes unwanted pulverised rock into the sea, is cheaper and less harmful, especially on tropical islands where earthquakes or heavy rain limit storage on land, near deep sea trenches, but critics say the impact is poorly understood.

A senior government official said in May that authorities were considering two companies' requests to dispose of mining waste into the ocean, one for Morowali and the other in Obi island. Tapping Indonesia's rich supplies of nickel ore, China's Tsingshan Group, GEM Co Ltd and partners are building a high-pressure acid leaching plant to extract chemicals to be used in batteries for electric vehicles (EVs). Indonesia was a major nickel ore exporter until the government stopped unprocessed nickel exports in January to support domestic smelters.

The government is keen to produce stainless steel and battery-grade chemicals from nickel laterite, and eventually manufacture batteries and EVs. While EVs are expected to help reduce global carbon emission, environmentalists are concerned that production of EV parts may damage the environment. (Editing by Ed Davies)

Iron ore exports from Brazil hit highest level since 2015 MINING.COM Staff Writer

BRAZILIAN iron ore exports increased 18.5% in September compared to the same period last year, to 37.86 million tonnes, after Vale increased the pace of production.

The volume shipped last month is the biggest since December 2015, when Brazil exported a monthly record of 39.5 million tonnes, according to the Ministry of Industry, Foreign Trade and Services.

Compared with August, there was a 21% increase in Brazilian iron ore shipments in September.

Vale resumed full operations at its Viga plant on Thursday, after a judge lifted an order that had suspended operations there, the mining firm said in a securities filing.

Operations at the iron ore concentration plant had been suspended for six days, the company said, as it rectified alleged issues pertaining to its operating permit.

IMA-Daily Update Page 27

According to the miner, the halt resulted in 11,000 tonnes per day of iron ore fine production off the market.

Brazil’s iron ore exports – which represent 59% of the country’s mineral production – totaled $5 billion in Q2, 6% higher than Q1 2020, but 5% lower than in Q2 2019. The country exported 76 million tonnes, 8% above the total registered in Q1 2020, but 3% lower than Q2 2019.

Industry group IBRAM projects that the country will export 310 million tonnes in 2020, lower than the 340 million tonnes exported in 2019.

Newcrest to fast-track Havieron development Vanessa Zhou

NEWCREST Mining intends to start the development of a decline at the Havieron project in Western Australia by early next year.

The company expects commercial production to be achieved within two to three years from the commencement of this decline.

Newcrest states it is aiming to accelerate its exploration and development timetable at Havieron following the receipt of its mining lease.

Studies are under way to investigate selective and bulk underground mining options for Havieron.

The project is part of a farm-in agreement between Newcrest (40 per cent) and Greatland Gold (60 per cent), where the former can earn up to a 70 per cent interest by spending $US65 million ($90.5 million) and completing exploration and development milestones across six years.

As an operator, Newcrest will continue its drilling campaign at Havieron to deliver an initial resource estimate in the December quarter.

Aside from the Havieron project, Newcrest has two drilling programs under way at the Red Chris mine in Canada, the first of which is designed to support future studies for underground block cave mining.

“Newcrest has a history of delivering value through the application of technology and innovation,” Newcrest managing director and chief executive Sandeep Biswas said.

“Our current leading position within the gold industry in block cave mining is a direct outcome of this.

“As the world’s remaining ore deposits become deeper and lower grade, block cave mining with its high productivity and low operating costs has become the underground mining method of choice when the orebody warrants it.”

IMA-Daily Update Page 28

Newcrest holds a positive outlook on the gold prices, guiding the company to increase its total dividends to shareholders to $US25 cents during the 2020 financial year.

Chile's Codelco copper production flat in August, key mines mixed Reuters

CHILEAN state copper giant Codelco saw production of the red metal hold steady in August, with other major mines in the country mixed, government figures released on Friday showed.

The national copper commission Cochilco said that output at Codelco, the world's largest copper miner, inched up 0.1% year-on-year to 154,800 tonnes for the month. Escondida - the largest copper deposit in the world controlled by BHP - fell 11% year-on-year to 92,200 tons.

It was up 2.8% for the first eight months of the year. Collahuasi - a partnership between Glencore and Anglo American with Japanese firms - posted a 19% year-on-year increase in production to 60,000 tons. As of August, it had accumulated a rise of 25%.

The country's total production fell around 6.2% year-on-year in August to 481,700 tons, a little deeper than the national statistics agency had given previously. The country saw a 0.4% rise in the Jan-Aug period to 3.78 million tons.

(Reporting by Fabian Cambero; Writing by Adam Jourdan)

UK’s first new deep coal mine in 30 years approved Cecilia Jamasmie

PLANS to build the U.K.’s first new deep coal mine in three decades were approved on Friday, in a move that threatens to undermine the government’s pledge to net zero greenhouse gas emissions by mid-century.

West Cumbria Mining’s Woodhouse Colliery project, in north-west England, has faced steep opposition from environment groups urging the government to intervene and block it. They claim the new coal mine would emit 8 million tonnes of carbon annually.

The planned mine is expected to produce as much as 3.1 million tonnes of metallurgical coal a year, mainly from under the seabed. Processed coal would then be transferred by underground conveyor to trains using a new loading facility and sidings.

Woodhouse Colliery is scheduled to begin production in the second half of 2021, creating 500 jobs. It had originally been slated to run for 70 years, but West Cumbria Mining had to resubmit plans following a judicial review last year.

IMA-Daily Update Page 29

Under the approved plans, it will close in 2049, one year before the country must have net zero emissions.

“Net-zero” goal questioned

Most in the UK are skeptical about achieving the net zero target, according to a survey by the centre-right think tank Bright Blue published Friday.

The report found that 58% of the public believe that it is unlikely that the target will be achieved even by 2050.

The UK is set to host the COP26 round of UN global climate talks in Glasgow, Scotland, in November 2021. The event is considered the most important climate negotiations since the Paris agreement in 2015.

England’s last operating deep coal mine, Kellingley, closed in 2015 and the country’s last coal mine stopped operating this year.

Why China Can’t Quit Its Coal Addiction By Haley Zaremba

AT THE moment, the energy news out of China is a deluge of reports and think pieces about

the government's recently unveiled an extremely ambitious plan to become carbon neutral by 2060 - very big news from the nation that is responsible for a quarter of the world’s total greenhouse gas emissions.

Beijing’s lofty rhetoric is backed up by the nation’s assertive investment and development of large-scale solar energy projects and what will soon be the world’s largest nuclear fleet. But at the same time that China is talking about getting its carbon footprint down to nothing, the nation is also returning to coal at a breakneck pace. Problematically for the country’s climate goals, its coal-fired power fleet is still quite young, and China is still adding capacity and has hundreds of more coal-fired plants that are already in the planning phase.

In fact, China has already added 11.4 gigawatts of coal power capacity just in the first half of 2020, which accounts for more than half of the coal capacity added in the entire world in the same six months. Despite the climate-friendly rhetoric, “in the short term, China is still moving full steam ahead on coal,” reports Quartz. “its post-COVID stimulus spending on fossil fuels is three times larger than its spending on clean energy, including nearly $25 billion on coal power plants and even more on mining and processing.”

So what has prompted this return to coal and the overall energy ambivalence exhibited by China today? According to a report this week from Reuter’s “The Wider Image,” the nation’s pivot back to coal is fuelled by “energy security and economic fears.” China is plagued by diverging interests, and while Beijing is pushing for cleaner and greener energy, there is still a lot of support for fossil fuels.

IMA-Daily Update Page 30

"New coal plants are a way for provinces to support other industries like coal mining and heavy industry," Christine Shearer, coal program director at GEM, told Reuters. "You have a lot of entrenched coal interests in China and the central government has not reined them in, despite Beijing's strong support for clean energy."

Ultimately, in China, the economy remains the top priority. Coal is an established and trusted industry in China, and there is a large degree of hesitance to rock the boat. "Beijing is reluctant to do anything that might slow economic growth, which is why you see the central government slapping the provinces on the wrist for all the newly permitted plants ... but not actually doing anything about them," Shearer went on to say.

These effects are only compounded by escalating geopolitical tensions in the region, which also serve to push people back toward the kind of energy industry they already know so well. “Amid growing geopolitical tensions, power projects fueled by domestic coal could also become more attractive because the government is keen to improve self-sufficiency and ease its dependence on foreign energy supplies,” writes Reuters. So far, China’s appetite for energy has uniformly outstripped its production capacity. The world’s second-largest economy is already the world’s single-biggest oil importer and is a net importer of coal as well, despite its sizable domestic coal reserves.

Adding to the nation’s anxiety about energy security and self-sufficiency is the history of “crippling power shortages” that rocked the country in 2011. Building on this experience, it is also a priority for local authorities to have a significant reserve of fossil fuels in case the rapidly changing energy landscape hits any snags.

If China has any hope of meeting its climate goals, or of reaching their expected peak emissions target in 2030, it will have to crack down on coal, regardless of the potential drawbacks. To do so, there will have to be a sea change in the nation’s attitude toward coal, and a more concerted effort to leave it behind and to enforce the policy that’s already in place to do so. Ultimately, the world has no chance of hitting global greenhouse gas emissions targets and avoiding catastrophic climate change unless China can quit coal, and quit it now. By Haley Zaremba for Oilprice.com